Transportation management systems (TMS) are the heart of any well-functioning supply chain. A TMS impacts every part of the supply chain process, from procurement and planning to logistics and lifecycle management. So it only makes sense that organizations which are able to harness a TMS experience more efficient planning, execution, and higher customer satisfaction than their competitors. And SAP Transportation Management (TM) is one of the most advanced transportation management solutions on the market.
In fact, SAP TM is in the Leaders quadrant in the 2021 Gartner Magic Quadrant for Transportation Management Systems. This article will navigate you through the features, benefits, and integrations of SAP Transportation Management.
Let’s get started.
What is SAP Transportation Management?
SAP TM helps organizations manage the entire transportation process, including planning and optimizing, forecasting, freight tendering, and charge management—all in real time. The solution covers all modes of transport (air, ocean, rail, and road) and is designed for shippers and logistics service providers. Making it even more flexible, SAP TM can be deployed on-premise or in the cloud.
Features of SAP Transportation Management
SAP TM was designed for all industries to help reduce transportation costs and improve logistics. Here’s a breakdown of some of its key features:
Strategic Freight Management
Freight procurement and sales are critical in supply chain management. SAP TM allows you to streamline the quote-to-contract, predict future transportation requirements, and negotiate freight rates with customers, trucking companies, and logistics service providers.
SAP TM integrates orders and purchase orders from SAP S/4HANA and other third-party enterprise resource planning (ERP) systems. It offers real-time order-to-cash and procure-to-pay processes to help manage changes in transportation demands. It also synchronizes sales and order scheduling to keep customer deliveries on time.
Transportation Planning and Optimization
Manual and automated planning, as well as optimization tools, help you to determine optimal resources and routes. By combining inbound and outbound transports and planning processes across locations, you can reduce freight costs.
Reporting and Analytics
With real-time data, you’ll be able to create reports and analyze data to make better business decisions. Along with S/4HANA, SAP TM also offers an extensive catalog of Fiori apps to visualize and support your business processes.
Integrations Made Easy with SAP Transportation Management
Over the years, SAP has mastered the art of integrations, and that tradition remains in full force with SAP TM. SAP TM seamlessly integrates with other SAP modules, such as sales order scheduling, order and delivery processing, and other logistics-related applications.
To make things even easier, SAP TM is delivered with out-of-the-box integration, including order-to-cash and procure-to-pay scenarios. You can also integrate freight settlement with SAP ERP billing and invoicing to ensure your business processes are moving full steam ahead.
Benefits of SAP Transportation Management
One of the SAP TM’s most significant benefits is the simplicity of integrating it with other SAP applications. But that’s not the only benefit you’ll want to take advantage of. Companies that use SAP TM can also expect reduced costs based on higher efficiency and scale, plus consolidation of transport orders and optimized transport planning. SAP TM’s unified transport and warehouse processes also increase transparency, giving you the ability to act quickly when you need to solve a “little” problem before it becomes a big one.
Getting started with SAP Transportation Management
Now that we’ve taken you on the journey through SAP TM’s features and benefits, are you ready to get in the driver’s seat? If so, our US-based SAP consulting team can help you implement SAP Transportation Management, or any other SAP project you may have.
Our experts will show you how to take advantage of integrations with other modules of your SAP setup to ensure you improve your supply chain management and optimize your investment.
Contact us today to get started.