Trying to wrap my head around the following statement from the course
"If shipping activities other than transportation planning are involved prior to the transportation process, the process based on the ERP delivery is more likely to be used. If goods are sold with all shipping activities considered, the ERP order will be the basis for transportation planning."
Is it possible to illustrate with an example on when to recommend OTR vs. DTR?
Thank you beforehand
Order-based transportation planning has the following advantages:
-the order is visible in the TM Cockpit EARLIER. Immediately after the quantity is confirmed. This provides more time for anticipatio and planning.
-if orders generate FUs, its up to the Transportation team to generate deliveries AFTER they have arranged for a truck (after FO creation). So, deliveries are created and are being visible in EWM AFTER it is certain that transportation will happen. This prioritizes the right stock when stock is rare. The alternative is to create deliveries and pick every thing regardless if it will be transported in the near future (delivery-based).
-its up to the transportation team with all the tools and visibility in the TM cockpit to decide which FUs go together, which products or customers are to be combined.
-if there is a splitting logic based on weight, say FUs must be less than 20 Tons and orders are often 40 Tons. it is easier and more corect to use standard TM freight unit building for splitting rather than to implement a complicated user-exit logic in sd copy control (old school!).
-When EWM is integrated, it can be a problem to have a delivery early in the process. As soon as it is distributed, it becomes unchangeable in ERP. So better to create it from TM once things are clear and dont change.
Delivery-based transportation has the following advantages
-Its up to the SD team, to the user or to a batch to create deliveries and to potentially split the deliveries.
-its the sd user who decides to create a delivery and make it visible to the transport team (what if he forgets ...)
-if the logic to split is decided by the user who creates the sd order, it is better to let him create the deliveries, let him pick the items that shall go together (that is rare!)
-if the process shall happen AFTER event, just to update freight orders for costs and if the delivery to freight order relation is one-to-one and shall be trigged by a background program, it can make sens to use delivery-related transportation planning. its no use to see the Fu generated early when the delivery is created right afterwards by the development.
-if the end customer uses the basic version, he can only use delivery-based planning.
Just to share my personal exprience: I see more and more TM customers use order-related transportation planning and see a lot of advantages. Any comments are more than welcome.