SAP TM: Transportation Management

Mature and Robust Transportation Management tool

SAP Transportation Management (TM) represents one of the most market-proven and robust transport planning and execution tools on the market. Some 1600+ customers have implemented SAP TM inside their organizations, whether on-premise or in the Cloud. This amount proves the usefulness and good reputation of SAP TM. The major benefit for customers running SAP (whether ECC or S/4) is its tight and seamless connectivity to core systems.

Many analyst organizations have indicated SAP TM in higher positions in the leader part of the magic quadrant for a few consecutive years.

Source: Gartner


By process areas:

Strategic Freight Management

Transportation Sourcing is the area where main savings and benefits can be realized, this is served by Strategic freight Management in TM. Collect all your cross-company shipping volume and use it in digital means to get the best offers, simulate, and decide on exact contract awards.

Order Management

Automated connections to your transport requirements, whether those are your outbound sales orders, outbound deliveries, inbound purchase orders or inbound deliveries, or even scheduled agreements, or inbound from your advanced IBP planning – these are all being considered as potential inputs to initiate transport planning in SAP TM.

Transportation Planning

SAP TM excels in options for how to plan and optimize your final transport load (Freight Orders) in terms of the size, weight, or in terms of characteristics of the cargo that is to be transported. Customers choose between manual planning in the Transportation Cockpit, map-based planning or relying on the engine to run automated optimization runs. Such engine is excellent tool for large-volume shipping for inbound or outbound.

Transportation Execution

Accurate and monitored execution goes hand in hand with planning, which means handing over of Freight Order (i.e. transport requirement) to carrier or LSP, getting confirmation or bid back (TM supports booking, tendering, or direct assignment), and processing all documents for shipping (bill of lading, origin documents, etc.) to each partner involved. Un-separatable part of this is also the visibility at the document level and in transit level. The option here is to connect the operation to SAP LBN for carrier connection and visibility or connect to any other transportation platform.

Freight Costing and Settlement

Freight spend management is a key value that is the drive behind the TM. Get direct invoices from your carriers and LSP and audit them against your agreements, automatically connecting to your account payable systems.

Analytics and Reporting

The right level of KPI, whether strategic, tactical, or operational is essential for any TM implementation. Companies can change what they measure. Setup your KPI and analytics on OTIF, capacity utilization, agreement utilization, timelines of pickups or deliveries, tradeline monitoring, claims and incidents management, etc.

Specialty Consulting

concircle offers not only design, architecture, and implementation services but also business consulting in the areas of logistics and transportation. Topics such as insourcing/outsourcing transportation strategy, ROI for logistics tools, selection of software or platforms, RFI/RFP/RFQ design, business process transformation, and niche processes (short-cut, maritime, triangulation/street turns, visibility solutions design, document processing, consignment orders, VMI, etc.) are part of the offering.

concircle offers in the area of Transportation Management supporting customers in initiation, design, architecture and best practices, implementation, and cutover as well as specialty processes (short-cut process, maritime process, connectivity to other platforms and visibility providers, etc.).

Jakub Ctvrtnicek

Jakub Ctvrtnicek

Senior IT Consultant – Logistics & Supply Chain

Do you have questions about this solution, please contact me for a non-binding discussion!

+43 676 9410192

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