Introduction to

SAP Transportation Management (SAP-TM)

Classification of Logistics Execution

3

Part of Logistic Chain ( Logistic Execution Module in SAP)

Transportation process includes inbound and outbound

shipments and shipment cost calculation and settlement.

Transportation is linked with shipping when you create

deliveries and then assign many deliveries to one shipment

document considering that multiple deliveries will go in one

truck or via rail

Introduction-SAP Transportation Module

Where Transportation Stands in SAP MM and SD

SAP AG 1999

Shipments in Logistics Execution

POprocessing

Inbounddelivery

Goodsreceipt

Invoiceverification

Sales orderprocessing

Outbounddelivery

Goodsissue

Billing

Inboundshipment

Outboundshipment

MM ordering SD order processing

LE Logistics Execution

Vendor Customer

Important functions in SAP Transportation

5

Defining Modes of Transport – Road , Rail or SeaDefining Shipping Types – such as Trucks Setting Up Transportation Connection Points-Hamburg, GermanyDefining Transportation Zones – specifying all required regionsCreating Transportation Groups-On palettes, ContainerSetting Up Weight Groups -Up to 100 kg,5000 to 1000 lbs

Shipments in SAP R/3

Types of Shipments in SAP R/3

Individual Shipment – One or more deliveries are combined in one shipment document. It starts from the same starting (shipping) points and ends at common destination.

Types of Shipments in SAP R/3

Collective Shipment – One or more deliveries , originating from different starting points & shipped to different destinations may be clubbed together with common shipment

Types of Shipments in SAP R/3

Transportation Chain –A transportation chain is useful if you are dealing with deliveries that will be transported using multiple modes of transportation (and are thus processed by different departments at the transportation planning point).

Features of SAP Transportation Module Combines inbound deliveries to form inbound shipments

Combines outbound deliveries to form outbound shipments

Assigns service agents, modes of transport, and shipment types

Plans and monitors deadlines

Specifies shipment stages.

Creates output and shipping papers

Records shipment-relevant text

Records partner information

Estimates the freight cost

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