SAP TM enables companies to control all inbound processes (freight purchasing) and outbound processes (freight sales) of their logistics centrally. To this end, the solution comes with a range of function modules:
Forwarding order management
Forwarding order management in SAP TM enables companies to create, confirm and manage their customers' forwarding orders.
In addition, diversion offers can be created and sent directly to customers. During order creation, the system can automatically calculate the optimum transport route and carry out an initial transport cost estimate.
Freight order management
Freight order management in SAP TM forms the basis for structured transport planning. It enables freight orders to be created and processed and assigned to the appropriate means of transport.
Freight forwarders and logistics service providers can use this module to optimally manage their transport capacities and automate transport processes.
The transport carrier can either be selected manually or controlled by stored optimisation rules. Companies also have the option of either sending freight orders directly to freight forwarders or carrying out a tender in advance.
Document management
Document management in SAP TM ensures smooth administration of all transport-related documents. Transport documents such as waybills, delivery notes or customs declarations are generated automatically and can be sent to the relevant parties. Digital archiving functions enable documents to be searched for and tracked quickly.
SAP TM also supports various file formats and communication channels so that documents can be sent via EDI, e-mail or other systems. By automating document creation and processing, sources of error can be minimised and compliance requirements can be met more easily.
Transport planning
Transport planning is one of the core modules in SAP TM. It was developed to realise the most efficient control of logistical processes.
Transport orders from different areas - such as inbound and outbound logistics, returns or store deliveries - are brought together centrally in SAP TM transport planning. This facilitates holistic planning, in which capacities can be optimally utilised and costs reduced.
Planning can also be carried out on the basis of both real-time data and simulations. SAP TM also supports various planning approaches - from manual scheduling to fully automated route planning in 2D or 3D.
Transport cost optimisation
The optimisation of transport costs is another important component of SAP TM. With the help of specialised optimisation servers, various scenarios can be simulated to determine the most economical solution.
The system analyses factors such as loading capacities, freight rates and preferred transport routes in order to find the optimum combination of costs and efficiency.
The simulations also utilise external systems such as GIS databases to enable dynamic, route-specific calculations. This enables companies to ensure that every transport is carried out at minimum cost while maintaining a high quality of service.
Tenders
SAP TM also includes a tendering function with which transport orders can be efficiently awarded to hauliers. Depending on the company strategy, this process can be fully automated or managed by dispatchers.
The system supports various communication channels such as EDI and e-mail. The tenders can be carried out either sequentially or serially, with offers being obtained and compared within defined time windows.
Condition management
In contrast to conventional ERP systems, SAP TM includes comprehensive condition management for complex logistics structures.
Companies can store extensive condition tables for different modes of transport - for example general cargo or containers - and automatically compare them with each other. This function enables flexible pricing and more precise calculation of transport costs.
The maintenance of the corresponding tables is simplified by special tools so that even large volumes of data can be processed efficiently.
Monitoring (Track & Trace)
The monitoring module in SAP Transportation Management helps with the continuous monitoring of all transport processes in real time. Customers and haulage companies can call up the current status of a delivery at any time, while drivers receive automated information on disruptions or changed routes.
The system also enables quick clarification of billing differences or delivery delays through transparent communication between the parties involved. Third-party solutions such as freight exchanges or telematics systems can be integrated via interfaces to make transport control even more precise.
Freight invoicing
Freight invoicing in SAP TM allows transport costs to be evaluated in detail. Companies can break down costs down to the level of individual shipments and utilise various billing mechanisms. Invoice approvals and checks can be carried out either manually or fully automatically.
The system also supports various billing models, including the credit note procedure and automatic cost allocation based on master data. This guarantees precise freight cost control and ensures efficient handling of payment processes with transport service providers.
Analyses and reports
Last but not least, SAP TM includes comprehensive analysis and reporting functions to optimise transport processes based on data. Companies can generate detailed reports on
Real-time dashboards also enable continuous monitoring of KPIs.
Integration with SAP Analytics Cloud or other BI tools makes it possible to analyse historical data and derive forecasts for future transport costs. Furthermore, customised reports can be generated automatically and distributed to relevant stakeholders.