SAP TM

ESSENTIAL LOGISTICS TERMS

• Landed Cost: Total cost of a product to the point it’s ready to be delivered
to your customer.
• Shipper and Consignee
• HBL/HAWB: The house bill of lading (HBL) is a receipt or contract between
you and your freight forwarder.
• MBL/MAWB: The master bill of lading (MBL) is the contract between your
freight forwarder and the actual carrier.
• LCL/FCL: Full Container Load
• Drayage: Drayage is a truck service that moves containers to and from a
port.
 ESSENTIAL LOGISTICS TERMS
• Incoterms: INternational COmmercial TERMS
 ESSENTIAL LOGISTICS TERMS
• Shipping Liner/Carrier
• Marine Insurance
• LTL/FTL
• ULD
• 3PL
OTHER PARTY LOGISTICS
 TMS PRODUCTS
• BluJay
• Cloud Logistics
• Descartes
• JDA
• Kuebix
• Manhattan
• MercuryGate
• Oracle
• SAP
• TMC
• TMW
• Transplace
 SAP TM INTRODUCTION
• SAP Transportation Management (SAP TM) is a standalone Application
from SAP AG.

• SAP TM enables you to manage all inbound and outbound domestic and
international freight in the same environment and provides traceability and
visibility of orders, shipments, items, and logistics processes.
 PRODUCT OVERVIEW & BENEFITS
• Consolidate orders and maximize the return on your transportation spend.
• Forecast demand and shipment volumes accurately to fine-tune
transportation planning.
• Enhance freight, fleet, and logistics management to gain real-time visibility
into global transportation and domestic shipping across all transportation
modes and industries.
• On-premise and cloud deployment
AN OVERALL SAP TM
HISTORY OF SAP TM
EVOLUTION FROM R/2 SYSTEM TO TM
DIFFERENCES
SAP TM: HEART OF THE PROCESS
TM FUNCTIONAL AREA
PROCESS AND CAPABILITIES
SAP TM ARCHITECTURE
SAP INTEGRATION
TM - ECC INTEGRATION
 SAP TM SYSTEM TERMS
• FWO : Forwarding Order
• FO : Freight Order
• FU: Freight Unit
• FRB: Freight Booking
• FWSD: Forwarding Settlement Document
• FSD: Freight Settlement Document
• ISD: Internal Settlement Document
• TRQ object
• TOR object
• Pre carriage
• On carriage
• Main carriage
 BUSINESS FLOW

Credit/Debi
Lead Opportunity Quotation Agreement FWO FRB/FO FWSD
t Memo
 SHIPPER SCENARIO

Shipper scenario
• Domestic Outbound Transportation(DOT)
• Purchased or traded goods are distributed in an
efficient way to the customers.
 FREIGHT FORWARDER /LSP SCENARIO
• LSP, Logistics Service Provider,
outsourcing of logistics
operations to a third party.
Companies, or clients, use these
third parties known as logistics
service providers (LSPs) to
provide logistics services.
• LSPs may provide logistic services
to one or more clients at any
given time.).
 OCEAN AND AIR SCENARIO

FCL case

ULD
LCL case
 FCL SCENARIO
|-----Pre carriage--------------|----------------Main carriage----------------------|-----------On Carriage---------------|

Shipper’s Consignee’s
Port Port

Shipper Consignee
location location

|-----------FO-----------------------|-----------------------FRB------------------------------|-------------------FO-----------------|
 LCL SCENARIO
|----Pre carriage----|----------------------------------------Main carriage-------------------------------------|-----On Carriage----|

Shipper’s Consignee’s
Port Port
CFS
location CFS
location

Shipper
location Consignee
location

|-----------FO-----------------------|-----------------------FRB------------------------------|-------------------FO-----------------|
 AIR SCENARIO
|----Pre carriage----|----------------------------------------Main carriage-------------------------------------|-----On Carriage----|

Shipper’s Consignee’s
Air Port Air Port

Consolidation
Consolidation

Shipper
location Consignee
location

|-----------FO-----------------------|-----------------------FRB------------------------------|-------------------FO-----------------|
 ROAD SCENARIO
• Less than truckload (LTL) is the term used for the shipment of goods that don't
require the whole space of a truck - while full truckload (FTL) is used for
shipments that take up an entire truck's weight or space capacity

|------------------------------------------------------------- Pre/On Carriage -------------------------------------------------------|

Shipper/Consignee location Truck Port

|------------------------------------------------------------------------FO/FWO------------------------------------------------------|
 TM IMPLEMENTATION
• Discovering and planning
• Design and Configuration
• Development
• Testing
• Deployment
• Functional Releases and Ongoing support
• Rollout
 DTR/OTR
• Order Based Transportation Request:
Once a sales order is created and the
web services have successfully been
executed, a document is created in
the SAP TM system; this is the OTR, which
represents the sales order data
generated in SAP ERP and carries all
information relevant for the transportation
process.

• Delivery Based Transportation Request:

a transportation demand based on
a delivery that was created in SAP ERP
 LIFE CYCLE WITH RESPECT TO END USER
Preparing
Setting up a Performing Export Arranging for Delivering freight to
Start Customer Account Customs clearance
Consolidation and
delivery of freight. customer
documentation

Handing over Calculating

Receiving a Preparing shipment Arranging pickup of
document to charges on
shipment booking for a movement freight from carrier
Shipping liners shipment

Sending a Pickup and

Moving freight to Performing Import
notification of a delivering it to Invoicing of services
gateway clearance
customer’s order original Dock

Verifying the
Planning Freight Moving freight to
Arranging for Delivering freight to invoice and
Transportation destination
pickup of freight gateway executing the
Route gateway
settlement

Preparing
Confirming an Assigning shipment
consolidation,
Booking a Carrier Order with to outbound
creating paperwork End
customer gateway
for Main Carriage