SAP Transportation Management:
Transportation Planning Process
Industries implementing “SAP Transportation Management 6.0”.
This article explains the process of Transportation Planning with VSR Optimizer in SAP TM6.0 Author: Hemantha Kumar Malladhi
Company: Intelligroup Asia Pvt. Ltd., Created on: 3 November 2008
Hemantha Kumar Malladhi is working as a Sr.Consultant with Intelligroup and has been part of SCM competency since March 2006.
Table of Contents
Business Requirement ...3
Business scenario Example data ...3
Transportation Planning Process ...4
Create Shipment Request...4
Transportation Planning ...5
Tendering Process ...10
SAP TM 6.0 is a new Transportation Management solution designed specifically for logistics service providers and large shipping companies. SAP Transportation Management 6.0 (SAP TM 6.0) combines order quotation, receipt, and confirmation, transportation planning/dispatching, transportation execution, tracking, and freight charge management in one system. SAP TM supports all modes and means of transport (Sea, air, land and train).
SAP TM serves shippers as well as 3PL or Freight Forwarding industries. The new solution is designed in a way that both sides of a transportation process are covered. Shipper companies often want to minimize transportation costs or improve customer service. From the Shipper’s perspective, you can combine inbound and Outbound Transportation logistically and financially. Third Party Logistics Providers (3PL) or companies involved in freight forwarding on the other side need to look at improving revenue and maximizing their bottom-line. From Logistics Service Provider’s perspective, SAP TM offers higher Transparency on Profitability on both buying and selling side. It supports different types of tendering such as peer to peer, broadcast and open tendering.
SAP TM has capability to adapt plan after execution of Transportation activities started. It has ability to do Delta planning, i.e ability to plan new Transportation demands into existing shipments without re-planning everything.
The objective of this article is to explain how the Shipment request to move goods from one Location to another is Planned and tendering process will be carried out for this Shipment Request.
The business requires that a customer has ordered to move Goods from one Location to another location. This Shipment request will be entered into the TM manually by TM User. Transportation Planning is carried out by TM Planner by Utilizing Vehicle Resources Optimally under the given constraints and Tendering process will be carried out for this Shipment. Finally Shipment order will be released to the Transportation service Provider to complete the Shipment.
Business scenario Example data
A customer 0000060124 has requested to ship the products from Source Location 3100. Customer is also defined as Location in TM and hence Destination Location is 000060124. A business partner 122 is defined for this Customer, hence consignee will be 122 in the shipment request. A business partner 114 is defined for Shipping point 3100.Hence shipper is 114 and ordering party is also 114. We have a sales organization 50000635, Distribution Channel 10 and division 00 who are responsible for this Shipment Request.
Transportation Planning Process
Click on “Activate” button to Save and Activating the Shipment Request.
Go to Dispatching node in SAP-Easy access and Click on Transportation Planning Transaction.
You will get Transportation Planning screen: Enter Planning Profile and Requirements Profile
Click on Apply profiles Tab. You will get Transportation planning screen with list of Freight units to be planned. Note that we have a freight unit
Click on the Optimizer Planning Tab: you will get VSR Optimization Screen
Click on Close tab: you will get Transportation planning screen:
To access Shipment order, go to Subcontracting and Tendering Transaction in subcontracting node in SAP Easy Access: You will reach to the following screen:
Click on Shipment order 125: Shipment order gets opened:
Click on release tab on the Shipment Order. This step is required to initiate Tendering Process:
You will get tendering popup screen: Enter tendering manager
Click on Tendering configuration tab: You will get maintain Process screen:
Enter Template Value in the field and Click on Load Template tab in the Tendering Process configuration Template:
You will get following Tendering type in the Tendering Overview with list of Transportation service providers:
Click on start tendering Tab: you will get following messages:
TM system automatically creates Request for Supplier Shipment quote: To verify the Request for Supplier shipment quote, go to Subcontracting and tendering transaction in subcontracting node:
Click on requests for Supplier Shipment quote (All): All the Requests for Supplier Shipment quotes are displayed.
This will be transmitted to supplier. Based on his response, this Request for Supplier Shipment quote may be accepted or rejected. If the supplier accepts this request, we need to manually accept this RSSQ by clicking on Accept without changes tab. Assuming that supplier has accepted this quote. Click on accept without changes tab.
Supplier shipment quote is automatically created by the system after accepting Request for Supplier Shipment quote.
To verify Supplier Shipment Quote, Go to Subcontracting and tendering screen and Click on Supplier shipment quotes (all).
To send the Shipment order to Transportation service providers, Go to Subcontracting and tendering screen and Click on Shipment orders (all)
Click on Send Order tab to transmit Shipment order to Transportation service providers. You will get following messages:
Transportation Management SAP-Help on TM 6.0
For more information, visit the Operations homepage.
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