Benefits of SAP TM for Transportation Companies

Our world seems to be moving faster and faster, forcing all the processes within to adjust to its speed. When customers make an order, they want everything to be done and delivered in the shortest terms possible. Such high expectations encourage businesses to optimize their performance, especially the transportation department,  to meet the demand and establish their firm presence in the market. Considering the changeability of the market, it is important to adjust the company’s performance accordingly, otherwise, it will be easy to get lost in the ocean of competitors. One of the revolutionary solutions regarding transportation management nowadays is the SAP ERP software and its SAP TM Module which offers a completely new approach to organization and control of the transportation flow.

SAP transport management

What are SAP ERP and SAP TM Module?

SAP ERP is a collective term for a system of modules, whose aim is to streamline all the processes within the client-company. The modules of SAP cover every type of department within the business structure and automate all the processes, bringing clarity, accessibility, and transparency.

SAP TM, or SAP Transportation Management, Module that helps businesses organize transportation logistics efficiently, avoiding pain points and losses. SAP TM  is a state-of-the-art software that benefits planning, execution, coordination, and tracking processes.

The main functions of SAP TM:

  • 24/7 monitoring and management of the transportation
  • Calculation of shipping costs for the ordering and delivering companies
  • Transport planning
  • Goods reservation
  • Automation of manual work
  • Delivery routes optimization
  • On-demand generation of invoices and compliance documents
  • Shipments tracking, etc.

SAP TM  is suitable for procure-to-pay and order-to-cash processes. It can also be integrated with other systems, like SAP ERP billing and invoicing and SAP Yard Logistics (SAP YL), providing cover-it-all control over the movement of the goods, and related financial operations.


SAP Transportation Management Characteristics

1.   Freight Management

Freight management aims to provide efficient movement from the point of origin to the desired destination by using various types of technologies, transportation, and intermediaries.

SAP TM allows for streamlining the process of quoting, forecasting transportation needs, and negotiating rates with logistics service providers and carriers.

2. Planning Optimization

SAP TM functions best when you need to reduce shipping costs, plan the inbound and outbound shipping, and determine the best routes and locations. What’s more important, all the processes are automated, which eliminates the chances of man-made mistakes due to the lack of attention.

3. Document Processing

Documentation is a stumbling block for many businesses, a rather tedious task that involves many employees and hours of work. SAP TM revolutionizes the workflow regarding transportation, as it can produce and manage all the documents needed for shipping: bills for lading for air, sea, or road transport, labels of freight units, forwarding instructions and orders, order- and delivery-based transportation requirements, etc.

4. Order Management

SAP TM can easily be integrated with the SAP ERP system, allowing all the orders and deliveries to be instantly converted to SAP TM  delivery requirements.

5. Analytics and Reports

Another crucial feature SAP TM offers to its users real-time insight into all the operations, with the on-demand generated reports. All the reports can be visualized in a convenient form any time the users need it.

How to Implement the SAP TM Module?

SAP TM Module can be used as a standalone solution, or as a part of a system of modules, united in one platform. The implementation of the SAP TM can start a long history of cooperation with SAP integrators, as when extending the business influence, there will be a need for other solutions as well.

The integration of SAP modules can only be entrusted to professionals, who possess an extensive level of knowledge and have a long history of successful SAP integration.

One of the most notable and certified SAP Integrators is LeverX, a company with 20+ years of SAP expertise and a worthy portfolio of cooperations. LeverX helps every client to settle into a highly-competitive business environment, by improving all the inner processes. LeverX is an example of constant growth, as they are always ready with the latest SAP solutions and modifications.

The testimonials regarding their work are always positive and state a high level of professionalism and a client-oriented approach.

The Bottom Line

The changeability of the business environment challenges the ability of the companies to adapt to new conditions. SAP Transportation management helps to streamline all the transportation activities and provides the visibility of the entire cycle of transportation. When implementing SAP TM  into the company’s structure you are open to a more efficient and centralized control over all the iterations related to the transportation and delivery of goods.

If you are ready to boost your company’s performance and improve the transportation department, contact LeverX for more detailed information and professional advice.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.