delivering real-time business value for postal services

July 2013

Delivering Real-Time Business Value for

Postal Services SAP Business Suite Powered by SAP HANA

Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

The real-time opportunity

Declining mail volumes and increasing parcel

business requires postal services organizations to

find the right balance between delivering core

products and services efficiently and extending into

new lines of business.

Extend into new lines of business

Increase efficiency in operations

Gain a 360-degree view of the customers


Becoming an innovation-driven enterprise Align business operations with customer needs

Manage the

multichannel

challenge

One central place for collecting all customer data from

various sources

Real-time simulations of planning and costing scenarios

No latency through heterogeneous consolidation

landscapes and quasi-instant response times (even with

large number of very complex calculations)

Drive profitable

growth with

flexible analytics

Real-time enterprise profitability with large volumes of

item-level data

Common view across financials and logistics

Support for parallel financial reporting standards and to

simulate scenarios

Comprehensive simulation of organizational changes

and alternate accounting methods

Respond to

market dynamics

in real time

New analytical, data-mining functionalities on Big Data

(social media and predictive)

Precision marketing to personalize every interaction

with the customer


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industry value map for postal services The future-ready postal service

Multi Channel Marketing and Sales

Multichannel Marketing Management

Order and Contract Management

Billing and Revenue Innovation Management

Web Channel

Customer Experience

Consumer Dialogue

Store Excellence

Multichannel Citizen Services

Mail and Parcel Delivery

Maintenance Operations

Transportation Management

Track and Trace

Supply Chain Analytics

People and

Talent

Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay Commodity Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration


Industry value map for postal services Real-time value for key end-to-end processes

Multi Channel Marketing and Sales

Multichannel Marketing Management

Order and Contract Management

Billing and Revenue Innovation Management

Web Channel

Customer Experience

Consumer Dialogue

Store Excellence

Multichannel Citizen Services

Mail and Parcel Delivery

Maintenance Operations

Transportation Management

Track and Trace

Supply Chain Analytics

People and

Talent

Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance

Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay Commodity Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration

Highest real-time

business value

for postal service

3 6 5

4

7

1 2

8


Today

KPI improvements are high-level estimates and will have to be validated for each customer situation.

With SAP Business Suite on SAP HANA

Financial performance management Business value for planning, budgeting, and forecasting

Planning performance limited to

OLAP, staged cubes for transactional

and master data

Data load performance is driven by

the amount of data extracted from

SAP Business Suite

Reporting, loading, and retraction

performance limits planning iterations

Drilldown within OLAP cube, and

drill-through to SAP Business Suite

and OLTP data within standard times

Seamless replication of master and

transactional data from SAP

Business Suite

Availability of more granular data to

support planning

Big Data challenge is negated,

allowing for faster extract and DSO

activation times

Iterative planning and real-time

simulation are supported through

improved performance

Improved performance for drilldown

(expand) and consolidation (collapse)

Fast drill-through and live view of

transactional data in SAP Business

Suite

Improve service level

performance

Reduce

Minimize

cycle times and

manual effort

operating costs


Today



Financial performance management Business value for profitability and cost analysis

Data latencies and process delays

impact the ability to react to issues

and opportunities

Lack of data depth and user self-

service affect internal decision

making

Long-running processes

Time-intensive data queries

Mostly manual data analysis

Substantial amounts of time and

effort that do not directly add value

Suboptimal resource efficiency and

effectiveness

Timely execution of critical business

processes supports decision making

and increases the ability to act swiftly

(insight-to-action) in dynamic market

environments.

Critical transactions and calculations

run quickly.

Response times on queries are

quick.

Prebuilt analytics automates the data

analysis process.

Leaner processes from data capture

through data analysis

Increased productivity through

process-optimized analytics and

mobile support

service level

performance

Improve

Reduce cycle times and

manual effort

Minimize operating costs


Today



Financial performance management Business value for financial and managerial reporting

Risk of noncompliance due to

unfulfilled (overruns in) audits

A lot of data; decision-relevant

information not readily available

Data analysis not supported or

automated

Long-running batch jobs and reports

Time-intensive data analysis

Large number of time-consuming,

and non-value-added processes

required to access and provide

accurate, up-to-date information

Timely execution of compliance-

relevant validation tasks

Increased end-user satisfaction

(accurate, detailed, visualized, timely,

and actionable information)

Acceleration of key critical-path

processes and reports

Instant response time on most data

analysis queries

Elimination of workarounds and data

latencies

End-user data analysis through self-

service means

service level

performance

Improve

Reduce month-end

closing time

Minimize operating costs


Today



Accounting and financial close Business value for entity close

Long running processes

Time-intensive reconciliations

Limited time for analysis

Inefficiencies due to manual

processes and low automation

Missing financial excellence

resulting in higher cost of equity

at the capital markets

Difficulties in supporting parallel

financial reporting standards on a

global basis and in simulation of

scenarios

More time for analysis, less overtime,

and earlier publishing of financial

results through faster

period-end processes and better

reconciliations

Increased efficiency through smarter

reconciliations and reporting,

reducing operating costs and

improving stakeholder satisfaction

Real-time analytics down to the

lowest level of detail – delivering

quality at source, transparency, and

process efficiencies

Minimize time to close the

entities’ books

Reduce

Enhance

cost of finance

compliance and

accuracy


Today



Multichannel marketing management Business value for line-of-business marketing

Difficult to identify profitable

customers from customer pool

Inability to identify gaps in sales

pipeline, leading to missed targets

Extraction of actionable information from the enterprise-wide customer data to maximize the chance of a sale

Minimal insight into buying preferences of customers in social data context

Easier identification of profitable

customers with account intelligence

analytics

Faster transaction search

functionalities

Complete transparency into sales

pipeline based on real-time

information with unlimited drill-down

functionalities

Real-time analysis of Big Data to

better understand buying patterns

Real-time access to and assembly of

all data including social/sales data

Increase profitability

Improve offer win rate

Gain insight into buying

patterns


Today



Store excellence Business value for warehouse management

No up-to-date view of the inventory

situation

Need for accurate display of actual

stock to react quickly to stock

shortfalls

Time-consuming inventory

management reporting

Real-time access to complex

inventory management data

Real-time stock insight and inventory

monitoring

High-performance inventory

management with large volumes of

documents

Higher process efficiency in adjacent

procurement processes

Reduce inventory levels

Minimize

Optimize

out of stocks

working capital


Today



Consumer dialogue Business value for contact management with interaction center

To successfully resolve customer

issues, companies need to be able to

quickly locate the right experts or

resources within the organization,

whether those experts reside inside

the contact center or elsewhere.

Managers and supervisors lack

actionable reporting and visibility into

the workload of their teams.

The high volume of customer records

and interactions results in increased

search times and greater difficulty

locating specific customer records.

With the new SAP HANA-based agent inbox, users can more easily search for relevant experts – whether in their own team or elsewhere in the organization – in order to dispatch/escalate issues to the best suited employee roles.

A new interactive work distribution

dashboard provides supervisors with

actionable insights into the workload

of their teams and employees.

Searches in the interaction center are

significantly faster, including account

searches, interaction history, and the

customer fact sheet.

Decrease average handling

time

Improve

Reduce

Service-level

agreement

compliance

service cost


Today



Maintenance operations Asset planning and scheduling

Maintenance scheduling consumes a

great deal of time

High amount of master data

influences performance of data

maintenance

Manual and error-prone process of

preselection of maintenance plans

Potent to miss necessary objects for

maintenance calls

High number of maintenance plans

that need to be scheduled frequently

leads to a weekly scheduling scheme

Accelerated mass transactions

Instant analysis on top of

transactions

Preselection of due plans, which

speeds up the process significantly

Real-time analytics on all data,

including machine sensor information

Scheduling of all maintenance plans

within a specific timeframe

Planning several times a day (instead

of once a week) results in

up-to-date scheduling information in

maintenance operations.

Faster response times lead to more-

accurate maintenance scheduling.

Increase asset utilization and

reduce unplanned

asset downtime

Maximize

Gain

asset uptime

up-to-date scheduling

information on

maintenance

operations


Today



Workforce planning and analytics Business value for transactional analytics

Translation of organizational strategy

into HR metrics requires significant

effort or special expertise.

Decisions are often based on

hunches.

Difficult to zero-in on underlying

transactions from high-level key

performance indicators

Time-consuming data loads in

traditional reporting tools

Integrated and personalized cockpits

that provide insight into metrics that

matter most

Thresholds leveraged as a steering

mechanism to optimize business

performance

Powerful predefined workforce and

time management KPIs for managers

with the ability to navigate into details

Embedded analytics inside business

transactions

Prebuilt virtual data models for real-

time transactional analytics

Simplified architecture

Increase revenue per

employee by using

analytics to identify

strategic advantages

Optimize

Reduce

the business with

reliable real-time

HR data

time and costs of

operational

reporting


Today



Procurement and order collaboration Business value for operational procurement

Missing real-time insight into

operational procurement reporting

Inability to dynamically create

operational procurement-related

reporting in a modern user interface

Slow and costly paper-based

processes

High transaction costs

Long-running transactions while

posting documents with high volume

of line items

Frequent errors yield to maverick

spend

New configuration options for

procurement analysis

Modern and easy-to-consume user

interface

Complete visibility into end-to-end

procurement activities

Real-time insight and easy to

manipulate information

Accelerated long-lasting processing

of purchasing documents

Improve procurement

reporting and

analysis

Reduce

Increase

procurement

operations cost

process

effectiveness


Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to

discover the customer-specific business

improvement areas and quantify value potential.

We suggest such a workshop with your line-of-

business and IT experts.

As a starting point, we recommend a performance

and usage analysis of your current software

system.


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

Postal service ‒ logistics planning and optimization Postal services

Business context and goals

Logistics department is in dire need of better planning and optimization of its transportation and

logistics to grapple with an increasing deterioration of services. Forecasting and predicting

functionalities for parcel flows and transportation needs is a key differentiating factor for success.

Business challenges

Inability to properly plan and forecast transportation needs and parcel/mail flows that results in

dismal customer service levels and inability to keep up with federally mandated delivery KPIs

Process innovations

Develop a robust predictive analysis tool that will enable comprehensive forecasting and planning

of routes, transportation assets, personnel, and so on for long-haul and last-mile logistics flows

Contribution of SAP HANA

SAP Predictive Analysis powered by SAP HANA speeds up the process exponentially in order to

ensure that real-time planning and decision-making functionalities are in place

Value drivers/KPIs

Logistics cost as a percentage of revenue; transportation management cost as a percentage

of revenue

Innovation scope

SAP HANA products (HPAs, apps)

End-to-end (E2E) solution

Postal services - transportation management

Value potential 5

Feasibility 3

Low High

1 5

Low High

1 5

delivering real-time business value for postal services

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service management

commodity management

infrastructure management

project management

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