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Why SAP for Asset Intensive Industries

Assets lock up huge capital in asset intensive industries like Ports & Terminals, Logistics, Mining, Power, Telecom etc.  Assets include cranes, trucks, furnaces, transformers, communication towers, cables and more.

Unplanned and reactive maintenance caused by break-downs increases costs, employee stress and hurt organization’s reputation in customer’s mind.

Any cost saved in capital assets, due to use of better utilization of existing assets directly increases profit. So is any cost saved in maintaining assets.

Multiple assets work in synchronized fashion to generate throughput. Unplanned downtime in any one asset affects total throughput. Planning asset performance,  MRO# Inventory and human skills is a complex process.

Any asset intensive industry deserves capable asset management software, well mapped business processes and a well trained team.

Why one Single IT Platform for The Organization ?

As depicted in below diagram, all asset management processes have impact in other key areas like Finance, Materials, Procurement, Payroll etc.

Asset management sap

Why Not a Standalone Asset Management System ?

Standalone Asset Management Systems fail miserably because of :-

  • Huge integration requirement with other systems
  • Master data harmonization and synchronization efforts
  • More diverse skills requirement due to multiple technologies
  • Additional upgrade efforts due to multiple applications
  • Sub-optimal license uses
  • More hardware requirement
  • Higher IT maintenance cost
  • Higher training costs

It is expensive, risky and frustrating to have bunch of systems, try to integrate those to weave a one single solution.

Why SAP ?

From leading Fortune 500 organizations to small organization with vision trust SAP for their business areas. SAP is the de-facto leader in Enterprise Applications areas for last 40 years. With rapid addition of functionality and technology, excellent ecosystem including fabulous support,  SAP is increasing this lead.

Besides strong EAM functionality, SAP brings in-depth functionality and exciting roadmap for every aspect of organization. This includes, Finance, Costing, Materials Management, Procurement, HR, Payroll, Analytic, Service & Support and more.

By choosing SAP, organization avoids unconnected and unaligned set of applications. SAP offers screen simplification and personalization for easy acceptance by users. SAP can be implemented in phases as per organization priorities.

In summary, SAP provides One Single Solid Platform for Whole Organization!

Why SAP for Enterprise Asset Management ?

Below diagram shows End to End coverage of business processes for SAP Enterprise Asset Management (EAM)

SAP asset management

Following are some of the strengths of SAP EAM,

  • One organization, One Platform !
  • Simply unmatched depth in EAM functionality
  • Avoids information islands
  • Minimal integration risks and costs
  • Economies of scale (Licenses, Services)
  • Economies of skills (Skills, Trainings, Employee Portability)
  • Solid platform for Master Data Management Initiatives
  • World’s leading mobile field service functionality with Syclo Works Manager
  • Ready integration with world class SAP Analytic for real time visibility

SAP EAM contains the key Maintenance Planning and Scheduling functionalities to support successful asset or equipment maintenance.

Why Envecon ?

Selecting powerful application is just half the job. Success needs service partner, who understands pain areas, processes and best practices in asset intensive industries.  Also service partner should have intimate functional and technical knowledge of SAP.

Envecon, with it’s immense global domain experience, End-to-End SAP capabilities and solid Project and Change Management experience is very well placed to deliver full benefits to your organization.

Envecon has ready SAP EAM Template as an accelerator. Template also  includes Analytics and Mobile workforce management functionality. This enables quick implementation, predictable duration and optimized cost.

Envecon’s ready SAP template for Asset Intensive industries helps organizations for faster ROI and predictable outcomes.

Summary :

Building makeshift enterprise solution using multiple unconnected and disparate applications is extremely risky and costly for organization. Organization need one solid platform which offer end to end Best-in-Class functionality.  SAP is a natural and only choice in this regards.

Implementing SAP needs experienced hands. With its global experience, intimate domain knowledge, SAP expertise, Envecon is well suited for successful delivery and adaptation of SAP based solution.

Envecon has SAP Global Template for asset heavy industries. Global Template makes sure that a proven solution is quickly adjusted to specific business requirement. It reduces project duration and costs.  It makes things predictable and smooth.

Fuel Cost Optimization with SAP Fleet Management

Fuel managemnet sap

Fuel cost is a major cost in any asset intensive industry. A lack of cohesive Fuel Management squeezes business profitability and increases maintenance cost. SAP is capable of  covering all major business scenarios in Fuel Management resulting in higher profitability.

Disorganized fuel management results in following pain areas,

  • Uncertainty of available stock with risk of stock-out
  • No real time view of the inventory with high working capital locked up
  • Manual data entries prone to error and manipulation
  • More manpower efforts & costs
  • Inaccurate vehicle wise consumption data
  • Increased cost of fleet operations and maintenance
  • Reduced visibility of fleet operations

Solutions from SAP Fuel management with core integration to other key modules like Finance, Procurement with exhaustive Business functionalities to cope up will remove all pain areas.

In one of the recent SAP implementation for terminal, Envecon implemented SAP Enterprise Asset Management (EAM) and Fleet Management. In terms of Assets,Terminal had large fleet of Reach Stacker, Empty Handlers and Rubber Tyre Gantry (RTGs),Trucks to be managed efficiently.

Why SAP?

SAP is one solid platform for whole organization.  SAP has in-depth functionality in each of area to take care of any business requirement like,

  • Enterprise Asset Management(EAM) capabilities with Add-on functionalities
  • Storing integration capabilities e.g. RFID and Mobile Device Tracking for Fuel Consumption & Refilling of fuel
  • Easy to use personalizable screens
  • In-depth fleet management functionality
  • Seamless integration to finance, materials management, procurement etc.
  • World class mobility solutions like Syclo Works Manager
  • Exhaustive ready reports covering MIS aspects

Client was looking for Managing Fuel consumption with optimized inventory with detailed tracking/reporting for each fleet. Envecon successfully streamlined the Business processes with the functionalities in SAP. Some Key Areas client needed attention were,

  • Higher Fuel cost ,
  • Inaccurate demand
  • No Fuel consumption monitoring
  • Increased cost of operations
  • Inadequate visibility on fleet operations

Envecon Contribution:

Below are the Envecon key contributions:

  • Efficiently managed processes for buying fuels considering Buffer stock, Minimum/Maximum quantity to order depending on consumption pattern.
  • Stock Projection/Stock (Fine-Tune Inventory Insight) Management.
  • Measurement counters and integration with RFid’s at Fuel stations for Mileage/consumption analysis,
  • Route configuration for cost optimization for redundant trips and to avoid unnecessary wear and tear for equipment’s.
  • Integration to RFid’s and integration with all Base modules e.g. FICO, MM
  • Pre-defined Auto Refilling with RFid tag for all equipment’s
  • Comprehensive reports including Trip sheet, Mileage, Vehicle operating cost, Consumption Analysis.

Benefits:

Following are some of the Benefits realized after Implementing above solutions:

  • Equipment level consumption analysis,
  • Improved Operational Efficiency,
  • Minimize Reconciliation work by accessing integrated information and real-time reporting
  • Reduced fuel costs
  • Reduced cost of fleet operations and maintenance
  • Centralized monitoring of fleet operations with Improved visibility

Summary:

Fuel is a major cost in any asset intensive industry. It locks up sizable working capital and requires manpower to manage. Automating and integrating the full process have many benefits.

SAP has strong Fleet management capabilities coupled with inventory management, procurement, finance and integration. Automating and integrating full process surely provides visibility, savings and efficiency.

Implementing  SAP fleet management with implementation partner who understands your domain will result in substantial savings, reduced pollution and increased usable life for the fleet.

Reduce Procurement Cost with SAP-Supplier Relationship Management

In today’s economy, companies need to do more with less and do it faster and more efficiently than ever before.Procurement executives always face daunting challenges like,

  • Standardised and streamlined practises for procurement of goods and services
  • How to reduce procurement costs by closing the loop from source to pay?
  • How to automate operational processes to increase efficiencies?
  • Has our department got greater visibility into supplier relationships and performance?
  • What are the different ways to boost procurement processing and cycle times?
  • Can we minimize paper-based transaction and realized saving from spot sourcing?

SAP Supplier Relationship Management (SAP SRM) provides you with innovative methods to coordinate your business processes with your key suppliers and make them more effective. SAP SRM enables you to optimize your procurement strategy, to work more effectively with your supplier pool, and thus to gain long-term benefits from all your supplier relationships.

Why SAP SRM?

SAP SRM’s Procure-to-Pay will help you stay flexible by ensuring control and compliance between your vendors, contracts, regulations, buyers, and finance organizations. You can scale your resources to dynamically manage suppliers, processes, budgets, approvals, and payments on a global basis. SAP SRM Procure-to-Pay comes with Best-In-Class features that are automatically updated with each new release. SRM can be handled cloud base as well as in unified SAP On-premises.

Key solution in SAP SRM:

Across the SAP install base, companies today are looking to transform their purchasing function from tactical procurement to strategic supply management.

  • Innovations for Operational sourcing: Shopping Cart Modifications, Embedded Supplier Analytic & Enhanced Bid Comparison to determine awards.
  • Contract Life cycle Management to support full contract management process for contract execution and compliance.
  • Innovation for Contract Management: Electronic signature, advanced clause change support, Bar-code generation for contract documents, e-RFx & e-auction.
  • Spend Analysis identifies saving opportunities by enriching, classifying and analysing company spend data.
  • Supplier Life-cycle Management, Order collaborations, Collaborative Invoice to Pay & Commodity Management.

Following Diagram illustrates SRM Procure-to-Pay Collaborative approach with all Stakeholders :

SAP-SRM

 

SAP SRM Benefts:

With the SAP SRM solution, SAP pre-configured business scenarios can quickly deploy and gain following benefits:

  • Proactive compliance across contracts,Processes,regulations and supplier strategies
  • Maximize value and ROI of your sourcing negotiations with fast time to value
  • Actively controls global spend with flexible management and visibility tools
  • Rapid enablement of new supplier with consolidated procurement tool that unifies all ERP’s
  • User-customizable dashboards across all aspects of managed commerce
  • Advanced contract compliance with Mobile approvals
  • Seamless receipt and reconciliation processes
  • Flexible global processes, budget checking, and approvals with dynamic purchasing groups

Summary:

SAP SRM application helps you streamline operations, improve purchasing compliance, and enhance cost management.As a result, you can manage spending while maintaining access to high-quality products and a reliable supply base.

Terminal Performance in OneView with SAP Business Intelligence

Top management of Ports & Terminals is increasingly under pressure to improve,

  • Throughput
  • Service Level
  • Asset Utilization
  • Berth Productivity
  • Truck Turnaround Time
  • Gate and Yard Operations

&

  • Profits

Typically, performance information is spread across multiple systems. Also master data is not harmonized across systems. Issue gets complicated further at Regional or Corporate level, as each terminal can have different application systems. Process to get performance status is manual, slow, error-prone and inflexible. It is also open to manipulations.

Top management may be flying blind in such situations. CEOs,COOs, Operations Heads, Commercial Heads desire to track all KPIs in one View. They want this in real-time, 24 x 7 and from anywhere.

“OneView on SAP Business Intelligence” is designed keeping this senior management need in mind.

About OneView:

OneView is designed with focus on top management’s requirement. It’s SAP version can run on proven SAP BW (Business Warehouse) and SAP Business Objects (BO).

Typically terminals have multiple systems like,

  • Terminal Operating System (TOS)
  • Billing
  • Time & Attendance (Workforce Management)
  • Remote Crane Management Systems (RCMS)
  •  Fuel Management Systems
  •  Tyre Management System
  • ERPs like SAP to handle Materials, Procurement, HR & Finance

OneView pulls data from multiple systems into SAP BW and visualizes it, using SAP BO. Below diagram depicts broad BI architecture for terminals with OneView.

SAP- OneView architecture

Out of the box Dashboards, are designed using its global experience with terminals in more than 30 countries. Also, Envecon can quickly customize OneView with its Business Knowledge and knowledge of systems used in terminals.

SAP-Oneview BO

OneView dashboards are designed for each senior role and each functional area like,

  • Operations (e.g. Berth, Shift, Crane Performance etc)
  • Commercials (Budget Vs. Actual, Break-up Cargo or Freight Type)
  • Asset Performance (MTBF, Availability, Fuel per Box etc.)
  • Finance
  • Procurement
  • Work Force Management

Dashboards are visual, impressive and easy to use.  Dashboards are  available on Mobile (iPhone, Android and Windows).

Why SAP BW/BO ?

SAP Business Warehouse (BW) and SAP Business Objects (BO) is a proven BI solution globally. It is a trusted Business Intelligence solution, being used by large global Fortune 500 companies.

SAP BW pulls data easily from any system like TOS, Billing, Time & Attendance etc.. SAP BW is scalable and offers many standard extractors. It has in-built functionality for data cleansing, massaging and summarizing.  BW can be based on Oracle or MS SQL database technology.

For turbocharged performance, management can choose SAPs in-memory HANA database.  HANA can run 1,000 times faster than conventional technology. It helps top management in complex situations like predicting asset failures or future maintenance costs.

BW can easily combine  data from different systems to give single source of truth.  E.g. Moves from TOS and Maintenance Data from EAM Systems.

SAP BW and BO do not need SAP ERP and can run with any ERP or other systems..

OneView dashboards based on SAP BO are,

  • Impressive
  • Can be Real-Time
  • Capable of doing What-If Analysis  e.g. Impact of price hike
  • Intuitive and User-friendly
  • Can be accessed from anywhere on mobile

OneView Benefits:

OneView on SAP BI bring following benefits to top management of Ports & Terminals,

  • Terminal Performance in all areas at a glance
  • Get single view from multiple systems
  •  Access it on mobile from anywhere on the go
  • Impressive Dashboards
  • Meaningful and relevant KPIs
  • Tracks performance against targets
  • Can be easily customized for any specific business need
  • Enables quick decision making

Envecon’s Contribution

Envecon is known for it’s terminals domain expertise globally. Envecon brought following strengths to OneView,

  • Global experience in serving terminals in 30+ countries
  • Understanding of top management requirement
  • Understanding of IT systems used in terminals and its data structures
  • Technical capabilities of SAP BW and SAP BO

Summary:

“What’s Measured, Improves !” said management guru Peter Drucker.

Top management is responsible for tracking terminal performance accurately and in real time. It is responsible for reacting with quick and right decisions.

OneView with its impressive dashboards with relevant KPIs from multiple systems enables top management to track entire terminal performance from anywhere  and take right decisions.

For more information please contact sales@enveconit.com

OneView for Procurement Excellence

Procurement excellence is increasingly becoming an important factor in delivering efficient operations. Procurement Analysis lets you streamline your procurement administration and is a fundamental part of the Supply Chain solution.

OneView will give you the tool to make your decisions faster by giving a real-time visualization of procurement performance on a single screen.

Procurement excellence

Gives all information on a single click
  1. Supplier Quality Statistics
  2. Supplier delivery Statistics
  3. Procurement V/s Utilization
  4. Procurement lead time analysis
  5. Inventory Ageing
  6. Periodic spend visibility

And many more to strengthen your procurement process.

Oneview can provide the visibility and insight needed to improve procurement performance. Thus, enabling the procurement manager to drive the procurements efficiently this will participate at improving the productivity of an organization.

 

SAP HR in Multi-System Environment

SAP HR in Multi-System Environment

Many organizations use SAP along with other external HR systems. For e.g. Organization Structure, Employee Data Management & Payroll are done in SAP HCM(HR) but time management is managed in external systems to record Clock  in & Clock out  information, Leave & Leave quota information.

This can be due to legacy or partial implementation of SAP HR.

Following are some the reasons for existence of multi-system environment,
  • Resistance to change due comfort  with legacy systems
  • Legal issues
  • Overwhelm due to  breadth and depth of SAP HR functionality
  • Reluctance towards new processes or functionality
  • Poor change management during implementation
  • Tendency to avoid investment in additional training
  • Part implementation of SAP HR Functionality
Pains of multi-system environment include,
  • Manual work
  • Errors
  • Correction efforts
  • Un-harmonized master data
  • Data discrepancy, duplication and inconsistency across the multiple systems
  • Delayed processing
  • Possible employee dissatisfaction and legal issues

SAP ECC Human Capital Management (HCM) has exhaustive functionality. It is capable of handling all HR processes of complex organization anywhere in the world.

Capable implementation partner and organizational maturity is essential to realize full potential of SAP-HCM.

For one of the European client of Envecon, multi-system was unavoidable.

Human Resources department users were not fully aware of SAP capabilities and preferred status quo for some time. External systems also included Workforce Management,  Time and Attendance and localized HR system being used for 20 years. Also payroll was outsourced.

ENVECON VALUE ADDS:

Envecon studied end-to-end HR  processes spread across multiple systems and being done manually. Envecon identified opportunities of automation and integration. Also identified possible master data harmonization and synchronization issues.

Envecon developed  interfaces which will automate synchronization of data elements of already existing system with SAP system. Employee details, Time Data, Payroll Data & Organisational Data are some of the elements which were synchronized across systems.

Envecon developed following interfaces in HR,

Inbound Interfaces : Data coming to SAP from external system

  1. SAP and  Microster WFM for Leave application data
  2. SAP and  Biometrics for Clock-In Clock-out Data
  3. SAP and STATUS HR for Organisational Management Data
  4. SAP and STATUS HR Personal details of Employee

OutBound Interfaces: Data going from SAP to external system

  1. SAP and Microster WFM for Leave Balance
  2. SAP and Microster WFM for Personal information Data.

Automatic email notification was generated. In case of  any data error, an email notification with log was sent to stakeholders.

SAP Process Orchestration (PO) was used for achieving integration .

BENEFITS REALIZED:

Below are some of the benefits realized,

  • Smooth integration of all HR Systems and processes
  • Better realization of SAP HR potential
  • Automation for Data flow & Synchronized systems
  • Data consistency without manual intervention
  • Easy identification of error hence assures accuracy
  • No manual efforts involved
  • Quick and correct information availability to management

Client is planning an incremental  SAP HR implementation to utilize full functionality, reduce number of systems and maintenance cost.

CONCLUSION:

Reducing multiple systems by utilizing full functionality of SAP Platform  is the best option. If  multi-systems are unavoidable then tightly integrating all systems and processes using SAP Process Orchestration (PO) is the next best option. It saves time, money and lot of pain.

 

EnveconIT

Current Opening : SAP FICO PM

  • Total Experience: 10 to 15 years
  • On-site Experience: 2 years
  • Implementation Experience: 5-6 full cycle implementation
  • Skills Desired:  SAP FICO Consultant,SAP FI, SAP Controlling, IFRS,ERP, Supply Chain, SCM, 
  • Preferred Qualification:  MBA Finance/CA/CPA, B.Com, Graduate
  • Domain Knowledge: Experience in Logistics, Shipping, Ports, Terminal is highly desired.
  • Product Experience: FICO and any other SAP module like GRC, Material Management etc.
  • Travel Long Term/Short Term: Should be ready to travel abroad for short term on client site.
  • Certifications: SAP Finance , PMP preferred
  • Project Management Skills: Must have completed 2 end to end implementation as a Project Manager
  • Types of Project: Implementations, Roll-out, Business Process Reengineering
  • Job Description: Job involves SAP implementation, roll-outs for our global clients. He/She should be able to play key roles in SAP Global Template Creation, Implementations and roll-out. Should be able independently and convincingly talk to clients at all level. Should be willing to take ownership and work with team. Should be knowledgeable in Best Practice Implementation.”Leading project teams to deliver end to end project assignments successfully
  • Base Location : Mumbai

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Truck Turnaround Time Analysis

The primary objective of all terminals is to reduce the truck’s waiting time via smoothing the gate activities i.e. to prevent the gate from being a bottleneck.The time spent in waiting to enter the terminal is a consequence for the port performance.

Terminal operating systems with an integrated BI solution enable the terminal executive to manage truck and container movements at terminals, which integrate gate, yard and quay operations.

BI Solution designed especially for terminals, with right Dashboards, KPIs and Analytical Cubes will help to analyze collective truck turnaround time which helps in  reducing   truck idling times.

The gate, yard, quay are the most important activity sectors that take place in container terminals.

Gate Sector:

BI tool gives an analysis of gate wise truck turnaround time (in time and out time of  truck), how many containers have been handled by each gate and also gives an alert  if the truck wait time  exceeds from the target wait time .

On a Weekly basis, each terminal reports the average in-terminal truck turn time. The average gate turn time is defined as gate in time to gate out time, in other words, how long the trucker is actually in the terminal. This measure does not include any time spent waiting outside of the gate before entry.

The below dashboard shows truck wait time (Real time) analysis:

Truck wait time01

 

Below dashboard shows Weekly Average Truck Turnaround Time at Gate:

WEEKLY TT

Yard Sector:

BI solution helps to give an analysis of the loading and unloading of containers (full or empty) on terminal trucks in the yard, provide information of container tracking.

Below dashboard shows Truck Turnaround Time at Yard:-

TruckMoves at yard

Feel free to connect with us on LinkedIn  and check out our Case Studies too.

Managing change in an ERP implementation

An ERP project, whether it’s a pilot, roll-out or an upgrade, will bring in multitude of changes within the organization. It’s important for the management to fully assess the impact of the change due to an ERP implementation decision.

Some of the several challenges a company faces in an ERP implementation are Change Management, Project Management and Cost Management along with its associated escalations, Risk Mitigations to Customizations and Expectations management.

Change in an ERP Implementation could be of various types:

  • Change in Processes – being brought in global business practices

  • Change in Roles – being brought in due to segregation of duties

  • Change in Effort to Input information – being brought in due to the higher level of details required by the new ERP

Address these changes, by listing each of them and working out with the product experts to ensure that only Business driven changes are applied. Super Users or Core Users, who plan for these improvements as a periodical and continuous basis, are better able to manage their user community, than those who just worry about maintaining what is delivered as a package.

The “owner” of the implementation has to be an in-house individual, who is not only familiar with the various departments and the user community, but also has the support and mandate of the Top management, to be able to suggest and manage the expectations.

An ERP implementation does not just bring in the perceived changes, it brings in a sea of opportunities to do additional things under the ERP umbrella:

  • Don’t just use PCs and Laptops, enable wide screen displays in workshops and control rooms. Get Status reports and Pending Tasks Queries to be displayed at appropriate areas, to drive work completion.

  • Evaluate tasks performed manually, and if these can be automated to reduce the data entry effort. The thumb rule, is to identify all those interaction points, where a single user interacts with multiple applications, to deliver or manage a feature. Automate these data entry , and get the user to monitor accuracy than just efficiency.

  • Use the “Ease of Use features – GUI Functionalities” of the product to reduce as much effort and make day to day working

  • pleasant for the end user.

Share your thoughts on Change Management during ERP Implementations and we will let you know of some of the best practices we have seen.

Feel free to connect with us on LinkedIn  and check out our Case Studies too.

How an integrated ERP system will improve terminal performance

Most end-to-end processes in ports and terminals typically span multiple systems and integrations.

The typical landscape of a terminal is an integrated solution of Terminal Operating System (TOS), financial system, Procurement and Inventory, Enterprise Asset Management, HR Management, Payroll Management, Workforce Management and several more to ensure synergy and smooth functioning at a terminal.

The difficulty begins when all these systems need to work in tandem to pass information to each other in order to process transactions seamlessly. That is precisely when the need for integrating systems together becomes necessary.

Integration of multiple systems, in most cases, is not only effort-intensive, with respect to both cost and time; it requires continuous support and management. And the biggest disadvantage for terminals is that it locks them down from upgrading existing systems with newer features, functions and technologies that help enhance and improve productivity.

Having learnt from the innumerable challenges, the trend has now shifted to a single system solution that can meet most of the needs of a terminal. Using a system with integrated architecture takes away key pain points out of IT management as well as overall business administration, especially through updated and newer versions of systems that are aimed at streamlining business processes.

Leading ERP products (ie SAP, IFS) with their integrated architecture are a one-stop shop solution for terminals that can meet most of its inherent business needs. Even global Leaders in this business, having multiple terminals worldwide, use ERP to gain global control to manage terminals.

To summarise, the key benefits of adopting an integrated architecture are:

  • Single version of truth in terms of master data information for customers and materials; thus avoiding all the issues relating to duplication of information and loss of data integrity.

  • Faster processing of information due to real time integration; that in turn ensuring timely decision making at all levels.

  • Powerful BI framework to enable intelligent analysis and mining of the vast volume of data to ensure optimisation of operations and better management of KPIs.

  • Operational cost reduction due to more advanced forecasting tools ensuring better equipment availability and better planning and scheduling capabilities.

  • Better workforce management due to automation of processes, work load monitoring and faster cycle times to closure.

Feel free to connect with us on LinkedIn  and check out our Case Studies too.

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