Optimize your logistics with SAP Transportation Management (SAP TM)

In functional terms, SAP TM offers standardized solutions in the following areas of transport logistics, for integrating transportation processes into intralogistics for example. Another option is Advanced Shipping and Receiving (ASR), which can be used with SAP Extended Warehouse Management (SAP EWM), SAP Warehouse Management (SAP WM) or SAP Stock Room Management. By using the cloud-based platform SAP Business Network for Logistics, you can ensure interactions with business partners and Track & Trace options. SAP GTS (Global Trade Services) connectivity supports compliance with foreign trade regulations.

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In functional terms, strategic freight management is made up of two areas: strategic freight sales as customer contract management, and freight purchasing as supplier contract management.

The transportation management process starts in order management. It is the main component for logistics service providers to start the sales process. The forwarding order is prepared based on the customer’s requirements and forms the foundation of mapping the transportation requirements and freight units in the logistics service provider’s process.

On the shipping agent’s side, integrated transportation requirements are prepared, based on the likes of customer orders, purchase orders, stock transfer orders or deliveries, which form the foundation for planning.

In transportation planning during transportation management, transportation requirements (freight units) generated based on business documents (such as orders from customers, stock transfer orders, deliveries) or forwarding orders are assigned to capacities or resources.  Restrictions such as requested delivery dates, etc., are taken into account. Transportation planning can be carried out both manually and automatically using planning strategies. A wide range of options is available for mapping individual requirements. The core of planning is the interactive Transportation Cockpit, which can be individually configured to the relevant planning scenarios. 

Operational transport execution, such as loading control, is also supported with integration into intralogistics (SAP EWM, SAP WM and SAP Stock Room Management), providing enhanced efficiency in the process as a whole. The required documents can be generated too, in addition to execution monitoring. Compliance with foreign trade regulations can be ensured using SAP Global Trade Services (SAP GTS). What’s more, execution monitoring is also possible over a SAP Business Network for Logistics connection.

SAP TM enables the calculation of freight costs for product transportation between locations using the tariff price. Master data such as agreements, calculation schemes and tariff price tables become relevant for this purpose. In addition to freight cost calculation, freight billing to service providers and forwarding agents is supported too.

The freight settlement document from TM, which is integrated into Materials Management for settlement, forms the basis of this.  The settlement document data forms the foundation of preparing a service purchase order, as well as a service entry sheet (SES) that can be used for invoice verification or automated goods receipt posting (ERS).

With SAP Business Warehouse (SAP BW), SAP is offering an IT solution that includes all the necessary components to build a data warehouse architecture for transportation reporting.

For real-time analysis of existing data, Embedded Analytics is also available in TM under S/4HANA, which offers the advantage of being able to conduct analyses without separate reporting systems. Information about KPIs can also be provided individually using dashboards based on business role-based Fiori applications for a specific task area. Additionally, a standard integration can be provided between Transportation Management and SAP Analytics Cloud, leveraging advanced SAC analytics functions. This integrates and links transportation data with other parts of the company to gain a more complete picture of the current status.