6.10    SAP Transportation Management

This section will cover the embedded Transportation Management functionality available in the SAP S/4HANA system.

Note

Logistics Execution Transportation (LE-TRA) is not a target architecture within SAP S/4HANA, and this functionality is replaced by the SAP Transportation Management (SAP TM) embedded in SAP S/4HANA since the release 1709. Please refer to SAP Note 2270199.

6.10.1    Transportation Management Principles

The SAP TM embedded in SAP S/4HANA includes basic shipping functionality. It includes basic transportation planning, inbound shipment management, outbound shipment management, transportation execution, shipment cost processing, shipment monitoring, and tendering for service agents.

The SAP TM includes harmonized master data and customizing, with an integration of Transportation Management and Extended Warehouse Management. The inclusion of embedded analytics for SAP TM is also a key principle.

In subsequent sections of this chapter we will drive through the details of each SAP TM principle, but it is important that you understand the key SAP TM design principle in SAP S/4HANA comparing how the SAP TM and SAP Business Suite were integrated, and what you will expect in the embedded SAP TM in SAP S/4HANA.

SAP Business Suite and SAP TM

SAP Business Suite started the process of requesting product via a purchase order, sales order, or a stock transfer order.

In parallel, in SAP TM, a transportation request document was created, and a freight unit was assigned, which later controlled the transportation operation and then triggered a deliver or a movement.

Now, an integrated process triggers a delivery document in the SAP Business Suite.

The SAP TM follows a process to create a charge management transaction or a settlement, and then triggers a carrier invoice back in the SAP Business Suite.

Figure 6.15 represents a review of the transportation management process and the integration between SAP Business Suite and SAP TM.

SAP Business Suite and SAP Transportation Management

Figure 6.15    SAP Business Suite and SAP Transportation Management

SAP S/4HANA and SAP TM

For SAP S/4HANA 1709 the process is also initiated with the creation of a purchase order, sales order, or a stock transport order. The delivery document is created in SAP S/4HANA, and in parallel in an integrated process the freight units, TM operations, charge management, and freight settlements are completed to then create the carrier invoice. All these processes happened in SAP S/4HANA and the data generated by each transportation movement is available to be reported using the SAP TM embedded analytics.

Figure 6.16 shows the simplified version of SAP S/4HANA and SAP TM.

SAP S/4HANA with Embedded SAP TM Functionality

Figure 6.16    SAP S/4HANA with Embedded SAP TM Functionality

6.10.2    SAP S/4HANA Supply Chain for Transportation Management

In this section you will learn about the harmonized master data concept in SAP S/4HANA and SAP TM, and a high level review on the functionality available in SAP TM.

Harmonized Master Data

SAP S/4HANA offered two main master data objects that are simplified from the previous SAP Business Suite master data definitions.

In SAP Business Suite you needed to maintain a material master record in the SAP TM and in the SAP Business Suite systems; in SAP S/4HANA, the Material Master record created serve the functionality required in the sales orders, purchase orders, and stock transport orders process and the SAP TM required processes.

The creation of vendors to treat freight carriers is also reduced.

SAP S/4HANA, as we discussed in this chapter, has a new concept of business partners, which represent clients and vendors. This new functionality simplified the treatment of freight and carrier providers in the system,

6.10.3    Embedded SAP Transportation Management Functionality

Now let's explore some of the available functionality of SAP S/4HANA embedded Transportation Management.

Transportation Management Functionality

With SAP S/4HANA and SAP TM you can manage the following basic functionality, transportation scheduling, vehicle scheduling activities, strategic freight management, inbound and outbound stock transfers transportation management, vehicle scheduling, carrier and service billing, and the process for shippers.

Scheduling

The transportation management scheduling function let the system calculates the start and end dates and times for all trips taking into consideration transportation calendars and times.

The scheduling of activities is based in the transshipment duration and in the defined departure calendar of the leg.

The scheduling of activities for each state of a trip is based in the stage transportation calendar defined in the transportation lane.

The transportation duration is calculated by the values entered of the distance of the lane and the average speed of the means of transport assigned to the leg.

The scheduling also takes into consideration the receiving calendar of the transshipment or destination location.

Transportation Cockpit

The transportation cockpit allows you to display the following master data locations: transportation zones, transportation lanes, schedules, default routes, connections and business partners networks.

The master data can be displayed on a map.

Strategic Freight Management

This function helps you determine the best rates you can provide in your transportation planning between locations.

Transportation Management Basic Shipping Functionality

SAP S/4HANA 1709 and SAP TM support the configuration of inbound and outbound shipments, this functionality allows you to plan transportation for order and delivery transactions.

The functionality also support the basic load planning and optimization, package building, and carrier services billing.

If you are currently using SAP TM as a standalone application, it is supported to integrate SAP S/4HANA and your standalone SAP TM, but take into consideration the overall architecture simplification. The architecture and product road map of SAP S/4HANA and the long term vision, ensures a total SAP TM integration for future releases of SAP S/4HANA.

6.10.4    Transportation Management Product Road Map

This sectioned covered the main SAP TM embedded functionality in the SAP S/4HANA 1709 release.

As a summary, the new functionality provides system and process integration with the SAP S/4HANA Enterprise Management system. There are significant advantages with the harmonization of master data at the product and business partner level, and the inclusion of SAP S/4HANA embedded analytics in SAP TM.

The SAP S/4HANA and SAP TM product direction targeted for the SAP S/4HANA 2018 release will continue with the system and process integration, with emphasis in expanding the advanced driver planning functionality. It is also planned to include the cloud-based track and trace, and continued simplification efforts of SAP TM and SAP EWM, both systems embedded in SAP S/4HANA.

The SAP TM and SAP S/4HANA product vision for 2019, will start the inclusion of industry specific applications for the retail industry. The integration to external planning and collaboration with third-party shippers and forward agents systems. The integration is also targeting to support a supply chain planning and execution that includes real-time strategic planning and scenarios simulations.