Integration of logistics service providers:
Connecting CEP-Service-providers and forwarding agencies directly to SAP
Results of the Project
„Before the project, various CEP (courier, express, and parcel) service providers at SEW-Eurodrive were integrated into the shipping processes in different ways. The goal of the project was to establish a standardized and rollout-ready integration of the CEP service providers.“
Armin Neff, Team Leader, IT-Services Production & Purchasing
SEW EURODRIVE
The Whole Story
SEW-EURODRIVE – The Customer
SEW-EURODRIVE is a German global acting company group which is represented in over 50 countries with production-, assembly plants and sales branches.
Dependent on requirement or industry, SEW-EURODRIVE offers individual solutions from a comprehensive kit of gear engines and frequency converters, servo drive systems, decentral drive systems and industrial gears. SEW-EURODRIVE is technology- and market leader in the area of drive technology/drive automation. In addition, SEW-EURODRIVE offers scalable application solutions (Variolution-Packets) and individual system solutions (Maxolution).
In the assembly plants in Germany, France, China and Finland the components are produced in advance. The end products are assembled in 75 installation factories worldwide and tailored to the customers´ needs.
The Challenge: At A Glance
SEW-EURODRIVE – The Challenge
SEW EURODRIVE has 77 local Drive Technology Center all over the world. Goods are sent to customers from 60 locations.
The branches in the USA use mainly FEDEX and UPS for shipping and SAP SD/MM for logistic. In France SEW-EURODRIVE uses SAP EWM already and trust TNT for shipping. In Germany, SAP/MM is used in connection with DHL and DPD.
Depending on Country and location, different systems to communicate with CEP-Services and to operate the shipping process were in use. There is no integrated shipping process implemented, the processes in use contain various media breaks. Employees must collect the important shipping information from the different sources, a very time-consuming process.
Company-wide used SAP-systems are the only common element in group logistics. Therefore it made sense to introduce a SAP-based solution for the goods dispatch process as a company-wide common standard. Important requirements for the solution were furthermore, that it should be close to the SAP Standard, flexible, modifiable and that it could be rolled out world-wide.
SEW EURODRIVE
Connecting 3 countries and
5 Service Providers in 6 months
SEW EURODRIVE– The Project
„Before the project the various CEP service providers were integrated at SEW-Eurodrive in different ways. Target of the project was to establish a standardized and rollout able solution for connecting the CEP service providers.“
„We don´t want to build artificial barriers into our solutions and to force the customer into a lock-in situation with us . But we want to convince the customer with of the performance of our solutions to take us into account for future projects.“
The concept of SERKEM –open SAP-Solution and team-oriented project work- matched exactly with the requirements of SEW-EURODRIVE. The first project where the CEP-Solution from SERKEM was to be implemented was the SAP rollout on American location from SEW-EURODRIVE. Here, the roll-out-ability and flexibility of the template should be put to a test.
SEW-EURODRIVE planned together with SERKEM to start with the integration of FEDEX and UPS at a pilot location and then to roll out the newly developed template largely independent at the other 6 location. The project as part of the SAP-rollout in the USA had a tight timetable.
The implementation of specific American requirements, the coordination with the service providers and the integration into the SEW-Process landscape had to be finished before the Go-Live of the whole project. This was achieved.
Convinced by the project success in USA, where over 7000 shipments are sent per month by using the new CEP-Solution, SEW-EURODRIVE decided to work together with SERKEM to integrate the services of TNT in the shipping process under SAP EWN in France:
Same problems, other shipping contractor, other template, same result. Approximately 12 weeks after project start TNT was integrated seamlessly into the goods dispatch process at Brumath.
The newest project SEW-EURODRIVE and SERKEM implement together is the integration of DPD and DHL at the headquarters in Bruchsal.
Like in other company locations the interaction with the logistics service providers is now carried out completely in SAP. The labels of the different partners are printed directly in SAP and together with the other shipping-specific documents they are processed at the packing table.
Additionally, during the label printing process the tracking code is already generated and updated in the handling unit in SAP. This makes it possible to directly access the online tracking of the shipping company in SAP.
The order number of the customer, the number of the consignee and the SD-shipping number are printed as reference numbers. As the delivery reaches the customer, the status information of the respective shipment gets updated directly in SAP. Now SEW has a completely transparent, continuous process without media breaks in place in its own SAP system.
SEW-EURODRIVE is very satisfied with the solution and the project success:
„The previous projects with SERKEM could be carried out very pragmatic and cooperative in a short time. It is planned to roll out the flexible solution gradually in the whole SEW group, as needs arise.“
Image material: © SEW-EURODRIVE GmbH & Co KG
