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  • Writer's pictureDeepti Lodhi

Overcome Transportation Challenges with SAP TM (SAP Transportation Management)


In today’s fast paced world, Transportation Industries related business faces various challenges. These challenges give opportunities to Transform Companies Processes, Business Improvements and Cost Saving.


Most of the Transportation business having challenges in following Transportation related areas:


  • Optimized planning.

  • Reducing Transportation and other Operational Costs.

  • On time Delivery and Fast Delivery.

  • Real time tracking and visibility and Transparency.

  • Best Analytics and KPIs.

  • Customer Satisfaction.


SAP Transportation Management (SAP TM) and its specific modules give opportunities to conquer these Transportation challenges in an efficient and cost-effective manner.


What is SAP TM?


SAP Transportation Management is a SAP Standard software from SAP Supply Chain Management solution portfolio. SAP TM helps companies manage logistics associated with the movement of physical goods – by land, air, sea, or a combination of transportation modes. Part of the larger supply chain management system, TMS logistics software helps ensure timely delivery of goods by optimizing loads and delivery routes, tracking freight across local and global routes, and automating previously time-consuming tasks, such as trade compliance documentation and freight billing. A TMS system reduces costs for both businesses and end customers.

 

How These requirements can be achieved with the help of SAP TM and its implementation?


Modern SAP Transportation Management offers a wide range of features. Using these features can help to reduce the complexity and improve efficiency which makes tremendous difference in the processes and profits. Following are the Key features of SAP TM:


  • Transportation Planning

  • Transportation Execution

  • Carrier Collaboration

  • Settlement

  • Visibility and Tracking

  • Analytics, Dashboards and reporting


Let’s leverage each of these features in detail to understand SAP Transportation Management better and to use its features in your business as much as possible.


Transportation Planning


SAP Transportation Management offers a wide range of advanced planning and optimization features to find the most efficient transport routes. SAP TM considers various parameters, constraints and preferences to make optimistic decisions for choosing carriers, transport mode (Air, Ocean, Truck, or Rail Freight), delivery times and equipment. The Load Planning feature is the most evolving feature nowadays which gives planner flexibility to move the freight within the equipment to make most optimistic decision. This helps to minimize transportation costs, uses the full capacity of the equipment and shorten delivery times.

 

Transportation Execution


SAP TM provides you opportunities for optimal transportation execution using automated carrier selection, Tendering, Manage Carrier SLA, Event Management. SAP TM also offers various tendering options which includes Peer to peer tendering and Broadcast Tendering.

 

Carrier Collaboration


SAP TM provides various options to connect with carriers or freight forwarders. So that planner can send the load request to the carrier and carrier can send the confirmation and real time events smoothly and without any delays.

 

Freight Settlement


SAP TM provides functionality where you can perform freight settlement with the service provider or carrier. Freight settlement documents get created out of freight order, service order or freight booking.  Freight settlement used to create the Service Purchase Order and Service Entry sheet in MM, which is further used for invoice verification and settlement.

 

Visibility and Tracking


With Integrated SAP TM you can gain visibility and real-time tracking of the shipment. SAP TM allows you to reduce the shipping complexity by integrating with Fleet and other tracking systems. With real-time visibility into all aspects of the transportation process, you can make immediate, data-driven decisions.

     

Analytics, Dashboards and Reporting  


With this feature of SAP you can forecast Transportation Demand, analyze rates and Profitability, Measures the Carrier KPI’s, on time Deliveries, Orders picked up, Transited and Delivered on time and without any damages.

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