Transportation
in the Digital
World
Meeting the
Demand
Strategies to thrive in an
age of increasing
expectations and
complexity
-1SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
KEVIN’S POINT OF VIEW
Dear Customers and Partners,
Eight billion people. That is the global population projected by 2030.1
The middle-class population is expected to reach almost 5 billion2 with 85% of this growth
coming from Asia and wield €56 trillion in spending power,3 which translates into a much larger
future consumer base that will be traveling and demanding goods. This macro trend alone will
strain transportation infrastructure resources and processes, but when coupled with higher
expectations regarding service options and performance created by the digital age, the future
looks more challenging and complex than ever.
To thrive in the digital
world, transportation
requires smart digital
strategies, enabling
transportation to scale
while at the same time
being more reliable,
responsive, cost-effective,
and customer-centric.
Kevin Schock
Global Head of Cargo
Transportation and Logistics
Travel and Transportation
SAP SE
Anticipating and meeting these challenges cannot be accomplished simply by building more
infrastructure, expanding the fleet, or hiring more employees. It requires reevaluating today’s
business and putting strategies in place that enable transportation to scale, while at the same
time being more reliable, responsive, cost-effective, and customer-centric. To meet the demand,
we have to recognize the importance of being a part of the digital world and incorporating digital
strategies.
Transportation is already well-versed in digital technologies – monitoring equipment health,
recording delivery events 24x7, and tagging equipment. Yet, there is still more to do. Just as Uber
changed the game in the taxi industry by using sensors, smartphones, and real-time network
computing, there are opportunities for the transportation industry to tackle inefficiencies in the
areas of transportation assets, the workforce, operations, and the network.
How are transportation companies moving forward and avoiding the trap of merely replicating old
ways of doing business on new technology? How does transportation address business process
needs, not only within the operation but also externally with global digital transportation and
logistics networks? The goal is to achieve a balance between preparing, investing, and thriving in
the digital world, while ensuring the mission of cost-effective transportation is maximized. Simply
put – the transportation company of the industrial age needs to become the architect of global
trade in the digital age:
• Maximize the performance and value of current investments
• Extend value creation through adoption of next-generation systems
• Innovate for customer-specific scenarios
With nearly 30 years in the transportation and logistics industry on the business and the IT sides, I
have heard many describe their companies as a railroad or as a warehouse logistics business –
not an IT business. While this is true, it is also clear that IT in the industry has never been more
relevant than it is today. When transportation systems work together, digitization is the enabler to
meet the transportation demands of the future.
This document offers our perspective as to where the industry will go and how SAP contributes to
the evolution of transportation and logistics. Thank you for your interest, and I look forward to our
journey together.
Kevin Schock
Global Head of Cargo Transportation and Logistics
Travel and Transportation
SAP SE
-2SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
TABLE OF CONTENTS
Executive Summary
4
Top 5 Technology Trends
7
Digital Road Map
8
Optimize your Operations
10
Extend Value via Business Processes
11
Innovate Through Business Models
12
Digital Business Framework
14
The Digital Core
16
Customer Experience
17
Workforce Engagement
18
Business Networks and Supplier Collaboration
19
Assets and the Internet of Things
20
SAP HANA Platform – A New Computing Paradigm
21
How It All Comes Together: Port of Hamburg
22
How to Start
23
Why SAP?
25
Create Competitive Advantage Through Innovation
26
SAP Services to Drive Your Success
27
SAP’s Comprehensive Ecosystem
28
-3SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
EXECUTIVE SUMMARY
Challenges and opportunities
The digital world – The future is now
In the transportation industry, the demand created by population growth and today’s
digital age is already happening. “Demand” in this case goes beyond volumes to
include market pressures and a wide variety of competitive, economic, and policy
issues. Resource constraints, regulations, evolving competition, higher customer
expectations, and economic, as well as climate-related volatility are the “new norms.”
To meet this demand, digitization of four fundamental elements – assets, talent,
operations, and the network – is enabling transportation companies to rethink their
business models and focus on how to drive revenue growth while managing
operational costs.
Navigating the digital world
To succeed, the industry will need to continue to reevaluate what has worked in the
past by putting in place a conscious digital vision with clearly articulated strategies. In
particular, new business models such as defining service product catalogs and
providing comprehensive solution portfolios are value drivers using today’s
technology. To deliver, the industry will not only need to improve business processes,
but will also have to fund and prioritize investments for the right technology platform
that can deliver on the vision.
“Digital” is an overused word. But it is not hype – there are proof points for the
transportation industry. We are seeing the benefits of integrating processes so that
data about resources in the network can be better orchestrated to improve fluidity
that potentially doubles operational capacity without traditional capital expenditure
outlays. Using sensor data, advanced processing power, and analytics, up to a 10%
reduction in maintenance costs is realistic while at the same time improving asset
availability.4 As a recent DHL trend report stated, “data is the new oil,” and when we
use technology to capture and process more of it faster, the rules of the game are
changed forever.5 The prize: companies that adapt to a digital world are 26% more
profitable” than their peers.6
Digital business
models are disruptive.
The rules have changed.
• Amazon, a specialist in warehouse
logistics, now has 173 fulfillment
centers globally. Amazon Prime and
its same-day delivery service are
embedding logistics into the products
Amazon sells. Analysts expect
Amazon to take over their own
logistics currently run by companies
like UPS. In Q1 2016 Amazon leased
20 cargo planes.7
• Digital mapping of a rail assets menu
in the UK will allow maintenance
teams to locate assets in the 100year-old network much faster.8
• Old Dominion Freight Lines is highly
profitable compared to industry peers
due to a strategy of providing a menu
of services beyond its core less-thantruckload (LTL) business.9
This digital world has a complex impact on transportation. Yet, digital technology
provides transportation companies with the perfect opportunity to achieve new
growth and rethink interactions with customers. In addition, it allows you to adopt
new, innovative business models, further streamline operations, and scale the
business in ways not feasible before. In short, digitization will make transportation
providers better – to the delight of the customer (shippers) and their customers.
Change does not happen overnight. The goal is to ensure the journey to success in
the digital economy is a smooth evolution that is both pragmatic and businesscase supported in the near term, and positions the transportation industry for a
smarter business operation in the future.
EVERY BUSINESS IS A TECHNOLOGY BUSINESS
Keys to win in the digital world:
• Lead reinventing and digitizing the business
• Digitize the engagement with customers and partners
• Participate in the logistics network to better orchestrate your end-to-end business processes
-4SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
EXECUTIVE SUMMARY
Vision and drivers for transportation in the future
Transportation for the digital world
The way forward
What could future change look like in the
transportation industry?
Meeting the demand in the future requires a
strategic yet pragmatic approach. Implementing
digital solutions into your business without
considering the impact on the workforce, your
assets, and how work is performed today is a risky
and potentially costly move. The following drivers
and approach are recommended for meeting the
demand:
• Projected growth as well as competitive, market,
regulatory, and other influences require
constant improvement in operations. The first
step is to maximize your existing assets,
workforce, and operational processes to deliver
new, previously unattainable levels of returns on
your invested capital.
• When your core business is running optimally,
you can focus on incremental value creation.
For example, extend your existing capabilities by
defining your (and your partners’) services in a
services catalog, thereby growing the business
while helping the commercial, operational, and
customer sides of your business deliver more
successfully.
• When your business is operating at its maximum
potential and you have leveraged your current
capabilities, you are in the best position to
introduce new, customer-specific innovation
scenarios into your business and the
marketplace.
Asset utilization
It is clear that capacity management and
equipment utilization will need to improve, as
equipment represents a vital component of the
operation. However, with a projected 4x growth in
international freight transportation, putting that
much additional capacity on the infrastructure is
unrealistic.10 Using digital technologies to match
equipment supply to demand in real time as well as
predict when maintenance should occur are
examples of proven ways to maximize the
available capacity and lower the associated
maintenance costs.
Filling the talent gap
Along with assets, the other key resource variable
is the workforce. Projections point to a talent gap,
such as in the U.S. trucking industry, where the
workforce gap of approximately 30,000 is
projected to grow to 240,000 by 2022.11 To meet
future requirements, organizations need ondemand sourcing and the ability to provide the
type of applications expected by the nextgeneration workforce.
Outside-the-box operations
At the operational level, new business
opportunities are created by market forces such as
market and regulatory constraints, customer
expectations, and technology. A way to exploit
these opportunities is to define service capabilities
and package them so they can be easily
purchased, measured, and improved. This
includes not only existing processes but also
entirely new offerings, such as local 3D printing to
deliver goods on demand.
FUTURE HORIZON OF DIGITAL
INITIATIVES
Total volume of global
goods trade in 2030, nearly
double that of 201412
$1 billion
Empty container cost to
Maersk Line every year 13
$500 Billion
Shared warehouse
agreements provide
companies (customers of
logistics companies) an
opportunity to reduce their
logistics costs by as much
as 12 to 15%. We estimate
that companies
implementing these
agreements could save
close to $500 billion in
operating costs .14
60% fuel
wasted
Due to driver overacceleration – an issue that
could be overcome by
technology such as
Continental AG’s eHorizon,
which plans acceleration
and braking to maximize
fuel efficiency in freight
trucks15
A smarter network
Finally, in the future, organizations will need to
leverage data in the network more than they do
today. With sensors sending real-time information
as partners in the network execute transactions,
advanced algorithms are used to realize higher
operating performance levels.
-5SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
$18 trillion
EXECUTIVE SUMMARY
Strategies for improved operating performance
DIGITAL ROAD MAP
Do you have the right strategy? The starting point of the transformation journey is to reimagine your business with business outcomes
and customers at the center.
OPTIMIZE
OPERATIONS
Your workforce and assets are the foundation
for your business, influencing what you are
able to do (your processes) and how you go
to market (your business models). If
managed optimally, they can be a source of
savings to fuel new investments such as by
reducing idle time for both the workforce and
assets. In addition, investments in workforce
education, especially in digital skills and asset
maintenance, increase quality and efficiency.
Contemporary asset management strategies
are holistic and connected, from strategy and
capital planning to work order execution,
providing greater control and cost saving
opportunities. Imagine your workforce having
all the information about your assets
immediately available, helping you match
programs to strategic plans, approve and
monitor costs against budgets, and
ultimately using technology and data to
redefine your optimal maintenance cost
curve.
EXTEND VALUE
BUSINESS PROCESSES
Customer orders are the lifeblood of the
transportation business, yet their full
potential is not being exploited. Meeting
future demand requires a 360-degree
view of customers and their orders.
Imagine an operation where every order
and every customer interaction is
constantly monitored, and your
workforce is automatically notified of
any exceptions to your best practices.
The result: service improves and
additional value-add offerings can be
positioned.
INNOVATE
BUSINESS MODELS
Data is the essence of the digital age and
is the asset that enables innovation in
terms of new and improved business
models. Innovation opportunities lie in
the massive amounts of data from
networks, sensors, partners, and
customers to provide better real-time
information, greater customer
interaction, and an improved ability to
meet demand. Imagine your business
when new services are profitably
delivered, while at the same time
exponential operational performance
gains are realized by connecting and
orchestrating your network of assets –
equipment, facilities, orders, and people.
Data becomes more than an asset, but
also your way to success.
PLATFORM
Do you have the right platform?
We ensure solutions align to desired outcomes. SAP’s digital business framework is based on the five key pillars of a digital strategy:
1. Customer experience across all channels
2. Supplier collaboration across all spend categories (maintenance, repair, services, and expenses)
3. Core business processes (finance, procurement, supply chain, and work management)
4. Workforce engagement, including employees and contractors
5. Assets and the Internet of Things to drive real-time insights and new business models
ROI drives this significant phase of the transition to digital. It’s not about any one of the above five pillars, but rather how they all
interconnect to achieve business outcomes.
We apply Design Thinking as our key approach during the reimagining phase. Design Thinking can be described as a discipline that uses
the designer’s sensibility and methods to match business needs with what is technologically feasible and what a viable business
strategy can convert into customer value and market opportunity.
-6SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
EXECUTIVE SUMMARY
Five technology trends changing everything
We are witnessing an unmatched era of true business innovation. Breakthrough technologies have
matured and hit scale together, enabling five defining technology trends:
HYPERCONNECTIVITY
1
Everything is becoming IP-addressable, presenting the potential
to make today’s rules around transportation look outdated and
complicated. Connectivity is critical to transportation, driving
collaboration between shippers’ and consignees’ orders,
suppliers, agencies, assets, and the workforce. The intelligence is
in the network.
SUPER COMPUTING
2
A technology game changer in a 24x7x365 industry like
transportation is in-memory computing. This breakthrough
collapses transactional and analytical processing into a single
platform so that better decisions can be made in real time. The
performance gains are a quantum leap that enable a holistic, realtime view on every business transaction and resources involved
while showing its immediate impact on the company’s metrics.
CLOUD COMPUTING
3
Cloud computing accelerates time to value, drives higher
adoption of new technologies, and connects value chains in real
time. Cloud solutions lower the cost of transportation operations
and are a natural fit for decentralized operations.
SMARTER WORLD
4
Sensors are not a new technology to transportation. But the
value is increasing as modern sensors are more reliable, last
longer, do more, and cost a lot less. For transportation, the
sensor’s roles will expand and drive more exploitation of data.
CYBER SECURITY
5
As with most companies, cybersecurity is becoming a top
priority in the boardroom of transportation companies. As
transportation business models and processes evolve, taking
greater advantage of the benefits that digital technologies bring,
strategies need to be in place to ensure business availability and
reliability.
-7SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
DIGITAL ROAD MAP
CHANGE THE RULES OF THE GAME
IN THE DIGITAL WORLD
Digital technologies will be used to address the inefficiencies in the
transportation industry and change the future for transportation
companies and their customers.
-8SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
DIGITAL ROAD MAP
The transportation industry digital journey will continue to accelerate. The way forward
requires getting the most out of existing investments to support digital initiatives to realize
more value serving your customers and increasing revenues using technology.
DIGITAL INNOVATION IS REAL
Companies reimagine their entire business to become – or remain – successful players in the digital world.
OPTIMIZE YOUR
OPERATION
EXTEND VALUE VIA
BUSINESS PROCESSES
INNOVATE THROUGH
BUSINESS MODELS
Get the most from your current
investments and set the foundation for
the future
Extend value for your stakeholders with
digitally empowered business processes
across the future value chain.
Transform your business with
innovative models that capture more
business in the future
• Holistic asset management: Enable
your workforce with tools that provide
a complete picture of your operation
so they can move from transactional
activities to management of asset
maintenance strategies and plans to
minimize downtime and costs.
• Customer transparency: Remove
silo’d approaches to systems and
digitally enable 360-degree
management of customers and
orders.
• Services revenue models: Define
and productize your services in ways
that can be priced, sold, consumed,
and collected, bringing more value to
your customers and differentiation in
the marketplace.
• 3D visualization: Enhance
productivity with tools that represent
assets in digital 3D models so workers
find information faster with less error.
• Interactive technologies improve
user experiences and deliver the right
visual, text, and audio information on
demand, improving productivity and
employee engagement.
• On-demand workforce strategies
enable you to tap into the labor pool
to meet business needs without a
long-term commitment or high
acquisition costs.
• Millennial learning: Merging safety
and compliance training for the
millennial generation drives better
outcomes.
• Forecasting precision: Gather data
from all relevant sources, coupled
with mature algorithms, to help
anticipate macro-economic
fluctuations.
• Predictive maintenance: Unlock your
data using predictive techniques to
identify the right time to maintain
assets and change the cost/risk
curve.
• Logistics business network:
Partners can help to grow revenues
profitably and provide the necessary
visibility demanded in the digital
world. Logistics networks are a
mandatory part of modern
transportation strategies.
• Asset network provides a way for
sharing asset characteristics and
operational data between
manufacturers and operators.
-9SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
• Total transportation solutions
provider: Expand your capabilities to
manage more of your customers’
transportation and logistics needs,
across all modes and geographies.
• Network fluidity and resiliency:
Minimize disruptions to maximize the
utilization of assets while realizing
gains in responsiveness. This takes
your existing business model to new
levels.
• Brand extensions: Combine omnichannel commerce and digital
technologies to move into new
segment offerings.
REIMAGINE EVERYTHING
OPTIMIZE YOUR OPERATION
Digital approaches and technologies help you realize more out of your existing investments. They deliver
key growth enablers by extending your value and innovation programs with a more reliable operation and
performance foundation and improved returns to fund future investments.
Maximizing work requires automating manual tasks, which
enriches jobs and drives efficiency.
Holistic asset management
Address millennial learning needs and preferences through
use of modern simulation techniques (gaming) to improve
engagement and increase motivation.
The assets (trucks, locomotives, wagons, rail track and trailers,
containers, warehouse robots, etc.) are aspects of your
operation you control to ensure service levels are met while
costs are minimized. With a holistic approach to managing and
maintaining your infrastructure and transportation assets, you
can realize dramatic cost savings while ensuring asset
availability.
Asset information network
Improved asset management collaboration between
manufacturers and operators through asset digitization unites
disconnected information silos so that information such as
reliability of parts can be shared and improved.
Reimage work orders with 3D visualization, a digital version of
your assets that enables more efficient asset management
work processes – from work order instructions to faster
procurement to animated maintenance procedures. Today,
computer models of parts from 3D systems can be used to
print spare parts on demand.
Interactive wearables bring next-generation technology to
your operation to improve productivity and safety. Examples
are interactive glasses where line workers no longer need to use
tablets or pen and paper, but rather tap and speak instructions
while working on assets, scanning barcodes, etc. – all while
maintaining situational awareness for safety.
Contractor organizations provide specialized workforces
vital to all aspect of the transportation business, in particular for
capital projects programs. Key here is the ability to scale the
workforce up and down to address market demands while at
the same time ensuring the contingent workforce is managed
effectively as part of your entire workforce.
Canadian National railway expects to reduce
some of the nearly CA$1 billion contract [labor]
spend by implementing Fieldglass. 16
“Vision picking” with wearable smart-glass devices
has saved 25% pack and pack times according to a
2015 pilot at Exel. 17
- 10 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
REIMAGINE EVERYTHING
EXTEND VALUE VIA BUSINESS PROCESSES
When you optimize your operation, you are in a better position to focus on your core business by making
investments that improve service levels as well as enable new service offerings. Higher levels of service
performance result in operational capabilities that help you profitably meet the demand.
Customer transparency
Predictive maintenance
Silo operations that manage contracts, customer orders,
operations, pricing, equipment, invoice presentment, and
collection in disparate systems are outdated for the digital
economy, each providing a different perspective of the
customer. Connecting the systems and processes provides a
360-degree, single view of the truth about the customer and
make that view available across all touch points. This helps
facilitate critical functions, such as marketing, sales, and
operational delivery.
Sensor data, high-powered computing, and advanced
algorithms identify smarter asset management strategies that
determine the optimal time for maintenance, automatically
generate work orders, and orchestrate logistics services
delivered by sourcing networks. The result – a shift in the
cost/risk curve down, driving millions to the bottom-line in
terms of lower maintenance costs as well as asset acquisition
avoidance and at the same time improving service reliability
and availability.
Forecasting precision
Understanding transportation performance is a tremendous
challenge due to the volume of data, macro-economic
indicators, and origin/destination pair combinations. With the
latest computing power, visualization tools, and unique
forecasting models, better insights become easier to identify.
For example:
• Identify key drivers of performance in transportation by
commodity, location, and customer across multiple lines of
business
• Understand how macro-economic indicators and customer
satisfaction (price, service, sentiment) impact business
performance
Logistics business networks
Internet of Things-based maintenance innovation represents an
opportunity to transform operations, reaching a new balance
between cost and risk. Specifically, assets are not repaired
based on traditional time and/or distance parameters. Instead,
repairs are made when the asset indicates it needs repair,
resulting in longer useful life of the asset.
Message flows in the network will continue to increase as
information about the order continues to be as important if not
more important than the physical movement of goods. The
future will bring a network of networks, such as logistics and
asset networks.
“Although Big Data analytics can never replace
subject matter expertise, the ability to synthesize
detailed analysis on multiple levels into easy-toconsult dashboards allows you to focus quickly
on potential problems and opportunities,” 18
“Anticipating events and maintenance operations will
enable our company to reduce errors and make
processes more efficient, while delivering better services
and improved quality standards. We expect an 8-10%
reduction of maintenance costs of 8-10% against an
annual maintenance spend of 1.3 billion € per year.”4
- 11 -
SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
REIMAGINE EVERYTHING
INNOVATE THROUGH BUSINESS MODELS
Digital transportation platforms will be a key strategy for the digital world. These platforms use data from
a wide variety of sources to improve efficiencies in all aspects of transportation, from buying and selling to
operations and receivables. The future will bring significant operational gains resulting from converged
systems platforms leveraging data between shippers, transportation providers, and all participants to
orchestrate improved transportation results and meet the demand.
Services revenue models
Bring your business into the digital age by productizing your
services depending on the specific service execution. For
example, you can define goals for intermodal service such as
cut-off durations and define services and equipment options.
But more importantly is the ability to specify your best practice
parameters as to how work should be performed (when and
how) and be able to measure against the parameters, 7x24.
Network fluidity and resiliency
The flow of assets in the network is the most important
determinate of network performance. Using sensor
capabilities, hyperconnected networks, and next-generation
processing power, new operating models help extract more
performance from the network. When new levels of operating
performance are realized, there is additional capacity to take on
incremental business without additional investments in
assets.
Total transportation solution provider
Shippers are now looking for services and service providers
that support their business strategies. This drives the need for
a portfolio of innovative service offerings.
Brand extension
Customers expect convenience and product availability. As the
traditional sourcing lines blur, the role of transportation and
logistics, historically “behind the screens,” becomes a relevant
part of the product mix. New models are emerging that reshape
the network while creating opportunities to extend the brand.
• Direct-to-car deliveries
• Extending into distribution without stocking inventory by
installing 3D print shops within the existing transportation
network
Some recent examples include XPO Logistics’ extending their
service portfolio with the purchase of Con-Way LTL, railways
continue to add supply chain services to complement their
networks, and changes in last-mile distribution, largely due to
Amazon’s delivery offerings. Other examples of innovation in
this area include:
• Expanding modal choices from carriers
• Supply chain services such as trans loading, warehousing,
global logistics services, and white glove deliveries
• Supply chain and logistics data transparency, allowing your
customers to understand options and costs at a more
granular level
Underlying all these examples require technology to be
successful. All portfolio offerings need to be digitally connected
to the workforce, assets, suppliers/partners, as well as
customers to deliver innovation and meet customer
expectations.
BUSINESS MODEL DISRUPTORS
A new category of transportation providers
described by PWC as “hybrid carriers” are
acquiring complementary companies with the aim
to provide a broader portfolio of flexible services.19
BRAND EXTENSION
UPS is testing adding 3D printing and delivery
services into its product mix. As of 2015, the
industry had grown 34% annually from the prior
three years.20
- 12 -
SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
SAP HANA: THE GREAT SIMPLIFIER
With in-memory computing, we can now finally:
Transportation companies today are under tremendous
pressure as consumers expect improved services, real-time
status, and KPI reporting. Transportation companies like Linfox
and ARI are doing this today. This involves two key concepts:
simplification and innovation.
• Leverage Big Data from sensors, weather, social, and
geospatial sources. Bringing all data signals together leads to
optimal decision making, which can be instantly acted upon
in transactional systems via human and machine-to-machine
interfaces
• Extend the business process to interoperate with business
partners in near real time via advanced cloud-based business
networks
• Modernize business processes from finance to supply
chain, enterprise asset management and order-to-cash,
running them in real time with no data replication and no
batch programs
Simplification is all about doing what we are already doing, but
better, faster, and cheaper, such as real-time calculation of
optimal refueling points and amounts in real-time.
Innovation is all about reimagining transportation business
models and customer engagement by leveraging the
technology trends discussed earlier. An example is real-time
dynamic pricing based on loads, day of week, etc.
These capabilities open infinite new ways to optimize business,
drive business digitization, simplify everything, reduce cost,
and provide the agility required in a rapidly changing world.
The diagram below is at the heart of the digital transportation
platform. The idea is very simple, but only now can it be made a
reality – bringing together transactions and analytics on the
same platform. For example, ARI implemented a predictive
maintenance solution that supports its strategy of integrating
information technology (IT) with operational technology (OT).
SAP constructed an innovation road map designed to bring inmemory computing together with cloud computing and
mobility. This strategy has been embraced by early adopters
who are leading the transition to digital.
In-memory computing is a breakthrough from the SAP HANA
platform. The rapid adoption of SAP HANA across the industry
validates its massive potential for transportation. SAP HANA
helps create new business models that had previously just been
aspirations.
LIVE DECISIONS + LIVE TRANSACTIONS = LIVE BUSINESS
Customer experience
Customer data
Delivery management
Meter/sensor data
Portfolio management
Operational data
management
Trip plan management
Trip data
Business
intelligence
Business process
(data and information)
Rate/price management
Geospatial data
Third party data
Predictive management
Network data
SAP HANA PLATFORM
- 13 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
Equipment data
DIGITAL BUSINESS
FRAMEWORK
TECHNOLOGY PLATFORM
In a connected world where every company is becoming a
technology company, smarter products and services will
refocus commerce on business outcome and blur industry
lines.
- 14 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
DIGITAL BUSINESS FRAMEWORK
Every transportation company needs to think about the five pillars of a digital strategy
SAP understands the five pillars of digitization, and we also
understand that the continuously changing requirements pose
big challenges for businesses. The method of reimagining
business models, business processes, and work helps develop
the digitization road map.
Value creation often comes from solutions in your distributed
operation, which are based on and coordinated by the digital
core solutions. It is the platform for innovation and business
process optimization, connecting the workforce, the Internet of
Things, the supply network, and customers.
We built the digital business framework to support
transportation companies in developing and executing on their
digital enterprise strategy to become digital transformers that
fully leverage and meet the demand of the digital world.
1. Outcome-based customer experience
2. Re-platform core business processes and bring
together transactions and analytics in real time to
be smarter, faster, and simpler
3. Smarter and engaged workforce across all
employees and contractors
4. Supplier collaboration to accelerate growth
innovation
5. Harness assets and the Internet of Things to drive
real-time insights and new business models
Transportation companies must digitize to grow profits and
reduce costs by simplifying their operations. The value of the
digital economy is based on how to serve the customer
(shipper) and their customers.
Supplier Collaboration
& business networks
Customer
experience
Digital Core
Workforce
engagement
SAP HANA Platform
Security
- 15 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
Internet of Things
& big data
THE DIGITAL CORE
A new generation of ERP solution running in real time, integrating predictive, Big Data, and
mobile, will change how business works, how the business is run, and how information is
consumed: The future is now.
Advanced in-memory computing signals an end to running the business in
batch mode, so you can have a digital representation of your transportation
network, costs, and profit in real time.
Real time
Real-time optimization of business-based changes will have a massive implication for how
we work, how we do business, and how we organize.
Power of prediction and simulation
Every employee can gain real business insights with the help of simulation and predictive
tools to drive smarter decisions, improve reliability, and reduce disruptions.
Agility
The ability to rapidly adjust operations, acquire and onboard new business models, or
reflect an organizational change in one-tenth of the time it takes with today’s systems will
yield the agility required in the digital economy. Furthermore, volatility due to weather,
customers changing orders, and economic uncertainties are now the norm, so hyperagility is needed for meeting the demand in the digital world.
Deployment choice and lower TCO
Accessing solutions to run the core has to be simple. Transportation companies now have
the choice to deploy in-house or in the cloud. In-memory computing also has a significant
impact on TCO, and it will free up funds for business-critical investments in the workforce
and infrastructure.
Consumer-grade user experience
User experience is key to accepting digital change. It drives adoption, user engagement,
and people productivity.
Fuel supply chain
optimization
Integrated supply chain
processes and
information from
procurement to delivery
to consumption
Transportation
assets
Single, real-time view of Transportation network
operational performance is geo-enabled to be
viewed and worked with
on a map
Operational insights
Finance
HR
Allow for visibility into Manage, develop,
the state of the
reward, and retain a
business at anytime
global workforce
SAP HANA PLATFORM
- 16 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
Simplify with SAP
SAP S/4HANA is the only end-to-end
solution that covers all business
processes and runs in-memory. It
helps transportation to run in real time
for fundamentally better performance.
For instance:
• Single, real-time view of business
performance with real-time analysis
of operational performance
• Optimized asset management
through predictive technologies and
sensors to optimize operational
performance
• 360-degree view of the customer to
improve the overall customer
experience
With SAP S/4HANA, you can
collectively monitor your operation
order status and any dwell, monitor
and predict missed cut-off windows,
and ,in the event of a mechanical
problem, immediately know the
impact down to the order level so you
can proactively put recovery plans in
place.
Customer
experience
360-degree, real-time
customer view, order to
cash
CUSTOMER EXPERIENCE
Digital technology has changed the game, but customers changed the rules. Customers
demand simple, transparent, personalized experiences across any channel, anytime,
anywhere, and on any device.
86%
Three key trends are reshaping the customer experience:
Outcome economy
The digital age elevates the expectations of the traditional transportation business model.
Shippers want more real-time information, greater and easier interaction, along with more
responsiveness and 100% reliability – all at lower costs. To accomplish this requires a nextgeneration approach to service and revenue management to meet the demand. Evolving to a
holistic digital model will meet these needs and establish a competitive edge.
Customer journey
Of customers are willing to
pay more for a better
customer experience21
57%
Of the buying process is
completed before a first
interaction with sales22
Customers choose their own journey across multiple logistical options, choosing service,
capacity, all while needing greater visibility. When things go wrong, you need to be there with
information to make the right decisions as well as the right tools and resources to help
customers answer their own questions.
Big Data in near real time
Data is the lifeblood of the transportation enterprise. Big Data analysis capabilities allow
companies to sense and respond to customers’ needs and network dynamics in real time as well
as predict the next, best step to provide the right service, at the right time, at the right
place. With the rollout of more intelligent sensors, the quantity of available data will virtually
explode, giving rise for business opportunities based on this insight.
Digitize your end-to-end customer experience with SAP
A single platform brings together marketing, sales, operations,
and customer service to ensure seamless digitization of the entire
customer experience. SAP solutions for customer engagement
and commerce powered by the SAP HANA platform enable a
360-degree view of your customer, real-time interaction, and
sophisticated, predictive analytics, fully integrated to the core
transactional system.
• Deliver personalized experiences in context with each
interaction
• Create a single, harmonized experience for your customer while
reducing the burden on employees
• Be prepared to engage your customers on the channels they
choose at any moment in their journey
• Achieve full integration with your core business processes to
provide a unique, end-to-end transportation-specific platform
- 17 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
Who is the
customer?
Payment per
services
rendered
What have
we
delivered?
360° view
of the
customer
What is our
product?
What has the
customer
purchased?
WORKFORCE ENGAGEMENT
The world is getting smarter in the digital age. But complexity is overwhelming the
workforce in this pursuit.
41%
Complexity is the enemy of workforce engagement. People are working harder
than ever but are not necessarily accomplishing more. People do not have access
to smart, consumer-grade technology to work better, faster, and more efficiently.
Organizational complexity is driving costs up and slowing down progress. Four
forces need to be addressed:
Increase in contingent
workforce spending in the
past five years24
Only 37%
Changing of the guard
Over 50% of the workforce will be from the millennial generation by 2020.23 The transportation
industry has to devise a workforce strategy to make work in this industry attractive for the digital
generation. There is a silver lining with transportation – job security. Having a steady income is
of utmost importance, and having the right compensation strategy to attract and retain talent is
critical.
of executives say
they plan for succession
and continuity in key roles. 25
12,000
Fewer hours of manual
processing each year using
SAP SuccessFactors
solutions26
Contingent labor is on the rise
Transportation companies are turning more to contractors and service providers to drive agility
and lower fixed costs. Transportation can outsource work, but not the responsibility for safe and
compliant operations. The contingent workforce must be digitally integrated in all business
processes and procedures.
Constant reorganization, consolidation, and acquisition
Reorganizing, consolidation, and acquisition to adjust to the new reality are becoming a constant
affair, but these efforts can’t be allowed to disrupt efficient operations.
Complexity is on the rise
The global supply chain brings more variables that can impact operations. Shipper strategies
and service demands are becoming more complex. Incidents and regulations have greater
impact. Equipment is becoming more technologically advanced. The workforce of the future will
need different skills, tools, and training to deal with the complexity.
Improve your total workforce productivity: Simplify with SAP
Digitize your workforce with SAP: SAP S/4HANA + SAP SuccessFactors solutions+ SAP Fieldglass solutions + SAP Fiori provide the
tools for total workforce engagement and advanced analytics.
• Recruit and onboard the best workforce, simplify their work, and ensure that regulatory and compliance requirements are met
• Manage the total workforce lifecycle from recruiting to onboarding, travel and expense, compensation, and learning (qualifications)
– all in one place
• Use smarter apps with a dramatically simplified experience to enable the workforce to easily access the right information across any
device
EMPLOYEE LIFECYCLE
Recruiting/onboarding
Performance and goals
Succession and development
Compensation
Employee record and payroll
Travel and expense
Workforce analytics
Learning
SMARTER APPS WITH
IMPROVED USER EXPERIENCE
Contextual
Intuitive
Adaptive and predictive
Anywhere/anytime
Secure
SAP Fiori
- 18 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
FLEXIBLE WORKFORCE LIFECYCLE
Recruiting/onboarding
Time and expense
Invoicing/payment
Statement of work
Performance management
Workforce analytics
BUSINESS NETWORKS AND SUPPLIER COLLABORATION
Trillions of dollars of commerce moving in silos + millions of companies attempting to
innovate on their own = lost opportunity to improve the lives of billions of end users.
Collaboration with your customers on their costs and services and with your
vendors across all spend categories will change the nature of how transportation
companies acquire products and sell services, outsource, and how they drive value
creation across the entire value chain. Several trends are redefining the game:
Business connectivity at scale
When transportation companies, small and large, are connected in a critical mass, the
transactional platform becomes the de facto standard. This is already a reality (examples: Ariba,
Concur, Alibaba).
B2B collaboration by category
Acquiring equipment, repair items, services, or managing expenses requires a set of open
standards and a different community of suppliers. Those standards are now set and operational.
User experience
Without a better user experience at work (examples: Amazon, Travelocity, Google), employees will
work around the system, negating the value of negotiated contracts and driving maverick
spending.
Network of networks
Transportation companies are looking at end-to-end services like digital payment and invoice
processing, supplier certification, global business yellow-pages, etc. This is all possible as business
networks like Ariba are aggregating the services into a one-stop shop.
Savings over £80
million
Using SAP Ariba solutions,
British Airways processes 80
% of purchases electronically,
thus reducing transaction
costs by 40%, suppliers from
14,000 to 2,000, and inventory
by over £200 million27
80%
Spend managed with
automated processes to drive
contract spending and
compliance28
50%
Highly networked enterprises
are 50% more likely to
experience market share gains
and higher profit margins than
their un-networked peers29
50–75%
Faster transaction cycles are
being achieved with the Ariba
Network30
Simplify supplier collaboration with SAP Business Networks
SAP S/4HANA gives you incredible capabilities to digitize processes across your business – and the connectivity to the business
network allows you to extend those processes beyond the four walls of your organization.
• Solution already at scale and covers all spend categories (direct and indirect material, labor and services, travel and expenses)
• Business networks operate on a global basis, meet data security standards, and operate with near-zero downtime
• Extensive offering by leveraging services from and to many partners such as supply chain, financing, payment, rate and service
negotiations, supplier certification, etc.
Manage expenses
Direct and indirect material
- 19 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
Labor and services
ASSETS AND THE INTERNET OF THINGS
The most dramatic change in the digital economy will be driven by hyperconnectivity and Big
Data science. These will transform nearly every transportation company business model.
~4 billion
The transportation industry understands the potential of the interlock between
physical and digital assets along with the Internet of Things. Their use will continue
to grow. Below are some key trends:
Mobile Internet users and
an expected 30 billion
connected devices by
202031, 32, 33
Smart products drive new business models
Suppliers are embedding sensors in their products and processes. As a result, they are becoming
technology companies that rethink the value delivered by their products and that hire hardware
and software engineers to implement their ideas.
80%
Of companies that invested
in IoT increased revenues34
Data-driven business models
As technology advances, companies that focus on the creation, organization, and access to data
have grown to be an integral part of the transportation ecosystem. Example – Descartes is a
logistics technology company whose core mission is to be a messaging solutions provider enabling
their network of over 220,000 connected parties and their people and technologies to access data
and execute better.
Technology-driven customer engagement and engineering
Operations is spending more and more on Big Data and sensor technologies as operational
execution is the most transformed by these new technologies.
New alliances
Seamless collaboration is now possible around new business models involving partnerships that
may not have made sense few years back. Examples include partnerships between transportation
companies and satellite/weather companies, between Google and appliance makers, between
transportation and OEM suppliers, and many others.
Trenitalia
“For the railway sector, the
most innovative aspect of
IoT is the large number of
sensors on board a train.
The sensors record many
different parameters like
temperatures and
pressures. The data is
processed by SAP HANA
and the system then
provides the rules to define
the required maintenance
actions” 4
Connect, transform, and reimagine with SAP
With SAP HANA platform, Internet of Things (IoT) edition, organizations can now take embedded device data, analyze this data into
information in real time, and apply this information across the value chain to drive business insights and create new business models.
The Internet of Things platform provides extensive connectivity to OT systems by integrating with industry de facto software from
vendors such as OSIsoft. The data is stored and processed in the platform, which provides basic functions like data services (such as
operations on time series), predictive analytics, and others. Applications are developed by SAP, partners, and customers and enable
use cases like load forecasting or transformer analytics.
$
Order visibility
Fleet insights
Network health
Hub operations
orchestration
SAP HANA Platform, Internet of Things edition
Analytics tools
Content: rules, standards, algorithms, data model
Data services / events
Device / sensor data
IoT Connectors
- 20 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
Further use
cases…
.
SAP HANA PLATFORM – A NEW COMPUTING PARADIGM
SAP HANA is the ultimate simplifier and the platform for innovation and digital business
Dream, develop, and deliver with SAP HANA Cloud Platform
SAP HANA Cloud Platform gives transportation companies the mobile,
collaboration, integration, and analytics capabilities you need to dream big,
develop fast, and deliver everywhere, with the following capabilities:
ARI
Application extensions
Extend your current cloud and on-premise solutions for additional customization, enhanced
business flows, and more.
uses SAP’s analytics solutions on
SAP HANA to unlock the value of
managing the entire lifecycle and
operation of its customers’ fleets –
“The value we can now deliver to our
customers is immeasurable.”35
Covenant Transportation
Group Inc.
Real-time analytics
Engage your customers, determine profitable contribution ratios, optimize business
processes, and unleash new revenues with real-time analytics apps, powered by SAP
HANA.
New cloud apps
Quickly build innovative consumer-grade and industry apps for today’s always-on, mobile,
social, and data-driven world.
uses the predictive capabilities of
the SAP HANA platform. “With the
predictive modeling and data
visualization of our SAP solution,
we’re reducing employee attrition
in an industry with an annual
turnover rate of over 100%.”36
Extended storage capabilities
Holistically manage all structured, unstructured, and infinite data streams with flexible
combinations of data stream processing, in-memory technology, disk-based columnar
storage, and Hadoop-based storage solutions.
Data footprint reduction
Significantly reduce memory footprint and TCO. In ERP systems, we have seen ~6x
reduction by SAP HANA's dictionary compression. Removing aggregates and actual and
historical data separation further reduces the footprint up to ~10x.
The SAP HANA platform is…
Real-time, in-memory platform • 10x data footprint reduction for ERP • Extended storage, including Hadoop • Open architecture •
Developer-friendly • Embeds mobile and analytics • Secure • Cloud-ready
New apps and services
NEW APPS
EXTENSION
INTEGRATION
Open programming containers
(Java, XS2)
UX
(Mobile/SAP Fiori)
Analytics
(SAP Lumira)
Platform
Integration
(SAP HANA Cloud
Integration)
Security
(Single sign-on,
Identify)
SAP HANA
Data platform
(SAP HANA DB, SAP ASE)
Libraries
(graph, predictive)
IoT
Big Data
(Hadoop, Spark)
Infrastructure delivery
Infrastructure
SAP data centers
Partner data centers Customer data centers
- 21 -
SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
Elastic deployment
HOW DOES IT ALL COME TOGETHER? – PORT OF HAMBURG
Each of the five digital business pillars delivers individual business value, but next-generation business processes will
span multiple pillars to drive efficiency internally and across the logistics network, connecting to devices, and
improve transportation performance. Here is a live use case that takes sensors in transportation to the next level.
USE SENSOR DATA TO ORCHESTRATE ORDERS AND ASSETS
Supplier collaboration
Business networks
6
2
Evaluate
contract and
profitability
impact
3PL warehouse
prepares
4
shipment
Ports optimize
Contracts go to
resources to
schedules then
load
3
to bookings
shipment
7 Connect to
Pre-booking,
logistics
handling and
network
rate selection
partners
1
5
Disruption
detected
9 Freight
agreement and
accounting
recalculations
Customer experience
11
10
Accurate and
current
customer
billing
On time
delivery
Assets and
Internet of Things
8
Change order
handling
Digital core
Time
In the course of a day, change is the constant. The digital core is
intuitively designed to automate business processes, allowing
you to focus on the exceptions. Using sensor data is a stepchange that enables detection and resolution – in other words,
providing better information and in some cases, automating the
exception resolution.
The Hamburg Port Authority (HPA) needed to increase
capacity by 2x but did not have room for expansion. With 121
million tons of goods being moved at Hamburg port per year
and 33,000 trucks running per day, optimizing operations is
the strategy to increase the volume of transported goods.
Specifically, they focused on improving responsiveness to
operational variations to improve fluidity in and out of the port.
The diagram above illustrates the complex activities associated
with logistics and how the IoT is playing a role in simplifying the
process. The normal operations of establishing contracts,
managing the bookings, communicating with the carriers,
fulfilling the orders, paying the bills, invoicing your customers,
and determining profitability are core business activities. When
there is a disruption to a shipment, such as the customer
changes the order or an operational issues such as the
schedule changes, equipment or labor shortages, congestion,
or even weather:
• Sensor technology is used to first detect those challenges –
knowing something is not going according to plan sooner
save significant expense
• SAP solutions evaluate and provide alternative actions to
mitigate the issue – real-time decision support tools are
essential into today’s fast-moving environment
• Automation and/or individuals execute the resolution to
ensure fluidity in your business – you control how actions are
managed. Your customers will receive orders on time with
updated and accurate invoices, your carriers will have
complete transparency to expectations, and your company
will have minimized the impact of the unexpected.
To improve fluidity, HPA uses SAP’s in-memory technology,
SAP HANA, to monitor and respond to traffic flow of
transportation orders. The digital business scenario diagram
illustrates the order lifecycle. Every potential delay and
interruption in service schedules can be either prevented or
proactively managed, delivering a very efficient, on-time
shipment, where any sign of exceptions to the plan have been
immediately addressed. Key to enabling this are sensors
monitoring traffic activity, communications with logistics
partners via a logistics business network, and real-time
analytical processing using SAP HANA. For more information,
please follow the link on page 31.37
The SAP Networked Logistics Hub application demonstrates
there are significant efficiency gains to be realized in the
modern transportation process. In this example, decision
makers do not have to waste time and money interrogating
information from multiple systems. The decision support tools
lead the user(s) through a logical decision process,
automatically providing contextual information along the way,
such as the status of transportation assets, ports activity,
traffic alerts, or customs documentation.
- 22 -
SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
HOW TO START
THE TRANSPORTATION JOURNEY
IN THE DIGITAL WORLD BEGINS
WITH A CAPABILITY ANALYSIS
THAT RESULTS IN THE
TRANSFORMATION AGENDA
- 23 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
HOW TO START
TRANSPORTATION INDUSTRY JOURNEY IN THE DIGITAL WORLD
The journey to define future business models capitalizing on transportation in the digital world involves all
disciplines of a modern transportation operation and requires a systematic approach to identify and capture
business opportunities.
THE COLLABORATIVE VALUE AND INNOVATION FRAMEWORK
Transportation companies embarking on the transformation journey to the digital business typically start to reimagine
their business with a focus on business outcomes and customers. Answering the key questions, “What role will we play in
the value chain?” and, “How will we make money?” will provide direction for reimagining your business processes and
operational model.
For innovation today, a new level of collaboration is required. As a result, we have developed a framework that will be a
continuous and holistic partnership model designed to drive true collaboration and engagement. Outlined below are the
five steps of SAP’s collaborative value and innovation framework:
1. Strategy alignment: Understand company and SAP
strategic direction and identify initiatives
1
STRATEGY ALIGNMENT
2.Opportunity assessment: Opportunity deep-dive
based on strategic initiatives and prioritization based
on value
3.Solution road map and ROI: Document end-state
solution, and business case including benefits, TCO,
ROI, and strategic road map
5
4.Value realization: Deliver transformation on time,
on budget, and on value
GOVERNANCE
4
2
VALUE REALIZATION
OPPORTUNITY
ASSESSMENT
5.Governance: Maximize investments and accelerate
value creation with governance based on executive
engagement, value delivery, and continuous
innovation
3
SOLUTION ROAD MAP
AND ROI
- 24 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
WHY SAP?
SAP ENABLES THE DIGITAL
TRANSFORMATION WITH THE
DIGITAL CORE, BUSINESS
NETWORKS, SUPPLY CHAINS,
AND THE INTERNET OF THINGS
- 25 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
CREATE COMPETITIVE ADVANTAGE THROUGH INNOVATION
Customer
Experience Omnichannel
Supplier collaboration
Business networks
Digital core
SAP Cloud for Customer
Workforce
engagement
IoT &
big data
SAP Fiori
SAP HANA
Cloud Platform
SAP will bring simplification, innovation, and acceleration required to support the development of your digital business strategy. These
capabilities will be leveraged throughout SAP’s collaborative value and innovation framework.
World-class user experience
People-to-people collaboration
Industry capabilities
Customercentricity
Core
operations
Risk and finance
management
SAP HANA
Marketplace
Partner
collaboration
Public
cloud
Line-of-business solutions
Finance
HR
Procurement
IT
Partners | ISVs | Startups
Private
managed
cloud
Business-to-business collaboration
Create and
build
SIMPLIFY
Store and
aggregate
Simplify transaction processing, account
management, and customer service while
enhancing transportation operations.
 Deliver superior customer service and
connect to customers via single view
enabled by the SAP HANA platform
 Provide simplified and intuitive insight
to customer usage profiles, anytime
and anywhere
 Give customers a smooth omnichannel experience across channels
such as Internet, telephone, e-mail,
Web chat, and social media
 Provide agility with SAP HANA
Enterprise Cloud. Get fast access to the
latest SAP innovations, allowing for
faster response to business needs
Orchestrate and govern
Powered by SAP HANA
INNOVATE
Analyze
and predict
Use SAP HANA Cloud Platform to enable
transportation organizations, suppliers,
and customers to connect and
collaborate.
 Connect mobile users to enterprise data
on customers and services, giving
access to the information they need to
better manage their services
 Process and optimize data on
customers and assets across all
operating units and legal entities
with SAP HANA in the cloud
 Adopt and apply analytics solutions
through the cloud to enhance visibility
into consumption and transportation
demand
- 26 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
Go mobile
and secure
On premise
ACCELERATE
Predict and respond to opportunities and
risks with predictive analytics solutions
powered by SAP HANA.
 Address unplanned asset downtimes
more quickly
 Take new products and services to
market more quickly and respond to
customers on the platforms they prefer
 Balance transportation demand and
supply with predictive modeling and
accurate and timely analytics using
SAP HANA
 Accelerate initial deployment of your
SAP HANA and SAP S/4HANA projects
with SAP HANA Enterprise Cloud
SAP GLOBAL SERVICES AND SUPPORT TO DRIVE YOUR SUCCESS
In the digital economy, simplification and business innovation
matter more than ever. SAP has a broad range of services to
cover the end-to-end digital transformation journey, ranging
from advising on a digital innovation road map and plan, to
implementing with proven best practices, to the ability to run
across all deployment models, and ultimately optimize for
continuous innovation across your digital journey. SAP
provides both choice and value within our services, allowing you
to tailor the proper approach based on your needs.
SAP Activate is a new, simplified consumption experience
introduced for SAP S/4HANA and cloud adoption. It provides a
combination of SAP Best Practices, methodology, and guided
configuration. In addition, we provide leadership in learning to
drive quick time to value realization and a solid engagement
foundation with SAP MaxAttention, SAP ActiveEmbedded, and
SAP Value Partnership across the end-to-end customer
lifecycle.
SAP HANA Enterprise Cloud is the optimal springboard to the
cloud for customers. It offers an attractive option for
organizations that are eager to leverage SAP’s latest
innovations such as SAP S/4HANA, with the peace of mind that
SAP is in the driver’s seat.
Turn to the 30,000 consultants and support professionals who
can bring your digital strategy to life. SAP’s global service and
support model provides a consistent experience – on premise,
cloud, or hybrid. SAP’s global service and support provide the
expertise, assets, and the proven methodologies required to
accelerate business innovation, reduce TCO, and run a stable
platform (on premise or in the cloud).
SAP global service and support provide the expertise, assets, and proven methodologies
required to accelerate business innovation, reduce TCO, and run a stable platform
(on premise, in the cloud, and hybrid)
OPTIMIZE
for continuous innovation
RUN
all deployment models
Run with one global support
• One global, consistent
experience
• End-to-end support –on
premise, cloud, hybrid
IMPLEMENT
with proven best practices
ADVISE
Simplify and innovate
• Digital innovation road map
and plan
• Co-innovation by industry
Optimize to realize value
• Continuously capture and
realize benefits of digital
transformation
Implement with SAP Activate
• Simplified consumption
experience for SAP
S/4HANA
• SAP Best Practices,
methodology, and guided
configuration
Learn | Extend / Innovate | Engagement Foundation | Support
- 27 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
SAP COMPREHENSIVE ECOSYSTEM
Orchestrating the world to deliver faster value
Our comprehensive ecosystem for Transportation offers
integration into:
• A wide range of business services (OEM suppliers,
banks, key vendors)
• Special technology services for Transportation with
focus on IT/OT convergence, geospatial integration,
Transportation asset health management, etc.
• Open architecture: choice of hardware and software
• Complementary and innovative third-party solutions
• Reach – partners to serve your business of any size,
anywhere in the world
• Forum for influence and knowledge
• Large skill sets
Our partner ecosystem includes, among others:
BUSINESS NETWORK
• 2.2 million suppliers
• 200 major travel partners (air, hotel, car)
• 50K service and contingent labor providers
IMPLEMENTATION
SERVICES
INFLUENCE FORUMS AND EDUCATION
• 32 user groups across all regions
• 300 + Transportation Partner
companies
• Cargo Transportation specific
industry councils
• SAP community >24 million unique
visitors per year
• 2,650 SAP University Alliances
• 3,200 service partners
DRIVING
CUSTOMER
VALUE
PLATFORM AND
INFRASTRUCTURE
INNOVATION
• 1,900+ OEM solution partners
to extend SAP solutions
• 3,750 startups developing
SAP HANA apps
• Delivering 1,300+ industry
specific solutions
• 1,400 cloud partners
• 1,500+ platform partners
CHANNEL AND SME
• 800+ Transportation channel partners
• 4,800 overall channel partners
- 28 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
AUTHORS
Outlined below are major contributors to this white paper.
Kevin Schock
Global Head of Solution Management
Transportation & Logistics
Dallas, TX, USA
[email protected]
Kevin Schock heads the unit responsible for the SAP solutions
strategy and direction for the transportation and logistics
industries at SAP. He leads a highly-experienced team
responsible for the company’s overall industry sectors
strategies, oversees the global business, directs product and
solution road maps, and leads go-to-market activities. Kevin
has over 28 years of experience, primarily in the transportation
industry in business and technology leadership roles.
Tim Motter
Senior Solutions Manager
Transportation Industry
Denver, CO, USA
[email protected]
Tim Motter has been with SAP 17 years and is a senior solution
manager in the travel and transportation business unit. He has
over 25 years of supply chain, logistics management and
transportation as well as experience across multiple industries.
Tim helps companies with their vision to have world-class
business processes and deliver the greatest value through SAP
solutions.
Bob Leeds
VP Industry Cloud Marketing
Travel and Transportation
Philadelphia, PA, USA
[email protected]
Robert Leeds has been with SAP for four years and has over 16
years of business development and marketing experience with
supply chain and logistics software solutions. Prior to SAP, he
held a variety of positions across logistics operations,
warehouse operations, field service, and inventory
management and planning. Robert’s goal is to help customers
see SAP’s solutions from their industry’s perspective.
- 29 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
ADDITIONAL RESOURCES
Outlined below is additional external research that was used as supporting material for this white paper.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
“The world’s middle class will number 5 billion by
2030”, Quartz, January 2013
http://qz.com/43411/the-worlds-middle-classwill-number-5-billion-by-2030/
“An emerging middle class”, Mario Pezzini
Director, OECD Development Centre, Observer
http://www.oecdobserver.org/news/fullstory.php
/aid/3681/An_emerging_middle_class.html
“Asian Affluence: The Emerging 21st Century
Middle Class”, Morgan Stanley Smith Barney, June
2011 (Page 2)
http://www.morganstanleyfa.com/public/projectf
iles/35257b34-b160-45e4-980d8bca327db92b.pdf
Danilo Gismondi, CIO SAP Success video,
“Trenitalia: Creating a Dynamic Maintenance
Management System Powered by SAP HANA”
(2:22) http://www.sap.com/asset/detail.2015-12dec.trenitalia-creating-a-dynamic-maintenancemanagement-system-powered-by-sap-hana-ctvmp4.html,
“Logistics Trend Radar”, DHL Trend Research,
2014 (Page 3)
http://www.dhl.com/content/dam/downloads/g
0/about_us/logistics_insights/DHL_LogisticsTrendRadar_2014.pdf
The 4 Things It Takes to Succeed in the Digital
Economy, Harvard Business Review, March 24,
2016. https://hbr.org/2016/03/the-4-things-ittakes-to-succeed-in-the-digitaleconomy?cm_sp=Article-_-Links-_-Comment
“Amazon Is Leasing 20 Boeing Planes to Create an
Air Cargo Network”, Fortune, March 2016
http://fortune.com/2016/03/09/amazonboeing-jets/
“Transport in the Digital Age”, GG (Warwick
Goodall, Deloitte, March, 2015 (Page 9)
http://www2.deloitte.com/content/dam/Deloitte
/tr/Documents/public-sector/transport-digitalage.pdf
“2015 State of Logistics LTL: Managing capacity
key to profitability”, by John D. Schulz, Logistics
Management, July 01, 2015
http://www.logisticsmgmt.com/article/2015_stat
e_of_logistics_ltl_managing_capacity_key_to_profi
tability
“Global Trade: International freight transport to
quadruple by 2050”, International Transport
Forum, January 27, 2015 http://www.itfoecd.org/global-trade-international-freighttransport-quadruple-2050
Impacts of Driver Shortage Detailed by ATA Chief
Economist”, American Trucking Associations
(ATA) October 22, 2013
http://www.truckline.com/article.aspx?uid=0c98
b069-cb00-457d-84b4-75a3c0ebaf3b
“Volume of global goods trade set to nearly double
by 2030”, PwC Press Room, October 2014
http://press.pwc.com/News-releases/volume-ofglobal-goods-trade-set-to-nearly-double-by2030/s/89fc2c50-a599-4040-831d9a9385629f00
“Empty containers cost Maersk Line USD 1 billion a
year”, Shipping Watch, June 2016
http://shippingwatch.com/articles/article489190
9.ece
World Economic Forum Whitepaper from January
2016
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
http://reports.weforum.org/digitaltransformation-of-industries/wpcontent/blogs.dir/94/mp/files/pages/files/wefdti-logisticswhitepaper-final-january-2016.pdf
“In trucking, a little automation saves a lot of
money”, Fortune, May 2015
http://fortune.com/2015/05/19/truckingautomation/?iid=sr-link4
ASUG Member: Canadian National Railway On
Successes, Challenges of Integrating SAP and
Fieldglass. Post Date: June 17, 2016
http://www.asugnews.com/article/fieldglass-sapintegration-customer-story-canadian-national-cn
“Google Glass used in vision picking, scanning and
paper work for DHL logistics services, International
Business Times, August 2015
http://www.ibtimes.com.au/google-glass-usedvision-picking-scanning-paper-work-dhl-logisticsservices-1460827
Michael Rutherford, AVP Industrial Products, CSX
Transportation’, “SAP Showcases Big Data
Solutions Leveraging the SAP HANA Platform:”
October 16, 2014 http://news.sap.com/sapshowcases-big-data-solutions-leveraging-saphana/
“2016 commercial transportation trends”, PWC.
http://www.strategyand.pwc.com/perspectives/2
016-commercial-transportation-trends
“UPS Tests a 3D Printing Service”, Wall Street
Journal, September 18, 2015
http://www.wsj.com/articles/ups-tests-a-3-dprinting-service-1442618648
86% of Customers Pay More For Better Customer
Experience, Win the Customer, March 27, 2012
http://winthecustomer.com/86-percent-of-u-sadults-will-pay-more-for-a-better-customerexperience/
“The Digital Evolution in B2B Marketing” Customer
Executive Board
https://www.cebglobal.com/marketingcommunications/digital-evolution.html
“Millennials at work, Reshaping the workplace”
PwC, 2011,
https://www.pwc.com/en_M1/m1/services/cons
ulting/documents/millennials-at-work.pdf
“The Changing Landscape of the Flexible
Workforce – And Why Procurement Should Care,”
San Francisco Bay Area SIG Symposium,
November 12, 2014
http://sig.org/docs2/The_Changing_Landscape_
of_the_Flexible_Workforce__And_Why_Procurement_Should_Care__Fieldglass.pdf
“Workforce 2020: The Leadership Cliff” Oxford
Economics, 2014
http://www.oxfordeconomics.com/infographics/t
he-leadership-cliff
SAP Customer Success Story – Metropolitan
Utilities District, 2015, pg. 35
https://www.successfactors.com/content/dam/s
uccessfactors/en_us/resources/casestudies/loud-in-the-cloud-recruiting.pdf
SAP Success story, British Airways, 2014,
http://www.ariba.com/download/3240/4584/Bri
tish-Airways.pdf
Source: SAP Benchmarking - SAP Solution
Summary Sourcing and Procurement
http://www.sap.com/bin/sapcom/en_us/downlo
- 30 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
29.
30.
31.
32.
33.
34.
35.
36.
37.
adasset.2015-07-jul-30-16.strategic-sourcing-andsupplier-management-a-sourcing-andprocurement-solution-pdf.bypassReg.html
“The Rise of the Networked Enterprise: Web 2.0
Finds its Payday,” McKinsey&Company, December
2010
http://www.mckinsey.com/insights/high_tech_tel
ecoms_internet/the_rise_of_the_networked_enter
prise_web_20_finds_its_payday
Building the Networked Business of the Future,
SAP Insider, April 2015
http://sapinsider.wispubs.com/Assets/Articles/2
015/April/SPI-building-the-networked-businessof-the-future
“Half of World’s Population connected to The
Mobile Internet by 2020” GSMA release
November 6, 2014
http://www.gsma.com/newsroom/pressrelease/half-worlds-population-connected-mobileinternet-2020-according-gsma/
“Seize New IoT Opportunities with the Cisco IoT
System” Cisco,
http://aptantech.com/2016/06/there-will-be-4-1billion-internet-users-globally-by-2020-cisco-vniforecast/#.V6Hb7Xlf2Uk
“EMC World 2015: '30 billion connected devices by
2020” , ITPro, 2015,
http://www.itpro.co.uk/storage/24560/emcworld-2015-30-billion-connected-devices-by-2020
(Soundbite is from EMC)
“Over 80% of Companies Increased Revenue by
Investing in Internet of Things: TCS Study,” Tata
Consultancy Services press release, July 22, 2015
http://www.tcs.com/news_events/press_release
s/Pages/Internet-of-Things-TCS-Global-TrendStudy-2015.aspx
Bob White, Senior Vice President, Client and Fleet
Services, SAP Customer Success Story, ARI Fleet
Management Drives Real-Time Analytics to
Customers, April 2013
http://sapinsider.wispubs.com/Assets/CaseStudies/2013/April/ARI-Fleet-ManagementDrives-Real-Time-Analytics-To-Customers
Chris Orban, VP Advanced Analytics, SAP
Customer Success Story, Covenant
Transportation Group: Reducing Driver Turnover
and Building a Safer Workforce with SAP®
Predictive Analytics, 2016
http://a248.g.akamai.net/n/248/420835/657e2
ed7724b5cd31ad0cc3b3f0cd359bef4b394ce0b21
941c60cc709a9ef7ff/sapasset.download.akamai.c
om/420835/sapcom/docs/2016/01/d865e0c25b7c-0010-82c7-eda71af511fa.pdf
“Simpler connections at Germany’s largest
seaport” SAP story,
http://www.sap.com/customertestimonials/transportation-logistics/hamburgport-authority.html
Note: All sources sited as “SAP” or “SAP
benchmarking” are based on our research with
customers through our benchmarking program and/or
other direct interactions with customers
Note: Some images used under license from
Shutterstock.com
Note: Logos contained in this document are used with
the permission of SAP's partners.
COMMENTS AND NOTES
- 31 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved
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- 32 SAP Digital Transportation Whitepaper (08/16) © 2016 SAP SE. All rights reserved