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Optimized Transport Processes withSAP Transportation Management

Optimized Transport Processes withSAP Transportation Management

Nowadays, the logistics market is more global than ever before and national and international transports are indispensable. Therefore, efficient supply chain management becomes more and more complex in spite of the increasing digitization of corporate logistics processes. Major challenges in the transport industry are, in particular, the increasing cost pressure and the frequently inefficient use of transport vehicles 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 provide for optimized management of transport processes. Especially in this strongly internationally oriented industry, these factors therefore gain more and more importance.

With more than 25 years of SAP expertise, the FIS logistics experts will attend you during the implementation of SAP Transportation Management (SAP TM) and support you with SAP in the optimization of your transport logistics. This means that FIS covers the essential parts of the SAP Supply Chain Execution portfolio – from Warehouse to Transportation Management.

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Your benefits using SAP TM

  • Consistent supply chain due to integration with SAP solutions such as SAP EWM and SAP ERP
  • Higher productivity due to process automation
  • More transparency due to cross-system document flows as well as “Track & Trace” functions
  • Better cashflow due to improved order calculation and settlement
  • Standardized logistics by means of a uniform platform and central data management
  • Well-founded decision basis due to real-time analyses

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Digitization of transport processes with SAP Transportation Management

SAP Transportation Management is a transport management system that is completely integrated into SAP S/4HANA, but can also be used as an independent system. 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. Here, it is consistently connected to relevant logistics processes and IT systems, such as SAP EWM (warehouse management) or your ERP system.

FIS supplements these advantages with the project turbo FIS/tm+. With this template solution, which has been specially provided for the introduction of SAP TM, FIS enables you to implement SAP TM particularly conveniently and quickly.

An essential basis for SAP Transportation Management is the SAP HANA database. Due to the availability of real-time data, users can react faster to malfunctions or delivery delays and well-founded decisions based on uniform data can be made at any time.

SAP distinguishes between two functional scopes: “Basic” and “Advanced”. “Basic Shipping” is the Transportation Management variant already integrated in SAP S/4HANA and available without additional license costs. It replaces the SAP LE-TRA module existing under SAP ECC. The full SAP TM in the “Advanced” variant can be used in embedded form in SAP S/4HANA or as a local IT solution.

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Service scope of SAP TM

SAP TM meets the comprehensive requirements to Transport Management with regard to the numerous functionalities and the underlying processes. The software can be used to enter shipping orders and create freight bookings. Furthermore, SAP TM supports users in creating and optimizing complex transportation plans. Cost efficiency calculations and preliminary calculations are also possible to permanently reduce freight costs.

The focus is on a system mapping of the following Transport Management core processes:

With SAP TM, you can optimize your freight purchasing and lower your costs. Furthermore, you can continuously monitor your trade and transportation agreements.

  • Execution of feasibility studies
  • Freight forwarder/vendor negotiations
  • Direct conversion of forwarding agreement offers into usable forwarding agreements
  • Definition of transportation allocations

Correct order entry and efficient order management are mandatory in the logistics industry. With SAP TM, you can receive order- and delivery-based transport requests from different order management systems.

  • Creation of dynamically generated route proposals
  • Service product catalogs (e.g. container provision, container cleaning, enhanced temperature control, etc.)
  • Sales and price definitions
  • Customer contract definition
  • Sales orders (forwarding orders)
  • Shipment entry

Optimize your transportation planning to ensure that deliveries arrive on time and reduce your transport costs. Manual, map-based and automated functions will help you here and provide relevant insights and synergies.

  • Manual transportation planning via worklist or Transport Cockpit
  • Automatic planning including consolidation, freight forwarder selection, bid invitation and subcontracting
  • Transportation capacity planning
  • Optional three-dimensional load planning and automatic shipping unit creation
  • Axle load calculation
  • Calculation of transport duration, e.g. by means of map integration
  • Hazardous materials management taking prohibition of mixed loadings and special routes into consideration

Improved transport coordination does not only reduce your costs, but you can also react faster and more flexible to possible delays and malfunctions to ensure that the goods arrive at the customer’s site at the requested time and place.

  • Creation of freight documents
  • Track & Trace
  • Customs processing
  • Driver management
  • Data exchange via EDI
  • Connection of a Collaboration Portal for freight forwarders

The Transport Management system provides comprehensive functionalities for calculations and settlements of freight forwarders and customers as well as a solid basis for audits and reports. Due to a higher accuracy and transparency in transportation cost determination, the transportation costs are reduced as well.

  • Freight cost accounting for forwarding agents
  • Invoice verification for freight cost accounting
  • Purchasing and price definitions
  • Freight forwarder selection depending on cost/sales volume or quantity specifications
  • Optional credit memo procedure

By using graphical dashboards and immediately available reports based on real-time data, data can be easily visualized and fast decisions made. This enables efficient transportation control.

Faster implementation of TM with the Project Turbo FIS/tm+

Project implementation template FIS/tm+ accelerates the TM implementation 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 have been configured as consistent end-to-end processes that have been 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 car pool or the selection of the most favorable freight forwarder. Early system training courses with comprehensive documentations make TM users familiar with the software solution, which shortens the Explore phase. Thanks to FIS/tm+, a facilitated SAP TM access is enabled and the considerably faster software implementation lowers project costs.

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Your benefits through FIS/tm+

  • Faster SAP TM implementation with immediate system availability thanks to preset processes and features
  • Template processes for Basic Shipping and Professional Shipping
  • Detailed documentation of template processes for core activities in transportation
  • Standardized basis of understanding accelerates the project
  • Seamless connection to the ERP system
  • Early use of the software by all persons involved in the project due to initial training courses and workshops

FAQ on SAP TM

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 entire transportation planning of your company is optimized using SAP TM, thus ensuring transparent end-to-end processes. 

  • Consistent supply chain due to integration with SAP solutions, such as SAP EWM and SAP ERP 
  • Higher productivity due to process automation and optimization 
  • More transparency due to cross-system document flows as well as “Track & Trace” functions 
  • Improved cashflow due to optimized calculation and settlement of orders 
  • Standardized logistics by means of a uniform platform and central data management 
  • Well-founded decision basis due to real-time analyses 

SAP TM increases the effectivity of transport tasks due to the automation and consolidation of numerous operations. The complexity is considerably reduced due to electronic cooperation with freight forwarders for instance. The shared platform for managing data and tariffs ensures a consistent data basis. There, the data can easily be adjusted and distributed. Real-time insights enable instant responses to unexpected events and quick decisions can be taken. 

  • Strategic freight management 
  • Order management 
  • Transportation planning 
  • Transportation execution 
  • Freight settlement 
  • Analyses and reporting 

In its full version, SAP TM can either be used locally in a separate system or as integrated (embedded) version in an SAP S/4HANA system. Under S/4HANA, it is also possible to implement Basic Shipping (the lean version of SAP TM), which will replace the existing ECC LE-TRA module. 

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 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. 

SAP customers should plan an early transition to the advanced SAP S/4HANA TM transport software solution as transport processes are usually extremely complex and therefore have to be mapped individually in the ERP system. SAP LE-TRA and SAP TM Basic Shipping differ widely in terms of data structure and processing. This is why the transition can only be made by means of a greenfield approach, i.e. via a complete reimplementation of the transport software solution. 

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SAP Software for your Logistics Processes

Consultation and introduction of SAP EWM

The high-performance SAP Extended Warehouse Management (SAP EWM) software meets the highly complex requirements of advanced logistics, such as the implementation of material flow systems (MFS) or conveyor systems. Less complex warehouses can also be mapped via SAP EWM without any problems due to the software’s high scalability.

Consultation and introduction of SAP Stock Room Management

With more than 25 years of logistics experience and expertise, FIS supports you throughout the complete implementation of SAP Stock Room Management for small and medium-sized warehouses with manual processes.

Further services by FIS

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Success Story:

WMS and pick-by solutions accelerate logistics processes at Nipro

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Flyer:

SAP Transportation Management – Efficient implementation by FIS

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Please contact the FIS IT experts to achieve a consistent supply chain in your enterprise – from goods receipt and intralogistics to goods issue and Transportation Management: The SAP experts have know-how in process and IT consulting, development, integration and implementation of individual solutions as well as in support. Please give us a call or send an e-mail with your personal request.

Christian Toth
+49 9723 / 9188-798
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