DSC
TMS-class solutions - SAP TM
Tomasz Pudelski
SAP Transportation (TM) Consultant
About the service
TMS-class solutions - SAP TM
SAP Transportation Management consolidates orders and optimizes transport. End-to-end integration from planning to settlement lowers costs and increases control over logistics.
Benefits
Service benefits
Freight cost known before shipping
Automatic carrier invoice verification
Data-driven carrier selection
One process instead of spreadsheets and emails
What SAP TM covers
From order to carrier selection to freight settlement against the invoice.
Planning and optimization
- Transportation demand from SAP - sales orders, deliveries and purchase orders automatically create transportation documents in TM, with no data re-entry.
- Manual and automatic planning - the planner works on the transportation cockpit, while the VSR optimizer builds routes and consolidates shipments based on cost, time and constraints (Advanced scope).
- Multimodal transport - road, ocean, rail and air in a single process.
- Load optimization - better utilization of vehicle and container space, with visualization of cargo placement (Advanced scope).
Execution and carriers
- Freight orders - a single document ties together route, load, carrier and cost, with a full change history.
- Carrier tendering - the request goes out to a list of carriers sequentially or in parallel, the system collects responses and assigns the order to the accepted offer (Advanced scope).
- Carrier selection - ranking based on contracted cost, priority and volume allocation, instead of decisions made from memory by the planner.
- Execution statuses - loading, departure and delivery confirmations visible to the planner and Client service.
- Warehouse collaboration - linked to SAP EWM and yard check-in via SAP Yard Logistics.
Costs and settlement
- Freight agreements and rate tables - carrier rates, fuel surcharges and additional fees in one place, with defined validity periods.
- Pre-shipment calculation - freight cost known already at the planning stage, not after the invoice arrives.
- Carrier settlement - the settlement document creates a service entry in MM and enables verification of the carrier invoice, with discrepancies visible immediately.
- Cost allocation - allocating freight to orders, Clients and products.
- Customs compliance - initiating declarations and checking compliance through integration with SAP GTS.
Integrations and analytics
- One system instead of interfaces - TM operates inside SAP S/4HANA together with SD, MM, EWM and FI, without data exchange between separate installations.
- Operational analytics - dashboards for cost per unit of transport, delivery timeliness and vehicle utilization.
- Carrier communication - EDI, carrier portal or email form, with no requirement for the carrier to have a system of their own.
- Network collaboration - document and status exchange via SAP Business Network for Logistics.
Implementation
We start the implementation by defining the scope: Basic or Advanced Shipping. Next comes process analysis, configuration of planning and settlement, integration with SD, MM and EWM, a pilot on selected lanes, and rollout. Delivered in stages, to limit risk and unnecessary cost.
Analysis
We review transportation processes, volumes and route structure. We determine whether Basic or Advanced Shipping scope is needed and what result can realistically be achieved.
Configuration
We set up order types, planning, freight agreements and settlement, along with carrier selection rules tailored to your transportation processes.
Integration
We connect SAP TM with SD, MM, EWM and FI, as well as with carriers via EDI or a portal, ensuring a consistent flow of documents, statuses and costs.
Pilot
We launch the solution on selected lanes or with selected carriers, compare calculated cost against invoices, and fine-tune the configuration.
Rollout
We extend TM to further lanes, transport modes and companies, transfer knowledge to the team, and provide support after go-live.
Digital Supply Chain
What is DSC?
Digital Supply Chain is an integrated ecosystem of processes, systems and technologies that enables intelligent planning, execution and real-time monitoring of the flow of materials, goods and data.
By leveraging solutions such as SAP S/4HANA, EWM, TM, IBP and integrations with automation, IoT and artificial intelligence, Digital Supply Chain enables companies to increase operational flexibility, respond faster to market changes and improve the efficiency of the entire supply chain - from planning through to delivery.
