Tighten up and integrate transport management processes with state-of-the-art technologies
Mastering complex transport scenarios
SAP TM helps shippers with detailed transportation planning, simplifying and unifying all transport management processes, and thus maximizing the ROI of all transport expenses. Exact requirement and quantity predictions and intelligent order consolidation help companies to optimize their freight, fleet, and logistics management. Thanks to the integration of business and logistics processes, companies always have an overview of their national and international transports in a standardized, comprehensive solution.
Ongoing globalization and internationalization of markets have been increasing the complexity and vulnerability of existing network structures for many years. Today, automobile manufacturers, suppliers, mechanical engineering companies, and retailers have global production and distribution networks and each day their challenge is to control, plan and execute processes so that costs are optimized. The main characteristics of such network structures are multi-modal transports (air, sea, rail, road), multi-level and pooled transports, as well as complex inbound and outbound processes for production plants, distribution centers, and warehouse locations.
Using SAP TM, even complex transport networks can be controlled, optimized, and monitored comprehensively and efficiently. And often the mastery of grown supply chain structures goes hand-in-hand with a multitude of other challenges.
Challenges for shippers
- Increasing requirements for on-time delivery, customer satisfaction, and service
- Unnecessary added costs (delay charges, penalties, special trips) due to lacking transparency and long reaction times in case of deviations
- Established current processes are inflexible and difficult to scale
- Poor process and cost transparency
- Heterogeneous system landscape consisting of different stand-alone software solutions
- Optimization pressure due to increasing scarcity of cargo space and a lack of drivers
- Complicated route and cargo space planning with increasing transportation requirements
- Lacking integration of shippers, freight carriers, and logistics service providers
- Lacking harmonization of transportation and logistics processes
- Adherence to legal requirements and trade regulations (customs, embargo lists, etc.)
- Distributed, poorly-coordinated transport planning by modes of transport (air, sea, rail, road)
Intelligent transportation solutions
with SAP TM
As an integrated comprehensive solution, SAP TM assists you with a multitude of strategic, tactical, and operative transport management activities.
SAP TM for Group logistics scenario
SAP TM also offers additional optimization potential in the commercial sector for large companies and corporate groups. Instead of individual shipping and transport departments at group subsidiaries, a central transport and dispatch department can consolidate transport requirements and purchase and control logistics services for all internal companies. This reduces personnel and licensing costs and produces additional cost savings. Additional benefits of a group logistics scenario are:
- Reduced freight costs thanks to centralized freight purchasing (higher volume) with more cost-effective transport rates
- Standardized logistics processes (transport planning, execution, and dispatch tracing) across all companies
- Complete transparency with respect to transport requirements and transport execution due to central processing
With SAP TM scenarios can be realized where a transport and dispatch department exists on group level, as well as constellations where one or several subsidiaries handle transportation services group-wide.
Regardless of the organizational structure selected, the SAP standard process ensures that external providers’ transportation services are always assigned correctly to the service recipient at the company and accounted for correctly internally.