Added Value of Transportation Management in S/4 HA...

eric_osterroth

SAP Transportation Management (TM) on Business Suite has long been a trusted solution for managing complex logistics processes. However, with SAP's introduction of Transportation Management on S/4HANA Cloud, Private Edition, many might wonder why companies are still holding on to their side-by-side TM solution on the Business Suite. The S/4HANA Cloud, private edition offers transformative business value, streamlined processes, and advanced features that can elevate logistics operations to a new level. Let’s explore the core benefits of Transportation Management in S/4HANA Cloud, Private Edition and examine why it's the right time to move now.

Enhanced Business Value with TM on S/4HANA Cloud, Private Edition

Below are just some highlights that show the value that is delivered with TM on S/4HANA Cloud, Private Edition. This is just a very small fraction of the features, that have been delivered since TM on Business Suite Version 9.6. But its shows significant value by improving the business processes in many areas along with streamlined processes that lastly result in lower costs of operation and higher customer satisfaction.

1. Advanced Order Management

Sales Order Scheduling: SAP S/4HANA Cloud, Private Edition, enhances scheduling of sales orders by integrating transportation management (TM) into the Order-to-Cash process. Key scheduling features include backward/forward planning linked to available-to-promise (ATP) checks and backorder processing. Utilizing TM master data allows service agents to provide accurate delivery commitments to customers during order entry, increasing transparency and customer satisfaction.
Sales Order Availability Check with TM Scheduling Result Screen
Improved Integration of Scheduling Agreements: Integrating sales and purchase scheduling agreements ensures smooth data flow across processes, enhancing visibility and consistency. This includes both forecast and Just-In-Time (JIT) schedules, improving coordination with suppliers and production.
Integration of Sales Delivery Schedules
Integration of Just in Sequence (JIS) and Just in Time (JIT) calls: With the integration of supply-to-production JIT calls, transportation management now supports header-level-based JIT call integration. This is enabled by integrating freight unit, providing document flows & also ASNs with JIT/JIS specific handling promoting data consistency across systems and reducing delays in production due to supply chain issues.

Integration of JIT call to TM

2. Superior Transportation Planning and Optimization

Driver Planning with Regulatory Constraints: The S/4HANA Cloud, Private Edition introduces a planning feature that respects regulatory constraints such as driving hours and mandatory rest periods. This feature aligns transportation plans with local and international regulations, leveraging an embedded scheduler to ensure compliance and optimize workforce management.

TM Scheduling takes legal driving times restrictions into account. This can be visualized on the Gantt Chart

New Stacking and Load Planning Capabilities: Advanced load planning capabilities incorporate free positioning, a new load planning algorithm, and stacking configurations for items. It can for instance be used for cylindrical products. This maximizes vehicle space utilization and offers enhanced manual positioning options for complex loads.
Examples for the Load Planning Result using Free Positioning
End-to-end support for Loading Meters & Number of Pallets: Reflecting industry standards, TM now supports loading meters and pallet-based planning, common in European subcontracting and invoicing. This feature spans end-to-end processes, from planning and EDI communication to billing.
Loading Meters & Pallets are now supported End-to-End

3. Eco-Friendly and AI-Enhanced Capabilities

Sustainability in Transportation: For organizations prioritizing sustainability, S/4HANA Cloud, Private Edition enables optimization based on greenhouse gas (GHG) emissions. The TM module calculates emissions by truck type, load, and route, supporting environmentally conscious decision-making and emissions reporting.
Distribution of calculated CHG emissions to freight order items
AI-Assisted Goods Receipt and Conversational Planning: Leveraging AI for goods receipt analysis, the system expedites unloading with automatic document checks and flags exceptions, minimizing manual interventions. Additionally, a conversational interface in the planning cockpit allows for natural language interaction, streamlining user experience and reducing operational errors.
AI assisted Conversional Planning in the Transportation Cockpit

4. A new State-of-the-art Integration of your Warehouse and Transportation Processes

Advanced Shipping and Receiving is the new way of integrating your warehouse with your transportation processes. No matter, if you use Extended Warehouse Management, Stock Room Management or Inventory Management, with the Adv. S&R a new Shipping and Receiving Cockpit for multiple truckloads in a unified UI supports Truck check-In/out, loading and unloading at the warehouse.
This includes also decentral warehouses and processes including your customs system (GTS).

Schematic flow of Advanced S&R and Unified Adv. S&R User Interface

5. Comprehensive Transportation Execution and Collaboration with Carriers

Multi-Modal Enhancements for Global Logistics: The TM enhancements seamlessly handles ocean, air, and land logistics, enhancing end-to-end visibility and process integration for global supply chains. Particularly for multi-modal shipping the communication is re-engineered and new process variants for ocean and air shipping e.g. container left at port are introduced.
"Container Left at port" process and error handling in the freight booking
Carrier Collaboration with Fiori Apps: Carrier collaboration apps, built on SAP Fiori, simplify interactions with logistics partners. Features such as agreement management, subcontracting, milestone tracking, invoicing, and credit memo processing are seamlessly integrated, reducing administrative burdens and enhancing partner transparency.

New Fiori Apps for the Carrier to Communicate with the Shipper

Freight Document Integration with Business Networks for Logistics: Through Business Networks for Logistics, SAP TM offers contracting, tendering, and real-time updates, fostering comprehensive collaboration with logistics service providers on a unified platform.

Integration of TM in S/4HANA Cloud, Private Edition with BN4L

6. Enhanced Freight Costing Capabilities & Settlement

Product-Based Charge Calculations: Using country and mode specific commodity codes, this feature calculates charges based on product commodity codes automatically, ensuring compliance and simplifying financial operations
E2E Process from Product Classification to Execution to Invoicing

Settlement of Service Items or Stages to Additional Service Providers: Freight documents often include service items ar additional executing service providers. With this enhancement the number of documents can be significantly reduced and visibility into charges for transportation activities can be increase as its possible to settle costs to additional (logistics) service providers.
Settlement of Service Items in a Freight Execution Document

7. Ease of Implementation and Future-Ready Best Practices

TM on SAP S/4HANA Cloud, Private Edition includes out-of-the-box best practices to accelerate implementation and reduce costs, making it easier for companies to adopt a future-ready logistics solution.

Conclusion: The Future of Transportation Management with SAP S/4HANA Cloud, Private Edition

The business value offered by SAP S/4HANA Cloud, Private Edition for TM is undeniable. Companies willing to make the transition can benefit from a solution that not only optimizes logistics but also meets modern demands for sustainability, real-time collaboration, and AI-driven efficiency. While the decision to transition involves considerable planning, the potential for improved operational performance and business innovation makes it a compelling choice for forward-thinking companies.

Switching to SAP S/4HANA Cloud, Private Edition may seem challenging, but the benefits far outweigh the obstacles. Ready to unlock the future of logistics with SAP?