SAP Billing for Logistics

SAP BRIM for Logistics Industry
Enabling Revenue Management Innovation
Executive Overview Presentation
Isabelle ROUSSIN

© 2013 SAP AG. All rights reserved. 2
© 2013 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.
The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or
warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group
products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing
herein should be construed as constituting an additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in
Germany and other countries.
Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Market Drivers Solution Overview Scenarios Benefits
What are the Main
Challenges Influencing
Your Business?

250%
Increase in 4 years between 2004
and 2008 on the barrel of petrol
Fluctuating Economic Environment
INDUSTRY
CONSOLIDATION
REGULATION
ON SECURITY
VARIABLE COSTSSeveral studies have clearly
shown that a majority of
companies expects logistics costs
to rise. One cited reason is the
increasing complexity of the
supply chain into which more and
more value-creation activities are
being shifted. Other reasons
include external factors like rising
fuel costs, tolls and new security
regulations in the international
supply chain
DHL web site
“” GLOBALIZATION
DEREGULATION

Innovation in managing a worldwide forwarding organization
 Improved transparency
 Improved end-to-end process control from quote to cash and pickup to delivery
 Increased productivity
 Global standardization of processes and products including pricing and invoicing capabilities
 Improved customer intimacy and service
 Customer profile driven invoicing and efficient financial customer care
Innovating on customer financial management
 End-to-end process integration with service standardization
 Billing automation
 End-to-end product pricing and costing with service configuration
… Driving Needs for Innovation in Business Model
New Forwarding Environment

80%+
Of cost for maintaining status quo
Reducing Enterprise Costs
Reliability should be a key
performance indicator for all
carriers. Today, 10% of all our
shipments are more than two
days late, (…). Guaranteed
reliability will allow us to drive
down costs
Eivind Kolding, CEO
HETEROGENEOUS
IT LANDSCAPE
HOMEGROWN
DECENTRALIZED
SYSTEMS
HIGH QUALITY OF
SERVICE
“”

… Driving Needs for Streamlining the IT Process
Defining a common back office with convergence of revenue streams
Freight
revenue
Accessorial
charges
Value-added
service charges
Efficient dispute and
revenue recognition
Collection / Reimbursement
Chargeable Items & Charge-related Events
Convergent Charging
Finance
Rating
Event ManagementProduct, Contract & Tariffs
Financial Customer Care
Convergent Invoicing
Rating
Product, Contract & Tariffs
Rating
Event Management

Retaining Empowered Customers
HYPER, DIGITALLY
CONNECTED
SOCIALLY
NETWORKED
BETTER
INFORMED
EXPECT IMMEDIATE,
PERSONALIZED RESPONSE
For a company to be
successful, the ability to react
promptly to customer requests
is becoming increasingly
important
As the architect of modern
value chains, logistics provides
tailored concepts that help
optimize product development
and order processing times as
well as companies’ reaction
times
DHL Web site
“”

… Driving Needs for Addressing Segment of One
Simplify Business Interactions while Meeting Real Time Expectations
Real Time
Insight for True
customer 360°
view
1:1 customer
engagement
Real Time Execution
for context sensitive
offerings

Closed Loop between
Business Need and IT
Constraints

From Business Challenges To Technical Needs
Innovative Pricing & Bundles
Commission Partners
Pricing,
Rating &
Charging
Collect
&Pay
Bill &
Invoice &
Settle
Customer
& Partner
Financial
Care
Analytics
Consume to Cash Analytics
Consolidate Billings
Manage Efficiently
Credit & Collection
Customize Invoices
Analyze Customer
Usage
Convergent
Mediation

From Business Process to Features
Price,
Rate &
Charge
Manage
Receivables
& Payables
Bill &
Invoice &
Settle
Customer &
Partner Financial
Care
Analytics
Deliver
Service
Order
Offer &
Contract
Mgmt.
CRM
Operational
Platform
Consume To Cash Analytics
O2CProcess
The Order To Cash Business Process for Posts
Execute efficiently Price profitably
Invoice as
customer requests
Recognize
revenue correctly
Prevent company from
monetary leakage
Benefits
Collect &
Manage
credits
Analyze
Customer Usage
SAP CC SAP ERP (FI-CAx based)
SAP CRM
SAP Sales / Service
SAP SCEM
RDS CUA
RDS
SAPBRIM
SAP Mediation
SAP TM
Billing & Revenue Innovation Management Solution supporting O2C Process
Get the business
Convergent
Charging
Convergent
Invoicing
Receivables
Management
& Payment
Handling
Credit &
Collections
Management
Financial Customer
Care & Dispute
Management
Mail delivery,
Logistic Execution,
Event Mgt. /
Mediation
Order Management,
Contact Center,
Marketing
Customer
Usage
Analytics
Features
The Corresponding Features

SAP Solutions for O2C link process across departments
Convergent
Charging
Convergent
Invoicing
Receivables
Management
& Payment
Handling
Credit &
Collections
Management
Financial Customer
Care & Dispute
Management
Order Management,
Contact Center,
Marketing
SAP CC SAP CI SAP CFMSAP CRM
Strategy & Service
Marketing
& Call Center
Pricing
Design
Offer
Design
Financial
Customer
Care
Dispute
Mgmt
Billing Operations Accounting Collections Customer Care
Sales
Contract
Creation
Credit
Scoring
Finance Manage
Receivables
& Payables
Run
Collections
Book
Revenue &
Costs
Prepaid
Refill
Billing
Price and
Rate Events
Manage
Subscription
Account
Manage
Billing
Account
Invoicing &
Payment
Statements
Mediate
Usage
Operations
Deliver
Service

Awarded
DigitalRoute is the 2011
Stratecast Global CSP Billing
Mediation Competitive
Strategy Innovation Award
Winner
SAP Convergent Mediation
Integrate new and old systems
more simpler
 Collection of multiple data streams
Ensure data quality
 Error detection, with de-duplication
Transform raw data in usable
information
 Data enrichment in real time
Standardize Data format
across platforms
 Translate protocols and formats to create
new unified data format

“”The flexibility and speed at
which we could create and
modify price plans was
second to none. It is so user
friendly that now even non-
technical financial managers
are able to introduce new
tariffs.
Raphaël Bichon, Project
Manager SFR
SAP Convergent Charging
Easy to Use
 Visual design of charging models with
complex discounts, surcharges,
apportionment, quotations of cost of shipping
 Service-agnostic, proven
 Rapid time to market
 Support for multi-sided partner-centric
models
 Support prepaid, postpaid and hybrid
charging
High Performance
 Calculate prices and charges for hundreds of
thousands of transactions per second for
hundreds of millions of customers

Multi-Sided Partner Settlement
28%
decrease in IT expenditures
as a percentage of revenue
with a consolidated single
solution and platform
landscape
Source: SAP Performance
Benchmarking
Handle flexible partner contract terms
 Use the same pricing engine to define these contracts
Interlink customer pricing with partner
revenue share
 Better manage the profitability of your business models
Tailor your offers to partners
 Allow special incentives to most valuable partners

Consolidate multiple upstream
systems for a single view of the
customer’s account
 Flexible invoice aggregation & presentation
 Configurable invoice discounting
 Integrate seamlessly with accounts receivable
and payable for interest calculation,
adjustments, etc.
 Handle both customer invoicing and production
of payment statements for partners in a single
solution
 Transactional journey by journey financial view
Scalable Solution
 High volume capabilities
32%
decrease in errors when
A/R and billing are
integrated so open items
are generated at the
same time as the bill
Source: SAP
Performance
Benchmarking
SAP Convergent Invoicing

74%
Decrease in billing and
collections cost as
percentage of revenue
with optimized collections
and dispute handling
Benchmarking
SAP Customer Financial Management
Automation & Optimization
 Automate routine tasks
 Optimize efficient cash collection
through segmented strategies
Transparency On Revenue
 Monitor an up-to-date picture of
customer payment behavior
 Comply to accounting standards
Customer Satisfaction
 Immediate access to customer
contracts & payment instruments &
accounts

SAP Convergent Charging and Invoicing scale massively
A series of benchmark tests were run in Q4 2011 in IBM Labs in Montpellier,
France, to measure the massive scalability of SAP Convergent Charging & SAP
Convergent Invoicing on IBM platforms.
773,000
2.8 B
events / sec
events / hour
subscribers
200 M
Market Leading Results
SAP Convergent Charging
100,000
1175
billable items
invoices/secsubscribers
50 M
SAP Convergent Invoicing

Rapid Deployment Solution for Billing with Best Practices
* Reduction assumes
100% fit to baseline
content scope.
Leveraging Pre-
configured
Baseline
Up to a possible 40% time
and effort reduction
compared to a traditional
project with same scope*
Blueprint - up to 50%, Savings
• Best Practice processes modeled
and described
Realization - up to 50%, Savings
• Best Practices processes already
configured and documented
• Delta implementation built on-top of
existing best practices
Testing- up to 30%, Savings
• Test Case Template supplied
0 10 20 30 40 50 60 70 80 90 100
Standard Prep Business Blueprint Realization Testing Go-live
Start Deploy Run

Efficient Revenue Management: increase customer
satisfaction and improve financial performance with a converged
view of customer accounts, receivables, payables and disputes.
Deployment Flexibility: deploy a complete, integrated
customer care and next gen billing system, or choose to deploy
in smaller implementable steps for targeted incremental value.
Don’t reinvent the Billing Wheel!
Business Agility: launch new pricing, charging and billing
models more flexible and faster: open up new revenue stream,
personalize your B2B offerings and get to know your customers
1
2
3
Summary

Explore Different
Scenarios

B2B Billing: Delighting your Enterprise Customers
25%
lower DSO when key metrics
can be analyzed across
customer, order, region, and
product line
Benchmarking
Tailor to each specific enterprise customer
 Manage complex enterprise agreements
 Customize offerings while retaining manageability of product
catalog
 Define credit pooling across multiple enterprise employees, seats
and devices
Handle more dedicated billing capacities
 Automate billing and discounting for SLAs and tiered plans
 Customize invoicing breakdowns corresponding to customer
hierarchies
 Converge all services onto a single bill

DPD Post Use Case
DPD is the international network and
world class brand of GeoPost Group, a
100% subsidiary of La Poste Group and
majority shareholder of DPD.
GeoPost, a B to B parcel specialist,
caters for more than 230 countries on
behalf of over 300,000 clients. Today,
the GeoPost Group boasts 1st rank
positioning in France and 3rd rank in
Europe with an annual turnover of
around 3.292 billion Euros in 2008.
Customer Business Issues solved
• Optimizing the billing process, reducing the number of systems
involved (45 systems)
• Cost reduction by automating processes ( redundant customer
data, partial manual handling)
• Introduce E-Billing
Why SAP BRIM - Benefits
• Major cost savings due to standardized, automated processes
• Convergent invoices and E-Billing have positive effect on
customer satisfaction
• Harmonized pricing
Solution
• SAP Convergent Invoicing
• SAP Customer Financial Management
At first, replacing DPD’s proprietary billing application with the SAP for Telecommunications solution portfolio seemed
to be an unusual move . On second thought, DPD realized how appropriate it was. Telecommunication companies use
the same basis for billing as DPD: services used. Suddenly, the switch seemed perfect, with SAP Consulting
customizing the industrial solution portfolio to the specific shipping needs of DP
“”
0,25-0,5%
Increase of revenue growth

Develop Customer
Experience and New
Areas of Growth

BRIM Performance
KPI Industry Benchmark Improvement Potential
Time to implement new
pricing offers
Price/performance for
rating (TPS per CPU core)
Days sales outstanding
(DSO)
launch in hours
not weeks
150%
20%
1 day 90 days
30
days
470 5 400
2 140
0 90 days
54
days

© 2013 SAP AG. All rights reserved. 27Internal
… Acquiring new business and keep existing
one
… Efficiently execute services according to
SLAs, including purchasing
… Price services in a way to be profitable
… Invoice services the way the customer
expects or demands SLAs
… Recognize revenue in line with to legal
regulations
… Deal with short and non-payments, credit
issues, and disputes in an efficient way
imagine
Let’s Work on Your Future Together

Thank you
Isabelle ROUSSIN
VP Solution Management Next Gen Billing
Transportation, Logistics, Postal, Utilities
Mail: isabelle.roussin@sap.com

© 2013 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.
The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or
warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group
products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing
herein should be construed as constituting an additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in
Germany and other countries.
Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

SAP Billing for Logistics

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