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What is SAP TM module?

Understanding SAP Transportation Management

If you will want to make a difference in an industry, you will be wholly reliant on efficient transportation logistics. Today, many companies think about logistic process and logistic costs in grown global economy. SAP gives solutions for every sectors and also gives for transportation management solutions and answwer this questions for you.

• How can I manage my logistics network in a holistic fashion?
How can I minimize the risk factors throughout my supply chain?
• How can I reduce my operational costs and better understand transportation costs at the customer level?
How can I ensure best possible usage of my assets?
How do I ensure high customer service levels and responsiveness to unexpected supply chain events?
• How do I ensure I am compliant with all the varying regulations and compliance policies?

Solutions:

 

Reduced costs and improved operational performance

• Improved carrier collaboration and resource utilization

Efficient end-to-end order and process management

• Efficient logistics and fulfillment processes

Improved execution visibility and responsiveness

SAP TM is delivered with out-of-the-box integration, with order-to-cash and procure-to-pay scenarios to support timely execution updates.Integrated freight settlement with SAP ERP billing and invoicing is available for customers who want to increase the speed at which business process cycles are executed. This includes forwarding, freight (land), and booking (sea and air) order and intermodal scenarios.

 

Interactive and Mass Processing

You could be managing freight planning and adavanced interacitve planning. This tool allows users to see order details and maps of transit routes. It allows planning to happen both interactively and via mass processing.

 

Document Management

This includes document creation, status management, printing of bills of lading (road, sea, air), labels, forwarding instructions, and more. These could include freight forwarding orders (FWO), sales order-based transportation requirements (OTR), and delivery-based transportation requirements (DTR). The freight unit is a transport unit used in planning. It could be a pallet or container, but it could also be two pallets that need to be transported together, for example for customs reasons.

 

Order Management

If you choose to integrate with an SAP ERP system, SAP TM would be integrated by means of Process Integration (PI) interfaces. Orders and deliveries from SAP ERP can be converted into SAP TM transportation requirements automatically. If you run SAP TM as a standalone system, LSP Forwarding Order creation is either done by manual entry in the SAP TM UI, or integrated from a customer’s system via EDI.

 

Transportation Planning

SAP TM perform advanced planning activities. Some of the planning processes delivered with SAP TM are as follows:

• Transportation cockpit (affords visibility)

Planning and optimization

• Carrier selection

Order tendering

 

Transportation Execution

These integration tasks include the following:

• Integration with SAP Event Management (EM) for alerts and transportation tracking

Generation of delivery documents in SAP ERP

• Generation of shipping documents in SAP ERP or (via interfaces) other systems

Integration with dangerous goods management as part of SAP Environment, Health and Safety (requires separate license)

• Document printing

Integration with SAP Extended Warehouse Management (EWM)

• Application of analytics to analyze and adjust business processes

 

Freight Settlement

The settlement process supports the following:

Ability to define transportation charges

• Definition of freight or forwarding agreements

Generation of settlement documents

• Integration of settlement documents to SAP ERP

Integration of customer billing to SAP ERP

 

In this article, I wanted to give information about SAP TM and its general contents.
In the next article, it will contain about the technical information and structure.

 

Best Regards.

 

Atılay

 

1 Comment
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  • Thanks Atilay.  This article is quite informative. Can you please throw some light over specific features which were not there in SAP logistic? Basically I want to understand what are the benefits of TM from business perspective?