Why do we need a track and trace solution to cover our end-to-end Supply Chain?
The risk of disruption to the Supply Chain causing huge harm to the business has increased immensely over the last several years due to…
Rising customer service level expectations
Fierce global competition – if you don’t get it right there are several alternatives waiting to take your place
Rising transportation costs
Global supply chain disruption cost $56 bn in 2015 (Research from the British Standards Institute) 72% of suppliers who have dealt with a breakdown in their supply chains have lacked the full visibility needed to come up with a fast and simple solution (Study by the Business Continuity Institute)
Understanding Track and Trace – a Definition
Track – The Present status!
Where is it now?
Who has it in their possession?
What is it’s current condition?
Trace – The flow up until now – The Past
Where has it been?
Who has had it?
Was it handled appropriately?
What should you track?
Product or Objects
Cartons / Pallets
Product Process
Documents
Orders – Sales Order / Purchase Orders / Production Orders / Service Orders
Deliveries – Outbound / Inbound
Invoices – Customer and Supplier
Servicing the Extended Supply Chain
“Deliver on your promise to customers by tracking the status and fulfillment of processes and goods in transit across your global inbound, manufacturing, and fulfillment chain. With SAP Global Track and Trace, you can get real-time insights into the availability of materials and products to reduce supply chain risks and optimize costs” – SAP’s definition of SAP GTT
Key Capabilities
Process compliance in carrier collaboration
Gain visibility into the location and condition of your goods and assets along the entire supply chain
Perform better management by exception through real-time visibility into shipments, assets, and processes
Real-time situational insights
Capture business events in a business network environment
Provide real-time insights to all relevant stakeholders as per their specific business needs
Consolidate master data
Infrastructure utilization and goods throughput
Ensure tight integration with other SAP solutions
Notify stakeholders about the status of goods and processes, and adjust business processes as needed
Perform real-time reporting and analysis for turning insights into actions
Common Business Needs for Track and Trace
These are the main areas we find delivering huge value to the enterprise:
Order to Cash (OTC)
Ensure OTIF (On Time In Full delivery)
Integration with Outbound Logistics - Carrier and Freight Forwarder integration
Time to Insight Customer - Satisfaction
Procure to Pay (PTP)
Inbound Logistics - Carrier and Freight Forwarder integration
Time to Insight - Extended Supply Chain disruptions
Goods / Container / Asset Tracking
Returnable Transport Items
Rental Asset Tracking
Reduction in operational costs
Product Life-cycle Tracking (due Q4 2020)
Serialization
Pedigree capture and visibility
After sales tracking
Customer Satisfaction
SAP Track and Trace Portfolio
SAP has several offerings that are applicable in this space:
SAP Event Management – On-premise process and product track and trace
SAP GTT is the cloud version of SAP EM (NB: not all functionality is migrated)
SAP ATTP – Advanced Track and Trace for Pharmaceuticals - Replacement for SAP AII and SAP OER for Pharma companies
SAP OER – Object Event Repository – Serialized item tracking - Centralized Serial number management - EPCIS compliant messaging
SAP GBT – Global Batch Traceability - Graphical batch genealogy display - Distribution record for multiple batches
SAP’s vision for SAP GTT
SAP are looking at SAP GTT to have the following benefits or characteristics:
Food pedigree and Safety
Real-time insights in to Supply Chain
Supply Chain integrity
End-to-end logistics network visibility
On the go, instance-driven visibility
Easy partner engagement
Customer satisfaction
Proactive exception management
On-demand scalable performance
Predictive analytics
Consolidated master data
In my next blog I will go through more technical detail covering the following:
Event-to-Action Engine
Overdue Event Monitor
Difference between Business and Technical Timestamp
GTT architecture
ERP to GTT integration
App overviews
GTT and Leonardo IOT Bridge