SAP Transportation Management Implementation for a Large Retailer

The LeverX team of experts helped a retail company implement SAP TM, thereby automating transport processes and significantly improving the company's key performance indicators.

Client

The client is a large food retail chain with a wide network of stores and distribution centers. The company handles high volumes of goods and must ensure timely deliveries while maintaining product quality and shelf-life requirements. Its logistics operations include long-distance transportation between distribution centers as well as direct deliveries to retail stores, using both its own fleet and external carriers.

Challenge

The project was aimed at improving logistics operations through the implementation of a digital solution for logistics and transportation management.

The client defined the following key objectives to improve logistics operations:

• Improve the quality and reliability of transportation services.
• Reduce overall transportation and operational costs.
• Establish a unified transportation management system to replace fragmented reporting and disconnected operational tools.
• Decrease transport downtime by automating planning and execution processes.
• Reduce manual effort and time spent on daily operations.
• Minimize errors in carrier selection and route planning.
• Increase operational efficiency by integrating transportation processes with customer and partner systems.

Solution

More than 70 LeverX specialists participated in the project, including consultants, developers, functional and technical architects, and heads of functional teams. 

LeverX experts were responsible for the following project tasks:

• Implementation of SAP TM and all settings and improvements in the system.
• Integration of SAP TM with other SAP solutions and third-party systems.
• User training.

The implementation part comprised four key directions.

Creating an SAP collaboration portal

The portal ensured interaction between retailers and carriers, contracting and bidding, and spot tendering for unscheduled shipments.

Planning and optimization of line-haul transportation

We implemented a planning and optimization solution to manage the long-distance transportation of goods to distribution centers and between distribution centers. The solution streamlined transportation services by improving route planning, load utilization, and delivery scheduling.

Transportation execution control

Transportation operations were enhanced through the implementation of SAP Event Management, enabling real-time monitoring of logistics process steps. This approach increased process visibility, supported proactive exception handling, and strengthened overall control of transportation activities.

Secondary distribution optimization and planning

Secondary distribution processes were optimized to support direct deliveries from distribution centers to final destinations, addressing one of the most complex SAP TM scenarios. SAP TM was connected to a third-party routing service to consider road restrictions and constraints, resulting in more accurate route planning and more efficient delivery execution.

We also implemented integration with the Collaboration Portal to streamline communication and coordination with carriers. This integration enabled seamless interaction with domestic and external carriers, supported the full lifecycle of hired transport management, and facilitated contracting and fast bidding for additional vehicles, including the execution of unscheduled transportation requests.

In addition, we provided end-user training to help the client’s personnel adapt to new transportation processes and efficiently use the system’s planning, execution, and monitoring features in daily operations.

SAP TM implementation services covered system configuration, custom enhancements, and integration with other SAP solutions and third-party systems, ensuring seamless data exchange and end-to-end process visibility across the transportation landscape.

Technology Stack

The solution is built on SAP’s intelligent logistics platform, ensuring end-to-end transportation automation, improved KPI performance, and scalable process optimization:

Core logistics solution: SAP Transportation Management (SAP TM)

SAP TM provided comprehensive support for key logistics processes, including:

• Planning transportation demand (e.g., determining the required number of trips per period).
• Transportation planning and execution, including route selection, delivery prioritization, assignment of responsible personnel, and shelf-life consideration of goods.
• Optimization of line-haul transportation, secondary distribution, and hired transportation scenarios.

Results

The implementation of the SAP TM solution for automating transport processes has improved the company's key performance indicators and resulted in:

• 20% increase in productivity of trunk delivery vehicles.
• 3% increase in vehicle space utilization for long-distance delivery vehicles.
• 3% increase in the productivity of direct delivery vehicles.
• 2% reduction of rates under contracts of hired carriers.
• 5% reduction of rates for spot freight of hired carriers.
• Reduction of dead mileage.
• Reduction of fuel consumption.
• Reduction of cargo damage.