Introduction

21

Transportation and Logistics

23

Protagonists and Roles

25

Shippers

27

Logistics Service Providers

27

Modes of Transport

30

Maritime Logistics

31

Air Freight Logistics

32

Land Logistics

33

Multimodal Transportation

35

Transportation Processes

36

Direct Shipments

36

Partial Loads

37

1 SAP Transportation Management Foundations

41

1.1 SAP Business Suite and SAP NetWeaver

41

1.1.1 Layers and Components of an SAP System

42

1.1.2 SAP NetWeaver Application Platform

45

1.1.3 SAP NetWeaver Functions That Support Business Applications

48

1.1.4 Important Business Concepts in SAP Systems

51

1.1.5 SAP NetWeaver Application Components

55

1.2 SAP TM as Part of the SAP Business Suite

57

1.2.1 SAP TM

59

1.2.2 SAP ERP

59

1.2.3 SAP Event Management

64

1.2.4 SAP Environment, Health, and Safety Management

65

1.2.5 SAP Global Trade Services

65

1.2.6 SAP Extended Warehouse Management

65

1.2.7 SAP Customer Relationship Management

66

1.2.8 SAP Quality Issue Management

68

1.2.9 SAP hybris Billing

68

1.3 Functional Overview of SAP TM

69

1.3.1 Process Coverage and Collaboration with SAP TM

70

1.3.2 Mode of Operation of SAP TM

74

1.3.3 Overview of the Following Chapters

81

2 Solution Architecture and Technological Concepts

85

2.1 Technological Foundation of SAP TM

87

2.1.1 Storing Data in the BOPF

87

2.1.2 Data Processing with the BOPF

94

2.1.3 Business Add-Ins

99

2.2 User Interface Technologies

100

2.2.1 Floorplan Manager and Floorplan Manager BOPF Integration

103

2.2.2 Defining User-Specific Roles and Menus

107

2.2.3 Filtering Roles for SAP NWBC

108

2.2.4 Customizing Screen Areas

109

2.3 Frameworks and Tools Used throughout SAP TM

111

2.3.1 Condition Framework Using BRF+

111

2.3.2 Incompatibilities

119

2.3.3 Post Processing Framework

122

2.3.4 Document Creation

124

2.3.5 Optimizer

125

2.3.6 SAP Visual Business

126

2.3.7 Process Controller Framework

128

2.4 Integration Technology with SAP TM

129

2.4.1 SOA-Based Integration with SAP PI

130

2.4.2 Integration with SAP PI without Predefined Content

137

2.4.3 Monitoring Integration Messages with Service Interfaces

139

2.4.4 RFC-Based Communication

141

3 Master Data

143

3.1 General Master Data

145

3.1.1 Organizational Structure

145

3.1.2 Product

154

3.1.3 Dangerous Goods

159

3.1.4 Business Partner

165

3.1.5 Transferring Master Data between SAP ERP and SAP TM

172

3.2 Transportation Network

182

3.2.1 Locations

184

3.2.2 Transportation Zones

188

3.2.3 Transportation Lanes

192

3.2.4 Schedules

199

3.2.5 Transshipment Locations

214

3.2.6 Default Routes

218

3.2.7 Trade Lanes

223

3.2.8 Transportation Network Cockpit and Overview POWL

225

3.2.9 Integration of Geographical Information Systems

229

3.3 Resources

233

3.3.1 Vehicles and Trailers

234

3.3.2 Calendars and Handling Resources

247

3.3.3 Transportation Unit Resource

249

3.3.4 Defining Resources

252

4 Transportation Requirements and Order Management

261

4.1 Integration of SAP ERP Documents

263

4.1.1 Sales Order Integration

266

4.1.2 Integration of Materials Management Orders

270

4.1.3 Integration of Scheduling Agreements

271

4.1.4 Order-Based Transportation Requirement

272

4.1.5 Integration of Deliveries

280

4.1.6 Integration Scenarios

281

4.1.7 Sales Order Scheduling

288

4.2 Forwarding Orders and Forwarding Quotations

289

4.2.1 Forwarding Orders

292

4.2.2 Charge Estimation

326

4.2.3 Forwarding Quotations

328

4.2.4 Creating Orders and Quotations with Reference

334

5 Transportation Capacity Management

341

5.1 Capacity Management Process

342

5.1.1 Overview

342

5.1.2 Systematically Creating Schedule-Based Freight Documents

348

5.1.3 Schedule Change Management

350

5.2 Allocations

351

5.3 Business Shares

359

5.4 Freight Bookings

362

5.4.1 Ocean Freight Bookings

363

5.4.2 Air Freight Bookings

373

6 Transportation Planning

379

6.1 Freight Units

380

6.1.1 Freight Unit Definition

381

6.1.2 Properties of Freight Units

383

6.1.3 Creating Freight Units

390

6.1.4 Package Building

395

6.2 Transportation Units

399

6.2.1 Transportation Units, Freight Units, Freight Orders, and Freight Bookings

399

6.2.2 Trailer Units

401

6.2.3 Railcar Units

405

6.2.4 Container Units

406

6.3 Manual Planning

408

6.3.1 Planning Strategies

410

6.3.2 Profiles and Settings

410

6.3.3 Configuring the Transportation Cockpit

419

6.3.4 Hierarchical View and Dual View

428

6.3.5 Map

435

6.3.6 Gantt Chart

438

6.3.7 Load Plan

451

6.3.8 Entry into the Transportation Cockpit

453

6.3.9 Using the Transportation Cockpit

455

6.3.10 Transportation Proposal

462

6.3.11 Scheduling

468

6.4 Automated Planning

470

6.4.1 Background Planning and Vehicle Scheduling and Routing

471

6.4.2 Configuring Optimizer Settings

474

6.4.3 Vehicle Scheduling and Routing: Planning Objectives

479

6.4.4 Vehicle Scheduling and Routing: Planning Constraints

484

6.4.5 Vehicle Scheduling and Routing: Optimization Algorithm

494

6.4.6 Explanation Tool

496

6.4.7 Load Optimization

498

7 Carrier Selection and Subcontracting

503

7.1 Carrier Selection

504

7.1.1 Process

504

7.1.2 Objective of the Carrier Selection Optimizer

508

7.1.3 Constraints

513

7.1.4 Configuration

519

7.2 Freight Order Management

522

7.2.1 Configuration and User Interface

523

7.2.2 Freight Order Items

534

7.2.3 Special Processes with Freight Orders

534

7.2.4 Service Orders

540

7.3 Freight Tendering

542

8 Transportation Execution and Monitoring

553

8.1 Transportation Execution

554

8.1.1 Document Creation

555

8.1.2 Discrepancies

564

8.1.3 Export/Import Processing

567

8.1.4 Execution Information between SAP TM and SAP ERP

584

8.2 SAP Event Management

585

8.2.1 Event Handlers and Event Messages

588

8.2.2 Event Management Process

593

8.2.3 SAP Event Management Configuration

597

8.2.4 Event Messages and Event Processing

609

8.2.5 End User Interaction, Lists, and Background Processing

612

8.2.6 Preconfigured Event Management Content

615

8.2.7 Integrating SAP Event Management with Other Components

617

9 Transportation Compliance

621

9.1 SAP Global Trade Services

625

9.1.1 Functionality Overview

626

9.1.2 Integration of SAP GTS and SAP TM

630

9.1.3 Export Compliance for Sanctioned Party Screening and Embargo Checks

634

9.1.4 Export Customs Services

638

9.1.5 Import Customs Services

643

9.2 SAP Environment, Health, and Safety Management

646

9.2.1 Dangerous Goods Regulations

647

9.2.2 Dangerous Goods Classification

648

9.2.3 Requirements for Dangerous Goods Checks in Transportation

649

9.2.4 SAP ERP Master Data for Dangerous Goods and Shipper Handling

651

9.2.5 Dangerous Goods-Related Integration and Process Flow between SAP ERP and SAP TM

653

9.2.6 Configuration of Dangerous Goods Checks for SAP TM

655

9.2.7 Dangerous Goods Content Loader

658

9.2.8 SAP TM Application-Level Setup for Dangerous Goods Support

659

9.2.9 Dangerous Goods Data and Checks in SAP TM

660

9.3 External Compliance Service Providers

662

9.3.1 Cargo Security Filing Procedure

665

9.3.2 Export and Import Customs Declaration and Transit Procedure

666

9.3.3 Air Freight Booking Procedure

666

10 Transportation Charge Management

667

10.1 Charge Calculation Master Data

669

10.1.1 Contract Management with Agreements

671

10.1.2 Calculation Sheet

680

10.1.3 Rate Tables

687

10.1.4 Service Products and Standard Operating Procedures

694

10.2 Contract Determination

700

10.2.1 Contract Determination Logic

701

10.2.2 Setup of Contract Determination

705

10.2.3 Preconditions for Contract Determination

707

10.3 Charge Calculation Logic in Selling, Buying, and Internal Invoicing Processes

708

10.3.1 Charge Calculation Logic Basics

709

10.3.2 Charge Calculation for Air Freight

724

10.3.3 Charge Calculation with Freight-Forwarders

730

10.3.4 Charge Calculation for Trucking, Rail Freight, and Container Management

733

11 Strategic Customer and Vendor Contract Management

741

11.1 Strategic Freight Selling

743

11.1.1 Constraints, Expectations, and Activities in Customer RFQ Management

743

11.1.2 The RFQ Management Process

744

11.1.3 Strategic Freight Selling Functions

746

11.2 Strategic Freight Procurement

752

11.2.1 Freight Procurement Planning and Analytics

754

11.2.2 Freight Agreement Request for Quotation Process

756

12 Charge Settlement

771

12.1 Charge Settlement and Billing

773

12.1.1 Creating Forwarding Settlement Documents

774

12.1.2 Structure of Forwarding Settlement Documents

781

12.1.3 Integrating Forwarding Settlement Documents with SAP ERP Sales and Distribution

785

12.1.4 Business Scenarios in the Forwarding Settlement Process

790

12.1.5 Creating Freight Settlement Documents

795

12.1.6 Structure of Freight Settlement Documents

797

12.1.7 Integrating Freight Settlement Documents with SAP ERP Materials Management

799

12.1.8 Carrier Self Billing and Dispute Management

809

12.1.9 Credit Memos

813

12.2 Cost Distribution and Internal Settlement

816

12.2.1 Cost Distribution

818

12.2.2 Internal Settlement

824

12.2.3 Profitability Analysis

833

12.3 Settlement with SAP hybris Billing

835

13 Integration with Other Components

841

13.1 Analytics

843

13.1.1 Business Intelligence Content

846

13.1.2 Data Provisioning and Operational Reporting

850

13.1.3 Embedded Analytics with Business Context Viewer

858

13.2 Integration with SAP EWM

861

13.2.1 Introduction to SAP EWM

863

13.2.2 Integrating with SAP ERP

866

13.2.3 Standard Integration Scenarios

867

13.3 Integration with SAP EWM for Transit Warehouse

885

13.3.1 Transshipment Operations

885

13.3.2 Integration Overview

886

13.3.3 Sample Air Freight Scenario

892

13.4 Collaborative Transportation Management

902

13.4.1 Mobile Applications

903

13.4.2 Collaboration Portal

910

13.5 Integration with SAP Customer Relationship Management

913

14 Implementation Best Practices

919

14.1 Large Transportation Management System Installations

920

14.2 Use Preconfigured Sample Scenarios

922

14.3 Use Rapid Deployment Solutions

923

14.4 Customer Onboarding in SAP TM Installations

925

14.5 Use Central Control Elements in SAP TM Setup

927

14.6 Optimize the Sequence of SAP TM Configuration

933

14.7 Consider SAP TM’s Strengths and Limitations

935

14.8 Enhance SAP TM via Custom Development

937

Appendices

945

A Additional References

947

B Abbreviations

949

C The Authors

955