| Status |
| |
| Owner | VAN OS-ext, Nico | |
| Stakeholders | Najaite Nidboufker |
Issue
Syensqo is transitioning to SAP S/4 HANA system. In S/4 HANA there the Shipment document is no longer available. This functionality is replaced by SAP Transportation Mangement (TM). With this new module the concept of managing transportation needs to be redesigned.
SAP TM comes in two variants: Basic Shipping and Advanced TM. Here Basic Shipping is a reduced scope version of Advanced TM. A decision needs to be made
Issue
This document has the goal to provide more understanding of the differences between Basic Shipping and Advanced Transportation Management. With this information, it should be able to make a decision which version is most suitable for Syensqo.
Recommendation
There are too many functions that are useful for Syensqo. Basis version is too limited. Advanced version is recommended.
Advanced TM has the best fitting capabilities to support Syensqo processes. Especially with the additional compliance checks that are available it is advised to implement Advanced TM.
In the document below there is an extract of all functions that are available in Advanced TM that are not available in Basic Shipping. The key features that are most beneficial for Syensqo are:
- Sales Order based integration - Option to start transportation planning once the Sales Order is created (instead only once the delivery has been created);
- Dangerous Goods integration - Usage of DG Data, compliance check, blocking of transportation orders and for example 1000 Points Rule;
- Incompatibilities in planning - This is required to build in compliance rules. For example, two types of material are not allowed to be shipped together;
- Transportation Units - This are used for Container Units. Special fields for container units will be available. Also, charge calculation based on Container Units is often required;
- Automatic Carrier Selection - allows the system to rank available carriers and can also automatically select the most preferred carrier;
- Integration with GTS - Updates from GTS for sanctioned party lists during the transportation process.
Background & Context
Overview and Background
To phase out LE-TRA, SAP S/4HANA introduced since its 1709 release what was known before as "Basic Shipping", now simply Transportation Management.
Basic Shipping/Transportation Management is a reduced scope version of Advanced Transportation Management and does not require an additional license. It is worth to mention that Basic Shipping/Transportation Management is a subset of functionality of the full scope version Advanced Transportation Management and share the same configuration nodes and master data objects.
Differences between Basic Shipping and Advanced TM
SAP has provided a comprehensive overview of functions that are available in Advanced TM that are not available in Basic Shipping. Below overview of most important differences for Syensqo with consultancy notes.
Full list:
basic TM vs. Advanced TM_consultancy notes.xlsx
Color coding in Excel: Red = most important | Green = important | Yellow = not as important
Area | Feature in S/4 TM (full) | Definition | Consultancy Notes |
|---|---|---|---|
| 1 Basic Functions | Sustainability | This function can be used to calculate the emissions quantity and fuel consumption for a freight order. You can also define other sustainability factors for a transportation mode or means of transportation. | Useful for Syensqo as it supports reports on CO2 emissions. |
Background & Context
Overview and Background
To phase out LE-TRA, SAP S/4HANA introduced since its 1709 release what was known before as "Basic Shipping", now simply Transportation Management.
Basic Shipping/Transportation Management is a reduced scope version of Advanced Transportation Management and does not require an additional license. It is worth to mention that Basic Shipping/Transportation Management is a subset of functionality of the full scope version Advanced Transportation Management and share the same configuration nodes and master data objects.
Most important differences with consultancy notes
Full list: basic TM vs. Advanced TM_consultancy notes.xlsx
Extract of most important items:
Red = most important | Green = important | yellow = not as important | other items in Excel
Area
Feature in S/4 TM (full)
Definition
basic Transportation Management or Advanced Transportation Management
Consultancy Notes
1 Basic Functions
Sustainability
This function can be used to calculate the emissions quantity and fuel consumption for a freight order. You can also define other sustainability factors for a transportation mode or means of transportation.
Advanced Transportation Management
Could be useful.
1 Basic Functions
CO2 Emissions
Usage of CO2 emissions fields in TOR objects, especially for further features like:
Manual and automatic planning with CO2 emissions
Rporting of actual CO2 emissions
Distributing of CO2 emissions to freight units
Advanced Transportation Management
Could be useful.
2 Master Data
Trade Lanes
A trade lane is a classification of any transport-related activities representing a combination of zones or locations combined with a transportation mode or means of transport and providing an orientation between the source and destination.
Advanced Transportation Management
Useful in Freight Agreement
2 Master Data
Resources
Definition Capacity, Dimensions, Weight (Gross / Net), Volumes, Availability, Downtimes, Qualification
Advanced Transportation Management
| 3 Order Management | Order based Freight Units | Sales order Purchase Order Stock Transfer order Returns based Freight Units As well as MM or SD Scheduling Agreements based Freight Units |
Advanced Transportation Management
Can be very important for early planning
3 Order Management
Service Order Management
TOR Category: Service order from Header or Item can be created out of a TOR document
Advanced Transportation Management
Regularly used for additional charges. In most cases to cater for different tax code compared to the Freight Order.
3 Order Management
Air / Ocean / Rail specific functions
For example:
SOLAS = Verified Gross Mas fields and functions, Air Cargo Security fields and checks,
Rule 11 - invoicing carrier on stage level,
IATA Code Fields, etc.
Advanced Transportation Management
Depending on detailed design.
3 Order Management
FO Short Cut Scenario out of order or deliveries using FUBR
Direct Creation of Freight Order out of an sales order / purchasing order or delivery note using Freight Unit Building Rules instead of the creation of a Freight Unit.
Other term: Direct Shipment Option
Advanced Transportation Management
This can bypass the Freight Unit creation. Can be useful for Full Truck Load scenarios.
4 Planning
Business Shares
Business shares are optimization options for the carrier selection. The system takes into account business shares during the automatic carrier selection
Advanced Transportation Management
Could be useful. Depending on detailed design.
4 Planning
Allocations
The check against transportation allocations is an optimization option that you can use as part of both the manual and automatic carrier selection.
Advanced Transportation Management
Could be useful. Depending on detailed design.
4 Planning
Incompatibilities
Incompatibilities in Planning
Advanced Transportation Management
Important for Syensqo. Will be used for preventing certain combinations of Dangerous Goods.
4 Planning
Transportation Units
Transportation Units
Rail-, Trailer-, Container- , Package Unit etc.
where a separate capacity document can be created
Advanced Transportation Management
Very useful. Especially in container consolidation and charge calculation for Ocean Freight.
4 Planning
Planning in Transportation Units
All TM processes which depend on the usage of the SCM Optimizer
Advanced Transportation Management
Very useful.
4 Planning
Field catalogs for Transportation Cockpit
Using field catalogs for the transportation cockpit, the user can define which fields in a certain list or hierarchy of the transportation cockpit are displayed by default, can be added via personalization or shall not be visible at all.
Advanced Transportation Management
Very useful for usability.
4 Planning
Transportation Planning Cockpit
All Features which belong to the Transportation Planning Cockpit
For Example: Gantt Charts, Map based Planning, Load Planning, Scheduling with VSS
Advanced Transportation Management
1) Gantt Charts - not used often.
2) Map - nice to have
3) Load Planning - Can be powerful for certain businesses. Depending on detailed design.
4) Built in scheduling is new. Unsure what limitations are compared with VSS.
4 Planning
Scheduling (Optimizer server)
Scheduling running on optimizer server
Advanced Transportation Management
Built in scheduling is new. Unsure what limitations are compared with VSS.
4 Planning
Map Based Planning
Map Based Planning or Map Display.
Both are based on the Visual Business (VB) UI5 Control, which does not need separate license.
Advanced Transportation Management
Nice to have.
4 Planning
Gantt Chart
Transportation Cockpit using planning with GanttChart
Advanced Transportation Management
Not often used.
4 Planning
Distance and Duration Buffer
Distances and durations determined from an integrated geographical information system (GIS) can be buffered in TM to avoid re-determining them again each time they are required. Usually, reading from a buffer is faster than determining the distances and durations again.
Advanced Transportation Management
Important for Milkrun optimizer planning. For Syensqo it will depend on detail design.
4 Planning
VSR Optimization
VSR Optimier - SCM Optimizer (Installation)
Advanced Transportation Management
Could be useful. Depending on detailed design.
4 Planning
Automatic Load Planning
You can plan the loading space of box trucks, trailers, semi-trailers, and containers in the transportation cockpit or directly in business documents (Road freight order, Trailer unit and Container unit). Planning is carried out at the item level.
Advanced Transportation Management
Could be useful. Depending on detailed design.
4 Planning
Load Planning 3D Visualisierung
In both the transportation cockpit and in the freight order, you can check the results of load Planning as a 3D load plan.
Advanced Transportation Management
Nice to have.
4 Planning
Automatic Carrier Selection
Automatic Carrier Selection
Carrier Ranking Lists (with more than one carrier)
Advanced Transportation Management
Very useful.
4 Planning
Driver Management
If you work with vehicle resources and drivers, you can assign drivers to freight orders and take them into account during Planning.
Advanced Transportation Management
Not used often. Could be considered when there needs to be a certificate check for drivers. Unlikely this to be scoped.
4 Planning
Scheduling Constraints
Scheduling (optimizer server) considers these constraints to approximate driving time and working hours constraints
Advanced Transportation Management
Used with optimizer planning. Depending on detailed design.
4 Planning
Driving Time and Working Hours Constraints
Embedded scheduling considers these constraints and determines start and end times of the required rests
Advanced Transportation Management
Used with optimizer planning. Depending on detailed design.
4 Planning
Normalized Quantity and Additional Normalized Quantity
With this feature you can use (additional) normalized load consumption quantities and (additional) normalized capacities to optimize the usage of loading space. For example, you can convert quantities regarding pallets having different footprints into europallets (normalized quantity) and loading meters (additional normalized quantity) and specify the capacity of a truck regarding (additional) normalized capacity.
All features around (additional) normalized quantities require Advanced Transportation Management
Advanced Transportation Management
Can be useful.
5 Freight Execution and Monitoring
Carrier Response to spot bids
Carrier can confirm or change data like rates / time slots etc. for delivery
Advanced Transportation Management
Can be useful.
5 Freight Execution and Monitoring
Peer to Peer Tendering Broadcast Tendering
Tendering via LBN or without LBN: Peer to Peer Tendering
Broadcast Tendering
Advanced Transportation Management
Can be useful.
5 Freight Execution and Monitoring
Delivery Proposal out of TM
Interactive Delivery triggering out of:
- Freight Document manually
- out of TM Planning Cockpit
- out of POWL ' Overview Transportation Requirements'
- out of ERP Logistic Integration -> create deliveries in ERP
Advanced Transportation Management
Is useful if the delivery size is dependent on truck size as determined by transportation planning.
5 Freight Execution and Monitoring
Background Job to trigger delivery creation
Batch Job to trigger delivery creation Report /SCMTMS/DLV_BATCH
Advanced Transportation Management
Is useful if the delivery size is dependent on truck size as determined by transportation planning.
5 Freight Execution and Monitoring
Dangerous Goods Integration into Product Compliance classic TM specific example methods
TM specific Check methods (emaples) for Dangerous Goods such as: 1000 Points Rule
Shipper ́s Declaration
Especially the usage of DG_ADR Data in the Freight Objects
Advanced Transportation Management
Very useful for Syensqo.
5 Freight Execution and Monitoring
Dangerous Goods Integration into Product Compliance - NEW functionality
The new product compliance integration into Transportation Management, e.g. functions like:
- Checking of all compliance-relevant products to determine whether road, rail, sea and air cargo transport processing is allowed as it pertains to dangerous goods regulations
- Blocking of transportation demands and freight orders/freight bookings if no compliant transport is possible
- Process support, if dangerous goods assessments are missing, the dangerous goods expert is automatically informed
- Dangerous goods status field on item and header level for identifying items with dangerous goods issues
- Dangerous goods information in electronic messages of transportation management
Advanced Transportation Management
Very useful for Syensqo.
6 Contract Management
External Agreements - SMC3
This function allows Transportation Management (TM) to use agreements stored in an external system when calculating transportation charges. When processing the calculation sheet and checking the relevant rates, the TM system connects to the external system to determine the rates. TM can obtain accurate rates or estimated rates from the external system, depending on whether you specify the reference number of the external system's agreement.
Advanced Transportation Management
Not familiar with this function.
6 Contract Management
Freight Agreement workflow
You can enable an approval workflow for the release of agreements. You can specify that you want the system to notify an approver when you request approval for the release of an agreement. You can also specify whether you can edit agreements during the approval workflow. In agreements with multiple parties, only one approver must approve the release of the agreement
Advanced Transportation Management
Very useful.
7 Charge Management
Advanced Charge Caclulation for specific modes of transports
Air
IATA Rates for Air
Rates based on Air Cargo Security / Cut Off Dates Commodity based Charges
Index table based charges
prepaied and collect on bookings
Advanced Transportation Management
Depending on detailed design.
7 Charge Management
Event Based Charge Calculation
Separate Customizig for Event based charges is set
Advanced Transportation Management
Can be useful.
7 Charge Management
Advanced Charge Caclulation for specific modes of tranpsort:
Ocean
Ocean
General Cargo Rating
Commodity based Charges
Index table based charges
Prepaied and collect on ocean booking
Advanced Transportation Management
Depending on detailed design.
7 Charge Management
Resource based Charges
When ever you use ACTIVE OR PASSIVE RESOURCES as attribute for the charge calcucation (CALCULATION RESOLUTION BASE or CALCULATION BASE) then this is only included in Advanced TM.
This also includes the usage of NO_OF_AXELS as Calculation Base.
Advanced Transportation Management
Used sometimes.
7 Charge Management
Fuel Surcharge
Fuel Surcharge Calculation - Model 1 (US)
Fuel index (Gasoline and Diesel Fuel prices) are published by government on a weekly basis, fuel index is published mainly based on origin location/zones. Hauler uses the published index to do a rate look-up.
Fuel Surcharge Calculation - Model 2 (EU)
Base fuel index is agreed with Hauler during contract negotiation, for charging a customer Hauler derives the factor (current_index/base_index) to be applied based upon the current fuel index
Advanced Transportation Management
Often covered with a workaround, where one user maintains a rate table in the system with Fuel Surcharge.
7 Charge Management
Multiple agreement pop up
Often LSP’s would have multiple FA’s with the same carriers and Purchasing organizations
This is due to the fact that a LSP may strike deals with carriers at various levels : e.g. Country, Regional and Global basis
Normally the larger the contracts the better are the rates. However, if a country BP is pushing a lane to increase market share then the LSP could potentially get better rates and therefore it is meaningful to have a different contract with the country BP or even multiple contracts Similar scenario can exist on the customer side
So the ability to choose a particular context in a given scenario is a critical business requirement on both buying and selling side
Advanced Transportation Management
Used sometimes.
7 Charge Management
Container provisioning and return
In SAP Transportation Management you can request provisioning of empty containers or railcars for providing transportation service in the future. You can also request for return of the empty containers or railcars. You can then calculate the charges for empty provisioning, empty return, or empty provisioning with a transportation service.
Advanced Transportation Management
Useful.
7 Charge Management
Service charges handling
You can charge for additional services, such as fumigation, packing and labelling, and insurance, even when you do not specify these additional service items in the freight agreement attached to a freight order. You can include the charges for the charge types associated with the service items in the freight order and perform charge calculation.
Advanced Transportation Management
This can be useful, but not used often.
7 Charge Management
Ignore calculation rule
If you select this checkbox, the system ignores the calculation rule for the charge line you specified in the relevant calculation sheet or rate table, and it does not calculate the calculated amount. Instead it uses the rate amount as the calculated amount.
Note that the system deselects this checkbox by default. This checkbox is enabled only for charge lines with a rate table.
Advanced Transportation Management
Very useful for manual updates on TMS costs.
7 Charge Management
Holiday Based charges
As a logistics service provider or carrier, you can charge your customers additional charges incurred for providing services on non-working days, such as weekends and public holidays, in a particular country or region.
Advanced Transportation Management
Depending on detailed design.
8 Freight Settlement
Group Logistics Management
Side by Side possible
Only embedded in S/4HANA is future scope
Advanced Transportation Management
This is for consolidation with multiple company codes. This function can be used (and is often used) with enhancements.
8 Freight Settlement
Automatic Change Management process for settlements
In TM, you may need to change a freight order after you have created a freight settlement document and after you have posted the freight settlement document to Materials Management (MM).
You can run the background processing functions. The system makes the required change in the relevant downstream business documents.
Advanced Transportation Management
This is new. If this function exist then it is very useful.
8 Freight Settlement
Carrier Invoice and Dispute Management
These are part of the Carrier invoice and dispute management which are part of Advanced Transportation Management licenses:
40 Freight Settlement Dispute Case
50 Carrier Invoice
60 Carrier Credit Memo
The category 50 and 60 is the ability to create in S/4 HANA for example the Carrier invoice and
Carrier Credit Memo using the B2B interface.
Advanced Transportation Management
This is very useful when LBN is used.
9 Integration
Integration with GTS
The global trade functions in Transportation Management (TM) help you to meet the requirements for transporting customs-relevant goods.
Advanced Transportation Management
Can be important for Syensqo. When an embargo is placed or customer is blacklisted, then Freight Orders can be blocked for execution.
9 Integration
LDAP Web Service Integration between TM and EWM (Shipper Scenario) - TU (in EWM) based
Integration between EWM and TM with
LDAP Request and LDAP Nodification using EWM Transportation Unit
Advanced Transportation Management
Very important.
9 Integration
Integration to Business Suite Product SAP Event Management
Integration to SAP Event Management (Business Suite).
See further below: as well the integration into Event Management as S/4HANA Add On is only availalbe with Advanced Transportation Management
Advanced Transportation Management
Topic to be discussed with SAP. Is this future proof and how does this integrate with LBN?
9 Integration
Carrier Collaboration Fiori Apps - Freight Order Management - Tendering
Integration into NEW APP for Carrier Collaboration
Carrier representatives can view and respond to the freight requests for quotations. Proposal of price and stop start and end dates is also possible.
Post submitting the quotes, the carriers can view the evaluation / awarding status in the Display Freight Quotations application.
Advanced Transportation Management
Topic to be discussed with SAP. Is this future proof and how does this integrate with LBN?
9 Integration
Carrier Collaboration Fiori Apps -Freight Order Management - Order Confirmation
Integration into NEW APP for Carrier Collaboration
Subcontracted freight orders are shown for the carrier confirmations. Carriers can submit their confirmations from the fiori application.
Direct Tendering is also supported, the relevant freight orders are sent and confirmations are received from carrier representative.
Advanced Transportation Management
Topic to be discussed with SAP. Is this future proof and how does this integrate with LBN?
9 Integration
Carrier Collaboration Fiori Apps – Manage Execution of Freight Orders
Integration into NEW APP for Carrier Collaboration
Carrier representatives can view and report events for the freight orders.
Advanced Transportation Management
Topic to be discussed with SAP. Is this future proof and how does this integrate with LBN?
9 Integration
Web Services for Charge Management and Settlement in Advanced TM
The usage of those web services are used in advanced scenario of Freight Cost Management, Collaboration with Forwarders and Freight Settlement:
- Order Charge Element In / Out
- TransportationOrderChargeNotification_In - Order Invoicing Preparation In / Out
- Freight Agreement Processing
- Supplier Freight Invoice Request
- Carrier Invoice Transportation
- Dispute Case Notification
Advanced Transportation Management
This could be essential for integration with TMS systems. Could be discussed with SAP for confirmation.
9 Integration
Decentral Deployment for Direct Integration of TM - EWM via Advanced Shipping & Receiving
ASR scenarios running decentral for defined outbound scenarios (transportation driven, warehouse driven).
TM and EWM are running on the same database instance next to an ERP database instance.
The scenario is available only with Advanced Transportation Management.
Advanced Transportation Management
Very useful. Functionality with standard EWM is limited.
9 Integration
Integration between TM and Event Management on SAP S/4HANA
The integration of Events via usage of SAP Event Management is Advanced Transportation Management.
SAP Event Management can be either deployed as Business Suite Solution (SAP EM) or as a technical Add on in SAP S/4HANA (as of May 2021)
As well the usage of reporting Events via Interface TransportationEventBulkNotification is Advanced Transportation Management
Advanced Transportation Management
Topic to be discussed with SAP. Is this future proof and how does this integrate with LBN?
10 Business Network for Logistics
Peer to Peer Tendering Broadcast Tendering with BN4L Integration
Tendering via BN4L: Peer to Peer Tendering Broadcast Tendering
Advanced Transportation Management
Can be very useful. Depending on detailed design.
11 Analytics
Realtime Analytics and reporting – via CDS
Core Data Service related Analytics
That includes all related FIORI APPs – Analytical List Pages (ALP) and Overview Pages (OVP)
Advanced Transportation Management
Nice to have.
11 Analytics
Transportation Management Business Performance Dashboard
The dashboard consists of three different sections, where in the first “Overview” section a high level summery of the transport situation is given. Followed by the “Execution and Block” section where a detailed insight into the current transportation business status is provided. The third and last section covering the “Transported Quantities” is tackling quantity related information, down to a single transport and its individual items.
Advanced Transportation Management
Nice to have.
11 Analytics
BW/4 for Transportation Management
Five CDS based single extractors for ROOT, ITEM, STAGE, STOP and EXECUTION are available, as well as one combined CDS extractor for ROOT- ITEM. All extractors support the Change-Data-Capture (CDC) delta mechanism. For the ROOT-ITEM extractor is also an according BW/4 standard content available.
Advanced Transportation Management
Nice to have.
Warehouse Management dependencies
The TM version chosen will also affect which Warehouse Management solution.will fit in the system landscape.
Stock Room Management
With Stock Room Management there is no expectation that this will impact the TM version. Stock Room Management has limited integration with SAP TM, which makes the decision free to use SAP TM basic version or advanced version.
EWM Basic Licence
With EWM there is the option to use Advanced Shipping & Receiving (ASR). With the basic licence, the integration on Transportation Units (TU) is not available. Transportation Units are mostly used for container shipping processes, where the TU represents the container. When advanced TM is chosen then direct TM-EWM integration is possible, but is ill-advised.
A combination of Basic EWM and Advanced TM is better without ASR delivery, and with delivery integration only. The integrated Load/Unload of Freight Orders is not available. And there will be no status updates from EWM to the Freight Order.
EWM Advanced Licence
Advanced EWM has the full features and for that it is no surprise that it offers the best integration with Advanced TM. Full advanced Shipping & Receiving can be used. These two solutions can work integrated together.
As these two solutions are designed to operate in harmony it is expected that stability of the integrated process will be better.
Assumptions
n/a
Constraints
Impact on available functions for EWM Basic Licence
| This is for early planning of transportation, which is an opportunity for Syensqo. This function was requested during workshops. | |||
| 4 Planning | Incompatibilities | Incompatibilities in Planning | This function is useful for preventing certain combinations of Dangerous Goods. It can also be used to apply other business rules during Transportation Planning, e.g. reefer containers for certain materials. |
| Transportation Units | Transportation Units Rail-, Trailer-, Container- , Package Unit etc. where a separate capacity document can be created | Very useful. Especially in container consolidation and charge calculation for Ocean Freight. For charge calculation the calculation base will be the container. | |
| Automatic Carrier Selection | Automatic Carrier Selection Carrier Ranking Lists (with more than one carrier) | Carrier selection is very useful and often used. Especially carrier ranking based on actual costs is popular. | |
| 5 Freight Execution and Monitoring | Dangerous Goods Integration into Product Compliance classic TM specific example methods | TM specific Check methods (examples) for Dangerous Goods such as: 1000 Points Rule Shipper ́s Declaration Especially the usage of DG_ADR Data in the Freight Objects | Dangerous Goods integration is essential for Syensqo to make sure transportation is compliant with local regulations. |
| Dangerous Goods Integration into Product Compliance - NEW functionality | The new product compliance integration into Transportation Management, e.g. functions like:
| Dangerous Goods integration is essential for Syensqo to make sure transportation is compliant with local regulations. | |
| 9 Integration | Integration with GTS | The global trade functions in Transportation Management (TM) help you to meet the requirements for transporting customs-relevant goods. | Can be important for Syensqo. When an embargo is placed or customer is blacklisted, then Freight Orders can be blocked for execution. Without direct integration with GTS, then all integration is through the delivery. |
Assumptions
- ERP Shipments are no longer available in S/4 HANA and the shipment object will be replaced by SAP TM objects; Freight Order and Freight Booking.
- In regions where there is currently no TMS system (Asia, LATAM), users will start using SAP TM as a TMS solution.
- When possible the system should help check the transportation planning results based on certain business rules. E.g. certain products are to be loaded in reefer containers.
- For transportation of containers over road or sea, charges are calculated per container.
- There will be direct integration between SAP TM and GTS for embargo checks.
- Early transportation planning (planning after Sales Order creation) will be part of project scope.
- CO2 reporting will be scoped as part of the S/4 HANA solution.
Impacts
Infrastructure
Advanced TM will need an optimiser server.
Licensing
While the "Basic Shipping" functionality is included in the license for S/4HANA, the use of Advanced TM attract an additional license.
Warehouse Management
The TM version chosen will affect the integration options with Warehouse Management. With the use of Basic EWM with Advanced TM there is no direct integration.
To be able to support tracking of deliveries that need to be loaded in one Freight Order, it is likely necessary that the system will need an enhanced reference field to be built, so that users in EWM can monitor which Deliveries belong to which Freight Order. All other updates are expected to flow through the LE Delivery. At the time of writing, it is understood that this enhancement can be implemented using custom development without the need to modify SAP-delivered code.
For more information on this topic, please see KDD014 - Future-proof Warehouse Operations.
Business Rules
Integration profile between Sales Order / Purchase Order / Delivery / Transportation Management with the use of Shipping Condition and Route to be determined during detailed design. That will determine when transportation planning can start from the Sales Order.
Transportation Charges: If there are external TMS systems that are in the process, then transportation charges have to be updated to the TM Freight Order / Freight Booking. When there is no TMS system in use, then transportation charges have to be maintained on the Freight Order / Freight Booking. Please also refer to KDD048 - Way Forward with BluJay and KDD062 - Integration with Transportation Providers.
Dangerous Goods master data has to be complete. If DG master data is incomplete then transportation planning and execution will be blocked.
Incompatibilities: Constraints for transportation planning that can be covered with incompatibilities will be collected during detail design.
Sanctioned Party: When a sold-to party or ship-to party becomes part of the sanctioned party list then goods in transit (have left the warehouse, but is not delivered yet at incoterm location) need to be blocked from further processing. This would be for subsequent documents that have not been executed yet. It then needs to be decided where goods need to be shipped to. Further details on the design of the process to be decided during detail design.
Evaluation
The decision on the TM Licence has considerable impact on the approach of the module.
With Basic TM the focus will be on replacing the Shipment functions and integrating the new system into the existing landscape. Existing TMS and other systems cannot be considered for replacement.
For functions like container planning, container based charge calculation, optimizer planning, certain Dangerous Goods integration, and other missing features, manual work-arounds need to be designed, or custom enhancements probably need to be built.
With Advanced TM there are more options to have a solution that will fit the business needs. After building the backbone of the TM solution (replacing existing functionality + implementing essential features) there is the opportunity to explore more Advanced functions. That can be within this project, or after the initial implementation.
With Advanced TM there will be more room for considering the replacement of existing TMS solutions, or to make TMS functions available for regions that currently don’t have a TMS solution.
First implementing Basic TM and later transitioning to Advanced TM is not a great idea, because that would result in a redesign, or development on top of a solution that was based on Basic TM.
Due to big differences between Basic TM and Advanced TM, most clients opt to implement Advanced TM. There are strong arguments that this will also be the case for Syensqo. For a future-proof solution Advanced TM has clear benefits.
Option A: Basic Shipping | Option B: Advanced TM | |
|---|---|---|
Costs |
| |
Integration | | |
Optimisation | | |
Compliance | | |
Subcontracting | | |
Charge Calculation | | |
See also
Impacts
- Infrastructure: Advanced TM needs an optimizer server.
- Project scope: With advanced TM there can be a broader scope. During project scoping this scope needs to be defined and possibly limited and prioritised.
Business Rules
n/a
Options considered
Option A:
Option B:
Option C:
Option D:
Evaluation
The decision on the TM Licence has considerable impact on the approach of the module.
With basic TM the focus will be on replacing the Shipment functions and integrating the new system into the existing landscape. Existing TMS and other systems cannot be considered for replacement.
For functions like container planning, container based charge calculation, optimizer planning, certain Dangerous Goods integration, and other missing features, manual work-arounds need to be designed, or custom enhancements probably need to be built.
With advanced TM there are more options to have a solution that will fit the business needs. After building the backbone of the TM solution (replacing existing functionality + implementing essential features) there is the opportunity to explore more advanced functions. That can be within this project, or after the initial implementation.
With advanced TM there will be more room for considering the replacement of existing TMS solutions, or to make TMS functions available for regions that currently don’t have a TMS solution.
First implementing basic TM and later transitioning to advanced TM is not a great idea, because that would result in a redesign, or development on top of a solution that was based on basic TM.
Due to big differences between basic TM and advanced TM most clients opt to implement advanced TM. There are strong arguments that this will also be the case for Syensqo. For a future proof solution advanced TM has clear benefits.
Pros and Cons
Option 1
Basic TM with Stock Room Management
License Costs
Limited functionality
As it is designed to replace LE-TRA, it is to be expected that it can be close to the as-is design, but there is no option to expand and utilise existing transportation functions.
Some enhancements to be expected to cover missing advanced TM functions.
Option 2
Basic TM with basic EWM
Similar as option 1
Similar as option 1
Option 3
Basic TM with advanced EWM
Costs
Full EWM functions
Limited functionality for TM
Similar as option 1 for transportation, but more functionality available for EWM.
Option 4
Advanced TM with Stock Room Management
Can operate as TMS solution
Use of Transportation Units
More integration with Dangerous Goods and GTS
Limited functionality for EWM
Optimizer server required
Full availability of TM Functions.
Option 5
Advanced TM with basic EWM
Similar as option 4
Can’t utilise proper integration between TM and EWM
Limitations for TM-EWM integration.
Option 6
Advanced TM with advanced EWM
Standard Advanced solution
Can operate as TMS solution
Use of Transportation Units
More integration with Dangerous Goods and GTS
Optimizer server required
Full availability of TM Functions.
See also
Note 3065464 - Definition: Basic Shipping vs basic Transportation Management vs advanced Transportation Management
Following additional information Information is provided by SAP is also attached to this document.
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Change log
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basic TM vs. Advanced TM 28.02.2024.pdf
Transportation Management vs. Advanced TM - 2021.pdf
Change log
Version
Date
Author
Change log
0.1
11 Jun 24
Nico van Os
Workflow history
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