SAP Transportation
Management (SAP TM)
This specialist article describes how you can use SAP Transportation Management to make your transportation management efficient and your supply chain consistent.
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What is SAP Transportation Management?
SAP Transportation Management (SAP TM) is an SAP software solution that maps all aspects of the transport process from order entry and execution to control and freight settlement. The software is used for transportation planning and execution and supports users in optimizing the material and goods flow, which reduces transport costs in the long run.
SAP TM integrates the fleet and logistics management in the entire network and helps reduce complexity, increase efficiency and improve agility for a more sustainable and risk resistant supply chain.
SAP Transportation Management supports all activities regarding the physical transport of goods. This includes, for instance, the
The application can also be used to execute bid invitations of transport services, transport monitoring, calculation of transport costs as well as to consider foreign trade and dangerous goods regulations.
SAP Transportation Management is consistently connected to relevant logistics processes and IT systems. The deep integration with solutions such as SAP Extended Warehouse Management (EWM) and SAP S/4HANA enables a consistent supply chain by using SAP TM. Companies benefit from:
SAP TM is fully integrated into the SAP S/4HANA system but can also be used as an independent system.
What are the current challenges in transport logistics?
Today, the logistics market is more global than ever before. National and international transports are indispensable. Therefore, efficient supply chain management becomes more and more complex in spite of the increasing digitization of logistics processes.
Major challenges in the transport industry are, in particular, the increasing cost pressure and the frequently inefficient use of transport means such as hardly utilized truck capacities: only 50 percent of the trucks within the EU are fully loaded.
A good network of external freight forwarders and service providers as well as the appropriate software ensure an optimized management of all transport events and processes. Especially in this strongly internationally oriented industry, these factors therefore gain more and more importance.
What benefits and advantages are provided by SAP Transportation Management?
SAP Transportation Management increases the effectivity of transport logistics due to the automation and consolidation of numerous operations. Digitized processes considerably reduce complexity. A homogeneous system landscape ensures a consistent data basis. Real-time insights and monitoring by the system enable swift responses to unexpected events and quick decisions can be taken. Further advantages of this application:
FIS complements these benefits by its FIS/tm+ project turbo. This methodology specifically provided for the SAP TM implementation enables a particularly convenient and rapid implementation of the Transportation Management software, which complements the SAP standard version.
How does it function and what does the FIS/tm+ implementation template mean?
The FIS/tm+ project implementation template accelerates the implementation of SAP Transportation Management as important transport processes have already been predefined. Furthermore, the required Customizing has been preset.
The template can be used as a basis for the process design, with subsequent Customizing and developments. Alternatively, it supports users in an agile project procedure, e.g. in the creation of user stories and the definition of sprints. Even a hybrid project procedure by combining both methods is possible – individually tailored to your requirements.
All template processes and features are configured as consistent end-to-end processes that are seamlessly integrated into the ERP system as well as adjacent logistics areas. FIS/tm+ optimizes planning and billing processes, such as the ideal route determination for your vehicle fleet or the selection of the most favorable freight forwarder.
Early system training courses with comprehensive documentations make Transportation Management users familiar with the software solution, which shortens the explore phase.
The facilitated SAP TM access and the considerably faster software implementation reduce the project costs significantly.
Benefit resulting from the FIS/tm+ implementation template
What kind of enterprise is SAP S/4HANA TM suitable for?
SAP S/4HANA TM Basic Shipping is particularly designed for shippers.
The comprehensive SAP TM Professional Shipping variant is particularly addressed to enterprises with their own vehicle fleets and more complex transport processes as well as logistics service providers. It provides enhanced functionalities, in particular for optimized transportation and load planning, as well as higher process automation.
In addition, the SAP TM Professional Shipping full version includes different optimization servers, e.g. for efficient and least-cost route determination or an automated selection of freight forwarders for shipment cost calculation.
What does the SAP TM scope of services include?
SAP S/4HANA SAP Transportation Management meets the comprehensive requirements to transport and logistics management with regard to the numerous functionalities and all upstream and downstream processes. The application can be used, for instance, to enter shipping orders and transport services as well as to create freight bookings.
SAP TM supports users in analyzing, creating and optimizing complex transportation plans. Cost efficiency analyses, forecasts and preliminary calculations can also be made in the Transportation Management system.
The focus is on the system mapping and planning of the following Transportation Management core processes:
Detailed listing of the SAP TM functional scope
Strategic freight management
SAP Transportation Management optimizes freight purchasing and reduces the costs at the same time. It permanently monitors all trade and transportation agreements.
Order management
Correct order entry and efficient order management are mandatory in the logistics industry. With SAP Transportation Management, you can receive order and delivery based transport requests from different order management systems.
Transportation planning
An optimized transportation plan reduces transportation costs and ensures on-schedule goods deliveries by means of manual, map-based and automated functions that provide relevant insights and synergies.
Transport execution
Improved transport coordination does not only reduce costs, but enables you to respond faster and more flexibly to possible delays and malfunctions to ensure that the purchase order arrives at the customer’s site at the requested time and place.
Freight cost management
The Transportation Management system provides comprehensive functionalities for calculations and settlements of freight forwarders and customers as well as a well-founded basis for audits and reports. The transportation costs are reduced due to a higher accuracy and transparency in transportation cost determination.
Analyses and reports
By using graphical dashboards and immediately available reports based on real-time data, data can be easily visualized and fast decisions made. This enables an efficient controlling of transport operations, transparency in transportation planning and customer satisfaction.
How can SAP EWM and SAP TM be seamlessly integrated with Advanced Shipping & Receiving?
The efficient processing of sales orders and the seamless integration of warehouse management and transportation planning require more than just system-based support. SAP EWM and SAP TM need to cooperate harmoniously in order to ensure a quick and effective order processing process from a logistics point of view.
Conclusion
SAP Transportation Management (SAP TM) offers a comprehensive solution for the challenges in the field of transport logistics and enables companies to efficiently control and optimize their transport processes. The integration of SAP TM into existing systems such as SAP S/4HANA and SAP EWM ensures a consistent supply chain as well as transparency and efficiency of the entire logistics process.
The software solution handles current challenges such as cost pressure and the inefficient use of transport means by supporting the automation and consolidation of processes. Companies benefit, for instance, from improved planning, real-time analyses and optimized freight settlement. As a result, transportation costs are reduced and productivity is increased.
The FIS/tm+ implementation template considerably facilitates the implementation process by providing predefined processes and necessary Customizing. This leads to faster system availability and lower project costs.
Altogether, SAP TM is particularly suitable for companies with complex transport requirements and in search of a flexible and high-performance solution to optimize their logistics processes and remain competitive.
