Introduction

to
SAP Transportation Management
(SAP-TM)
Classification of Logistics Execution
 Introduction-SAP Transportation Module

 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

3
Where Transportation Stands in SAP MM and SD

Shipments in Logistics Execution

MM ordering SD order processing

PO Sales order
processing processing

LE Logistics Execution
Inbound Outbound
delivery delivery

Inbound Goods Goods Outbound

Vendor Customer
shipment receipt issue shipment

Invoice
Billing
verification

 SAP AG 1999
 Important functions in SAP Transportation

Defining Modes of Transport – Road , Rail or Sea

Defining Shipping Types – such as Trucks
Setting Up Transportation Connection Points-Hamburg,
Germany
Defining Transportation Zones – specifying all required
regions
Creating Transportation Groups-On palettes, Container
Setting Up Weight Groups -Up to 100 kg,5000 to 1000 lbs

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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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