Why Transport Management?

Updated: Jan 29



Answer of the Question Why Transport Management?


To make a different business entity in today competitive environment, a business should have reliable and efficient transportation logistics. Now days companies begin start thinking about to make improvement in their logistics process and logistics costs in grown global economy. SAP provides solutions for every sector in the chain of SAP solutions Transportation Management Solutions one of the best options to solve logistics management issue of an organization.

Every business has the following series of questions

  • How can manage logistics network in a good manner?

  • How can minimize the risk factors throughout the Supply Chain Management Cycle?

  • How can reduce operational cost and better understand transportation costs at the customer level?

  • How can ensure optimal uses of company assets?

  • How does business ensure high customer service levels and response to unexpected supply chain events?

  • How business does complaint with all the varying rules, regulations and compliance polices.

Possible Solutions

  • Reduced costs and improved operational performance

  • Improve carrier collaboration and optimal utilization of resources

  • Efficient end-to-end order and process management

  • Efficient logistics and fulfillment processes

  • Need to improved execution visibility

  • Improved responsiveness

Introduction to SAP S/4HANA Transport Management

  • SAP S/4HANA Transport management is a window of new possibilities for setup transportation strategies strategy of business.

  • SAP TM harmonizes all transportation applications in one web based solution that integrated in a business client shell.

  • SAP TM is a unique, integrated solution that lets shipper manage their transportation processes within robust order management environment.

  • SAP TM Solution available on-premise and cloud deployment.

  • Transportation and demand planning.

  • Interactive freight tendering.

  • Collaboration portal.

  • Transparent end-to-end process

  • Traceability during execution

  • Visibility on the spend

  • Standardized process automation

  • Wide range functionality

  • New technology (Mobile, S/4HANA, Business Client/FIORI

Evolution of SAP Transport Management


SAP started to develop business software for transportation processes from 1987 i.e. from R/2 system. SAP came up with centralized solution as Event Management to track and control panned and actual business events. 2007 onwards- SAP TM 6.0 and 7.0 evolved from SAP TV/PS solution

Integration of SAP Transport Management


You can use this business function to integrate order processing in SAP ERP with transportation planning in SAP Transportation Management (SAP TM). It enables you to optimize order processing and transportation planning by exchanging information about orders and deliveries between SAP ERP and SAP TM

Benefits of SAP Transport Management

  • Reduced costs and improved operational performance.

  • Efficient logistics and fulfillment processes.

  • Improved carrier collaboration and resource utilization.

  • Efficient, end-to-end order and process management.

  • Improved execution visibility and responsiveness.

SAP TM is delivered with out-of-the-box integration, with order-to-cash and procure-to-pay scenarios to support timely execution updates. Integrated freight settlement with SAP ERP billing and invoicing is available for customers who want to increase the speed at which business process cycles are executed. This includes forwarding, freight (land), and booking (sea and air) order and intermodal scenarios.

Deployment of SAP Transport Management


Currently SAP S/4HANA is available with two deployment options, cloud, and on premise. SAP offers the cloud version while the on premise version is available for either the customer to host in its data center or on a partner cloud.

Rajesh Sharma

SAP MM/EWM Functional Consultant

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