Note to readers. A more updated version of this article will be kept here…
http://www.scmfocus.com/fourthpartylogistics/2009/06/sap-design-for-3pl-and-4pl/
SAP SCM
The SAP SCM suite has a number of modules that provide functionality for advanced planning and execution. This suite has many installations in finished goods manufacturers. SAP has made a number of enhancements in the past several years which address the transportation, warehousing and supply chain monitoring areas of the suite that have been marketed to the traditional SAP SCM base (finished goods manufacturers). However, different areas of the suite can be installed at different companies, and very few if any companies install the entire suite. The transportation, warehousing and supply chain monitoring areas of the suite, while previously lagging the manufacturing and demand planning areas of the suite are now up to the point that they can be considered by at least 3PLs. (There are extremely few 4PLs currently) A combination of the following modules would be appropriate for a 3PL.
TPVS – Transportation Planning and Vehicle Scheduling
EWM – Extended Warehouse Management
EM – Event Management
Trade-Offs
SAP is expensive to implement and complex. However, it has the advantage of being consistent with the the software that many finished goods manufacturers have or are currently implementing. A 3PL that had a operational implementation of TPVS-EWM-EM, would be very attractive to companies which were running either SAP ERP, but especially the other modules of SAP SCM such as DP, SNP and GATP. This is because it would allow for easier integration (both technical and terminology and operating philosophy) between the finished goods manufacturer and 3PL systems.
To find out more about TPVS, EWM and EM see our articles below.
TPVS
http://sapplanning.wordpress.com/2008/01/05/tpvs-transportation-planning-and-vehicle-scheduling/
EMW
http://sapplanning.wordpress.com/2008/05/30/extended-warehouse-management/
EM
http://sapplanning.wordpress.com/2009/05/22/event-management/
