Distribution Centers as Profit Centers: SAP and the Future of Logistics Execution Software


The Future of Logistics


Logistics Execution (LE) software is all about access to real-time information in real-world environments. When a warehouse worker scans a barcode or a storm slows down a shipment, the right people need to know, right away. SAP has developed a suite of integrated software that promises to meet these demands, and change the future of LE in the process. This suite includes two distinct but highly integrated bundles: SAP Supply Chain Management (SAP SCM) and SAP Supply Chain Execution (SAP SCE).

SAP SCM contains all the functionality needed for logistics planning, forecasting and scheduling, while SAP SCE equips the enterprise with functionality around extended warehouse management and transportation management, including event management and global trade management for customs and international shipping.
SAP SCM and SAP SCE will make virtually all areas of supply chain management and execution more efficient, which will in turn move distribution centers away from cost centers and establish them as profit centers.

How, exactly, will this be accomplished? By giving enterprises unprecedented visibility into supply-chain activities. For instance, a worker can take an order via ERP and then seamlessly transition to SAP SCE’s extended warehouse management to view information related to picking and packing, before moving to the transportation management module for warehousing and check-ins. After warehouse personnel print the relevant documents and the shipment leaves, the worker inside SAP SCE can monitor the entire supply chain. Later, when carrier invoices arrive, the worker can verify all the information and eliminate errors, saving money.

Other supply-chain mistakes can likewise be spotted and corrected. The distribution center is the last component in the value chain before the customer receives goods, so what happens there is very important. Shipping or receiving the wrong products or the wrong quantities costs money, as do delayed shipments. For the last several years SAP has worked on a solution for these problems, and the result is SAP SCM and SAP SCE.

At itelligence, we have the capability to deliver this powerful software to our clients via a rapid deployment solution (RDS). As one of the few SAP partners with the necessary certifications and qualifications, we can prepack and preconfigure the SAP SCM and SAP SCE solutions based on the specific needs of an organization. The software is ready to go out of the box, which dramatically cuts down on implementation times, as well as costs. Ultimately, our RDS abilities create both quicker ROI and long-term profitability for the distribution center.

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