Transportation Management TM

SAP S/4HANA Supply Chain for Transportation Management 1809
Holistic integrated platform for connected transportation
Trond Røvang
SAP Solution Expert – Digital Supply Chain
CUSTOMER
Supply Chain Performance Influences Customer Experience
Order Promising Transportation Warehousing Customs
Order Delivery
Sales
Capture Commitment
Customer Invoice AR Freight

Processing
Finance Processes Settlement
Procurement
Sourcing and Supply Outbound Delivery Inbound Inventory Order
Commitment Creation Delivery Management Fulfillment
Distribution
Manage Trans
Plan Freight
Rqmts
Logistics Freight
Carrier Booking
Tendering
Import Export
Compliance
Management Management
Visibility Global Supply Chain Visibility, Event Management, Alerting, Reporting
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 2

Our platform strategy for digital logistics
Functional Integrated Flexible Connected

Holistic and Support for end-to-end Processes and Real-time insight and
vertical processes deployment network communication
Global Track
Logistics Business Network Connected Fleet
Warehouse Transportation and Trace
Yard Logistics
Management Management SAP Leonardo Innovation Platform
SAP HANA/SAP Cloud Platform
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 3

Our platform strategy for digital supply chain execution
Sustainability &
Reduce spend Improve service
efficiency
Supply chain execution platform
SAP Extended Warehouse Management SAP Transportation Management SAP Leonardo Apps
SAP Track and Trace SAP Yard Logistics SAP Leonardo Foundation
SAP HANA/SAP Cloud Platform

SAP S/4HANA Supply Chain for Transportation Management benefits
One single / holistic transportation platform
Automated transportation processes
End-to-end transportation visibility
Reliable SAP technology (standard settings, global service level agreements, partners, strong TM community)
Comprehensive integration into core business processes (Order-to-cash, procure-to-pay etc.)
Combination of inbound, outbound & intercompany freight
Scalability of business scope – start small and go large
Global solution – multiple languages, currencies etc.

SAP Transportation Management value
Increased business ▪ More automated processes

productivity ▪ Electronic collaboration
▪ Reduced redundancies
End-to-end transportation
▪ Electronic track & trace capabilities and cross-system
visibility and improved document flow
customer service
▪ Freight consolidation
5 – 15% freight spend ▪ Freight rate negotiation with simulation and what-if analysis
savings* ▪ Higher asset utilization
▪ Reduction in expedites and overheads

*Source: SAP Performance Benchmarking
SAP S/4HANA Supply Chain for Transportation Management
Holistic Transportation Management:

Comprehensive process and multimodal coverage
• Shipping industries and freight forwarder industries
• Large and midmarket enterprises
• Domestic and international transportation
• Inbound and outbound freight management
• Simple and complex high-volume operations
S/4HANA Supply Chain for Transportation Management
Capacity and Order Management Freight Execution Freight

Demand Planning & Freight Planning and Monitoring Settlement
Tracking and Reporting

SAP S/4HANA Supply Chain for Transportation Management
Multimodal transportation
SAP S/4HANA Supply Chain for TM – Overview
Strategic Freight Order Transportation Transportation Freight Costing Analytics

Analytics and
and
Management Management Planning Execution and Settlement Collaboration
Reporting

SAP S/4HANA Supply Chain for TM – Strategic freight management

Analytics and
and
Reporting
• Strategic Freight
Procurement
• Strategic Freight
Sales
• Contract Negotiation
• Ocean and Air
schedule and Business Benefits
Capacity • Optimal Procurement of freight capacity for multiple modes
Management • Save on their transportation budget using sophisticated
• Carrier Booking
• Descartes Integration Freight procurement solution
• Measure Compliance on Agreements

Strategic freight management
Strategic freight Strategic freight selling Predictive, insight-driven pre-

procurement bid evaluation and bid
preparation
Ocean and air schedule Collaboration feature Integration with industry

and capacity logistics networks
management

Strategic freight management – procurement and selling
Strategic freight procurement goal: Freight agreement with carrier
Send feight RFQ
Customer: Respond to RFQ

Carrier / LSP
shipper / LSP
Strategic freight selling goal: Forwarding agreement with customer
Send feight RFQ 2
Respond to RFQ
3
Carrier / LSP
Customer: Respond to
shipper / LSP quotation

Strategic freight procurement
End-to-end process
Pre-bid evaluation Bid preparation Carrier/LSP collaboration Post-bid evaluation Contract award
• Transportation • Carrier selection • RFQ response preparation • Response evaluation • Agreement/Contract

forecast • RFQ Preparation • Negotiation • Post-bid analysis award
• Insights • Target rates • B2B communication • Spend calculation • Agreement
consumption
• Optimization
• One system with open interface for all related process without modification
• Insight to action-based process flow – historical data, bid preparation, spend analysis, award
• Powerful simulations / what-if (consideration of historical performance, bonus malus, transit time)
• Efficient information exchange with carriers / LSP with alerting

Strategic freight selling
End-to-end process
Customer on boarding Pricing management Bid analysis & response Contract creation &
monitoring
• Data Mapping • Flat view for rates • Manual /Automatic rate building • Agreement/Contract Award
• Excel Integration • Analysis • Propose service product and service cost • Agreement consumption
• B2B Integration • Rate Management • Revenue projection and workflow • Customer rating and
classification
• Rules for Margin/Discount • Business Context Viewer
• Duplicate agreement validation check
• Closed loop and streamlined quote to contract process • Multiple users on single FWAQ – parent child relationship
• Automated creation of RFQ from customer request • Multiple quotation rounds
• Excel upload and download • Creation of TM FWAQs triggered from CRM opportunity
• Automated and flexible rate builder engine • One-click contract creation
• Revenue analytics, protection of rates

SAP S/4HANA Supply Chain for TM – Order management

Analytics and
and
Reporting
• Integrated ERP
Transportation
Demand
• Personal Worklists
• Sales & Stock
Transfer Order Business Benefits
Scheduling
• Schedule • Improve the efficiency of order and process management
management • Generate dynamically optimized routing proposals based
• Order Life-Cycle on business rules
Management & • Minimize freight costs
Visibility
• Enhance customer service

Order Management
Integrated transportation demand
Support order-to-cash / procure-to-pay processes
Enterprise Management
Transportation demand
• Sales orders
• Purchase orders
• Stock transport orders
• Returns
• Inbound / Outbound deliveries

SAP S/4HANA Supply Chain for TM – Transportation planning
Order Transportation Transportation Freight Costing Analytics

Analytics and
and
Management Planning Execution and Settlement Collaboration
Reporting
• Manual and
automated
planning and
dispatching
• Routing, resource, Business Benefits
and carrier
• Improve resource utilization and carrier selection to reduce transportation
selection
• Order tendering costs
• Dangerous goods • Handle huge volumes of data thanks to automated planning processes
management • On the fly drag and drop planning
• Planning of parcels • Select the most cost effective modality easily
• Combine decentralized local business views to identify synergies
• Achieve on-time delivery

Freight planning & tendering
Optimal transportation planning and resource utilization
Holistic Effective Advanced Compliant
• Consider all freight demand & • Plan manually, map-based & • Automated load planning • Dangerous goods
resources automated • Pallet / package building • Trade regulation
• Cover all geographies & modes • VSR optimization • Map-based resource tracking
• Select carrier and tendering • Gantt chart planning

Best-in-class freight planning capabilities
Comprehensive visibility & powerful planning tools
Transportation demand Supporting data

• Manage freight units • Freight execution status
• Create building strategies • Carrier ranking
• Freight charges etc.
Planning constraints Freight documents

• Availability and capacity • Freight orders & units
• Loading / unloading durations • Trailer documents & rail
• Incompatibilities • Ocean & air bookings
• Driver constraints
Plan resources & schedules Map-based visualization & planning

• Vehicles, trailers, containers, compartments, railcars • Gantt chart
• Land, ocean, air • Map views
• Schedule transportation • 3rd party GIS integration
Freight planning with Gantt chart
• Provide a visualization of demand and execution status

(un-/planned demand, progress of activities)
• Manage fleet/resource availability
• Plan resources interactively by drag and drop
• Adjust transportation plan dynamically based on reported
events
• Integrate Gantt chart and map with geographical and
time perspective
• Visualize load / unload planning results with package unit
• Improve planning efficiency with attribute-based planning

Freight planning on multiple screens

Package building
Aim of package building:

Minimize number of pallets, maximize truck
utilization, minimize number of trucks, reduce
transportation costs, reduce CO2 emission

Mixed package building
Package building process:

Plan mixed packages/pallets with
multiple customer orders
Determine physical positions of cartonized and

non-cartonized products on mixed pallet,
considering
• Stackability
• Incompatibilites
• Height, volume and weight constraints
• Orientation constraints of the products
Consolidate multiple products for the same customer into one mixed carton Consolidate products for multiple customers into one mixed pallet*

*planned to be released with FPS 1
Mixed package building: Scenarios
Aim of package building:

Minimize number of pallets considering
constraints such as package attributes, product
stacking rules, customer specific requirements, Product quantities Package / pallet building Pallets / packages
height limit, etc.
Complete product Mixed package Mixed package Mixed package Mixed package Mixed package
package (layered + freestyle) (freestyle)

Load planning
• Optimally utilize loading space on

transportation resources
• Find appropriate location for each package /
pallet on the truck
• Consider various constraints such as
dimensions, vehicle attributes, stacking rules,
loading sequence, flexible split deck
• Combine load planning with load consolidation
in a single step
• Visual view of load planning

Load planning – Flexible double deck
• Same load on three different trucks

• Non-stackable pallets
Truck without split deck Truck with fixed split deck Truck with flexible split deck
 Many unloaded pallets  Only few unloaded pallets  All pallets loaded

Driver management
Interactive management of driver resources with tracking

• Consider non-working times and absences
(e.g. vacation, sickness), driver qualifications and validity
period
• Default driver assignment to truck
• Assign drivers to road freight order
• Facilitate planning via warnings

Flexible and collaborative freight tendering and carrier selection
Rules-based carrier determination

• Freight agreements
• Costs
• Lane allocations
• Business share
Multi-variant tendering
• Peer-to-Peer RFQ
• Broadcast RFQ
LBN*
• Direct freight order assignment
Flexible collaboration
• Real-time tendering process, status monitor
LBN*
• B2B, email, sms communication

• Authorization-based RFQ processing

*Incubation product, which is not yet general available
SAP S/4HANA Supply Chain for TM – Transportation execution

Analytics and
and
Reporting
• Extended
warehouse
integration for
execution
Business Benefits • Logistics execution
• Improve cargo handling • Execution
monitoring and
• Achieve faster, more dynamic, and
event tracking
responsive logistics execution • Capacity
• Reduce shipping costs with a streamlined monitoring
process and maximized efficiency • Transportation
print documents
• Trade regulation
compliance
(using the SAP
GTS application)

Freight execution & monitoring
Efficient freight execution management & tracking
Full process, shipment and status visibility
Integrated customs/ Comprehensive freight Efficient End-to-End shipment Real-time

warehouse process document management cargo management tracking track and trace

Freight execution & monitoring
Shippers Rates Business

Partners
Schedules
Agreements
Tenders
Freight orders / bookings
Freight documents
Shipping status / events
Invoices
Comprehensive, flexible business partner communication & collaboration

via B2B, mobile apps, WebUIs, file up/download, print documents, email, fax, SMS

Warehouse integration
• Overall process optimization with SAP EWM

• Integration to SAP EWM both with embedded
EWM/decentral EWM
• Real-time SAP EWM integration
• Change freight documents till the point of arrival and
loading
• Communicate arrival and departure information with

reversal from EWM to TM

Document and output management details
Comprehensive workflow, document and

output functions
Standard transportation document templates
• For road, sea, and air transportation
• Comprehensive set of preconfigured, standard
documents
Flexible output management
• Automatic / manual printing, email, fax, B2B
communication

International, cross-system shipment & event tracking
Comprehensive shipment tracking

 End-to-end visibility
 Full milestone tracking: from loading begin to proof-
of-delivery
 Freight units, orders, bookings & containers
 Shipper, carrier & consignee views
 Map-based event location visibility
 Cross-system & organization
 Flexible event notification

SAP S/4HANA Supply Chain for TM – Freight costing and settlement

Analytics and
and
Reporting
• Freight
agreement
Business Benefits management
• Improve accuracy and transparency with • Charge and tariff
management
automatic transportation cost calculation
• Integration with
• Integrate transportation management
SAP S/4HANA
and billing • Transportation
• Increase invoice accuracy charge calculation

Freight charges & settlement
Charge management Freight settlement Freight cost accounting Freight cost reporting
• Comprehensive agreement • Post accruals • Cost distribution: • Embedded real-time
management • reporting
Invoice verification • General ledger posting
• Flexible charge & rate & payment • Flexible business
• Material valuation
management warehouse cost reporting
• Sales order profitability
• Advanced freight charge
calculation
Accurate, integrated freight costing, settlement and reporting

Freight charges & settlement
Comprehensive rates Air / ocean

• Various origin / destination point • Commodity based charges
classifications • Prepaid and collect on ocean booking
• Rates based on: Equipment, weight, • Index table based fuel surcharge
volume, distance, discounts, tolls, calculation
taxes, etc.
Rail Advanced
• Rule 11 on freight order • Charging for parcels

• Consider day of week pricing • Collective order rate lookup
• Condition and event based charging
• Agreement consumption
• Group logistics
• Dispute management
• Automatic change mgmt. process

Freight settlement in SAP S/4HANA Supply Chain for TM
From the cross system world to “one SAP S/4HANA world”

• Functionalities of the settlement document
are unchanged
• No middleware, no xml message, no “transfer FSD”
anymore
• Posting, creation of follow up documents and
invoice verification is now within the same system
• Direct posting of freight settlement document
without webservice

Forwarding settlement in SAP S/4HANA Supply Chain for TM
From the cross system world to “one SAP S/4HANA world”

• Functionalities of the settlement document are
unchanged
• Direct posting of forwarding settlement document
without webservice

SAP S/4HANA Supply Chain for TM – Analytics and reporting

Analytics and
and
Reporting
• Dashboards for the
SAP HANA platform
• Landed cost
analysis
• Flexible reporting
on business
warehouse costs
Business Benefits • Collaboration portal
• Support real-time, data-driven decision making to enable
• Gain in-depth business insights collaborative
• Reduce data complexity business processes
• Enable efficient collaboration between logistics between logistics
business partners partners

Real-time analytics SAP TM based on CDS
Drill down to order level details
SAP TM
SAP Fiori
launchpad 4
2
Overview page
3 Quantities
SAP TM
Freight Order
5

This is the current state of planning and may be changed by SAP at any time.
Embedded analytics in SAP S/4HANA Transportation Management 1709
Drill down to KPIs for detailed analysis

Integration
Comprehensive Out of the Box Integration with SAP solutions
Sales &
• Sales, purchase, returns, & STOs, Scheduling Agreements
Procurement
• Warehouse planning & execution (EWM)

Logistics Execution
• Delivery & shipment processing
Environment
• Compliant dangerous goods shipment
Health & Safety
Global • International trade regulation compliance
Trade Services • Customs export processing
Financial • Carrier invoice verification & payment/self-invoicing

Management • Sales order profitability & material valuation
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is 44
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
Further information on SAP Transportation Management
Where to find more information on Transportation Management – External
SAP Transportation Management brochure SAP Transportation Management SAP Transportation Management help
community portal
SAP Transformation Navigator SAP Transportation Management SAP Supply Chain Execution
solution explorer compendium
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 46
Thank you.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Appendix
Planned
Transportation Management embedded in SAP S/4HANA innovations
S/4HANA Enterprise Management S/4HANA Enterprise Management S/4HANA Enterprise Management

Process View
SAP S/4HANA SAP S/4HANA

Supply Chain for Supply Chain for
Basic Shipping Basic Shipping Basic Shipping
Transportation Transportation
Management** Management**
Technical View
SAP S/4HANA TM*

SAP S/4HANA TM*
S/4HANA code line S/4HANA code line
LE-TRA LE-TRA
Compatibility Scope Compatibility Scope S/4HANA code line
Prior to September 2017 Today Planned long term

*SAP S/4HANA Supply Chain for Transportation Management **Requires engine license This is the current state of planning and may be changed by SAP at any time.
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
50
Planned
Transportation Management embedded in SAP S/4HANA innovations
S/4HANA Enterprise Management S/4HANA Enterprise Management S/4HANA Enterprise Management

Process View
SAP S/4HANA SAP S/4HANA

Basic Shipping
Basic Supply Chain for
Basic Shipping
Supply Chain for
Transportation Transportation
Shipping Management** Management**
Technical View
SAP S/4HANA TM*

SAP S/4HANA TM*
S/4HANA code line S/4HANA code line
LE-TRA LE-TRA
Compatibility Scope Compatibility Scope S/4HANA code line
Prior to September 2017 Today Planned long term

*SAP S/4HANA Supply Chain for transportation management **Requires engine license This is the current state of planning and may be changed by SAP at any time.
51
Basic shipping within SAP S/4HANA
▪ Defined collection of business processes relevant for shipping within

SAP S/4HANA SUPPLY CHAIN
SAP S/4HANA Enterprise Management
▪ The processes can be implemented with SAP S/4HANA Release 1511 with LE-TRA and
used until end of life of the Compatibility Scope
Suite
▪ The main functions of LE-TRA will be eventually replaced with the Transportation
Management functions within SAP S/4HANA Enterprise Management. Due to the
Products development of the freight processes in Transportation Management, the functions
might have been realized differently than they did in LE-TRA.
It is planned that the processes can be implemented with selected functions of
Basic Shipping SAP S/4HANA TM*.
Digital Core
▪ Both technical applications are independent of each other and can then be used NEXT
to each other on the same S/4HANA database instance
▪ They have no data exchange / integration within the shipping process
Enterprise Management
▪ Long term the collection of basic shipping processes will only be realized by
LE-TRA
S/4HANA TM* using selected functions of SAP S/4 HANA TM*
Compatibility Scope
*SAP S/4HANA Supply Chain for transportation management

2269324 - Compatibility Scope Matrix for SAP S/4HANA on-premise This is the current state of planning and may be changed by SAP at any time.
52

Transportation Management TM

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Transportation Management TM

Uploaded by

Copyright:

Available Formats

SAP S/4HANA Supply Chain for Transportation Management 1809

Holistic integrated platform for connected transportation

Order Promising Transportation Warehousing Customs

Customer Invoice AR Freight

Visibility Global Supply Chain Visibility, Event Management, Alerting, Reporting

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 2

Functional Integrated Flexible Connected

SAP HANA/SAP Cloud Platform

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 3

Supply chain execution platform

SAP HANA/SAP Cloud Platform

One single / holistic transportation platform

Automated transportation processes

End-to-end transportation visibility

Comprehensive integration into core business processes (Order-to-cash, procure-to-pay etc.)

Combination of inbound, outbound & intercompany freight

Scalability of business scope – start small and go large

Global solution – multiple languages, currencies etc.

Increased business ▪ More automated processes

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 6

Holistic Transportation Management:

S/4HANA Supply Chain for Transportation Management

Capacity and Order Management Freight Execution Freight

Tracking and Reporting

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 7

Strategic Freight Order Transportation Transportation Freight Costing Analytics

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 9

Strategic Freight Order Transportation Transportation Freight Costing Analytics

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 10

Strategic freight Strategic freight selling Predictive, insight-driven pre-

Ocean and air schedule Collaboration feature Integration with industry

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 11

Strategic freight procurement goal: Freight agreement with carrier

Send feight RFQ

Customer: Respond to RFQ

Strategic freight selling goal: Forwarding agreement with customer

Send feight RFQ 2

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 12

• Transportation • Carrier selection • RFQ response preparation • Response evaluation • Agreement/Contract

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 13

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 14

Strategic Freight Order Transportation Transportation Freight Costing Analytics

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 15

Support order-to-cash / procure-to-pay processes

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 16

Order Transportation Transportation Freight Costing Analytics

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 17

Holistic Effective Advanced Compliant

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 18

Transportation demand Supporting data

Planning constraints Freight documents

Plan resources & schedules Map-based visualization & planning

• Provide a visualization of demand and execution status

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 20

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 21

Aim of package building:

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 22

Package building process:

Determine physical positions of cartonized and

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 23

Aim of package building:

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 24

• Optimally utilize loading space on