© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Transportation Management

Simplify and Optimize Transportation Management

Streamline Operations and Reduce Cost

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 Table of Contents
3 Deploying a Holistic Solution for Connected Transportation

8 Streamlining Transportation Management Operations

25 Calculating the Benefits of SAP Transportation Management

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

Deploying a Holistic Solution

for Connected Transportation
To address the increasing complexity and volatility of global logistics, shippers and
logistics service providers must optimize logistics processes and improve service
while increasing visibility and control. The SAP® Transportation Management
application streamlines end-to-end processes for goods movement across all
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

transportation modes, helping you improve operational efficiency and reduce costs.

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

REDUCING TRANSPORTATION COMPLEXITY partners, who use a wide variety of desktop and mobile
Meeting customer expectations for rapid, accurate communication devices. With the growth of real-time
delivery of goods is a growing challenge for logistics logistics and transformative technologies, logistics
professionals. Thanks to the surge in e-commerce and service providers that value efficiency also must be
omnichannel models, products move across multiple able to collect, analyze, and utilize Big Data from billions
tiers of a global supply chain. Sharing information effec- of sensors, telematics, and other advanced devices
tively across the logistics network requires the ability connected to the Internet of Things (IoT).
to communicate with large numbers of supply chain

Logistics service providers must be able to collect,

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

analyze, and utilize Big Data from billions of

sensors, telematics, and other advanced devices
connected to the Internet of Things.

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

While handling more data and greater complexity, your end-to-end transportation management process
transportation managers are expected to reduce (see Figure 1) and helps you meet your supply chain
spending as a percentage of cost and maximize the return execution mission.
on each asset. To enhance service levels, companies
need better logistics visibility so they can offer reliable, SAP Transportation Management helps you improve
on-time delivery. They also must improve corporate customer service and enhance delivery capabilities while
sustainability and regulatory compliance. Meeting these reducing costs. You can accurately forecast transporta-
needs requires a holistic business solution that offers tion demand, negotiate freight contracts, receive and
efficient connectivity to business partners and external consolidate orders, monitor and track your shipments,
systems, enabling streamlined communications across and maximize the return on your transportation spend.
the value chain. You also need a solution that optimizes Centralized, standardized transportation operations
help you streamline the freight-costing process.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Companies need a holistic business solution that offers smooth

connectivity to business partners and external systems, enabling
streamlined communications across the value chain.

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

Strategic Freight Analytics

Order Transportation Transportation
freight costing and and
management planning execution
management settlement reporting

Figure 1. End-to-End Transportation Management Process

Real-time analytics offer instant insight into key strategic The solution offers role-based functionality, modular
and operational performance parameters to help you implementation, and deep, native integration with SAP
focus on improvement areas with reduced data complexity. Business Suite applications. It supports large and mid-
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

With real-time operational insights from a variety of data market companies by simplifying key processes and
sources, you can tightly monitor and limit the number streamlining complex, high-volume operations.
of expedited shipments.

You can accurately forecast transportation demand, negotiate

freight contracts, receive and consolidate orders, monitor and track
shipments, and maximize the return on your transportation spend.

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

Both shippers and freight-forwarding companies can use WHY SAP

the solution to handle domestic and international transpor- SAP has 45 years of experience
tation. It can help organizations optimize and consolidate creating and implementing enterprise software. Today, we have

freight spend across both inbound and outbound freight 355,000 clients in over 180 countries
movements. and employ more than 87,000 people across the globe.

SAP Transportation Management is part of our compre- SAP is a rapidly growing provider of transportation management

hensive supply chain execution platform that includes solutions. The SAP® Transportation Management application

the SAP Extended Warehouse Management application 400 customers in

is used by more than

and the track and trace package from SAP, along with the 45 countries and in 23 industries.
SAP Connected Logistics package. This platform empowers
you to operate, monitor, and improve end-to-end logistics SAP Transportation Management delivers business benefits that include
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

processes across the value chain. Although some vendors deep visibility into logistics processes and faster, more efficient transpor-

integrate disparate solutions, SAP developed this platform tation, enabled by smarter decision making and real-time insights. Your IT

to help you bring together all aspects of material flow group enjoys robust functionality for flexible, scalable system and process

in an end-to-end execution. With this platform, you can configuration. The application integrates with a unique enterprise-wide

orchestrate warehousing and logistics, accelerate order ecosystem of SAP software. The SAP Digital Business Services organization

fulfillment cycles, and reduce the total cost of your and a variety of excellent partner companies can lead you smoothly

logistics operations. through implementation – and onward through continuing innovation

and reinvention.

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

Streamlining Transportation
Management Operations
Running your logistics operations at peak performance requires the
ability to efficiently plan, orchestrate, execute, and track shipments..
To improve productivity and boost asset utilization, you need to automate
processes, support electronic collaboration, and reduce redundancies.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Transportation Management offers the features and functionality

that can help you meet these objectives.

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Connected Transportation Management Operations Transportation Management

STRATEGIC FREIGHT MANAGEMENT The software supports the entire freight capacity man-
AND CAPACITY PROCUREMENT agement process for all transportation modes using one
Whether you are buying or selling freight services, you integrated solution (see Figure 2). You can enable flexible
need a solution that optimizes capacity for all transpor- and efficient freight capacity procurement through freight
tation modes for both common and remote shipping contract negotiations and automated electronic capacity
lanes. That’s why SAP Transportation Management reservations that include shipping instructions. Simple
offers strategic freight management features that help modeling of complex scenarios and powerful what-if
you forecast freight needs, collaboratively manage the simulations help you choose the strategies most likely
process of buying and selling freight capacity, and to enhance profitability, cost efficiency, and customer
efficiently create freight agreements. satisfaction. Real-time reporting helps you measure
compliance against carrier and customer agreements
and identify opportunities for cost savings.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Transportation Management supports the entire freight

capacity management process for all transportation modes
using one integrated solution.

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Strategic freight
Order management
management
Truck
Air freight
distribution
and pickup

SAP®
Analytics and Transportation Transportation
reports planning
Management
Ocean Parcel
(FCL or LCL*) express
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Charge freight Transportation

settlement execution
Long-haul trucking Railway
(FTL or LTL**)

*Full container load or less than container load

Figure 2. Support for Multimodal Transportation **Full truckload or less than truckload

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

The solution offers the following functionality:

Strategic freight procurement, including Strategic freight selling, enabling a closed- Predictive, insight-driven prebid evaluation
advanced analysis, forecasting, and simula- loop, streamlined quote-to-contract process and bid preparation using industry templates
tion features that help you develop optimal and automatic determination of the best and a one-click contract creation feature to
freight agreements with carriers rates for various services in response to optimize the evaluation and response process
customer requests – even through multiple quotation rounds
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Ocean and air schedule and capacity Collaboration feature that helps you Integration with industry logistics networks
management, with advanced business-to- efficiently communicate and exchange for interenterprise electronic data and
business (B2B) connectivity features that information with carriers and other logistics document exchange, which helps enhance
let you send booking requests to the carrier, service providers and receive alerts when transportation management connectivity,
receive confirmations, cancel bookings, preestablished transit time or cost collaboration, and regulatory compliance
and add execution messages to the carrier thresholds are exceeded
through electronic air waybill or shipping
instructions

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Connected Transportation Management Operations Transportation Management

ORDER MANAGEMENT The software offers the following order management

Accurately receiving orders and efficiently processing features:
them are critical capabilities in the logistics business. •• Creation of dynamically generated, optimized routing
SAP Transportation Management helps you receive proposals for orders based on business rules to avoid
order-based or delivery-based transportation require- extra freight cost and deliver better customer service
ments manually or electronically from multiple order •• Holistic integration and management of all transpor-
management systems. You can confirm, plan, and execute tation demand with order-to-cash and procure-to-pay
orders; coordinate delivery with the warehouse; and processes, with change management in real time
communicate order status with business partners. based on business rules to help ensure a closed-loop
communication cycle
•• Customer delivery commitments enabled through
synchronized sales order scheduling
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

The software helps you receive order-based or

delivery-based transportation requirements manually or
electronically from multiple order management systems.

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•• Integration with order and delivery data in the SAP plan down to the level of individual shipments and con-
ERP application, including full cross-system order tainers – improving resource utilization and reducing
access and visibility into the status of each order transportation costs (see Figure 3). You can consolidate
domestic or international shipments, as well as shipments
TRANSPORTATION PLANNING that use single or multimodal transportation. The software
Achieving on-time, low-cost freight delivery requires helps you achieve the right level of centralized or decen-
sophisticated transportation planning. SAP Transportation tralized planning so you can identify synergies and
Management helps you optimize your transportation meet your delivery goals.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Manual, map-based, or automated planning and dynamic replanning

functions consider constraints, utilize real-time location information,
and offer insights to optimize freight planning and tendering. and
tendering.

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Connected Transportation Management Operations Transportation Management
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Figure 3. Load Planning

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Connected Transportation Management Operations Transportation Management

You can use the following planning features:

Manual, map-based, or auto- Improved pallet building, using Visual load planning, helping you Driver management, helping you
mated planning and dynamic flexible rules-based optimization visualize vehicle space and optimized track and interactively manage
replanning functions that consider of products and mixed packages loading based on vehicle attributes driver resources while assigning
constraints, utilize real-time loca- while considering constraints such (such as dimensions and weights), drivers to specific freight loads using
tion information, and offer insights as package attributes, product axle weight constraints, stacking default assignments in a planning
from huge volumes of data to stacking rules, height require- rules, and delivery stop sequences cockpit or a Gantt chart view
optimize freight planning and ments, and customer-specific
tendering requirements
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Determination of the most Freight tendering, which sup- Consideration for dangerous
efficient combination of modes, ports multivariant tendering goods attributes in freight
routes, resources, and optimal and enables communication planning and management
carrier selection by factoring in through B2B, Web-based user
costs and penalties interfaces, collaboration portals,
e-mail, and SMS channels

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Connected Transportation Management Operations Transportation Management

TRANSPORTATION EXECUTION
A critical need for efficient and effective transportation is
the ability to execute a plan and adapt it to real-life events
in a dynamic environment. Well-coordinated planning and
execution can help you cost-effectively deliver goods
when and where customers expect them, while handling
delays and disruptions.

Well-coordinated planning and

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

execution can help you cost-

effectively deliver goods
when and where customers
expect them, while handling
delays and disruptions.

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

With SAP Transportation Management, you can take advantage of:

Direct real-time integration with SAP Freight execution and capacity monitoring, Flexible communication among business
Extended Warehouse Management, which management, and tracking, with real-time partners using B2B messaging, collaboration
automatically notes changes in freight docu- event management features such as map- portals, mobile apps, Web interfaces, file upload
ments until the freight has been received or based geographical tracking, alerts and and download, print documents, e-mail, facsimile,
loaded, and shares truck arrival and departure notifications, and a reporting dashboard and SMS messages
information between the two applications
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Comprehensive templates for road, sea, Integration with the SAP Global Trade
and air to print documents as well as Services application, which includes trade
settle freight regulation compliance features for handling
export declaration, import declaration, and
transit and security filing

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Connected Transportation Management Operations Transportation Management

FREIGHT SETTLEMENT
Accurately managing transportation charges and
cost settlement with carriers and customers helps you
optimize freight costs. SAP Transportation Management
offers comprehensive freight cost management func-
tionality for costing, auditing, settlement, and reporting.

SAP Transportation Management

offers comprehensive freight
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

cost management functionality

for costing, auditing, settlement,
and reporting.

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Connected Transportation Management Operations Transportation Management

Key features include:

Advanced freight charge Accurate freight cost allocation Freight settlement features for Invoice dispute management
calculation and mode-specific across orders and materials for accruals posting, carrier self-invoic- using the collaboration portal
charge and tariff management material valuation and order ing, invoice verification and payment, (see Figure 4), supported by
for road, rail, ocean, and air profitability analysis and credit memo processing tolerance settings and workflows
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Integration with SAP ERP for Freight cost reporting using Group company logistics, enabling
freight settlement and invoicing, an interactive freight cost centralized logistics operations
with general ledger posting, dashboard with consolidated, standardized
material valuation, and order logistics costing, even across
profitability analysis decentralized companies

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Connected Transportation Management Operations Transportation Management
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Figure 4. Collaboration Portal

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Connected Transportation Management Operations Transportation Management

ANALYTICS AND REPORTING data visualization, SAP Analysis software, SAP Virtual
Managing transportation operations effectively requires Studio tools, and SAP HANA® Live offerings.
instant access to data as we enter the era of data-driven
logistics. SAP Transportation Management includes The analytics and reporting tools in SAP Transportation
several comprehensive, flexible decision support tools that Management include:
help you stay informed and make faster, smarter business •• Graphical dashboards that use the SAP HANA platform
decisions. You can display key performance indicators to support real-time, data-driven decision-making
and slice and dice data with user-friendly tools such as •• Flexible reports (including ad hoc reports and queries)
SAP Smart Business cockpits, SAP Lumira® software for across all areas of transportation, which can be easily
consumed and help reduce data complexity
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Display key performance indicators and slice and dice data

with user-friendly tools such as SAP Smart Business
cockpits and SAP Lumira software for data visualization.

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Connected Transportation Management Operations Transportation Management

INNOVATIVE TECHNOLOGIES SAP Transportation Management uses the power of

SAP software incorporates the latest technologies to SAP Leonardo and its IoT capabilities to enable rapid
help you streamline and integrate transportation man- innovation and digital transformation, helping customers
agement processes. Our digital supply chain solutions reimagine their businesses. By using SAP Leonardo
use SAP Leonardo, a new digital innovation system that innovations with our transportation management soft-
integrates breakthrough technologies and runs them in ware, we can help you support real-time, connected
the cloud. SAP Leonardo includes a core set of capabilities transportation processes and handle large volumes of
focused on IoT, machine learning, analytics, Big Data, transportation and logistics data for state-of-the-art
and blockchain technology. analysis and planning.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Our digital supply chain solutions use SAP Leonardo,

a new digital innovation system that integrates
breakthrough technologies and runs them in the cloud.

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Connected Transportation Management Operations Transportation Management

SAP TRANSPORTATION MANAGEMENT You have two choices for connecting SAP Transportation
IN SAP S/4HANA® Management to the power of SAP S/4HANA. You can
Today, SAP Transportation Management is available integrate a decentralized instance of SAP Transportation
as an embedded solution in SAP S/4HANA®, our Management with the SAP S/4HANA Enterprise
next-generation enterprise business suite. Now, all Management solution (Figure 5), or you can rely on the
transportation and logistics processes can come transportation management functionality that’s embed-
together in one centrally deployed system. This ded directly in the instance of SAP S/4HANA Enterprise
reduces data redundancy, effort, and cost – while Management (Figure 6).
empowering your business to run more simply.
We also offer information resources and services that
FLEXIBLE DEPLOYMENT can help you ensure a successful implementation and
Choose the deployment model that best meets the maximize your ROI over the lifetime of the solution.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

needs of your business. Install SAP Transportation

Management as a decentralized on-premise application,
deploy it as an embedded solution in SAP S/4HANA, or
access it as a cloud service.

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 Deploying a Holistic Solution for Streamlining Transportation Calculating the Benefits of SAP
Connected Transportation Management Operations Transportation Management

SAP S/4HANA® Enterprise

Management SAP S/4HANA® Enterprise
Management

Embedded transportation
SAP® Transportation Management
management functionality

SAP NetWeaver® technology platform On premise

Figure 5: Decentralized Transportation Management Figure 6: Embedded Transportation Management

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Choose the deployment model that best meets the needs of

your business. Install SAP Transportation Management as a
decentralized on-premise application, deploy it as an embedded
solution in SAP S/4HANA, or access it as a cloud service.
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Calculating the Benefits of

SAP Transportation Management
SAP Transportation Management helps you create efficient and
responsive transportation operations and standardized processes
that allow you to increase asset utilization, reduce transportation
cost, and improve customer satisfaction. The software helps you
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

accurately forecast demand and shipment volumes, consolidate

and plan orders, and maximize return on spend by fine-tuning
your transportation planning, execution, freight cost settlement,
and data analysis processes.

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Automated processes, electronic collaboration, and overhead. In addition, more accurate costing and
reduced redundancies increase business efficiency settlement can improve cash flow and reduce your
and productivity. Enhanced visibility throughout the freight-costing workload. Detailed reports, real-time
value chain helps increase service responsiveness. analytics, and drill-down functionality provide instant
Many companies have realized significant freight spend insights that support faster freight cost analysis and
savings through consolidation, negotiation, higher asset improved business decisions.
utilization, and reduction in expedited shipments and

Companies can realize significant freight spend savings

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

through consolidation, optimal carrier selection, negotiation,

higher asset utilization, and reduction in expedited shipments
and overhead.

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According to SAP performance benchmarking, companies Together, these improvements can help you improve
using our transportation management software typically service effectiveness and on-time delivery rates,
realize the following benefits: enhancing customer satisfaction and loyalty.

7.7%
Lower freight spend
16%
Decrease in outbound
LEARN MORE
To find out how SAP Transportation Management can
help your company improve its logistics operations,
expediting costs visit our Web site, use the SAP Solution Explorer tool
to review our offerings, or watch this video.

77%
Shorter average
13%
Fewer invoice errors
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trailer turn

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