SAP Transportation Management with S/4HANA 1709
By Franz Hero, SVP and Head of Digital SCM
SAP Transportation Management (SAP TM) is now available as an embedded solution in S/4HANA. It’s a compelling offering for shipper industries, combining best-in-class, proven transportation management capabilities with the benefits of the S/4HANA system.
Watch our video – I talked to @PeterFlensberg, Chief Product Owner SAP Transportation Management, on highlights in SAP TM in S/4HANA 1709:
SAP Transportation Management (SAP TM): A Winning Solution
A few years ago, we launched our new SAP Transportation Management solution (SAP TM) – uniting both transportation planning and execution processes in one, advanced, state-of-the-art solution. Our clear strategy and continuous, strong investment quickly established SAP TM as the leading transportation management system in the market.
Today, SAP TM is a world-class solution with complete, end-to-end transportation process support – from strategic freight management, order management, transportation planning, booking, tendering and subcontracting, through to freight execution, costing, settlement, analytics and reporting.
It is really an impressive offering! We have developed SAP TM to successively support different market segments, starting with shippers, then logistic service providers and carriers. And our powerful freight planning capabilities cover domestic, international, multi-mode and multi-stage shipment planning across inbound, outbound, and intercompany freight!
Thankfully, I can say that this strategy was right and our strong investment paid off. Today, SAP TM has approximately 700 customers around the globe, across all relevant industries and market segments. It is a great testament to hear how SAP TM is helping so many companies improve process efficiency, real-time visibility and ultimately reduce freight costs.
Given this success, it was an obvious next step to make this winning solution also available in SAP’s new generation enterprise resource management system, S/4HANA.
Embedded SAP TM in S/4HANA: What is it?
SAP TM in S/4HANA provides our customers with a deployment alternative.
Our strategy is to deliver a common core – developing one code-line for transportation management – and delivering this for different deployment options for customer’s needs.
What does this mean? Formerly, SAP TM was only available as an add-on solution, that could be run either standalone or together with warehousing, as part of the SAP Supply Chain Execution platform. This deployment option is particularly interesting for companies running separate ERP (ECC) instances for divisions/subsidiaries, yet want to centralize and consolidate logistics planning and execution management.
Today, SAP Transportation Management is also delivered as an embedded solution in S/4HANA – SAP’s new enterprise resource management suite. It’s a smart, strategic move to make our proven transportation software, and the continuous innovation here, also available in a centrally-deployed ERP suite.
This first release for SAP TM embedded in S/4HANA, leverages our core capabilities for shipper industries.
SAP TM in SAP S/4HANA 1709: What’s in it for you?
SAP S/4HANA 1709 has a compelling value proposition for shippers.
Leveraging the world-class TM solution with the latest innovations
Because it is leveraging the same TM code line – you get all the core, proven capabilities from SAP TM developments to date, as well as the new 2017 innovations – all in the first release embedded in S/4HANA!
For example, you benefit from recent innovations, such as the Gantt chart–based planning, optimization planning with package building, load consolidation and 3D load planning, driver management etc.
You also have the new SAP TM 9.5 shipper-relevant innovations built-in. Here, we deliver important enhancements in general usability, performance optimization (i.e. faster vehicle scheduling and routing, load consolidation planning etc.), as well as round-offs for manual planning, air and ocean freight management, charge management and industry-specific enhancements (i.e. flexible stop duration for retail).
The additional benefits of a single, unified system
With S/4HANA, you have a simplified system landscape – one system – with a common user experience across all business areas. As both SAP Extended Warehouse Management and SAP Transportation Management are now embedded in S/4HANA, we support end-to-end logistics processes. These solutions are also seamlessly integrated with S/4HANA supply chain, procure-to-pay and order-to-cash processes to enable end-to-end planning and execution across product development, manufacturing, quality, warehousing, and transportation.
Companies can also leverage new capabilities for transportation that are made available via the central S/4HANA platform. For example, you can use the data modelling infrastructure (and Core Data Services (CDS) views) for embedded analytics in S/4HANA TM. These CDS views can be used for dashboards and analytics i.e. for landed costs analysis and real-time performance visibility.
(Embedded analytics in SAP S/4HANA Transportation Management 1709)
Finally, embedded TM in S/4HANA is designed to reduce implementation time and total cost of ownership. Direct integration, as well as harmonized master data and objects eliminate the need for middleware and the resulting data latency and synchronization errors.
Where can you find out more?
I am excited about the new S/4HANA 1709 release. It is an important milestone for my Digital Logistics solutions SAP TM & SAP EWM. As such, I invite you to find out more. In the following links, you can learn more about our SAP TM solution, the flexible licensing alternatives for SAP TM in S/4HANA (“Basic Shipping” and a full capability scope option with “SAP S/4HANA Supply Chain for Transportation Management”), as well as the roadmap plans (i.e. extension for logistics service providers / freight forwarders, integration to the new SAP Global Track & Trace, and planned SAP Logistics Business Network solutions etc..)
Learn more about embedded SAP TM in S/4HANA:
SAP TM embedded in S/4HANA Release 1709
o What’s new
o Feature Scope Description
o Overview of TM in S/4HANA and Roadmap
General SAP Transportation Management information
o SAP TM Product Page on sap.com:
o SAP Community for Transportation Management:
o SAP Transportation Management Group on LinkedIn:
Stay tuned for more details on the 2017 innovations for SAP TM in a next blog on SAP TM 9.5.
Franz Hero on Twitter
If you’d like to follow me on Twitter too, you can find me at: https://twitter.com/HeroFranz