Digital Logistics and Transportation (based on SAP TM)

Do you run a company with extensive logistics networks and high shipment volumes? Planning to expand to new regions or countries and thinking, how to comply with local regulations?

Are you dealing with several transportation service providers and thinking how to make the optimal, cost-effective decisions?

Are you seeking ways to speed up the delivery, reduce transportation costs, and enhance transparency of shipment processes?

Meet SAP Transportation Management — an application designed to streamline and optimize your logistics processes: transportation planning and execution, freight management, order management, carrier selection, and freight cost calculation

For companies with international or multiregional operations, SAP TM offers capabilities to manage global trade compliance requirements (customs documentation, import/export regulations, trade sanctions screening, etc). It helps ensure adherence to regulatory requirements and minimize the risk of penalties.

Real-time visibility allows you to track shipments, monitor carrier performance, and proactively manage incidents. As a result — enhanced decision-making and faster responses to disruptions or delays

1.
Track your transport orders online. By implementing Transportation Management, you always know where the order is and when it's going to arrive.
2.
Capture and manage transportation-related events: pickups, deliveries, delays. Receive automated notifications and alerts to ensure timely response and resolution.
3.
Evaluate and select the most suitable carriers, based on predefined criteria such as cost, transit time, and service level agreements.
4.
Reduce transportation costs by consolidating shipments, optimizing loads, building optimal routes for drivers, and minimizing empty miles.
5.
Provide better customer service by delivering shipments on time, accurately tracking orders, and proactively resolving any issues.

Traditional Transportation Management

SAP Transportation Management

Efficiency

Relies heavily on manual processes: phone calls, emails, spreadsheets to plan, execute, and track transportation activities.

Time-consuming and prone to errors approach.

Digitized transportation processes, enabling companies to streamline workflows, automate routine tasks, and achieve higher levels of efficiency.

Automated carrier selection, route optimization, freight planning, and real-time tracking of shipments.

Visibility

Lack of real-time visibility into transportation activities.
Hard to track shipments, monitor carrier performance, and proactively manage exceptions or delays.

Real-time visibility into transportation operations, allowing companies to monitor KPIs and quickly respond to changes or disruptions.
Enhanced control and decision-making with dashboards, alerts, and reporting capabilities.

Cost Optimization

Limited ability to optimize transportation costs due to manual planning processes, suboptimal routing, and a lack of visibility into cost drivers.

Optimized transportation costs due to consolidating shipments, selecting the most cost-effective carriers, and optimizing routes based on cost, transit time, and service level agreements. Embedded tools for freight cost calculation, analysis, and optimization.

Compliance

Prone to inconsistencies and compliance issues due to manual data entry, communication errors, and a lack of standardized processes.

Ensures accuracy, consistency, and compliance with transportation regulations and industry standards through automated workflows, standardized processes, and built-in compliance checks.

Scalability

Limited scalability and flexibility, especially for companies with growing transportation needs or complex logistics networks.

Scalable and flexible, easily adapting to changing business requirements. Supports complex transportation operations. Provides integration capabilities with other SAP and third-party systems.

Suitable For:

Complex Logistics Networks Industries like Retail, FMCG, Automotive, and Manufacturing that have complex logistics networks involving multiple transportation modes, routes, and distribution channels — to optimize the costs of transportation and ensure faster delivery.
High Volume Shippers Companies that ship large volumes of goods on a regular basis: Retailers, Wholesalers, Distributors, and Manufacturers with significant transportation requirements — to optimize freight planning, consolidate shipments, and negotiate favorable rates with carriers.
Multi-Regional Operations Companies involved in international trade, import/export, and global distribution with cross-border shipments, and complex customs requirements — to manage trade compliance and ensure timely delivery across borders.
Time-sensitive Industries Industries with time-sensitive transportation requirements: Perishable goods, Pharmaceuticals, and High-tech electronics — to optimize delivery schedules, minimize transit times, and ensure on-time delivery to meet customer demand.
E-commerce and Omnichannel Retail Companies operating in the e-commerce and omnichannel retail space: Retailers, Online Marketplaces — to manage diverse transportation requirements, including parcel shipping, last-mile delivery, and fulfillment from multiple DCs.
3PL Providers 3PL providers can benefit from SAP TM's capabilities to optimize transportation operations, manage multiple clients, and offer value-added services such as freight consolidation, cross-docking, and vendor-managed inventory.
Regulated Industries Industries with strict regulatory requirements (e.g., pharmaceuticals, food and beverage, healthcare) can benefit from SAP EWM's compliance features for tracking product genealogy, managing hazardous materials, and ensuring compliance.

Key Users of SAP TM

1.
Logistics Managers: monitor transportation performance, track shipments, and manage carrier relationships to ensure on-time delivery and customer satisfaction.
2.
Transportation Planners: optimize shipment routing, carrier selection, mode of transport, and scheduling based on factors such as cost, service level agreements, and transit times.
3.
Freight Managers: streamline freight planning, optimize freight rates, and analyze freight spend to reduce transportation costs.
4.
Carrier Managers: select and onboard carriers, track carrier performance metrics, and ensure compliance with carrier agreements
5.
Supply Chain Analysts: generate insights, develop KPIs, and make data-driven decisions to optimize transportation processes.
6.
Customer Service Representatives: track shipments, provide status updates, and communicate with customers regarding delivery schedules and exceptions.
7.
Compliance Officers: monitor regulatory requirements, manage documentation, and ensure adherence to compliance standards throughout the transportation process.
8.
IT Administrators: manage system configurations, user access, integration with other systems, and technical support to ensure the smooth operation of SAP TM.

Main advantages of SAP TM Implementation:

Returns of Investments:

After implementing SAP TM (SAP Transportation Management), organizations can expect several key Return on Investment (ROI) drivers that contribute to cost savings, efficiency improvements, and overall business value. Some of the key ROI drivers include:

Reduced Transportation Costs:

by minimizing empty miles, improving carrier utilization, and negotiating favorable rates, organizations can achieve significant savings in transportation expenses.
Improved Operational Efficiency:

achieve higher levels of productivity and operational excellence by eliminating redundant processes and increasing resource utilization.
Optimized Inventory Management:

facilitate better synchronization between transportation and inventory management, reduce stockouts, and improve inventory turnover rates.
Increased Customer Satisfaction:

proactively communicate with customers regarding shipment status and delivery schedules and ensure on-time delivery to enhance loyalty and retention.
Reduced risk of fines and non-compliance penalties:

maintain regulatory compliance, manage documentation, and implement risk mitigation strategies to protect your reputation, minimize liabilities, and safeguard against potential supply chain disruptions.