SAP Transportation Management

18-6-2015

Agenda For Today

1. Purpose of LE/Transportation
2. Process in Transportation
3. Configuration For Transportation
4. Run E2E cycle with single shipment with single mode of transport

Agenda For next sessions

Run E2E cycle with multi shipment with single mode of transport
Run E2E cycle with Single shipment with multi mode of transport
Run E2E cycle with Multi shipment with multi mode of transport
Shipment cost pricing
Multi dimension pricing
Transfer the shipment cost to invoice
Split profile
Planning profile

1.

Purpose of Transportation Management

SAP TM Ensure that shipments are dispatched without delay and arrive on schedule.
TM helps to keep these transportation costs to a minimum so that the price of a product
remains competitive.
Transportation planning and shipment completion
Shipment costs calculation
Shipment costs settlement
Shipment costs calculation for individual customers
Billing of customer freight
Service agent selection
Management of means of transport and utilities
Follow-up and supervision of shipments
Management of shipment costs

Features of Transportation

These transportation functions can handle planning and processing for both inbound and
outbound shipments. You can control and monitor the entire transportation process from
the planning stage to goods issue at your shipping point (for outbound shipments) or
vendor location (for inbound shipments), through to goods receipt at the customer location
or your plant.
Other available functions include: shipment costs calculation and settlement with the
service agent, transfer to accounting, credit memo creation and invoice verification.
Incoming shipments in Materials Management based on purchase orders and shipping
notifications
Outbound shipments in Sales and Distribution based on sales orders and deliveries

Say yes or No

3. Process in Transportation

3.1) Single shipment with single mode of transport

o

One customer with 1 mode of transport (Direct leg)

3.2)Multi shipment with single mode of transport

o Multiple deliverys of different customers into single shipment with One mode of transport
(Direct leg)

3.3) Single shipment with multi mode of transport

Delivering the goods to single customer with multi mode of transport, In this process we
have 3 leg indicators as follows.
a) Preliminary leg (truck)
b) Main leg (Vessel)
c) Subsequent leg (Rail)

3.4) Multi shipment with multi mode of transport

o)Grouping deliverys which is belongs to different customers in to single shipment &
delivering the goods to customers with multi mode of transport

3. Configuration For Transportation

Define Routes
Define transportation planning point
Define modes of transport
Define shipping types
Define transportation connection points
Define Routes & stages

Route determination
Define transportation zone
Maintain country and transportation zone for shipping point
Define transportation group
Define weight groups
Maintain transportation relevance
Maintain Route determination

Configuration For Transportation Continued

Define shipment types

Determine Leg:
1-Legs determined according to departure point & itinerary
o

In above case which delivery is unloaded last that will be loaded first.

2 Preliminary leg loading point and subsequent leg for ship to party

Determine Leg:

3- Preliminary leg for each delivery note, subsequent leg for each delivery note

Determine Leg:
4- Like leg determination type 1, but the shipping type for preliminary leg and
subsequent leg is taken into consideration.
If your client is responsible shipment up to specific leg

Configuration For Transportation Continued

Define & assign activity profiles
o You can use activity profiles to define which actions are to be performed once a shipment
reaches a particular status
EX: once the shipment reaches completion status, the system should perform the goods
issue activity for each of the constituent delivery documents.
Define & assign tariff zones (T_76)
Tariff zones helps to maintain freight condition records for shipment
Shipment cost type & Item category's

To be continued

Conclusion

THANK YOU