SAP S/4HANA Supply Chain for Transportation

Management

We Transform the Future into the Present

Public 1
Agenda

1 Overview of the SAP Transportation Management (TM)

2 Overview of the SAP Logistics Business Network (LBN)

NTT DATA Business Solutions TR 18.01.2024 1

1 Overview of the SAP
Transportation Management (TM)
SAP S/4HANA Supply Chain for Transportation Management

Strategic Freight Order

Management Management

Air Freight Truck distribution and pickup

Analytics and Transportation

Reports Planning
SAP TM
Ocean (FCL/LCL) Parcel Express

Change Freight Transportation

Settlement Execution

Trucking (FTL/LTL) Railway

Multimodal Transportation
SAP S/4HANA Supply Chain for TM
Overview

Strategic Freight Order Transportation Transportation Freight Costing Analytics and

Management Management Planning Execution and Settlement Reporting
SAP S/4HANA Supply Chain for TM
Strategic Freight Management

Strategic Freight
Management

Business Benefits
 Strategic Freight  Optimal Procurement of freight capacity for multiple
Procurement modes
 Contract Negotiation  Save on transportation budget using sophisticated Freight
 Capacity Management procurement solution
 Measure Compliance on Agreements
 Strategic Freight Procurement
End-to-end process

Pre-bid evaluation Bid preparation Carrier/LSP collaboration Post-bid evaluation Contract award

 Transportation data  Carrier selection  RFQ response preparation  Response evaluation  Agreement/Contract
 Insights  RFQ Preparation  Negotiation  Post-bid analysis award
 Target rates  Spend calculation  Agreement
consumption
 Optimization

 One system for all related process without modification

 Insight to action-based process flow – historical data, bid preparation, spend analysis, award
 Powerful simulations / what-if (consideration of historical performance, bonus malus, transit time)
 Efficient information exchange with carriers / LSP
SAP S/4HANA Supply Chain for TM
Order Management

Order
Management

 Integrated ERP
Transportation Demand Business Benefits
 Personal Worklists  Improve the efficiency of order and process management
 Sales & Stock Transfer  Generate dynamically optimized routing proposals based
Order Scheduling on business rules
 Schedule management
 Minimize freight costs
 Order Life-Cycle
Management & Visibility
 Enhance customer service
Order Management

Holistic integration and management of all

transportation demand

Support order-to-cash / procure-to-pay

processes

Transportation Demand
 Sales orders
 Purchase orders
 Stock transport orders
 Returns
 Inbound / Outbound deliveries
SAP S/4HANA Supply Chain for TM
Transportation Planning

Transportation
Planning
Business Benefits
 Manual and automated
 Improve resource utilization and carrier selection to
planning and dispatching reduce transportation costs
 Routing, resource, and  Handle huge volumes of data thanks to automated
carrier selection planning processes
 Order tendering  On the fly drag and drop planning
 Dangerous goods  Select the most cost-effective modality easily
management
 Planning of parcels
 Combine decentralized local business views to
identify synergies
 Achieve on-time delivery
Freight Planning & Tendering
Optimal transportation planning and resource utilization

Holistic Effective Advanced Compliant

 Consider all freight demand &  Plan manually, map-based &  Automated load planning  Dangerous goods
resources automated  Pallet / package building  Trade regulation
 Cover all geographies & modes  VSR optimization  Map-based resource tracking
 Select carrier and tendering  Gantt chart planning
Highlights
Automated load planning

 Optimally utilize loading space on

transportation resources

 Find appropriate location for each package /

pallet on the truck

 Consider various constraints such as

dimensions, vehicle attributes, stacking rules,
loading sequence, flexible split deck

 Combine load planning with load

consolidation in a single step

 Visual view of load planning

Package building and load planning optimization

Minimize number of pallets

considering constraints such as
package attributes, product stacking
rules, customer specific Product quantities Package / pallet building Pallets / packages
Package Building requirements, height limit, etc.

 Optimally utilize loading space on

transportation resources
 Find appropriate location for each package /
pallet on the truck
 Consider various constraints such as
dimensions, vehicle attributes, stacking
Load Planning rules, loading sequence, flexible split deck
Best-in-class freight planning capabilities
Comprehensive visibility & powerful planning tools

Transportation
demand
 Manage freight units Supporting data
 Create building strategies  Freight execution status
 Carrier ranking
 Freight charges etc.

Planning constraints
 Availability and capacity
 Loading / unloading Freight documents
durations  Freight orders & units
 Incompatibilities  Trailer documents & rail
 Driver constraints  Ocean & air bookings

Plan resources & schedules Map-based visualization & planning

 Vehicles, trailers, containers, compartments, railcars  Gantt chart
 Land, ocean, air  Map views
 Schedule transportation  3rd party GIS integration
SAP S/4HANA Supply Chain for TM
Transportation Execution

Transportation
Execution

 Extended warehouse
integration for execution

Business Benefits  Logistics execution

 Improve cargo handling  Execution monitoring and

event tracking
 Achieve faster, more dynamic, and  Capacity monitoring
responsive logistics execution
 Transportation print
 Reduce shipping costs with a streamlined documents
process and maximized efficiency  Trade regulation
compliance (using SAP
GTS)
Freight Execution & Monitoring
Efficient freight execution management & tracking

Full process, shipment and status visibility

 Integrated customs / warehouse process

 Real-time track and trace

 End-to-End shipment tracking

 Efficient cargo management

 Comprehensive freight document management

Document and output management details

Comprehensive workflow, document and

output functions

Standard transportation document templates

 For road, sea, and air transportation
 Comprehensive set of preconfigured, standard documents

Flexible output management

 Automatic / manual printing, email, fax, B2B communication
International, cross-system shipment & event tracking

Comprehensive shipment tracking

 End-to-end visibility
 Full milestone tracking: from loading begin to
proof-of-delivery
 Freight units, orders, bookings & containers
 Shipper, carrier & consignee views
 Map-based event location visibility
 Cross-system & organization
 Flexible event notification
SAP S/4HANA Supply Chain for TM
Freight Costing and Settlement

Freight Costing
and Settlement

Business Benefits  Freight agreement

 Improve accuracy and transparency with automatic management
transportation cost calculation  Charge and tariff management
 Integrate transportation management and billing  Integration with SAP S/4HANA
 Increase invoice accuracy  Transportation charge
calculation
 Add freight cost to product cost
Freight Charges & Settlement

Charge Management Freight Settlement Freight Cost Accounting Freight Cost Reporting

 Comprehensive agreement  Post accruals  Cost distribution:  Embedded real-time reporting

management  Invoice verification  General ledger posting  Flexible business warehouse
 Flexible charge and rate and payment  Material valuation cost reporting
management  Sales order profitability
 Advanced freight charge  Add freight cost to product cost
calculation

Accurate, Integrated Freight Costing, Settlement and Reporting

Freight Charges & Settlement

Comprehensive Rates Advanced Air / Ocean Rail

 Various origin / destination point  Charging for parcels  Commodity based charges  Rule 11 on freight order
classifications  Collective order rate lookup  Prepaid and collect on ocean  Consider day of week pricing
 Rates based on: Equipment,  Condition and event based booking
weight, volume, distance, charging  Index table based fuel surcharge
discounts, tolls, taxes, etc. calculation
 Agreement consumption
 Dispute management
 Automatic change mgmt.
process
SAP S/4HANA Supply Chain for TM
Analytics and Reporting

Analytics and
Reporting

 Dashboards for the

SAP HANA platform
Business Benefits  Overview pages with
 Support real-time, data-driven decision making KPIs to manage your
operational business
 Gain in-depth business insights
 Flexible reporting
 Reduce data complexity
 Real-time data based
reporting
Embedded analytics in SAP S/4HANA Transportation Management
Drill down to KPIs for detailed analysis
SAP S/4HANA Supply Chain for Transportation Management

Advanced Transportation Management

 Shipping and freight-forwarding industries
 Holistic End-to-End Transportation Management
 Early planning based on orders
SAP S/4HANA SUPPLY CHAIN
 Plan combined inbound and outbound deliveries/orders
 Optimized transportation planning
 Peer-to-peer / broadcast tendering
Suite  Advanced charge calculation and freight settlement
 Dispute management
 Support real-time, data driven decision making with CDS-based analytics
Products S/4HANA Supply Chain for
Transportation Management  Strategic freight management

Transportation Management
Digital Core
Transportation Management
 Shipping industries only
 Delivery-based planning
Enterprise Management  Create freight orders with grouped inbound or outbound deliveries
 Manual and rule-based planning
 Monitor freight orders without Event Management
 Basic charge calculation and freight settlement
Digital Logistics in S/4HANA & Logistics Business Network

SAP S/4HANA SAP S/4HANA SAP S/4HANA

Extended SAP
Advanced Warehouse Management Transportation Logistics
Available-to- & Yard Logistics Management Business Network
Promise
Transportation Management
Outcomes

Reduce costs by increasing asset utilization, freight

consolidation, and routing optimization

Streamline the end-to-end process through holistic,

multi-mode transportation management

Plan and manage allocations in shortage situations

to protect key customers and avoid penalties

Support real-time, data-driven decision making for

quicker business decisions and faster insights
2
Overview of the SAP
Logistics Business Network
(LBN)
What does SAP Business Network offer for core Logistics?

YOU as a
shipper

SAP Business
Network

Logistics Other Customers | Suppliers

Carriers | Freight | 3rd party warehouse
service stakeholders
forwarders providers | …
providers

FREIGHT GLOBAL TRACK

COLLABORATION AND TRACE

Streamline logistics collaboration Provide insight-to-action for goods in-transit

enriched by INTELLIGENT INSIGHTS
Streamline Logistics Collaboration

Freight Collaboration
Intelligent
insights Order/booking
global | regional | local collaboration

Dock appointment
scheduling

 Find best freight pricing through real-time carrier network access

 Digitize the end-to-end order process and collaboratively resolve disputes
 Efficiently manage appointments and gate activities to avoid wait times and extra fees
 Asses due lists and key performance indicators to maximize improvement opportunities
Freight Collaboration Benefits

Streamline multi-modal logistics operations through efficient collaboration with a global ↓1-5%
network of logistics service providers to overcome siloed operations transportation spend
by enabling real time
visibility of market prices vs.
carrier contracted prices

↓5-50%
order fulfilment lead
time
Reduce logistics Optimize Improve logistics by automating the collaboration
process between shippers and
costs utilization performance carriers, thus reducing the lead
time for transportation
Save time and money Adjust plans based on Connect core transportation, processing activities
through real-time accurate expected time of yard and warehouse
transparency of competitive arrival. Reduce truck wait processes for end-to-end
market prices and reduce times, congestion and idle integration driving ↓1-5%
manual labor cost by penalty fines by efficient improvement in delivery
automating and digitizing the dock appointment performance for inbound as warehouse
management cost
complete order fulfillment management and gate well as outbound goods
cycle. processing. movements. by enabling shippers and carriers to
efficiently collaborate on dock
appointments and better manage
related check-in / check-out activities
Provide insight-to-action for goods in-transit

Global Track and Trace

Monitor order
fulfillment
Intelligent
insights
global | regional | local
Track goods-in
transit

Analyze impact of
exceptions

 Increase situational awareness, seamlessly connecting the physical with the information flow
 Improve responsiveness and sustainability for immediate mitigation of exceptions
 Increase customer service levels by avoiding rush transportation
 Assess carrier performance and detect operational bottlenecks
Global Track and Trace Benefits

Leverage a global, multi-modal network of logistics service providers to stay in control – ↓1-20%
despite today’s supply chain constraints and unpredictability
customer churn
by enabling more reliable
delivery dates and
transparent and automated
communication of potential
delays

Mitigate supply Improve Increase customer ↓2-15%

chain risk operational satisfaction
days in inventory
Offer a holistic and consistent efficiency Proactively inform your
by lowering the required levels of
end user experience across customer in case of
Adjust follow-up plans based inventory thanks to improved
modes and geographies. deviations from the plan. visibility and optimized
on predictive expected time
Detect potential supply chain Improve on-time, in-full ratio. management of goods in transit
of arrival for incoming goods.
disruptions early, and assess Increase market share.
their business impact to order
fulfillment. ↓1-25%
inventory carrying costs
by lower level of errors and
handling beyond cost of capital
for inventory

Source: SAP Value Management

 Connect the stakeholders across your entire logistics ecosystem with SAP Business Network for
Logistics

• Increase Resilience
through actionable insights across company boundaries and silos of
operation

• Improve Efficiency & Decrease Logistics Costs

through connectivity, streamlined logistics collaboration, and real-time
market insights

• Ensure Sustainability and Customer Satisfaction

Balance cost control with improved customer experience