Orange County Convention Center
Orlando, Florida | June 3-5, 2014
How NIBCO leveraged a template-based approach
to deploy SAP TM 9.0 as a ramp-up customer in 19
weeks
Steve Miller, NIBCO
Bjorn Bernard, Novigo
Agenda
 Part 1:
 Introduction of Novigo’s ‘Instant TM’
 How customers can benefit from this accelerated
implementation methodology
 Part 2:
 How NIBCO leveraged a template-based approach to
deploy SAP TM 9.0 as a ramp-up customer in 19 weeks
Agenda
 Part 1:
 Introduction of Novigo’s ‘Instant TM’
 How customers can benefit from this accelerated
implementation methodology
 Part 2:
 How NIBCO leveraged a template-based approach to
deploy SAP TM 9.0 as a ramp-up customer in 19 weeks
Novigo Company Overview
 Novigo is formerly known as GOPA IT Consultants
 Focused on SAP SCM and SAP TM since 2008. SAP
TM is core focus area
 Evolved over time from an IT Systems Integrator to
a SAP Business Transformation Consultancy
 Operating in the U.S., Germany, Spain and India
What is ‘Instant TM’?
 Instant TM is a pre-configured, flexible SAP Transportation Management
Template Solution enabling significant project acceleration while
reducing cost and risk
 Instant TM can be used for end-2-end project implementations and/or
Proof-of-Concepts/Evaluations
 It consists of
 Preconfigured SAP TM 8.0 / 8.1 / 9.0 / 9.1 System Template Scenarios
 Project Accelerators (Documentation, Project Templates SAP TM Training Material)
 Implementation Methodology = ASAP with Novigo Model Based Design
 Iterative Approach leveraging TM System Prototyping for significant Acceleration
Instant TM support many use cases
High Tech
Consumer/
Food
Instant TM template
End-to-end System
Landscape
Pre-configured
Transport Scenarios
Use Cases
Accelerated
Implementation
POC or
Feasibility Study
Chemical
Oil & Gas,
Energy
Logistics
Industry
Others
Pre-configured SAP
TM standard
features
Third-Party
Solution Integration
System Demo
Innovation
Project Deliverables
& Accelerators
Model-Based
Design
Methodology
Third-Party
Integration
Training
Specific Content of the SAP TM Template (Selection)
 A lot of pre-configured content has been accumulated in the template
over time
Transport Scenarios
Special Functions
Industry flavors
Outbound LTL/TL
Change Controller rule sets
Consumer Packaging
Multi-Stop and Rush Orders
BRF+ carrier rotations
Food Distribution
Domestic and Int. Inbound
Batch characteristics integration
Steel Manufacturing
Pool and Hub Distribution
Geocoding and SMC3 integration
International Forwarding
International Export
Cost Savings Visibility
Discrete Manufacturing
Stock-Transfer Orders
Mass Uploads of orders
Chemicals
LSP scenarios
Maps and Visual Business
Consumer Electronics
Parcel Shipping
Enhanced Unit of Measure handling
Rail Shipping
Pre-Paid versus Collect
UI enhancements
Wholesale Distribution
Backhaul Processing
Private Fleet handling
Retail
Proof-of-Concepts (POC) based on Instant TM
Approach
POC provides low risk opportunity:

Instant TM landscape as basis

Novigo hosts the system, remote
access possible

Dedicated consultants support

4-12 weeks depending on scope

High flexibility to structure the POC in
scope, team & cost

Benefits

Customers benefit in various ways

Test Driving minimizes investment risk

Knowledge Transfer effect

Blueprint Accelerator reduces time and
effort

Identify Gaps early and effectively
‘…can go into project with “eyes wide open”
regarding scope, implementation cost, change
management opportunities, impacts to
organization, as well as benefits coming out of
the project’
Source: Actual Instant TM customer after an 8
week POC on received benefits
What does it take?

‘Skin in the game’

Executive buy-in to enter a ‘learning
mode’

A fixed budget

Attention by a limited amount of
resources (2-3 FTE, stakeholders, some
part-time)

A willingness to see the bigger picture
Model-Based Design and Blueprint

How model-based design applies a hands-on approach to classic blueprint
activities that are typically paper-based
Release
Model
Configuration
TM Template
System
(TM, ECC, PI)
Clone
TM Solution
System
Model
Iterations
TM Development
Migration
& Production
System
Template-Based Implementation

How does a template-based implementation work?
 Starting in a pre-configured and hosted SAP TM landscape, the Blueprint
activity is highly prototypical versus theoretical
 Users and stakeholders will be able to visualize the final result of the
implementation after only a few weeks

Benefits of this approach
 Early User Acceptance
 Don’t wait for the testing phase to show the systems to the end users
 Avoid “Scope Creep”
 The capabilities of the system become obvious much earlier in the
project
 Boost confidence of the project team
 Talk more confidently about TM to your business counterparts
 More timely delivery of project goals
 Early user acceptance will avoid unwelcome surprises later on in project
Key Points to Take Home
 The ‘Instant TM’ template is a flexible platform that serves multiple
purposes
 POCs are a great way to test-drive SAP TM
 The template contains many elements, including transport scenarios,
special features, and industry flavors
 Template-based implementations have proven to shorten
implementation cycles
 Model-Based Design is the core idea of the template-based
implementation
 End users are the primary beneficiary of Model-Based Design
Agenda
 Part 1:
 Introduction of Novigo’s ‘Instant TM’
 How customers can benefit from this accelerated
implementation methodology
 Part 2:
 How NIBCO leveraged a template-based approach to
deploy SAP TM 9.0 as a ramp-up customer in 19 weeks
Learning Points
 Business drivers and SAP landscape
 How a short duration TM project might be
accomplished
 Project results and business benefits
 Challenges and recommendations
NIBCO Company Overview
 Leading provider of valves, fittings and flow control
products
 Founded in 1904, family owned
 Headquartered in Elkhart, Indiana
 More than 2,400 employees worldwide
Business Drivers Supporting TM Project
 Cost savings
 Grow the business
 Looking for ways to do more with less
 Accommodate increased demand
 Quality, efficiency, process improvement
 Transport planning only done opportunistically with manual
tools like Excel
 Customer satisfaction
 Needed method to centrally store freight rates to support
carrier selection (key customer requirement)
SAP Landscape at NIBCO
 ERP
 Financials
 Sales and Distribution
 Materials Management
 Warehouse Management
 HR/Payroll
 Production Planning
 Business Warehouse
 Transportation Management
 Business Objects and analytics and optimization
 Advanced Planning and Optimization (APO)
TM Project Highlights
 Leveraged Novigo’s pre-configured Instant TM template
for quick implementation
 19 week implementation end-to-end from Project KickOff to 1st pilot Go-Live!
 2 final pilot sites launched within 9 weeks of first go-live
 3 additional NIBCO implemented go-lives over 3 month
period
 Successful integration of ALK Technologies and SMC3
partner solutions for geocoding and LTL rates
NIBCO Processes Supported by TM
 Order Management
 Delivery Based Planning
 Planning & Optimization
 Road Transport: FTL, LTL, Parcel and Multi-Stop shipments
 Manual planning in collect scenario
 Carrier Selection based on freight cost, priority, customer
specific rules (BRF+)
 Execution & Monitoring
 TM creates ERP shipments and adds custom specific fields for
printing and ASN purposes that are sent from ERP
 Process Integration
 PI for TM-ERP integration
 PC*Miler for geocoding
 SMC3 RateWare XL for LTL rating
Project Background - Scope
 Utilize SAP Transportation Management
 Load Planning
 Mode Selection
 Carrier Selection
 Domestic Outbound
 3 pilot sites
 4 general rollout sites
 Interfaces
 Geographic Information System (GIS)
 Less than Truckload (LTL) rates
Why Use a Template Approach?
 Faster implementation
 Leverage previously developed content
 Expertise in newer technologies
 Knowledge Transfer
 Reusability
 Basic configuration does not change
 Existing set-ups are a reference for future deployments
Transportation: Before SAP
 Using LE shipments in ECC (VT01N, VT04)
 Manual activities to determine mode of shipment
 Manual activities to determine transportation
partners – spreadsheet driven
 No consistent processes throughout organization
Transportation: With SAP TM
 Work list planning
 Load planning based on destination location
 Mode selection based on site-specific weight
breaks
 Carrier selection based on cost
 LTL rates accessed through SMC3 service
 Truckload rates maintained in TMS
 Routing guides based on customer preferences
 Incompatibilities as needed
Project Team
 Internal
 (5) Business SME’s – Part-time
 (2) Developers – Part-time
 (2) Basis & PI – Part-time
 (1) BSA/Project Manager – Full-time
 External




(3) Functional consultants – 2 Full-time/1 Part-time
(1) Architect – Part-time
(1) Developer – Part-time
(1) PI – Part-time
SAP TM Project Timeline
SAP TM at NIBCO: Key Business Benefits
 Increased business by 1.7%
 Additional volume shipped over previous year
 Reduced freight spend 1.3%
 Efficient carrier selection & multi-stop shipment creation
 Reduced hundredweight cost by 3%
 Shipment planning – 2 hours down to 15 minutes
 User acceptance and satisfaction
25
SAP TM Key Learnings: Technical
 Scope project so most (if not all) business scenarios
covered in smallest footprint.
 Verify all components are installed / activated
 ECC business functions
 ECC-SE
 Core Interface (CIF) might require applying notes
 Address creation language – Note 6348391
 Product Freight Group missing – Note 1301908
 Make sure all interfaces are sufficiently stress
tested
SAP TM Key Learnings: Business
 Ensure business processes at multiple sites are
consistent
 Senior Management Buy in
 Implementation partner is key
What is Next?





Stock Transfer Orders
Tendering
EWM
Event Management
Mobile
FOLLOW US
THANK YOU
THANK YOU FOR PARTICIPATING
Please provide feedback on this session by completing
a short survey via the event mobile application.
SESSION CODE: 4102
For ongoing education on this area of focus,
visit www.ASUG.com