Enterprise Resource Planning (ERP) systems are how most modern businesses manage critical information and provide performance metrics. In fact, plenty of businesses wouldn’t be able to function at all without an ERP to manage their core operations. But does that make an ERP the right tool to keep up with complex transportation management? In most cases, the answer is no. 

That doesn’t mean you need to ditch your ERP for something like SAP Transportation Management (TM)—this isn’t an either/or situation. What we recommend is a hybrid strategy through integration. Integrating your ERP and SAP TM can provide your organization the technology infrastructure you need to enable better visibility, data insights, and faster results. 

Still skeptical? Read on for five benefits of integrating ERP and SAP TM.

1) Improved Visibility Across the Supply Chain

An ERP alone won’t give you the real-time data on freight movements that can help you avoid issues before they pop up. But by integrating SAP TM, you’ll get a comprehensive view of your logistics functions and carrier’s performance. The solution will give you detailed reports across the supply chain using real-time shipping data, which is invaluable when it comes to controlling freight and reducing costs.

2) Increased Automation 

Integrating ERP with SAP TM increases automation by allowing the automatic selection of carriers. TM provides forecasts how a particular carrier will impact the business financially and then selects the most efficient carrier for transportation. The solution also allows automated order processing to eliminate that tedious work—yet another way you can reduce costs by eliminating manual errors.

3) Better Customer Experience

Many ERPs include customer relationship management (CRM) functionality. By integrating that CRM with SAP TM, you can take customer experience to the next level by:

  • Letting customers schedule specific pickups based on time, location, and other details to be more accurate with deliveries. 
  • Manage shipment disputes due to scheduling, damage, and other issues. 
  • Gain access to a single portal where users can update freight charges to show changes made during shipment. 

4) Enhanced Transportation Planning

ERP and SAP TM give you access to better analytics and reporting to enhance transportation planning. Users can consolidate shipments based on load optimization, capacity, and other factors, helping to reduce shipment costs and drive efficiencies. 

5) Deliver Best-of-breed Functionality 

An ERP and SAP TM offer different but complementary benefits when it comes to functionality for your organization. The goal of your ERP is to manage business information like procurement, finance, and inventory, while SAP TM taps into your entire transportation lifecycle, including carrier performance, freight costs, and dynamic shipment planning. Together, these best-of-breed tools can deliver the functionality needed to move your business forward. 

How to Integrate ERP and SAP TM

Many organizations think of their ERP as a silver bullet. And while they are powerful tools, integrating them with SAP TM will give you the extra boost you need to help reduce costs, increase functionality, and improve your supply chain overall.

So, have we convinced you to integrate ERP and SAP TM yet? If so, we’re here to help you make it happen. Our US-based SAP consulting team is ready to help you integrate your existing ERP with SAP TM. Need help with another SAP-related project? We’ve got you covered. Our senior-level SAP experts are ready to apply their experience to your project to ensure that it succeeds.

Contact us today to get started.