In our first article in the SAP GTS series we covered an overview of SAP GTS, in the second we covered the benefits of SAP GTS and in this article we talk about SAP GTS and SAP Event Management integration...
Why integrate SAP GTS with SAP EM?
Many of the issues that apply to global trade revolve around not having the needed information at the correct time or place. Lack of timely visibility into when an event in the process is not syncing with a requirement can lead to large cost increases (fines) or schedule delays (customer satisfaction impacted).
Any SAP GTS solution that has been integrated with SAP EM allows organizations to have real-time visibility into their customs processes. Organizations can quickly navigate to issues that need to be resolved. SAP EM proactively highlights the exception to management, allowing companies to quickly react to mitigate any deviations to the import or export plan in process. SAP has delivered the integration points with SAP EM from with the SAP GTS solution.
Note: SAP does not deliver content that relates to SAP GTS in terms of SAP EM configuration or development. SAP does provide, however, the means to easily extract data from SAP GTS to send to SAP EM. The coming sections will discuss the details around what is provided in the SAP GTS system, and also talk about what could be done in the SAP EM system to consume SAP GTS data.
Supply chain managers focus on several key metrics when evaluating their international import / export operations:
Cost: Duties, demurrage, third-party filing and expedition costs
Time: Cycle time, delays at customs, late delivery
Risk: Security filings, customs valuation and audits, license and permit requirements
There are several factors that have a direct impact on these metrics:
A short turnaround time to comply to new regulations
Increased complexity and scrutiny by government authorities. Companies found to be non-compliant could face fines and even jail time for executives
Lack of end-to-end visibility into the process and, in particular, delays or exceptions encountered
The integration with SAP EM allows supply chain managers to address the following key questions:
What is the status of this particular shipment?
Which shipments have a potential for missing their delivery date?
Which shipments are currently stuck in customs?
When will these goods be released?
From a custom’s operations perspective, the following questions are addressed by the SAP EM integrated solution:
Which customs declarations require immediate attention?
What is the customs status for a particular shipment?
Benefits of integrating SAP EM and SAP GTS
SAP EM can be used in many ways in conjunction with SAP GTS to provide proactive exception management and process visibility. Key benefits to note are listed below.
Integration with SAP EM provides end-to-end supply chain visibility of customs and government agency events from within SAP GTS.
By tracking actual events against the plan for those events, companies are able to reduce the time to respond to issues in the supply chain process. This response time is often termed, “Time to Action.” The goal of any supply chain manager is to reduce the “Time to Action” in order to “Collapse the Supply Chain.” When SAP EM is embedded on top of the import or export process, an ability to quickly recognize where the bottlenecks are within a process is gained. Without this knowledge the process cannot be fixed — “You cannot fix something if you don’t know it is broken!”
Decrease the cycle time of the supply chain by identifying early and acting on exceptions uncovered in the process. Faster customs clearance through proactive resolution of exceptions plays a big part in decreasing the overall cycle time. SAP GTS speeds up the supply chain by having accurate, timely master data and documentation supporting the import and export processes.
Reduce the “Time to Action”
“Collapse the Supply Chain” – Reduce the cycle time
Improved customer service through transparency of the supply chain status with customers and suppliers
Reduced inventory count due to a more reliable supply of international goods. For example, if a process is in place that can quickly react to potential delays, a confidence exists that goods can be delivered on time as planned. Companies need not be concerned with carrying excess safety stock.
Reduction in costs due to a reduction of duty exposure and filing costs
A reduction in risk can be shown through automation of compliance and the ability to show “reasonable care” throughout the process
Many more possibilities exist for process improvement when integrating SAP EM into the SAP GTS solution...
In the next couple of articles I'll run through the actual configuration needed to integrate SAP GTS and SAP EM.