Overview of SAP Transportation Management

SAP Transport Management deals with all the activities of transportation of goods from business to the clients. SAP Transportation Management (SAP TM) is an application from the SAP AG. SAP TM Solution has been designed for transportation and logistics demand of all businesses and helps them to reduce transportation costs and enhance logistics efficiency and flexibility. It improves the structure of SAP's existing transport solution for businesses.

The Transport Management System operations of various types, including tracking and distributing with each part of transportation resources, fuel costing, routing and mapping, warehousing, reports, EDI implementations, tourist and freight handling, transport selection, administration, and accounting.

SAP TM is part of the SAP Supply Chain Management (SAP) that involves transportation operations and may be part of an enterprise resource planning system. It consists of business processes that involve the assignment, planning, and settlement of transportation management services.

SAP TM allows you to deal all procurement and shipping national and international shipping in the corresponding environment and gives traceability and visibility of quantities, freight, parts, and logistics processes. With SAP TM, you can plan the transportation of shipments for many common order types such as sales and purchase orders, accounts, and capital transfers.

The advantage acquired from using Transport Management System in SAP includes the following:

·         Reduced costs and enhanced operational performance

·         Improved transport collaboration and supply utilization

·         Active, end-to-end order and process management

·         Effective logistics and satisfaction processes

·         Enhanced execution visibility and responsiveness

Key Features of SAP TM Systems

Key Features of SAP TM Systems

Features of the SAP Transport Management System that provides to make a supply chain lean and optimized can be broadly classified into three categories:

·         Optimization

·         Execution

·         Performance Management

Optimization

1. Mode and Carrier Selection

This feature helps in the proper selection of carrier and mode of transportation based on service demands in terms of cost, productivity, and distance. The system is created to provide the carrier choices of the best carrier to choose from based on previous performance, cost and business terms. This flexibility in feature provides a carrier to understand if one carrier over another is best suited. You may also find that you have multiple shipments that are more time sensitive and need to give those to various carriers best suited for specific lanes.

2. Route Optimization and Consolidation

The system is invented to implement the most optimal route for transports. It can at once achieve to plan and execute routing for numbers of loads either by consolidating, pooling, and even for multimodal transportation. Consolidating freight not only saves cost but avoid unnecessary desert multiple trips thereby saving fuel and reducing carbon discharge.

Execution

1. Integrated EDI

EDI enabled standard format of information exchange creates a benchmark for perfection. Organizations gain increased clarity in their functions and experience an extraordinary reduction in paperwork. Integration of EDI within TMS Systems produce high-end accuracy in data and speed up critical information exchange between the businesses and at the same time provides greatly to create a green supply chain.

2. Integrated Audit and Payment Module

Auditing and payment systems allow a TMS to calculate the freight charges, evaluate the service options and identify the areas for development. This enables immediate acknowledgment and resolution of overcharge related issues with the carriers and customers alike. Also, links to ERP or any financial system allow efficient handling of payment systems.

3. Integrated Warehouse Management System

Integrated WMS module within existing at TMS provides real-time information about warehouse facility such as in and out inventories movement, material tracking, dispatching the shipments and many such key performance indicators. Access to this real-time information improves the process decision making.

Performance Management

1. Visibility

Visibility features within TMS systems, provide a detailed view of every step of the transportation process thereby making them easier to manage. Accurate and timely visibility of the critical information of the entire supply chain enables to keep a healthy balance between demand and supply through proactive management of the flow of goods. This helps to bring down the overall cost of transportation.

2. Track & Trace

Track & Trace feature allows real-time exchange of purchase information between the carrier, distributor, and customer. Regular and responsible sharing of purchase information beyond the organization through web-based access, increases visibility, the efficiency rate of tracking and monitoring, and efficient management & reporting.

3. Business Intelligence and Analytics

This feature includes the expert use of data warehousing, dashboard functionality and report formation in standard formats. It aims at the gathering, explaining & summarizing supply chain and transportation metrics and data to employ them resourcefully for effective decision making, identifying needs & key areas of functional enhancement, and evaluating the effectiveness of existing strategies.

SAP Transportation Management Key Process

SAP Transportation Management Key Process

1.  Planning and Decision-making: A TM system provides essential information in real time to enable shipping specialists to design and make choices according to a given set of parameters. These include choosing between a selection of carriers on transportation costs, shorter routes, and fewer stops along the way.

2. Execution of Transportation Plans: A TMS performs it faster and easier to execute transportation plans by automating necessary functions such as carrier rate acceptance, dispatching, and EDI.

3. Visibility: A TMS makes it comfortable for a logistics manager to have transportation visibility along the way so that everyone concerned, including the customer, knows specifically where the freight are at any time.

4. Measurement: Most TMS have a logistics key performance indicator (KPI) reporting function that makes it easy to measure performance.

SAP Transportation Management Training

SAPVITS is the best SAP TM Online Training Institute in Bangalore, Hyderabad India. The SAP Transportation Management (TM) online course will enable you to manage the entire process of delivering the products or goods from the manufacturer to the consumer. SAPTransportation Management Module will integrate with other modules such as SAP MM, SAP SD, and SAP Finance. SAPVITS will offer this SAP Transportation Management Course with Online Training based on your flexible timings. We provide SAP TM Training Material, Free Demos, Server access facility. Visit our institute for SAP TM Course details and fees.

At SAPVITS to attend Free Live Demo on SAP Transportation Management Training enroll now: https://goo.gl/HYV5qK

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