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SAP Transportation Management

SAP TM connects what was sold or bought to the trucks, containers and invoices that move it. We design, implement and modernise transportation management, embedded in S/4HANA or as a separate instance.

How the document flow works

Select a step to see what happens there and which modules are involved. This is the flow we design, test and support.

Demand

Freight unit building

Freight unit building rules split or combine requirement items into freight units: the smallest units the planner moves. Rules consider things like incoterms, weight, volume and dangerous goods.

Modules involved: TM

Architecture: embedded or side-by-side

Both are valid. The choice depends on how many ERP systems feed transportation and where you are in your S/4HANA journey.

Embedded in S/4HANA

  • TM runs inside the S/4HANA system, sharing master data such as business partners, products and locations
  • No separate integration layer between order, delivery and freight documents
  • Suits companies running transportation for one S/4HANA system
  • Licensing distinguishes basic shipping from advanced TM capabilities; confirm your scope early

Side-by-side (separate instance)

  • A dedicated TM system connected to one or more ERP systems
  • Useful when several ERPs, including ECC, feed one transportation organisation
  • Adds integration to design, monitor and support
  • Often part of a phased path while ERP systems are migrated

What we design and build

Freight unit building
Rules that turn order and delivery items into plannable units, considering incoterms, quantities, weight and volume limits, and handling requirements.
Freight order management
Freight order and booking types, stages, dates, document flow and status handling for road, rail, ocean and air.
Transportation planning
Planning profiles, selection criteria and the Transportation Cockpit layouts planners use every day, from manual planning to optimiser runs.
Carrier selection
Lane-based selection using freight agreements, priorities, costs and allocations, with the business rules behind each decision written down.
Freight tendering
Direct and broadcast tendering, response deadlines, and how tender results update the freight order.
Charge calculation
Freight agreements, calculation sheets, rate tables and scales for base freight, surcharges and accessorial charges.
Freight settlement
Settlement documents, the hand-off to purchasing and service entry, invoice verification and cost distribution.
Transportation execution
Event handling, status updates, loading and unloading, and the link back to deliveries and goods movements.

Integration with the rest of S/4HANA

Most TM issues are integration issues. These are the connections we test end to end.

SAP SD
Sales orders and outbound deliveries as transportation requirements, freight cost back into billing where you charge customers for freight.
SAP MM
Purchase orders, stock transport orders and inbound deliveries; purchase orders and service entries created from freight settlement.
SAP EWM
Warehouse picking, staging and loading aligned with freight orders, and the timing of goods issue relative to departure.
SAP FI and CO
Posting of freight costs, accruals, and distribution of cost to deliveries, materials or cost objects.

SAP TM modernisation

For companies moving from ECC shipment processing (LE-TRA) or an older TM release.

  • Map current shipment types, shipment cost documents and user exits to TM objects and configuration
  • Decide order-based or delivery-based transportation requirements before design starts
  • Move rate maintenance from condition records to freight agreements and calculation sheets
  • Plan which planning steps stay manual in the first release and when to introduce optimisation
  • Migrate open shipments and agreements at cutover without double-booking carriers

SAP TM questions

Can we start with TM before the rest of S/4HANA is live?

Yes. A separate TM instance can connect to ECC while the ERP migration happens, then be consolidated later. It adds integration work, so it is a decision to make with both programmes in view.

Do we need the optimiser from day one?

Rarely. Optimisation depends on accurate master data for lanes, zones, resources and constraints. Many companies go live with cockpit-based planning and switch on optimisation once the data proves reliable.

Who should own freight agreements after go-live?

Usually procurement or logistics, not IT. We agree ownership during design so rates are maintained by the people who negotiate them.

Planning an SAP TM project?

Whether you're replacing LE-TRA shipments or extending an existing TM system, we'll talk it through with you.