This morning Kenny Rawls from Tyson foods talked about how Tyson Foods are “Simplifying complex supply chains with high performing Transportation Networks”
Tyson foods are a$33 Billion manufacturer of fresh, frozen and refrigerated food products who employee 115,000 people globally across over 400 facilities and offices. They exports products to more than 100 countries globally and plan and execute 15,000 shipments weekly.
The project objectives is to replace legacy transportation planning application with a solution to support transportation planning and execution for shipments within the Poultry and Prepared Foods business units. In doing so, they needed to address both operational and IT challenges:
Manual, paper-based transportation planning that leads to reduced optimization of shipments across Tyson’s transportation network
Inability to consolidate shipments to maximize utilization of transportation resources
Improve scheduling and optimization capabilities
Multiple, In-house transportation systems
Challenging and costly to support multiple systems and users across multiple platforms
Project Scope and Approach
Deployment across the poultry and Prepared Foods Business Units
Business Process Scope
Special Shuttles (Forwarding Order Management)
Intercompany Product Movement
Outbound Customer Shipments
Multiple Modes of Transport including truck, rail, ocean and air
Phased implementation based on the business process scope , and tightly integrated within the overall SAP program in order to minimize risk and maximize return on investment
It was explained how, within Tyson, SAP Transportation Management (TM) will support the physical transportation of goods from one location to another. The transportation Process that are broken down into 4 categories:
Order management- The initial event trigger in TM.vInvolves receipt of orders that require product movement from one location to another
Transportation Planning- To plan the movement or transport of the products required
Transportation Execution- Includes the selection of carriers, initiation of goods issue, creation of a transport order, and trigger the decrement of inventory.
Financial Settlement- Freight contracts are reviewed to determine the correct pricing, Invoices are generated, and accounting processes are performed
SAP Event Management (SAP EM) will allow Tyson to monitor the end-to-end business processes by matching planned events and measurements with the actual events and measurements to uncover exceptions.
Monitoring & Visibility to key Business Processes through monitoring capabilities to any business process.
Matching Planned to Actual Data , allowing the company to identify exceptions
Real Time Notification of Events to provide timely data and to react quickly -
Integration with other systems, both SAP and legacy.
Kenny discussed the benefits of deploying Transportation Management at Tyson :
Consolidation of transportation solutions to a single platform
Increased efficiency of internal and external transportation resources through optimized planning
Improved visibility to total transportation costs across all shipments, for all business units
Greater visibility and accountability to customer and warehouse requirements
Support detailed Shipment Scheduling
Improved ability to incorporate transportation costs into the total material cost
Support greater integration between warehouse scheduling for door management and transportation appointment management
Finally, Kenny discussed some best practices and lessons learned for implementing Transportation Management::
Manage scope and amount of change encountered during initial go-live and subsequent roll-outs
Amount of functionality
Number of locations / shipments
Risk and Impact to Customers and Vendors
View as business transformation, not just as system replacement
Make sure that the master data is accurate and up to date.
Work with a trusted implementation partner
And to answer the question – How did the chicken cross the road? With SAP Transportation Management.