SAP Transportation Management Optimize transport processes and orders with SAP TM
SAP Transportation Management (SAP TM) is a standard SAP software from the SAP SCM solution portfolio. SAP TM is used for the management, billing, control and execution of transportation services.
SAP TM covers the management, control and optimization of all transportation processes along the supply chain. It ensures that the optimum logistics service provider is selected for each shipment in terms of price and performance, thus achieving the highest possible delivery reliability.
SAP TM can be used for both inbound processes (procurement, goods delivery) and outbound processes (distribution). Furthermore, special billing modes such as the credit memo procedure are made possible. Software-supported optimization with SAP TM makes transport management much easier and business and logistics processes are integrated and synchronized with the entire logistics network.
For example, transportation plans can be created that are cost-effective and meet customer expectations. Furthermore, transports can be consolidated and optimized (inbound, outbound, national, international transports). And finally, profitability potentials can be tapped and freight costs massively reduced, e.g. through strategic purchasing of freight capacities or optimal service provider selection based on various criteria.
Modular implementation:
A major advantage of SAP TM is the possibility of modular implementation of certain functions.
Your savings potential with SAP TM
SAP offers you a wide range of options for efficiently supporting transportation processes. SAP provides SAP Transportation Management via the SAP ERP (SAP Enterprise Resource Planning) options of LE-TRA.
By using SAP TM, you can efficiently support the improvement and automation of all transportation-relevant processes, e.g. freight cost accounting or transportation planning and tendering. With the integration to SAP EWM (SAP Extended Warehouse Management), the improvement already takes place in your warehouse. External transportation management systems are completely eliminated. Interfaces, dependencies and costs are significantly reduced.
IGZ enables efficient transportation processes with the optimal combination of SAP TM and SAP EWM.
With a sophisticated software solution in transport processing, processes can be standardized and savings potential in the single to double-digit percentage range can be tapped. In quantitative terms, freight costs can be reduced while at the same time increasing the transparency of carrier services. This enables you to select the "best-price" carrier and also puts you in a better negotiating position when renegotiating carrier contracts.
SAP Transportation Management supports you in the following areas:
- Freight cost simulation
- Freight cost-optimized shipping (depending on the agreed freight volume)
- Automated carrier selection
- tendering
- Transportation planning (multi-modal)
- Framework tours and block space agreements
- Service provider service level and quality monitoring
- Package and cargo space planning
- Event management
- etc.
Function examples SAP Transportation Management:
As an extension to SAP ERP, SAP TM offers considerably more extensive and at the same time simpler options for storing even complex condition tables and maintaining them with simple tools. For example, the following modes of transport can be stored and compared with each other.
- CEP
- General cargo
- FTL, LTL (Full Truck Load, Less than Truck Load)
Multimodal variants are also taken into account in the further planning of these condition frameworks.
The condition tables can have variations with 9 dimensions each. Examples of these dimensions include
- Kilometer prices
- Loading meter prices
- zones
- Cbm - kg ratio
- Staggering according to week - holiday
- Many other dimensions
Automated condition maintenance for managing large quantities of freight agreements is possible (mass maintenance). In addition, a simple tariff price table download and upload using Excel is provided as standard. This means that complex agreements, such as time-related and/or regional surcharges or discounts, can be efficiently taken into account.
Freight space and capacity optimization is an essential component for better utilization of the permanently more cost-intensive transports and for saving kilometers and CO². Based on previously calculated shipping HU data or data transferred from the warehouse (e.g. SAP EWM via standard integration), SAP TM optimizes your resource utilization in the following areas:
Optimization of packages
- Cartons
- Pallets, lattice boxes
- Individual containers
- Etc.
Optimization of modes of transport
- TRUCKS
- Axle load restrictions
- Zoned modes of transport - e.g. refrigerated areas
- Stacking
- Stop sequences
- Multi-level loading units
- containers
- Wagons
- A convenient solution with efficient and visually appealing interfaces has already been provided as standard in SAP TM. The user interfaces are based on graphical representation incl.
- Drag&Drop
- Colored marking of e.g. recipient, product group, stackability,...
- Of course, restrictions and conditions such as load pattern formation, stackability, volume compaction or hazardous goods are taken into account.
The flexible and combined planning of various transportation requirements - generated, for example, from the SAP documents below - can be planned and executed together:
- Inbound (order)
- outbound
- Sales order (released or not)
- Store order
- Quotation
- Return shipments (customer or store)
- Stock transfers (stock transfer, production supply)
Thanks to the integrative properties of SAP TM, flexible planning is possible on the basis of planning data as well as on the basis of real-time events and even during a tendering process.
For kilometer-based tariffs/costs, planning is based on road kilometers (with GIS system). These are of course determined on the basis of real traffic data, passage restrictions (bridge heights) and loading and unloading point restrictions (e.g. pedestrian zones). It is also possible to use GIS optimization algorithms agreed with a freight service provider to ensure accurate invoice verification afterwards.
Of course, the optimizer integrated in SAP TM takes other restrictions into account, such as
- Transportation costs
- Mode of transportation (air, land, sea)
- Means of transportation (vehicle type)
- transportation duration
- capacities
- Loading space
- Driver driving times
- Resource characteristics (e.g. cannot deliver to ramp or city center)
- Timetables
- Many more
- Automatic trailer planning
- Drop & Hook
- Trailer Swap
- Quality features of the service providers
Dispatchers and drivers, as well as other parties involved in the transportation process, can also benefit from the following displays in multimodal scenarios thanks to a strong and provider-independent GIS integration of a visual map display (online or on the SAP system):
- Tours
- Locations with transportation requirements
- Vehicle locations
- Further
Planned routes can be created and released with SAP TM either fully automatically, semi-automatically (proposal - editing - release) or completely manually. The optimization of transport routes is based on
- The SAP TM internal optimization algorithm
- The integration of GIS systems (e.g. Google Maps, PTV, Here Maps, Navision...)
- Timetables/standard routes
- Modal combination options
- Consideration of services (e.g. gassing, waxing, packing, loading wooden crates, etc.)
- Consideration of relevant real-time events
SAP S/4HANA provides access to and use of a standardized database for warehouse and transport master data.
This brings with it many new optimization scenarios for logistics processes:
- Transportation planning-based warehouse load planning possible
- Picking wave formation based on loading sequence
- Central dispatch control via dispatch cockpit in EWM and loading status in TM
- Loading space-optimized loading according to TM specifications
- Direct integration of yard management
- Simplified delivery split through system integration for
- loading
- Rescheduling
- Fully or partially automatic remaining quantity planning
The following variants (here using outbound as an example) are available for this:
The TE (transport units) scenario:
The ASR (Advanced Shipping & Receiving) scenario:
The integration with SAP EM (Event Management) in the SAP TM standard accelerates the exchange of information in the transport process in many places and enables your company to work on the basis of Logistics 4.0. The SAP TM Collaboration Portal is particularly noteworthy in this respect
Collaboration Portal
Web-based dialogs or apps
- For your own drivers
- Routes and order display
- Feedback on expected events
- z. e.g. start and end of unloading, arrival,
- Further
- Unexpected events, delays e.g.
- Delay due to traffic jam
- Vehicle damage
- Transport and material damage
- Further
- For freight forwarders
- Clarification management of billing differences
- Online - Transmission of claims
- Tender transmission and response
- Routes and order display
- Feedback on expected events
- z. e.g. start and end of unloading, arrival,
- Further
- Unexpected events, delays e.g.
- Delay due to traffic jam
- Vehicle damage
- Transport and material damage
- Other
- For suppliers and other service providers such as ports or airports
- Goods have been shipped or made available for loading
- Delays and unexpected events
- Integration of service provider notifications via interfaces (e.g. CEP / general cargo deliveries)
- Integration of freight exchanges and portals
- Cold chain monitoring and telematics
SAP TM offers an open platform for establishing individual tendering or free awarding. Depending on the settings, SAP TM issues tenders fully automatically or independently with the respective release stages by the dispatcher and awards orders automatically or semi-automatically.
Tendering can be carried out in many different ways:
- Sequential: Transmission to several service providers simultaneously
- Serial: Transmission to individual lists of service providers one after the other
- With time control
- If a service provider declines
- Flexible communication channels
- Online collaboration portal included in SAP TM
- EDI
- Fax
- Via a freight portal
Cost determination, monitoring and control are a concern for both decision-makers and operators in day-to-day business, as they often account for a double-digit percentage of company costs. SAP TM enables transparency on the basis of individual transports through to annual and real-time costs in a flexible and graphical form. Cost calculation includes the following functions:
- Real cost determination based on planning with GIS system or trip and flight plans
- Master data-based cost allocation of individual transport costs down to HU level and distribution to various internal and external cost centers
- Establishment of credit note procedures
- Automatic technical and commercial invoice verification and
- Automated and semi-automated invoice approval
- Invoice clarification management for interaction with service providers
- Further
Keep site of your transport and logistics world with SAP TM. Individually organised dashboards show you the latest data and effects e.g. with regard to customers, suppliers and service providers with time and region filters on all end devices (e.g. in apps).
- 10 standard BW assessments
- Real-time cost transparency
- Framework to be expanded individually
- Real-time tracking of deliveries and warehouse status (when using SAP EWM / EM)
In combination with SAP warehouse management for intralogistics processes, this also enables improvements in the notification and provision of goods as well as time slot booking and yard management.
The result: optimal interaction between warehouse and transport.
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