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Author's profile photo Mrinal Kanti Roy

Capability of Multi drop with sequential Load planning in Transportation management of S/4HANA

Many industries specially Logistic retail, Pharma / food distribution companies deliver goods to multiple customers in a single trip and they need system support for transportation planning to optimize distribution to

  • Multiple customers in a area / zone
  • Loading of package (pallet) sequentially

Transportation management ( TM ) of S/4HANA provides these capabilities and my present blog is to describe these desired features in TM with S/4HANA.

Let us consider that the truck from warehouse (W) will first deliver to customer (A) , then (B) and then (C). System should be able to plan for 3 stages and propose pallets to be loaded in LIFO (Last in , first out) sequence i.e Pallets for last customer C to be loaded first , then B and then A as shown in below image .

Transportation management (TM ) in S/4HANA achieves these requirements . Transportation planning can be done so that the freight order (an object or transaction document in TM for shipment) in TM can have 3 stages (i.e W – A , A – B , B – C) as shown in below image. Freight order also shows the planner departure and arrival times at the respective locations.

SAP TM also has the capability to depict these locations in a map for better visibility of Transportation planner as shown in below image.

Now, in the scenario considered, Customer A has 3 pallets to be delivered, 1 pallet for B and 2 pallets for C . SAP TM shows them in 3 different colours as depicted in below image prior to the load planning.


During Load planning in TM , SAP TM places them in LIFO (Last in, first out) sequence as shown in below image with due consideration for load balancing of the truck.

These images are from embedded TM of S/4HANA 1909 release. However, these functionalities are also present in stand alone TM.

This blog is based on my personal tests , observation and insights. Will appreciate your feedback / comments.

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      Author's profile photo MILAN CHOWDHURY

      Informative. I believe you are talking about 'Milk Run' scenarios here. For Milk Run, simultaneous delivery and pick up can be scheduled for same customer in S/4 1709 onwards...

      Author's profile photo Mrinal Kanti Roy
      Mrinal Kanti Roy
      Blog Post Author

      Hi Milan,

      Thanks . Scenarios considered here are outbound , but very similar to Milkrun (used for inbound for fetching milk from different vendors to dairy). Yes, these features are available from 1709.



      Author's profile photo Youssef El Barzouhi
      Youssef El Barzouhi

      Hi MKR,

      Thank you for this blog. Is there a rule for LIFO loading that we must define at load planning settings level or it is the default behavior without need of rules definition?

      Thanks in advance.



      Author's profile photo Mrinal Kanti Roy
      Mrinal Kanti Roy
      Blog Post Author

      Hi Youssef,

      Thanks . LIFO is the default rule . If LIFO is not desired, then it can be deactivated.



      Author's profile photo Srinivasan Velu
      Srinivasan Velu

      Hi MKR,

      In our firm we're delivering Oils whether this LIFO option will suit for our business.

      Author's profile photo Mrinal Kanti Roy
      Mrinal Kanti Roy
      Blog Post Author

      Hi Srinivas,

      How the oil is stored ? Are those stored in barrels and then loaded to truck ? In that case , LIFO can still be applied .

      Also, Default LIFO can be deactivated , if that does not fit the requirement. SAP has provided several 'Loading rules' which can be applied specific to your / Oil requirement.



      Author's profile photo Parveen Kumar
      Parveen Kumar

      Hello MKR, We have this requirement from one of our Pulp & Industry client. In order to achieve this in To-Be solution, I have defined Transshipment locations (e.g. B) and assigned it to source location (Plant A) so that after optimizer run, system splits the FO in 2 stages. First Stage from Plant A to B (Transshipment location) and then final stage from Transshipment location B to final destination C.

      Strangely, when I plan the FO (optimizer planning), system is splitting the FU in 2 and creating 2 FOR's as well.

      Any heads-up why system is not creating 1 FO with 2 stages ?

      Your suggestions are appreciable !



      Parveen -



      Author's profile photo Rob Reinerink
      Rob Reinerink

      Great blog.

      I see that the loading sequence is determined by the LIFO principle. Is this loading sequence also communicated to EWM? How will the loading be done there, as you cannot load per FO...