Supply Chain Management Blogs by SAP
Expand your SAP SCM knowledge and stay informed about supply chain management technology and solutions with blog posts by SAP. Follow and stay connected.
Showing results for 
Search instead for 
Did you mean: 
Product and Topic Expert
Product and Topic Expert
This blog post will help readers to understand how Service Products can be Sold using SAP Transportation Management for T&L for SAP S/4HANA.

Primary use case is for the customers in Transportation & Logistics Industry (T&L), perhaps Logistics Service Providers (LSPs) who want to create attractive bundles of services primarily revolving around the Transportation of cargo but also combining value added non-transportation services into distinct Service Products part of a Service Product Catalog.

This is rather a very broad topic and can be discussed from various angles and can also be modelled in different ways in S/4HANA Transportation Management. I would rather like to focus on basics and try to demonstrate how the components in the solution can be further explored. Minor adjustments on project level can make it more usable.

You can understand further about Service Product Catalogs from the help documentation

Note: Important concept is that,  "individual services flow from the catalog to the agreement, and on to the order, to fulfill your customer’s needs."

Note: I have demonstrated the functionality in this blog post using system screen images with relevant data for ease of understanding for the readers. It should be noted that these screens and the data is from SAP’s internal test systems and has no relation to any external source.

Below you can see that I have created an example Service Product Catalog.

Service Product Catalog: Header

Service Product Catalog: Service Product COOL Transport

Service Product Catalog: Service Product SECURED Transport

Service Product Catalog can host several such configured Service Products. When we say "configured" it means the pricing around that product. From this aspect you can have different charge types, rate tables associated. I will not emphasise on this aspect as this is covered in the basics of Charge Management.

Service Product Catalog, can be directly consumed into Quotation Process (Forwarding Agreement Quotation), and can also be used as a reference while creating Forwarding Agreements.

In this blog I will use the Service Product Catalog in Forwarding Agreement and Forwarding Order

Very commonly used term in the Logistics Industry is "Tariff". Conceptually from S/4 HANA Transportation Management perspective it is a Forwarding Agreement which is available in general for every customer of the LSP. Normally the customers negotiate specific agreements with the LSP but there are also cases where general Tariffs are offered to the customers.

Below I have depicted a Forwarding Agreement (Tariff) which is created by selecting the Service Products from the Catalog.


Forwarding Agreement: Header

Forwarding Agreement: Header

Forwarding Agreement: Select the Service Products to be included

Forwarding Agreement: Included Service Products

Treatment of the General Tariff and Service Products in the Customer Order (Forwarding Order process)

In the Forwarding Order, there are several possibilities to achieve your expected behavior. Once again to help understand the flexibility I limit myself to a specific scenario.

As a user i would like to know what all possibilities I have to offer and charge the customer. I would thus like to see all pricing schemas  available to offer.


Scenario 1: Transport Mode agnostic, show all offers. Customer has not specified any specific add-on service.

Here it should be noted that the Forwarding Order (Root) needs a Mode of Transport. Consider this as a technical restriction which cannot be overcome. But this does not limit any of the contracts stored in the system.

Forwarding Order General Data: MoT is a technical prerequisite only

Forwarding Order: Customer Business Partner

Below during charge calculation, system has the capability to evaluating and displaying all possible Agreements.

A bit of UI tweeking can help to bring more fields like Service Product, Calculation Sheet Description etc.. to make it clear what those offers really mean. But this can be easily achieved on project basis.

Forwarding Order: Charge Calculation: View all possible offers

User is able to select the required proposal to charge to the customer.

Scenario 2: Transport Mode agnostic, show offers relevant to requested service only. Customer has specified COOL Transport service.

The customer has specifically requested a COOL Transport service. User can assign the relevant service product in the order.

Forwarding Order: Assigning the required service product

Forwarding Order: Assigning the required service type

Forwarding Order: Charge Calculation Based on the Assigned Service Product

Forwarding Order: Charge Calculation Based on the Assigned Service Product



Hope this gives a high level understanding how the Service Products can be used in the Forwarding Order process. In my next blog i will cover the Service Product coverage in the Quotation Process.

Happy Reading and Feedback appreciated...