SAP TMS: An Overview
With the emergence of global marketing, trading, and transportation of goods, companies with an expanded product outreach are seeking solutions that could single-handedly manage all the transportation activities. The industry is in the midst of complex environment with fragmented channels, increased product variations, and consumer demands. How should organizations prepare themselves to deal with these emerging challenges?
SAP Transportation Management System (TMS)
SAP Transportation Management helps industries in the physical transportation of goods from one place to another. Using this module, companies can easily transfer orders and deliveries by creating freight bookings, planning transportation, and selecting proper carriers.
SAP TMS supports timely execution updates for order-to-cash and procure-to-pay scenarios with its out-of-the-box integration. Customers can increase the speed at which their business cycles are executed through integrated freight settlement with SAP ERP billing and invoicing.
What does SAP TMS do?
Mass Data Processing
The SAP Transportation Management module allows you to manage freight planning, visualize order details, and maps of transportation routes. It allocates interactive planning to carry out through mass processing
Document and Instruction Management
Create documents of transportation, print bills of shipping (road, sea, air), manage status, labels, forward instructions, and such. These instructions may contain freight forwarding orders (FWO), delivery-based transportation requirements (DTR), and sales order-based transportation requirements (OTR).
By integrating SAP TMS with the SAP ERP system using the PI interface, orders and deliveries can be automatically converted into transportation requirements. The LSP Forwarding Order can be created manually in a standalone SAP Transportation Management.
Transportation Analysis & Planning
The overall transportation can be elaborately analyzed and planned for a smooth goods movement and delivery. The planning processes in the TMS module are as follows:
- Transportation cockpit that allows visibility of the goods
- Planning and optimization of the transportation process
- Goods carrier selection
- Tendering orders for potential suppliers
Using SAP TMS, companies can carry out the following essential tasks easily:
- Integrating SAP Transport Management with SAP Event Management (EM) for tracking the transportation and alerts.
- Integrating dangerous goods management within the SAP ecosystem to ensure health and safety.
- Integrating SAP Transportation Management with SAP Extended Warehouse Management (EWM).
- Producing delivery documents in SAP ERP system.
- Producing shipping documents in SAP ERP or in other systems through interfaces.
- Printing the document
- Analyze every transportation document to adjust business processes.
The Freight settlement process in the SAP TMS module allows the following:
- Defining freight or forwarding agreements.
- Defining transportation charges.
- Producing settlement documents.
- Integrating the settlement documents to SAP ERP.
- Integrating customer billing to SAP ERP.
Business Benefits of SAP Transportation Management-
- Can be utilized by any industry- retail, manufacturing, service-based, and so on.
- Reduces the transportation costs significantly.
- Carefully and efficiently analyses and plans the transportation requirements
- Easy freight settlements
- Effective logistics fulfillment
- Improved visibility and responsiveness
- Effective end-to-end order management (From placing the order to its delivery)
SAP Transportation Management brings in goods transportation planning and execution solutions for easy delivery and settlements anywhere across the globe. For retail businesses, companies can integrate SAP TMS with SAP Hybris Commerce to offer the order-to-delivery lifecycle.