Main Features and Benefits of SAP TM

SAP TM Definition

SAP TM, which stands for SAP Transportation Management, is a logistics management system software offered by SAP. This software is designed to assist with retail, transportation, warehousing and logistics integration. It includes all transportation solutions for regional, national and international trade and these solutions include many features such as shipping, delivery, warehousing, delivery, planning, financing, data analysis and reporting. Thanks to these features, it streamlines the operational processes of businesses by organizing workflows and tools.

How Does SAP TM Work?

SAP TM streams data between multiple transport operators' systems, allowing operators to easily compare features, optimize routes and shipping methods, and monitor the status of shipments.

SAP TM works in integration with other software as a much larger and more advanced supply chain management system. Typically, businesses integrate Enterprise Resource Planning (ERP) and Warehouse Management Systems with SAP TM system.

When SAP ERP, SAP WMS and SAP TM systems are intertwined, these three systems can provide reliability, efficiency and effectiveness by automating the end-to-end management and shipping process. It manages different branches of operational processes in three systems:

• SAP ERP handles the management of accounting, order processing and invoicing.
• SAP WMS enables the management of warehouse management operations such as packaging, loading, unloading, order processing, transportation, inventory tracking.
• SAP TM performs cargo management, route, and carrier optimization tasks such as optimizing freight rates, tracking cargo travel, and comparing carriers.

SAP TM Modules and Main Features

SAP Transport Management (SAP TM) has comprehensive features that automate and streamline end-to-end shipping processes, from planning and execution to freight settlement.

The main features of SAP TM include:

• Shipping Management

Advanced transport planning technology enables to minimize transport costs by mapping public transport routes and calculating vehicle optimization in the most cost-effective way .

• Document Management

It enables the bidding process and follow-up to control shipping costs, prepare shipping documents, plan freight units, issue forwarding instructions and select shippers.

• Freight Order Management

You can use freight order management, which is the foundation for shipping planning, to create and edit freight orders and freight reservations. To perform these operations, you can select the carrier and consider the options of subcontracting or bidding freight orders directly to a carrier.

• ERP Logistics Integration

ERP logistics integration provides support for planning and execution processes in line with ERP data, as well as orders and deliveries from SAP ERP to SAP TM.

• Planning

In planning, transportation plans are created for orders transferred or manually entered with the ERP system in forwarding order management. This planning process is carried out automatically by the system and the most suitable transportation plan is created by using advanced optimization algorithms.

Benefits of SAP TM

• The most important benefit of SAP TM to businesses is that it can be integrated with your different SAP applications.
• The fact that SAP TM has combined warehouse and delivery techniques increases transparency. So you can quickly fix a problem before it gets too big.
• SAP TM digitizes your transportation processes.
• You can get real-time visibility into all your logistics processes from order entry to customer delivery.
• You can automate your shipping processes. Thus, you reduce the time and effort you spend managing your shipping operations.