Transportation Management with SAP TM

Dr Bernd Lauterbach studied and received a PhD in electrical engineering. After spending several years doing Assembler, C /C++, and Occam programming for image processing, GIS, and auto routing systems, he joined SAP in 1995 at the SAP headquarters in Walldorf, Germany as part of the SAP ERP LE-TRA development team. From 2000 to 2007 he was the lead architect for SAP Event Management and SAP Auto ID Infrastructure, and subsequently led development of SAP Transportation Management as a program/development manager. A second focus of his work is supporting transportation projects of strategic SAP customers from shipper and LSP industries. Since 2008, Bernd has worked as a senior business solution architect in the IBU Travel & Transportation area of SAP responsible for cargo and logistics. Stefan Sauer has studied international business information technology at the Cooperative State University in Mannheim, Germany. After joining SAP in 2007, Stefan gathered experience in development and consulting teams in Germany as well as with SAP Research in Australia. With the ramp-up of SAP Transportation Management 8.0 in 2010, he accompanied the success of the software product as an SAP TM consultant, being involved in implementation projects in retail and ocean freight industries and participating in customer engagements in other industries such as fashion, rail, air freight, and manufacturing. Stefan supports projects both from a business process perspective by creating blueprints and implementation concepts, and from a technical perspective as the link between project and custom development. Furthermore, he is a trainer for SAP TM for both functional and technical training courses.

... Preface ... 15

... Introduction ... 21

... Transportation and Logistics ... 23
... Protagonists and Roles ... 25
... Shippers ... 27
... Logistics Service Providers ... 27
... Modes of Transport ... 30
... Maritime Logistics ... 31
... Air Freight Logistics ... 32
... Land Logistics ... 33
... Multimodal Transportation ... 35
... Transportation Processes ... 36
... Direct Shipments ... 36
... Partial Loads ... 37

1 ... SAP Transportation Management Foundations ... 41

1.1 ... SAP Business Suite and SAP NetWeaver ... 41
1.2 ... SAP TM as Part of the SAP Business Suite ... 57
1.3 ... Functional Overview of SAP TM ... 69

2 ... Solution Architecture and Technological Concepts ... 85

2.1 ... Technological Foundation of SAP TM ... 87
2.2 ... User Interface Technologies ... 100
2.3 ... Frameworks and Tools Used throughout SAP TM ... 111
2.4 ... Integration Technology with SAP TM ... 129

3 ... Master Data ... 143

3.1 ... General Master Data ... 145
3.2 ... Transportation Network ... 182
3.3 ... Resources ... 233

4 ... Transportation Requirements and Order Management ... 261

4.1 ... Integration of SAP ERP Documents ... 263
4.2 ... Forwarding Orders and Forwarding Quotations ... 289

5 ... Transportation Capacity Management ... 341

5.1 ... Capacity Management Process ... 342
5.2 ... Allocations ... 351
5.3 ... Business Shares ... 359
5.4 ... Freight Bookings ... 362

6 ... Transportation Planning ... 379

6.1 ... Freight Units ... 380
6.2 ... Transportation Units ... 399
6.3 ... Manual Planning ... 408
6.4 ... Automated Planning ... 470

7 ... Carrier Selection and Subcontracting ... 503

7.1 ... Carrier Selection ... 504
7.2 ... Freight Order Management ... 522
7.3 ... Freight Tendering ... 542

8 ... Transportation Execution and Monitoring ... 553

8.1 ... Transportation Execution ... 554
8.2 ... SAP Event Management ... 585

9 ... Transportation Compliance ... 621

9.1 ... SAP Global Trade Services ... 625
9.2 ... SAP Environment, Health, and Safety Management ... 646
9.3 ... External Compliance Service Providers ... 662

10 ... Transportation Charge Management ... 667

10.1 ... Charge Calculation Master Data ... 669
10.2 ... Contract Determination ... 700
10.3 ... Charge Calculation Logic in Selling, Buying, and Internal Invoicing Processes ... 708

11 ... Strategic Customer and Vendor Contract Management ... 741

11.1 ... Strategic Freight Selling ... 743
11.2 ... Strategic Freight Procurement ... 752

12 ... Charge Settlement ... 771

12.1 ... Charge Settlement and Billing ... 773
12.2 ... Cost Distribution and Internal Settlement ... 816
12.3 ... Settlement with SAP hybris Billing ... 835

13 ... Integration with Other Components ... 841

13.1 ... Analytics ... 843
13.2 ... Integration with SAP EWM ... 861
13.3 ... Integration with SAP EWM for Transit Warehouse ... 885
13.4 ... Collaborative Transportation Management ... 902
13.5 ... Integration with SAP Customer Relationship Management ... 913

14 ... Implementation Best Practices ... 919

14.1 ... Large Transportation Management System Installations ... 920
14.2 ... Use Preconfigured Sample Scenarios ... 922
14.3 ... Use Rapid Deployment Solutions ... 923
14.4 ... Customer Onboarding in SAP TM Installations ... 925
14.5 ... Use Central Control Elements in SAP TM Setup ... 927
14.6 ... Optimize the Sequence of SAP TM Configuration ... 933
14.7 ... Consider SAP TM’s Strengths and Limitations ... 935
14.8 ... Enhance SAP TM via Custom Development ... 937

15 ... Summary and Outlook ... 939

... Appendices ... 945

A ... Additional References ... 947
B ... Abbreviations ... 949
C ... The Authors ... 955

... Index ... 959