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Update on Basic Shipping for SAP S/4HANA 2020

SAP’s strategy for Transportation Solutions in SAP S/4HANA

Since the introduction of SAP S/4HANA® some of the previous modules/solutions available in SAP ECC became available through something called “Compatibility Packs”. A Compatibility Pack (CP) is a version of a standard SAP Business Suite software product that is compatible with SAP S/4HANA.

Compatibility packs:

  • Cover functionality from SAP ERP core or line-of-business (LoB) or industry solutions
  • Comprise the complete or partial scope of the related SAP Business Suite product
  • Will be phased out in favor of other strategic solutions that may have similar functionality to that within the CP software and may have a separate license.

The latest change regarding the Logistics Execution – Transportation (LE-TRA) Compatibility Package is that it’s usage rights has been extended to the end of 2030 (see KBA 2269324).

To phase out LE-TRA, SAP S/4HANA introduced since its 1709 release what was known before as “Basic Shipping”, now simply Transportation Management. Basic Shipping/Transportation Management is a reduced scope version of Advanced Transportation Management (AKA Professional Shipping) and does not require an additional license. It is worth to mention that Basic Shipping/Transportation Management is a subset of functionality of the full scope version Advanced Transportation Management and share the same configuration nodes and master data objects.

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Another main difference besides the scope is that Transportation Management (Basic Shipping) can only be deployed embedded in SAP S/4HANA. For a side-by-side deployment (AKA sidecar or decentralized) you’d need the full scope license of SAP S/4HANA Supply Chain for Transportation Management.

Transportation Management vs Advanced Transportation Management Scope

As stated before Transportation Management – Basic Shipping’s goal was to provide the functionality that LE-TRA provided to the customer and its scope has been fit to maintain the same level of capabilities with few improvements like integration with SAP Logistics Business Network, freight collaboration option. There is still a little bit of work left to be done to achieve complete feature parity, however most of what you could do with LE-TRA can be achieved in some capacity with Basic Shipping.

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On the other hand, SAP Transportation Management as a product has greater functional capabilities compared to LE-TRA, offering order-based transportation planning, greater automation possibilities, analytics and reporting via CDS views, shipper and LSP process coverage among others.

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New in SAP S/4HANA 2020

Due to new functionality introduced in the SAP S/4HANA 2020 release, Transportation Management (in its Basic Shipping scope) has now gained new capabilities that weren’t previously available.

Advanced Shipping and Receiving (ASR):

Introduced in the SAP S/4HANA 2020 FSP01 release, Advanced Shipping and Receiving simplifies communication between Transportation Management (TM), Extended Warehouse Management (EWM), Stock Room Management (STRM), Inventory Management and Physical Inventory (MM-IM), and Logistics Execution (LE) application components embedded in SAP S/4HANA.

It now manages the integration between SAP TM and the warehousing modules directly from the Freight Order (FO) object and allows for mixed and multi-warehouse scenarios from a single Freight Order in which some warehouse may use Stock Room Management and others Extended Warehouse Management.

As of the current release ASR supports warehouse lead processes and there are some scenarios in which it can be used with the basic scope of Transportation Management:

Embedded Scheduling

As of SAP S/4HANA 2020, SAP TM now includes a new embedded scheduling strategy which doesn’t require communication to the external SCM Optimizer (vía RCCF calls), making it possible to utilize it with Transportation Management in its basic scope.

Both the new VSS_EMBED and previous VSS_DEF strategies try to solve the same scheduling problem. However, since the code/algorithms used by each one is different, the results given by each one could be different, although correct. The difference doesn’t stop at code level, currently Embedded Scheduling doesn’t support Scheduling Constraints defined in customizing (Planning > General Settings > Define Scheduling Constraints), so if you require modeling that kind of constraints then you’d still need an advanced license to be able to use the SCM Optimizer engine.

 

Summary

  • Basic Shipping will know be known simply as Transportation Management and the full scope license will be known as Advanced Transportation Management.
  • The usage rights for LE-TRA’s compatibility pack has been extended to the end of 2030.
  • Transportation Management (AKA Basic Shipping) provides functionality comparable to what LE-TRA offers without additional licensing costs.
  • With SAP S/4HANA 2020 you can now take advantage of Embedded Scheduling and Advanced Shipping & Receiving (FPS01) with the basic scope.

 

If you’d like to learn more details about the topics covered in this blog please look into the following links for further information:

Product Assistance – SAP S/4HANA – Transportation Management (TM)

What’s New Viewer – SAP S/4HANA – Delivery and Transportation

What’s New Viewer – Advanced Shipping and Receiving

What’s New Viewer – Enhancements for scheduling

 

Please make sure to follow the SAP Transportation Management tag for blogs to get great insights on this SAP solution. Also feel free give some feedback or ask some questions in the comments or to our growing community using the SAP Transportation Management tag.

Thanks a lot for reading.

Brought to you by the SAP S/4HANA RIG team.
5 Comments
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  • Hi Roberto,

    Thanks for this excellent write-up. In the image for comparing LE-TRA, Basic Shipping and Advanced option, what do the partially shaded circles mean?

    • It means that there are scenarios that could independently be handled by TM or EWM but that aren't supported yet by TM-EWM integration, neither with ASR or the TU based approach.

      Advanced TM has greater coverage because of the allowed scope given by the license but also because TU based TM-EWM integration covers some scenarios not yet supported by ASR.

  • Great Summary Roberto. One thing I want to add.

    The Naming Conventions are about to change:

    • LE-Tra (compatibility scope)                           = Basic Shipping
    • Transportation Management (basic features) = Transportation Management
    • Advanced Transportation Management          = Advanced Transportaion Management

     

    best regards

    Patrick

  • Hi Roberto thank you for this important write-up, that can be completed with note 3056768.

    Knowing the scope of LE-TRA it is important to notice that TM/basic shipping does not offer the same features on the folling topic:

    Carrier even optionnaly recorded in Transportation lane is not defaulted in the creation of the freight: it means that the user has to entry the carrier each time contrary to LE-TRA route definition

    Different transportation group even creating different deliveries does not prevent to consolidate them in the same freight order (no incompatibilities) this would be impossible with the LE-TRA route determination

    Best Regards

    • Hello Eric,

      Thanks for sharing the note, I didn't include it because it was published after the creation of my blog post but I'll definitely add it in a future revision.

      Yes, LE-TRA still has some functionality that SAP TM will either offer to implement in a different way (because of architectural differences between solutions) o will try to cover in the future.

      However the examples you mention can be covered with standard TM functionality, just not in the way LE-TRA used to:

      • Incompatibilities can be used in the basic scope of Transportation Management, just not for planning. So the way I'd approach this is to create a condition for Freight Unit type determination that would assign a different freight unit type according to the transportation group and an incompatibility for Freight Unit building that would not allow to consolidate different transportation groups in the same Freight Unit. Planning would have to be done manually being mindful of the different Freight Unit types (filters could be applied).
      • For direct carrier assignment you can use Default Routes (included in the basic scope) or Automatic Carrier Selection as long as only one carrier is being defined in the master data. Automatic Carrier Selection for multiple carriers is part of the Advanced Transportation Management Scope.

      Regards,

      RNM