To many professionals who are not aware of What is SAP TM; SAP Transportation Management (TM) is a powerful module within the SAP logistics execution system that helps companies plan, execute, and monitor their transportation operations. It’s an end-to-end transportation management solution that enables companies to optimize and automate all aspects of transportation, from freight procurement and carrier selection, to shipment execution and freight billing.
With the capability to integrate with other SAP modules such as Sales and Distribution (SD), Materials Management (MM), and Production Planning (PP), SAP TM provides a holistic view of transportation operations, helping companies increase efficiency and reduce costs.
Capabilities of SAP TM
Transportation Planning and Optimization
SAP TM includes tools for transportation planning and optimization that help companies plan and optimize transportation routes and modes. It allows for the creation of transportation scenarios based on a variety of factors such as mode of transportation, carrier, and shipping point. These scenarios can be used to determine the most cost-effective routes, taking into account various constraints such as capacity, transit time, and service level agreements.
Freight Procurement
SAP TM also includes capabilities for freight procurement that help companies to manage carrier performance, automate freight procurement and billing processes. The system allows for the creation of RFQ (Request for Quotation) and RFP (Request for Proposal) documents, which can be sent to multiple carriers. It also enables the evaluation of carrier responses and the selection of the most suitable carrier based on predefined criteria such as price, lead time, and service level agreements.
Shipment Execution
SAP TM offers functionality for shipment execution which include the management of the entire shipment process from creating the shipment order to final delivery. It offers tools for tracking the status of shipments, managing freight bills, and monitoring the performance of carrier partners.
Transportation Analytics
SAP TM also includes tools for transportation analytics that allow companies to analyze transportation data and extract actionable insights. Companies can use the system to track key performance indicators such as delivery on-time performance, transportation costs, and carrier performance.
SAP TM supports the management of all types of transportation, including road, rail, sea, and air, as well as specialized modes such as intermodal, less-than-truckload (LTL), and full-truckload (FTL). It also supports handling of hazardous materials and compliance with transportation regulations.
SAP TM enables companies to improve visibility into transportation operations and make data-driven decisions. With the help of the transportation planning and optimization tools, companies can reduce transportation costs by selecting the most cost-effective routes and modes of transportation. The freight procurement capabilities enable companies to automate the process of procuring and billing freight and make it more efficient. The shipment execution functionalities can help companies in monitoring the entire shipment process and tracking the status of shipments in real-time. Additionally, the transportation analytics tools allow companies to extract actionable insights from transportation data, and monitor key performance indicators such as delivery on-time performance, transportation costs, and carrier performance.
Conclusion
To conclude, SAP Transportation Management (TM) is a comprehensive tool that allows companies to optimize and automate all aspects of transportation operations. The wide range of functionalities that it offers, such as transportation planning and optimization, freight procurement, shipment execution and transportation analytics, makes it an ideal solution for companies looking to streamline their transportation operations. Furthermore, the ability to integrate with other SAP modules such as Sales and Distribution (SD), Materials Management (MM), and Production Planning (PP) allows for a holistic view of the transportation process and helps companies make data-driven decisions.