Transportation Management
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SAP Transportation Management (SAP TM) is a module for the comprehensive management and optimization of transportation processes. Companies benefit from an application that covers both strategic and operational tasks—from freight order management and transportation planning to transportation execution and freight cost settlement.
With S/4HANA, TM is integrated into the ERP core and can be used in its basic version without a license. SAP Transportation Management (SAP TM) fully replicates the familiar functionalities of LE-TRA, but in a new and modern module. In addition, Advanced TM offers numerous new and enhanced functionalities that were previously unavailable in the classic ERP system.
With SAP TM, you can precisely plan transportation requirements based on ERP documents, efficiently manage freight units and freight orders, and transparently analyze all relevant data. Companies can streamline transportation processes, sustainably reduce costs, and respond flexibly to changes.
The business purpose of freight order management is to generate transportation requests derived from the ERP system. Purchase orders, sales orders, scheduling agreements, and shipments from the ERP system form the basis for creating transportation-related documents, such as freight units and transport units. A freight unit is the smallest unit to be transported. It represents a group of goods that are transported together through the supply chain and contains transport-related information, such as quantities and destinations. In contrast, a transport unit—such as a trailer or a container—serves to consolidate freight units and represents transport requirements or capacities. When ERP documents change—such as changes to dates and quantities—the associated TM documents are automatically synchronized. This synchronization enables transport planning to work with the most up-to-date information and thus assess the impact on its transport processes.
During planning, freight orders and freight bookings are generated based on the freight units created earlier. Various options, such as the desired delivery date, capacities, and loading times, can be taken into account. Planning involves reviewing and optimizing how transport requirements can be fulfilled as efficiently as possible. The system determines whether to create new execution documents or supplement existing ones in order to optimally manage the transport process. The freight orders and freight bookings can then be transmitted to the responsible carrier.
During execution, the planned freight orders and freight bookings are transferred to the implementation phase. In this process, the agreed-upon shipments are handled by the carriers, and the actual transportation activities—such as pickup, loading, and delivery—are monitored and controlled. A key element here are so-called events, which are status messages or occurrences that are set automatically or manually and serve to track individual transport segments. SAP TM offers options for mapping such events, provided the relevant information is transmitted to the system. An example of an automatically generated status is “loading complete,” which is recognized and documented by the system. In addition, events can be imported from upstream documents, such as when a shipment has already been loaded or a container has left the warehouse. In addition to predefined events, SAP TM also allows you to define and customize your own events. This enables flexible mapping of company-specific requirements and the integration of transport control. The configurable events allow for precise control over critical events and promote transparency throughout the transport chain.
This component is used to generate freight cost estimates and create freight cost accruals. This prepares the system for the review of invoices issued by carriers for transportation costs based on freight documents such as freight orders and freight bookings. To settle freight costs, a freight agreement is first concluded with the carrier based on the existing contract. In this context, a corresponding calculation scheme is defined, which provides a framework with pricing tiers based on factors such as weight, volume, or dimensions. This allows the expected freight costs to be calculated in advance. During the execution phase, actual data such as quantities and times are incorporated, resulting in realistic settlements that support both logistics invoice verification and financial accounting. Through cost allocation, freight costs are transparently and traceably allocated to various cost sources at the cost element level for relevant business processes, thereby providing targeted support for controlling.
Covers the modules related to analytical capabilities in SAP TM. SAP Transportation Management (SAP TM) offers powerful analytical functions that link and analyze operational data from various areas. The goal is to gain in-depth insights into transportation processes and support data-driven decisions at both the operational and strategic levels. The analyses are based on both current and historical data, thereby creating a high degree of transparency throughout the entire transportation chain. This enables companies to react more quickly, optimize processes in a targeted manner, and improve their logistics in a sustainable way.
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