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Author's profile photo Mrinal Kanti Roy

Freight Collaboration with SAP Logistics Business network (LBN) and its integration with SAP Transportation Management ( TM )

 

SAP has developed & released a cloud application called as ‘Logistics business network (LBN)’ to network and communication with partners (Shippers, Carriers, Customs authorities etc) involved in logistics (warehousing & transportation) operations. LBN has 3 components

  1. Freight collaboration
  2. Global track & trace (GTT)
  3. Material traceability

LBN can be integrated with SAP ECC , S/4HANA, Transportation management ( TM ) and Extended warehouse management (EWM) . Refer URL https://www.sap.com/sweden/products/logistics-business-network.html for an overview and business benefits of LBN.

My present blog is to discuss on two important operations on Freight collaboration and its integration with Transportation management.

  1. Creation and award of Request for Quotation (RFQ) to the carrier
  2. Send Freight order (after Award) and subsequent confirmation from the carrier

A typical process for Freight RFQ to the carrier and its confirmation has been depicted chronologically in below image.

 

Activities or operations as depicted in above image have been described below in chronological sequence alongwith relevant screenshots from SAP TM and LBN.

  1. A RFQ (5100000417) is created from Freight order (6100002573) in Transportation management as shown in below image.

2. RFQ is transferred to the LBN Carrier through XML message as triggered from the freight order and as shown below.

3. Concerned carrier accesses the RFQ in its LBN portal and reviews & accepts the same through App ‘ Freight request for quotations’ as shown below.

4. Confirmation from the carrier is reviewed and subsequently awarded to the carrier as captured in below image of the freight order.

5. Freight order is sent to the carrier through XML for the confirmation as shown in below image.

6. Carrier reviews the freight order and confirms the same through App ‘ Freight orders for confirmation’ as captured in below image.

7. ‘Confirmation Status’ of the freight order is depicted as ‘ Confirmed’ as in below image.

We can very well ascertain that LBN will ensure the freight collaboration to be very transparent, fast and efficient. We also see very high demand for demos of LBN from the customers.

This is my first blog on LBN and based on my personal tests , observations and insights . Will appreciate your views / comments.

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      9 Comments
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      Author's profile photo MILAN CHOWDHURY
      MILAN CHOWDHURY

      Thanks Mrinal. Would expect you to shed some light over Global track & trace capability of LBN in future...

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

      Thanks . Yes, will write blog on GTT soon ..

      Author's profile photo Adi Mogilevsky
      Adi Mogilevsky

      What are additional business benefits from using LBN besides transparency?

      How is procurement function aligned with them?

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

      Hi Adi,

      Traceability is another major business benefit with LBN. We also expect Sutainability features (Monitoring of actual carbon emission etc) in future release.

      With regards,

      Mrinal

      Author's profile photo Devraj Bardhan
      Devraj Bardhan

      Thanks for leading with EWM-TM integration and now LBN Mrinal Kanti Roy  Lets get the customers interested in the value LBN brings.

      Author's profile photo Latish Adnani
      Latish Adnani

      Great Info

      Author's profile photo astor designs
      astor designs

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      Author's profile photo Akshat Kumar
      Akshat Kumar

      Hi Mrinal,

      Thanks for this post.

      I believe as of now, in LBN FC option, there are only a couple of expected events--departure and arrival available to report. In case a customer wants to have multiple expected events besides these two, is track and trace option(GTT) a recommended option?

      Also, LBN FC supports the option of carriers reporting events via EDI, right(such as EDI214)?

      Akshat

      Author's profile photo Guatam S
      Guatam S

      Very well explained , Thanks Mrinal.

      one query- can freight booking be in integrated with LBN. I means there is no such tendering function is FB for RFQ.

      Kind Regards

      Gautam S