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Unleash the power of SAP CRM billing for high volume, delivery
based billing - Customer experience of a Fortune 100 Company
Presented by:
Al Klein
Caterpillar Inc
Ven Gutta
Deloitte Consulting
Alekkatt Madhu
Deloitte Consulting
[ Agenda
Speaker Introduction
About Caterpillar
Overview of Caterpillar Service Parts Management (CAT-SPM) Project
Overview of CRM scope for CAT SPM
Unique features of CRM Billing functionality leveraged for CAT SPM solution
System Landscape - Architectural view
CRM Billing - Integration with EWM, MM, FI and GTS
CRM Master data - Key considerations for Billing
Challenges of CRM billing for delivery based process scenario
Master data - Best practice
Lessons learned
Q&A
Real Experience. Real Advantage.
2
[ Speaker Introduction
Al Klein
Solution Architect, Caterpillar, Inc.
Contact e mail: Klein_Alan_W@cat.com
Ven Gutta
Solution Architect, Deloitte Consulting
Contact e mail: vgutta@deloitte.com
Alekkatt Madhu
Project Consulting Lead, Deloitte Consulting
Contact e mail: amadhusoodanan@deloitte.com
Real Experience. Real Advantage.
3
[
About CAT – SPM and our Journey
Real Experience. Real Advantage.
4
[ About Caterpillar,Inc
Caterpillar (CAT) : $42.6 billion in revenue, the world’s largest maker of
construction and mining equipment, diesel and natural gas engines, and
industrial gas turbines in the world.
Who are CAT’s customers?
Owners and operators of over 2 million machines and engines, operating on
seven continents, in nearly 200 countries, 24 hours a day, 7 days a week, every
day of the year
Interesting Facts
 Each CAT employee generates ~$341k in sales/revenue per year
 Trained 50,000 CPS Yellow Belts, 3,000 CPS Green Belts, and
300 CPS Black Belts
Caterpillar Logistics
Services 30 % of
total revenue
 More than 4,300 employees have one or more patents
 CAT’s 797D trucks weigh more than a fueled and loaded Boeing 747
 Since 2000, CAT reduced lost-time injuries by 84 percent
 Cat ranked 70th on Interbrand’s Best Global Brands list (2010)
Real Experience. Real Advantage.
5
[ CAT Logistics, a Division of Caterpillar
Caterpillar Logistics: $10 billion in Revenue… Responsible for
Service Parts, Manufacturing Logistics and Transportation.
Americas
EAME (Europe, Africa, Middle East )
Asia-Pacific
61 Locations
44 Locations




14 Locations
6 Continents, 23 Countries, 20 Languages
119 Facilities/Offices, 11,900+ Employees
29M+ Sq. Ft., 160M+ Orders/Yr, 21B lbs. Of Freight/Yr.
$2.4B Transportation Costs/Yr., 20M SKUs Serviced/Yr
Real Experience. Real Advantage.
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[ Service Parts Management Initiative: CAT, SAP and Deloitte
The Journey began in 2002…
Cat Logistics Contributions
 Proven best-in-class
process
 Business process experts
and subject matter experts
 Historical best-in-class IT
development
 IT program and project
management expertise
SAP Contributions
 Global development Scale
 Modular development of
software technology
 Excellence in technology
and innovation
 Solid, scalable, secure,
open business platform
Deloitte Contributions
 Leader in Service Parts
 Deep Industry Knowledge
 Global reach
 Leading SAP practice
 Value-based approach
 Unique multi-disciplinary
approach
State-of-the-Art Service Parts Management (SPM) Solution for:
 Service Parts Planning (SPP)
 Extended Warehouse Management (EWM)
 Customer Relationship Management (CRM)
Real Experience. Real Advantage.
 Best-In-Class Logistics Performance
 Increased Customer Satisfaction
 Dramatic Cost Reduction
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[ Service Parts Management (SPM) Project at CAT Logistics
SAP SPM Solution
Delivered and
Implementation
Started
SPM – Global DFIP
SPP go-live:
2nd EWM Facility
Go-live
SPM - 1st
CRM/FI/GTS
integrated with
EWM Go-live
CAT/Ford form
Alliance for SPM
Solution
2013-2015
2011
2002
2000
-Begin SPM Solution
Build with SAP
-Deloitte got engaged
as Implementation
Partner
Real Experience. Real Advantage.
2005
2006
2007
SPM – 1st EWM
Facility Go-live
2012
2009
SPM – SPP DRP and
EWM Go-live
SPM –
Asia/Pacific,
Europe,
Americas
+Ord Mgmt.,
gATP,
Deployment
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[
Overview of CRM Scope for SPM Solution Go-live
3rd Quarter 2012
Business Model: Distribution Center
 Inventory allocation/
Procurement from CAT
distribution centers worldwide
Order to Billing scenario covering
 Serving customers of Middle
East and Africa
 Intercompany sale/transfers
to other CAT locations
CRM: Scope/Functionality
 Sales Orders
Dubai
UAE
 Pricing
 Claims & Returns
 Tax using TTE
 Customer Claims & Returns
 Billing
 Customs & Compliance Export/Import
 GTS
 Financials and Tax
Real Experience. Real Advantage.
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[
Deep Dive to CAT-CRM Billing
Real Experience. Real Advantage.
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[ Unique Features of CRM Billing Functionality Leveraged for
CAT SPM Solution
Delivery based Billing after PGI
 EWM/PGI triggers billing due list - via ECC Delivery
TTE for Indirect
Tax/VAT
Delivery based Billing before PGI
 Billing before PGI (Invoice Before Goods Issue)
Order related Billing
 Miscellaneous billing, Claims & Returns
Stock Transport orders based Billing
 Inter and Intra company scenario, Plants Abroad
Supplementary Invoicing
 Supplementary invoice to End customer, Dealer gets
main invoice, separate Entitlement Invoice
Direct Billing
 Immediate Billing based on Customer
Real Experience. Real Advantage.
IPC for Pricing with
interface from
Legacy
Dealer Portal
Web Ui
Billing in CRM- no
ECC-SD replication
GTS- Customs
/Compliance
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[ CAT SPM Landscape-Architectural View
Legacy System
CRM 7.0
Master Data
GTS
Pricing
Sales
Billing
Service
Marketing
Interaction
Center
e-commerce
Legacy System
Contracts
SCM
Extended Warehouse Mgmt Engine
Packaging Engineering
Legacy System
Purchasing
Service Parts Planning Engine
APO
Legacy System
BI
Master Data
gATP
Supplier Network Collaboration
Transportation
ECC-DIMP
Legacy System
EDI Converter for
Industry/customer
specific formats
Delivery
IDOC
Real Experience. Real Advantage.
PUR/IV
TPDS
Rebate
CIF
Master Data
Inventory
Management
Connectivity
FIN
XML
QM
EH&S
BDOC
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[ CRM Billing-Integration with EWM, MM, FI and GTS
Process Integration Area
Modules/Functions Impacted
1. Stock Transport Order(STO)
• Transfer Price in MM
• Billing done in CRM
EWM > MM > CRM > GTS > FI
2. EWM delivery triggering CRM billing
• EWM delivery trigger CRM billing
prior to Post Goods Issue (PGI)
EWM > MM > CRM > GTS > FI
3. ECC - PGI triggering CRM billing due list
EWM > MM > CRM > GTS >FI
4. EWM data flow to CRM, CRM to GTS
EWM > MM > CRM > GTS >FI
5. CRM Billing to GTS Customs Declaration,
and Intrastat reporting
CRM > GTS
6. Order related Billing
CRM > FI
7. CRM Billing to ECC Tax postings and
Tax reporting
CRM> FI
8. CRM Billing - BW reporting
CRM > BW
Real Experience. Real Advantage.
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[ CRM Billing-Integration with EWM, MM, FI and GTS
Sell From Stock - Invoice From Goods Issue
Service Parts Management (SPM)
CRM
ECC-Financials
ECC-LE
SPP
EWM
GTS
Sourcing and
ATP check
Sales order
Credit check
Sales order
requirement
Update open order
value
Compliance
Management
Trigger Execution
GTS- Compliance
Delivery
Update delivery
requirements
EWM Request
Goods issue
Update order status
Trigger Update
Update order
status-quantities
Update inventory
Update delivery
requirements
Invoice due list
Invoice
Update order status
Update inventory
valuation
FI postings
Customs Management
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Real Experience. Real Advantage.
[ CRM Master Data - Key Considerations for Billing Functionality
Business Partner Master Data
 Direct Invoice Indicator
 IBGI Relevance Indicator
 Invoice Split By Country of Origin
 Entitlement Invoice Indicator
 Tax Classification
 Dealer and End-Customer relationships
 Excluded Partner Functions
 Product Master Data
 HTC Code/Commodity Code
 Reman Part Indicator
 Dangerous Goods Indicator
 Country Specific Data for Invoice Split Criteria
 Tax Classification
Real Experience. Real Advantage.
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[
Share the Experience
Real Experience. Real Advantage.
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[ Challenges of CRM Billing for Delivery Based Process
Process Complexity
Solution Approach
 Billing consolidation for multiple deliveries
 Billing split based on multiple criteria
Standard/Enhancement
 EWM and GTS data flow to/from CRM Billing
 Supplementary invoice with main invoice as FI
relevant subject to revenue, Supplementary
invoice for collection/no revenue
 STO based Intercompany billing
Standard
 Multilevel Billing - involving multiple legal entities of
intercompany
 Indirect Tax/VAT using CRM-TTE
 Billing number range with additional criteria
 Billing with average 2000 lines/unique parts ECC/FI limitation of 999 line postings
Custom Solution
 Revenue Recognition based on Title Transfer
Real Experience. Real Advantage.
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[ Challenges of CRM Billing for Delivery Based Process
Technology Related Complexity
Comments
 CRM Billing for Delivery Based Scenario
Limited expertise in market place
 Inter Company/Stock Transport Order
Based Billing
Subject to OSS notes to fix errors
 New Features such as Supplementary
Invoicing, Billing Consolidation and Billing
Split, Multilevel Billing, External Billing
Complex Solution
 TTE for Indirect Tax
Highly complex as compared to
ECC-SD, Requires OSS notes
 Plants Abroad
Complex, OSS notes
 Integration with Finance, GTS, and EWM
Highly complex
 Pricing Engine - IPC
Complex
Real Experience. Real Advantage.
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[ CRM Master Data Best Practices
Best Practice
Comments
1. Business Partners
 CRM as Master system and distribution to ECC
and SCM components using Middleware and
IDOC technologies
2. Organizational Data in CRM
 Sales Org, Plant, MRP Area downloaded from
ECC Enterprise Structure
3. Material Master
 From ECC to CRM
 From CRM to GTS
 Local data in CRM only
4. GTS Roles
 Maintain roles in GTS for FTO, Legal Unit,
Customs Office, Administrative Unit, data
provider and others
5. Ensure Configuration is in
Synch
 Between CRM and other components such as
ECC and SCM
Real Experience. Real Advantage.
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Lessons Learned
1. Global Template Benefitted
 Global Template for common processes
 Leverage Template approach for repeatable roll outs
 Incremental efforts primarily for localization
2. Custom solutions increased risk
 Custom solutions and deviation from standards cause
a lot of pain during realization and Testing.
3. New functions Integration Effort
 Do not underestimate efforts and complexity related to
new product/functionality such as
CRM/GTS/EWM/ECC integration
4. Middleware Efforts
 Middleware plays a very important role for
CRM/GTS/EWM/ECC integration
5. Master Data Distribution
 Distribution of master data across system components
can be challenging-Pay close attention and stick to
standards as much possible
6. Advance Prep &
Prototype
 Identify system gaps and limitations, strategize the
solution approach way ahead of system build.
 Examples include 3rd part software such as Vertex-VAT
integration not supported, system limitation of
maximum 999 lines FI postings

7. Enhancement Packs
Real Experience. Real Advantage.
Keep abreast of Enhancement Packs to see what
additional functionality is being provided before
embarking on your own enhancement
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 Thank you for participating.
Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the
Year-Round Community page at www.asug.com/yrc
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Real Experience. Real Advantage.
SESSION CODE: 0110
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