SAP Transportation Management(TM)

Why Sap TM- Benefits of using SAP TM

▪Reduced costs and improved operational performance

▪Improved carrier collaboration and resource utilization

▪Efficient, end-to-end order and process management

▪Efficient logistics and fulfillment processes

▪Improved execution visibility and responsiveness

 ERP’s that can be integrated with SAP TM

▪ SAP MM
▪ SAP EWM
▪ SAP EM
▪ SAP SCM
▪ SAP GTS
▪ SAP BI
▪ SAP PI
▪ SAP Net weaver
▪ Mobile devices
▪ GIS/Maps
Stand Alone and Embedded TM
 Documents that can be integrated in sap TM
SAP TM can integrate the following SD and MM documents:

▪ Sales orders (SD)

▪ Purchase orders (MM)
▪ Stock transfer orders (MM)
▪ Inbound deliveries (MM)
▪ Outbound deliveries (MM)
▪ Scheduling agreements (MM)
TM Process Flow
 Integration of ECC with TM
Master data Transfer from ERP to TM

First, you need to make sure the prerequisites for the SAP ERP integration are fulfilled. The master data
needs to be integrated into SAP TM from the SAP ERP system using the Core Interface Framework (CIF).

SAP TM delivers some Business Add-in (BAdI) implementations that cover exactly this case to avoid
duplications. In Customizing, you can get to these BAdI implementations by following the IMG menu path
(SAP Transportation Management » SCM Basis » Integration » BAdIs for Specific Applications » Location
and Business Partner » BAdI: Inbound Processing for Location). Here you will find three sample
implementations ready to use:

▪ The implementation APOCF001_SYSDIF adds a suffix to the location name, identifying the logical system
name of the SAP ERP system where this location was created.

▪ The second implementation APOCF001_TYPEDIF adds a prefix telling you whether the SAPERP
counterpart is a customer, creditor, shipping point, and so on.

▪ The third implementation, APOCF001_TYPESYSDIF, adds both.

Some of the activities are standard Basis activities that are not specific to the SAP TM integration (such as
creation of RFC users or RFC connections)
Sales Order Process Flow

SAP ERP SAP TM

Order OTR Freight Unit

Freight
Order
Delivery DTR

Freight
PO and Freight
Service Settlement
Entry Document
Sheet
 Sales Order Integration with TM
output determination in SD - To Generate OTR in TM
For the integration of the sales order, you need to create a new output type
(output type TRS0). To do this in your SAP ERP system, follow the IMG menu path
(Sales and Distribution » Basic Functions » Output Control » Output
Determination » Output Determination using the Condition Technique »
Maintain Output Determination for Sales Documents » Maintain Output Types)

Activate Sales Order

Once the output determination is configured, we can activate the transfer of sales
orders by following the IMG menu path (Integration with Other SAP Components
» Transportation Management » Logistics Integration » Activate Transfer of
Sales Documents in the SAP ERP system.)

The activation of the sales document is done via a control key, which defines
which document types should be transferred to SAP TM.
 Sales Order / STO / PO creation in ECC

Transaction Used:
▪Sales Order : VA01
▪STO: Me21n
▪Standard PO: Me21n
 Order-Based Transportation Requirement

The OTR is the corresponding SAP TM document that contains all transportation relevant information
from the SAP ERP orders. It can represent four things:

▪ Sales orders

▪ Purchase orders

▪ Stock transfer orders

▪ Scheduling agreements

For SAP TM, it doesn’t matter whether the predecessor document was a sales order, stock transfer
order, purchase order, or scheduling agreement. The OTR represents all of these SAP ERP document
types. There is a singleton condition that is used to define the OTR type of integration SAP ERP orders.
You can create and define a condition of the condition type /SCMTMS/OTR_TYPE to differentiate OTRs
by type

You can access the OTR type Customizing by following the IMG menu path (SAP Transportation
Management » Transportation Management » Integration » ERP Logistics Integration » Order-Based
Transportation Requirement » Define Order-Based Transportation Requirement Types.)
 Freight Unit Building Rule

You can define FUB rules in SAP Net Weaver Business Client by choosing (Application
Administration » Planning » General Planning Settings » Freight Unit Building Rule »
Create Freight Unit Building Rule).

When creating freight units, the system determines which freight unit building rule (FUB rule)
it is to take into account for a business document item. Possible business documents are:
▪ Forwarding order
▪ Order-based transportation requirement
▪ Delivery-based transportation requirement

You can use conditions to determine dependent values, for example, in the following areas:

▪ Filtering freight units

▪ Determining freight unit building rules (FUB rules)
▪ Incompatibilities
▪ Determining the sales organization
▪ Determining transportation charge rate tables and agreements with charge calculation
rule
▪ Change controller

You can define conditions in SAP Net Weaver Business Client by choosing (Application
Administration » General Settings » Condition » Create Condition)
Freight Unit
 Profiles and Settings for FO Creation in TM

Two profiles are available to which you can assign attributes and settings. These attributes and settings represent a type of sub profile with its own ID that you
define once and can then assign to multiple profiles.

▪Selection profile
• Time-related selection attributes
• Geographical selection attributes
• Additional selection attributes

▪Planning profile
• Optimizer settings
• Capacity selection
• Planning costs (including cost functions)
• Settings for carrier selection
• Settings for incompatibilities

▪Decreasing capacities

▪Freight unit building rules

▪Incompatibilities and settings for incompatibilities

 Selection Profile

You can define selection profiles in SAP Net Weaver Business Client by choosing
(Application Administration » Planning » Selection Profile » Create Selection
Profile)
In the selection profile and in the assigned selection attributes, you define which
business documents the system is to take into account as well as the maximum
number of documents. You can assign the following selection attributes to a
selection profile:
Time-related selection attributes - Here you define the demand horizon
Geographical selection attributes- Here you define source and destination
locations
Additional selection attributes
Here you define additional attributes for database queries
You can use conditions to further restrict or filter this selection
You can use your selection profile as follows:
As a selection profile for freight units

As a selection for freight orders and freight bookings

This means that the selection of business documents made by the system depends
on where and how you use your selection profile. For example, if, when calling the
transportation cockpit, you specify your selection profile as a selection profile for
freight units in your profile and layout set the system selects freight units.
However, if you specify your selection profile as a selection profile for freight
orders and freight bookings, the system selects freight orders and freight bookings.
 Planning Profile
You can define selection profiles in SAP Net Weaver Business Client by choosing (Application
Administration » Planning » Planning Profile » Create Planning Profile)

In the planning profile, you define the following

•Parallel processing profile

The system takes this profile into account when reading input data and transportation network
data (for example, transportation lanes).

•Planning horizon

•Business document type

Here you can specify a standard business document type or a condition with which the business
document type is to be determined.

•Planning strategies

You can either specify the standard strategy or use your own strategy. You can add additional
methods to the standard strategy.
•Manual planning (standard strategy VSRI_DEF)
•Scheduling (standard strategy VSS_DEF)
•Checks (standard strategy VSR_CHECK) The system checks capacities, incompatibilities,
and multiresources, and it performs a dangerous goods check.
•Optimization (standard strategies VSR_DEF and VSR_1STEP).-You define this strategy in the
optimizer settings.
•Generating transportation proposals (standard strategies VSR_DEF and VSR_1STEP).You
define this strategy in the optimizer settings .
 Planning Profile
You can also assign the following settings and profiles to a planning profile:

Optimizer settings

Here you can define the optimizer runtime, the maximum number of transshipment locations and processes, and the freight order building rule, for example. Furthermore, you choose the
required process controller strategy and you define the settings for generating transportation proposals

Capacity selection

Here you choose the required capacities, for example, resources.

Planning costs (including cost functions)

Here you define costs related to freight units and means of transport. In most cases, these costs are not the actual costs. Instead, they simply offer a means of controlling the result of the
optimization run (for example, earliness costs and lateness costs). Furthermore, you can define piecewise linear cost functions for a combination of means of transport and load in a certain unit
of measurement (load unit). You can use cost functions to model load costs, for example. Load costs are penalty costs that you define for each means of transport and load. In most cases, these
costs are also not the actual costs. Instead, they simply offer a means of controlling the result of the optimization run (for example, earliness costs and lateness costs).

Settings for carrier selection

Here you specify whether the system is to use transportation allocations or business shares, for example.

Settings for incompatibilities

Here you define settings for your incompatibilities

Freight order selection profile

Here you specify a freight order selection profile with which you can select freight orders and freight bookings
Transportation Cockpit
 VSR Optimizer
Optimization is the act of making the best use of a situation. In the real-world, it may translate to finding a solution with the lowest time/distance or the maximum utilization

The job of the VSR optimizer is to map these Freight Units to Vehicles to create a Freight Order which is another object representing transportation plan with vehicles, locations sequence,
dates, etc..

As part of this, the VSR optimizer has two goals - Vehicle Routing and Scheduling. Optimizer has to route the shipments. i.e. Find the best possible route the truck must take through the
location network, meeting all the time restrictions. The next step is scheduling where start and end times are assigned to various activities for each of the locations, vehicles, etc.

Preferences:
▪ Find the route with least distance or least time

▪ Choose the cheapest vehicle resources

▪ Plan should meet the requested & Acceptable dates

▪ Use Multi - Pickup and Multi-Drop off

▪ Incremental Planning

Constraints:
▪ Capacity

▪ Incompatibilities

▪ Working times, Breaks & Driving time limit

 VSR Optimizer

Prerequisites:
▪ You have defined the master data for VSR optimization, for example, the network connections to the optimization server and the maximum number of users. You can do so in SAP Net
Weaver Business Client by choosing (Application Administration » General Settings » Remote Control and Communication Framework » Settings » Edit Destinations).

▪ You have created a planning profile and have assigned the following settings to it:
◦ Optimizer settings you have specified the planning strategy that you want to use. You can do so in SAP Net Weaver Business Client by choosing (Application Administration » Planning » Planning Profile
Settings » Optimizer Settings)
◦ Planning costs settings You can do so in SAP Net Weaver Business Client by choosing (Application Administration » Planning » Planning Profile Settings » Planning cost Settings)
◦ Capacity selection settings You can do so in SAP Net Weaver Business Client by choosing (Application Administration » Planning » Planning Profile Settings » Capacity Selection Settings)

▪ You have defined transportation lanes. You can do so in SAP Net Weaver Business Client by choosing (Master Data » Transportation Network » Define Transportation Lane)

▪ In the case of multimodal transportations or transshipments, you have defined transshipment locations or transshipment location chains You can do so in SAP Net Weaver Business Client by
choosing (Master Data » Transportation Network » Assign Transshipment Location)

▪ If you want to control the input for VSR optimization or the result of VSR optimization, you have made the settings for the B usiness Add-Ins (BAdI) BAdI: Preprocessing using the VSR
Optimizer and BAdI: Post processing using the VSR Optimizer. see Customizing for SAP Transportation Management under (Transportation Management » Business Add-Ins
(BAdIs) for Transportation Management » Planning » VSR Optimizer » VSR Optimizer Preprocessing and Post processing)
 Delivery Creation in ERP

Delivery proposal:
Once the planning of the freight unit is done, we know a more precise delivery date of the goods that were ordered in the SAP ERP order. This information can then be
played back to the SAP ERP system, where delivery documents are created accordingly. This process step is called the delivery proposal.

Once you’ve finished planning the freight units in SAP NWBC, follow the menu path (ERP Logistics Integration » Delivery Creation » Create Deliveries in
ERP). When you enter a selection profile your freight units are displayed. Select the freight units you want to create delivery proposals for and choose Create Delivery
Proposals. You can review the proposals at the bottom of the screen and then send the proposals to SAP ERP by clicking Send Delivery Proposals to ERP.

The delivery proposals are created using settings and information from both freight units and OTRs. While the delivery dates are collected from the freight order that
is now assigned to the freight units, the quantities are taken from the freight units themselves.

In SAP TM, you can also define how delivery proposals should be created. These settings are consolidated in a delivery profil e. You can define delivery profiles via the
SAP NWBC menu path (Application Administration » Planning » General Settings » Delivery Profile).

In a daily business, you probably will not manually create delivery proposals every time you have finished planning some freight units. Therefore, background report
/SCMTMS/DLV_BATCH was created for you to run as a batch job. You need to define a selection profile by selecting your freight units or freight orders; the
background report does exactly what you can do interactively in SAP NWBC.
 Integration of Deliveries and DTR Creation

Please make sure you activate the transfer of the delivery documents in the SAP ERP IMG menu path Integration with Other (mySAP.com Components »
Transportation Management » Order Integration » Activate Transfer of Delivery Documents). Notice that this IMG activity looks very similar to
what we have seen when activating the transfer of SAP ERP orders.

Also on the SAP TM side, the technical integration is almost the same as with SAP ERP orders. Another transportation request document is created: this one is
the DTR. Technically, there is no difference between the OTR and the DTR; they are both instances of the business object /SCMTMS/TRQ and are
differentiated only by different document names.

The DTR is the business document representation of the SAP ERP deliveries, as the OTR was for SAP ERP orders. When you are setting up the integration scenario
between SAP ERP and SAP TM, you have different options for which documents you want to integrate and how the interaction of SAP ERP and SAP TM
documents should work.

If you have looked at the Customizing of DTR types, you will see that you can also define whether freight units should be created automatically in the DTR type. In
the process the creation of freight units would be counterproductive because not only were freight units already created with the OTR, but they were also
already planned. The DTR does not, in this case, create new freight units. However, the freight units are unassigned from the OTR and moved to the DTR. We call
this process OTR consumption or freight unit consumption.
Transport Charge Management Process Overview
Freight Agreement TCM Master Data Overview
 TCM Master Data

Freight Agreement (FA)

▪ Represents the contract with the carrier

▪ Contains information like payment terms, limits, texts

▪ Determined based on organizational unit (Purchasing Organization) and contracting party (Carrier or Service Provider)

▪ Points to one or multiple Transportation Charge Calculation Sheets

▪ optionally, additional preconditions can be defined

Transportation Charge Calculation Sheet (TCCS)

▪ Includes transportation charge elements, subtotals and totals

▪ Points to transportation charge rate tables

▪ Points to Fix Prices

▪ Points to a Charge Element with percentage to other charge lines

▪ Defines the Charge Type of each line

 TCM Master Data

Transportation Charge Rate Table (Rate Table)

▪ Defines the values of an individual charge element, e.g. scaled distance rates

▪ Represents a “price list”

▪ Complex validity

▪ Exchange with Microsoft Excel, XML

▪ Defines the usage of charge value (>, < or =)

Transportation Charge Scale (Scale)

▪ Dimensions of a rate table, e.g. distance, weight

▪ Scale Items define the breakpoints

▪ Usage of scale items define how charge values are calculated (absolute/relative)

**** TCM master data objects are reusable (e.g. 1 scale in multiple rate tables, 1 rate table in multiple TCCS etc.)
 Transport Charge Management Master Data Configuration
Scale Base
▪ Scale base is a characteristic that can influence the charge calculation - e.g. Weight, Party, Location etc.

▪ Scale bases are defined in customizing

▪ Adding new scale bases would be an enhancement activity

 Transport Charge Management Master Data Configuration

Calculation Base
Calculation base is a specialization of the scale base that provides a business context for the scale in charge calculation e .g. GROSS_WEIGHT, NET_WEIGHT etc.
would be calculation bases defined for the scale base WEIGHT

**** Adding new calculation bases would be an enhancement activity

 TCCS Master Data
Rate Table Creation

Path – NWBC ( Master Data » Charge Management & Service Product Catalogs » Rate Table » Create Rate Table Definition)

1. You need to create single rate table for every charge type.

Short Name & Description

Charge Type

Service Provider

Press F4 & select value

 TCCS Master Data
Rate Table Creation

2. Dates and Values tab (Click Insert » With Scale item (Update Rate validity period and currency) »Select Set Status -> Released » Save the
Rate table)

Update Rate records -Two ways records can be updated.

▪ Manual Entry

▪ Excel Upload

In NWBC ( Master Data » Charge Management & Service Product Catalogs » Rate Table » Maintain Rate Table »( In the next screen ) Select
rate table and continue » Insert records and update rates » Save the Rate table)
 TCCS Master Data
Calculation Sheet Creation

Path – NWBC ( Master Data » Charge Management & Service Product Catalogs » Calculation sheet » Create Calculation sheet)

Cal Sheet Name & Description

Charge Usage – Service Provider

Time Zone

Highlight Sum & Insert Single item

Update Charge Types Update Rate Tables
 TCCS Master Data
Freight Agreement Creation

Path – NWBC (Freight Agreement » Create Fright Agreement )

Update agreement Name and Description Time Zone Valid From To Doc Currency

In Involved parties section Update Purchase Org and Carrier Details

In Item Area Insert New Item

Update calculation sheet Update Transportation mode

Next Release Freight Agreement → Select either Released or Released with Rate table ( From Set Status)→Save the Freight Agreement
 Freight Settlement
In SAP TM, you can perform freight settlement with your suppliers or carriers by creating a FSD and sending it to SAP ERP. SAP ERP uses the FSD to create a purchase order and
a service entry sheet (SES). The SES is the basis for invoice verification in SAP ERP.

This function enables you to automate the creation of freight settlement documents Run the report /SCMTMS/SFIR_CREATE_BATCH. You can also run the report in SAP Net
Weaver Business Client by choosing (Freight Settlement » Background Reports » Create Freight Settlement Documents) Select the Immediate Transfer to ERP checkbox if you
want the system to automatically transfer the settlement documents to SAP ERP after creation

Prerequisites

Freight Settlement Document Types

• You have specified the FSD type, including the appropriate FSD category in Customizing for Transportation Management under (Settlement » Freight Settlement » Define
Freight Settlement Document Types)
• You have assigned the FSD type to an appropriate freight order (FO) type in Customizing for Transportation Management under (Freight Order Management » Freight
Order » Define Freight Order Types)
• You have specified a number range interval for FSDs in Customizing for Transportation Management under (Settlement » Freight Settlement » Define Number Range
Intervals for Freight SDs)

Settlement Profiles
• You have specified a settlement profile in Customizing for Transportation Management (Settlement » Define Settlement Profile)

• You can assign the defined settlement profile to an organizational unit for charge calculation in Customizing for Transportation Management under (Basic Functions »
Charge Calculation » Basic Settings for Charge Calculation » Define General Settings)

• you can also assign the settlement profile to a business partner in the BP - Maintain Business Partner transaction. To access the transaction, under the SAP Easy Access
screen choose (Transportation Management » Master Data)
 Freight Settlement
Transfer the settlement document to SAP ERP to post accruals
SAP TM sends the settlement document to SAP ERP when you choose Save and Transfer. SAP TM transfers the settlement information, including the source
location and destination location information for each stage in the settlement, to SAP ERP. The location information enables SAP ERP to determine different tax
rates for different locations or countries.

SAP ERP releases the SES to book accruals to accounting. The SES serves as the basis for invoice verification in SAP ERP