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Efficiency, Transparency, and Saving Are the Three Pillars of the SAP Transportation Management Solution

Time-consuming manual processes, Big Data, and its disorganized storage are characteristic of logistics. That’s why this business industry can definitely benefit from the implementation of modern software and innovative approaches to supply chain management.

In our article, we take a look at how the SAP Transportation Management solution can assist in modernizing logistics processes and achieving their efficiency.

Top 4 Logistics Industry Trends

What determines the future of the logistics sector today?

RFID

RFID is radio-frequency identification that allows determining the location in real time. With RFID, you’re always aware of the location of the goods and trucks. The information helps to quickly respond to emergencies and, for example, change the transportation route, thus avoiding delays.  

Omnichannel Delivery

This approach aims at ensuring a continuous and easy process of buying and returning goods from any place. Today there are the following ways of achieving the target:

  • From warehouse to consumer and back.
  • From supplier to consumer and back.
  • From store to consumer and back.
  • From delivery point to consumer and back.

In contrast to the traditional approach, in this case, these are suppliers and their partners who are responsible for the last stage of delivery, not customers or buyers.

Big Data

Thanks to rapid data collection, analysis, and demand forecasting, companies can quickly achieve operational efficiencies and cost savings. As an example, let’s have a look at the operation of onboard sensors to measure the speed, location, and downtime of transport units. 

The data obtained through the system allows maximizing the working time of machines and reducing their downtime, as well as developing optimal routes and even providing modern preventive maintenance of transport units.

Integrated Solutions for Organizing Logistics Processes

To ensure efficient supply chains and reliable communication between suppliers and buyers, logistics companies need modern embedded software that will help manage all logistics business processes, from ordering and loading to delivery.

The SAP Transportation Management (SAP TM) solution can help you tackle all the challenges faced by modern logistics, ensuring the reliability and efficiency of supply chain management.

SAP TM Is the Key to Addressing Logistics Challenges

SAP TM is a modern solution for planning and managing the processes of land, sea, air, container, and rail freight, providing transparency at each stage. With the solution, you can: 

  • Develop a vast transport network.
  • Reduce transport costs. 
  • Efficiently use transport.
  • Optimize freight routes.
  • Easily choose contractors.

Thanks to the integration of SAP TM with SAP Extended Warehouse Management and SAP S/4HANA, you can also ensure constant workflow and consistency of all processes, including control over the actions of storekeepers, ensuring the constant availability of goods in the warehouse, etc.

Why Will Investments in a System for Transportation Management Definitely Pay off?

According to the Gartner report, companies that have already implemented SAP TM, annually save from 5 to 20% on freight. After the implementation, your company can achieve the following results:

Order management

  • High transparency of transport demand.
  • Improved efficiency of order and process management.
  • Improved customer service.
  • Big data management for thorough analysis and planning.

Planning

  • Accelerated planning thanks to the consolidation of all the processes.
  • Proper resource management.
  • Rapid adjustments.
  • Delivery optimization, both regional and international, incoming and outgoing.

Order fulfillment

  • The right choice of carrier.
  • Close interaction with a service provider.
  • Improved cargo handling.
  • Fast and efficient logistics operations.

Freight calculation

  • Transport costs management.
  • Integration of transportation management and billing processes.
  • High level of calculation accuracy.
  • Transparency of calculation process.

Other

  • Reduced transport costs and improved performance.
  • Improved interaction with transport service providers.
  • Optimal resource management.
  • Efficient pass-through management or orders and processes.
  • High transparency of order fulfillment processes and rapid response.

Learn about how LeverX Experts Implemented SAP TM into the System of a European Transport Company  

Discover New Opportunities for the Development of Supply Chains with the Help of Experienced Integrators

LeverX is a recognized leader in the implementation of SAP TM into businesses. What makes Lever X a reliable partner and service provider?

Over 18 years of cooperation with SAP has resulted in LeverX having deep technological expertise and profound knowledge of the SAP solutions, including not only SAP TM but also SAP Yard Logistics, SAP Extended Warehouse Management, SAP Logistics Business Network, and SAP Track and Trace.

Moreover, the LeverX team localized SAP TM for several markets and thoroughly studied the specifics of transport processes in various regions. Our implementation projects cover all types of transportation, including air, sea, container, rail transportation, as well as the “last mile” delivery stage.

We offer the following services:

  • SAP TM implementation
  • SAP TM integration with other solutions
  • Development of personal models and functions
  • SAP TM support

The experience of the LeverX team allows us to implement turnkey implementation projects, which means that you can be sure of the project's successful realization.

If you want to know how to automate planning, increase the return on transport costs, or optimize transport routes with an SAP solution, LeverX experts answer all your questions. Book a free consultation.