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Transportation Planning in SCM APO

Transportation Planning and Vehicle Scheduling is a part of SCM APO. Some people are aware of it. But it still is a somewhat unknown quantity. In this blog, I will give you an overview about the TP/VS submodule in APO.   This module is responsible for automatic planning for Logistics execution. The actual execution still takes place in SAP R/3. But here we can optimize and plan shipments. This can be done automatically by the optimizer.   Here everything works on costs. The constraints are modeled as soft or hard constraints. Soft constraints just add some hypothetical cost (set in the system) so that the constraint is followed but waived off at a cost. You can put constraints on virtually everything associated with transportation planning.   The input is Sales order or Delivery or Stock trasfer order. In case of a Sales Order, the order is broken down into freight units if required (according to the split rules). Then the freight units are planned and optimized into temporary shipments. Here they are consolidated and accociated with Means of Transports and Forwarding agents (all of which can be done automatically). Then the delivery can be generated followed by a shipment generation in R/3. The communication between R/3 and SCM takes place through the core Interface.  In SCM, transportation lanes are maintained which contain all the information (like, duration, stages, stop offs, forwarding agents, Means of Transports etc). These Transportation lanes form the basis of all the calculations.  I feel that the most important part of this is automatic transportation planning in SCM is when it is called from R/3. It is possible to do a combined transportation planning and ATP check when creating or changing a Sales Order. This is amazing facility. It enables businesses to promise the quantity and give a realistic idea about the delivery of products at the time of creating a sales order itself. This functionality is called Dynamic route determination called from R/3. It not only does the transportation planning, but modifies the schedule line date and time accordingly. The ATP check is modified and carried out in accordance with Transportation planning. Hence if some order has to be delivered after 10 days, and transportation time is 2 days,  then the availability check will be done for 8 days from now.   It really has a great potential. Especially for an enterprise which has its own transportation system in place, it can be a great cost saver.  
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  • Hi Ankur,

    I am looking to break into SAP APO post my MBA.I am jsut finishhing my MBA in Chicago and was looking to understand the SAP APO. I have done my a project in SAP APO at Hewlett Packard,Houston and I loved the product. I am basically looking for someone to guide me thru SAP APO not spoon feeding but some questions which persons like would be able to answer..more from the conceptual and implementation point of view.

    my personal email id is :


  • I also think TPVS gets less attention than it is worth. I also have some blog posts on TPVS in my blog (, mostly as a result of a TPVS implementation that worked quite well.

    Hope to find more TPVS posts here in SDN.

    Pedro Lima

  • Hi Ankur,

    Excellent Blog.

    We are in the process of evaluating the right technology for Transportation Management. We are already running on i2 and we are trying to analyze if SAP TP/VS can address our business needs and hence move to a consolidated SAP Platform.

    Our concern is more in the lines of Freight rating and maintaining them on an on-going basis.

    Apart from that, we keep hearing that  i2 has better algorithms which can help you build in a lot of constraints as compared to APO TPVS. How true is this statement.

    Can you email me at with responses.


  • Hi Ankur,

    I am interested in upgrading my SAP Skillset from SD to SCM & Transportation was the module in my mind. Can you please guide my of some links, where I could have a self learning on the same. Or may be if some useful document you could assist me with.

    My email id is

    Thanks & regards,
    Rajesh Banka

  • Hi,
       I would like to know the the process to Implement  Transportation  and Planning 5.0 in SAP APO environment  ,presently the client is using SD for  transportation and distribution.

          If you could mail me  implementation guide in regards to Transportation Managment it would help me a lot.

           Could u send me some links which will help me.I have refer to master Data sep-up and understood the process in

    Thanks & Regard

    • David,

      Continous moves are based on master data on the carrier master and the transportation lane.  These are both taken into account during carrier selection and if the time is great enough to allow both shipments to be considered for continous move the system will perform this.  You will see this in the carrier selection screens in VS01.  The windows for transportation will need to match to perform this.  Please let me know if you have any other questions.


      Paul Yoch

  • Hello Gupta,

    Excelente material of TP/VS, congratulations.

    See if you can help me, I’m working with TP/VS and had already configurated the order split and access sequence.
    I supose that when executing /SAPAPO/VS01 the system should consider my rules and execute the split of the orders.
    I’ve made a specific order that the system should consider to be splited.
    But this is not happening and when I go to the function to split order (even manually) by VS01, there is no order to be split.

    Best Regards

    Ubiratan Ibanez

  • hi ,
    When i am trying to run the VS optimizer, i get an error message as “optimization failed”. the message gives no other details.
    Can you provide a solution for this