| Status | Approved |
| Owner | VAN OS-ext, Nico |
| Stakeholders | Najaite Nidboufker |
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.
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
Color coding in Excel: Red = most important | Green = important | Yellow = not as important
Key features that are available in Advanced TM only (decision makers)
- Sales Order based integration
- 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.
Other items to highlight
Extract of most important items:
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 for Syensqo as it supports reports on CO2 emissions. |
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 | Note: TOR objects are Freight Orders, Freight Bookings (among things). Could be useful for Syensqo as it supports reports on CO2 emissions. |
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 as it can limit or specify the validity of a Freight Agreement. It can also be useful for reporting of utilization. |
2 Master Data | Resources | Definition Capacity, Dimensions, Weight (Gross / Net), Volumes, Availability, Downtimes, Qualification | Advanced Transportation Management | For capacity planning this could be essential, depending on requirements |
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, which is an opportunity for Syensqo, as in the workshops this functionality was requested. |
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 | The optimizer can be used in multiple ways to support transportation planning. Basically it is an automated planning machine that can be untilised. |
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. It allows us to configure the Transportation Cockpit in a way that is most fitting for the type of planning. Most important data can be placed at the front. |
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 | The optimizer can be used in multiple ways to support transportation planning. Basically it is an automated planning machine that can be untilised. 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 | Load planning allows planning to stack trucks as full as possible considering business constraints. Automatic load planning does the same, using the optimiser engine. 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 | Useful if load planning is being utilized. |
4 Planning | Automatic Carrier Selection | Automatic Carrier Selection Carrier Ranking Lists (with more than one carrier) | Advanced Transportation Management | Carrier selection is very useful and often used. Especially carrier ranking based on actual costs is popular. |
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. Depending on detailed design. |
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. Depending on detailed design. |
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. Depending on detailed design. |
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. Not likely to be used for Syensqo. |
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 likely to be used for Syensqo |
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 not possible. This means that integrated Load/Unload of Freight Orders is not available.
Some important functions might need custom build, e.g. Freight Order reference, Loading Status updates to TM.
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
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
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.
| Options | Pros and Cons | Comments |
|---|---|---|
Option 1 Basic Shipping |
| 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. |
Option 2 Advanced TM |
| Full availability of TM Functions. |
License 
Limited functionalitySee also
Note 3065464 - Definition: Basic Shipping vs basic Transportation Management vs advanced Transportation Management
Following additional information is provided by SAP
Change log
Version | Date | Author | Change log |
0.1 | 11 Jun 24 | Nico van Os | Initial version |
| 0.2 | 23 Jul 24 | Nico van Os | Updates based on review feedback. |
Workflow history
| Title | Last Updated By | Updated | Status | |
|---|---|---|---|---|
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