SAP Business Network for Logistics (formerly known as SAP LBN, SAP Logistics Business Network) is a carrier collaboration solution for the end-to-end freight ordering process between shippers, carriers, freight forwarders and logistics service providers as well as providing real-time global tracking and tracing. It streamlines freight management and integrates seamlessly to SAP’s TMS solution SAP TM as well as SAP ERP (SAP ECC and SAP S/4 HANA Enterprise Management). SAP Business Network for Logistics is comprised of three individual but integrated solutions:
- SAP Business Network Freight Collaboration: Handles the end-to-end freight order process from tender to freight order to invoice and settlement.
- SAP Business Network Global Track and Trace: Manages real-time tracking and tracing of shipments, using maps and graphics to visualize shipment status as well as projection of new ETAs based on delays or disruptions.
- SAP Business Network Intelligent Insights: Analytics and reporting solution, with pre-built KPI’s, graphics and reports.
So, what are the business benefits of SAP Business Network for Logistics?
Efficiency: Digital ordering streamlines the process of requesting and confirming freight orders, reducing the time and effort required compared to traditional methods such as phone calls or email, which translates into faster order processing, reduced administrative overhead, and improved productivity for both shippers and carriers.
Accuracy: By reducing manual data entry, digital ordering helps ensure the accuracy of shipment details such as product quantities, dimensions, and delivery addresses. This reduces the likelihood of errors, discrepancies, and delays in the fulfillment process.
Visibility: Digital solutions like SAP Business Network for Logistics provide real-time visibility into the status of freight orders, allowing shippers to track shipments from origin to destination. This visibility enables proactive monitoring, exception management, and timely intervention to address any issues that may arise during transit.
Cost Savings: Digital order management can lead to cost savings through various means. By automating order processing and communication, companies can reduce labor costs associated with manual order entry and confirmation. Additionally, improved accuracy and visibility can help minimize costly errors, rework, and disruptions in the supply chain.
Enhanced Collaboration: Digital order management fosters closer collaboration between shippers and carriers by facilitating seamless communication and data exchange. This enables better coordination of transportation activities, improved responsiveness to customer needs, and the ability to quickly adapt to changing market conditions.
Improved Customer Service: Faster order processing, higher order fulfillment rates, and real-time shipment tracking contribute to a better overall customer experience. Digital order management allows companies to meet customer expectations for speed, reliability, and transparency in the delivery of goods, leading to higher satisfaction and loyalty.
Data Insights: Digital order management and track and trace thru SAP Business Network for Logistics capture valuable data on freight transactions, including order volumes, shipping patterns, and carrier performance and invoices. Analyzing this data can gain insights into supply chain operations, identify optimization opportunities, and make data-driven decisions to improve efficiency and reduce costs over time.
