Your potential savings with SAP TM (SAP Transportation Management)

SAP offers you numerous possibilities to provide transport processes with efficient support. Through the SAP ERP (SAP Enterprise Resource Planning) possibilities of the LE-TRA, SAP provides the SAP Transportation Management (SAP TM).



By using SAP TM (SAP Transportation Management) you efficiently support the improvement and automation of all processes relevant to transport, e.g. freight cost billing or transport planning and bidding. By integrating SAP EWM (SAP Extended Warehouse Management), the improvements are already made in your warehouse. There is no need for external transport management systems at all. Interfaces, dependencies and costs will be significantly reduced.

IGZ facilitates efficient transport processes with the optimal combination of SAP Transportation Management (SAP TM) and SAP EWM (SAP Extended Warehouse Management). 



With a well thought out software solution in the transport process, you can standardise processes and tap into savings potentials in single and double-figure percentages.



Quantitatively speaking, freight costs can be reduced while at the same time increasing the transparency of the courier services. This allows, on the one hand, the possibility to select the carrier with the best price and, on the other hand, puts you in a better negotiating position for carrier contracts.

The SAP Transportation Management (SAP TM) supports you in the following areas:

  • Freight cost simulation
  • optimised freight cost shipping (depending on the agreed freight volume)
  • automated carrier selection
  • Tendering
  • Transport planning (multi-modal)
  • Pre-combined trips and block space agreements
  • Service provider service level and quality monitoring
  • Packaging item and cargo bay planning
  • Event management
  • etc.

SAP TM (SAP Transportation Management) function examples:

Condition management transport service provision or fleet

SAP TM, as an extension to SAP ERP, offers substantially more extensive and at the same time simpler possibilities of storing complex conditions tables and for maintaining it with simple tools. For example, the following modes of transport can be stored and also compared with one another

 

  1. KEP
  2. General cargo
  3. FTL, LTL (Full Truck Load, Less than Truck Load)

Multi-modal variations can also be taken into consideration in further planning for these framework conditions 

The conditions tables can show variations with 9 dimensions each.
Examples for these dimensions include:

 

  1. Kilometre price
  2. Loading metre price
  3. Zones
  4. Cbm – kg ratio
  5. Grading by weeks - holiday
  6. Many more dimensions

Automated condition maintenance is possible for the management of large quantities of freight agreements (mass maintenance). Moreover, a simple tariff price table is available to download and upload in the standard software with the help of Excel. In this way, complex agreements, such as time-related and/or regional surcharges or rebates can be efficiently taken into consideration.

Cargo bay and capacity optimisation

Cargo bay and capacity optimisation are an important element for better use of permanent cost-intensive transport and to save on kilometres and CO². On the basis of the previously calculated data or shipment HU data transferred from the warehouse (e.g. SAP EWM through standard integration), SAP TM optimises your resource efficiency in the following areas:

  1. Package optimisation    

    1. Cardboard boxes
    2. Pallets, pallet cages 
    3. Individual containers
    4. Etc.

  2. Optimisation of modes of transport

    1. HGV

      1. Axle load restrictions
      2. Zoned transport - e.g. refrigerated areas
      3. Stacking
      4. Stop sequences
      5. Multi-level load units

    2. Containers
    3. Waggons

      1. A comfortable solution with efficient and visually attractive interfaces was already included in the standard SAP TM software. The user interfaces are based on graphic representations incl.

    4. Drag&Drop
    5. Coloured marking of e.g. receivers, goods groups, stackability, …

      1. Restrictions and conditions like a loading pattern, stackability, capacity compression or consideration of hazardous materials are of course included.

Transport planning IGZ

The flexible and combined planning of the most varied transport needs - generated, for example, from the SAP documents below, can be planned and implemented together:

  1. Inbound (order)
  2. Outbound

    1. Customer order (released or not)
    2. Store order
    3. Offer

  3. Return transport (customer or store)
  4. Relocations (relocation, production supply)

 

1. Inbound (order)

2. Outbound

 

a. Customer order (released or not)

b. Store order

c. Offer

3. Return transport (customer or store)

4. With the integrative features of SAP TM, flexible planning on the basis of plan data, on the basis of real-time events and even during a tendering process is possible.

In the case of tariffs/costs down to the kilometre, a plan is made on the basis of road kilometres (with GIS system). These will of course be determined on the basis of real transport data, rights of way restrictions (bridge heights) as well as loading and unloading area restrictions (e.g. pedestrian zone). It is therefore also possible to use a GIS optimisation algorithm agreed with a freight service provider in order to guarantee an accurate invoice verification afterwards.

The optimiser integrated into the SAP TM of course takes into consideration other restrictions, such as:

  1. Transport costs
  2. Form of transport (air, land, sea)
  3. Mode of transport (type of vehicle)
  4. Transport duration
  5. Capacities

    1. Cargo bay
    2. Driving periods
    3. Resource features (e.g. cannot deliver using a ramp or in the centre of town)
    4. Driving schedules
    5. Much more

  6. Automated label planning

    1. Drop & Hook
    2. Trailer Swap

  7. Quality features of the service provider

Dispatchers and drivers, as well as others involved in the transport process, can also profit from the following displays in multi-modal scenarios using a strong and supplier-independent GIS integration of a visual card display (online or on the SAP system):

  1. Trips
  2. Locations with transport needs
  3. Vehicle locations
  4. Other
Route optimisation with SAP TM and IGZ

With SAP TM, planned routes can be fully automated, partly automated (suggestion - editing - released), or created and released entirely manually. Transport routes are optimised on the basis of

  1. The SAP TM internal optimisation algorithm
  2. The integration of GIS systems (e.g. Google Maps, PTV, Here Maps, Navision…)
  3. Schedules/standard routes
  4. Transport combination possibilities
  5. Consideration of services (e.g. fumigating, waxing, packing, loading wooden crates,...)
  6. Consideration of relevant real-time events
SAP EWM Integration mit IGZ

The SAP SCM platform offers access and use of a standard database for warehouse and transport master data alongside the standard system integration with ERP. This brings many new optimisation scenarios for the logistics process along with it:

  1. Transport planning based storage box dispatch possible

    1. Picking wave development on the basis of the loading sequence

  2. Central dispatch control through the dispatch cockpit in the EWM and load status in TM
  3. Cargo bay-optimised loading according to TM specifications
  4. Direct integration

    1. SAP dock appointment scheduling
    2. Yard-Management

  5. Simplified delivery split through system integration for

    1. Loading
    2. Rescheduling
    3. Fully and partly automated planning for remaining quantities

[Translate to English:] Track & Trace mit Eventverfolgung

With the integration with SAP EM (Event Management) which exists in the SAP TM Standard, you can speed up the exchange of information in the transport process in many places and facilitate your company for work on the basis of Logistics 4.0. In this context, the SAP TM Collaboration Portal is to be highlighted above all

  1. Collaboration Portal

    1. Web-based dialogue or apps

      1. For own drivers

        1. Routes and order display
        2. Feedback on expected events

          1. e.g. start and end of unloading, arrival,
          2. Other

        3. Unexpected events, delays e.g.

          1. Delays caused by traffic
          2. Vehicle damage
          3. Transport and material damages
          4. Other

      2. For carriers

        1. Clearance management accounting differences
        2. Online – Conditions forwarding
        3. Tender forwarding and response
        4. Routes and order display
        5. Feedback on expected events

          1. e.g. start and end of unloading, arrival,
          2. Other

      3. Unexpected events, delays e.g.

        1. Delays caused by traffic
        2. Vehicle damage
        3. Transport and material damages
        4. Other

      4. For suppliers and other service providers like harbours or airports

        1. Goods are dispatched or made ready for loading
        2. Delays and unexpected events

  2. Integration of service provider reports through interfaces (e.g. KEP / general cargo deliveries)
  3. Integration of freight exchanges and portals
  4. Cold chain monitoring and telematics

SAP TM offers an open platform to establish individual tenders or free allocation. Depending on the settings, SAP TM invites tenders fully automatically or with release stages through the dispatchers independently, and awards contracts automatically or semi-automatically.

Tenders can be carried out in many different forms, e.g.

  1. Sequential: Forwarded to several service providers at the same time
  2. Serially: Forwarded to an individual list of service providers successively

    1. With time control
    2. In the case of decline by a service provider

  3. Flexible communication paths

    1. Collaboration Portal included in the SAP TM online
    2. EDI
    3. Fax
    4. Email
    5. Through a freight portal

Cost calculation monitoring and checking requires both decision-makers and operators in day-to-day business because they often incur 2-figure percentage values of the company’s costs. SAP TM facilitates transparency on the basis of individual transport, to annual and real-time costs in a flexible and graphic representation. The cost determination includes the following functions

  1. Real cost determination on the basis of planning with GIS system or driving and flight schedules
  2. Master data-based cost distribution of individual transport costs up to HU levels - and distribution across different internal and external cost centres
  3. Establishing credit note procedures
  4. Automated professional and commercial invoice verification and
  5. Automated and semi-automated invoice release
  6. Invoice clearance management for interaction with service providers
  7. Other

In synergy with the SAP warehouse management for the intralogistics processes, it also facilitates an improvement in the notification and preparation of goods as well as the time slot booking and yard management.


The result: optimum synergy between storage and transport.

SAP Warehousing modules