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.

Customer

The customer is a retail chain and a leading food retailer.

Challenge

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

Solution

SAP S/4HANA Embedded TM is a solution that allows you to complete all the logistics tasks and automate manual operations. We chose this solution as a tool to improve the customer's KPI.

Products and Services

• SAP Transportation Management (SAP TM)
• SAP Implementation

High-Priority Tasks

The customer identified the following important tasks for improving logistics processes:

• Increase the level of transport services;
• Reduce transportation costs;
• Implement a unified transportation management system instead of fragmented reporting and operation services.

Business Goals

To ensure that all key performance indicators are met and goods are delivered to stores on time, which increases the profit of the enterprise, the customer needed a software solution that would achieve the following business goals:

• Reduce transport downtime by eliminating manual operations and fully automating processes;
• Optimize staff by automating processes, thereby reducing the time needed to perform daily operations;
• Eliminate errors associated with the choice of carrier and route;
• Minimize non-production activities by integrating the solution with customer and partner systems.

Project Scope

More than 70 LeverX specialists were involved in the project to implement SAP TM into the customer's business processes. Among them were SAP consultants, SAP developers, functional and technical architects, and heads of functional groups.

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.

SAP Transportation Management (SAP TM) Implementation

Automates the main logistics processes of the company:

• Planning transportation needs (number of trips for a certain period of time;
• Transportation planning (appointment of responsible persons, route selection, prioritization of deliveries, taking into account the shelflife of the goods, etc.)

More information about SAP TM

Integration with the Collaboration Portal

The integration helps with:

• Interaction with domestic carriers;
• Interaction with external carriers and support for the full cycle of hired transport management;
• Contracting and quick bidding for ordering additional vehicles and realization of unscheduled transportation.

Key Project Directions

Directions included in the SAP TM implementation project:

SAP Collaboration Portal

Interaction between customers and carriers, contracting and bidding, quick bidding (SPOT) in case of unscheduled shipments.

Planning and optimization of trunk delivery

Trunk delivery is the transportation of goods over long distances (to distribution centers or between distribution centers). Trunk delivery also includes the provision of transportation services.

Transportation and transportation control

The SAP Event Management solution is used to monitor process steps (events).

Dropshipping optimization and planning

Direct delivery is the transportation of goods from the distribution center to the final destinations of the routes. This is one of the most complex scenarios in SAP TM. We integrate SAP TM with a third-party service to ensure that all road restrictions are taken into account and optimize route planning, we integrate SAP TM with a third-party service.

Results

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

• 20% increase in productivity of trunk delivery vehicles;
• 3% increase in the cargo capacity of long-distance delivery vehicles;
• 3% increase in the productivity of direct delivery machines;
• 2% reduction of tariffs under contracts of hired carriers;
• 5% reduction of tariffs for spot freight of hired carriers;
• Reduction of dead mileage;
• Reduction of fuel consumption;
• Improved quality of goods delivery.