TM100 - Processes in TM.pdf

For Any SAP / IBM / Oracle - Materials Purchase Visit : www.erpexams.com OR Contact Via Email Directly At : [email protected]

Processes in Transportation Management


PARTICIPANT HANDBOOK INSTRUCTOR-LED TRAINING

Course Version: 16 Course Duration: 4 Day(s) Material Number: 50131923

0 For Any SAP / IBM / Oracle - Materials Purchase Visit : www.erpexams.com OR Contact Via Email Directly At : [email protected]


SAP Copyrights and Trademarks

© 2015 SAP SE. All rights reserved. No part of this publication may be reproduced or transm itted in any form or for any purpose without the express permission of SAP SE. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. •

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

•

IBM, DB2, DB2 Universal Database, System i, System i5, System p. System p5, System x, System z, System zlO, System z9, zlO, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S /39 0 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, P0WER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.

•

Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

•

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

•

Oracle is a registered trademark of Oracle Corporation

•

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

•

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

•

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

•

Java is a registered trademark of Sun Microsystems, Inc.

•

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

•

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries.

•

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

•

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.



These materials are subject to change without notice. These materials are provided by SAP SE and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.








© Copyright. All rights reserved.

v






Contents xi

Course Overview

1

U nitl:

SAP Transportation Management (TM)

2 11

Lesson: Evaluating SAP TM

14

Lesson: Evaluating the SAPTM System Landscape

Exercise 1: Identify the Capabilities of SAP Transportation Management

19 27

Exercise 2: Log on to the SAP ERP and SAP TM Systems Unit 2:

SAP TM User Interface

28

Lesson: Identifying NetWeaver Business Client (NWBC)

32 35

Components Lesson: Configuring a Personal Object Worklist (POWL) Exercise 3: Create a Query to Filter Transportation

39

Requirements Lesson: Customizing the Screen Layout in SAP TM

43

Unit 3:

45 49 65 73 77 82 85

Lesson: Identifying the Master Data Requirements for SAP TM Exercise 4: List the Master Data Requirements for SAP TM Lesson: Evaluating the Organizational Structures Used in SAP TM Lesson: Defining a Condition Exercise 5: Display a Condition Lesson: Determining a Freight Incompatibility Exercise 6: View Incompatibilities Lesson: Determining a Dangerous Goods Shipping Requirement

90 103

105 110 117 129 137 142 145

SAP TM Master Data

Unit 4:

Transportation Order Management

Lesson: Triggering the Transportation Management Process Lesson: Integrating SAP ERP with SAP TM Exercise 7: Create a Sales Order Lesson: Managing the Freight Forwarding Process Exercise 8: Create a Forwarding Order Lesson: Booking Capacities Exercise 9: Create an Ocean Freight Booking



157

Lesson: Defining the Transportation Planning Process

159 157 171 177

Exercise 10: Discuss the Transportation Planning Process Lesson: Viewing a Freight Unit Exercise 11: View a Freight Unit Lesson: Building a Package Lesson: Defining a Selection Profile Lesson: Determining a Planning Profile Lesson: Accessing the Transportation Cockpit

180 184 186 190 195 199 203 206 213 224 239

Exercise 12: Access the Transportation Cockpit Lesson: Generating a Transportation Proposal Exercise 13: Generate a Transportation Proposal Lesson: Creating a Freight Order Exercise 14: Create a Freight Order Lesson: Optimizing a Load Unit 6:

Transportation Execution

241

Lesson: Performing a Carrier Selection

249 254

Exercise 15: Execute a Carrier Selection Lesson: Tendering a Freight Order Lesson: Triggering Delivery Creation from SAP TM

260 269 273 281 287 307 312 323 326 331 339

Exercise 16: Create a Delivery Lesson: Executing Transportation in SAP ERP Exercise 17: Create a Shipment Lesson: Executing Transportation in SAP Extended Warehouse Management (SAP EWM) Lesson: Generating Outputs Lesson: Monitoring Transportation Events Exercise 18: View the Events of a Freight Order Lesson: Exporting a Freight Order Lesson: Analyzing SAP Transportation Management Performance Exercise 19: Execute a BCV Query




355 370 379 384

Lesson: Managing Charge Calculation Master Data Lesson: Calculating Supplier Charges in a Freight Order

389 404 411

Exercise 21: Generate a Freight Settlement Document Lesson: Calculating and Settling Customer Charges in an FWO Lesson: Distributing Costs

416 421

Lesson: Settling Freight Charges in a Group Logistics Company Lesson: Managing a Freight Contract

Exercise 20: Calculate Charges for a Freight Order Lesson: Settling Supplier Freight Charges







Course

TARGET AUDIENCE This course is intended for the following audiences:

•

Application Consultant

•

Business Analyst

•

Business Process Owner/Team Lead/Power User

•

Data Consultant/Manager

•

Development Consultant

•

Program/Project Manager

•

Technology Consultant

•

User







UNIT 1

SAP Transportation M anagem ent (T M )

Lesson 1 Evaluating SAP TM Exercise 1: Identify the Capabilities of SAP Transportation Management

2 11

Lesson 2 Evaluating the SAP TM System Landscape Exercise 2: Log on to the SAP ERP and SAP TM Systems

14 19

UNIT OBJECTIVES

•

List the benefits of SAP Transportation Management

•

Identify the scenarios supported for each release of SAP TM

•

Explain the components of transportation planning

•

Explain the components of transportation execution

•

Identify the basic capabilities of SAP Transportation Management

•

Explain the deployment options related to the SAP TM landscape

•

Log on to the SAP system



Unit 1 Lesson 1 Evaluating SAP TM

LESSON OVERVIEW Your company is considering using SAP Transportation Management (SAP TM) to manage its transportation activities. This lesson provides you with an idea of the scope of SAP TM and how it is integrated into a host of other SAP tools. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•


•


•


Transportation Management at SAP

Suppliers | Figure 1: Global Supply Chains

Companies have been shipping products across countries and continents for centuries. The concept of managing the transportation of products is not new. However, using new



methodologies and technology can make a difference in an industry. Today, most economies are wholly reliant on efficient transportation logistics. With the shift in recent years towards a global economy, crossing borders has become commonplace. Reaching customers in more remote locations and sourcing the procurement of product from multiple vendors or locations has increased the cost of transporting products. As the world becomes smaller, the team tasked with maintaining logistics needs to respond faster and more cost-effectively. Global natural disasters and other dangers show the vulnerability of the global supply chain. Despite these challenges, the transportation part of the supply chain, in particular, has to solve the problems that arise in order to keep factories running and customers supplied. Executive Decisions

The following examples are issues that key executives face: •

How can I manage my logistics network in a holistic fashion?

•

How can I minimize the risk factors throughout my supply chain?

•

How can I reduce my operational costs and better understand transportation costs at the customer level?

•

How can I ensure best possible usage of my assets? How do I ensure high customer service levels and responsiveness to unexpected supply chain events?

•

How do I ensure I am compliant with all the varying regulations and compliance policies?

Transportation management is never an isolated process. Rather, it is always integrated into other business processes. If transportation management is poorly organized, this may have a negative impact on related business processes, for example manufacturing or distribution.

Evolution of Transportation Management at SAP E xten d in g the S cope o f O ur Tra ns p o rta tio n S olution F re ig h t F o rw a rd e r / 3P L / LSP T ra n s p o rta tio n Focus

c

.2 ft %

<0

o ■ac 2o

.5 co

o.E

.0 £

a-

IS c t0 ■=

c So

o

c/5

1987

O)

n c2 | < c/>

1993

i. i' Q c O Q. Q.

1o re<*> 2000

Event Management RFID Track 8. Handling Trace

2001

2004

Extended Planning & Ocean Booking

SAP TM 6.0 & 7.0 Holistic solution

2006

SAP TM

2007

8.0 Shipper focus

2010

2013+

S h ip p e r T ra n s p o rta tio n Focus

Figure 2: History of Transportation Management Functionality at SAP



SAP TM 6.0 and 7.0 evolved from the SAP Transportation Planning/Vehicle Scheduling (TPVS) solution. With SAP TM 8.0, the architecture was redesigned and execution improved. As time went on, customer feedback and lessons learned from the early implementations were used as a basis for improving the solution further. As society and business makes the move to mobile, SAP TM is evolving accordingly and now includes several mobile-friendly elements. For example, drivers can input updates using mobile devices and this information can be used to update customers of possible delays. While previous iterations included integration with Global Trade Services (GTS) and facilitated compliance, the focus more recently has been on improving the shipper and freight forwarder elements of SAP TM.

Benefits of the SAP TM System

C arriers

S e rv ice P roviders

S hippers C u sto m ers O rd er M anagem ent

■

T ransp o rt Planning

T ransp o rt Execu tio n

C h arg es & S ettlem ent

a

Track & Trace All Shipments - Monitoring and Visibility - Recognize and React to Changes

m International Trade - Global Compliance - Dangerous Goods - EWM Integration m Built-In Analytics - Ad Hoc Reporting Capabilities - Learn & Adjust m Connectivity and Integration - Web Access, B2B/EDI, Mobile

-

Plug and Play Integration to ERP

Figure 3: Functional Areas of SAP TM*•

The benefits derived from using SAP TM include the following: •

Reduced costs and improved operational performance

•

Improved carrier collaboration and resource utilization

•

Efficient, end-to-end order and process management

•

Efficient logistics and fulfillment processes

•

Improved execution visibility and responsiveness

In many cases, responsibility does not end by executing the shipment. Often, strategic contracts require that the shipments are traced, to provide visibility so that you can recognize and react to potential delays that could jeopardize customer service. This information is not often made available to ERP systems, whose concern is more finance-driven than service-driven. Depending upon the type of products that are being transported to different countries, compliance with regional regulations regarding dangerous goods needs to be reviewed and adhered to.



Analytics Very few software vendors can support the end-to-end business process seen here. Therefore, integrated analytics are necessary to provide key metrics to ensure that the targeted services levels are being achieved at a reasonable cost that supports financial objectives. These analytics should provide the key that allows your business to identify potential opportunities and adjust the business as necessary. When so many partners are involved in such a complicated business process, it is necessary to provide real-time integration and connectivity. With SAP TM, access can be achieved through tools like Web Access, B2B/EDI, and Mobile Plug and Play integration to SAP ERP. This ensures accurate and timely data to all parties, to reduce decision cycle times and improve overall visibility.

Key Features of the SAP TM System Deep Process Integration

Customer Co-Innovated

SAP

Customer Influencer Group

Best-in-Class Functionality

Order-to-Cash Procure-to-Pay Customs & Compliance Mgmt, Dangerous Goods Mgmt.

SAP TRANSPORTATION MANAGEMENT 9.3

Mobile & Web Collaboration

Figure 4: Key Features of SAP TM

With SAP TM, existing SAP ERP customers can achieve integrated order processing and management. SAP TM is delivered with out-of-the-box integration, with order-to-cash and procure-to-pay scenarios to support timely execution updates. In addition, integrated freight settlement with SAP ERP billing and invoicing is available for customers who want to increase the speed at which business process cycles are executed. Additional planning features are available to support comprehensive order management. This includes forwarding, freight (land), and booking (sea and air) order and intermodal scenarios. This integrated environment provides full document flow and order lifecycle management, as well as a centralized order data management tool for planning, tendering, and so on.

Interactive and Mass Processing With the freight planning and tendering functions, customers can perform advanced interactive planning using the transportation cockpit. This tool allows users to see order details and maps of transit routes. It allows planning to happen both interactively and via mass processing. Zero click



planning functions allow SAP ERP to take the order, and the SAP TM system goes from order to carrier tendering in one smooth process, with no user involvement. SAP TM supports both domestic and international shipment planning, including ocean freight booking and customs. Document Management SAP ERP

Order Management

Sales/Purchase Order

Delivery

Order-based Transportation Requirement

Delivery-based Transportation Requirement

Forwarding Quotation Forwarding Order

L

Execution & Subcontr.

Freight O rder/ Freight Booking

■ Charges & Settlement

Freight Settlement Document

Forwarding Settlement Document

Accounting Document

, SAP ERP

Figure 5: SAP TM End to End

As part of the integration, SAP TM supports comprehensive transportation document management. This includes document creation, status management, printing of bills of lading (road, sea, air), labels, forwarding instructions, and more. Scenarios for integrated logistics and fulfillment management with SAP ERP for integrating inbound and outbound processing are available. Your company can also tie into SAP EHS for dangerous goods handling. For international shipping, integrated customs and compliance management with SAP GTS is supported for export document and customs procedure processing. The graphic gives an overview of the SAP TM document model. Depending upon the extent of your integration and business requirements, different document types and statuses are available. Different types of transportation requests can be made on SAP TM by the execution or order management system. These could include freight forwarding orders (FWO), sales order-based transportation requirements (OTR), and delivery-based transportation requirements (DTR).



Freight Units and Freight Orders

Upon receiving transportation requirements, freight units are created and become the basic element for planning the movement of goods through the network. The freight unit is a transport unit used in planning. It could be a pallet or container, but it could also be two pallets that need to be transported together, for example for customs reasons. Freight orders will record the manual or system-generated transportation planning (intermodal) activities. These freight orders are the result of planning, consolidation of freight units on a vehicle, booked capacity, or scheduled means of transport. Once freight orders are created, carrier short-term tendering works with additional business processes (objects): request for supplier quote, response for supplier quote. Once this has been completed, transport order execution can be triggered and follow-on settlement processing can begin.

Business Scenarios Supported by SAP TM Over recent years SAP has made a significant investment in designing and building a best-in-class transportation management solution. This solution will continue to evolve as more functionality is rolled out. Currently, the solution supports the following scenarios for shippers and logistic service providers: •

Domestic Inbound Transportation

•

Domestic Outbound Transportation

•

International Inbound Logistics

•

International Outbound Transportation

•

Ocean Freight

•

Air Freight

•

Intermodal Rail Freight

•

Courier Express Parcel

Order Management The business purpose of order management is providing the ability to handle transportation requests, which are designated as requirements or demands from an ordering system. One of the major benefits of SAP TM is the ability to use the system integrated to SAP ERP as the source demand system: or use it integrated with a company's legacy order management system: or use it as a standalone planning system. So you can see the flexibility with SAP TM from an order management standpoint. If you choose to integrate with an SAP ERP system, SAP TM would be integrated by means of Process Integration (PI) interfaces. Orders and deliveries from SAP ERP can be converted into SAP TM transportation requirements automatically. If you run SAP TM as a standalone system, LSP Forwarding Order creation is either done by manual entry in the SAP TM Ul, or integrated from a customer's system via EDI. You can use the Forwarding Order Management component in SAP TM to create, edit, and confirm the forwarding orders from your ordering parties. In addition to creating the forwarding order, you can also enter the data as a forwarding quotation and send it to the ordering party. You can then create a forwarding order based on the forwarding quotation.



Transportation Planning You can use the Freight Order Management component in SAP Transportation Management (SAP TM) to create and edit freight orders and freight bookings. You use freight orders above all for land transportation and you use freight bookings for sea and air transportation. Freight orders and bookings are the result of transportation planning. One of the major benefits of SAP TM is the ability to perform advanced planning activities. Some of the tools were originally included in the Advanced Planning and Optimization solution designed by SAP. However, it was determined that a planning and execution system was desired to support transportation-related activities for several different industries. Some of the planning processes delivered with SAP TM are as follows: •

Transportation cockpit (affords visibility)

•

Planning and optimization

•

Carrier selection

•

Order tendering

Transportation Execution In addition to advanced planning capabilities in SAP TM, your organization can also gain the added benefit of integration execution activities in SAP TM. These integration tasks include the following: •

Integration with SAP Event Management (EM) for alerts and transportation tracking

•

Generation of delivery documents in SAP ERP

•

Generation of shipping documents in SAP ERP or (via interfaces) other systems

•

Integration with dangerous goods management as part of SAP Environment, Health and Safety (requires separate license)

•

Document printing

•

Integration with SAP Extended Warehouse Management (EWM)

•

Application of analytics to analyze and adjust business processes

Freight Settlement When working with customers or subcontractors it may be necessary to collect or pay fees in relation to the movement of products. With SAP TM, it is possible to introduce a settlement process in addition to planning and execution activities. The settlement process supports the following: •

Ability to define transportation charges

•

Definition of freight or forwarding agreements

•

Generation of settlement documents

•

Integration of settlement documents to SAP ERP



•

Integration of customer billing to SAP ERP


9





Unit 1 Exercise 1 Identify the Capabilities of SAP Transportation Management

Business Example

Your company is considering implementing SAP TM. It is imperative that you have the information related to the capabilities of the SAP TM solution so that you can relay the concepts to executives who will decide if this solution meets your organizational needs. 1. Describe the solution coverage of SAP Transportation Management.

2. For which two target groups does SAP TM provide scenarios?

3. What are the main business documents used in SAP TM?



Unit 1 Solution 1 Identify the Capabilities of SAP Transportation Management

Business Example

Your company is considering implementing SAP TM. It is imperative that you have the information related to the capabilities of the SAP TM solution so that you can relay the concepts to executives who will decide if this solution meets your organizational needs. 1. Describe the solution coverage of SAP Transportation Management. SAP Transportation Management (SAP TM) covers the complete transportation process from order management, through freight planning and tendering, freight execution and monitoring, to freight settlement. Additionally, SAP TM is supplemented by features from analytics and reporting, event management, import/export, dangerous goods and compliance, and output management._________________________________________________________________ 2. For which two target groups does SAP TM provide scenarios? Shippers and Logistics Service providers (LSPs)_____________________________________ 3. What are the main business documents used in SAP TM? In Order Management for Shippers — Order-Based Transportation Requirement, DeliveryBased Transportation Requirement. In Order Management for LSPs — Forwarding Order, Forwarding Quotation. In Transportation Planning and Execution — Freight Unit, Freight Order, Freight Booking. In Settlement for Shippers and LSPs — Freight Settlement DocumentIn Settlement for LSPs — Forwarding Settlement Document.___________________________



LESSON SUMMARY You should now be able to:

•


•


•


•


•




Unit 1 Lesson 2 Evaluating the SAP TM System Landscape

LESSON OVERVIEW In this lesson, you will learn about the components of the SAP TM environment and implementation scenarios. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


SAP TM System Architecture SA P ERP E n te rp ris e R e s o u rce M an a g e m e n t

■ ■ ■ ■

Purchasing ■ Sales ■ Inventory Management ■ Manufacturing SA P CRM C u s to m e r R elation. Mgm t.

S u p p ly C hain E x e c u tio n P la tfo rm

■ Sales Order Mgmt. ■ Claims Management ■ Call Center Mgmt. SAP SRM S u p p lier R elatio n sh ip Mgm t.

SA P TM Tra ns p o rta tio n M anagem ent /

GIS/M aps

SA P EW M E xten d ed W a re h o u s e M an a g e m e n t

SAP SCM Su p p ly C hain M gm t.

Demand Planning Order Promising & Fulfillment Transportation Capacity Planning SAP B u s in essO b jects G lobal T rade S e rv ice s

Strategic Vendor Mgmt. M obile D ev ic es

Human Resource Planning Financials Environment, Health & Safety Service & Asset Management

i

SAP EM E ven t M a n a g e m e n t

[j ________________1________________ |

SAP N e tW e a v e r

Customs Mgmt. Com pliance Mgmt. SAP Rail C ar Mgm t.

Figure 6: SAP Solutions for Transportation And Logistics

A full SAP solution architecture for the transportation and logistics Industries as well as SCM execution would consist of the solutions shown here. SRM and CRM provide relationship management capabilities for partnering suppliers and customers. The solutions in this full SAP solution landscape are, in general, connected with these systems via SAP ERP. In some scenarios, SAP customers would like to integrate processes between the different solutions without using SAP ERP as a process step or system in between. In some cases, there are standard interfaces available, and in other cases, these integrated processes can be created on a project basis by using business process management (BPM) and service-oriented architecture



(SOA) solutions in the SAP solution portfolio. SAP TM in particular is designed with SOA and BPM in mind, to integrate flexibly with other SAP solutions, third-party systems, and legacy systems. SAP TM Integration Architecture

The SAP solution architecture for most of the end-to-end scenarios available at the moment for SAP TM is shown here. For many SAP customers who already have an SAP ERP system, SAP TM in combination with SAP EventManagement and GIS integration provides a solid foundation to support transportation processes already integrated in existing ERP processes. SAP Business Objects Global Trade Services, and mobile solutions, extend the transportation solution landscape by providing additional capabilities for export compliance and mobility, respectively. SAP TM can, optionally, interface with an SAP ERP system, an SAP EWM system, an SAP CRM system, an SAP Global Trade Services (GTS) system, and an external geographical information system (GIS). The Core Interface (CIF) is used for master data replication between SAP ERP and SAP TM. Process Integration (PI) is used for transactional data integration between the two systems, and the external GIS system can provide geographical mapping data for transportation routes. The Internet Graphics Service (IGS) uses this data to show the image on the screen. System Landscape

SAP TM has to be installed and executed in its own instance. This instance includes the standard SAP NetWeaver components Process Integration (PI), TM Optimizer, Internet Graphics Service (IGS), and SAP Event Management. The PI interface provides the ability to exchange transportation data with SAP or non-SAP systems. The SAP Event Management system can be deployed on either the SAP TM system, the SAP ERP system, or its own system. SAP TM can also



interface with Adobe Document Services to provide additional output functions such as Adobe Forms and printing. There is also an interface between SAP TM and the SAP BW environment. Software Component Architecture

When installing an SAP TM server, some components are prerequisites (this also applies for upgrades and support package installations). You can find the available stack(s) for installation, upgrades, and Support Package installation on SAP Service Marketplace. SAP NetWeaver (NW), SAP Business Suite Foundation (BS_FND), and SCM Basis are required for every installation of an SCM application. When these are installed, certain deployment options are possible. For SAP TM, this means it can be deployed together with SAP Event Management (SCEMSRV) on one server, although this is not absolutely necessary. During post-installations steps, it is mandatory to activate business functions for SAP TM-specific capabilities on the SCM server. In SAP Event Management it is also mandatory to activate the business function "SCM_EM_TMCONTENTOr', otherwise transportation visibility scenarios are not available in the event manager. The SCM Basis component provides many functions in the area of master data and master data integration with SAP ERP via the Core Interface (CIF). This is also used for other SCM applications like APO and EWM, but there is a specific SAP TM flavor to this master data. Most of the APO transactions will have a specific transaction code. Business Functions For Integration with SAP ERP

In SAP ERP, there are business functions that can be activated to trigger integration with SAP TM. The basic business functions are as follows:



•

LOG_TM_ORD_INT (Order Integration - New: EHP 605) - This business function allows your business to integrate purchase orders, stock transport orders, and sales orders with the TM system. This functionality allows new features to the various order types.

•

LOG_TM_IV_INT (Invoice Integration - New - EHP 604)) - This business function allows your business to create, enter, process, or display invoices that belong to documents in SAP TM.

Additional Business Functions In addition to SAP ERP, there are business functions that need to be activated in the SAP TM system as well. These enterprise business functions are as follows: •

SCM_EHS_DG_CI_1 (EH&S Services: Dangerous goods EHP 801) - Most of the APO transactions have SAP TM specific transaction codes. These transactions have additional data for TM or APO specific data has been removed.

•

SCM_EM_HIGHVOL (EM Archiving and Web Interface Improvements EHP 801) - Your business can use this feature in high volume processing and archiving.

•

SCM_EM_CONTENT01 (EM, Visibility process for external TM systems EHP 801) - This business function allows you to monitor different event handler types, for example, freight units and freight orders.

•

SCM_SCMB_TM_FND1 (Foundation of external SAP TM systems EHP 801) - This business function enables the transfer of specific customer and vendor attributes from ECC to a business partner in SCM Basis using the CIF.

•

SCM_SCMB_TR_NETWORK (Enhanced Services for Transportation Network EHP 801) - This business function enables you to improve the geographical services used in the transportation network.





Unit 1 Exercise 2 Log on to the SAP ERP and SAP TM Systems

Business Example

For project team members performing configuration, the graphical approach to interacting with the software may present some delays in painting screens. Therefore, SAP still provides an option for accessing certain transactions and configuring SAP TM using the standard SAP GUI rather than the NetWeaver Business Client. You are required to give a presentation to team members on accessing the SAP TM and SAP ERP systems using the SAP GUI. 1. To access the SAP GUI, you need to locate the necessary system IDs in your personal SAP Logon Pad. From the WTS/Cloud environment, open the SAP Logon window. 2. The SAP ERP system you will use for the duration of TM100 is ZME. Log on to system ZME using the following details: Client 800: User TM100-## (# # represents your unique number assigned for this course); Password - supplied by your instructor. The system prompts you to change your password. Enter a password of your choice, consisting of at least six alphanumeric characters. The password is case-sensitive. 3. The SAP TM system you will use for the duration of TM100 is ZMT. Repeat the procedure you have just carried out for an initial logon to ZME, substituting ZMT (SAP Transportation Management) for ZME. Log on to SAP TM using NetWeaver Business Client For many releases, the SAP GUI has been the standard user interface for all levels of business users. However, as the World Wide Web has grown in popularity, the need for a more userfriendly interface has increased. SAP’s response to this is the NetWeaver Business Client.

SAP TM uses an HTML interface instead of the SAP GUI. Therefore, you must log on to the SAP TM system using the NetWeaver Business Client.

Note: The url may have been copied to your favorites. If so, you can copy the url from there and paste it into the required field in the appropriate step of the exercise.

1.

Log on to SAP TM, client 8 0 0 , with user ID T M 1 0 0 - # # (# # was assigned to you by your instructor), and the password you reset in the preceding task.



Unit 1 Solution 2 Log on to the SAP ERP and SAP TM Systems

Business Example

For project team members performing configuration, the graphical approach to interacting with the software may present some delays in painting screens. Therefore, SAP still provides an option for accessing certain transactions and configuring SAP TM using the standard SAP GUI rather than the NetWeaver Business Client. You are required to give a presentation to team members on accessing the SAP TM and SAP ERP systems using the SAP GUI. 1. To access the SAP GUI, you need to locate the necessary system IDs in your personal SAP Logon Pad. From the WTS/Cloud environment, open the SAP Logon window. a) From the WTS or cloud, open the Start menu and choose SAP Logon. 2. The SAP ERP system you will use for the duration of TM100 is ZME. Log on to system ZME using the following details: Client 800: User TM100-## (# # represents your unique number assigned for this course); Password - supplied by your instructor. The system prompts you to change your password. Enter a password of your choice, consisting of at least six alphanumeric characters. The password is case-sensitive. a) In the SAP Logon window, highlight the row for ZME and choose Log On. Alternatively, double-click the row. b) In the Client field, enter 800. c) In the User field, enter tm io o -# # . d) In the Password field, enter the password supplied by your instructor. e) Press Enter on your keyboard or choose Enter. f) Enter and confirm a new password as prompted by the system. g) Press Enter on your keyboard, or choose Transfer. h) Make a note of your new password for future logons. 3. The SAP TM system you will use for the duration of TM100 is ZMT. Repeat the procedure you have just carried out for an initial logon to ZME, substituting ZMT (SAP Transportation Management) for ZME. Log on to SAP TM using NetWeaver Business Client For many releases, the SAP GUI has been the standard user interface for all levels of business users. However, as the World Wide Web has grown in popularity, the need for a more userfriendly interface has increased. SAP’s response to this is the NetWeaver Business Client.

SAP TM uses an HTML interface instead of the SAP GUI. Therefore, you must log on to the SAP TM system using the NetWeaver Business Client.



Note: The url may have been copied to your favorites. If so, you can copy the url from there and paste it into the required field in the appropriate step of the exercise.

1. Log on to SAP TM, client 800, with user ID tm io o -## (# # was assigned to you by your instructor), and the password you reset in the preceding task. a) In the cloud, choose Start —>All Programs —► NetWeaver Business Client 4.0. b) In the NWBC logon box, highlight the entry for

zmt

and choose Logon.

c) Enter 800 in the Client field and your user tm io o -## in the User field. d) Enter your new password and choose Log On.




•


•




Learning Assessment

1. Which of the following options are main functional areas of SAP TM? Choose the correct answers. | A Order management B Transportation planning | C Transportation execution D Charges and settlement 2. Transportation via courier parcel is not an option supported by SAP TM. Determine whether this statement is true or false. | True False 3. SAP TM must be used in conjunction with SAP ERP. Determine whether this statement is true or false. | True False 4. In SAP TM, tracking functionality is provided via integration with SAP Event Management. Determine whether this statement is true or false. | True False

0



5. The Core Interface (CIF) is important for its role in which of these processes: Choose the correct answer. | A Integrating geographical information to render maps on screen. B Integrating data from mobile apps. C Replicating master data between an SAP ERP and SAP TM system. D Logging events in the transportation process.



Learning Assessment - Answers

1. Which of the following options are main functional areas of SAP TM? Choose the correct answers. [x ] A Order management [x ] B Transportation planning

[~xj

C Transportation execution

[x ] D Charges and settlement

2. Transportation via courier parcel is not an option supported by SAP TM. Determine whether this statement is true or false. | True \x \ False

3. SAP TM must be used in conjunction with SAP ERP. Determine whether this statement is true or false. | True \x \ False

4. In SAP TM, tracking functionality is provided via integration with SAP Event Management. Determine whether this statement is true or false. [x ] True False



5. The Core Interface (CIF) is important for its role in which of these processes: Choose the correct answer. | A Integrating geographical information to render maps on screen. B Integrating data from mobile apps. |~xj C Replicating master data between an SAP ERP and SAP TM system. D Logging events in the transportation process. That's correct. The Core Interface is used for master data replication between SAP ERP and SAPTM.



Lesson 1 Identifying NetWeaver Business Client (NWBC) Components

28

Lesson 2 Configuring a Personal Object Worklist (POWL) Exercise 3: Create a Query to Filter Transportation Requirements

32 35

Lesson 3 Customizing the Screen Layout in SAP TM

39

UNIT OBJECTIVES

•

Describe the NWBC structure

•

Navigate in the NWBC

•

Describe the requirements for transportation planning

•

Create a query to filter transportation requirements

•

Describe the screen layout in TM

•

Customize the screen layout in SAP TM



Identifying NetWeaver Business Client (NWBC) Components

LESSON OVERVIEW In this lesson, we’ll take a look at interface options and at how to use SAP NetWeaver Business Client (NWBC) to navigate in the SAP TM system. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


NWBC Structure Over the last 30 years the interface to the computer has changed immensely. In the 1970s, the interface to the computer was through printed reports. These were static and often out-dated the moment they were printed. The 1980s brought the mainframe and the green screen. Everything was keyboard-driven, much of it through the use of function keys. In the early 1990s the graphical user interface (GUI) appeared, and the use of the mouse became more prominent. When the internet was made available to the public, the concept of using graphical objects rather than keystrokes or navigating through menu paths became more popular. When SAP's ERP product started to gain popularity in the 1990s, everything was menu and function key-driven. At the start of the 21st century, SAP began developing more HTML or Web like interfaces that were more intuitive for new users, replacing a standalone SAP GUI with one formed in combination with the SAP NetWeaver Business Client (NWBC). The SAP NetWeaver Business Client is an environment that hosts SAP GUIs to provide a unified environment with a more efficient, intuitive and complete user experience. Within SAP NWBC you can move seamlessly between Web Dynpro and SAP GUI transactions. For the SAP GUI to run within SAP NWBC, it must first be installed, either as part of an SAP NWBC installation or separately. SAP NWBC 4.0 is available in two versions: a desktop version and an HTML version. This session focuses mainly on the former, and this is the version we expect most of our customers to install.



M a x im iz in g y o u r u s e r s ’ p r o d u c tiv ity

M

In d iv id u a l c o n tr ib u to r w ith s tru c tu re d ta s k s ■ R o u tin e , tr a n s a c tio n a l w o rk

■ U s e s o n ly o n e o r tw o e n te r p r is e a p p lic a tio n s M a in ly w o r k s w ith s tru c tu re d d a ta ■ D e m a n d s fa s t a c c e s s S a m p le ro le s : p a y ro ll c le rk , c u s to m e r s e rv ic e re p ., fin a n c ia l a n a ly s t

Figure 9: SAP NWBC for Desktop*•

SAP NWBC targets the following business requirements: •

Intuitive, consistent and harmonized user interactions across all SAP Uls

•

High-performance desktop client for frequent, high-volume and expert tasks

•

Zero-footprint, browser client for occasional tasks and B2B / B2C scenarios

•

Quick access to data and information that is pushed to users, or pulled via search



SAP NetWeaver Business Client for Desktop

The desktop version of NWBC is aimed at the power user. It is installed on the desktop, embeds SAP GUI for Windows, and incorporates a full range of functions. It is a rich desktop client that offers a unified environment for, and a single point of entry to, SAP applications. It considers the individual contributor or employee who has structured repetitive tasks. Instead of accessing several applications, the typical user may only be accessing one or two. The transactions the individual executes are business events that impact day-to-day operations and access structured data that demands consistency. NWBC allows companies access to all kinds of data. It provides a solution for hosting classical dynpros (SAP GUIs), Web Dynpro applications, Business Server Page (BSP) pages, portal pages, and other content. You can use NWBC either with or without the portal, depending on whether you want to access ABAP back ends directly or not. NWBC also supports generic desktop functions like drag and drop, popup windows, and so on, through the utilization of the corresponding APIs. The result is an efficient, modern, and attractive client environment ideally suited to the power user. SAP NetWeaver Business Client for HTML

NWBC for HTML is a browser-based shell (available only for ABAP systems) for casual use scenarios. It requires zero installation since it uses SAP GUI for HTML. However, there are certain limitations: no search function, no overflow menu, no dropdown menus or drag and drop capability. Within this environment, all SAP GUI transactions are rendered using the SAP GUI for HTML rendering engine.


•




•




Configuring a Personal Object Worklist (POWL)

LESSON OVERVIEW This lesson looks at using personal object worklists to streamline users’ work processes and bring clear focus to relevant transportation requirements.

LESSON OBJECTIVES After completing this lesson, you will be able to: •


•


Personal Object Worklist

One of the more flexible tools available to users via NWBC is the personal object worklist. The personal object worklist provides central, personalized access to document lists. It gives users a portal-based interface that they can use to define (and optionally store) queries in a similar way they are used to from SAP ERP selection screen variants. This tool allows users to easily access queries, and create, change, delete, or categorize queries. Application-related buttons provide object-based functions. The data table can be filtered and other settings applied. Users can personalize the data table and refresh a single query or all queries. The user sees the very latest



information thanks to a high performance refreshing and caching mechanism. Updates run asynchronously and worklists remain available until results are refreshed.





Create a Query to Filter Transportation Requirements

Business Example

You have been asked to create a query for Order-Based Transportation Requirements (OTRs), for products that fall within your area of responsibility. 1. In NWBC, execute the Order-Based Transportation requirements query. 2. What is the result of the refresh?

3. Your company uses several different document types to manage various processes. Create a new query by restricting the OTRs to type TR##. Call it otr Type TR##. 4. What is the result of the steps you carried out in the previous step?



Create a Query to Filter Transportation Requirements

Business Example

You have been asked to create a query for Order-Based Transportation Requirements (OTRs), for products that fall within your area of responsibility. 1. In NWBC, execute the Order-Based Transportation requirements query. a) In NWBC, choose ERP Logistics Integration —> Worklist —> Overview Transportation Requirements . b) Choose Refresh (Refresh Current Query) above the result table or in the bottom right of the screen. 2. What is the result of the refresh? The query shows all order-based transportation requirements that have been integrated to SAPTM._____________________________________________________________________ 3. Your company uses several different document types to manage various processes. Create a new query by restricting the OTRs to type TR##. Call it OTR Type TR##. a) Choose Define New Query (on the upper right of the results table). b) In the Select Object Type field, select Order-Based Transportation Requirement. c) In the Select Existing Query as Template field, choose Order-Based Transportation Requirements - All. d) Choose Next. e) On the following screen, scroll to the top and in the OTR Type field, enter TR##. f) Scroll down and choose Next. g) Enter a description for the query as follows: OTR Type

t r ##.

h) In the Select Category field, select Order-Based Transportation Requirements. i) Select the Activate Query checkbox and choose Finish.



4. What is the result of the steps you carried out in the previous step? You have created a new query that can be executed to report on a specific order type. At the moment, the query is not returning any result. This is because no Order-Based Transportation Requirement with document type TR## has been created. These will be created in later exercises, after that the query will return those as results._____________________________




•


•




Customizing the Screen Layout in SAP TM

LESSON OVERVIEW This lesson explores the use of Floorplan Manager to customize SAP TM screens in the most effective and user friendly configuration. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Floorplan Manager Floorplan Manager (FPM) is a framework that allows you to create and configure Web Dynpro applications in Web Dynpro ABAP. You can use the FPM configuration editor to combine application-specific views of one or more business applications within a new FPM application. Application windows

FPM configuration

Floorplan application

Figure 12: Floorplan Manager - Combining Application Views

SAP TM Ul Advantages

The SAP TM Ul with NWBC provides the following advantages: •

Increased development efficiency for floorplan user interfaces - allows Uls to be created by configuration only•

•

Improved adaptation capabilities for the customer without the need to modify Web Dynpro coding



•

Increased consistency across applications by reusing generic Ul building blocks

•

The design of all cross-application components of a user interface is defined by the FPM, following the SAP user interface design guidelines

•

Users of such applications benefit from a high level of recognition, enabling them to quickly and easily familiarize themselves with new applications

•

The integration of design templates such as floorplans and generic user interface building blocks into FPM accelerates the creation of user interfaces, and ensures that the user interfaces behave consistently across different applications

•

Time-consuming user interface programming is greatly reduced

•

Simple applications are adjusted by configuring the underlying Web Dynpro components and not by additional programming

•

SAP TM standard roles are delivered as PFCG roles

•

Menu in NWBC is role-based (similar to SAP ERP and other SAP applications)

•

Personal Object Worklist (POWL) displayed under the Active Query section

•

SAP TM is designed with management by exception in mind, so the standard POWL queries are designed to push work to the user whose intervention is required in any given case

•

A user may have multiple windows open, for example, work on two forwarding orders simultaneously

•

Queries can be personalized (similar to variants in the SAP GUI)

•

No transaction codes are used in NWBC

•

Fields can be populated with default values (must be defined by the user)

•

Fields can easily be added by the user


•


•




Unit 2

Learning Assessment

1. Which elements are available in the NWBC? Choose the correct answers. | A Navigation Panel B Favorites panel | C Search Bar D List Painter 2. Which elements are available in the POWL? Choose the correct answers. | A Quick Criteria Maintenance B Personalization | C Views D Settings 3. Which of the following is true in relation to FPM? Choose the correct answers. | A Using FPM, Uls can be configured without coding. B Floorplan applications always use classical SAP GUI. | C Generic Ul building blocks can be used to configure Uls.




1. Which elements are available in the NWBC? Choose the correct answers.

|~xj A Navigation Panel |~xj B Favorites panel |~xj C Search Bar D List Painter

2. Which elements are available in the POWL? Choose the correct answers.

|~xj A Quick Criteria Maintenance |~xj B Personalization |~xj C Views |~X~| D Settings

3. Which of the following is true in relation to FPM? Choose the correct answers.

|~xj A Using FPM, Uls can be configured without coding. B Floorplan applications always use classical SAP GUI.

|~xj C Generic Ul building blocks can be used to configure Uls.



Lesson 1 Identifying the Master Data Requirements for SAP TM Exercise 4: List the Master Data Requirements for SAP TM

45 49

Lesson 2 Evaluating the Organizational Structures Used in SAP TM

65

Lesson 3 Defining a Condition Exercise 5: Display a Condition

73 77

Lesson 4 Determining a Freight Incompatibility Exercise 6: View Incompatibilities

82 85

Lesson 5 Determining a Dangerous Goods Shipping Requirement

90

UNIT OBJECTIVES

•

List the master data elements supporting the different activities in TM

•

List the master data elements that define the transportation network

•

Explain the purpose of organizational structures

•

Control outbound freight using organizational structures

•

Control Forwarding Orders (FWOs) using organizational structures

•

Evaluate an organization for planning and execution structures

•

Create an organizational structure



•

Determine the conditions used to customize a business process

•

Display a condition or restriction

•

Examine how incompatibilities can be used to control the outcome of business processes

•

View incompatibilities

•

Describe dangerous goods in terms of environment, health, and safety regulations

•

View a dangerous goods master



Unit 3 Lesson 1 Identifying the Master Data Requirements for SAP TM

LESSON OVERVIEW Master data is an integral part of any planning system. You create and maintain master data over the course of an object’s lifecycle. It offers companies consistency when executing their various business processes. In this lesson, you will learn what master data is relevant for SAP Transportation Management, and what challenges your organization may face in managing the integration of new objects needed to support the SAP TM system. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Master Data in SAP TM

The SAP TM system can perform its functions independently of the existing product, location, and partner master data. The transaction data in SAP TM can be created without existing master data (optional) in the case of third-party logistics providers (3PLs). 3PLs basically provide a service, as in the case of an ERP system, master data is not essential. Planning and execution can be performed in SAP TM with only a minimal master data set that can be created and maintained



exclusively in SAP TM. As an additional scenario, SAP TM can work with master data, customer, materials, in order to support an end-to-end scenario for a manufacturer or distributor. For ease of maintenance, an SAP TM owner may wish to create customer master data to avoid frequent unnecessary entries. In this case, the SAP TM owner may want to reuse existing master data from SAP ERP. Therefore, SAP TM offers the following choices: •

Work without certain master data elements

•

Create master data directly in SAP TM

•

Integrate existing master data from SAP ERP. (Note that SAP TM cannot integrate rate master data from SAP ERP)

ERP Master Data Relevant to SAP TM

Whenever an SAP TM system is implemented and integrated with an SAP ERP system, ERP master data needs to be synchronized and used in the SAP TM system. Some examples of business scenarios where SAP TM is integrated with the ERP system are as follows: •

Domestic/international outbound transportation In these scenarios, order integration is initiated from SAP ERP as a shipper needs to perform shipping activities with the SAP TM system. Sales order integration and delivery integration is the key to this process. Thus, master data for customers, plants, shipping points, and material master data has to be transferred to the SAP TM system from SAP ERP to support consistency between planning and execution.

•

Domestic/international inbound transportation In this scenario, TM is integrated with ERP and the process is triggered by purchase order integration. Consequently, ERP master data like vendors, plants, shipping points and material master data needs to be synchronized to plan and execute the SAP TM processes.

•

Outsourced transportation ERP order creation triggers SAP TM to perform order-based carrier selection, tendering, and execution. Consequently, the ERP system becomes the lead system for master data for locations, business partners, products, carriers, and so on.

In certain business environments, SAP TM can be implemented as a standalone system. In this case, transportation demands can be created directly within the SAP TM system. Consequently, master data can be created directly in the SAP TM system and executed in the SAP TM system. SAP Core Interface: Creating and Activating Integration Models

The Core Interface or CIF is the technology that is used to transfer the master data from ERP to TM. Master data is normally scheduled for batch transfer once a day. The transfer of master data changes can be scheduled periodically as a job. You have to define a variant (containing the target system -TM - and the selection of master data objects) for the program RCPTRAN4 (hidden behind transaction CFP1). Please note that SAP has renamed some of the master data elements in SAP TM versus the names of some objects in SAP ERP (for example, material in SAP ERP is called a product in SAP TM). Before you transfer the master-data, the following prerequisites need to be satisfied:



•

You have completed the SAP ERP system configuration to connect to the SAP TM system. This defines the specific server and client to which SAP ERP will transmit the data.

•

You have completed the SAP TM system configuration to connect to the SAP ERP system. Since SAP TM can be integrated with your SAP ERP system, SAP TM needs to know the physical location and client of the SAP ERP system to which it will transmit planning and execution data.

Integration Models

Integration models are the first step in transferring master data. These are created using transaction CFM1 (Create Integration Model) in the SAP ERP system. You typically create at least one integration model for each object and filter the objects you want to transfer to assist you in building your transportation network in SAP TM. In some cases, you create program variants of the selection. This allows your company to schedule the creation of an integration model on a daily basis and integrate any new materials with SAP TM. It also allows the two systems to be synchronized if updates have taken place in SAP ERP. Once these integration models have been created, a second background job is triggered to activate the new integration models. The activation of the integration models triggers the data transfer from SAP ERP to SAP TM. Note that master data integration only occurs in one direction, from SAP ERP to SAP TM, to ensure the execution system is still the lead system (system of record). SAP TM Additional Master Data

To support advanced planning features and ensure consistency with the execution process, SAP TM requires additional master data to support its own internal processes. The master data elements or features that support master data in SAP TM are as follows: •

Business Partners Business partners represent a person, organization, group of persons, or group of organizations in which a company has a business interest. This business object is used for a variety of business transactions. You create and manage your business partners (BPs) and the roles they assume for your company centrally. You define the general business partner data once and assign business partner roles (BP roles) to the business partner. Specific data is stored for each business partner role. In this way, you do not store redundant data, since the general data is independent of a business partner’s function or application-specific extensions. When you first create a business partner in the system, the BP role General Business Partner is automatically assigned to the business partner. In an integrated system landscape with SAP ERP and SAP TM, the ERP system is frequently the leading master data system. In this case, the customer and supplier master data is maintained in the ERP system, from where it is transferred to SAP TM as locations and business partners using the SAP Core Interface (CIF).

•

Carrier Profiles A carrier profile identifies the transportation capabilities of a carrier. Carriers are business partners with the role "Carrier". Within the carrier's profile, you can define characteristics like freight code sets, transportation lane and carrier-specific parameters, product freight groups, transportation groups, equipment groups, equipment types, and so on.•

•

Products



A product or product master allows your company to edit products that have been transferred from ERP. You can also generate new products here, but we always recommend you keep a leading system, like ERP. In an integrated system landscape with SAP ERP and SAP TM, the ERP system is frequently the leading master data system. In this case, the product master data is maintained in the ERP system, where it is managed as materials and transferred to SAP TM via the SAP Core Interface (CIF). Mass Maintenance

Mass maintenance allows your company to maintain the following objects en masse: transportation lanes, locations, products, and resources. Where-used features allow your company to find the following objects and see where they are used: calculation sheet, hierarchy, location, location/product, product, product-specific transportation lane, rates, resources, scales, transportation service provider, transportation lane, and transportation zone.



Unit 3 Exercise 4 List the Master Data Requirements for SAP TM

Business Example

Before your company implements SAP TM, you have been asked to investigate the basic master data requirements. 1. What options do you have for creating master data in SAP TM?

2. When is it mandatory to transfer master data from SAP ERP?

3. What master data can be created directly in SAP TM?

4. What master data can be transferred from SAP ERP?



Unit 3 Solution 4 List the Master Data Requirements for SAP TM

Business Example

Before your company implements SAP TM, you have been asked to investigate the basic master data requirements. 1. What options do you have for creating master data in SAP TM? Master data can be integrated from SAP ERP or can be maintained directly in SAP TM. A mixture of both approaches is also supported._______________________________________ 2. When is it mandatory to transfer master data from SAP ERP? If you want to integrate business documents from SAP ERP to SAP TM in a shipper scenario, the relevant master data first needs to be transferred to SAP TM._______________________ 3. What master data can be created directly in SAP TM? Master data relating to locations, business partners, and products (among others) can be created directly in SAP TM.______________________________________________________ 4. What master data can be transferred from SAP ERP? Master data relating to customers, vendors, plants, shipping points, and materials (among others) can be transferred from SAP ERP,__________________________________________



Transportation Network (V tO M w

o f th e T ra n sp o r ta tio n

N e tw o rk :

Transportation zones

A Transportation Network is based on ttie following main elements ■ Locations ■ Transshipmentlocations ■ Transportation lanes ■ Transportation zones

Figure 14: Transportation Network Overview

The master data in SAP TM can be described as a transportation network. To support proper transportation planning and execution, several master data elements are needed. When combined, these elements outline a transportation network comprised of the following elements: •

Locations (customers, vendors, plants, shipping points, ports, airports, hubs,...)

•

Transportation zones and zone hierarchies

•

Transportation lanes

•

Schedules

Depending on the scenarios that are implemented, the transportation network can be simple or progressively more complex.



Locations

A supply chain or network is made up of several different nodes and locations, potentially acting alone or working together. Integrated Location Types

Locations are objects that are used for further definitions, such as transportation lanes and so on. Table 1: Location Types in SAP TM You can define the following location types in SAP TM. ID

Location Type

1001

Production Plant

1002

Distribution Center

1003

Shipping Point

1010

Customer

1011

Vendor

1030

Terminal

1100

Port

1110

Airport

1120

Railway Station

1130

Container Freight Station

1140

Hub



ID

Location Type

1150

Gateway

1160

Container Yard

1170

Warehouse

1180

Carrier Warehouse

1190

Rail Junction

1191

Border Crossing Point

Location Types in the Transportation Network

If a plant, customer, or vendor is transferred from SAP ERP to SAP TM, and a transportation zone is maintained for this object, then during the transfer of master data, the following occurs: •

The plant, customer, or supplier location is created.

•

The plant, customer, or supplier location is assigned to the transportation zone in the SAP TMrelevant hierarchy.

SAP ERP master data is transferred to SAP TM using the APO Core Interface (CIF). Based on different Customizing entries, master data elements from SAP ERP are reflected in SAP TM as locations with different types. As these locations are created, a geocoder determines the geographical coordinates (longitude and latitude) from a given address. These coordinates are used to determine distances between locations. In an ERP system that is processing sales orders, situations arise when an order is created for a new customer that is a one time transaction. Transportation will have to be planned and this could cause a large amount of master data that will quickly become obsolete. One-time-ship-to locations can be created in two ways, as follows: •

Manually, by the user in the forwarding order user interface

•

Automatically (by the system), based on the address of an incoming transportation request to SAP TM

Temporary locations created in SAP TM can later be deleted in batch. An existing business partner (for example, shipper or consignee) is needed to make the association of the new address. The deletion of one-time-ship-to locations is included in the reorganization job for locations. This batch job checks for the existence of orders for this location. Only when there are no more orders, for example, sales orders, deliveries, or shipments, is this location deleted. The report for deleting locations is /SAPAPO/DELETE_LOCATIONS. Transshipment Locations and Default Routes

Transshipment locations are used for unloading goods from one vehicle resource and loading them onto another vehicle resource during the transportation process. This function is necessary when different means of transport or different transportation service providers (carriers) have to be used to execute a transportation process, for example, truck-ocean-truck; truck-rail-truck. Transshipment locations may also be used when consolidating or de-consolidating goods to be transported.



Default Routes A default route defines the sequence of stops for a given source/destination location combination. Default routes can be used in place of transshipment chains with sales orders and deliveries, forwarding orders, and forwarding quotations. Default routes can be modified manually where the desired route is different to that proposed by the system. Where no default route exists between two locations, it is possible to specify a default route type. The default route type determines the sequence of transshipment locations for a given pair of locations or, in an LCL ocean freight scenario, identifies the route for a forwarding order. You can also assign a transportation mode to your default route type to specify, for example, whether freight is to be transported by road or sea. Transportation Zones Transportation zones can dramatically reduce the effort needed to model your geographic network. Grouping locations into zones effectively reduces master data volume in the system.

Zone types ■ Direct ■ Postal Code ■ Region ■ Mixed Legend O Locations O fH ubs / Transshipment

Figure 16: Transportation Zones

Transportation zones and zone hierarchies are used to group together a number of locations, as required by transportation and logistics processes. Again, transportation zones are in turn used to define other objects such as transportation lanes that define legitimate supply routes. To improve master data maintenance, the zones are also part of a zone hierarchy. The zone hierarchy is used in functions like transshipment locations and optimizer transportation lane definitions. You can group locations into transportation zones. The system can partly transfer the properties that you assign to a transportation zone to all its locations. This function reduces the volume of master data stored in the system. Transportation zones can group locations (customers, vendors) as well as other zones. One-time locations are also included in transportation zones. Zones are included with their locations and sub-zones. The following zone types are possible: •

Direct Zone - locations are assigned directly to a zone

•

Postal Code Zone - specified by a postal code or postal code range



•

Region Zone - specified by a country or region, for example, the state of Florida in the US

•

Mixed Zone - a combination of the three other zone types

Note: If SAP ERP integration is used, then the transportation zones are automatically created from the address of the location (for example, customers, vendors, shipping points), and the location is automatically assigned to the transportation zone. Transportation zones group locations and other zones.

Transportation Zone Hierarchies

You can define the SAP TM-relevant hierarchy in Customizing. Choose Transportation Management —► Transportation Network —► Define Transportation Zone Hierarchy. The following conditions apply when you define a transportation zone hierarchy: •

You cannot assign a transportation zone to itself.

•

You cannot assign a transportation zone A to another zone B if B already contains A.

Transportation Lanes

Transportation lanes represent the relationship between two locations, two transportation zones, or a combination of locations and zones that expresses the direct reachability of the locations or of all locations within the zones for a specific means of transport. You use this business object when planning distribution and procurement between different locations. A transportation lane is required to plan tran spo rts from one location to a nother with a certain m eans o f tra n s p o rt and a certain carrier.

R epresents a direct route betw een tw o locations to tra n sp o rt fre ig h t from one location to another. Transportation lanes are typ ically m aintained on transportation zone level D efined by: ■ S ource and target locations ■ D irection ■ Available M TR C ustom er

■ C arrier per M TR

P|ant

M aintenance:

S u pp lier

■ Individual ■ M ass m aintenance

J

T ransportation Zone

Transportation Lanes

Using transportation zones as the s ta rt and /or destination considerably reduces the a m o un t of transportation lanes to m aintain. Figure 17: Transportation Lanes



A transportation lane points only in one direction. To model the reverse direction, you need to create another transportation lane. Types of Transportation Lane

Transportation lanes can be defined to run between two locations, two zones, between a location and a zone, or between a zone and itself. Information assigned to a Lane The following information is assigned to a lane: •

Source/origin and target/destination location

•

Means of transport

•

-

Validity

-

Distance/duration

-

Costs

-

Carrier selection settings

Carrier (assigned to means of transport) -

Business partner

-

Transportation costs

-

Priority

-

Continuous move

Transportation Resources

MTr ■

Method of transport

■

e.g. railcar, truck, refrigerated truck, LTL, FTL, barge, vessel

Vehicles / Resources ■

e.g. maintenance of capacities, depot locations, ...for individual vehicles

Figure 18: Mode of Transport, Means of Transport, Transportation Resources



To simplify planning (conditions), a means of transport can be assigned to a transportation mode category - road, rail, air or sea. This category is represented by the transportation mode code. Means of Transport and Transportation Resources

Means of Transport ■

represents a ‘class’ of vehicles

■

is used to define cost structures and geographical availability (via the concept of transportation lanes)

■

is used to determine whether a resource is part of your own fleet or that o f an external provider

A means of transport is used in connection with a transportation lane to define the following business rules: W here is the MTr available (from where to where)? ■

W hat are the costs for the MTr in this region/connection?

■

W hich carriers are available for the MTr in this region/connection?

■

How should carrier selection be performed for this MTr in this region/connection?

Figure 19: Means Of Transport*•

Means of transport are classes of vehicle resources, for example, a container ship or a cargo ship. You assign a means of transport to each vehicle resource. The means of transport is used to represent a “ method” of transportation such as a truck with full truck load capacity or a refrigerated truck. The means of transport are assigned to vehicle resources in SAP TM master data. In addition, the means of transport is assigned to transportation lanes. Vehicle resources are used to represent a unit of transportation and its capacity and planning parameters. A vehicle resource is independent of a particular carrier. Examples of MTrs: ship, aircraft, truck (15 to), truck (25 to). An MTr could also represent refrigerated trucks with a specific cost structure and geographic availability. Own Means of Transport

Vehicles belonging to an MTr that are flagged as “Own means of transport” have specific attributes, as follows: •

Vehicles belonging to an MTr that have the own means of transport indicator set can have a depot location. Depending on the Customizing settings, the optimizer makes sure the resource starts and ends at this depot location within one optimization run.

•

To use the own means of transport function, you have to set the indicator in the means of transport and assign a location to the resource master data.

•

In relation to planning, on completion of the freight order planned by the optimizer, the vehicle must always return to the depot location (if the indicator on the MTr is set).



Means of Transport Hierarchies

To define a means of transport hierarchy, in the SAP TM Customizing menu choose Transportation Management -> Master Data -> Transportation Network -> Maintain Means of Transport. Create a main MTr and then assign this to the sub-MTr in the Superior MTr field. Transportation Resources Vehicle Resource (Passive)

Calendar Resource for Opening Times

Vehicle Resource (Active)

Transportation Unit

Handling Resources

Figure 20: Transportation Resources

Transportation resources are instances of means of transport that allow detailed planning to take place, taking availability, suitability or various restrictions into account. Resources must be created in SAP TM. A vehicle resource always represents a specific vehicle, for example: •

Double-axis truck with maximum number of 20 pallets, 12 tons weight capacity, 37 m3.

•

Unloading forklift with a capacity of 100 tons per hour.

Calendar resources are used to model when a location is available for loading/unloading. They are assigned to a location. Handling resources specify the available capacity and the hours in which they can be operated. Resources can have different capacity dimensions, can contain shifts, and are always assigned to a means of transport. Transportation units are used to model cargo units that have to be moved by a vehicle resource. They include containers - flatbed or chassis. They can only be configured/loaded manually. Transportation Resource Capacities

A vehicle resource is an instance of a particular means of transport, or a group of identical instances of means of transport that can provide transportation services. You use the vehicle resource to map the capacity and availability of vehicles that you want to use for transportation. You can choose up to eight dimensions and units of measurement to describe



the capacity (mass and volume are predefined by default). Planning can only take the vehicle capacity into account if these correspond to the dimensions and units of measurement that you have defined in a freight unit building rule. Depending on the MTr, a vehicle resource can be modeled with or without capacity and may be 'active' or 'passive', as follows: •

Active - can move by itself.

•

Passive - must be pulled by another resource.

MTr combinations can be used to model truck and trailer combinations. Multiresources can be used to model an external fleet in one step. Compartments

Compartments can be used to indicate a division of the vehicle resource (truck) and also the trailer into smaller units. They offer the following benefits: •

Flexible and fixed compartments

•

Incompatibilities can be used to restrict certain freight units from being transported together.

The use of compartments allows you to assign dangerous goods to certain areas of the truck. In addition, use of compartments improves transportation planning for oil and gas, chemical, retail, and consumer products. Capacity constraints can be specified for compartments (for example, for trucks and trailers, these vehicle combinations are considered simultaneously). Means of Transport Combinations

A means of transport combination is an instance of a particular means of transport, or a group of identical instances of means of transport that can provide transportation services. You use this business object to map the capacity and availability of vehicles that you want to use for transportation. MTr combinations have the following attributes: •

They can be used to model a truck and trailer combination.

•

You specify the number of the objects of each MTr within the combination, for example, 1 truck and 2 trailers.

•

You specify capacities (several UoM): Maximum capacities of the combination.

•

Additional (freely definable) attributes can be used for compatibilities and incompatibilities; based on a customizable attribute definition (code + text).

•

Coupling/un-coupling durations are defined per passive MTr.

Integration of Resources into the Transportation Network

Vehicle resources are used to represent a unit of transportation as well as its capacity and planning parameters. A vehicle resource is independent of a particular carrier, but a means of transport is assigned to the resource master data to represent the means by which the transportation between locations is executed.



Schedules

Ocean Carrier Schedule

P o rt o f N ew ark

C

WESOtK EOttESS

M8

P o rt o f H am burg

—I

Figure 21: Schedules

When transporting goods from one location to another, firms don’t always have the luxury of moving the product whenever they choose. In many cases certain partners have strict schedules they must adhere to in order to make efficient use of resources, and some of these resources may be rented. In this section, we examine how TM can make use of schedules in order to deal with means of transport that operate on a strict schedule. Schedules can be created to define fixed times of departure or arrival schedules for certain means of transport, such as vessel sailing schedules or airline flight schedules where, due to the immense infrastructure requirements, capacity is limited and at a premium. Defining schedules helps determine transportation proposals and optimization. Schedules define a sequence of transportation stops such as ports, airports, or gateways that is valid for a specific period of time. Ships, trucks, or airplanes can move goods at recurring times along the whole sequence or any part of it. The movement of goods depends on the transportation duration between each of the stops as well as the cut-off times and the length of stay at each stop. As part of the schedule concept, you can use different carrier schedules and gateway schedules to define information about your stop sequence. Schedules are supported by the optimizer. A means of transport can be assigned to a schedule. Schedule types now exist to support air freight scenarios. Application of Schedules

Intensive planning is required when exporting goods to other countries using ocean or air freight. In such instances, a shipper will have to make use of a freight forwarder or contact a shipping line directly to reserve capacity on a container ship. Unlike a road-based scenario in which business partners are typically plentiful, fewer potential partners are likely to be available for ocean voyages.



When shipping product via air or ocean, you must take into account that your partners are typically renting space at a port facility. This facility is being used by many parties and options for moving product may be limited. While the road-based scenario can make use of a variety of transportation lanes due to the flexibility of the carriers, ocean and air carriers often face more competition on the one hand and more regulation on the other. This limits the flexibility for departures and arrivals. When looking at this from a transportation planning perspective, the implication is that you may need something more structured and predictable for scheduling purposes. With SAP TM, your organization can take advantage of different types of schedules to model specific departure and arrival rules suited to air and ocean shipping. Schedule Types

SAP TM allows businesses to create different schedule types to handle the multiple shipping scenarios they may encounter. Schedules can be maintained for each business partner or carrier, and can identify different loading and unloading points such as ports and airports. Carrier Schedules

Carrier schedules describe a sequence of transportation stops where the start stop and the target stop are not gateways. A gateway is a transportation hub, where freight is consolidated and deconsolidated. By specifying departure rules in carrier schedules, you can generate voyages, flights, and departures automatically. The system calculates the arrival and departure dates and times at each transportation stop in the sequence, taking into account the transit duration, cut-off times, and availability of the goods for each stop. You can then modify each generated voyage individually. In the standard SAP TM delivery, the following carrier schedules are supplied: •

Ocean Carrier Schedule: Use the ocean carrier schedule to define a standard sequence of transportation stops that are served by a ship. By specifying departure rules, you can generate voyages automatically.

•

Carrier Flight Schedule: Use the carrier flight schedule to define a standard sequence of transportation stops that are served by a plane. By specifying departure rules, you can generate flights automatically.•

•

Road Schedule: Use the road schedule to define a standard sequence of transportation stops that are served by a truck.

Gateway Schedules

Gateway schedules are schedules whose start stops and destination stops are transportation hubs (gateways), such as container freight stations (CFS). When you create a gateway schedule, you can enter a reference to a carrier schedule and transfer departure rules and voyages from the carrier schedule to the gateway schedule. (This function is based on the transportation mode and is available for the sea and air modes only.) Schedule Time Segments

When creating schedules, you first enter general data, such as the carrier, transportation mode, and the transportation group for your schedule. When creating a gateway schedule, you must



enter a reference to an existing ocean carrier schedule. If you create a master flight schedule, you can define an air cargo security status for this schedule. You enter the standard sequence of transportation stops together with the transit duration, the cutoff times, the length of stay, and so on. You can also enter a start location and end location. You enter departure rules to specify the frequency of trips from a transportation stop. You also define a time period during which the departure rule is valid. For example, you can specify that a ship sails from the port of Newark every Thursday at 3:00 pm between January 1 and June 30. If you are working with a sailing schedule and have referenced an ocean carrier schedule, you can copy the departure rules from the ocean carrier schedule. After you have created your departure rules, you can have the system automatically calculate the trips (that is, the actual departure dates/times). If you are working with a sailing schedule and have referenced an ocean carrier schedule, you can copy the trips from the ocean carrier schedule. This is valid even if you have referenced a carrier flight plan from a master flight plan.

Distance and Duration Calculation W ithout GIS (Geographical Information System)

By c o n n e c tin g the GIS, d is ta n c e and d u ra tio n tim e can be c a lc u la te d fo r each m eans o f tra n s p o rt w ith in a tra n s p o rta tio n lane u sin g e x a c t road d eta ils. j Figure 22: Distance/Duration Calculation ~

SAP TM computes the runtime lanes during optimization. Corresponding transportation lanes are generated between all locations assigned to the transportation zones. In the process, the cost information is taken from the transportation lanes maintained. The distance/duration is calculated according to the settings or taken from the transportation lane maintained. The maintained distance in the master lane includes a factor for road/street map variability. The factor is obtained from the means of transport. This factor establishes the proportion between the linear distance between two locations and the actual distance covered by the vehicle transporting goods between them. Included in the means of transport is the average speed. The runtime distance is divided by the average speed to calculate the estimated duration. You determine whether the means of transport distance is calculated by a geographical information system (GIS) by setting the corresponding indicator in the means of transport. If the indicator is not set, the aerial distance is used.



If the GIS indicator is set then the low, medium, high average speed is used. GIS systems typically categorize streets by “slow", “ medium” , or “fast” . Use Cases for GIS

There are different use cases for GIS, as follows: •

Geocoding (determine coordinates from an address for a location): This can be performed automatically when changing the address data of a location, or in background with a report.

•

Distance and duration determination between two locations: For performance reasons, distances and durations are stored in a buffer table in TM. This buffer table can be filled in batch mode with a pre-calculation report. If a distance and duration is not in the buffer table when required, it is determined via GIS integration and stored in the buffer. This could be the case with one-time locations, for example.

•

Route determination.

•

Map display: Map display is provided via SAP Visual Business.

GIS capability provides additional flexibility when integrating with GIS data providers like Navteq, ESRI and others, as follows: •

Option to use different providers per country.

•

Option to use different providers per means of transport.

The integration with GIS providers is a project activity that SAP supports with cookbooks and examples.




•


•




Unit 3 Lesson 2 Evaluating the Organizational Structures Used in SAP TM

LESSON OVERVIEW In this lesson we examine the units in the SAP TM organizational structure, and learn about the interactions and relationships between units.

At the end of this lesson, you can determine the structures of the purchasing and sales organizations, and account for the role of both in freight and forwarding orders. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•


•


•


Organizational Structures in SAP ERP The foundation of the SAP ERP system is the organizational structure that is configured in the early stages of your company's implementation of the software. All other configuration or master data is built on top of the organizational structures. Client

To understand the enterprise structure in the SAP system, familiarize yourself with the following definition. The client is a unit within an SAP ERP system. It is self-contained in legal and organizational terms. In terms of data, it has separate master records and an independent set of tables. From a business viewpoint, the client represents a corporate group, for example. The client is the highest hierarchical level in the SAP ERP system. Specifications you make or data you enter at this level apply to all company codes and all other organizational units. Therefore you do not have to enter the specifications and data in the system at client level more than once. This ensures a uniform data status. Access authorization is assigned on a client-specific basis. A user master record must be created for every user in the client in which they wish to work. If the Client field has not been pre populated, each user must specify a client key when logging on to an SAP ERP client. The client

0



key is uniquely defined in the system and is a three-digit number. In this way, the user specifies the client in which he or she wishes to work. All user input is stored and separated by client. The processing and evaluation of data is carried out on a client-specific basis.

Company Code

A company code is the smallest organizational unit of external accounting for which a complete and self-contained bookkeeping system can be replicated. This includes the entry of all events that require posting to the accounts and the creation of a complete audit trail for balance sheets and profit-and-loss statements. A company code represents an independent unit producing its own balance sheet, for example, a company within a client. You can set up several company codes in one client to keep separate sets of financial books. You can use a special Customizing function to copy a company code. In the process, company-code dependent specifications are adopted for your new company code. A company code is defined in the system by a four-character alphanumeric key that is unique in the client. Organizational units are tightly linked to each other to process the relevant data for a business area. For example, Plant 3100 is assigned to company code 3000. Company Code 3000 is assigned to controlling area 3000. Therefore, whenever a transaction involving cost occurs in plant 3100, the relevant records in controlling area 3000 are automatically updated. Valuation Areas

The valuation area is the organizational level at which material quantities and values are managed. It is essential for product costing that a valuation area exists for each plant. Within each valuation level, you can differentiate between values and quantities for valuation (inhouse production and external procurement) by using different valuation types. In Customizing for materials management, balance sheet valuation is set up at company code or valuation area level. The selection of a valuation area level automatically causes the creation of a valuation area for each plant. To use product costing and order costing, inventory must be valuated at plant level.

Organizational Data In SAP TM A variety of transportation tasks are assigned to different people in an organization. SAP TM enables you to structure these staffing concepts with the help of organizational models. Other TM concepts, such as the use of workflow mechanisms, rely on these models to assign tasks to individuals who participate in these workflows. The function of the sales organization in SAP TM is not the same as the sales organization in ERP. In ERP, the sales organization is used to combine orders and is tied to a company code for invoicing and settlement. There are no accounting settlements in SAP TM so there is no need for the sales organization to be attached to a company code.



Organizational Units*•

Figure 23: Organizational Unit Classification

SAP TM is a system especially designed for transportation. Due to the particularities of the business, TM offers a modified organizational model that is easy to maintain. The following are characteristics of organizational units in SAP TM:

•

Organizational units are used to represent the organizational structure of a company.

•

A company may be structured based on different points of view, such as sales, planning and execution, or purchasing of freight services.

•

These units also build a framework in which all relevant business processes can be processed.

•

Organizational units are used to determine responsibilities: for example, for approval processes.

•

Organizational units are used to allocate revenue and costs to different groups within a company, such as profit or cost centers.

•

Intracompany or intercompany settlement is enabled by organizational units.

•

Organizational units in SAP TM can be maintained independently of SAP ERP. The organizational structure in SAP ERP and SAP TM can be different.

•

Organizational units define the responsible persons who are allowed to see the data or to perform certain actions (authorization).

•

Organizational units can be determined automatically based on predefined conditions.

Forwarding houses can be used to represent business units (LSP) and perform all functions including sales, purchasing, planning, and execution.



Structure of Organizational Units

The organizational units in SAP TM can be divided into organizational units for sales and purchase, and organizational units for planning and execution. The hierarchical relationship of organizational units is fixed. For organizational units with a sales unit function, you can define the unit roles Organization, Office, and Group. Organizational units with the unit role Group can be assigned to organizational units with a unit role Office or Organization, and organizational units with a unit role Office to organizational units with a unit role Organization. For organizational units with a Purchasing or Planning and Execution unit function, you can only assign organizational units with a unit role Group to organizational units with a unit role Organization. Organizations and Business Documents

The selling side is responsible for the sale of services, such as organizing the necessary activities for shipment transportation. For this reason, the sales organization is indicated in the business documents forwarding documents, order-based transportation requirements, delivery-based transport requirements, and forwarding settlement documents. The purchasing side is responsible for procuring the necessary services from vendors (for example, carriers). For this reason, the purchasing organization is indicated in the business documents freight orders, freight bookings, service orders, and freight settlement documents. The sales organization would interact with the purchasing organization for executing the transportation of the undertaken shipment. This shipment is later settled using intracompany/



intercompany settlements. Thus the information regarding the relevant sales or purchasing organization will also be contained in the necessary documents. Organizational Master Data , ,

Roles

Org Structure Elements Company Code

—

TM Touch Points -►

TC M

H Booking/Billing ■ Agent

Forwarding Order

Sales Organization

■ Purchasing agent ■ Invoice Verification clerk

Purchasing

----------- ►

Organization

Freight Order/ ^ Booking _L__ Freight Unit

■ Transportation Planner ■ Truck Driver ■ Loading Clerk Warehouse Clerk

Planning and Execution Group

(TM Standalone)

+■

Freight Order/ Booking Freight Unit

Figure 25: Organizational Master Data Setup in SAP TM*•

The organizational master data setup in SAP TM is divided into a number of elements. The company code corresponds to the SAP ERP company code containing currency. The company code in TM is used in transportation charge management for invoicing and charging. The sales organization is a part of the organizational structure in SAP TM. The sales organization is used in the creation of forwarding order types, forwarding quotation types, order based and delivery based transportation requirements. The purchasing organization and planning and execution organizations are used for freight order types, freight booking types, and freight unit types. Organizational Relationships in TM

In TM, organizational units are used to represent the organizational structure of a company. Organizational structures in SAP TM are flexible. An organizational unit can have the following organizational functions in SAP TM: •

Purchasing

•

Sales

•

Planning and Execution

•

Company

•

Corporate

•

Forwarding House (representing purchasing, sales, and planning and execution)



Organization Structures

Depending on the implementation scenario, shipper or freight forwarder, a company may be structured from different points of view such as sales, planning and execution, or purchasing of freight services. These units also build a framework in which all relevant business processes are processed. Organizational units are used to determine responsibilities, for example, for approval processes. Organizational units are also used to allocate revenue and costs to different groups within a company, for example, profit or cost centers. In TM multiple sales organizations can be attached to one company code. Multiple sales offices can be attached to one sales organization, and multiple sales groups can be attached to a single sales office. TM can support multiple purchasing organizations tied to one company code. Multiple purchasing groups can be attached to one purchasing organization. Multiple planning and execution groups can be attached to one planning and execution organization in TM.

Supplier Invoicing

Integration of the purchasing organization is required for a shipper using both SAP TM and SAP ERP that buys the services of carriers. The same is relevant for logistic service providers that are subcontracting freight to external carriers. The initial integration point is during the creation of the freight agreement. A freight agreement is a long-term contract that represents the contractual relationship with a carrier from whom you are buying transportation services. A purchasing organization is required on creation of such an agreement. SAP TM generates a freight settlement document (FSD) when a freight order is shipped. The FSD is sent to SAP ERP requesting the verification of an invoice received from a supplier or carrier. When the invoice is received, SAP ERP checks it against the data from the FSD. If you perform evaluated receipt settlement, the automatically generated invoice is based on the data from the



FSD. If you use SAP ERP, you create a service master record to assign to transportation charge types. Customizing Settings

Customizing has the following settings: •

Define category and subcategory codes

•

Define and assign transportation charge types

•

Map organizational units

Customer Freight Invoicing*•

Figure 27: Customer Freight Invoicing

As part of the supported integration with TM, the integration of the sales organization is essential if an SAP ERP back end is present. In the case of an LSP using both SAP TM and SAP ERP, the sales organization is integrated at two points. The first integration point is the Forwarding Agreement in TM. A forwarding agreement is a long-term contract that represents the contractual relationship with a customer to whom you are selling transportation services. In SAP TM, a sales organization is required to create such a document. In SAP TM, you can perform forwarding settlement with your ordering parties by creating a forwarding settlement document (FWSD) and sending it to SAP ERP for posting to financials. If you use SAP ERP, Customizing has the following settings: •

Define category and subcategory codes

•

Define and assign transportation charge types

•

Map organizational units



Organizational Planning and Execution Structures Planning and execution organizational structures are responsible for the planning and execution of freight orders. They play an important role in LSP scenarios in which different organizational units have to work together. You use the Interaction Between Organizational Units function to model how organizational units interact with each other. For example, you can model how a sales organization interacts with a planning and execution organization. Planning and Execution Group Planning and execution groups are used to define responsibilities among a planning and execution organization. Multiple groups can be assigned to a planning and execution organization. However, each planning and execution group is assigned to only one planning and execution organization. Organization Interaction Use the Interaction Between Organizational Units function to model how organizational units interact with each other. For example, you can model how a sales organization interacts with a planning and execution organization. Planning and execution groups are used to define responsibilities among a planning and execution organization. Multiple groups can be assigned to a planning and execution organization. However, each planning and execution group is assigned to only one planning and execution organization. LESSON SUMMARY You should now be able to:

•


•


•


•


•




Defining a Condition

LESSON OVERVIEW In this lesson, we examine how conditions are used in SAP TM. Conditions provide a means (of configuration) to flexibly maintain customer-specific decisions. For example, conditions can be used in the determination of business document types, the determination of a freight unit building rule, or the determination of organizational units. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Conditions Conditions Can Determine Dependent Values

•

Filtering freight units

•

Determining freight unit building rules (FUB rules)

•

Incompatibilities

•

Determining the sales organization

•

Determining transportation charge rate tables and agreements with a charge calculation rule

•

Change controller



There are o ve r 50 p re d e fin e d c o n d itio n typ es used in: ■

In c o m p a tib ilitie s

■

P rin tin g

■

A p p ro v a ls

■

C hange C o n tro lle r: T olerances

■

W ait tim e s and length o f sta y

■

L oa ding and u n lo a d in g d u ra tio n s

■

T ra n sp o rta tio n charge m anagem ent

■

C u s to m e r-s p e c ific ru le s

Figure 28: Condition Types

Conditions can be used throughout SAP TM to represent customer-specific rule-based decisions. They are based on field content which is stored in business documents. The system uses standard operators (that is, greater than, less than, equal to, and so on) to compare field values with the customer conditions in a true/false decision-making process. The values can be defined in the decision table. Using the Data Access Definition tab, you define the criteria for which you want to determine different parameters. Conditions in Use

Let's say that you want to define the freight unit building rules that the system uses when dealing with dangerous goods and with goods that are not dangerous. Basically, there are three things to consider, as follows: •

An input

•

A decision (based on the input and a condition that you have specified)

•

An output

In this example, the input value that it is important for the decision to take into account is whether or not the goods comprising the OTR or DTR are dangerous. You can define this using a data access definition. The decision itself is based on the input value and a condition. The condition is based on a condition type, and specifies what should happen in response to a specified input value. The output value is the result of the decision. In this example, it will be a specific freight unit building rule. Example

Order-based transportation requirement (OTR) TM01 includes a hazardous material. The data access definition specifies an input value for the decision table which reflects this. The condition takes the input value into consideration and outputs the appropriate freight unit building rule (FUBR).




75





Display a Condition

Business Example

Your department lead has asked you to review the conditions employed in a number of planning profiles. Display and Review Condition Types Review the standard condition types that are available so that you understand the limitless potential of applying the condition technique.

1. Using NWBC, display the standard condition types. Use the Create Condition transaction to display these condition types. 2. What condition types can be created?

3. What options are available in the Origin of Condition field?

4. Close the New Condition Definition tab. Display a Condition Now that you have reviewed the condition types, display two condition definitions.

1. Display condition MTR. 2. Which condition type does this condition reflect?

3. What is the origin of this condition?



4. What will the determined result be if the means of transport (MTr) is Z_FTL_INC?

5. Extra credit: Which data access definition does this condition use?

6. Display condition INC_FU_TGRP-CHEM. 7. Which condition type does this condition reflect?

8. What is the origin of this condition?

9. What will the determined result be if the transportation group is YTC2?

10. Extra credit: Which data access definition does this condition use?



Display a Condition

Business Example

Your department lead has asked you to review the conditions employed in a number of planning profiles. Display and Review Condition Types Review the standard condition types that are available so that you understand the limitless potential of applying the condition technique.

1. Using NWBC, display the standard condition types. Use the Create Condition transaction to display these condition types. a) In NWBC, choose the Application Administration —> General Settings —> Conditions —> Create Condition. b) Use the input help in the Condition Type field to search available options for condition types. 2. What condition types can be created? Condition types include the following - approval checks, determination, exclusion, incompatibilities, change controller, charge calculation, and so on.______________________ 3. What options are available in the Origin of Condition field? Condition Based on BRFplus Expression; Condition Based on BRFplus Decision Table; Direct Business Object Access_________________________________________________________ 4. Close the New Condition Definition tab. Display a Condition Now that you have reviewed the condition types, display two condition definitions.

1. Display condition MTR. a) Choose General Settings —*• Conditions —>Display Condition. b) Enter m t r in the Condition field and choose Continue.



2. Which condition type does this condition reflect? /SCMTMS/INC_VEHICLE_______________________________________________________ 3. What is the origin of this condition? B (Direct Business Object Access)________________________________________________ 4. What will the determined result be if the means of transport (MTr) is Z_FTL_INC? z

ftl

in c

- Because this is direct access, the condition returns the input value as the result.

5. Extra credit: Which data access definition does this condition use? /SCMTMS/VEH_RES_MTR______________________________________________________ 6. Display condition INC_FU_TGRP-CHEM. a) Choose General Settings —*■ Conditions —>Display Condition. b) Enter

i n c _ f u _ t g r p -c h e m

in the Condition field and choose Continue.

7. Which condition type does this condition reflect? Condition Type /SCMTMS/INC_FU_______________________________________________ 8. What is the origin of this condition? F (Condition Based on BRFplus Decision Table)______________________________________ 9. What will the determined result be if the transportation group is YTC2? CHEMICALS__________________________________________________________________ 10. Extra credit: Which data access definition does this condition use? Result: /SCMTMS/TOR_TRAN_GR (Hint: Choose Data Access Definition from the menu bar at the top of the screen. To return to the Display Condition screen, choose Back)._____________




•


•




Determining a Freight Incompatibility

LESSON OVERVIEW When shipping different products challenges can present themselves as to what items can and cannot be transported together. In this lesson you will learn about how incompatibilities provide a means of ensuring particular combinations (for example, productA-productB, carrierlcustomer2) do not occur. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Incompatibilities Shippers are often presented with challenges when shipping multiple products. One of these is the need to take into consideration what materials can be shipped together and what materials cannot. You use incompatibilities to define the compatibility of planning data that the system is to take into account during transportation planning, for example: •

Freight units with different incoterms must not be transported together.

•

Refrigerated goods must only be transported in appropriate means of transport (refrigerated trucks).

•

A certain means of transport cannot be unloaded at a location, since the location does not have a suitable loading ramp.•

•

A certain carrier should not be assigned to freight orders for a certain customer (blacklist).



C h ille d

Frozen

Figure 29: Compatibilities And Incompatibilities

Incompatibility Validity

When creating an incompatibility definition, one must specify a validity area. Validity areas are comprised of an incompatibility area and an incompatibility type. Incompatibility areas define where an incompatibility can be used. Four incompatibility areas exist in TM, as follows: •

Vehicle Scheduling and Routing (Optimizer and Manual Planning, Transportation Proposal)

•

Freight unit building

•

Carrier selection

•

Delivery proposals



01 - Transportation Planning

01 - Freight Unit - Freight Unit (Vehicle Level)

0 4 - Freight Unit Building

52 - Transportation Request Item

02 - Freight Unit - Freight Unit (Compartment Level)

05 - Carrier Selection

07 - Delivery Proposal

81 - Carrier Transportation Order

51 - Transportation Request Header - Transportation Request Root

8 2 -Transportation Order - Transportation Order

5 2 -Transportation Request Item-Transportation Request Item 53 - Freight Unit - Freight Unit

03 - Freight Unit - Freight Unit (Means ofTransp. Combination) 04 - Freight Unit - Vehicle Resource 0 5 - Freight Unit Transshipment Location 06 - Freight Unit - Vehicle Compartment 07 - Vehicle Resource - Vehicle Resource 0 8 -V ehicle Resource - Location (Stay Level) 09 - Vehicle Resource - Location (Loading/Unloading Level) 1 0 - Vehicle MTR Combination Location 11 - Freight Unit - Freight Booking 19 - Freight Unit Schedule | Figure 30: Incompatibility Validity"*•

Incompatibility Types

The incompatibility type defines between which two objects the incompatibility is set up. Depending on the incompatibility area, different incompatibility types are supported. Examples for incompatibility types are as follows: •

FU - FU (vehicle level)

•

FU - FU (compartment level)

•

FU - FU (MTr combination level)

•

FU - Vehicle resource

•

FU - Transshipment location

•

FU - Compartment

•

Vehicle resource - Vehicle resource

•

Vehicle resource - Location (stay)

•

Vehicle resource - Location (loading/unloading)

•

Vehicle MTr combination - Location

•

FU - Booking



View Incompatibilities

Business Example

Conditions and incompatibilities are used in the transportation planning process. During this exercise, you will review settings to define an incompatibility to prevent the consolidation of chemical products onto a full-truck-load (FTL) means of transport. 1. Display incompatibility INC_CHEMICALS_FTL. 2. How will this Incompatibility be determined? Hint: Look at the Determination Method.

In which area will this incompatibility be used? Hint: Incompatibility area.

Between which two objects has the incompatibility been defined? Hint: Incompatibility Type

What is the violation reaction during manual planning?

What is the violation reaction during automatic planning?



What is the first condition maintained in this incompatibility?

What is the second condition maintained in this incompatibility?

What does the incompatibility actually state (in layman's terms). Hint: Look at the relevant condition results.



Unit 3 Solution 6 View Incompatibilities

Business Example

Conditions and incompatibilities are used in the transportation planning process. During this exercise, you will review settings to define an incompatibility to prevent the consolidation of chemical products onto a full-truck-load (FTL) means of transport. 1. Display incompatibility INC_CHEMICALS_FTL. a) In NWBC, choose Application Administration —> Planning —> General Settings —> Incompatibility Definitions —> Display Incompatibility. If a popup message appears, choose Discard Changes. b) Enter INC_CHEMICALS_FTL in the Incompatibility field. c) Choose ^

Continue.

2. How will this Incompatibility be determined? Hint: Look at the Determination Method. Condition-Based Incompatibility_____________________________________________ In which area will this incompatibility be used? Hint: Incompatibility area. Complete VSR (VSR Opt, and Man. Ping and Transp. Proposal)_____________________

Between which two objects has the incompatibility been defined? Hint: Incompatibility Type Freight Unit — Vehicle Resource________________________________________________

What is the violation reaction during manual planning? Warning If Incompatibility Is Violated



What is the violation reaction during automatic planning? Incompatibility Must Not Be Violated

What is the first condition maintained in this incompatibility? INC_FU_TGRP-CHEM_______________________________

What is the second condition maintained in this incompatibility? MTR

What does the incompatibility actually state (in layman's terms). Hint: Look at the relevant condition results. Freight units with transportation group Chemicals must not be loaded onto means of transport Z_FTL_INC. Choose Display Condition to review the conditions from the last exercise, based on which the actual values are determined during transportation planning.




•


•




Unit 3 Lesson 5 Determining a Dangerous Goods Shipping Requirement

LESSON OVERVIEW The transportation of goods can become even more complicated if the products you are moving are hazardous and require government regulation. In this lesson, you will learn about the integration between SAP TM and SAP Environment, Health and Safety (EHS) to assist you in moving dangerous goods.

SAP Environment, Health and Safety requires a separate license. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Environment, Health and Safety Requirements Business experts can manage all their EHS topics on one platform Level C R isk M a n a a e m e n t

Enable Strategy for GOVERNANCE

S u s ta in a b ilit

()

Ability to Execute Best pracitces in Business Health & Safety

Product Safety & Stewardship

H a z a rd o u s S u b s ta n c e M anagem ent In d u stria l H ygeine & sa fe ty In c id e n t/A c c id e n t

M SD S & L ab el M anagem ent

D a n g e ro u rs G oods M anagem ent

C u s to m e r & S u p p lie r C o m m u n ic a tio n

P r e v e n tiv e & O c c u p a tio n a l M ed icin e Ot

C o m p lia n c e foi In g re d ie n ts

P ro d u c t C o m p lia n c e R e c o rd in g ^

M anagem ent

5

S u s te n a n c e & M aterial M a n a g e m e n t

fta SAT

C u tM irw

O T«< r r O M a « 0

«•»«»•»> j o c r ar**B M c rn A iU

S u p p ly C h ain C o llab o ratio n S u p p o rt fo r L eg al P ro c e s s

Environmental Perform ance^. A ir E m issio n s R e s o u rc e C o n s u m p tio n

9

W a te r E m issio n P e rm it M anagem ent W a s te M anagem ent

..III

T IC H N IO A T A *

Figure 31: SAP Environment. Health And Safety

The SAP EHS management solution is one generic platform with strong horizontal and vertical integration covering today’s and many of tomorrow's environmental health and safety



challenges. Major business areas are organized in three main pillars - Health and Safety; Product Safety and Stewardship; Environmental Performance. SAP EHS Organization in More Detail

The three main pillars of SAP EHS are as follows: •

Health and Safety -

Hazardous Substance Management Observing national regulations, defining how to manage hazardous substances on-site, and how to protect employees who handles these substances from harm, and hazardous materials log.

-

Dangerous Goods Hazardous materials moved as goods come under the dangerous goods regulation, which is a UN regulation and is applicable worldwide.

-

Incident/Accident Management Manages an incident and accident properly; triggers workflow patterns and does root cause analyses that are a must today. Integrates HR scenarios with HR master data and time management, which are the bases for efficient data flows.

•

Safety and Stewardship This includes substance management and material management, creating and administering material safety data sheets, product compliance reporting with constituent material management, customer and supplier communication as well as life-cycle assessment.

•

Environmental Performance Air emissions, resource consumption, water emissions, and waste balance.

Note: SAP Environment, Health and Safety (EHS) requires a separate license.

Integration of SAP EHS with SAP TM

When shipping dangerous/hazardous goods, the complexity of transportation management increases dramatically. If a mistake is made during the loading or shipping of materials, and an accident occurs where products are spilled or mixed, causing a hazardous situation, your company is liable for damages.



Dangerous Goods

Dangerous goods, also called hazardous materials or hazmat, are solids, liquids, or gases that can harm people, other living organisms, property, or the environment. They are often subject to chemical regulations that can differ from country to country. Dangerous goods include materials that are radioactive, flammable, explosive, corrosive, oxidizing, asphyxiating, biohazardous, toxic, pathogenic, or allergenic. Also included are physical conditions such as compressed gases and liquids or hot materials. This includes all goods containing such materials or chemicals, or that may have other characteristics that render them hazardous in specific circumstances.



Dangerous Goods Regulations and Compliance Companies are required to comply with multitude of EHS regulations.

Figure 33: Regulations and Compliance

Mitigating the risks associated with hazardous materials may require the application of safety precautions during their transport, use, storage, and disposal. Most countries regulate hazardous materials by law, and they are subject to several international treaties as well. Laws and regulations on the use and handling of hazardous materials may differ depending on the activity and status of the material. For example, one set of requirements may apply to their use in the workplace while a different set of requirements may apply to spill response, sale for consumer use, or transportation. Most countries regulate some aspect of hazardous materials. Dangerous goods are divided into classes on the basis of the specific chemical characteristics producing the risk.



Dangerous Goods Master

Figure 34: SAP TM Dangerous Goods Master Data Transfer

Through the use of Application Link Enabling (ALE) technology, you can transfer the EHS specifications tied to the material master in SAP ERP to a dangerous goods master in SAP TM. ALE is the technology for setting up and operating distributed applications. Application Link Enabling (ALE) facilitates the distributed, but integrated, installation of SAP and non-SAP systems. This involves business-driven message exchange using consistent data across loosely linked SAP applications. Applications are integrated using synchronous and asynchronous communication - not by using a central database.



Dangerous Goods Checks

fS *49 Order-Based Transportation Requirement

T '

Delivery-Based Transportation Requirement

Dangerous goods checks ■ Valid means of transport? ■ Valid quantity? ■ Valid packaging? ■ Mixed loading allowed?

.... you cho o se w h e n you w a n t to check!

Figure 35: Integrated Dangerous Goods Checks

Once your EHS data has been transferred to SAP TM, you can use this data to ensure compliance for dangerous goods shipping and handling. This could include performing dangerous goods checks at different stages of transportation planning. Performing Checks

ef

DG- Checks

a

DG- P rin t/ XML

1

ERP

&

(3) Create Sales Order x

TM asynch

__ I

(3 ) C reate

Order-Based TR

I

(4) Create FU; Js___ (5) Create Freight Orders

I (8+

10 )

Create / Update Delivery

as
gf y *1.1

er

(7) Trigger Delivery Creation

asynch

(9) Create Delivery-Based TR (11) Send Freight Order to LSP / Carrier

&

Figure 36: Dangerous Goods Checks

Not having a check in the transport requirement is only possible if either the sales order or delivery can be modified in SAP TM. In SAP TM, a logistics service provider (LSP) dealing with



dangerous goods, would require the transportation request to perform a dangerous goods check. Checks can also be carried out during freight unit building and in VSR planning. No check can currently be performed during delivery building. Freight unit or transportation order checks should be sufficient. Special packaging checks are carried out on the handling unit level in SAP ERP. Dangerous Goods Handling in SAP TM and SAP ERP

Function

ERP

TM

DG Check

X

X

DG Print Data

X

X

Template / One-Time Material

X

Mixed Loading Checks

X

Product Release Standard Check?

X

DG EHP3 Enhancements

X

C o m m en t

Different Interface for customerspecific checks

Something similar planned in TM (focus LSP) X

For example, dynamic classification, exception handling, HU packing checks

Figure 37: Comparison of DG functions in SAP ERP and SAP TM

With the integration of dangerous goods checks, companies can use advanced planning functions while maintaining compliance with hazardous goods shipping. To View the Elements of a Dangerous Goods Master

1. In NWBC, launch the SPRO transaction. 2. Choose SAP Reference IMG and then choose SAP Transportation Management —► SCM Basis —>EH&S Services —>Dangerous Goods Management —*■ Dangerous Goods Master. 3. Choose the IMG activity Specify Tab Pages in Dangerous Goods Master. 4. This is the set-up for the Dangerous Goods Master and defines the tab pages that are visible, their descriptions, and so on. Scroll down to see the full set-up. LESSON SUMMARY You should now be able to:

•


•




Unit 3

Learning Assessment

1. Master data can only be created directly in SAP TM. Determine whether this statement is true or false. | True False 2. Which of the following elements are part of the transportation network? Choose the correct answers. | A Location B Transportation Zone | C Business Partner D Transportation Lane 3. Organizational structures can be maintained directly in SAP TM. Determine whether this statement is true or false. | True False 4. The purchasing organization can be entered on which business documents? Choose the correct answers. | A Forwarding Order B Freight Unit | C Freight Order D Freight Booking



5. The sales organization can be entered on which business documents? Choose the correct answers.

□ □ □ □

A Forwarding Order B Freight Unit C Freight Order D Freight Booking

6. Only one planning and execution group can be assigned to any planning and execution organization. Determine whether this statement is true or false.

□ □

True False

7. Which of the following best describes the use of conditions in SAP TM? Choose the correct answer.

□ □ □ □

A Conditions are a way of setting up rules that the system takes into account when planning. B Conditions refer to specific, one-time customer requirements in relation to how an individual delivery is handled. C Conditions refer to the handling requirements of specific materials. D Conditions refer to the guidelines that operators (drivers) must adhere to when delivering in particular transportation zones.

8. This is a possible scenario for the use of incompatibilities in SAP TM: A driver for carrier A is careless in his delivery of goods to customer B. The customer makes a complaint to the shipper and says carrier A should not be used for future deliveries. The shipper or freight forwarder sets up an incompatibility in SAP TM that automatically prevents the carrier being assigned future deliveries to this customer. Determine whether this statement is true or false. | True False



9. The regulations pertaining to any hazardous material are consistent across locations, activities and lifespan. Determine whether this statement is true or false. | True False 10. A separate license for SAP EHS is required before it can be integrated with your installation of SAPTM. Determine whether this statement is true or false. | True False




1. Master data can only be created directly in SAP TM. Determine whether this statement is true or false. | True \x \ False That's correct. Master data can also be transferred from SAP ERP. 2. Which of the following elements are part of the transportation network? Choose the correct answers.

|~xj A Location |~xj B Transportation Zone C Business Partner

|~xj D Transportation Lane 3. Organizational structures can be maintained directly in SAP TM. Determine whether this statement is true or false. [x ] True False



4. The purchasing organization can be entered on which business documents? Choose the correct answers. I A Forwarding Order \x \ B Freight Unit \x \ C Freight Order

|~x]

D Freight Booking

5. The sales organization can be entered on which business documents? Choose the correct answers. [x ] A Forwarding Order B Freight Unit | C Freight Order D Freight Booking

6. Only one planning and execution group can be assigned to any planning and execution organization. Determine whether this statement is true or false. | True \x \ False

7. Which of the following best describes the use of conditions in SAP TM? Choose the correct answer. |~X~| A Conditions are a way of setting up rules that the system takes into account when planning. B Conditions refer to specific, one-time customer requirements in relation to how an individual delivery is handled. C Conditions refer to the handling requirements of specific materials. D Conditions refer to the guidelines that operators (drivers) must adhere to when delivering in particular transportation zones.



8. This is a possible scenario for the use of incompatibilities in SAP TM: A driver for carrier A is careless in his delivery of goods to customer B. The customer makes a complaint to the shipper and says carrier A should not be used for future deliveries. The shipper or freight forwarder sets up an incompatibility in SAP TM that automatically prevents the carrier being assigned future deliveries to this customer. Determine whether this statement is true or false. [x ] True False That's correct, this is a possible scenario in which the use of incompatibilities may be useful. 9. The regulations pertaining to any hazardous material are consistent across locations, activities and lifespan. Determine whether this statement is true or false. | True \x \ False That's correct. In reality, regulations may differ according to jurisdiction concerned, the status of the material, for example whether it is being transported or stored, and numerous other factors. 10. A separate license for SAP EHS is required before it can be integrated with your installation of SAPTM. Determine whether this statement is true or false. [x ] True False Correct. SAP EHS requires a separate license.



UNIT 4

Transportation Order M anagem ent

Lesson 1 Triggering the Transportation Management Process

105

Lesson 2 Integrating SAP ERP with SAP TM Exercise 7: Create a Sales Order

110 117

Lesson 3 Managing the Freight Forwarding Process Exercise 8: Create a Forwarding Order

129 137

Lesson 4 Booking Capacities Exercise 9: Create an Ocean Freight Booking

142 145

U N I T O B J E C T IV E S

•

Describe the transportation processes

•

List the different types of transportation order scenarios

•

Describe order management documents

•

Describe SAP ERP logistics integration

•

Create a sales order

•

Describe the integration of SAP ERP purchase orders

•

Explain the process of generating transportation requirements in SAP TM from scheduling agreements in SAP ERP

•

Describe the integration of SAP ERP deliveries

•

Describe the freight forwarding process



•

Describe the ocean freight booking process

•

Create an ocean freight booking

•

Describe an airfreight booking



Unit 4 Lesson 1 Triggering the Transportation Management Process

L E S S O N O V E R V IE W

In this lesson, you will briefly examine transportation processes and scenarios, and how transportation requirements result from the creation of specific document types in SAP ERP sales orders, purchase orders and forwarding orders. L E S S O N O B J E C T IV E S

After completing this lesson, you will be able to: •


•


•


Transportation Processes Before looking at outbound scenarios, it is important to understand the structure of SAP TM. The application is based on 9 standard processes and 8 scenarios. Here, we'll take a look at the processes.

Managing Transportation Requirements

Shipper and LSP Scenarios Outbound Domestic

Air Freight

Inbound Domestic

Ocean Freight

Outbound International


Inbound International

Courier Express Parcel Planning Freight & Selecting Carriers

Settling Forwarding Orders

Executing and Monitoring Freight

Figure 38: SAP TM Processes and Scenarios



Standard Processes

The nine standard processes that comprise SAP TM are as follows: Table 2: Standard Processes Process

Description

Managing Transportation Requirements

This may include both outbound and inbound transportation requirements.

Managing Forwarding Orders

Internal status management within SAP TM.

Managing Freight and Bookings

Ocean carrier booking for international ship ments.

Planning Freight and Selecting Carriers

Detailed delivery planning and carrier selec tion.

Tendering Freight

Carrying out the contracting process with freight carriers.

Executing and Monitoring Freight Shipments

Executing shipment and ensuring timely deliv ery.

Settling Freight Orders

Managing supplier freight invoices.

Settling Forwarding Orders

Managing customer freight invoices.

Settling Internal Charges

Creating settlements between internal organi zations in your company.

Transportation Order Scenarios The eight transportation order scenarios are as follows: •

Domestic Outbound Transportation

•

International Outbound Transportation

•

Domestic Inbound Transportation

•

International Inbound Transportation

•

Air Freight

•

Ocean Freight (LCL)

•


•

Courier Express Parcel



Order Management Documents SAP ERP

Order Management

Figure 39: Order Management Documents

The initial event that triggers the transportation management process is a transportation requirement. This document may be created from a sales order, a purchase order, a stock transport order (STO), or a scheduling agreement. It might also be an outbound or inbound delivery. All of these transportation requirements request the movement of a material. This movement may be to a customer (external) or to another facility within the same company. Integration with SAP ERP is accomplished using XML messages via SAP NetWeaver Process Integration (SAP PI) or a point-to-point communication. Logistics service providers (LSPs or 3PLs) can also receive transportation requirements. For transportation service providers (TSP) and logistics service providers (LSP), forwarding orders are created in one of two ways - manually, using the SAP TM Ul, or through integration with an external system via electronic data interchange (EDI). The following are transportation management triggers: •

Sales orders

•

Purchase orders

•

Sales order returns

•

Purchase order returns



•

Stock transport returns

•

Scheduling agreements

•

Outbound deliveries

•

Inbound deliveries

•

Forwarding orders

•

Forwarding quotations

Transportation Requests Overview Depending on the business need, there are several ways in which transportation requests can be received and created: From internal SAP ERP system: • • •

Sales O rder Purchase O rder Stock Transport Order

• •

Outbound Delivery Inbound Delivery

•

Scheduling Agreem ents

From external ordering party I customer: • •

Via X M L m essage Entered m anually

Figure 40: Transportation Requests

The TSP/LSP focus is handled in SAP TM as forwarding orders and forwarding quotations. Other transport request (TRQ) documents can be used for the LSP environment too, utilizing the smart integration concept, for example, integrating customers' purchase orders and sales orders with their SAP ERP and SAP TM systems. Forwarding orders can originate from legacy systems integrated with EDI. A manual entry option is also available. The shipper/supplier focus is fully integrated with SAP ERP (inbound and outbound). This includes sales orders (SOs), purchase orders (POs) and stock transfer orders (STOs). SO, PO and STO returns are also included. Transportation Requests

Transportation Request: Sales Order



Selected SAP ERP sales orders create outbound messages in SAP ERP that are sent to SAP TM, where an order-based transportation requirement (OTR) is created. The necessary data for the transportation of goods, such as the customer of the sales order, shipping point, material and quantities, delivery date and several other requirements for the transport are taken over into the OTR. Transportation Request: Purchase Order Selected purchase orders, using standard purchase order workflow configuration, initiate the process of sending the purchase order data to SAP TM. In SAP TM, an OTR is created. SAP TM does not differentiate between inbound and outbound transportation. Therefore, the OTR is used for both sales orders and purchase orders. Transportation Request: Scheduling Agreement Selected MM scheduling agreements and sales scheduling agreements can be integrated to create OTRs in TM also. The integration is based on delivery schedules. The relevant data, including dates and quantities, are incorporated into the OTR. Transportation Request: Delivery Deliveries can also initiate the transportation process in SAP TM. Instead of integrating the created sales order or purchase order, only the outbound or inbound delivery is sent to SAP TM. For deliveries, a delivery-based transportation requirement (DTR) is created. Transportation Request: Forwarding Order Forwarding orders can be sent to SAP TM from an external system or can be entered manually. Forwarding orders require that all data is specifically entered into the forwarding order document as no preceding document exists from where necessary information could be taken. LESSON SU M M A R Y

You should now be able to: •


•


•




Unit 4 Lesson 2 Integrating SAP ERP with SAP TM

L E S S O N O V E R V IE W

In this lesson, you learn about the integration of SAP ERP and SAP TM, specifically at how the creation of sales orders, purchase orders, stock transport orders, and deliveries trigger follow-on actions in the SAP TM system. L E S S O N O B J E C T IV E S

After completing this lesson, you will be able to: •


•


•


•


•




SAP ERP Logistics Integration

SA P TM

r

Order-Based Transportation Requirement

!

Figure 41: Transportation Requirements

The integration of SAP Transportation Management with SAP ERP is available as of SAP ERP 6.05. More integration functionality has been added with later (SAP ERP) enhancement packs. Therefore, not all functionality described in this or other training material may be available with SAP ERP 6.05. As we have seen, the transportation process in SAP TM is started with a transportation requirement document. This transportation requirement can be created out of a sales order, purchase order, or delivery created in SAP ERP. The ERP logistics integration process involves much more than just starting the transportation process in SAP TM. This functionality is explored in further training classes, and you can find additional information in SAP Help documents.



Sales Orders

When integrating ERP sales order with SAP TM, the ERP process flow is not altered (compared to an SAP ERP system not integrated with SAP TM). The sales order is created in the usual way and saved. Upon saving, the ERP system creates an XML message in the background that is sent to SAP TM. The corresponding document in SAP TM is the Order-Based Transportation Requirement (OTR). The OTR is created when the XML message arrives from the ERP system. The OTR document contains all necessary information about the sales order that is concerned with transportation, as shown in figure Sales Order Integration. When creating sales orders, we usually talk about outbound transportation. However (as noted in earlier lessons), SAP TM does not differentiate between outbound and inbound transportation. Therefore, the OTR does not state any information about outbound or inbound scenarios. The ship-to party is taken over into the OTR document as the destination location. It is therefore mandatory to transfer all master data from ERP to TM using the Core Interface (CIF) framework before integration of transactional data. The shipping point determined in ERP is used as the source location of the OTR.



SAP ERP and SAP TM Integration

P rovides additional capabilities ■ Logical & technical receiver addressing separated

■ Reliable m essage delivery ■ Technical receiver addressing by sender

Delegated receiver dete rm ina tion & m essage split possible

■ C om patible interfaces required

M essage & protocol adaptation

■ D istributed configuration at run -tim e

■ C entralized co nfig uratio n and m onitoring Figure 43: SAP ERP and SAP TM Integration

The technical communication between SAP ERP and SAP TM is achieved using Web Services / XML messages. It can be established either with a mediated communication channel using SAP NetWeaver PI as a middleware, or by a point to point connection via Web-Service ReliableMessaging (WS-RM). The advantages of both communication channels are shown in figure SAP ERP and SAP TM Integration.



Order-Based Transportation Requirements Display TM100 G roup 01 D O T 1100000409 (Sales O rder 15020)

E S I Ufa Cycle Statu*
TflOl Sales OrOe*

Execution Status (D e s r p to n i Conmjmpion Status (Dagnpeony

In Planning Executon Not Sta'ted Not Congimed

Figure 44: Order-Based Transportation Requirement

The OTR is the first document created in the SAP Transportation Management system when starting the transportation process. It is, as already mentioned, created when an XML message is received from a connected SAP ERP system. The OTR document lists all necessary information concerning the transportation of the corresponding ERP order, such as products, schedule lines, delivery dates, locations, and quantities. The OTR is read only, which means the data contained in the document may not be changed manually. The reason for this is that in a scenario that includes ERP logistics integration, the leading (information) system is SAP ERP. This means that every change to the transportation process is supposed to be triggered from the ERP order. Because the OTR cannot be edited, the user cannot initiate any follow-on activities from the document either. In order to be able to perform follow-on activities, such as planning or subcontracting, a successor document, the freight unit, is created out of the OTR document. Freight units and freight unit creation is covered in a later lesson.



L o c a t io n s o n O T R s

Display TM 100 G ro u p 01 D O T 1100000409 (S ales O rd er 15020) E *

General Oata

Locations and DateS/TimeS

Busrtess Ffcrtnec

Notes

Document Flour

E

D

Adrrw’etratrve Oata

Destination

Source Source Location

Destination Location

Dei to Pulp and VMooo

CUST00-25

Unloading Point

Address

•

Address StreetXoum Number

StreeVHousa Number

Podal Code.City

Poatai CodeOty

3$M

Jaoeon Svee 80205

Denver

Region

Region

CO

Colorado

Country

Country

US

USA

Items

rmiM Item Hterercfty

« iRProOuct K| Senedu:

1_

lie...

... ...

Buanem Transection Document l

Source Location


10

TM1

SP3100

CUSTOC-25

1...

T ill. . .

SP3100

CUST0C-2S

Date (From)

10.07.2014

Req... ... Ou...........

Con... Du

Open Ou

_

Orem Vol...

Orom

W»i

Length

Width

Ha

1

_

20

...

20

20

...

20

2 000

LB

20

...

20

20

...

20

. 2.000

LB

1

Figure 45: Locations On OTRs

As figure Locations on OTRs shows, the OTR states source and destination on header level. The OTR represents exactly one ERP order. Notice that the source location on header level is empty. This is because the shipping point in ERP is determined per item line or even per schedule line. Therefore, it can occur that one ERP order contains several item lines or schedule lines that contain different shipping points. As you can see in the item area of the OTR, the source location is filled on the item line as well as on the schedule line. However, because the ship-to party is maintained for the entire ERP sales order, the destination location can be defined on the header level of the OTR. If an OTR contains several line items with different shipping points, that is source locations, several freight units are created.





Unit 4 Exercise 7 Create a Sales Order

Review the Domestic Outbound Transportation Process Business Example

You have been asked to give a brief presentation on the outbound transportation process and demonstrate the creation of a sales order in SAP ERP and its integration in SAP TM. 1. Name the two business objects that are created in SAP TM and used to initiate planning based on integration with SAP ERP.

2. What ERP documents generate an order-based transportation requirement?

3. Which ERP documents generate a delivery-based transportation requirement?

Create a Sales Order and Review Integration with SAP TM

1. In SAP ERP, on the SAP Easy Access screen (system ZME), choose Logistics —>Sales and Distribution —>Sales —>Order —>Create (transaction VA01). 2. Use the following data:______________________________________________________ Field

Value

Order Type

ZT##

Sales Organization

3000

Distribution Channel

10

Division

00

3. On the next screen, use the following details:



Field

Value

Sold-to Party

CUST00-25

PO Number

GROUP##-25

Material

PRODTM-OO

Order Quantity

120

4. Choose Enter and then Save and make a note of the sales order number. This appears in the information bar at the bottom of the screen (TM100 Standard Order # # # # has been saved). 5. Stay in the screen and repeat steps 3-4 above to create two additional sales orders. Make a note of the new sales order number each time. Use the following details: Sold-To Party

PO Number

Material

Order Quantity

CUST00-26

GROUP##-26

PRODTM-OO

120

CUST00-28

GROUP##-28

PRODTM-OO

120

6. Choose Sales Document —> Display. 7. Make sure the number of your last sales order is entered in the Order field and choose Item Overview. 8. Select the Shipping tab. What plant will this line item ship from?

9. What is the shipping point that this line item will physically ship from?

R e v ie w O r d e r - B a s e d T r a n s p o r t a t io n R e q u ir e m e n ts

To complete your understanding of the integration between ERPand SAPTM, review the orderbased transportation requirement (OTR). 1. In NWBC, view the OTR for the sales orders that you created in ERP. 2. Select the General Data tab. What is the TM document type and what is the original ERP order type?



3. What is the life cycle status of this OTR?

4. Review the item details, what is the source location?

5. Select the Business Partner tab. Who is the consignee?



Unit 4 Solution 7 Create a Sales Order

Review the Domestic Outbound Transportation Process Business Example

You have been asked to give a brief presentation on the outbound transportation process and demonstrate the creation of a sales order in SAP ERP and its integration in SAP TM. 1. Name the two business objects that are created in SAP TM and used to initiate planning based on integration with SAP ERP. Order-based transportation requirement (OTR), and delivery-based transportation requirement (DTR).____________________________________________________________ 2. What ERP documents generate an order-based transportation requirement? Purchase order; sales order; stock transport order (different PO type).___________________ 3. Which ERP documents generate a delivery-based transportation requirement? Outbound delivery and inbound delivery.___________________________________________ Create a Sales Order and Review Integration with SAP TM

1. In SAP ERP, on the SAP Easy Access screen (system ZME), choose Logistics —>Sales and Distribution —>Sales —>Order —>•Create (transaction VA01). 2. Use the following data: Field

Value

Order Type

ZT##

Sales Organization

3000

Distribution Channel

10

Division

00

a) Enter z t ## in the Order Type field, where # # is replaced with a number provided by your instructor. The number assigned by your instructor remains valid for the entire course and must also be used in the planning profile. For example, when it is required to enter a planning profile in later exercises, you should use planning profile PLAN_3100_##, where



the number signs (#) are replaced with the same digits you are entering here for the order type. b) Enter 3000 in the Sales Organization field. c) Enter 10 in the Distribution Channel field. d) Enter 00 in the Division field. e) Choose Enter. 3. On the next screen, use the following details: Field

Value

Sold-to Party

CUST00-25

PO Number

GROUP##-25

Material

PRODTM-OO

Order Quantity

120

4. Choose Enter and then Save and make a note of the sales order number. This appears in the information bar at the bottom of the screen (TM100 Standard Order # # # # has been saved). 5. Stay in the screen and repeat steps 3-4 above to create two additional sales orders. Make a note of the new sales order number each time. Use the following details: Sold-To Party

PO Number

Material

Order Quantity

CUST00-26

GROUP##-26

PRODTM-OO

120

CUST00-28

GROUP##-28

PRODTM-OO

120

6. Choose Sales Document —> Display. 7. Make sure the number of your last sales order is entered in the Order field and choose Item Overview. 8. Select the Shipping tab. What plant will this line item ship from? Plant 3100__________________________________________________________________ 9. What is the shipping point that this line item will physically ship from? Shipping point 3100__________________________________________________________ R e v ie w O r d e r - B a s e d T r a n s p o r ta tio n R e q u ir e m e n ts

To complete your understanding of the integration between ERP and SAPTM, review the orderbased transportation requirement (OTR). 1. In NWBC, view the OTR for the sales orders that you created in ERP.



a) In NWBC, choose ERP Logistics Integration —> Worklist —> Overview Transportation Requirements. b) In the Active Queries section, on the Order-Based Transportation Requirements line, select the query OTR Type TR## that you created earlier and refresh the query. c) Find the row corresponding to a sales order you generated in the ERP system. You can see the sales order number in the Original Order column. Click the corresponding link in the Document column. 2. Select the General Data tab. What is the TM document type and what is the original ERP order type? The TM document type is TR## and the original ERP order type is ZT##._________________ 3. What is the life cycle status of this OTR? The life cycle status is In Planning.________________________________________________ 4. Review the item details, what is the source location? The source location is SP3100 (the shipping point).__________________________________ 5. Select the Business Partner tab. Who is the consignee? The consignee is the Ship-to party that you entered in the sales order.



Purchase Order

Like SAP ERP sales orders, purchase orders can also be integrated into SAP TM. The integration technology behind the integration of purchase orders is different to that behind the integration of sales orders. Instead of output management, workflow technology is used to create the XML message. However, once the XML message is created in SAP ERP it is sent to SAP TM and the same process is triggered as for sales orders. The message received in SAP TM is again used to create an order-based transportation requirement. Recall from the previous lesson that SAP TM does not differentiate between inbound and outbound transports. This is reflected in the fact that OTRs are created for both purchase orders and sales orders. As shown in figure Purchase Order Integration, for purchase orders, the source location, being the vendor, is defined on the header level of the OTR, while the destination location is defined on item level. This is because the receiving plant can differ from item line to item line while the vendor needs to be maintained on the header level. Freight unit building runs in exactly the same way as for sales orders. With purchase orders you can decide whether you want to plan based on the ordered quantities of the purchase orders, or with quantities confirmed by the vendor. In any case, the OTR is created based on the ordered quantities. However, if planning should only happen based on confirmed quantities, the freight unit is not created until the vendor's confirmation has been posted.



Stock Transport Order

Stock transport orders, being a special type of purchase order, can also be transferred to SAP TM. As with sales orders and purchase orders, stock transport orders transferred to SAP TM create an OTR document. Because stock transport orders are a special type of purchase order, the workflow functionality in SAP ERP is used to create the XML message that is transferred to SAP TM.

Integration of SAP ERP Scheduling Agreements With SAP TM A scheduling agreement is a framework purchase agreement or sales agreement under which materials are procured (on buying side). Products are delivered (on selling sides) on predetermined dates within a certain time period. The future delivery quantities and dates are entered as schedule lines in a delivery schedule. To reflect forecasted quantities and dates along with the more detailed requirements, two different types of scheduling agreement delivery schedules can be used. These are the following: •

Forecast delivery schedules (FRC schedules)

•

Just-in-time delivery schedules (JIT schedules)

The most important transactions related to scheduling agreements can be found at Logistics —>Materials Management —>Purchasing —► Outline Agreement —>Scheduling Agreement resp. Logistics —>Sales and Distribution —>Sales —*■ Scheduling Agreement. Up to release TM 9.2, integration of Materials Management (MM) and Sales and Distribution (SD) scheduling agreements were not supported by SAP TM. With SAP TM 9.3, scheduling



agreements with their delivery schedules can be transferred between SAP ERP and SAP TM. You can control the communication between the two systems by using specific time horizons. Communication is based on eSOA services, supporting both process integration (PI) based communication and web services reliable messaging (WS-RM). The integration can be triggered by the creation of, or a change of delivery schedules. On the ERP side, the relevant development has been delivered with ECC6.17 SP06. Within SAP ERP, the functionality is controlled via business function LOG_TM_SAG_INT_l. New IMG activities allow control over how delivery schedules are transferred between ERP and TM. Batch reports are available to enable the transfer of schedule lines that were not relevant at the time of the initial transfer but become relevant over time. These batch reports are as follows: •

TMINT_SAGMM_TRANSFER (for MM Scheduling Agreements)

•

TMINT_SAGSD_TRANSFER (for Sales Scheduling Agreements)

Using TM Planning and Execution Capabilities

The integration of ERP Scheduling Agreements into SAP TM is based on the exchange of delivery schedules between a customer ERP system and a supplier ERP system. The relevant schedule lines are typically transmitted using Business-to-Business (B2B) communication. Both the customer and the supplier can make use of TM planning and execution capabilities in the following context:



•

A customer can manage their inbound deliveries (purchasing) by creating corresponding transportation requirements in SAP TM. This is a MM Scheduling Agreement scenario.

•

A supplier can manage their outbound deliveries (sales) by creating corresponding transportation requirements in SAP TM. This is a Sales Scheduling Agreement scenario.

In both cases, the transportation planning is done based on the planned quantities and dates that are reflected by the FRC and JIT delivery schedules. Therefore the line items of these FRC and JIT delivery schedules are transferred from SAP ERP to SAP TM and stored as Order-Based Transportation Requirements (OTR). The subsequent planning activities result in Freight Orders (FOR) created in SAP TM. These are used to define the schedule of the deliveries that shall be created in SAP ERP. To do so, a delivery proposal for the Freight Order is created in SAP TM and sent to SAP ERP. Based on this, an inbound or outbound delivery for the scheduling agreement is created on SAP ERP side, which in turn triggers the creation of a Delivery-Based Transportation Requirement (DTR) in SAP TM.

SAP ERP Deliveries

Outbound Delivery

m

D e liv e ry -B a s e d T ra n s p o rta tio n R e q u ire m e n t

Purchase Order

Inbound Delivery D isp la y 1190000030 (O u tb o u n d D eliv ery 80120190)

Figure 49: Delivery Integration

Instead of starting the transportation process with the ERP order, the process can also be started based on a delivery. Regardless of whether an inbound delivery or an outbound delivery was sent to SAP TM, a delivery-based transportation requirement (DTR) is created.



Other than in SAP LE-TRA, inbound and outbound deliveries can be consolidated into one transport. This is because once they have been transferred to SAP TM, they are only referred to as DTRs, with no differentiation between inbound and outbound. Depending on the configuration of the SAP ERP system, the ERP order does not create a message to be sent to SAP TM, only the delivery does.

Delivery-Based Transportation Requirements

The decision about whether to start the process in SAP TM with either the ERP order or the ERP delivery depends on the customer requirements and guidelines concerning transportation planning and execution. If shipping activities other than transportation planning are involved prior to the transportation process, the process based on the ERP delivery is more likely to be used. If goods are sold with all shipping activities considered, the ERP order will be the basis for transportation planning. Assessing the DTR document as depicted in figure Delivery-Based Transportation Requirements, you can see that OTR and DTR documents do not differ significantly. In fact, like the OTR, the DTR, is also read only and must create freight units to continue the transportation process. Therefore, there is no difference in the continuation of the process between transportation requirements based on an ERP order and those based on ERP deliveries. As shown in the figure Delivery-Based Transportation requirement, both documents are capable of triggering the entire process.




•


•


•


•


•




Unit 4 Lesson 3 Managing the Freight Forwarding Process

LESSON OVERVIEW You can use the Forwarding Order Management component in SAP TM to create, edit, and confirm the forwarding orders from your ordering parties. In doing so, you can have the system determine the route and calculate the transportation charges. The orders then form the basis for transportation planning. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


Freight Forwarding Process Trucking

Warehousing

Rail/ Intermodal

Figure 51: Logistics Service Providers

Outsourcing refers to the process whereby the transportation services are performed by an external party, often referred to as logistics service provider (LSP), freight forwarder, or thirdparty logistics provider. A freight forwarder, forwarder, or forwarding agent is a person or company that organizes shipments for individuals or other companies and may also act as a carrier. A forwarder is often not active as a carrier and acts only as an agent, in other words, as a third-party (non-assetbased) logistics provider. The agent dispatches shipments via asset-based carriers and books or otherwise arranges space for these shipments. Carrier types include ships, airplanes, trucks, and



trains. Freight forwarders typically arrange cargo movements to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice, shipper's export declaration, bill of lading, and other documents required by the carrier or country of export, import, or transshipment. Much of this information is now processed in a paperless environment. Third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides a one stop shop service to its customers of outsourced (or “third-party” ) logistics services for part, or all of their supply chain management functions. Third-party logistics providers typically specialize in integrated operation, warehousing, and transportation services that can be scaled and adapted to the customer's needs based on market conditions and the demands and delivery service requirements for their products and materials.

Forwarding Orders in SAP TM

Figure 52: Forwarding Order Transportation Modes

Logistics service providers operate globally. Therefore, they also operate multiple transportation modes, as shown in figure Forwarding Order Transportation Modes. Each transportation mode has its own specific information requirements, which are entered into the forwarding order. In most cases, the mode of transportation is already predefined by the customer based on the locations involved in the transportation. The method of processing forwarding orders can also vary from customer to customer, region to region or product to product.The general forwarding order process normally starts with the receipt of customer requirements, either as an e-mail, phone call, or through direct bookings on the forwarding company's portal. A dispatcher or forwarding agent may only have 3-5 minutes to dispatch a customer requirement. Therefore, it is extremely important that this customer requirement can be processed quickly. SAP TM achieves this through the use of fast-entry screens and templates.



Information and Functionality in Forwarding Orders

As already mentioned the necessary level of information in a forwarding order is different for each transportation mode. The example in figure Forwarding Orders shows a forwarding order designed for air transportation processes. The forwarding order comprises the following information and functionality: •

Locations As with OTRs and DTRs, locations are one of the major elements of a transportation requirement. The locations define from where and to where the transport is supposed to run.

•

Dates/Times For transportation requirements, ‘when’ is almost as important as ‘where’. Therefore, dates and times are another major element of the forwarding order.

•

ULD The Unit Load Device (ULD) is specific to air transportation and, when required, the forwarding order also carries the relevant information pertaining to the air container types are supposed to be used in the transportation.

•

Business Partners The business partners details list all parties involved in the transportation process. For OTRs and DTRs, this is typically only the shipper and consignee. For LSP driven processes, the number of involved parties can be much higher, including additional parties such as preferred carrier, notify parties, payer different to ordering party, and so on. On forwarding orders, in



contrast to OTRs and DTRs, charges can be calculated for the transportation requirement. The charges calculated can be settled in ERP to create an invoice that is sent to the LSP's customer. •

Airports In air transportation, the LSP usually predefines which airports are included in the transportation. This is based on a certain rule set (called Default Route in SAP TM). In this way, the LSP defines how the goods are supposed to be routed in the transportation requirement.

•

Planning and Execution Organizations For each defined stage of the transportation requirement, the LSP can maintain which planning and execution organization within the LSP company should be concerned with the follow-up activities for this transportation requirement, such as planning, subcontracting, or execution.

•

Output The LSP can issue documents such as a House Air Waybill (used in air transportation) directly from the transportation requirement.

•

Items As with OTRs and DTRs, the forwarding order contains information about what goods are to be transported.

Shipping Type

Full Truck Load

Less than Truck Load

I Full Container 1 Load

Less than Container Load

Figure 54: Shipping Type



Shipping types define how the cargo is given to the LSP or carrier for transportation. In general, we can differentiate between two transportation scenarios: •

Consolidation is needed If consolidation is required, the customer only provides pallets to the LSP. The LSP finds other customer orders during planning in order to consolidate these orders into one container to reduce costs.

•

Consolidation is not needed If consolidation is not needed, the customer provides the LSP already with a full container which can be transported individually as it is.

Stage Definition

In most international transports, the LSP does a routing of the entire transportation prior to the planning itself. To do so, the LSP enters stages into the forwarding order on the Stages tab. Initially, when only source and destination locations are entered, there is only one stage in the forwarding order. However, the LSP can split this stage and enter intermediate stops as well as planned arrival and departure dates for each intermediate stop. These stages are propagated into the freight unit and the planning complies with it. The stages can be maintained manually or automatically, running a transportation proposal. As different items of the forwarding order may have different destination locations, the routing can also be defined for each item individually. This is done on the Ordered Route tab and not in the Item



Details section. You can switch the view of the stages between a Stage View, where the different stages are listed on header level, displaying which items are contained in each stage, and an Item View where each item is listed on header level and the routing of each item is shown below. For each stage, you can maintain the required transportation mode. The definition of the transportation mode per stage is optional but if a transportation mode is defined for a stage, the corresponding freight units stage may only be planned on freight documents and resources of this transportation mode. Furthermore stages can be classified with so called stage types. There are predefined stage types such as pre-carriage, main carriage and on-carriage as shown in the figure, Stage Definition. The transportation modes used in the stages do not have to match the transportation mode defined for the forwarding order, however, the transportation mode of the stage representing the main carriage should always match the transportation mode for the entire forwarding order. Stages can be defined as statistical stages which means that they are displayed on the forwarding order but not relevant for planning and therefore also irrelevant to the freight unit. Movement Type

The movement type describes the geographical nature of the entire transportation process, as shown in the figure. Movement Type. While the shipping type described the nature of what is going to be transported, the movement type describes the way it is going to be transported. Common examples for movement types are door-to-door or port-to-port.



When defining a movement type, the business partner entered as the shipper of the forwarding order can be used as source location of the forwarding order (that is, the location that has the business partner defined as shipper assigned). The same can be done for the destination location which is derived from the consignee of the forwarding order. Processing Forwarding Orders

Figure 57: Forwarding Quotations

An offer (that is, a quote) is made by a logistics service provider to a customer for the transportation of goods. The offer binds the logistics service provider for a certain period of time to execute a subsequent forwarding order for a certain amount of money. The quotation process in forwarding order management is seamlessly integrated with the tendering process in freight order management. Forwarding order management is comprised of functions such as creation, update, and confirmation of forwarding orders. Forwarding orders can be received electronically via EDI or can be entered through the user interface.

Third Party Integration with Forwarding Orders Forwarding orders can be received electronically and created automatically, based on the information of a B2B message. SAP TM offers a predefined interface for B2B communication between the LSP and the customer. The customer can therefore send a B2B message to the LSP’s SAP TM system, in which a forwarding order is automatically created. The B2B message contains all the fields of a forwarding order, which means that compared to the manual entry of the forwarding order document, there is no loss of information. If messages are received in a different format, they can be mapped to the standard interface using SAP PI.





Unit 4 Exercise 8 Create a Forwarding Order

Business Example

A customer calls you - a Logistics Service Provider - and requests a transport from Cologne to Hannover for 20 cartons, containing 100 pieces of a product, for next week. You create a forwarding order to capture the details of this transportation request. 1. In SAP TM in NWBC, create a new forwarding order using the following data: Field

Value

Forwarding Order Type

TO##

Transportation Mode

01- Road

Shipping Type

17 — Less-Than-Truckload

Movement Type

T2C (TM200-Direct)

Sales Organization

50001426

2. Switch to Fast Order Entry (Land), enter the following data and then press Enter on your keyboard. Field

Value

Ordering Party

EU-CUST-01

Shipper

EU-CUST-01

Consignee

EU-CUST-08

Pick-up Date

Next Monday

Delivery Date

1 day after pick-up

3. In the items table, create a package item with a product item below. Use the following data: Package Item Item Type

PKG

Package Type

Carton

Quantity + Quantity Unit of Measure

20 PC

Gross Weight + Gross Weight (UoM)

360 KG

Product Item Item Type

PRD



Product

PRODTM-IO

Quantity

100 PC

4. Save your forwarding order and make a note of the forwarding order number. 5. Switch to the Forwarding Order page to check if a stage was created for the ordered route. 6. Close your forwarding order.



Unit 4 Solution 8 Create a Forwarding Order

Business Example

A customer calls you - a Logistics Service Provider - and requests a transport from Cologne to Hannover for 20 cartons, containing 100 pieces of a product, for next week. You create a forwarding order to capture the details of this transportation request. 1. In SAP TM in NWBC, create a new forwarding order using the following data: Field

Value

Forwarding Order Type

TO##

Transportation Mode

01- Road

Shipping Type

17 — Less-Than-Truckload

Movement Type

T2C (TM200-Direct)

Sales Organization

50001426

a) In NWBC, choose Forwarding Order Management —> Forwarding Order —> Create Forwarding Order. b) Enter the data from the table. c) Choose Continue. 2. Switch to Fast Order Entry (Land), enter the following data and then press Enter on your keyboard. Field

Value

Ordering Party

EU-CUST-01

Shipper

EU-CUST-01

Consignee

EU-CUST-08

Pick-up Date

Next Monday

Delivery Date

1 day after pick-up

a) In the top right of the screen, in the Page field, enter Fast Order Entry (Land). b) Enter the data from the table and then press Enter on your keyboard.



c) Check that the source and destination locations are entered automatically, based on the business partners. (If the fields are not populated, place your cursor in the Delivery Date field and press Enter again. 3. In the items table, create a package item with a product item below. Use the following data: Package Item Item Type

PKG

Package Type

Carton

Quantity + Quantity Unit of Measure

20 PC

Gross Weight + Gross Weight (UoM)

360 KG

Product Item Item Type

PRD

Product

PRODTM-10

Quantity

100 PC

a) Scroll down to the table and choose the Insert button, and then select Package. b) Enter the appropriate data from the table (rows under Package Item). c) Select the Package line, then choose the Insert button again and select Product. (Ensure the product is created under the level of the package, not on the same level.) d) Enter the appropriate data from the table (rows under Product Item). 4. Save your forwarding order and make a note of the forwarding order number. 5. Switch to the Forwarding Order page to check if a stage was created for the ordered route. a) In the top-right of the screen, switch from Fast Order Entry (Land) to Forwarding Order to display all data. b) Open the Ordered Route tab. c) Check whether a stage was created for the ordered route with transportation mode Road, based on the movement type Direct. 6. Close your forwarding order.




•




Unit 4 Lesson 4 Booking Capacities

LESSON OVERVIEW In this lesson, you learn about how SAP TM can integrate your company's requirements for overseas shipping (by ocean or air) into your standard transportation management activities, particularly in relation to capacity booking.

p i

LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•


Ocean Freight Booking

Ocean transport has been the largest carrier of freight throughout recorded history. Although the importance of sea travel for passengers has decreased due to the rise of aviation (it is still popular for short trips and pleasure cruises), it remains hugely important for the transport of goods. Freight transport by water is cheaper than transport by air. Sea or ocean transport can be over any distance - by boat, ship, sailboat or barge, over oceans and lakes, through canals or



along rivers. Virtually any material that can be moved, can be moved by water. Despite these benefits, ocean transport is less practical in situations where a speedy delivery is paramount. When speaking of ocean transport, 'general cargo' refers to goods packaged in boxes, cases, pallets, and barrels. In the 1960s, a revolution called “containerization" altered the way that cargo was moved overseas. When a cargo is carried in more than one mode, it is said to be intermodal or co-modal. Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transport (rail, ship, and truck), without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security, reduces damages and losses, and allows freight to be transported faster. Reduced cost over road trucking is the key benefit for intracontinental use. This may be offset by quicker times for road transport over shorter distances.

Ocean Booking Process

A

C rea te /Im port O c ea n C a rrie r S chedule

►-

A

C re a te D ep artu re R ules and Voyages

.

C opy C arrier S ch ed u le to ^ S a ilin g S chedule

r

A

A ssig n C a rrie r S ch ed u le to F reight Booking

R eceive C o nfirm atio n fro m C a rrie r

xr

C onfirm Freight Booking

,

A w'

A ss ig n F reight Booking to F o rw a rd in g O rd er M ain S tage

A

Figure 60: Ocean Booking Process Steps

Planning an ocean freight movement is different to planning a domestic freight movement insofar as the resources are often more scarce and they tend to operate on fixed schedules. Schedules in SAP TM can mimic the departure days, times, and frequency of ocean-going vessels or aircraft. One step in the ocean-bound process that is different to the domestic scenario is the use of a booking. The freight booking is intended to reserve capacity on a vessel or aircraft. The difference between a (ocean) freight booking and a freight order is that a freight booking is equivalent to buying an airplane ticket, that is, you book capacity; a freight order is equivalent to checking in baggage and having it put aboard the plane. Using Templates

If bookings for the same routes are required repeatedly, it is recommended to work with templates. Templates can be used to copy a new freight booking directly from the POWL for bookings.



Unit 4 Exercise 9 Create an Ocean Freight Booking

Business Example

You need to be able to create an ocean freight booking for capacity reservation with a carrier. 1. Create a new ocean freight booking with booking type OF04. 2. Assign a schedule to your ocean booking. 3. Which data was taken over from the schedule to the ocean booking? Hint: Have a look at the General Data and Locations and Dates/Times tabs.

4. Enter capacity requirements of five 20ft containers that should be requested from the carrier. 5. Save your ocean booking. 6. What is the booking confirmation status and the confirmed container count? Hint: Go to the General Data tab.



Unit 4 Solution 9 Create an Ocean Freight Booking

Business Example

You need to be able to create an ocean freight booking for capacity reservation with a carrier. 1. Create a new ocean freight booking with booking type OF04.

a) In NWBC, choose Freight Order Management —>Ocean —*• Create Ocean Freight Booking. b) Enter booking type OF04 — Ocean Booking and choose Continue. 2. Assign a schedule to your ocean booking. a) In the main toolbar, choose Schedule —>Assign. b) On the Select Schedule Departure popup, enter the following data: Field

Value

Source Location

OF-CFS-JPYOK


OF-CFS-USLAX

c) Choose Search. d) On the result list, select a departure date 4 weeks from today and choose OK. 3. Which data was taken over from the schedule to the ocean booking? Hint: Have a look at the General Data and Locations and Dates/Times tabs. The following data was taken over: Under General Data — carrier, voyage, schedule. Under Locations and Dates/Times — pick-up location, pick-up date, cut-off dates, port of loading, sailing date, port of discharge, expected arrival date, port pick-up date, delivery location, delivery date._________________________________________________________________ 4. Enter capacity requirements of five 20ft containers that should be requested from the carrier, a) Scroll down in the Capacity Requirements area and enter the following data: Field

Value

Equipment Group

CN (Container)

Equipment Type

22GP (20ft container)

Container Count

5

5. Save your ocean booking.



6. What is the booking confirmation status and the confirmed container count? Hint: Go to the General Data tab. The booking confirmation status is Not Sent to Carrier and the confirmed container count is 0 (blank)._____________________________________________________________



Air Freight Booking Export BU Im port

BU O rigin

Shipper

o

&

—o

N uernberg P ick-U p

O

T ra n sfe r

FR A

B

ORD

C hicago T ran sfer

H

M ilw aukee

C on sig nee

•tai. v u i lo iy i

D elivery

BU = B u siness U nit A irport

Figure 62: Air Freight Booking

Like ocean freight bookings, air freight bookings can be created in SAP TM as capacity reservations with airline carriers. During transportation planning, they can be used as capacities. Before being shipped air freight may be consolidated in one of two ways, namely gateway consolidation and business unit consolidation. Gateway Consolidation In the gateway consolidation scenario, the gateway (freight forwarder) receives freight from a number of different business units or stations. The gateway is responsible for flight planning, capacity management, (de)consolidation, MAWB (Master Air Waybill) creation and also for communicating directly with the air carrier. The gateway is also responsible for transfers to/from the airport. The business units consume the booking capacity of the gateway. A business unit issues a HAWB (House Air Waybill) to the MAWB maintained at the gateway. As the gateway receives cargo from different business units, multiple HAWBs (forwarding orders) may be issued to one MAWB (air freight booking). Business Unit Consolidation With business unit consolidation, as shown in figure Air Freight Booking, the business units have direct relationships with customers and are consolidating cargo from multiple shippers. This might also include cargo from other business units. The business unit is responsible for flight planning, capacity management, consolidation, MAWB creation and communicating directly with the air carrier. There is no gateway involved (for export or import) in this scenario. In SAP TM, the MAWB is the airfreight booking and the HAWB represents a forwarding order. In this scenario, both the HAWB and MAWB are issued by the business unit. In an internal co-load scenario, a



booking (air or ocean) arranged by a certain business unit (BUI) is used by a separate, independent business unit (BU2) to ship their forwarding orders. The cargo (forwarding orders) of BU2 is co-loaded on the air freight booking of BUI. Business Process for Air Freight Booking

The following scenario describes operations that involve consolidated air freight at gateways belonging to the freight forwarding company, Interforwarders. Interforwarders is a global logistics service provider (LSP) with two subsidiaries, one in Japan and one in the United States. The Interforwarders transportation network consists of forwarding houses (stations) in Tokyo and Nagoya, as well as a central gateway and two warehouses at Narita International Airport. On the U.S. west coast, there are two warehouses and a gateway at Los Angeles International Airport, as well as forwarding houses (stations) in Phoenix, AZ and San Diego, CA. Typically, the forwarding houses have direct customer contact, whereas the central gateway serves to coordinate and consolidate all air traffic. This means that the forwarding houses have contracts such as forwarding agreements with customers (including both shippers and consignees), which stipulate charges and state how goods are to be handled. The gateways act as service centers and enter into contracts such as freight agreements with the carriers to specify optimized, consolidated cost rates and volume agreements. Air Freight Schedules

Based on former shipments and growth forecasts, freight forwarders reserve capacity for a certain route and create master flight schedules for each weekday and carrier. In this scenario, the Interforwarders gateway in Narita creates an internal master flight schedule with specific flights and transportation allocations for each carrier (in this example Japan Airlines and Qantas Airways) for specific days of the week. Once the departure rules have been assigned the daily allocations, a master flight plan is created by defining the actual departures in a certain time period, for example six months). Based on this master flight plan, an operational flight plan containing all flights with booked capacity is extracted for a shorter time period, for example, four weeks. Air Freight Bookings

Once the operational flight plan is in place, the system automatically creates freight bookings for each scheduled departure and assigns air waybill numbers from a pre-defined number range. The freight bookings can be automatically requested and confirmed by electronic data interchange or manually confirmed in the case of manual bookings. Confirmed freight bookings can be used to link forwarding orders, consolidate the cargo, and issue the necessary documents such as master air waybills and truck manifests. The transportation planner at the Narita gateway views the assignment of the forwarding order to a flight (based on the freight booking) and confirms the assignment after having checked the order for special handling requirements or other compatibility issues. The forwarding order is loosely assigned to the air freight booking appropriate to the flight. At the same time, the capacity of the reserved flight is checked along with the feasibility of meeting the required pickup times at the shipper and delivery times at the consignee. This determines the final routing selected by the gateway and the approximate timeline.



LESSON SU M M A R Y



•


•




Unit 4

Learning Assessment

1. Which processes are used in which scenarios? Choose the correct answers. | A Managing transportation requirements in shipper scenarios B Managing transportation requirements in LSP scenarios | C Managing forwarding orders in shipper scenarios D Managing forwarding orders in LSP scenarios 2. Which business documents can be created and changed manually in SAP TM? Choose the correct answer. | A Forwarding Order B Order-Based Transportation Requirements | C Delivery-Based Transportation Requirements 3. A PI system is a mandatory requirement for transferring sales orders to SAP TM. Determine whether this statement is true or false. | True False 4. Which business document is created in SAP TM based on an SAP ERP sales order? Choose the correct answer. | A None B Delivery-Based Transportation Requirement | C Order-Based Transportation Requirement



5. When integrating ERP purchase orders to SAP TM, there will always be a unique destination location on the header level of the order-based transportation requirements. Determine whether this statement is true or false.

□ □

True False

6. Which of the following are scheduling agreement delivery schedules? Choose the correct answers.

□ □ □ □

A Forecast delivery schedules (FRC schedules) B Forecast-in-time delivery schedules C Just delivery schedules D Just-in-time delivery schedules (JIT schedules)

7. ERP deliveries can be the starting point of transportation planning in SAP TM. Determine whether this statement is true or false.

□ □

True False

8. Which transportation modes are supported using forwarding orders in an LSP scenario? Choose the correct answers. | A Road B Rail | C Ocean D Air



9. Which business document is used to reserve capacity in ocean freight scenarios? Choose the correct answer. I A Freight Order B OTR | C Freight Booking D Ocean Schedule 10. Which business document is used to reserve capacity in an air freight scenario? Choose the correct answer. | A Air Waybill B Freight Booking | C MAWB




1. Which processes are used in which scenarios? Choose the correct answers.

0

A Managing transportation requirements in shipper scenarios

□ □ 0

B Managing transportation requirements in LSP scenarios C Managing forwarding orders in shipper scenarios D Managing forwarding orders in LSP scenarios

2. Which business documents can be created and changed manually in SAP TM? Choose the correct answer.

0

□ □

A Forwarding Order B Order-Based Transportation Requirements C Delivery-Based Transportation Requirements

3. A PI system is a mandatory requirement for transferring sales orders to SAP TM. Determine whether this statement is true or false. | True \x \ False That's correct. As an alternative, point-to-point integration can be set up using WSRM.



4. Which business document is created in SAP TM based on an SAP ERP sales order? Choose the correct answer.

□ □ 0

A None B Delivery-Based Transportation Requirement C Order-Based Transportation Requirement

5. When integrating ERP purchase orders to SAP TM, there will always be a unique destination location on the header level of the order-based transportation requirements. Determine whether this statement is true or false.

□ 0

True False

That's correct. The destination location is derived from the receiving plant, which can differ from item to item. 6. Which of the following are scheduling agreement delivery schedules? Choose the correct answers.

0 □ □

A Forecast delivery schedules (FRC schedules)

0

D Just-in-time delivery schedules (JIT schedules)

B Forecast-in-time delivery schedules C Just delivery schedules

7. ERP deliveries can be the starting point of transportation planning in SAP TM. Determine whether this statement is true or false. [x ] True False



8. Which transportation modes are supported using forwarding orders in an LSP scenario? Choose the correct answers. [x ] A Road \x \ B Rail

|~xj C Ocean \x \ D Air

9. Which business document is used to reserve capacity in ocean freight scenarios? Choose the correct answer. | A Freight Order B OTR

|~xj C Freight Booking D Ocean Schedule

10. Which business document is used to reserve capacity in an air freight scenario? Choose the correct answer. | A Air Waybill

|~xj B Freight Booking | C MAWB



Lesson 1 Defining the Transportation Planning Process Exercise 10: Discuss the Transportation Planning Process

159 167 167

Lesson 2 Viewing a Freight Unit Exercise 11: View a Freight Unit

171 177

Lesson 3 Building a Package

180

Lesson 4 Defining a Selection Profile

184

Lesson 5 Determining a Planning Profile

186

Lesson 6 Accessing the Transportation Cockpit Exercise 12: Access the Transportation Cockpit

190 195

Lesson 7 Generating a Transportation Proposal Exercise 13: Generate a Transportation Proposal

199 203

Lesson 8 Creating a Freight Order Exercise 14: Create a Freight Order

206 213

Lesson 9 Optimizing a Load

224



UNIT OBJECTIVES

•

Describe the business process and documentation required for transportation planning

•

View a freight unit

•

Describe package building

•

Define the requirements for a selection profile

•

Display a selection profile

•

Describe the parameters used to support planning in SAP TM

•

Display a planning profile

•

Access the transportation cockpit

•

Generate a transportation proposal

•

Describe the freight order and freight order types required for shipping

•

Describe visual planning

•

Describe load optimization



Unit 5 Lesson 1 Defining the Transportation Planning Process

LESSON OVERVIEW Your business receives orders for the products it manufactures and must then ship these products to the end customer. SAP TM has the capability to perform advance planning in order to increase your company's service level and increase profitability. In this lesson, you will gain a high level overview of the planning capabilities of SAP TM. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


Transportation Planning Document Flow

.. A ............... Freight Unit Building

X n

'

Freight Unit rte ig

Planning t

Freight Order / Freight Booking

Figure 63: Document Flow — Transportation Planning



The standard planning process begins with creating freight units out of transportation requests. Any of the following may prompt the creation of a freight unit: •

Forwarding Order (FWO)

•

Order-Based Transportation Requirement (OTR)

•

Delivery-Based Transportation Requirement (DTR)

Purpose of the Short-Cut Process

Once created, freight units are used by manual or automatic planning activities to build freight orders, which can subsequently be used for carrier selection and/or tendering processes. The purpose of the short-cut process is to skip any planning activities, because these may not be required in certain scenarios. For example, if the sales orders that are received by a company already state the required truck size, the freight order could be created directly from the transportation requirement (in this example an OTR). Technically, this is done during freight unit building by selecting a freight order type instead of a freight unit type.

S ta nd a rd p ro cess flow O rd er M an a g e m e n t

Planning

r Lk ____ 5K

>

FU

FO

<

E xecu tio n / S u b c o n tra ctin g

S h o rtcu t p ro ce ss flo w (no fre ig h t units, no planning)

O rd er M an a g e m e n t

E xecu tio n / S u b c o ntra ctin g

Figure 64: Standard And Shortcut Processes

Reasons for Transportation Planning The goal of SAP TM is to provide customers with the ability to either manually or automatically plan and optimize their transportation requests. This includes the ability to perform order consolidation where a company can group orders with the same ship-from and ship-to locations for more efficient transportation quantities. If multiple orders are being shipped within a predefined transportation zone, your company can try to efficiently schedule and route the multiple orders, and chose the appropriate carrier. The planning and selection can be determined using the most cost effective and timely route from source to destination while considering realworld constraints, costs, and penalties. The optimizer is capable of making multi-modal decisions such as sea, air, truck, train, and any combination thereof. The SAP TM planning function can also perform multi-pickup and stop options. Within the optimization algorithm is the ability to use the appropriate resources in terms of availability and capacity. The optimizer can consider incompatibility rules to restrict how freight orders are built, for example, modeling material-specific transport requirements (for example, cooled products). In addition, carrier selection allows your company to determine the right




combination of carrier assignments based on cost, equipment availability, priority, and business share goals. Order Consolidation

Order consolidation is the grouping of orders with the same ship-from and ship-to locations to create more efficient shipment quantities. The result of order consolidation is that one or more freight units are combined into one freight order. A freight unit is a business document representing the smallest possible transportation unit. Business examples of order consolidation are multiple orders that have been received over time and can be planned to be shipped together. This can be at individual line item level. Customers who make-to-order, and do not ship complete orders to their customers, may consolidate line items from multiple orders as they are produced and as their delivery-due lists are created. Transportation Planning Scenarios Less than Truck Load (LTL) US-CUST-15 Fargo, ND Planning

US-CUST-12 Bellevue, WA

~T~.

(LTL)

Interm odal

Chicago Plant, 3100

planning (Truck/Rail) Terminal 1 j

US-CUST-08 Lousiville, KY (LTL vs. FTL)

H. Full Truck Load

\ y

US-CUST-07 Evansville, IN (LTL vs. TL)

(FTL) Planning

US-CUST-10 Los Angeles, CA (Truckload)

US-CUST-09 Carrollton, KY (LTL vs. FTL)

M ulti-Stop Planning

L 1^

Dallas Crossdock US-CUST-01 US-CUST-02 US-CUST-03 US-CUST-04 Pooled Distribution US-CUST-05 US-CUST-06 Figure 65: Transportation Planning Scenarios

In SAP TM, transportation planning supports multiple variants. There are several scenarios that can be used, depending upon shipping requirements, as follows: •

Truckload shipments (FTL or LTL)

•

Intermodal (IM)

•

Direct shipments

•

Multi-stop shipments

•

Pooled distribution



Truckload Shipments (FTL or LTL)

Truckload shipments tend to be the simplest of the outbound planning scenarios. The transportation order received by the shipper is in a full truck load quantity, typically >= 35,000 lbs, or 3,660 cubic feet, or 28 - 32 pallets. The shipment is from one source to one destination, so very little route planning is necessary, with the exception of carrier selection. The ideal situation would be one product, but multiple line items can be supported. In SAP TM, when orders are entered with a weight greater than 35,000 lbs, the system can be set up to automatically plan, tender, and cost the freight order without additional user intervention. This is considered a one step process. Full Truck Load

In some industries, goods are ordered and delivered based on full truck load (FTL), because that is an inexpensive option. Typically, this is used for cheap products where the transport costs are high compared to the value of the goods. This FTL scenario is also used extensively in bulk transport. If the order is for multi-line items, SAP TM can perform truck load optimization planning for freight units. During planning, companies can perform carrier restriction (a carrier is not permitted). Additionally, if a default carrier is not maintained, companies can perform carrier selection based on lowest costs. Once planning is done, the transportation order is ready for tendering. Finally, bills of lading can be created with driver notes when the shipment is picked up. Intermodal Shipment

Intermodal freight transport involves the transportation of freight in a container or vehicle that can use multiple modes of transportation (rail, ship, and truck), without any handling of the freight itself when changing modes. This method reduces cargo handling, and so improves security, reduces damages and losses, and allows freight to be transported faster. This method reduces costs compared with road transport, and is the key advantage when deployed for intracontinental use. The cost savings may be offset by reduced timing for road transport over shorter distances, however. Intermodal transport is generally used for two purposes. One is to move goods relatively cheaply over long distances using ocean and rail transport. The second is to move goods over long distances very quickly, for example with air freight. Based on the requested delivery date, the carrier selection process determines whether to use intermodal or truck load as the means of transport. This is based on the transit time for each means of transport; intermodal container on flat car (COFC) with a 4 day transit period or TL with a 3 day transit period. Multi-stop Shipments

Multi-stop or pool shipment is the consolidation of two or more orders into one or more shipments. Instead of making several (say 5) shipments, sending a separate vehicle to each customer, your company plans to have only one vehicle visit each customer. This is a truck load (TL) process, where some planning is required to ensure no constraints are violated. Be aware that in-transit stops are limited, usually 3 or less. As transportation volumes increase, optimized multi-stop planning improves operational efficiencies. Routes can be determined by pick-up and delivery windows at both shipping and receiving locations. Pooled Shipment

Pooled distribution is prevalent in delivery/distribution scenarios, from distribution centers to customers. In the postal industry, it is also used to deliver mail to post offices or large customers





Routing, Scheduling, and Carrier Selection

The graphic Routing, Scheduling and Carrier Selection outlines this process in the following way: a freight unit X is first routed using the transportation planning function, for example, a transportation proposal. Based on this routing, three stages are created for freight unit X, as follows: •

A stage for US road pick-up transport

•

A stage for the ocean voyage

•

A stage for EU road delivery transport

Up to a certain point, these stages are planned independently of each other because different (local) planners may be responsible for scheduling each of the three stages. A freight order is created as a result of this stage. Finally, carriers are selected based on specific criteria. This is described as a three-step process but a planner can decide whether to perform planning and carrier selection in two steps or three. It is also possible for the SAP TM optimization function to plan all three steps in one run - this planning strategy is called one step optimization. Process Steps The steps involved in the process, whether one, two or three step can be described as follows: Three step 1. Determine routing (transportation proposal) 2. Vehicle scheduling and routing to create a freight order 3. Carrier selection Two step




1. Vehicle scheduling and routing to create a freight order 2. Carrier selection •

One step -

One-step optimization determines the route and plan, creates a freight order and selects a carrier

Manual and Automatic Transportation Planning*•

Figure 68: Manual And Automatic Transportation Planning

Transportation planning activities in SAP TM can be performed manually and automatically as well as interactively and in the background. For interactive planning, the central planning Ul is the transportation cockpit. Both manual and automatic planning activities are performed there based on planning strategies (for example, one-step optimization).

Transportation Planning Document Structure Planning relies on three distinct pillars, as follows: •

Master Data Master data objects such as the transportation network (locations, transshipment hierarchies, transportation zones and transportation zone hierarchies and transportation lanes) and resources are the basis for any planning activities in SAP TM.

•

Selection Settings Selection settings specify what should be planned in a certain scenario. For example, selection settings specify the geography for which a transportation plan shall be created. This could be, for example, all freight units to be transported within California.

•

Planning Settings



Planning settings specify the "how” of the process. For example, a planner may only be allowed to schedule standard trucks and not a helicopter for emergency transports. This information dictates how the actual transportation is to be carried out. Which resources can be used and at what cost is specified in the planning settings. _

Planning S ettings

Planning Profile

s

M as te r Data

Transportation Network / Geography

■ Planning strategy

■ Transportation zones

■ Planning horizon

■ Transportation lanes

Capacity Selection ■ Vehicles, trailers

■ Transshipment locations Resources

■ Freight bookings

■ Means of transport

■ Schedules

■ Vehicles, vehicle combinations

Planning Cost Settings ■ Penalty costs Optimizer Settings ■ Proposal settings

■ Schedules Constraints

jj

S electio n S ettin g s

H

Geographical Selection * Using any attribute of the locations or zones for the selection of transportation requirements ■ Considering partially-planned transportation requirements (freight units) Time-Related Selection Attributes ■ Pick-up and delivery time windows Additional Selection

■ Operating times

i Additional selection attributes

■ Handling Resources

■ Additional flexible filters

■ Runtime ■ Maximum number of transshipment locations Incompatibilities Figure 69: Relevant Objects And Settings For Planning



Unit 5 Exercise 10 Discuss the Transportation Planning Process

Business Example

You are required to deliver a presentation to colleagues on the transportation planning process, paying particular attention to rationale, and document structure. 1. What are the three pillars of planning preparation?

2. Which business documents are input for transportation planning?

3. List some steps that can be executed during transportation planning in SAP TM.

4. List some options for manual planning in SAP TM.

5. List some options for automatic planning in SAP TM.

6. Which business documents can be created as a result of transportation planning?



7. Outline a scenario in which a short-cut planning process may be employed?



Unit 5 Solution 10 Discuss the Transportation Planning Process

Business Example

You are required to deliver a presentation to colleagues on the transportation planning process, paying particular attention to rationale, and document structure. 1. What are the three pillars of planning preparation? The pillars of planning are master data, selection settings and planning settings. Master data refers to such things as transportation zones, hierarchies and lanes. Selection settings aid efficiency by narrowing the focus of any planning activity. Planning settings specify the details of how a transportation activity is to be carried out.___________________________________ 2. Which business documents are input for transportation planning? Freight units______________________________________________________ 3. List some steps that can be executed during transportation planning in SAP TM. Routing, Scheduling, Means of Transport Selection, Carrier Selection_________ 4. List some options for manual planning in SAP TM. Drag and Drop, Assignment via Buttons. Map-Based Planning, Mouseless Planning via Command Line________________________________________________________________ 5. List some options for automatic planning in SAP TM. Optimizer Planning (VSR), Transportation Proposal________________________ 6. Which business documents can be created as a result of transportation planning? Freight Orders. Freight Bookings_______________________________________ 7. Outline a scenario in which a short-cut planning process may be employed? Shortcuts may be employed where some or all planning activities are not required due to the information being already available. For example, a sales order that includes details on the required truck size means that planning is not required in relation to vehicle size.___________




•




Unit 5 Lesson 2 Viewing a Freight Unit

LESSON OVERVIEW This lesson will explain the role of the freight units and how they are created out of transportation requirements such as forwarding orders or order-based/delivery-based transportation requirements. LESSON OBJECTIVES After completing this lesson, you will be able to:

•

View a freight unit

Freight Units in Planning

i

................... ................. . .

Freight Unit Building

iT

—

i ...

Freight Unit

Figure 70: Document Flow — Freight Unit Building



The figure Document Flow — Freight Unit Building shows where the activities outlined in this lesson occur in the overall document flow. Purpose of Freight Units

Freight Unit 1

Sales Order / Order-Based TRQ

Dest. Loc. CUST00-16 Delivery Nov 01

Ship-to party

CUST00-16

Material

Quantity/Date

Item 10 PROD01 Item

Item 10 PROD01

20 PC

Item 20 PROD02 20 PC

20 PC

Schedule line 1 Nov 01

20 PC Freight Unit 2

Item 20 PROD02

50 PC

Schedule line 1 Nov 01

20 PC

Schedule line 2 Jan 01

30 PC

mm*

Dest. Loc. CUST00-16 Delivery Jan 01 Item 10 PROD02 30 PC

Figure 71: Purpose Of Freight Units

A sales order originating in SAP ERP will usually comprise a number of different items with different schedule lines. This may be because the customer requires the goods at different points in time, or because of some other specific issue of compatibility or timing. For example, let's assume a retailer orders ice-cream and milk in bulk quantities from its supplying dairy. Because of different temperature requirements these cannot be shipped in the same truck. Furthermore, if the quantities (by schedule line) exceed a truck capacity, the schedule lines may need to be split because of capacity considerations as well.



Freight Units

Freight units are: ■

A set of goods that can be transported together

■

Used to merge items that can be transported together

■

The smallest unit of freight

Figure 72: Freight Units

A freight unit is an object in SAP TM that groups items that are transported together. Freight units can be created per item and schedule line, but freight units can also group (consolidate) different items if these have similar characteristics with respect to their transportation options. The same applies to forwarding orders and delivery-based transportation requirements (DTRs).



Creating Freight Units

The most convenient way of creating freight units is to create them automatically, based on their predecessor document (FWO, OTR, DTR). Freight units can also be created using a background report, and the creation of freight units can be manually triggered from worklists. If it arises during planning that a freight unit has to be adapted (split or merged, for example), this can be done manually in the transportation cockpit. Freight Units in Planning

As a result of integration with SAP ERP (or another enterprise resource planning system), one or more freight units are generated for each transportation requirement being planned in SAP TM. A freight unit may therefore be described as a collection of goods that are transported together across the entire transportation chain. A freight unit can include several stages, which are referenced during transportation planning. A freight unit can be used to merge items from the following business documents that are to be transported together - FWO, OTR, DTR. Freight units are built on the foundation provided by business document data and freight unit building rules. The most important settings for the freight unit are defined in the freight unit type. The freight unit type allows for settings to be applied in the following areas: •

Customizing options

•

Controller maintenance

•

Checks in relation to creating, saving and deleting

•

Tracking settings

•

Organizational unit determination

•

Direct shipment process



•

Default values

•

Pick-up and delivery window calculation

Freight unit type determination is based on freight unit building rules applied in the creation of freight units and on specified conditions. Freight Unit Building Rules Transportation Requirement (FW O / OTR / DTR) Freight Unit Building

■

Freight Unit

Freight Unit

■

Freight Unit

F r e ig h t U n it B u ild in g R u le N A D O M F U B R G RPOO *

G e n e ra l D a ta

Advanced Settings

Adnmstradv* Data

Consolidate... • ...per Item • ...per Request • ...as Much as Possible

G eneral Data Fieaght Ural B u ttn g Rule Dmcnpbon

NA DOM FU6R GRPOO

Freight Ural BukSng Strategy

Consolidate per Item

FUBR GRPOO

Freight U nt Update Strategy

Item Swap Allowed (!

Critical Quantity

G reet Wwght

O th e r S ettings Document Type

FTOO

Doc Type Del Cnd

E q u ip m e n t o r V e h icle Type S e ttin g s

incornparowry betting*

C r LJnptay

Equprrwrt or V/^vete Group

fll

Equipment or VeFucie Type

Planning Quantities

-

^

Ural at M easure or Split Quantity

Planning Quantify tor Fra g N Ural BuMmg G ross Wwght

v

KG

SpM Quantity

Rounding Quantity 35.000

Figure 74: Freight Unit Building Rule

A freight unit building rule (FUBR) is used in the automatic creation of a freight unit based on one or more transportation requirements. Freight unit building can use the following consolidation strategies: •

As much as possible The items come from different business documents, for example, forwarding orders. The system groups the items in freight units. In addition to forwarding orders, other possible business documents are order-based transportation requirements, and delivery-based transportation requirements.

•

Per request The system generates freight units separately per business document.

•

Per item The system generates freight units separately per business document item.

Freight Unit Building

If necessary companies can define that the freight units are split if certain constraints are present. For example, you define the maximum capacity of a freight unit using the split quantity. Let's say you have to transport 5 tons of cement, but you can only transport it in batches of 500 kg. In this case, you define a split quantity of 500 kg. and the system generates 10 freight units.



Note: Using the process controller, freight unit building can be adjusted to customerspecific requirements using ABAP coding. Based on the definition of freight units, all items included in a freight order are transported together from their source to their final destination. However, in multi-modal scenarios, different planners may be involved in scheduling the different stages of the transport. For this reason, stage information can be added to the freight unit. This allows a degree of independence when scheduling the stages.



Unit 5 Exercise 11 View a Freight Unit

Business Example

As a manufacturer, you require a planning tool that will support your diverse requirements in relation to shipping various products. You need to investigate how SAP TM builds and plans freight units, as well as learning the necessary tools to support planning. 1. In NWBC, open one of the OTRs created in the unit 4 exercise Create a Sales Order. 2. Navigate to the Document Flow tab and locate the freight unit. Open it by clicking the number. Has a freight order been created for the freight unit? 3. Which freight unit building rule was used to create the freight unit? Which freight unit type was used?



Unit 5 Solution 11 View a Freight Unit

Business Example

As a manufacturer, you require a planning tool that will support your diverse requirements in relation to shipping various products. You need to investigate how SAP TM builds and plans freight units, as well as learning the necessary tools to support planning. 1. In NWBC, open one of the OTRs created in the unit 4 exercise Create a Sales Order. a) If you are unsure of how to do this, review the steps in the Create a Sales Order exercise. 2. Navigate to the Document Flow tab and locate the freight unit. Open it by clicking the number. Has a freight order been created for the freight unit? a) No, a freight order has not yet been created. You can verify this in several ways, as follows: .

In the Document Flow tab, there is no successor business document.

.

In the Stages tab, you can see that the Freight Document column for this freight unit is not yet filled.

.

If you navigate to the Statuses tab, you can see that the planning status is N ot Planned.

3. Which freight unit building rule was used to create the freight unit? Which freight unit type was used? You find this information on the General Data tab of the freight unit, under Additional Data.




•

View a freight unit



Building a Package

LESSON OVERVIEW In this lesson, we look at package building. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


Package Building

New rule-based package building engine (SCMB) * Builds product pallets and mixed pallets (layered) * Considers product master data * Considers product to package & equipment type assignment * Considers package building profile Integrated into freight unit building * Creates package items in freight unit * Can also create freight orders, trailer units, railcar units, container units Figure 75: Package Build Overview

Orders are placed on products which, during the real process, are packaged to create packages and pallets (HUs, TUs, main cargo items, and so on).



Packaging is a warehouse process. Warehouse-specific information can influence the result (for example, pick sequence). For the end-to-end process, the package information is required long before the warehouse is reached. The goal for SAP TM is to close the gap between orders based on products and the load planning happening for packages and pallets, as well as to enable a package building function that considers warehouse information. Therefore, readily available packaging components and product master data packaging-specific definitions are reused. Package Building in the SAP Transport Management (TM) Planning Process

4

Load Planning (Rules-Based Optimizer)

Load Plan of Freight Order / Trailer Unit / Container Unit

Determines physical positions of load in truck / trailer/ container.

Figure 76: Package Building in the SAP TM Planning Process

Package building is inserted into the overall planning process at the freight unit building step. It allows products to be combined into packages. These packages (within freight units) are later used in subsequent planning steps (manual and optimizer planning (VSR) to create freight orders and subsequent load planning).



Package Building Selected Features

Layer Types

• Define number of product pieces inside layer type • Define number of layers in package type

Package Types

• Consider different package types (length, width, height, weight) • Required package type and allowed maximum height may depend on product & customer

Figure 77: Selected Features of Package Building

The product and package type assignment defines the target package type. One option is to set the package material. When doing so, the base unit of measure of the package, the dimensions, and the weight are all considered. The second option is to set the package unit of measure. This points directly to the product-alternative units of measure for the conversion rules, but no package attributes are considered. When set in combination with the package material, it can overrule the base unit of measure of this package. The third option is to set the definition of the equipment group and type. In SAP TM, this enables the creation of container, trailer, or railcar units. It does not affect the logic, but the package unit of measure must also be defined. Furthermore, the definition allows specific limits to be set regarding the weight and height that the package builder will consider when packing the product. It is possible to set generally valid limits on the package material (that is, product master data). For example, you can only stack a EU pallet up to 1.8 meters and put 900 kg on it. In the product and package type assignment, you can lower the specific product, customer, and location limits.



Package Building Logic

Product Package Building (phase 1) Product Pallets Pull

Incomplete

Mixed Package Building (phase 2) Mixed Pallets Full

Incomplete

□ a a a 130 pieces Product A

13 pieces Product C

Result: 7 pallets

Result: 6 pallets

Figure 78: Logic of Package Building

Step 1 Full package building. Step 2 Mixed package building takes the incomplete product pallets as input and combines them into mixed pallets, in order to minimize the total number of pallets. LESSON SUMMARY You should now be able to:

•




Defining a Selection Profile

LESSON OVERVIEW Your SAP TM system is full of data. In order to maintain a workspace that is not overloaded and yet provides easy access to necessary information, you need a way of selecting what it is you want to work on using specific criteria. Selection profiles are the way you achieve this, helping to provide a clear and relevant workspace. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Selection Profile

Selection Profile

Geographical Selection Attributes

I I

Time-Related Selection Attributes

I I

Additional Selection Attributes

| Figure 79: Selection Profiles

Selection profiles define what is called up for planning in the transportation cockpit. Selection Objects

Selections can be made on a number of objects, including those outlined in the following list.



•

Freight Units

•

Transportation Units

•

Freight Orders

•

Freight Bookings

To group requirements and objects according to different criteria, the selection profile is used to specify which requirements and selections are needed in a given planning scenario. Requirement selection is the selection of freight units and transportation units. Freight order selection is the selection of freight orders and freight bookings. Selection attributes include geographical selection (using any location or zone attribute), and time-related selection attributes, such as pickup and delivery windows. Additional selection attributes can be taken into account - such as planned or unplanned transportation requirements. An example of an additional selection attribute might be the nature of the product being selected, such as freight unit type or dangerous goods. Flexible filters can be used in the selection process.

Geographical Selection Attributes In a company's planning department, geography is often used as a way to allocate planning responsibility. For example, an individual or team might be responsible for a specific plant, distribution center or group of customers in a geographical area. The geographical selection attributes in the selection profile allow the team to limit their view in such a way that they only see FUs or FOs for which they have responsibility. The selection profile can be set up to include or exclude certain shipping/receiving facilities. It can also be used to include or exclude certain customers. LESSON SUMMARY You should now be able to:

•


•




Determining a Planning Profile

LESSON OVERVIEW Planning profiles control how the planning process is carried out, whether planning manually or using the optimizer. A planning profile must be specified for an optimizer run, which then considers this profile as it runs through its process. In effect, the settings in the planning profile control different steps of the optimization process. While the selection profile controls the What for optimization, the planning profile controls the How . LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Planning Profiles Planning profiles are used to influence and control the outcome of the optimizer. A planning profile must be specified for an optimizer run and takes into account the various settings set up for the profile. These settings control different steps of the optimization process. There are several sub-profiles which must be created for use in the planning profile. The planning profile includes settings to control the different steps of the optimization. These steps are controlled by strategies set up in Customizing. Standard strategies are delivered by SAP - but unique strategies can be created. The strategies are made up of various programs. If you wish to perform manual planning or a scheduled planning run, there is a standard strategy for each. You also specify in the planning profile which type of checks will take place in relation to incompatibilities, dangerous goods, and so on.



Optimizer Settings

Planning Profile

Capacity Selection Settings

Load Planning Settings

Planning Cost Settings

Incompatibilty Settings

Carrier Selection Settings

Optimizer/Algorithm Control Settings (e.g. Runtime)

Planning Strategy

----- Transportation Proposal Settings

Figure 80: Optimizer Profile

•

Optimizer Runtime The number of seconds the optimizer runs.

•

Maximum Duration without Improvement This sets the number of seconds that will cause the optimizer to stop if there is no improvement within that timeframe

•

Planning Strategy The planning strategy defines how the optimization takes place. SAP delivers standard strategies and customers can also set up their own strategies.

•

Maximum Number of Transshipment Locations This should be kept to a minimum to maximize performance.

•

Transportation Proposal Settings These control how the batch run processes the result of the transportation proposal. Save Route Only - Specifies that only the routing is copied to the freight unit as stages. Plan dates and MTrs are copied to the freight unit as well.

•

Planning Strategy for Trans.Proposal It is possible to specify a separate planning strategy that can be used for the transportation proposal

•

Number of Transportation Proposals The number of proposals that will be determined during the transportation proposal run. Penalty costs for early/late pickup and delivery can be specified at planning profile level or, in a more granular form, using a condition. The condition is specified in the freight unit type.



Cost Profiles


Optimizer Settings





Non Delivery Cost — Earliness & Lateness Cost Means of Transport Specific Cost ■— Cost Function

Figure 81: Cost Profiles

The cost profile is one of the sub-profiles used for planning. This profile contains input for the optimization cost. The costs are internal costs and are not related to a particular currency. The following settings can be made: •

Non-delivery cost: This is a mandatory entry. The algorithm used in the optimization takes non-delivery into account. If there are no costs for non-delivery, the system will deliver nothing, since this is the cheapest solution. Therefore, a cost setting for non-delivery must be maintained.

•

Earliness and lateness cost: Sometimes, it is more cost-effective to deliver early or late, if this means the route/trip can be completed. This setting controls the period for early or late pickup and delivery.

•

MTr-specific cost: This setting controls the cost in relation to means of transport, and a break even calculation can be made to determine the means of transport used. For instance, for very heavy goods in large volumes, rail is cheaper than road.•

•

Cost function: With this function, you can maintain the minimum loading capacity and optimization cost of less utilization.

Further Settings

Further settings in relation to capacity selection, incompatibilities and carrier selection help to bring sharper focus to any planning run. •

Capacity Selection Attributes In the capacity selection setting, you prescribe the resource capacity that should be considered during planning. If, for example, you have created resources for both Full Truckload (FTL) and Less than Truckload (LTL), you can specify both types of resources.



These resources can be both active and passive - for example, tractor and trailer. As well as vehicle resources, schedules can be selected and used as capacities during transportation planning. •

Incompatibility Settings You define the incompatibilities that planning should take into account during a planning run. For example, if you are shipping a material that is a liquid, you can create an incompatibility so that dry van trailer resources are not taken into account during planning.

•

Carrier Selection Settings You can choose to have carrier selection completed during the planning run. Or, you can run a separate optimization for automatic carrier selection. The carrier selection can be influenced by incompatibilities, allocations and continuous move opportunities.


•


•




Accessing the Transportation Cockpit

LESSON OVERVIEW Companies responsible for shipping large volumes of products require a tool that allows planners to get a high level perspective of their transportation demands while allowing planning activities to be carried out in a quick and targeted manner. In this lesson, you learn about SAP TM's transportation cockpit, a central element in the transportation planning process. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


Interactive Planning Business Example

John is a logistics coordinator at a shipping company, and needs software that will manage his company’s shipments. He needs the ability to view all of his customer's domestic and international export orders, and consolidate them to ship as efficiently as possible. To accomplish this, he needs an easily managed dashboard from which he can plan his orders. For some shipments, John is using automatic planning, but he still needs to verify the result of the optimizations. For other shipments, he needs to manually plan the transport requirements. Depending on the scenario, therefore, he requires different information and different functions to be available at different times. The specific and differentiated presentation of information possible in SAP TM allows him to plan efficiently.



Fr eight v jo kin g F reight 36 _ . O rd er Frei{ 1235 Orde 1234 F reight O rd ers / F reight B ookings

C a p a citie s (R e s o u rc e s , S c h ed u le s)

V isu alizatio n / M aps

Figure 82: Transportation Cockpit*•

The transportation cockpit can be used for optimized planning with or without user-selected entries in the foreground. We call this system “supported planning", where the system prepares a proposed plan based on the planners’ selections. Amongst others, the transportation cockpit includes the following elements: •

Requirements list (freight units)

•

Capacity lists (vehicle resources and schedules)

•

Order list (freight orders, but may also contain freight bookings as transactional or agreed capacities)

•

Order details

Tasks in the Transportation Cockpit The transportation cockpit is a central element in the transportation planning process, and facilitates numerous tasks. The transportation cockpit can be used for the following tasks: Transportation Cockpit Tasks

•

Manual planning

•

Creation of transportation proposals

•

VSR optimization

•

Load planning

•

Carrier selection

•

Triggering of a tendering process



•

Creation of delivery proposals

•

Creation of freight bookings

Profile and Layout Sets Transportation Cockpit: Profile and Layout Sets ✓ Continue | Start Planning in Background V iew a H ]S e v e

"New

1 R efresh ftequferoert

S e le c to r Profie (FUs) 1 Selection P rofte (TUs) O

T

5

T

I__ J k T_SS-_ALL

5

T

" J

P to m n g Pro fie T T O T O T O H H

KT_S£L_AU.

%}

I L sy o ti P e rso n a ta a to n U

& S e le c to r P ro n e (FOs) DOT-OCN-Sa-OI

rSCMTMSC€MO_AU. KT.S e._ALL

S e le c to r P ro n e (FBs)

C e p a c ly S e le c to r S

WT-CCN-SCL-OI

OOT.CAP.S£L-01

KT.se. .ALL

KT.CAPA.SEL

Incocnpa

The profiles allo w c on tro l on a v e ry g ra n u la r level:

Selection Profile: W hat is to be planned ■ Planning Profile: How is it to be planned Typically, profiles a re s e t up by planning sce na rio , fo r exam ple:

■

Plan main leg for time-critical requirements from Europe to US

■

Plan all LTL from plant to Nordic countries Plan on-carriage from distribution center to customers using their own fleet

The layout d efin es w h ic h in form ation is visible and how it is arran g e d

| Figure 83: Transportation Cockpit: Profile and Layout Sets

The cockpit requires users to enter several profiles that govern the content of generated result lists. The selection profile determines what is to be planned. That is, what freight units or freight orders are pertinent for a particular objective. The planning profile determines how the selected freight units are planned. The capacity selection profile restricts the planning run in relation to the transportation resources that can be used. Once the profiles have been determined, planners can use the cockpit to create freight bookings or manage existing freight orders. The transportation cockpit layout offers flexible settings to control what information is presented and the processing options available. A combination of selection and planning profile together with a layout can be assigned to a profile and layout set, such that this specific planning scenario is always shown in this layout while another planning scenario requires another layout. Such a profile and layout set is based on the specific information requirements of a planner. For example, in one scenario a planner has to plan liquids on tank trucks and must be able to see the volume of product, while in another scenario the liquids are in barrels on pallets and the planner requires the pallet count to be displayed. It is possible to switch between different layouts on-the-fly, for example, if a multi-step planning process leads to different needs in each step.



T r a n s p o r t a t i o n C o c k p it : S t a n d a r d L a y o u t

E xam ple P ro c es s: T ra n s p o rta tio n Planning

m

»»

»•

»»

»•

Order Freight U nit Freight Freight Tendering Delivery Processing (FU) Creation Planning Order Creation Proposal ______________________________________________________________________________ Creation E xam ple Ul: T ra n s p o rta tio n Planning C o ckp it F reight Units

Building strategies: Freight consolidation / split) Maximum transportation quantities ■ Compatibility

F reight O rd ers

V ehicle R e s o u rc e s / S c h ed u les

Variants: Road, rail, ocean, air ■ Truckload Less than truck load

Link fo r S u b co ntractin g

Carrier selection options: ■ Cost, priority, lane ■ Business share

M ap Integration

Planning constraints: ■ Requested delivery date /times ■ Time windows ■ Trip & un/loading durations Transport schedules ■ Vehicle availability & capacities ■ Incompatibilities ■ Handling resources ■ Costs (load, penalty)

Graphical routing Figure 84: Transportation Cockpit Standard Layout*•

In the standard layout the main screen is broken up into four quadrants (views). The maximum number of views in any layout is 6. The standard layout contains the following views: •

Freight units to be planned

•

Available capacities that can be used for planning

•

Freight order/booking list

•

Freight order/booking details

Each view is equipped with processing options using menus and buttons within the views. Processing options include the following actions: •

Merge /s p lit freight units

•

Remove resources from freight orders

•

Cancel freight orders

•

Schedule and check freight orders

Each of the available menus or buttons can be personalized in the planning layout definition. P la n n in g f r o m t h e C o c k p it A u t o m a t i c P la n n in g

Both manual and automatic planning are provided for in the cockpit. In relation to automatic planning, transportation proposals can be generated automatically and the optimizer allows planners to plan requirements onto resources and freight bookings or orders. Optimizer planning also creates detailed log information that can be analyzed using the explanation tool.



M a n u a l P la n n in g

The following options exist for manual planning: •

Drag a freight unit onto a resource, thereby creating a new freight order. Add resources/MTrs.

•

Drag a freight unit onto a freight booking, thereby adding the freight unit to this freight booking.

•

Drag a freight unit onto a freight order, thereby extending the freight order.

•

Command line planning and buttons provide additional options on top of the drag and drop functionality.



Access the Transportation Cockpit

B u s in e s s E x a m p le

John is an SAP transportation consultant working with his client ABC company. John is assisting ABC company in the implementation of the SAP TM system. ABC Company will be using the SAP TM optimization process and has requested that John explain the use of the transportation cockpit. 1. Using NWBC, navigate to the transportation cockpit. 2. Create your own profile and layout set. For Selection Profile, enter fu_sel_tmioo_##. For Planning Profile, enter plan_tm100_##. Enter Standard Layout for both Transportation Cockpit Layout and Layout for Planning Result screen. Enter PROF_##-My Profile as the description. Select the checkbox to make this your default layout set and save your entries. 3. Choose Continue to enter the transportation cockpit main screen and make sure you are using the new profile you have just created. If not, return to the profile selection screen, choose the new profile and then choose Continue. 4. What data is visible in the transportation cockpit?

5. In the freight unit view, what is the planning status of your freight units?

6. Which vehicle resources are considered in planning for these freight units?

7. What is the maximum weight for these two capacities?



Access the Transportation Cockpit


John is an SAP transportation consultant working with his client ABC company. John is assisting ABC company in the implementation of the SAP TM system. ABC Company will be using the SAP TM optimization process and has requested that John explain the use of the transportation cockpit. 1. Using NWBC, navigate to the transportation cockpit. a) In NWBC, choose Planning -> Planning —> Transportation Cockpit. 2. Create your own profile and layout set. For Selection Profile, enter f u _ s e l _ t m i o o _##. For Planning Profile, enter p l a n _ t m 100_##. Enter Standard Layout for both Transportation Cockpit Layout and Layout for Planning Result screen. Enter PROF_##-My Profile as the description. Select the checkbox to make this your default layout set and save your entries. a) Verify that you are in the Transportation Cockpit: Profile and Layout Sets transaction. If you are not, expand Change Profile Selection in the menu bar and then choose Profile Selection Screen. b) Choose [_, New to create an empty line for a new entry. c) Choose FU_SEL_TM100_## in the Selection Profile (FUs) column. d) Choose p l a n _ t m i o o _## in the Planning Profile column. e) Choose standard Layout in the Transportation Cockpit Layout column and in the Layout for Planning Result Screen column. f) Enter PROF_##-My Profile in the Description field. g) Select the Default Set checkbox. h) Save your entries. 3. Choose Continue to enter the transportation cockpit main screen and make sure you are using the new profile you have just created. If not, return to the profile selection screen, choose the new profile and then choose Continue. 4. What data is visible in the transportation cockpit? There are four views on the screen, as follows: Freight Unit Stages, Freight Orders/Freight Bookings, Vehicles (that is, capacities - vehicles, trailers, schedules), Overview (that is, freight order or freight booking details).__________________________________________________



5. In the freight unit view, what is the planning status of your freight units? The status of all freight units is Unplanned. You can tell the planning status by the icon in the Planned column that indicates the status. Hover over the icon to see a text description of the status._______________________________________________________________________ 6. Which vehicle resources are considered in planning for these freight units? By looking at the Vehicles layout at the bottom left, you can see that resources (capacities) US-FTL-01 and US-LTL-01 are considered in planning.________________________________ 7. What is the maximum weight for these two capacities? US-FTL-01 has a maximum weight capacity of 45,000 lbs, and US-LTL-01 has a maximum capacity of 25,000 lbs._________________________________________________________




•




Generating a Transportation Proposal

LESSON OVERVIEW This lesson shows you how to generate a transportation proposal. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


Transportation Proposal A transportation proposal defines how a freight unit can be transported through a transportation network (which is defined by locations, transshipment locations, transportation zones, transportation lanes, vehicle resources, schedules and bookings). For a given transportation demand (freight unit), the system determines a set of alternative transportation proposals. Transportation proposal functionality serves two purposes. The first and most obvious purpose is to help the user identify the different transportation options for a freight unit. In a complex network, in which end-to-end transportation requires several stages, transportation proposals are an easy way to make the different options transparent. Transportation proposals can differ in relation to routing, means of transport, time required. Each of these variables can increase or reduce costs, and the proposals thus provide the planner responsible with the necessary information to make an appropriate choice. Secondly, transportation proposal functionality can be used from the forwarding order to create the stages upfront, for example, to choose the option of ocean transport, because the customer has placed his order well in advance and this is the cheapest choice. In this use case, no freight orders are created based on the proposal result, but only the stage information is stored. This allows the task of planning the different stages to be assigned to different planners and to be completed at different times.



Entry Points for Transportation Proposal Determination

Forwarding Order —>Stages —>Actual Route —>Define Route Transportation Cockpit —>Select Freight Unit(s) —*■ Transportation Proposal Layout of the Transportation Proposal Result The layout of the transportation proposal result screen can be configured, similar to the transportation cockpit layout. The results can be displayed in a table format or visualized on a map. If the transportation proposal has been carried out for several freight units (because these compete for the same capacity, for example), the solution is always for a valid combination of assignments. In the table-based layout, each stage is shown in a separate line. In complex networks, there could be millions of routing options for a given transport, with only minor differences between them. Depending on the objective of the planner, results can be presented according to defined criteria, as follows: •

Lowest cost

•

Shortest duration

•

Carriers assigned

•

Departure days

•

Routes

Features of the Transportation Proposal

The features of the transportation proposal are as follows: •

Implicit definition of transshipment locations by schedules and freight bookings (simplified definition of transportation network)

•

Mode of transport constraints on freight unit and freight unit stage level

•

Fast determination of transportation proposals, yielding more alternatives according to predefined variation criteria (for example, route, carrier, departure date) and trade-off between time and cost (controlled variation according to pre-defined criteria)



•

Consideration of preferences for locations, carrier, mode of transport, dates and times

•

Display of multiple solutions on the result map

•

Rough planning (detailed planning on the main leg and rough planning for pre leg and subsequent leg, based on rough definition of transportation durations)

Rough Planning Business Rationale:

Rough Planning

• For pre-and on-carriages, rough planning is sufficient -> neither transportation lanesnor vehicles or schedules are required for pre- and on-carriages, thus reducing the effort for master data maintenance

Zoo*

Tran* lo c

Duration

Bremen

FRA

6:00

Hamburg

FRA

7:30

Saxony

FRA

4:00

Bavaria

FRA

5:00

Figure 87: Rough Planning

For many business processes it is not important to plan complete end-to-end transportation in detail. For example, it may be important to find the right flights, but it is known that the airport can be reached within a predefined time interval and the planning for this stage of the journey need not be planned with the same degree of precision. The assignment of transshipment locations to transportation zones (entry or exit point into a transportation network) allows planners to specify a duration that can be used for “ rough planning” . This means that a detailed transportation network (transportation lanes, for example) is not required for the pre/oncarriage.





Generate a Transportation Proposal

Business Example

As a transportation planner, you need to be able to generate transportation proposals so that you can make an informed choice on all transportation options available in any given instance. 1. Generate a transportation proposal using the set created in a previous exercise. 2. How many different transportation proposals were presented?

3. Choose the Expand All icon. How many carriers have been proposed as possible carriers? What is the difference between them and why have these carriers been proposed?



Generate a Transportation Proposal

Business Example

As a transportation planner, you need to be able to generate transportation proposals so that you can make an informed choice on all transportation options available in any given instance. 1. Generate a transportation proposal using the set created in a previous exercise. a) In NWBC, choose the Planning folder and then choose Planning —► Transportation Cockpit. b) In the Profile and Layout Sets selection screen, choose the set that you created earlier and then choose Continue. c) In the transportation cockpit, locate the freight unit for the delivery to CUSTOO-28 that you created in the Create a Sales Order exercise in Unit 4. d) Highlight the row for this freight unit and, in the menu bar, choose Transportation Proposals. 2. How many different transportation proposals were presented? The system offers two options - one using US-FTL, the other using US-LTL._______________ 3. Choose the Expand All icon. How many carriers have been proposed as possible carriers? What is the difference between them and why have these carriers been proposed? (MTr) - two carriers have been proposed for each of the two MTrs. This leads to different transportation durations between the two proposals. These carriers have been proposed because of the transportation network setup. Customer CUSTOO-28 belongs to transportation zone US-MOUNTAIN and in the transportation lane that runs between SP3100 (the source location) and US-MOUNTAIN, these two MTrs are defined.___________________ a) Return to the transportation cockpit (Cancel). Don't save the result.




•




Creating a Freight Order

LESSON OVERVIEW The focus of this lesson is the creation of freight orders, whether this is done manually (interactively) or automatically using the Vehicle Scheduling and Routing (VSR) optimizer. Freight orders are a result of planning, and can have different properties based on their freight order type. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Freight Order Business Example

In his role as an SAP transportation consultant, John has been requested to explain the benefits of freight orders and how they can get created using optimization criteria. John must describe the principles of vehicle scheduling and routing (VSR) optimization used in SAP TM as well as explain the difference of freight units, transportation units and freight orders.



Freight orders represent a single shipment or load departing from one of your facilities (outbound scenario) or arriving in one of your facilities (inbound scenario). The freight order can be created manually or automatically, for example, by using the vehicle scheduling and route optimizer. Freight orders are the basis for carrier selection, tendering, and freight settlement processes. These topics are covered in separate units.

Note: A freight booking can also be created as the result of transportation planning, similar to a freight order. For the sake of simplicity, the term freight order is used in the course book. You can use the freight order management component in SAP TM to create and edit freight orders and freight bookings. You use freight orders above all for land transportation and you use freight bookings for sea and air transportation. You can use the business documents in freight order management to enter all the information required for transportation planning and execution, such as source and destination locations, dates/times, product information, and resources used. You can create freight orders directly or in transportation planning. For example, you can assign freight units to the freight orders and have the system calculate the transportation charges. You can then perform carrier selection, assign the freight orders directly to a carrier as a suborder or perform tendering.



Freight Orders in Transportation Planning

FU 1

Freight Order

Freight Order

ki FU 2

FU_3

£ Figure 89: Creating Freight Orders

In a freight order, freight units from different transportation requests (OTR/DTR/FWO) can be consolidated. The VSR optimizer aims at finding the lowest cost solution based on the freight units to be planned, the transportation network (as defined in master data) and, for example, the costs defined in the relevant planning profile. If freight orders are created during planning and have the respective settings in the planning profile, the system determines the freight order type according to the Customizing settings. Transportation Units

The transportation unit (TU) is somewhere in between the freight unit and the freight order. Several use cases for TUs are possible as a consolidation option.



Feature

F reight U nit

T ransp o rtatio n Unit

F reight O rd er

Represents demand

+

+

-

Default route to define stages

+

+

Provides capacity

-

+

+

Different quantities per stage

-

+

+

Cargo management

-

+

+

Subcontracting

-

-

+

Figure 90: Transportation Unit, Freight Unit, Freight Order - Comparison

Freight Order Type The freight order type determines how a freight order is processed in SAP TM. There are some basic settings allowing for flexible customization options.

Figure 91: Freight Order Type Customizing



Customizing Options Freight Order Types

I

Fretflt Order Type THOO TM100 InstrctOf FOT (y Default Type Default Type for BtP SNpment Integration Basic Settings

Number Range Settings

Fretfit Order Can Be Subcontracted Shpper/Consignee Determnatcn ORc Document When Saving ✓ Freight Order Can Be Deleted

Relevant for Subcontracting Determination Based on Predecessor Pocu, *

Sequence Type of Stops

Defined and Linear

Change Controler Settings

Tme for Drawing

Draw Number When Saving Do. w

Number Range Interval

Addtional Strategies

Defaiit Change Strategy Change Strategy Determnatcn Cond.

def_chaco

Quantity Tolerance Condtion Date Tolerance Condtion

QlUHTTOL_Oi

|

Execution Settings

Creation strategy Save Strategy Deletion Strategy

Service Level Determnatcn

Execubon Track. Relev.

Execution Trackng with External Event Man »

Check Condtion "Ready for Exec" Immediate Processing

v Propagate Execution Info

Default Service Level Service Level Cond.

Event Management Settings

Default MTr Determination

Application Object Type Last Exp. Event

Default MTr for Type Condtion for Def MTr

w

Figure 92: Freight Order Type

Figure Freight Order Type shows a system view of some of the options related to customizing freight order types.

Route Optimization As the name suggests, the vehicle scheduling and routing (VSR) optimizer considers routing, and the sequence in which resources arrive at certain locations (as well as the scheduling of tasks running in parallel). It evaluates potential changes to the routing and the effect such changes would have on scheduling, helping to avoid the possibility of delayed deliveries and follow-on costs. Essentially, the goal of the optimizer is to assign freight units to vehicles/resources and determine the route and sequence of freight units per vehicle/resource such that all constraints are met and total costs are minimized. The optimizer achieves this goal by evolutionary local search, a population-based meta-heuristic that borrows selection principles from evolutionary algorithms and relies heavily on local optimization.



A more concrete example of the workings of the optimizer may be its handling of potential date changes, which it handles by applying each date change to all freight units on the affected vehicle/resource, or dependent freight units on any other resources, in order to derive the most appropriate choice. This consideration of several aspects in parallel is repeated for other variables such as transshipment locations, and is necessary to arrive at good plans or to make improvements on existing plans. Costs and Constraints

The total cost, which the optimizer is designed to minimize, is a weighted sum of the following items: •

Non-delivery/execution penalty (per FU)

•

Earliness and lateness penalty (per FU)

•

Fixed cost (per vehicle or tour)

•

Travel-dependent costs (per vehicle), for example, distance, duration, etc.

•

Load-dependent costs (per vehicle and tour)

•

Sustainability costs such as C02 emissions (from SAP TM 8.0 by BAdl)

Optimizer Constraints The optimizer can consider various additional constraints, as follows: •

At some locations, a handling resource for loading or unloading may be necessary, with attendant breaks or delays.•

•

The transshipment time of an order at a specific location can be restricted by a minimum and maximum duration.



•

T h e re m a y b e in c o m p a tib ilitie s b e tw e e n o rd e rs , v eh ic les , (tra n s s h ip m e n t) lo c atio n s , a n d so on, w h ich n e e d to b e c o n s id e re d .

•

D rivin g tim e s o f v eh ic les m a y be re s tric te d . F o r e x a m p le , a p la n n e r c an d e fin e th a t a fte r 8 h o u rs o f tra v e l, a d riv e r n e e d s a 2 -h o u rs b re a k a n d th a t 10 h o u rs is th e m a x im u m d aily tra v e lin g tim e .

S chedules

Scheduling Constraints

Freight Bookings Handling R esources C om partm ents Opening Hours of Vehicle C apacity

Locations

Vehicle

Optimizer Constraints

Com binations

Min. / M axim um Storage Tim e at Hub D ecreasing

D epot Location

Capacities Pickup / Delivery

Loading / Unloading

Tim e W indow s

Durations

■ (In-)C om patibilities

1

Limits on Distance, H i i ra tio n

Load Level of Vehicle

Stopovers Figure 94: Optimizer Constraints



Unit 5 Exercise 14 Create a Freight Order

Business Example

As a transportation planner, you need to understand the principles of VSR optimization, and how to create a freight order based on outbound or inbound transportation requirements. 1. Enter the transportation cockpit with the profile and layout set that you created in the Access the Transportation Cockpit exercise. Create freight orders from SP3100 to customers CUST00_25, CUST00_26 and CUST00_28 using the optimizer. 2. How many freight orders have been created?

3. What is the maximum utilization of the truck?

4. How long does it take to load and unload the truck at each location? Do you know why?

5. Which freight order type is used? Do you know why?

6. In the freight order, review the means of transport, the vehicle resource, the distance, duration and the number of visits/stops. 7. Review the freight order's document flow. 8. Make a note of your freight order number.



Create a Freight Order

Business Example

As a transportation planner, you need to understand the principles of VSR optimization, and how to create a freight order based on outbound or inbound transportation requirements. 1. Enter the transportation cockpit with the profile and layout set that you created in the Access the Transportation Cockpit exercise. Create freight orders from SP3100 to customers CUST00_25, CUST00_26 and CUST00_28 using the optimizer. a) In NWBC, choose the Planning folder and then choose Planning —► Transportation Cockpit. Hint: if the transportation cockpit opens directly, you may have to navigate back to the Layout and Profile Sets selection screen. b) Select the profile and layout set that you created in the Access the Transportation Cockpit exercise and choose Continue. c) Select the three freight units to customers CUST00_25, CUST00_26 and CUST00_28. Expand the Optimizer Planning dropdown and choose Selected Entries with All Resources. d) Upon completion of the optimizer, choose Accept and then Save. 2. How many freight orders have been created? One freight order has been created.________ 3. What is the maximum utilization of the truck? 80%. Highlight the freight order in the Freight Orders/Freight Bookings view. In the detail view underneath(Overv/ew tab), you can see that the maximum utilization of the truck is 80%. 4. How long does it take to load and unload the truck at each location? Do you know why? Highlight the freight order in the Freight Orders/Freight Bookings view. In the detail view (Overview tab), you can see that each loading and unloading activity takes 10 minutes per freight unit. Hint: Scroll to the right to compare the start and end times of the activities. In planning profile PLAN_TM100_##, it has been defined that the loading and unloading times are independent of freight unit and means of transport, and that they take ten minutes. To view this, choose Application Administration —> Planning —> Planning Profiles —> Display Planning Profile._______________________________________________________________



5. Which freight order type is used? Do you know why? Click the freight order ID to open your freight order. In the General Data tab, under General Information, you can see the document type is FO##. This is because the "Default type for Road FO" has been defined as FO# # in your planning profile.___________________________ 6. In the freight order, review the means of transport, the vehicle resource, the distance, duration and the number of visits/stops. a) You can find all listed information on the General Data tab. 7. Review the freight order's document flow. a) Navigate to the Document Flow tab. Sales orders, order-based transportation requirements and freight units are listed as predecessor documents. 8. Make a note of your freight order number, a) FO Number:_______________



Visual Planning SA P V isu al B u sin ess is used by s e v e ra l key fun ctio ns

Transportation cockpit: Overview Ul and fullscreen map

Figure 95: Transportation Cockpit: SAP Visual Business

SAP Visual Business is a Ul technology, which visualizes data in the context of a map. It provides interactive capabilities and an easy to understand visualization of SAP business data with geographical information - locations, routes, transportation resources, and so on. It helps planners to gain a fast understanding of the actual business situation, and allows them to respond to situations by direct interaction with objects on the map. For example, it is possible to plan unplanned freight units, displayed as a red arrow on the map, from the context menu (right mouse click).



Transportation Network Cockpit Transportation Network Cockpit Clear Mac

Daptay Protte

Dsptay Legend

Display

Stow AJTranssrtpment Locators

•

> Master Data Selection

L o c a tio n s

• T ra n s s h ip m e n t Reyru .Vancouver

______________

f c ----------one ►

Transportation Zone Trt

Create

►

Transpcrtahon Lanes

rtde

►

SctoAJes

Move Locabon

®E'

lo c a tio n s

_

•

Thurxkf Bay

______ .

J ShwOelsfc Fra

Wwvpeg

Ftrgo ►

M

OtftUl Rates

O igo ng

Transstrpment Locations

V.

To L octfon...

0

Mnnaipoki

Sioux Fab

Trade Lane

• T ra n s p o rta tio n zone s

S

®

Green Bay

• T ra n s p o rta tio n la nes '>

• S c h e d u le s

-Milwaukee

®

Features

Connection to Locaton

^rtLaktCly over I sji

®

SKramtn(°4 \/ v«a*

©

®

»"cr

Las Vegas

®

^

Albuquerque

sv

El Paso

g

CUi iv ia

• A d d re s s se a rch •

R o u te d is p la y

•

Find re la te d o b je c ts

• C re a te lo c a tio n s a n d

® ® M#'

S

\WJ

0 Tueion

y?

OklahdKIC .y V

osAngeieô.^ ® m-

Indiana

r

States

San Jose

®

D e fa u lt ro u te s

Lubbock

^ Altai

D.lf

®V

Jackfton

zone s •

P a th fin d e r

Figure 96: Transportation Network Cockpit

You can use the transportation network cockpit to display the following master data of the transportation network on a map: •

Locations

•

Transshipment locations

•

Default routes

•


•


•

Schedules

For the individual master data objects, you can determine other master data objects that have a relationship to them. Select a master data object and then one of the search functions available in the context menu. The system adds the master data objects determined to the map view. Address Search

You can use the context menu of the map to start the address search and display the search results on the map. The address search is based on the geocoding of the location. This allows you to perform several address searches and display the search results simultaneously on the map. You can use the context menu of the map to hide the search results individually or completely.



R o u t e D is p la y

You can use the context menu of a connection line to determine a route display along real street routes (georoutes). This function is dependent on the geographical information system available in the system. Alternatively, you can use the context menu of a resource to display the connection lines of all freight orders assigned to this resource. P a t h F in d e r

You can use this function to search for legs in your transportation network and take the following into account in the process: •

Locations

•

Transshipment locations

•


•

Schedules

•


This enables you to easily determine whether a connection exists between two locations and, therefore, whether you have correctly configured your master data. I n t e r a c t i v e P la n n in g o n t h e M a p

Transportation Cockpit: PLN.MAf.GAMn

Features • A s s ig n f r e ig h t u n its / f r e ig h t o rd e rs t o re s o u rc e s • A d d in te r m e d ia te lo c a tio n t o f r e ig h t u n it o r f r e ig h t o r d e r •

P r o x im ity s e a rc h

• S h o w r e la te d t r a n s s h ip m e n t lo c a tio n s OutMldort

Options •

D ra g a n d d r o p

• C o n te x t m e n u (Nurnbtrgi

Figure 97: Interactive Planning on the Map

Interactive Planning on the Map The map can be displayed as an own screen area in the transportation cockpit or in full screen. However, having the map displayed in an own screen area of the transportation cockpit enables



the planner to directly see the selected freight units, freight orders/bookings, transportation units and resources on the map. Display Options

When you display the map, you can choose whether all of the planning objects or only selected planning objects are to be displayed. Furthermore, you can select which planning objects are to be displayed on the map, for example, just freight orders or just freight units, in a display profile. You can call up the display profile with the toolbar. Planning Functions

You can carry out your planning on the map. If, for example, you select unplanned freight units and start planning from the context menu, the system shows the possible assignments of the freight units to the resources. Select the assignments that you require. You can also assign unplanned freight units or multirelations that contain unplanned freight units to resources by using drag and drop. When you do so, you can either assign the freight units to the resource or the resource to the freight units. You can use the proximity search in the context menu to find unplanned freight units and transportation units that are within a specific radius of a resource or a location. If you want to split a stage that is displayed on the map, you can assign an unplanned freight unit or multirelation to a location using drag and drop. Once you have selected the required planning option, the system adds the selected location to the freight unit stage and updates the map accordingly. This process also applies to freight orders. You can also display transshipment locations that are not necessarily part of your planning activities. You display these locations by choosing Show Related Transshipment Locations from the context menu. If a freight order does not have a vehicle assigned to it, you can also assign the vehicle by using drag and drop. To do so, you assign the freight order to a single vehicle resource or a multispot that contains at least one vehicle resource or passive vehicle resource and select the relevant planning option from the menu. You can use the proximity search in the context menu to find available resources that are within a specific radius. You can also specify the exact position of a resource at any time in the context menu of the map. The system displays all of your transportation planning activities on the map. When you leave the display of the map, your planning activities are also displayed in the table view of the transportation cockpit.



Gantt Chart: Display of Resources and Documents

Visibility

• Usage of trucks and trailers • Load utilization of trucks and trailers • Downtimes and nonworking times • Execution status and reported times for freight orders, trailer units and their activities • Notifications for overload, empty movements, and time conflicts Usability & Flexibility

• Time zoom in and out • Aggregated and detailed view • Hierarchical views • Single and dual view (horizontal and vertical)

/\

Figure 98: Gantt Chart: Display of Resources and Documents

Gantt Chart When performing transportation planning, a planner usually considers two main aspects: availability of resources and utilization of the used resources. With the conventional use of the transportation cockpit, the sequential order of freight orders using a particular resource and the availability of a resource for a certain timeframe is not (graphically) shown. Using a Gantt chart, which is often used in project planning as well, helps to visualize the availability of resources and the sequential order of transports. The Gantt chart is fully integrated into the transportation cockpit. Transportation planning can now also be done using a Gantt chart. In the Gantt chart, freight orders and vehicle resources are displayed as a time bar and planners can manually plan transports by using drag and drop. The Gantt chart provides a visual platform for performing transportation planning. With an intuitive and graphical user interface, the Gantt chart enables you to perform transportation planning visually, interactively, and more efficiently. The Gantt chart is a screen area in the transportation cockpit, which can be enabled in a page layout of the transportation cockpit. All standard functionalities, such as, positioning the Gantt chart anywhere on the transportation cockpit as well as maximizing the screen area to full screen, are available in a Gantt chat. The Gantt chart displays planned and unplanned freight orders and resources in a time bar. It is configurable; additional sets of information should be displayed next to the time bar. The time bar itself shows the activities planned for the document and resource. Depending on the layout chosen, the planner can use a single view, which only shows planned and unplanned freight orders or resources exclusively or a dual view (as shown in the figure, Gantt Chart: Display of Resources and Documents) that displays two entities next to each other. Similar to the dual view



in the transportation cockpit, the dual view can be configured vertically or horizontally. The scrollbars of both screen areas can be synchronized. A zoom bar on top of the screen area can zoom in and out to be able to see a more detailed view of a day or week or a more general view of the year. An important factor for transportation planning is the utilization of a vehicle. The utilization of the vehicle can be displayed with the utilization view which can be enabled when needed. The utilization view shows the utilization of the vehicle over time in a graph. The graph is displayed in a detail line below the actual resource or document. In this case, the single-view is chosen, this enables the user to see all the execution information within one screen. Multiple loading acts are only displayed as one item in the Gantt chart. This keeps the chart clean and easy to understand. Gantt Chart: Interactivity and Planning Scenarios Transportation C ockp it JG G antt Maximized View

In te r a c tiv it y

• Assign and schedule trucks and trailers by drag and drop • Re-sequencing by drag and drop • Fix and unfix freight orders, trailer units, and their activities • Context menus and hyperlinks P la n n in g S ce n a rio s

• Truck planning (freight orders and truck resources) • Truck and trailer planning (trailer units and trailer resources) • Re-planning based on events from execution ✓\

Figure 99: Gantt Chart: Interactivity and Planning Scenarios

The main benefit of this functionality is to have a good overview of the status of the trucks. Re planning can be simply done by drag and drop. Freight orders can be fixed or unfixed by just clicking one button. Furthermore it is possible to navigate directly to the resources or trailer units. The main focus is the planning of road transport. The truck and trailer planning can be done easily from this new feature in the cockpit. When execution events make a change to the planning necessary, this can be immediately done via this overview. Other mode of transports, such as air, sea or rail, are currently not supported in this cockpit. Interactive planning can be performed in the Gantt chart using drag and drop. Unplanned freight orders can be assigned to resources. Likewise, resources can be assigned to freight orders. The freight order is dropped on the time bar of the resource. If the freight order is not dropped at the same date it was originally planned, the date where it was dropped is taken over into the freight order. Scheduling is only performed when requested using the Scheduling button on top of the Gantt chart. The dual-view can be selected, to have the unplanned freight orders displayed on top and the available resources below. This enables the user to work with one window to plan freight



orders. The dual-view can either be displayed horizontally or vertically. The size of each area can be changed by dragging with the mouse. The Gantt chart enables the planning of unplanned freight orders by dragging on vehicle resources as well as the creation of transportation units. When dragging and dropping the loading activity of one freight order into the time bar of another freight order, both freight orders are combined. Overlap means that a resource has been planned multiple times and is therefore not executable, for example, if a trailer is already planned and newly planned during the next step, an overlap is caused, which is displayed a red line to the user. Similar to the utilization view, an overlap view shows if several documents on a resource overlap. This overlap can be overcome by scheduling the resource. Gantt Chart: Interplay with Map

S e le c t o b je c ts in G a n tt c h a r t a n d s h o w th e m o n m a p G a n tt c h a r t a n d m a p in te g ra te g e o g ra p h ic a l a n d t im e p e rs p e c tiv e

T r a n s p o r t a t io n C o c k p it : J G G a n t t DeMitrtAl

upOMeUao^

Pun Sabcttf

Tijruoortjiw' Ptooomb

Cpl»nc*r Panring

t

.t/oJt

Change S*«t»n Cnttro

* 0.

Chang* Planing SeOn^

>acUi u»Mo»Log Freight Unit Stages (154)

F r^ u m H u riK h H iM ) SUgpi

t)

i.

Fw grtiM

R

v 30015676

& R R

4015677 4 156 4•00015702 ‘ DO XC

TJ

t

Cwaa* Fwjfit Oocumani

Ear**!RaOjMM p P P

P

0102014 102014 1310 14 102014 U

X

H

Road Freight Order Hierarchy (16)

Cj X

4

w » s*qn^»ni

Ck

9

St *' ** J O " **

ufeadng locaion TUPi

9

lF

TRPl BLf

NOA

fHw w i ‘wignwuw a

^

99

v

j

R ru M v m c ii

RoadFiagKQuaHarartfty

HON

» % GO

TRPi.eif.PHX

OrOw lor

» ftGOFwgKOWtrlor

1 4

TRP rTZ V Z

* f t OO

•

fmptOramtc»

0

[_ *to Fr»nr« Ci *» Ch*c*

F#

unb

0 1310201085622 13102014212702 13

PlannM D*g»v» a*» *

C!X

Trai* unnn.**fchy ii6)

»0

*

CET

^

g

fcwmjn

S tw w rg

gM m FM v Meant o( I m p

3

T«P_ZuOM

TW .UU

TW^ZUGM

THP .UUI

.Z jGU

TPPI.UIU

Vend*

1 _07

TRP _TRUCK

CET

lOXuOiOSOOCET

tv

cwx*loca*

14 1

G antt Chart draw and 'r m .i

5

Traan

II

%

m

%

I Fa

U«

Scntoatog

g

T'*4WUne» Oocurntrt

Oocummt s u m

4500032054 45000055 4500032056 4500002057 4500002056 945000206 345000060 4500002061 4500002062 1845000063

Mar

Many

Gr

g

PlannM

000 12.11 67.19

g

PlannM

MM

i>

g

PlannM

54.09 46.44 6719 1750 57.11 .31

71 93 97 72 37 13

g g

UrplannM

X

PtaviM

Q S Rarne.: X

g

PwnM PlannM

I Q

PlannM

X

PlannM

X

1310

15

m iff

1710

M

... ; i™ '

rri

|T«H

|j» ^ C L . f*P ***= !*»•='

1

,**P-

T ’-

1

| P»t

^

g* |jW^

|TRn |WH

,w’ w

I'lr.iir 1 i

u

Figure 100: Gantt Chart: Interplay with Map

Another feature is the integration with the map panel. A Gantt chart freight order can be selected and it will automatically be displayed on the map. This provides the planner with a good overview so that they can re-plan freight orders based on map input. For example, if the map shows that two freight orders have the same destination, the planner can consolidate the freight into one resource, if enough capacity is available for the resource.




•


•




Unit 5 Lesson 9 Optimizing a Load

LESSON OVERVIEW In this lesson, you learn about the possibilities for load optimization in SAP TM. Load optimization allows a much finer view of how loads are put together than simply tare weight and volume, and facilitates planning down to the level of item position within a trailer, stackability, and axle weight distribution. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


Load Optimization ■

Loading pallets into trucks, trailers, containers

■

Rules-based load optimization, considering: ■

Tramporutton Cockpit JO Load Plan

Dimensions

■ Axle weight constraints ■ Stacking rules ■

LIFO loading

■

Etc.

■ 3D visualization of load plan

Figure 101: Load Planning

Take the following business scenario: Katie is working in the road department of a Logistics Service Provider (ABC Company). She plans hundreds of road freight orders on trucks every day. Previously, the system has supported her by comparing the total weight and volume of the cargo and the truck. However, in some cases, cargo has been left at the warehouse because to carry it would contravene the guidelines of the truck (for example, axle weight distribution). Katie requires system support that optimizes the load plan regarding weight, dimensions, stackability,



axle weight distribution, and further rules. This support would enable her to create a detailed load plan that could then be used in the warehouse to guide the loading of the truck. The load planning functionality of SAP TM provides this support. Load Planning in the SAP TM Planning Process

F o r w a r d in g O rd e r / D e liv e r y -B a s e d / O rd e r-

P a c k a g e b u ild in g c a n be

B a s e d T r a n s p o r ta tio n R e q u ire m e n t

4 4

in c lu d e d h e r e ...

F re ig h t U n it B u ild in g (R u le -B a s e d ) ... to c r e a te p a c k a g e ite m s in tn e tr e ig n t u n its .

F re ig h t U n its

T r a n s p o r ta tio n P la n n in g (M a n u a l o r O p tim iz e r)

R e s p e c ts w e ig h t a n d v o lu m e c o n s tr a in ts , b u t d o e s not

F r e ig h t O rd e r / T r a ile r U n it / C o n ta in e r U n it

d e te r m in e p h y s ic a l p o s itio n s in tr u c k / t r a i l e r / c o n ta in e r.

Load Planning (Rules-Based Optimizer) 4 L o a d P la n o f F r e ig h t O rd e r / T r a ile r U n it / C o n ta in e r U n it

D e te r m in e s p h y s ic a l p o s itio n s o f lo a d in tr u c k / t r a i l e r / c o n ta in e r .

Figure 102: Load Planning in the SAP TM Planning Process

You can plan the loading space of box trucks, trailers, semi-trailers, and containers in the transportation cockpit or directly in one of the following business documents: •

Road freight order

•

Trailer unit

•

Container unit

Planning is carried out at the level of business document items. When you plan a road freight order on a box truck, trailer, or semi-trailer, the system takes into account capacity restrictions in terms of the height, width, length, and weight of the loading space. The same capacity restrictions also apply to the planning of a trailer unit on a trailer or semi-trailer. It also takes into account the maximum axle load of your box truck. Furthermore, in the system you can add a split deck to your trailer or semi-trailer and consequently plan two decks. When you plan a container unit on a container, the system also takes into account capacity restrictions in terms of the height, width, and length of the loading space as well as the total weight and the empty weight of the container. In both the transportation cockpit and in the freight order, you can check the results of load planning as a 3D load plan or a table load plan in the form of a list of business document items. In the 3D load plan, you can show or hide individual objects as well as entire rows, columns, or stacks. The systems also provides you with information about the current load distribution and utilization of the loading space.



Transportation Cockpit Load Plan Transportation Cockpit: Torsten, Load Planning D e s e le c ts

Cnange Profile Selection t

P age Layout ^

Change Planning Settngs

© 14oM 8 Remsotteigrit order 6100005032 can beloaded ^ nomeasureswwaneo to' item . net conscereomoaoplanning <^>Nomeasuresmar*arecto’ item Onot eons«ereamoaapranmng

150 16

Dispia " r.: sage Log

-

Freight Orders \ r . '. ,

^

|

/N

k

'BJ

RemoveVeNOe

Chec*

Jrdb

:

i- r .-;

SearOl

m

Document

$.

M...

Source

Destlna

Departu

De.

D

Car

Ptenne

Pie

A..

N „.

Carrier

F

&

6100005023

•

33%

31

CUTG£_

1211.2013

235

C...

000

1311.2013

000

C...

4.314

K~,

6200

TO

TC£_CA

£

&

Ci 00005026

•

40%

31

CUTC£_

1211.2013

233

c ...

000

13112013

000

e ...

4.314

I t..

0.018

TO

TGE_CA

f t . 6100006032

■

143%

31

CUTG6 _

1211.2013

23:5

c ...

000

13.11.2013

000

c ...

4,314

K

57 150

TO

TGE.CA

£ T G f_ £ 1 TGC_

T 0t..

D

NOt

D

Uea tc c _

Vehicle .

TC€_TR TGt_TR TG£_TR

Figure 103: Transportation Cockpit Load Plan

Note: The load planning functionality is useful for LSPs and shippers alike. When entering the transportation cockpit, you select the appropriate Planning and Selection Profile. The example layout shown in the figure Transportation Cockpit Load Plan shows a list of all selected freight orders in the top area. In the lower area, you can see the Load Plan tab. Choosing this tab for a selected freight order shows a list with all main cargo items along with the 3D visualization of the vehicle. Only the main cargo items of a freight order are relevant for load planning, so if you have a pallet where products are assigned as sub-items, those products are not shown in the list, only the pallets. In the case of multi-items (the item type can be defined in the freight order type), the level below the multi-item is used for load planning. Clicking the Load Planning button (above the freight order list) runs the load planning optimization. The load optimizer fits the cargo items onto the vehicle, taking their dimensions into account and ensuring that no rules are broken. Information about the planned load is displayed in the table to the left of the visualization image, and includes information on the following points: •

Position in which the item is loaded (loading sequence) on the truck

•

The stack row and level on which the item is loaded

•

Weight

•

Dimension



•

Non-stackable indicator

Using the load planner, the planner can see immediately how much space for further items is left on the truck. If the planning of forwarding orders is carried out in the transportation cockpit, the planner can now continue to load forwarding orders into the freight order and can then repeat the load planning. 3D Visualization

The visualization provides the planner with an enhanced overview of the loading of the truck. The planner can rotate the view, hover the mouse over particular items to see more information about the items, and they can hide or unhide special items to get a complete impression of the current loading. Load Planning

•

Optimizer ensures that freight order cargo fits onto a truck while taking dimensions, weight, and further rules (e.g. reasonable load distribution) into account.

•

A rotatable 3D visual load planning result per freight order is generated.

•

Information on the exact position of each main cargo item is provided.

•

Manipulation of the visualization to view the details of the load plan is possible.

•

Load planning is available in the transportation cockpit and the freight order Ul.

•

Definition and prioritization of load planning settings is possible.

•

Optimizer run data can be reviewed in the explanation tool.



Load Plan in Freight Order Ul

Edit F reight O rd er w ith S u b contractin g 6100 005032 ^

\

X Cancel

Save

Char g esrS e le m e n t A

C fiedt t | Follow U p, | SdiediW ng^

Cancel Document

em Subcontracting A

C reate Serwce Order

Schedule t

Set Status s

Set Item sta ins t

Fixing ^

C ustom s t

Start Transport aeon Cockpit Perform Load Planning

*

| -

General Oata

Cargo

stages

utilization

Bifid H o u se Bdl of Lading ' Send LoadwigrtJnloading Instruction

Business Partner

Statuses

Document Flow

Charges

Terms and Conditions

Notes

Load Planning • C-eale,Update ERP Shipment Send Delivery Proposals to ERP

Figure 105: Load Plan in Freight Order Ul

The load planning tab is also available in the freight order Ul. You can trigger load planning out of the Freight Order Ul by choosing Follow-Up —> Perform Load Planning. Load Plan

The load plan is the result of load planning. It provides you with an overview of how the loading space available for transporting a business document is currently used. In both the transportation cockpit and in the business document, you can display the complete load plan as a 3D load plan or a table load plan of business document items. You can show and hide grid lines in your decks in the 3D load plan. You can also show and hide individual objects as well as entire rows, columns, or stacks and fill with different colors. The load plan contains the following information about the business document item: •

Resource

•

Item in the resource

•

Loading sequence

•

Row, stack, and level in the loading space

•

Gross weight

•

Height, width, and length

•

Stackability

You also get information about the load distribution as well as additional statistical data about the current load on separate tab pages. This includes the following:• •

Number of loaded business document items



•

Used area on the lower deck of your double-deck trailer

•

Utilization of the loading volume as a percentage

•

Used area on the upper deck of your double-deck trailer

•

Maximum weight for each axle group compared to the current weight for each axle group

•

Maximum trailing load compared to the current trailing load

Load Optimization Process Common restrictions which are observed during load optimization: Weight Dimensions Stackability Axle weight distribution Further rules Priority of the rules Locations: which item is unloaded at which location (according to the First In Last Out principle) Which freight units belong together• Figure 106: Load Planning Functionality

Load Planning Prerequisites

•

The latest version of Visual Business (Visual Business 2.1) for 3D Visualization is installed on your local PC.

•

The visualization is set up the layout of the transportation cockpit (in the Order area). In the Order area, enable the Road Freight Order Hierarchy or Freight Order list. In the Details area, enable the Load Planning button. In the Order Details tab, enable a new detailed tab (Load Plan) for road freight orders.

•

You have specified capacity details in the Resource Master Data for the truck on which planning is to take place. If the relevant dimensions are not maintained, the optimizer is not able to perform the load planning. The dimensions maintained here are used by the optimizer and the 3D-Visualization for the load planning.

In relation to the last point, the following data is critical: •

Capacity -

Mass: Gross vehicle weight

-

Internal length: length of loading space

-

Internal width: width of loading space



•

•

•

Internal height: height of loading space

Physical Properties -

Tare weight: empty vehicle weight

-

Cargo body distance: from front of truck to beginning of loading space

Axle Group -

Axle type: Single, tandem, triple, and so on.

-

Axle group distance: distance from front of truck to axle.

-

Dist. between axles: relevant in case of more than one axle.

-

Max weight on group: maximum weight on axle group.

-

Emp. weight on group: weight of empty vehicle on axle group.

The load planning settings and rules. The planning profile contains a new field — Load Planning Settings — in which you enter the load plan. In the load planning settings, you can maintain certain rules that are considered by the optimizer during the load planning run, for example, height difference within a row: maximum deviation, and so on. You can set each rule as active or inactive, and you can prioritize the list of rules.


Planning Profile


Optimizer Settings





Optimizer/Algorithm Control Settings (e.g. Runtime)

— Load Planning Strategy

— Load Planning Rules

Figure 107: Load Planning Settings

Log Tool The explanation tool, as may be familiar to you from the existing optimizer, is also available for load planning. You can review input and output (result) tables showing optimizer run data, items used in a run, and results (position of an item, sequence, and so on).



To access the log tool in NWBC, choose Application Administration —> General Settings —> Remote Control and Communication Framework —> Log Display. Alternatively, start transaction RCC_LOG in the SAP GUI. Choose your log using your user ID, date, time, and application (the load planning).

tvso

application refers to


•






Unit 5

Learning Assessment

1. Which of the following are options for transportation planning in SAP TM? Choose the correct answers. | A Manual planning using drag and drop B Optimizer planning | C Transportation proposals D Map-based planning 2. Which of the following business documents can serve as input for freight unit building? Choose the correct answers. | A Forwarding Orders B Order-Based Transportation Requirements | C Delivery-Based Transportation Requirements D Freight Orders E Freight Bookings 3. Provide an overview of package building in the SAP TM planning process.

4. Which profile can be used to select freight units for transportation planning? Choose the correct answer. | A Layout Profile B Selection Profile | C Transportation Profile



5. What can be maintained within a planning profile? Choose the correct answers. | A Master data B Cost settings C Capacity selection settings 6. A profile and layout set can be chosen when entering the transportation cockpit. This defines what should be planned, how it should be planned, and how information should be arranged. Determine whether this statement is true or false. | True False 7. The assignment of transshipment locations to transportation zones (entry or exit point into a transportation network) allows planners to specify a duration that can be used for “ rough planning” . Determine whether this statement is true or false. | True False 8. What is the optimizer taking into account during vehicle scheduling and routing? Choose the correct answers. | A Incompatibilities B Internal costs C Real costs from TCM D Open ing hours 9. Provide an overview of what is offered by SAP Visual Business.



10. The axle weight distribution can be considered during load optimization.

n n

Determine whether this statement is true or false. True False




1. Which of the following are options for transportation planning in SAP TM? Choose the correct answers. |~xj A Manual planning using drag and drop |~xj B Optimizer planning |~xj C Transportation proposals |~xj D Map-based planning

2. Which of the following business documents can serve as input for freight unit building? Choose the correct answers. |~xj A Forwarding Orders |~xj B Order-Based Transportation Requirements |~xj C Delivery-Based Transportation Requirements D Freight Orders E Freight Bookings

3. Provide an overview of package building in the SAP TM planning process. Package building allows products to be combined into packages. These packages (within freight units) are later used in subsequent planning steps (manual and optimizer planning (VSR) to create freight orders and subsequent load planning).__________________________



4. Which profile can be used to select freight units for transportation planning? Choose the correct answer. I A Layout Profile [x ] B Selection Profile | C Transportation Profile

5. What can be maintained within a planning profile? Choose the correct answers. I A Master data [x ] B Cost settings |~X~| C Capacity selection settings

6. A profile and layout set can be chosen when entering the transportation cockpit. This defines what should be planned, how it should be planned, and how information should be arranged. Determine whether this statement is true or false. [x ] True False

7. The assignment of transshipment locations to transportation zones (entry or exit point into a transportation network) allows planners to specify a duration that can be used for “ rough planning” . Determine whether this statement is true or false. [x ] True False



8. What is the optimizer taking into account during vehicle scheduling and routing? Choose the correct answers.

|~xj A Incompatibilities |~xj B Internal costs C Real costs from TCM \x \ D Open ing hours

9. Provide an overview of what is offered by SAP Visual Business. SAP Visual Business is a Ul technology, which visualizes data in the context of a map. It provides interactive capabilities and an easy to understand visualization of SAP business data with geographical information - locations, routes, transportation resources, and so on. It helps planners to gain a fast understanding of the actual business situation, and allows them to respond to situations by direct interaction with objects on the map.______________________ 10. The axle weight distribution can be considered during load optimization. Determine whether this statement is true or false. [x ] True False



Lesson 1 Performing a Carrier Selection Exercise 15: Execute a Carrier Selection

241 249

Lesson 2 Tendering a Freight Order

254

Lesson 3 Triggering Delivery Creation from SAP TM Exercise 16: Create a Delivery

260 269

Lesson 4 Executing Transportation in SAP ERP Exercise 17: Create a Shipment

273 281

Lesson 5 Executing Transportation in SAP Extended Warehouse Management (SAP EWM)

287

Lesson 6 Generating Outputs

307

Lesson 7 Monitoring Transportation Events Exercise 18: View the Events of a Freight Order

312 323

Lesson 8 Exporting a Freight Order

326

Lesson 9 Analyzing SAP Transportation Management Performance

331

Exercise 19: Execute a BCV Query

339



UNIT OBJECTIVES •

Define the carrier selection process and parameters

•

Describe the order tendering process

•

Tender a freight order

•

Describe the delivery integration process

•

Create a delivery

•

Integrate a freight order with a shipment

•

Create a shipment from a freight order

•

Create a freight order from a shipment

•

Integrate SAP EWM based on a shipment

•

Integrate SAP EWM based on a delivery

•

Integrate SAP EWM for transit warehousing

•

Generate outputs

•

View a freight order event

•

Describe visibility scenarios

•

Monitor the freight order process

•

Process an international shipment

•

Execute a query

•

Execute a Business Context Viewer (BCV) query



Unit 6 Lesson 1 Performing a Carrier Selection

LESSON OVERVIEW Carrier selection is used to determine the right combination of carrier / carrier assignments based on cost, equipment availability, priority, and business share goals. In this lesson, you will learn about assigning suitable carriers to freight orders - either manually or automatically. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


Carrier Selection Process



Once a freight order has been built, a shipper needs to choose (and communicate with) the business partner responsible for moving the product. We will refer to this as carrier selection. Carrier Selection

Carrier selection is used to assign a suitable carrier to your subcontractable business documents (for example, freight orders), either manually or automatically. The aim is to find a carrier with the lowest costs under consideration of the defined constraints. In manual carrier selection, you manually assign the required carrier to your business documents. If you have configured a check against transportation allocations, the system takes this into account and checks transportation capacities (transportation allocations) that you have defined for the individual carriers. If, during the allocation, the system finds relevant transportation allocations without capacity or that certain rules are violated by the allocation, warning messages appear. A separate optimization is available for automatic carrier selection. It takes selected optimization options into account when determining the most cost-effective carrier for all business documents that you have selected. If none of the carriers are available, the system does not assign any carrier to the relevant business documents. 1

Freight Order/Booking

1

Transportation Cockpit

1

Carrier Selection

1

1-step Planning

I

1

Execute Carrier Selection

Determine Carriers

T Check Incompatibilities

j

Determine Priority/TCM/Internal Costs i

mm

.mm

Transportation Allocations

l L

1

.

Continuous Move

Business Shares

„ . „ T"

\

.

Automatic Assignm ent

Action

y im r n m m m m

Tendering

.

.

J Manual Assignment

Assign Carrier to FOR/FB

Figure 109: Carrier Selection Process Flow

Strategy Options

During planning in SAP TM, strategies are defined which are optimization options for carrier selection. The system takes these strategies into account during the automatic carrier selection process. You define strategies either in the transportation lane or in carrier selection settings. Initially, the system considers the appropriate transportation lane for each freight order. This allows it to consider different settings in one run. Taking strategies and settings into consideration, the optimizer then creates a carrier ranking list containing the different carrier options. The strategy options supported are as follows:



•

Cost and Priority

•

Business Share

•

Transportation Allocation

•

Continuous Move

Costs and Priorities in Carrier Selection

In carrying out carrier selection, the system can put more weight on priorities or costs. In terms of priority, the system can determine the most favorable carrier based on the priorities you have defined. In effect, this means that the system chooses the carrier with the highest priority, while taking into account the various restrictions that may be in place. Alternatively, the system can determine the carrier on the basis of lowest total cost. Costs in this case can refer to internal costs or to charges calculated in charge management (we will look at this option in a separate lesson). Internal Costs

Internal costs draw on transportation costs and carrier costs as defined for your carriers. For example, you may have defined a transportation cost per business document (freight order, for example), or you could have defined a transportation cost per unit of weight or volume. Carrier costs are typically defined per unit of distance - kilometers or miles. You define internal costs in the transportation lane or in the carrier profile. Note: When we speak of internal costs here, we are not speaking of real world costs. Internal costs are used for weighting only, as part of the carrier selection process.

Business Share Formalized firm relationships often exist with carriers in the form of contracts. These contracts can guarantee an amount of business to be allocated to a carrier. If the required allocation is not met, penalties may result. SAP TM has the tools to track these relationships and to divide business appropriately between different carriers. This supports the negotiation of freight agreements, and avoids dependency on a single vendor. The idea is to use a fixed percentage to dictate the assignment of jobs to certain carriers. The system can also take the capacity of a carrier in relation to certain routes or geographical areas into account when generating assignments.



C a rrie r 2

Figure 110: Business Share

When defining the business share context, you create business share buckets. These define the actual business share a carrier is allowed to have. There are different types of buckets available for business share creation - yearly, quarterly, monthly, weekly, and daily. Business Example

Carrier A has a weekly bucket equating to 75% of the business share on the lane between Hamburg and Frankfurt, between the validity period 03.01.2015 to 05.31.2015. In the same context, Carrier B can have a defined weekly bucket of 25%. Penalties

You can define tolerances and penalty costs in relation to business share. As long as the business share for a specific carrier is within the tolerance limits, it does not affect the cost calculations during carrier ranking. Once the share allocation goes beyond a defined level, however, penalties start to apply. Tolerances are always defined in percentage terms. Penalties are maintained as numeric values. This number (the penalty) is multiplied by the deviation percentage (the amount outside the defined tolerance range) to arrive at the penalty cost. Example

A penalty of 1,000 is defined. An excess tolerance of 10% is also defined. During business share calculation, if the excess is 12%, the excess liable for penalty is 2%. This 2 is multiplied by 1,000 to arrive at the total excess penalty cost of 2,000. Currencies in Penalty Costs

When calculating the total costs for a carrier, if you are working with charge management costs, there will be a currency assigned to the charge management costs. To assign a currency to business share penalty costs, this has to be defined under Carrier Selection Profile —*•Advanced Settings —>Common Currency. If you are working with carriers from multiple geographic locations with multiple currencies, to arrive at the correct ranking, the system uses the internal common currency (maintained in the



carrier selection profile) for its calculations. The currency displayed in the carrier ranking list is always the local currency of the carrier (the one maintained in the freight agreement). All freight orders in a business share context are selected for the business share penalty calculations, although these freight orders are not selected during the planning run. Business Example

Assume that in a business share context we have two carriers, A & B. No tolerances have been defined. Carrier A is awarded 60% and carrier B 40%. There are already 10 freight orders awarded, of which carrier A is assigned 6 and carrier B is assigned 4. Now let’s perform carrier selection for an 11th freight order. If carrier B is assigned this FO, carrier A will have a shortfall of business share. If the freight order is assigned to Carrier A, carrier B will have a shortfall of business shares. Both options are evaluated by the system and ranked according to their suitability.

Allocation Transportation allocations allow companies to assign defined quantities of capacity to certain business partners. This includes set minimum or maximum capacity restrictions that regulate how much business is allowed with a certain carrier in a certain region for a certain means of transport. A separate business object is used to model these allocations.

C a rrie r 1 a llo c a te s 20 tru c k s /d a y (cap acity)

F reight fro m Locatio n/Z on e A to Locatio n/Z on e B

C a rrie r 2 a llo ca tes 40 tru c k s /d a y (cap acity)

Figure 111: Transportation Allocation




Included in optimization is a carrier selection profile. Although some of the same settings are available in the carrier settings on the transportation lane, these settings override settings maintained directly on the lane. The settings in this profile are based on strategies such as lowest cost, business share, and priority. It considers continuous move options and equipment allocations and can tender automatically based on the tendering strategy. The profile also contains more enhanced settings, such as the ability to automatically perform carrier selection after vehicle scheduling and routing.

Carrier Selection Ranking When using automatic carrier selection, the system will create a carrier ranking list of the relevant carriers for a particular freight order/freight booking. For each relevant carrier, users can see a variety of information that influenced the selection process. This could include the means of transport cost, delivery performance ratings, and others. After automatic carrier selection has been performed, the ranking list will be visible in the freight order.







Unit 6 Exercise 15 Execute a Carrier Selection

Business Example

You have been asked to investigate the carrier selection process for a typical load between a given origin and destination location. 1. Open the freight order that you created during transportation planning in unit 5, lesson 6. 2. Is this freight order relevant for subcontracting? Hint: Select the Subcontracting tab.

3. Has carrier selection been processed for this order? Hint: Select Carrier Ranking in the Subcontracting tab.

4. Perform carrier selection for this freight order. Use carrier selection profile CSEL_3100_00. 5. How are the carriers ranked?

6. Why is carrier CARR-00-01 ranked first?

7. While this order has triggered carrier selection, how can you tell if it has been tendered? Hint: Go to the Tendering Overview tab.

0



8. Has a carrier been chosen and assigned to the freight order?

9. Select carrier CARR-00-01 and assign it to the freight order. 10. What is the subcontracting status now? Hint: Go to the Statuses tab.

11. Save the freight order.



Unit 6 Solution 15 Execute a Carrier Selection

Business Example

You have been asked to investigate the carrier selection process for a typical load between a given origin and destination location. 1. Open the freight order that you created during transportation planning in unit 5, lesson 6. a) In NWBC, choose Freight Order Management —> Road —> Display Road Freight Order. b) Enter your freight order number and choose Continue. 2. Is this freight order relevant for subcontracting? Hint: Select the Subcontracting tab. Yes, based on the Subcontracting Relevance field, which is set to Relevant for Subcontracting. This is a result of the freight order type settings defined during configuration._________________________________________________________________ 3. Has carrier selection been processed for this order? Hint: Select Carrier Ranking in the Subcontracting tab. No. No carriers are listed on the Carrier Ranking tab. You could also navigate to the Statuses tab and review the subcontracting status, which is set to No Subcontracting Result. 4. Perform carrier selection for this freight order. Use carrier selection profile CSEL_3100_00. a) In the menu bar, choose Edit and then choose Subcontracting —► Carrier Selection.

b) In the Carrier Selection Settings window, enter CSEL_3100_00 and choose OK. 5. How are the carriers ranked? On the Carrier Ranking tab, CARR-00-01 is ranked first, and CARR-00-02 is ranked second. 6. Why is carrier CARR-00-01 ranked first? The strategy was set to rank carriers based on real costs calculated in charge management. Carrier CAR-00-01 has a cost of 1.366,81 USD, CARR-00-02 has a cost of 1.642,76 USD.

0



7. While this order has triggered carrier selection, how can you tell if it has been tendered? Hint: Go to the Tendering Overview tab. The order has not been tendered. You know that because the Tendering Overview tab of the freight order is blank. Had the order been tendered, there would be additional information here.________________________________________________________________________ 8. Has a carrier been chosen and assigned to the freight order? No. The Carrier field in the Subcontracting Data area is empty.__________________________ 9. Select carrier CARR-00-01 and assign it to the freight order. a) Select the line with carrier CARR-00-01 and choose Assign Carrier. Verify that the Carrier field has been populated. 10. What is the subcontracting status now? Hint: Go to the Statuses tab. Navigate to the Statuses tab. The subcontracting status is Carrier Assigned.___________ 11. Save the freight order.



LESSON SU M M A R Y





Unit 6 Lesson 2 Tendering a Freight Order

LESSON OVERVIEW Once a freight order has been built and a carrier selected, your business needs to let the appropriate parties know they have been selected. In this lesson you will investigate how SAP TM can support this process of order tendering. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


Order Tendering Process

1 Tendering

1 | Action

* Assign Carrier to FOR/FB

1

1

Figure 114: Subcontracting: Tendering - Context Process Flow

Once carrier selection has taken place, communication with the selected carrier needs to be initiated. This process is referred to as order tendering. Different tendering processes can be deployed depending upon the technology used by the carrier. You use this process to tender (offer) a freight order to one or more potential transportation service providers (TSPs). Tendering is a bidding process, in which you request one or multiple TSPs to submit a quote for a transportation service that is defined in a freight order. You can select the TSP that you want to execute the transportation service by evaluating the quotes. The main characteristics of the



tendering process are flexible configuration and the reduction of required manual interaction to support ease of use and lower total cost of ownership (TCO). E xam ple P rocess: T en d e rin g

. A

- A w

—

Freight O rd er

*

w

- A

*w

kA

C a rrie r S electio n

F reig h t O rd er Tendering

C a rrie r Q uotation

F reig h t Q uotation E valu atio n & C a rrie r A ss ig n m en t

■ Ranking List

■ Request for Quotation (RFQ) creation & publishing

■ RFQ acceptance / ■ Automatically or rejection with manually quotation ■ Embedded analytics (FQ) for decision support

Freight O rd er U pdate, & S ending to C arrier

Figure 115: Order Tendering Process

Tendering Types In general, there are two types of tendering, as follows: Long-term tendering is where contracts are negotiated for a longer period, for example, a year. Long term tendering is a process that is covered in Strategic Freight Management, which we will look at in the Managing Freight Contracts lesson. Short term tendering is where tendering is executed based on specific orders. This is known as order tendering. SAP TM supports the following short term tendering scenarios: •

Peer-to-Peer Tendering

•

Broadcast Tendering

The strategies for each are determined in tendering profiles in SAP TM. Parties and Roles in the Tendering Process

At least two parties are involved in the tendering process - a customer who wants to subcontract a transportation service that is defined in a freight order, and a supplier (subcontractor) or TSP, who potentially carries out the transportation service. There are two roles on the customer side of the tendering process. The first is a transportation dispatcher, who is responsible for the transportation service, that is, the freight order. The second is the tendering manager, who is responsible for configuring and executing the tendering process and acquiring an acceptable quote from a TSP to perform the transportation service. Manual and Automatic Tendering

When a transportation dispatcher initiates the tendering process, they have two options: manual process configuration or automatic tendering. If they want to tender only a single freight order, the transportation dispatcher can choose between the two options. If they initiate a tendering process using manual configuration, the tendering manager must configure and start the tendering process manually. If the transportation dispatcher wants to tender more than one freight order, they must initiate automatic tendering and use the automatic tendering configuration in the system.



Peer-to-Peer Tendering

1.

Carrier ABC 2.

RFQ

Carrier XYZ 3.

Carrier 123 4.

Carrier DEF 5.

Carrier 789

Sequential Processing Step/Carr...

Tendering Type

▼

Peer-to-Peer Tendering - Response Required

Step 1

Tendering Process ▼

Freight RFQ Based, Aw ard Automatically

▼

Freight RFQ Based, Aw ard Manually Freight RFQ Based, Aw ard Automatically Direct Tendering, Send Freight Order Directly

Figure 116: Peer to Peer Tendering

Peer-to-peer tendering is a process whereby freight orders are tendered sequentially or “offered" to preselected carriers or transportation service providers (TSPs). Peer-to-peer tendering involves the sequential sending of freight requests for quotation (freight RFQs) to each proposed carrier. The system waits until the carrier sends a freight quotation (FQ) or until the maximum response time has passed. If the TSP does not send a quote within the maximum response time, the peer-to-peer tendering process continues, and the system sends a request for quote to the next TSP. If peer-to-peer tendering ends without an acceptable quote, the tendering process continues with the next tendering process step that you have configured. If the TSP sends a quote before the maximum response time has elapsed, the system evaluates the quote and can either accept or reject it. In the case of rejection, a new RFQ is sent out. The process continues until at least one acceptable FQ has been received. The system awards this a Quotation Acceptable evaluation result and the process ends successfully. There are two types of peer-topeer tendering: response required and no response required. Broadcast Tendering

Broadcast tendering is a tender process whereby freight orders are simultaneously tendered (offered) to preselected TSPs. All TSPs have to respond within a given maximum response time. There are two types of broadcast tendering: best offer and first acceptable offer. Depending on which one of these is being used, either the first acceptable quote wins or, after the maximum response time, the system evaluates all the acceptable quotes and selects the TSP that has submitted the quote with the lowest price. If broadcast tendering ends without an acceptable quote, the tendering process continues with the next tendering process step that you have configured.



First Come, First Served Step/Carr

Tenderng Type

»

Broadcast Tendering - Best Otter

Step 1

Tenderng Process »

Freight RFQ Based, Award Automaticaly

▼

Freight RFQ Based, Award Manually Freight RFQ Based, Award Automatically Direct Tendering, Send Freight Order Directly

Figure 117: Broadcast Tendering

Tendering Profiles The tendering profile contains basic tendering data and is a prerequisite for automatic tendering. You can use a tendering profile when you manually create a tendering plan. Within the profile, you can define multi-step tendering. This allows a company to mix tendering types. For example, you can first use peer-to-peer tendering, and if this is unsuccessful you can use broadcast tendering. In a tendering profile, you can make settings in relation to the following options: •

Choose from tendering types — peer-to-peer, broadcasting (best offer, first acceptable offer)

•

Choose from tendering processes — direct or RFQ-based

•

Choose fully or semi-automatic rules-based tendering (response time and price limits, automatic re-tendering)

•

Configure the tendering process and RFQ publishing

•

Set up web-based, e-mail, SMS, B2B tendering communication

•

Set up authorization-based RFQ processing and data visibility (carrier authorization to change the price and delivery dates, view tender price limit, stop date and rejection code reasons, support of free text and attachments)

•

Make settings in relation to currency



Step/C arr

Tendern g Type

▼

Peer-to-P eer Tenderng - R esponse Required

Step 1

▼

Peer-to-P eer Tendering - Response Required Peer-to-P eer Tenderr»g - No R esponse R equred B roadcast Tendering - B est O ffe r

^

&

Insert Step

S tep£arr

Tender r ig Type

▼

Peer-to-Peer Tendering - No Response R equred

Step 1

Tendering Process ▼

F r e i R F Q Based, A w a rd Automatic a*y

▼

Freight RFQ Based, A w a rd Manuafty Freight RFQ Based, A w a rd Automatically D re d Tenderng, Send F re ij^ t Order Directly

C a rrie r A ssig n m e n t M ethod

RFQUpdates TAl an... Relative Price ... No Update » 100% No Update Update, Do Not Free Up TALUpon Rejection Update, Free Up TALand BS Upon Rejection

Maxima Resp.. 99:59

Carrier-Spedfi.. Vtsfciiy Settings 0

_0€FAULT

Figure 118: Tendering Profile

Tendering Communication Methods As part of the tendering process, it is important to review the communication methods that support the tendering scenarios. For carriers who may not be able to support EDI (electronic data interchange) scenarios, SAP has developed a Web-based collaboration portal to improve communication. This requires subcontractors to log on to SAP TM using the Web in order to process a freight order. On a periodic basis, each subcontractor views their RFQs (modeled as tendering requests) and submits quotations (modeled as tendering responses). Each subcontractor is provided with their own user IDs and passwords, as well as the relevant authorization to restrict visibility to only the loads that have been tendered to them. Additional methods are supported, such as receiving RFQs by e-mail and SMS and submitting quotations by e-mail without the need to access an SAP TM system at all. In this case, an RFQ is sent to a carrier by e-mail or SMS message. The carrier responds to the e-mail using a regular email client on a PC or a mobile device. The e-mail is then converted (using PI) into a quotation. Carriers can accept RFQs directly, reject them with a specified reason, or accept them with changes. Mobile tendering using a smartphone app is also supported and allows a mobile device to receive new RFQs, respond to RFQs, and include changes to dates and prices. Users can check addresses and routes on a map, e-mail or phone the contact person, create a calendar entry for awarded tenders, and check other appointments in the calendar.



- — * —— - — a

a

& Tv-"

r

<

7

. - :

SAP Transport Tendering Collaboration Portal Freight Order

EDI Message (XML)

Figure 119: Tendering Communication Methods

Advanced Communication

If a subcontractor is more technically advanced, B2B communication can be used. In this situation, a copy of the freight order is created for the carrier (the tendering manager or system administrator can control what is included in the copy that is visible to the carrier). The copy is persisted in the system to retain what was communicated to the carrier. A freight request for quotation (tendering request) is sent via PI and received as a forwarding quotation in the supplier's SAP TM system. The carrier can accept the order directly or, if the first carrier rejects the order, the freight order will be sent to the next carrier. Finally, a quotation confirmation is sent back to the customer and is converted into a quotation (tendering response) in the customer’s SAP TM system. The Change Controller allows you to react to changes in the FO, for example, by stopping tendering when there are major changes in the FO. LESSON SUMMARY You should now be able to:

•


•




Unit 6 Lesson 3 Triggering Delivery Creation from SAP TM

LESSON OVERVIEW This lesson describes the delivery integration process and it shows you how to create a delivery. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•

Create a delivery

Delivery Integration Process

SAP ER P Order

SD

Outbound delivery

Sales order Customer return

MM

Delivery integrated to SAP TM

_

Inbound delivery

Scheduling Agreement

-

Pi

nrH#»r

_

Inbound delivery

Stock transport order

_

Outbound delivery

Outbound delivery

Returns purchase order

Outbound delivery

Returns stock transport order

Outbound delivery

Scheduling Agreement

Inbound delivery

Figure 120: Delivery Integration with SAP TM

Employees using other processes for buying and selling may also need to complete shipping activities. The delivery document controls, supports, and monitors numerous subprocesses for shipment processing, such as picking, packing, loading, and posting the goods issue. In addition,



the delivery document can be used as a reference document for the creation of other shipment documents, such as a bill of lading. Outbound deliveries and inbound deliveries that are created in SAP ERP can be transferred to SAP Transportation Management (SAP TM), where they are stored as delivery-based transportation requirements. They can be transferred as a starting point for TM integration or as follow-up documents of ERP orders. In the latter case, either an outbound or inbound delivery is expected by SAP TM based on the preceding order. Delivery integration between SAP ERP and SAP TM is standard integration by Web Service. Delivery Integration Process

Delivery creation in SAP ERP can be triggered from SAP TM based on the results of transportation planning such as consolidation and dates, taking into account transportationplanning-relevant information such as resource availability and transportation durations. After creation of the delivery in SAP ERP, the delivery is transferred to SAP TM to create a delivery-based transportation requirement. Deliveries can be transferred to SAP TM regardless of whether the delivery creation was triggered by SAP TM or not. The delivery-based transportation requirement replaces the order-based transportation requirement as the requirement relevant for transportation planning and execution. SAP ERP is the leading system — updates to and cancellations of deliveries need to be carried out in SAP ERP and are transferred to SAP TM to update or cancel the delivery-based transportation requirement. If a delivery is changed, split, or deleted in SAP ERP, this information is sent to SAP TM. SAP TM adjusts the corresponding delivery-based transportation requirement based on this information. You can also split an outbound delivery in SAP ERP based on planning changes in SAP TM, and you can update the goods issue date, loading date, transportation start date, and delivery date in the outbound delivery based on changed dates in SAP TM. Since TM 9.1, it is also possible to transfer planning changes in SAP TM back to SAP ERP to update delivery times or to split deliveries. SAP TM is the triggering system in this case.



Delivery Creation from SAP TM

Creation of a delivery document can be triggered in either SAP ERP or SAP TM (and then sent to SAP ERP). Triggered in SAP ERP When the delivery is created, it is sent to SAP TM as a Delivery-Based Transportation Requirement (DTR). This is a specific instance of the Transportation Request Object (TRO). Due to the fact that the source document (the delivery) originates in SAP ERP, not all functions and changes are possible (in comparison with a forwarding order created in SAP TM). Triggered in SAP TM The second scenario is one in which the creation of deliveries is triggered from SAP TM and based on transportation planning performed in SAP TM. This solution offers the possibility of combining and planning multiple orders in SAP TM, and of creating a single delivery and transport. If handling unit management is being used in SAP ERP, these handling units are created as packages in the DTR in SAP TM. SAP TM can generate proposals for delivery creation in SAP ERP based on order-based transportation requirements, based on dates and quantities according to transportation planning results, and taking into account transportation constraints such as resource availability and transportation durations. SAP TM can also trigger the creation of deliveries prior to



transportation planning. SAP TM can propose inbound deliveries and outbound deliveries and send these proposals to SAP ERP to trigger the creation of deliveries. After the delivery proposals have been created and sent to SAP ERP, the system creates an entry in the application log. The application log entry includes the delivery proposals that were sent to SAP ERP. Furthermore, the freight units for which a delivery proposal is sent to SAP ERP are marked with a send timestamp. SAP ERP creates the deliveries when it receives the request to do so. These can be inbound or outbound deliveries. SAP ERP may split the proposed deliveries further, for example, based on additional split criteria. However, SAP ERP will not change the dates that were proposed by SAP TM nor consolidate proposed deliveries. Once the deliveries have been created, SAP ERP sends a confirmation to SAP TM, together with a request to create a delivery-based transportation requirement in SAP TM. SAP TM creates an entry in the application log. The application log entry includes the system messages that were created in SAP ERP during delivery creation as well as the numbers and document IDs of deliveries created in SAP ERP. If an error occurrs during delivery creation in SAP ERP, SAP TM generates an alert. When a confirmation is received, SAP TM sets a confirmation timestamp in the relevant freight units. The timestamp is used to monitor whether SAP ERP has responded.

Note: For error handling purposes, two additional worklists are available: •

One for all OTRs for which delivery creation has been triggered but no response has arrived from SAP ERP

•

One for all OTRs for which delivery creation has been triggered and the confirmation has arrived from SAP ERP, but for which an error occurred during delivery creation (and for which the delivery creation needs to be triggered again)

Methods for Delivery Creation

•

Background Report

•

Interactive Delivery Creation

Background Report Delivery proposals can be created for order-based transportation requirements by using a background report (report /SCMTMS/DLV_BATCH). The user can enter selection criteria or use a selection profile. In both cases, the user can also enter a delivery profile. Delivery profiles include settings for delivery creation and will be covered later. The system selects the documents, creates the delivery proposals, and sends them to SAP ERP. If a freight unit is used for the creation of a delivery proposal, but no delivery-based transportation requirement is ultimately created, the same report cannot be used to create a new delivery proposal for that freight unit. Instead, a new delivery proposal must be created interactively in SAP NetWeaver Business Client. Interactive Delivery Creation

The following list shows the possible interactive delivery creation approaches:



•

Input Selection with Profiles The user specifies one or more profiles according to which the system selects and displays a list of documents. The user can then select the relevant documents in the list and trigger delivery proposal creation. The user can review the delivery proposals before sending them to SAPERP.

•

For Specific Documents The user can trigger delivery creation for specific business documents from worklists. The system automatically sends the proposals to SAP ERP to create deliveries. It also displays the proposals before sending. The following are worklists from which delivery creation can be triggered: -

OTR Worklist

-

Freight Unit Worklist

-

Freight Order Worklist

-

Ocean/Air Freight Booking Worklist

The user can also trigger the creation and sending of delivery proposals for a specific freight order in the freight order Ul. •

After Planning The user can trigger delivery creation for specific documents after carrying out planning in the transportation cockpit. The system displays the delivery proposals, which the user can then review before sending them to SAP ERP.

Data Sources

SAP TM considers data for delivery creation from the order-based transportation requirements and from the assigned freight units, freight orders, and freight bookings. Based on the chosen input, SAP TM creates delivery proposals. A proposal consists of groups of freight units that can be delivered together. Data Collected by SAP TM

•

Dates SAP TM uses dates from the freight order or freight booking. If the order-based transportation requirement is not planned, that is no freight order or freight booking exists, then SAP TM uses dates from the freight units.

•

Quantities SAP TM uses quantities from the freight units.

•

SAP ERP Document References SAP TM retrieves document references (such as order document number) from the orderbased transportation requirement.

Consolidation If order-based transportation requirements have been planned, and freight orders or freight bookings exist for the transportation requirements, SAP TM uses only one freight order or one freight booking for each delivery proposal. That is, only freight units that belong to the same



freight order or freight booking can be consolidated into a single delivery proposal. In this way, freight units from various order-based transportation requirements can be consolidated into a single delivery proposal if they belong to the same freight order or freight booking. If, however, freight units from a single order-based transportation requirement are distributed across multiple freight orders or freight bookings, then multiple deliveries are proposed for the freight units of this one order-based transportation requirement. If order combination is not allowed for an order-based transportation requirement, SAP TM does not group freight units from this transportation requirement together with freight units from other order-based transportation requirements. If freight units for such order-based transportation requirements have been consolidated into the same freight order or freight booking during planning, SAP TM does not include them in the same delivery proposal, but instead creates multiple delivery proposals. In addition, freight units can only be consolidated into the same delivery proposal if the following data is the same: •

SAP ERP system from which the order was received

•

Source location

•

Destination location

•

Incoterms

•

Shipping conditions

•

SAP ERP document type, such as purchase order or sales order

•

Start stop (if planning has already been done)

•

Destination stop (if planning has already been done)



Freight Unit Consumption

When a delivery is created in SAP ERP, a delivery-based transportation requirement (DTR) is created in SAP TM. The DTR consumes the freight units assigned to the relevant order-based transportation requirements (OTR) if the corresponding orders were previously sent to SAP TM. SAP TM uses the SAP ERP order (base document) number that is referenced in the DTR item to find the corresponding OTR items (the base document number and item number is also referenced in the OTR items). If there are differences between the freight unit or item and the DTR, SAP TM adapts the freight units accordingly so that the information in the freight unit corresponds to the transportation requirement. Determination of Freight Units As described under Freight Unit Consumption (above), the system can determine the freight units which are assigned to OTR items. SAP TM reassigns the freight units from the OTRs to the DTRs. If multiple freight unit items are determined, SAP TM assigns the freight unit items to the items of the DTR in chronological order (according the dates of the schedule lines that the freight unit items reference). Once a freight unit is assigned to a DTR, the freight unit cannot be assigned to another DTR. If SAP TM does not determine any freight units, SAP TM can build new freight units for the DTR, as long as automatic freight unit building is allowed for the DTR type. This situation might occur, for example, if deliveries are created in the SAP ERP system without a preceding delivery proposal being sent from SAP TM. Splitting Freight Units



If, in the course of transportation requirement consumption, a freight unit is to be reassigned, but not all freight unit items or quantities are relevant for the DTR, SAP TM splits the freight unit. One of the resulting freight units contains only the relevant freight unit items and is assigned to the DTR. The other resulting freight unit contains the non-relevant freight unit items and is assigned to the OTR. If the quantity in a DTR item is less than the quantity in the associated freight unit, SAP TM splits the freight unit. If there are other differences between the freight unit or item and the DTR, SAP TM adapts the freight units accordingly so that the information in the freight unit corresponds to the transportation requirement. Updating an OTR During the consumption process, the open quantities and the consumption status are updated on the OTR. The open quantity in an OTR represents the quantity that has not been assigned to a DTR. When freight units are reassigned to a DTR, the open quantity of the OTR is reduced accordingly. Initially, the OTR has the consumption status Not Consumed. If at least one OTR item, or part of an item, has been consumed by a DTR item, the consumption status of the OTR changes to Consumed Partially. If all items in an OTR have been consumed, the system changes the consumption status to Consumed Completely. Once the consumption status is Consumed Completely, the system changes the life cycle status to Completed.





Unit 6 Exercise 16 Create a Delivery

Business Example

You intend to use delivery documents for recording and monitoring the shipping process after the shipment has been planned. You need to understand how trigger delivery creation from SAP TM. 1. Create a delivery. Use the following data: Field

Value

Selection Profile (FUs)

FU_SEL_TM10 0_##

Selection Profile (FOs)

FOR_SEL_TMl00_##

Delivery Profile

NA_D OM_OB_D ELY

2. What message is returned by the system?

3. Review your OTRs. What is the consumption status? What is the life cycle status?

0



Create a Delivery

Business Example

You intend to use delivery documents for recording and monitoring the shipping process after the shipment has been planned. You need to understand how trigger delivery creation from SAP TM. 1. Create a delivery. Use the following data: Field

Value

Selection Profile (FUs)

FU_SEL_TM10 0_##

Selection Profile (FOs)

FOR_SEL_TMl0 0_##

Delivery Profile

NA_D OM_OB_D ELY

a) In NWBC, choose the ERP Logistics Integration folder and then choose Delivery Creation —>Create Deliveries in ERP. b) Choose New and enter the values from the corresponding table. c) Save your data. d) Select your new profile settings and choose Start Creating Deliveries. e) Select the freight order that you want to use to create this delivery (the freight order you created previously) and choose Create Delivery Proposals. f) Choose Send Delivery Proposals to ERP. 2. What message is returned by the system? The system returns a message saying delivery proposals have been sent to ERP.___________ 3. Review your OTRs. What is the consumption status? What is the life cycle status? Review that the consumption status (Consump. Status) has changed to Consumed Completely and that the life cycle status (Life Cycle Status) has changed to Completed.______ a) In NWBC, choose ERP Logistics Integration —*• Worklist —► Overview Transportation Requirements. Review the data for your order-based transportation requirements. b) If necessary, refresh the screen.



c) Choose the Order-Based Transportation Requirements query and highlight the appropriate row in the table.




•


•

Create a delivery



Unit 6 Lesson 4 Executing Transportation in SAP ERP

LESSON OVERVIEW In this lesson, we look at shipment integration and shipment-based freight order scenarios. We also look at creating a shipment. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•


Shipment Integration Scenarios

Shipment Integration Outbound/ Freight Order Based Shipments

Shipment Integration Inbound/Shipment Based Freight Orders

0



Note: The terms inbound and outbound , in the context of SAP ERP shipment integration, are from the perspective of SAP TM. The shipment integration process is typically used when customers have multiple systems. SAP Enterprise Resource Planning (SAP ERP) performs tasks such as the purchasing of material from external and internal suppliers, the storage of material in plant warehouses, and the shipping of these materials to customers. Transport to and from the warehouse can be managed by a transport module or transport system. Transport planning is performed in an external system - SAP Transportation Management (SAP TM). SAP TM can be used to perform certain functions of the transportation process (such as planning, tendering, and charge calculation). However, transportation management as a whole is performed in SAP ERP. Shipment Scenarios There are two possible variations of this business scenario: •

Shipment integration outbound In this scenario, SAP ERP has deliveries (inbound or outbound), which contain the necessary information for the fulfillment of the orders. The deliveries are transmitted to SAP TM, where they become Delivery Based Transport Requests (DTR). Planning is performed in SAP TM resulting in freight orders. These freight orders are then sent back to SAP ERP, where they become SAP ERP shipments so the execution can proceed. In this scenario, the transportation planning is performed in SAP TM and the SAP ERP shipment is used only for execution.

•

Shipment integration inbound In this scenario, sales orders created in SAP ERP result in deliveries that are relevant for transportation. A shipment is created for the deliveries. When the shipment is ready for tendering, indicated by its status, and saved, the shipment is sent to SAP TM and a freight order is created. Tendering is then carried out in SAP TM. The tendering result is sent back to SAP ERP and the shipment is updated with the proper forwarding agent.

Both of these scenarios are used by customers who have already implemented and are using SAP LE-TRA, the transportation component of SAP ERP, and have invested in enhancements development and want to protect these investments. In such cases, they use SAP TM only for specific purposes. The terms inbound and outbound, in the context of SAP ERP shipment integration, are from the perspective of SAP TM. There is a 1:1 relation between the SAP ERP shipment document and the SAP TM freight order.

Hint: It is also possible to use SAP Extended Warehouse Management (SAP EWM) for the purpose of execution. SAP EWM integration is covered in a different enablement.



Freight Order-Based Shipment Scenarios

Figure 124: Creating Shipments from Freight Orders

In this scenario, you carry out transportation planning in SAP Transportation Management (SAP TM) for transportation activities that are based on deliveries received from SAP ERP. You can then carry out transportation execution in SAP ERP for the freight orders that were created during transportation planning. Note the following: •

SAP TM creates a Delivery-Based Transportation Requirement (DTR) for each delivery received from SAP ERP. There is always a one-to-one relationship between an ERP delivery and a DTR.

•

SAP ERP creates an ERP shipment for each freight order received from SAP TM. There is an one-to-one relationship between DTRs and a freight order; and, therefore, between the ERP deliveries that were originally sent to SAP TM and the ERP shipment that SAP ERP creates based on a freight order.

Outbound integration of shipment processing enables you to do the following: •

Transfer freight orders from SAP TM to SAP ERP and create shipments in SAP ERP based on the freight orders.



•

Update a freight-order-based shipment in SAP ERP if the relevant freight order is changed in SAP TM and the changes are transferred to SAP ERP.

•

Delete a freight-order-based shipment in SAP ERP if the relevant freight order is deleted in SAPTM.

•

Send a confirmation from SAP ERP to SAP TM when a shipment is created in SAP ERP based on a freight order in SAP TM.

•

Update the execution status of a freight order in SAP TM based on the overall status of the corresponding shipment in SAP ERP using a status notification.

•

Update a freight order in SAP TM based on a notification about changes to deliveries assigned to a shipment in SAP ERP.

•

Update a freight order in SAP TM based on a notification about changed item and handling unit assignments to container handling units of a shipment in SAP ERP.

When the freight order is updated, the related shipment document is updated automatically.

Note: The outbound integration scenario can also be used when the execution is performed in SAP Extended Warehouse Management (EWM), instead of SAP ERP. In this case the EWM system needs the packaging material information for planning purposes. The necessary information for creating handling units must be sent from SAP TM to SAP ERP and is essential for scenarios where an EWM system is used to pick/pack/ load.

Process 1. You send ERP deliveries to SAP TM, and the SAP TM system creates DTRs for the deliveries. 2. You plan the transportation process in SAP TM based on the DTRs. During planning, you create freight orders. 3. You carry out tendering for the freight orders in SAP TM (optional). 4. You send the freight orders to SAP ERP to carry out transportation execution. 5. SAP ERP creates a shipment for each freight order.



Figure 125: Freight Order Based Shipment Creation

In a freight order-based shipment, the freight order can be created using SAP TM. The freight order creation can be based upon sales orders sent to SAP TM as Order Transportation Requests (OTRs). The delivery may be created via the delivery proposal process in SAP TM. The delivery proposal can be triggered using a batch job or online in the Personal Object Worklist (POWL) of the OTR or in the Transportation Cockpit. When the delivery is created in SAP ERP, the TRDO output is created. The output triggers the DTR to be created in SAP TM. Once the DTR is created in SAP TM, the freight order is automatically enabled for shipment creation.



Shipment Creation

D iffe r e n t m e t h o d s to t r ig g e r s h ip m e n t c r e a tio n fr o m

th e

fr e ig h t o r d e r

B a tc h J o b P r o c e s s F r e ig h t O rd e rs (/S C M T M S /T O R _ F O _ P R O C )

U s in g th e F r e ig h t O r d e r U l a s fo llo w u p fu n c tio n

Figure 126: Shipment Creation*•

The shipment can be triggered from SAP TM fright order using the following processes: •

Batch Job Process Freight Orders (/SCMTMS/TOR_FO_PROC). When you use this report, you can select freight orders using a selection profile or by specifying selection criteria explicitly.

•

In the freight order Ul, you can choose to trigger the shipment directly.

Note: You do not need to be in change mode to trigger this process.



Freight Order Shipment Integration

When integrating the SAP TM freight order with SAP ERP shipment, configure the following settings: •

In SAP ERP, determine output condition types for confirmation and status notification

•

Determine partner profile for message type SHPMNT05 with the following message codes:

•

-

CRE - to create the SAP ERP shipment the first time

-

CNF - to process confirmation message. This message updates the shipment number reference in the TOR Root

-

STA - to process the status change messages from SAP ERP

-

UPD - to update the SAP ERP with the changes from SAP TM

Generate output condition records from SAP ERP for confirmation and status changes





Unit 6 Exercise 17 Create a Shipment

Business Example

As a transportation planner, you create freight orders in SAP TM from the planning process. Your company requires the shipment document in SAP ERP to execute warehouse processes. 1. Create a shipment. 2. What is the new Transmission-to-ERP status? (Hint: Go to the Statuses tab.)

3. Review the document flow. 4. What is the shipment number associated with the sales order?



Unit 6 Solution 17 Create a Shipment

Business Example

As a transportation planner, you create freight orders in SAP TM from the planning process. Your company requires the shipment document in SAP ERP to execute warehouse processes. 1. Create a shipment. a) In NWBC, open the freight order you created during optimizer planning. b) Choose the Freight Order Management folder and then choose Road —*• Display Road Freight Order. c) Enter the ID of your freight order and choose Continue. d) In the menu bar, choose Edit and then choose Follow Up —>Create/Update ERP Shipment. e) In the popup window, choose OK. 2. What is the new Transmission-to-ERP status? (Hint: Go to the Statuses tab.) Initial Transmission Started, Not Yet Confirmed by ERP._______________________________ 3. Review the document flow. a) Navigate to the Document Flow tab. Verify that the shipment has been created under Successor Documents. 4. What is the shipment number associated with the sales order? The same ID as your freight order. a) Log on to the ZME system (ERP) and launch transaction VA 03 (Display Sales Order). b) Enter v a O3 in the Launch field, or in the menu choose Logistics —>Sales and Distribution —>Sales —>Order —*• Display. c) In the Order field, enter the order number of one of the original sales orders on which the freight order you have been using was based. d) Choose the Display Document Flow icon.



Shipment-Based Freight Order Scenarios

Figure 128: Inbound Shipment Integration

In the shipment-based freight order scenario, the transportation planning functions are carried out in SAP ERP or a 3rd party logistics system and not in SAP TM. SAP ERP shipments are created as a result of this process. The SAP ERP shipment is then integrated with SAP TM for one or more of the following scenarios: •

To perform tendering functions

•

For freight costing and rating purposes

Note: There is a one-to-one relationship between an SAP ERP shipment and an SAP TM freight order. An SAP TM freight order must be synced with an SAP ERP shipment if it is used for freight costing purposes. To carry out the inbound shipment integration, do the following: •

The shipment to be integrated to SAP TM must have the output created. The output should be set up to create IDOC of type SHPMNT05



•

SAP Integration system , SAP PI must be setup to process and map the SHPMNT05 to the appropriate message for SAPTM

•

Customizing must be established in both SAP ERP and SAP TM

The interface shown in the figure, is based on services (inbound and outbound) in SAP TM and IDocs in SAP ERP. Pis are connected to an XI system integration process. These services and IDocs are not covered in this training. Inbound Shipment Integration Message Flow

S A P E R P 6 .0 ( E P H 5 o r

SAP TM

SA P PI

h ig h e r )

M apping Send S h ipm ent S H P M N T .S H P M N T 05

R ec eive Tendering R esu lt N otif

S H P M N T .S H P M N T 05

C an cel S h ipm en t

T ra n s p o rta tio n O rd erS C M T e n d e rin g R e s u ltN o tific a tio n O u t

Tendering P ro cess

Transportatic n O rd e rS C M C a n ^ C an c el Freight c e lla tio n R e q u e s tJ n a O rd er

Figure 129: Inbound Shipment Integration Message Flow

The figure shows the message flow between SAP ERP and SAP TM. When a shipment's tendering status is New Offer from the Carrier, the process is triggered. An output generates IDoc SHMPNT05, which is mapped to an SOA message TransportationOrderSCMRequestJn. In SAP TM, during the inbound proxy processing, a freight order is created. You can choose to trigger carrier selection from SAP TM. To do so, specify the means of transport for the freight order and set up the appropriate transportation lane. Once these settings are in place, you can trigger the tendering process if the freight order is set up as Relevant for Subcontracting. The tendering result can be passed to an SAP ERP shipment using the message TransportationOrderSCMTenderingResultNotification_Out, which can be mapped to SHPMT.SHPMNT05. If you have found and accepted a carrier, the enterprise service sends the following data: •

Carrier

•

Price

•

Confirmed dates and times

•

Tendering status

If you have not found a carrier, the enterprise service sends the corresponding tendering status.



If the SAP ERP shipment document already contains a carrier, the carrier information is sent to SAP TM. Ensure that the carrier partner is CIFed from SAP ERP to SAP TM. Once SAP TM receives the shipment, a freight order is created and the tendering process can be carried out. During tendering, the carrier can submit a quotation to SAP TM. The price in this quotation can be passed back to SAP ERP and stored in the shipment document. Freight Costing and Cost Distribution

To integrate SAP ERP shipments to SAP TM for freight costing and cost distribution purposes, create the necessary transportation charge management (TCM) master data, such as agreements and rate tables; and configure the system for cost distribution and settlement functions.




•


•


•




Unit 6 Lesson 5 Executing Transportation in SAP Extended Warehouse Management (SAP EWM)

LESSON OVERVIEW In this lesson, we look at integrating SAP EWM based on a shipment, a delivery, and for transit warehousing. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•




Integration via SAP ERP Release < 9.0

Release 9.0 SAP TM

h— *

SAP ERP

«— * SAP EWM

Figure 131: EWM Integration via ERP Shipments

The integration of SAP TM into the SAP EWM application enables you to integrate SAP TM transportation planning with SAP ERP delivery and shipment processing and SAP EWM warehouse planning and execution. In a first integration, based on release SAP TM 9.0, SAP TM was integrated into SAP EWM via SAP ERP. In this scenario, data is not sent directly between SAP TM and SAP EWM. In this process, you plan the transportation in SAP TM based on sales orders created in SAP ERP. SAP TM proposes and creates deliveries based on dates and quantities according to transportation planning results, taking into account transportation constraints, such as resource availability and transportation durations. The SAP TM system sends delivery proposals to SAP ERP, which creates the deliveries and forwards them to SAP TM and to SAP EWM for further processing. As a result of the transportation planning in SAP TM, a freight order is created in SAP TM. The creation of a freight order results in the creation of a shipment in SAP ERP and of a Transportation Unit (TU) in SAP EWM. In the warehouse you pick the goods by waves directly into shipping Handling Units (HUs), for example, pallets. You then stage the shipping HUs and load them into a truck before posting the goods issue. As a result of the goods issue, the deliveries are updated in SAP ERP for later billing and the freight order in SAP TM is updated for a later freight cost settlement.



Main Outbound Integration Scenarios Supported with SAP TM-ERP-EWM Integration

1. Outbound process with order-based transportation planning in SAP TM 2. Outbound process with delivery-based transportation planning in SAP TM 3. Outbound process with transportation planning in SAP EWM 4. Deletion of transportation planning

SAP EW M

Create outbound delivery requests and outbound « delivery orders

Create transportation units and perform warehouse planning and execution

S A P ERP

SA P TM

Create sales orders

Create OTRs and freight units

Create outbound deliveries

Perform transportation planning

i

I Create delivery proposals Create DTRs

Create shipments

Adapt transportation planning (freight documents)

Perform picking and packing

Post goods issue

Update deliveries and shipments

Update freight documents ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Perform charge calculation and freight settlement

Figure 132: Order Based Transportation Planning in SAP TM

An order-based SAP EWM integration scenario starts with the creation of a sales order. A sales order in SAP ERP creates an Order-Based Transportation Request (OTR) and associated freight units in SAP TM. When the Freight Units (FUs) are planned, freight orders are created. Based on this freight order, outbound deliveries are created in SAP ERP by using the functionality of delivery proposals. Outbound deliveries are created in SAP ERP. The outbound delivery is sent to SAP EWM as an outbound delivery request where an outbound delivery order is created. At the same time it is also sent to SAP TM where a Delivery Based Transportation Request (DTR) is created, which consumes the OTR created earlier. The status of the OTR will change to Fully Consumed. The FUs are updated and transferred to SAP ERP where a shipment is created. The shipment is assigned the outbound deliveries. The shipment creates a transportation unit in SAP EWM.



Note: Now, the freight order and the assigned freight units in SAP TM, the SAP ERP shipment and the assigned outbound deliveries, the transportation unit and the assigned outbound delivery order in SAP EWM are synchronized. The delivery is picked, packed, staged, and loaded in SAP EWM. A goods issue is triggered in SAP EWM. The goods issue and checkout of the transportation unit result in an update in SAP ERP. The delivery update means that information about the actual weights, quantities, and packing is sent from SAP EWM to SAP ERP. The DTR is updated in SAP TM. When the shipment status is updated, the freight order status is updated to In Execution. The freight order is executed in SAP TM. Once the execution is complete, the status of the SAP ERP shipment is updated. The final step in the process is charge calculation and settlement in SAP TM. Delivery Based Transportation Planning in SAP TM

SAP EW M

SAP ERP

SA P TM

Figure 133: Delivery Based Transportation Planning in SAP TM

The delivery-based transportation planning process starts with a sales order. The sales order is not sent through transportation management system, but deliveries are created in SAP ERP. The deliveries are sent to both SAP TM and SAP EWM. The remainder of the process is the same as order-based process.



Transportation Planning in SAP EWM

Figure 134: Transportation Planning in SAP EWM

In the SAP EWM-driven scenario, also known as SAP EWM-based transportation planning, the transportation planning starts in SAP ERP system with the creation of the sales order and the creation of outbound deliveries. The outbound deliveries are sent to SAP EWM, but not to SAP TM. The SAP EWM system performs transportation planning by creating the transportation unit by itself and assigning the units to it. A goods issue is triggered once the TU is picked, packed, staged, and loaded. After the transportation unit is checked out, the delivery is updated and a shipment created in SAP ERP. The shipment is sent to SAP TM where a freight order is created enabling SAP TM to perform charge calculation and settlement.



Deletion of Transportation Planning in SAP EWM

SAP EW M

Delete TU

S A P ERP

—

—»

Delete Shipment

SA P TM

*

Cancel Freight Order

Figure 135: Deletion of Transportation Planning in SAP EWM

Sometimes, a Transportation Unit (TU) in SAP EWM cannot be executed as planned. In such circumstances, the TU is deleted, thus deleting the shipment and, depending on how the freight order is configured in SAP TM, either deleting or canceling the freight order. The deletion or cancellation of a freight order enables SAP TM to perform the planning and start the process again. This process is called deletion of transportation planning.



Direct Integration

Release 9.1

SAP ERP SAP TM

4----- ►

SAP EWM

SAP TM

4---- 1■

SAP ERP

Release 9.0 4---

» SAP EWM

Release < 9.0

Since release 9.1, a direct integration between SAP TM and SAP EWM is available, and SAP ERP shipments are no longer required for integration. Communication is now carried out between SAP TM and SAP EWM directly, via services.



Process Flow in System Landscape Outbound Process

SAP Enterprise Resource Planning • Customer order « Delivery

S A P T ra n s p o rta tio n M anagem ent

Transportation Planning Freight Order Mgmt.

r Freight Settlement

S A P E x ten d ed W a re h o u s e M a n a g e m e n t

Picking Packing Staging Loading Goods Issue

Supply Chain Execution Platform Figure 137: Process Flow in System Landscape Outbound Process

This system setup enables end-to-end integrated transportation planning, warehouse execution, and freight settlement by way of a direct interface between SAP TM and SAP EWM. SAP TM and SAP EWM are part of the supply chain execution platform. Customer orders and delivery orders are generated in SAP ERP. The transportation planning occurs in the SAP TM. The result of the planning is a freight order. This freight order is transferred to SAP EWM directly. SAP EWM is responsible for operations such as picking, packing, and staging from the warehouse. The goods are loaded onto the truck. Once loading is complete, the transport is ready for execution and sent back to SAP TM. In SAP TM, the execution is processed. After successful execution, the freight order is settled in SAP TM. Integrate Best-in-Class Applications

The SAP EWM-SAP TM integration allows a tight integration of master data and Customizing between two systems. The communication occurs by way of the exchange infrastructure (XI). With the update to 9.1, the views for Customizing have not changed, so administrators can still use the same screens. Existing integration features of the release 9.0. are still available in SAP TM 9.1.



Note: Besides freight orders, direct integration with SAP EWM is also supported for freight bookings and transportation units.

Transportation Planning (TM) ) ) / / Sales order or • Interactive / delivery creation automatic (SAP ERP) transportation planning Automatic Order Processing (ERP)

transportation request creation (SAP TM)

• Carrier selection • Carrier tendering

Warehouse Execution (EWM)

Transport Execution (TM)

Freight Order Settlement (TM / ERP)

) ) / / • Wave creation • Shipment status •Transportation check • Cartonization charge planning calculation • Shipment execution • Picking • Freight invoice monitoring and optimization, request creation packing, staging event tracking and transfer to and load ERP management

• Freight order Automatic freight creation unit creation • Value-added • Automatic delivery (SAP TM) services creation in ERP • Waybill print

Integrated Outbound Process TM - EWM Figure 138: Integrate Best-in-Class Applications

When you plan to send goods from several outbound delivery documents with the same transport, transportation planning in SAP TM is based on SAP ERP sales orders or deliveries. SAP TM sends the transportation planning results to SAP EWM. The information from SAP TM is mapped into corresponding TU or vehicle activities. Building rules are not used in SAP EWM. After the warehouse execution, the transport information is communicated from SAP EWM to SAP TM to carry out transport execution and freight settlement in SAP TM. The communication back to SAP TM is triggered on goods issue of the TU, and contains information about what is loaded on the TUs that are posted goods issue.

Note: Delivery-based outbound transportation planning in SAP TM is also supported for outbound deliveries created in SAP EWM (DirODO). SAP EWM Customizing enables the setting of a TM-relevant transportation planning types and therefore the assignment of such deliveries to TUs created from SAP TM.



Main Process Steps of Order-Based Outbound Transportation Planning

SAP TM

S A P ER P

C reate Freight Units

R eceive OTR

Perform Transportation Planning

Freight O rder

-------1--------

Outbound Delivery O rder

C reate Outbound Deliveries

Creation

C onsum e O T R - ►

X (

R eceive D T R f t

X

C reate O rd e r(S O )

C reate

Trigger

Freight Order

SAP EW M

1

Update Freight Units

F O Status: Ready for (un)loading

l •

TU A/ehicle Activity

Picking

J

i Packing

i C h eck-In

Staging

U pdate Freight O rder W F O Status: In Execution^ Finalize Execution Freight O rder F O Status: C o m p leted^ Transportation C h arg e M anagem ent

Figure 139: Outbound Process

The main process steps of order-cased outbound transportation planning are as follows: 1. SAP TM receives sales orders or deliveries from SAP ERP and creates corresponding transportation requirements and freight units. 2. Based on transportation requirements, transportation is planned, freight orders are created in SAPTM. 3. When transportation planning is based on sales orders, SAP TM creates deliveries in SAP ERP. 4. SAP ERP distributes outbound deliveries to SAP EWM and SAP EWM generates corresponding warehouse requests of the type outbound delivery order automatically. 5. Based on the freight order information, a message is sent from SAP TM to SAP EWM directly, where a vehicle or a TU and a planned shipping and receiving activity is created automatically, and the outbound delivery orders are assigned to the TU activity. 6. Perform the warehouse activities related to the outbound delivery orders such as picking, packing, staging, and loading the goods. Note that all warehouse activities except loading can be performed before arrival of the TU to the door.



7. Execute the action Arrival at Checkpoint for the vehicle or the TU. The system changes the status of the shipping and receiving activity automatically from Planned to Active. 8. Assign a door to the vehicle or the TU. 9. If yard management is active, move the vehicle or the TU from the yard to the assigned door. If yard management is not active, execute the action Arrival at Door for the TU. 10. Perform the warehouse activities such as loading the goods, posting the goods issue, and printing the transportation documents. 11. With the goods issue posting in SAP EWM, the delivery information is transferred to SAP ERP, where the deliveries are updated automatically with the execution data. The information is forwarded from SAP ERP to SAP TM, where the corresponding delivery-based transportation requirement (DTR) is updated automatically. 12. With the goods issue posting in SAP EWM, the transport-relevant information is sent from SAP EWM to SAP TM automatically, where the freight order is updated with the execution and status data (for example, the stop of the freight order is set to Departed: loaded items are set to Loaded). 13. If yard management is active, move the vehicle or the TU from the door to the yard. If yard management is not active, execute the action Departure from Door for the vehicle or the TU. 14. Execute the action Departure from Checkpoint for the vehicle or the TU. SAP EWM automatically changes the status of the shipping and receiving activity from Active to Completed. 15. Set the execution status of the SAP TM freight order to Completed if this was not set automatically in the previous step. 16. Carry out the freight settlement In SAP TM. The freight settlement document in SAP TM is the basis for the invoice verification and settlement in SAP ERP. Inbound Process

In delivery-based planning, the deliveries are already created in SAP ERP based on the sales orders. The communication between SAP TM and SAP EWM is the same for delivery-based planning as for order-based transportation planning.



SAP TM

SA P ERP

SAP EW M

I R ec e iv e D T R

C re a te F reight Units

C re a te P u rc h a s e O rd e r

Inbound D elivery Notification

C re a te Inbound D eliveries

Inbound D elivery

+

v

P erform

r

J

\ T U A /e h ic le Activity

Transportation Planning

y '

C re a te F reight O rd e r

C h e c k -In

U nloading S en d U nloading Instruction

G oods R eceipt

P u taw ay U p d a te D T R

U p date D elivery

C h e c k -O u t

Figure 140: Inbound Process

As in the delivery-based outbound transportation planning, a transport planner plans inbound deliveries in SAP TM and sends a message for warehouse execution to SAP EWM. The creation of TUs or Vehicles with their assignments to the inbound deliveries is also automatic. The unloading of the transportation unit should be sent from SAP EWM to SAP TM to update the freight order. This communication step is new compared to release 9.0.



Transit Warehousing

SAP Enterprise Resource Planning ■ Customer order Doliuoru l /OI T Y U t J

SAP Transportation Management

SAP Extended Warehouse Management

Forwarding Order Mgmt. Transportation Planning Freight Order Mgmt.

Freight Settlement

<

Picking Packing Staging Loading Goods Issue

Figure 141: Direct SAP TM - SAP EWM Integration for Logistic Service Providers (Transit Warehousing)

With release 9.3, the integration of SAP Transportation Management (SAP TM) and SAP Extended Warehouse Management (SAP EWM) has been further enhanced, and the integration is now possible without an SAP ERP system. While with 9.1 integration was achieved directly between SAP TM and SAP EWM, the integration was still based on SAP ERP deliveries. This scenario, therefore, supported only shippers that use SAP ERP logistics integration in SAP TM. Transit Warehousing now supports direct SAP TM - SAP EWM integration, without predecessor documents in SAP ERP. Instead, the process can be based on Forwarding Orders (FWOs) and, therefore, supports Logistic Service Providers. You perform transportation planning in SAP TM, and then send your freight documents and transportation units to SAP EWM. In SAP EWM, you then execute the warehouse tasks, such as picking, packing, staging, and loading or unloading. You execute the settlement in SAP TM.



Integrated Planning and Execution

Shipper 1

Consignee 1 ^

EB Shipper 2

i

1

i

i

Is. J t

J Q -----JTtTT]

J Q ----- J iiii]

Consignee

H5 SAP EWM

SAP TM

Package tracking over complex transport net Transparency on warehouse data Send (un)loading instruction to SAP EWM

Packages instead of products * Receive, unload, putaway, consolidate, pack, stage, load Dock/undock to door Check-in/check-out Enter/change attributes (driver, license plate, and so on) Send (un)loading report to SAP TM

Figure 142: Integrated Planning and Execution

Transit Warehousing enables a seamless integration of the planned (system-based) flow of goods in SAP TM and the physical (system-based) flow of goods in SAP EWM across the entire transportation chain. By integrating the two systems, you gain transparency on warehouse data in SAP TM, for example, whether a truck has been loaded or unloaded in SAP EWM, and whether discrepancies exist, for example, quantity discrepancies. In this process, you can temporarily store the cargo in transit warehouses, regional hubs, gateways (air freight) or container freight stations (ocean freight) until it is shipped to the next location. You can also organize the cargo across the entire transportation chain and gain transparency with regard to the specific warehouse data. The process of handling cargo at one location can be repeated at several locations. In SAP EWM, processing is based on business documents that are created via the loading and unloading instructions from SAP TM. In addition, the warehouse layout is configured in accordance with the requirements of transit warehousing. For example, special warehouse types are available and a product master is no longer required. The handling of the cargo is carried out on package level instead of product level.



Process and Document Overview

In this process example shown in the figure, Process and Document Overview, there are several FWOs from different shippers to different consignees. The ocean or air main leg is covered by a Freight Booking (FB). The pickup, drayage, and delivery legs are covered by separate Freight Orders (FOs). In between, goods are shipped through a transit warehouse, gateway, or Container Freight Station (CFS), where they are unloaded from the vehicle resource and loaded to the next vehicle resource.



Integrated Process

The example process shown in the figure, Integrated Process, is supported by integrating SAP TM with SAP EWM using the transit warehousing scenario. The first relevant integration point is the unloading of goods at the transit warehouse TW Tokyo after the pick-up stage. The pick-up location in Tokyo is managed by the shipper. At the same transit warehouse TW Tokyo, the goods are loaded onto the next truck for the feeding pre carriage leg. Both the inbound (unloading) and the outbound (loading) process are supported. In the following stages of the transportation chain, further transit warehouses and gateways are passed through in the same manner. The last integration point is the loading of goods at TW San Diego for the delivery leg. The delivery location in Tucson is managed by the consignee.



Process Flow

Figure 145: Process Flow

In an inbound scenario, the processes Receive from shipper, Receive from other transit warehouse and Receive from airport/seaport (drayage) are supported. The customer service agent creates a forwarding order in SAP TM. The transportation planner creates an actual route manually or has the system determine this route. The actual route contains one or more locations that are relevant for transit warehousing. A location is relevant for transit warehousing if you have entered a warehouse number and a logical system (SAP EWM system) in the location master data. From the forwarding order, the transportation planner creates a freight order for picking up the goods at the shipper and transporting them to the transit warehouse. Afterwards, the transportation planner sets the execution status of the freight order to Ready for Transportation Execution, which means that the transportation activities can start. Finally, the transportation planner sets the cargo execution status of the freight order for the transit warehouse to Cargo Ready for Unloading. The system sends an unloading instruction to SAP EWM. On receipt of the message, SAP EWM generates a transportation unit and the corresponding handling units and an inbound delivery. On arrival of the truck on the yard, the warehouse staff log the arrival of the truck and assign it to a door. SAP EWM sends a notification to SAP TM. On receiving the message, the freight document is updated with the information about the arrival of the truck.



The warehouse staff unload the truck and posts goods receipt. When the freight is fully received, SAP EWM sends an unloading report to SAP TM. On receiving the message, the freight order and the freight units are updated with the information about the received cargo. In case of exceptions, exception handling is processed. The SAP EWM transmission status on SAP TM freight documents provides information about the status of the message exchange. In SAP EWM, new Uls for inbound handling were implemented, for Freight Order Inbound, Unloading Preparation, and Stock List. These new Uls display SAP EWM information for the underlying SAP TM freight documents. It is possible to navigate directly to the SAP TM documents. In addition, new RF-transactions were implemented for receiving and putaway. In an outbound scenario, the processes Deliver to consignee. Send to other transit warehouse and Send to airport/seaport (drayage) are supported. In SAP TM, a forwarding order is created and planned as described in the inbound scenario. Afterwards, an unloading list is created based on a freight document. The transportation planner sets the execution status of the freight document to Ready for execution, that is, the transportation activities can begin. The transportation planner sets the cargo execution status of the freight document to the transit warehouse on cargo ready for loading. The system sends a loading instruction to SAP EWM. On receipt of the message, SAP EWM generates a transportation unit and an outbound delivery order and assigns the corresponding handling units to the outbound delivery order. On arrival of the truck on the yard, the warehouse staff log the arrival of the truck and assign it to a door. SAP EWM sends a notification to SAP TM. On receiving the message, the freight document is updated with the information about the arrival of the truck. The warehouse staff take the handling units to the staging area. The warehouse staff load the truck. SAP EWM sends a loading report to SAP TM. On receiving the message, the freight order and the freight units are updated with the information about the loaded cargo. The warehouse staff log the departure of the truck and post goods issue. SAP EWM sends another message to SAP TM. On receiving the message, the freight order is updated in SAP TM. In case of exceptions, exception handling is processed. The SAP EWM transmission status on SAP TM freight documents provides information about the status of the message exchange. In SAP EWM, new Uls for outbound handling were implemented, for Freight Order Outbound and Loading Preparation. These new Uls display SAP EWM information for the underlying SAP TM freight documents. It is possible to navigate directly to the SAP TM documents. In addition, new RF-transactions for were implemented for packing and loading.



Integration Highlights

Multi-Document Handling (for example, Truck & Trailer)

Vehicle or Transportation

Multiple (Delta) Updates Enhanced Discrepancy Handling Support of late FU Splits (in Execution) Backward Propagation of EWM Confirmation data in SAP TM Support of EWM Handling Units across Freight Units

Truck Truck & Trailer Truck & Swap body Truck & Container Freight Booking Freight Booking & Container

Cross-System Document Flow Search Documents by Handling Unit ID Figure 146: Integration Highlights

The direct integration of SAP TM into SAP EWM was enhanced with many features, which enhance the existing integration scenario for shippers. Some of the new features are as follows: Multi-Document Handling Transit warehousing supports planning and execution with trailers. The data that is returned from SAP EWM is reported back to all the related business documents across multiple levels, that is, not only to the freight order but also to one or more trailer units and freight units. Truck & Trailer Transit warehousing supports planning and execution with trailers. The data that is returned from SAP EWM is reported back to all the related business documents across multiple levels, that is, not only to the freight order but also to one or more trailer units and freight units. Prerequisites for Truck & Trailer In the resource master data you have defined an active vehicle resource for your truck and a passive vehicle resource for your trailer. You have maintained the necessary settings in the customizing for your transportation unit type. The trailer must have been coupled to the truck before the execution of warehouse tasks. Multiple (Delta) Updates



As a new feature, it is now also possible to transfer multiple updates. It is possible to receive a new (delta) Loading/Unloading Report in SAP TM from SAP EWM. The Loading/Unloading Report contains only new or updated information of the already loaded or unloaded handling units. Enhanced Discrepancy Handling It is possible to react to discrepancies reported from SAP EWM with different actions, which are supported from a POWL. Support of late FU Splits (in Execution) It is possible to react to warehouse confirmations with FU splits, even when execution has already started. Backward Propagation Confirmation data from SAP EWM can be propagated backwards to predecessor documents. Support of SAP EWM Handling Units across Freight Units It is possible to process SAP EWM handling units that include items of several freight units (Cross FU-Handling). Cross-System Document Flow The document flow of the freight order, freight booking, or trailer unit was enhanced with SAP EWM entries. It is possible to navigate directly to the corresponding SAP EWM transaction from the SAP TM document flow. Search Documents by Handling Unit ID It is possible to search for freight documents using the SAP EWM HU ID. LESSON SUMMARY You should now be able to: •


•


•




Unit 6 Lesson 6 Generating Outputs

LESSON OVERVIEW In this lesson, you learn about the control of output documents in SAP TM, which are essential to maintaining a smooth and transparent transportation process. LESSON OBJECTIVES After completing this lesson, you will be able to:

•

Generate outputs

O utput M anagem ent

Whether managing orders, planning, subcontracting, executing shipments or settling freight orders, each of the users and managers involved need task documentation, or need to be notified of the progress of a task. In addition, users need to preview or review the results of business process activities and generate automated outputs in response to various business events. SAP TM output management is an important player in keeping your business processes flowing and in sync. Automation is key but it is also possible to revert to manual control of printing, faxing, and e-mailing output documents.

Note: A bill of lading is a document that serves as a receipt or contract between shipper and carrier. It carries information such as shipper details, consignee details, details in relation to the goods being transported, PO number, and so on.


307



Figure 147: Output Management

SAP TM is equipped with several standard output types, such as external communication and alert notification. Several other tools and methods may also be utilized. For external communication, your business can use standard printing, fax, and e-mail with a document preview option. For internal communication, alert management options are available, and workflow can be used to pass requirements from one business process step to another. Communication with B2B systems is also available in situations such as tendering freight orders when a bidding or purchasing activity is present. Bl data uploads can be executed to provide management reporting on various documents like freight units, freight orders, and freight bookings. Various order events can trigger communication to event management systems to make cross system activities transparent. While SAP TM has its own internal status, when integrating with systems such as SAP ERP or EWM, cross-system communication is necessary to gain visibility of the big picture.



Output in SAP TM Documents C u sto m er (E x te rn al System )

----------------------\ Create and Send Order

LSP (SA P TM )

C arrier (Third Party)

J

\__________ ^ Receive Confirmation

L___________ J

LSP (SA P ERP)

S e ttle m e nt, Invoice Verification

Transfer Forwarding Order Confirmation via B2B

Transfer Freight Settlement Document via A2 Com munication

Print/Email/Fax Freight Settlement Document ,

P rint/tm ail/F ax, HA W B, M AW B M aster Air W aybill Labels for Pkg, Shipping M anifest C M R Road W aybill (Europe) V IC S Road W aybill (U .S .) House S e a Bill of Lading

Confirm Order, Provide Tracking Updates

M aster S e a Bill of Lading

Figure 148: Applications of Output Management

The figure Applications of Output Management depicts a possible example of output management using SAP TM in an LSP scenario. Once a customer places a transportation request with a freight forwarder, a forwarding order is created. The confirmed forwarding order documents can be printed or sent to the customer by email. If necessary, this can trigger a workflow process to seek management approval. This could be the case if you wanted to ship a product to a country that may be subject to government sanctions - the legal department would therefore need to review it before it ships. Once planning is complete, the freight forwarder can tender the shipment to a carrier via B2B or other means. This could include a request for quote, particularly if this type of job has not been contracted before, or if costs have undergone significant change due to economic conditions. The carrier can reply using conventional or electronic means, depending on the technology available to them. Once the order has been shipped in SAP TM, the settlement documents can trigger the generation of freight invoices, and (if the costs that were agreed are relevant) the invoice verification process can be activated. Output Management Features

SAP TM can generate various different outputs. Outputs can be scheduled at various times and later executed depending on the business scenarios and the lifecycle status, and start conditions. This can also be done manually from the Ul. Outputs can be partner-dependent or independent. Partner-dependent output is triggered based on partner data from the business documents. Actions and output parameters can be set as per business partner (in transaction BP) for partner-dependent outputs. Users can preview or print documents such as bills of lading, master airway bills, house bills of lading, shipping instructions, and packing labels.



Freight Order

Settings

O u tp u t M a n a g e m e n t

S chedule C onditions

^

&

Attachm ents

Figure 149: Output Management Features

Output Management Activities

Within SAP TM documents such as freight units, freight orders, forwarding orders, and freight bookings, you can view and manage output using the Output Management tab. The following activities are possible: •

Choose output medium - print, fax, e-mail

•

Modify output parameters like printer, number of print copies, language, recipients

•

Enter an e-mail subject and (personalized) mail content

•

Add attachments

•

Activate and deactivate outputs

•

Edit documents before execution (in case of interactive forms)

The outputs that can be generated for a business document are defined in an output profile, which is assigned in the business document type Customizing. Processing Multiple Orders In the case of a forwarding order, you can select multiple orders from the worklist. You can then choose the actions for which to execute mass outputs, and perform mass execution of the unprocessed actions. You can choose which output device to use from the profile data or the Post Processing Framework (PPF) configuration. Print Documents In the standard system, you can use an automated output for printing documents that are based on freight bookings. You can also manually print documents based on freight bookings. For example, you can use the print documents in the following list with the Air Freight Booking business document.



Print Documents for an Air Freight Booking

•

Cargo manifest

•

Cargo manifest with addresses

•

House air waybill

•

Loading/unloading instructions

•

Master air waybill

•

Master air waybill label

•

Security manifest

•

ULD manifest

•

ULD tag

You can use the print documents in the following list with the Road Freight Orders. Print Documents for a Road Freight Order

Road waybill (Europe) Shipping instruction Label for packaging Shipping manifest Road waybill (US) In addition, there are print documents for forwarding orders, freight units, and sea freight bookings. LESSON SUMMARY You should now be able to:•

•

Generate outputs



Unit 6 Lesson 7 Monitoring Transportation Events

LESSON OVERVIEW The shipping process involves activities and procedures spread across several distributed systems. From a monitoring perspective, this increases the challenge of successfully monitoring the progress of individual parts of the overall process. In this lesson, you will learn how your company can overcome these difficulties by using the SAP Event Manager (EM) tool. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•


Event Management Nowadays, supply chains are global and complex. End-to-end supply chain visibility is one of the key factors in efficient supply chain operation and control. SAP Event Management is the only application needed to provide this visibility, since it is available to all partners, including customers. SAP Event Management can also work with multiple SAP and non-SAP applications.

In terc o n n ec te d o p era tio n s of bu siness p artn ers i ■

Increasing cross-com pany dependencies requires advanced IT

N eed to coo rd in a te acro ss m ultiple IT e n v iro n m e n ts i

Multiple E R P and S C E systems

■

Multiple government and 3rd party system s

■

Multiple technologies and architectures

Not just shipment status, but operational, inventory, P O S , and demand data

| Figure 150: Visibility Across Business Partners And IT Environments



As companies expand their suite of IT products to handle more complex scenarios, they often have to add systems to their ERP environment. This makes it difficult for business users and management to gain a complete view of end-to-end processes and monitor potential service issues. Therefore, it is imperative to have a tool that can incorporate information from several systems and provide insight into how order fulfillment is progressing. SAP Event Management makes processes, assets, and performance visible across the entire supply chain. Extensive tracking and tracing functions allow process monitoring, automated exception resolution, proactive alerting, as well as extensive reporting in a single solution. The event management system is designed to work with several SAP ERP instances, if necessary. It can communicate with SAP CRM, where sales orders may be received, and this communication is processed back to the customer to support order fulfillment. SAP Advanced Planning and Optimization (APO) may be responsible for creating the replenishment plan. SAP ERP or SAP Manufacturing Execution (ME) may be responsible for communication and tracking progress on the shop floor. SAP EWM (Extended Warehouse Management) may be responsible for the picking and packing as part of the logistics execution. Event Management in SAP TM

SAP Event Management offers visibility processes to monitor transportation execution in connection with SAP TM. The transportation execution visibility processes enable users in roles such as transportation dispatcher, shipper, or ordering party, to track and monitor planned events or to report an actual event. Tracking and tracing is provided for the following business document types in SAP TM: •

Freight unit

•

Freight order

•

Freight booking

•

Transportation unit

•

Resource

•

Instruction execution for standard operating procedures

In each case, the goal is to manage by exception, reduce time to action, and spend less time fire fighting.



Event Management Process 1. Monitor

ADAPTIVE Learn

Sim ulate C ontrol

P a rtn e r P e rfo rm an c e

P lan /S ch edu le

I

C o lla b o rate

f

e

4. Analyze

3. Adjust

Figure 151: Related Events - SAP Event Management

Monitor, notify, analyze and adjust - these are the four cornerstones of SAP Event Management, and they contribute to providing an adaptive solution. The monitoring process collects data from the various source systems. Notifications can be set up to be triggered, with alerts sent to the parties responsible if a process deviates from its anticipated course. Based on the alerts, the appropriate parties can then simulate adjustments and make any necessary changes. Finally, in relation to analytics, SAP Event Management can be tied into the SAP NetWeaver BW environment to support transportation management reviews.



Event Types

1______ I

I

____

J i . _

R ea l-W o rld O p eratio n s ______ K /

m No POD sent

U n ex p ec te d E ven t

U n rep o rted E vent

E x p ec te d E ven ts (P ro c es s M ilesto n es) C a rg o R e c eip t

A

s a

I O n -B o a rd C o nfirm atio n ^

P ro o f o f d elivery

P ro c es s L ifecycle in O p eratio n al System

Figure 152: Monitoring Types Of Events

SAP Event Management is capable of processing several different types of events. Within a given process, you have events that you expect to happen, and events that actually happen. Typically, you want to compare the actual event against what you expected, as follows: •

Regular Event The first type of event is an event that you expect to happen within a particular time frame, and it happens as expected. This is a regular event.

•

Overdue Event This is an event that you expect to happen within a particular time frame, and it happens outside the expected time frame. An overdue event can cause a subsequent event to be rescheduled, or it could just be recorded as an overdue event.

•

Unexpected Event The third type of event is one that is unexpected. This could be a truck that breaking down or a malfunction in a piece of equipment: something that could potentially have an effect on subsequent events, causing something to be rescheduled or another action to be taken. An unexpected event could trigger an alert or another type of notification.

•

Unreported Event In this case, you expect an event to occur within a particular time frame, but for whatever reason, it is not reported. It is possible that something still needs to happen following this event, so you could set a time limit that sends a message or triggers something to happen when the event is unreported for a certain time period.



SAP TM Monitoring Scenarios Transportation operations is an area in which transparency is crucial, especially in those cases where lengthy transportation times have to be considered, such as when shipping overseas. To ensure customer satisfaction, it is more important than ever to keep full control of what is going on, even if parts of the business process may run outside your company's sphere of influence. Visibility processes for transportation management offer preconfigured, out-of-the box content for transportation operations, supporting you in tracking relevant activities within and beyond the confines of your company. You can monitor different processes and business documents, such as freight units, freight orders and freight bookings. Depending on your role, you can choose different layouts for the user interface, such as shipper and consignee, which result in a comprehensive and easy to understand view of transportation operations. S h ip p e r / C on sign ee (Ordering Party / Transportation Dispatcher)

S h ip p e r / O rd e rin g P arty

C onsignee

Transportation Execution Visibility Forwarding

ERP Order

0 fl Loc A

Freight/Transportation Units

° rder

9

Freight Booking

Freight Order

l

3

Loc A

Loc Z

Loc B

Loc C

Loc Z

Clear Customs Delay

I I I £ I

Loading/ Arrival/ Arrival/Unloading*/ Arrival/Unloading/ Pickup/ Unloading*/ Loading*/ POD Departure Loading*/ Departure Event Handler for Departure

Delay/Damage ■

Kl S c h e d u le d

* optional

■

I

I

Loading/ Arrival/Unloading*/' Departure Loading*/Departure

Freight Order/Booking .

I Arrival/Unloading

Event Handler for Freight/Transportation Unit

Figure 153: Visibility for Transportation Execution

The figure Visibility for Transportation Execution depicts a realistic scenario in which SAP TM and SAP Event Management can be integrated to monitor an end-to-end international order. In the first step of the process, the order is created in SAP ERP and sent to SAP TM. At this point, a freight unit is created and scheduling can begin. Initial SAP EM Events

The initial events in SAP Event Management are created as shown in the figure Initial SAP EM Events.



L o a d in g S h ip m e n t d e p a rtu re fro m s h ip p in g f a c ility A r r iv a l a t c u s to m s O ff-lo a d in g o f tr u c k in g c a r r ia g e L o a d in g o n to th e c o n ta in e r s h ip D e p a rtu re o f th e c o n ta in e r s h ip A r r iv a l a t d e s tin a tio n p o rt U n lo a d in g o f c o n ta in e r fro m s h ip L o a d in g o n to c a r r ia g e D e p a rtu re fro m p o rt A r r iv a l a t c u s to m e r lo c a tio n

Figure 154: Initial SAP EM Events

Process Flow

Business document creates event handler Received events update business document data

Business documents send events User queries retrieve tracking data

SAP TM

SAP EM

Freight Order Created

Freight Order Event Handler Created

Update Freight Order

Event Loading

Confirm Departure

Event Departure

Query and Display FOR Status

Retrieve Freight Order Tracking Data

Events trigger notifications

Overdue events raise alerts

Carrier reports loading

Carrier reports departure

Carrier reports j import arrival

Event Clear Customs Alert Delay

:l Delay

Consignee Notification

Figure 155: Visibility Processes for Transportation and Event Management — Process Flow

The figure Visibility Processes for Transportation and Event Management - Process Flow shows a typical scenario in which the SAP EM and SAP TM systems are updated to accurately reflect the real world progress of a freight order.



A le r t s

During the loading process, SAP ERP or SAP EWM may send a signal (notification) that there is a delay in the loading process. This can trigger an alert. The transportation planner may have to make adjustments to the schedule to ensure that the container makes it to the ship on time. Once the ship has left the departure port, GPS updates may indicate that the ship has not reached its midway point. This could be due to weather or mechanical issues. The customer service agent can be notified and can contact the customer to inform them of anticipated delays. Due to the alert system, the planning team does not have to watch over every order. They can spend most of their time managing exceptions. Event Message

Short Message

Voice C a p a b ility

If event code = ‘Delay’ then inform partner

\

1i\U

E-Mail I B5BBE1H c«*

ua

—«** rnrm-* ;

P. IA 0

ir *:

I ttrU y a d M v x o# y iM w j w 10054

O s a r M r S m ith . unfuM utiaatwIy y o u r urdw r 1 0 0 3 4 c u n r iu l L « i j v l i m v i j o n tm iw W o a p o lv g lz * fo r ttny in c o n v w n m n c ii c « u « « d B e s t r e g a r d s . Y o u r S u p p l ie r

Figure 156: Alerting Business Partners

Note: The alert framework is provided as part of SAP NetWeaver Application Server. The application must define its own alert categories and implement the triggering of the alert instances to realize Alert Management. Alerts can also be triggered by external alert providers. They are sent to the alert inboxes of the alert recipients, but can also be sent through other channels, such as e-mail and SMS, or sent to external alert systems. You must configure and schedule the processing of the alerts to meet your requirements.

SA P E vent M a n a g e m e n t Ul

SAP Event Management is delivered with out-of-the-box content for transportation operations and global trade. Users can save their favorite searches on the Web Ul. In addition, an archiving concept and logic tailored to high volume processes are available. Archived data can now also be accessed from the Web Ul.



The SAP Event Management Web front end can be configured easily, and includes the following elements: •

Selection screen

•

Results list

•

Details display

•

Event details display

•

Event messages that can be sent

M obile Tracking and Tracing

Business Process SAP T ra n s p o rt T ra cke r SAP TM

m

Receive Freight Order /Tour

Execute Tour

Send Status via Events

Figure 157: Mobile Tracking And Tracing*•

With the SAP TM Notifier App, you can display freight order details and report the status of your delivery using predefined events on your mobile device. Mobile devices provide planning information for the driver, and execution information back to the planner from the driver. Mobile tracking enables users by being able to do the following: •

Display open freight orders that are valid within a certain time frame

•

Display details of a freight order

•

Display details of a stop

•

Display freight units for a stop

•

Display events for a stop

•

Display information about a freight order on a map

•

Confirm an event for a stop after completing the corresponding activity



•

Report a delay for an event

Event Handling in the Collaboration Portal

The SAP Transportation Management collaboration portal for carriers (SAP TM Collaboration Portal) supports collaborative business processes. As a carrier working with several shippers that use the SAP TM collaboration portal, you have separate access to each of your shippers. In each case, you can work only with this one shipper. The main benefits of the SAP TM Collaboration Portal are as follows: •

Small and mid size carriers do not need to have SAP TM installed.

•

The SAP TM Collaboration Portal is a full browser-based solution, which means that the carrier does not need access to shipper's network (for example, a VPN connection).

•

All common browsers are supported (Internet Explorer 9, Mozilla Firefox, Safari, Google Chrome).

•

The carrier does not have to install anything, but just log in into the collaboration portal with the access (logon and password) provided by the shipper as SAP TM Collaboration Portal owner or host.•

•

The carrier can see only request for quotations (RFQ) assigned to it, and the transmitted quotations.



•

To increase the usability of the portal by the carrier, user settings in the portal are stored and are available after logging on again.

Event Notification and Handling

Shipper/ ................................- .. n . Carriers ight Forwarder

Freight Agreement Mgmt.

Request for Agreement processing

Freight Order Mgmt.

Freight Request for Quotation processing Freight Quotation overview Event notification and handling

Freight Settlement

S e l f b il li n g c h a r g e v e r i f ic a t io n

Carrier invoice submission Dispute resolution Figure 159: Event Notification and Handling

Since the introduction of the Collaboration Portal, new functionality has been added to the portal. One of the newer functionalities in the area of freight order management is event notification and handling. It enables carriers to report expected (planned) and unexpected events related to a freight order or the stops of a freight order, to the shipper.



Freight Orders for Execution tAP Tmuporutum HUiugunw* ceflaboraooRpcrui HOME

FRFK»MT OROFR M A N A U FlC N T

F R F k .NT SF T T lF b fN T

F R F IfiH T A6R FFM FN T M A N A ftfM F N T

Freight Order Management

ftmfi QuoUfcon*

fmr**RFOt

8

1

open

SAP Transportation Management cotlaDoratJ

HO M E

F R E IG H T O R D E R M A N A G E M E N T

Frfght Requests for Quotation

Confirm Next

Status

FR E IG H T SE TTLE M E N T

Freight Quotation*

Quick F A tr

O pen

C loved

Freight Order 61000000042001

Evam Handxg

F reight Tendering

Freight Tcndorng

255

U0M

FR E IG H T A G R E E M E N T M A N A G E M E N T

Freight O n le r* for EKKUtlon

C *n c *fe d m

W*

»

n

i Next Open Event um oadng Begin At in o u ttn * S upQ tev me. On September 10 2014 at 7 24 PM CST

61000000042002 V

61000000042003 V

61000000042005

Loading Beg n At C P M C h e n x a ts On Septem otr 1 5 .2 0 1 4 at 9 2 4 PM CST

Figure 160: Freight Orders for Execution

Carriers enter the SAP Transportation Management Collaboration Portal on the Home screen. This screen displays a worklist with the key performance indicators (KPIs) for the available areas in the form of tiles. From the tiles, shippers can navigate to the individual areas to continue their work. The area of freight order management has been enhanced with a tile for Event Handling. The tile displays the open freight orders for execution, for which events still have to be reported, if necessary. The Freight Orders for Execution subscreen gives an overview of all of the freight orders assigned to the carrier. The list can be filtered by the freight order status, and the individual freight order for which an event should be reported can be selected. The locations where the events occur can be displayed on a map, or the sequence of locations can be displayed in a numbered list. The list supports sorting, searching for freight orders, and filtering. You can apply a quick filter in the toolbar to filter the freight orders by the status of the event confirmation to show only open freight orders (Open), freight orders for which all the planned events have already been reported (Closed), or freight orders that have been canceled by the shipper (Canceled). The next planned (Open) event is displayed for each freight order, together with the affected locations and the date and time. By selecting a single row in the list, the next open event can be directly reported.



Unit 6 Exercise 18 View the Events of a Freight Order

Business Example Carol, a transportation consultant, has been retained by the ABC company to help them implement the SAP TM system. Carol must explain how the company can use SAP Event Management with SAP TM to monitor transportation-related events. 1. At this point, you have taken several orders and begun planning the freight units and their respective freight orders. Examine the expected events and how they can trigger an information flow to SAP EM to monitor the ongoing process of shipment planning. Open the freight order you created in the previous exercises and choose the Execution tab. 2. How many events are expected? List them.

3. Which events can be captured at your facility?

4. Review the planned dates. What is the origin of these dates?



View the Events of a Freight Order

Business Example Carol, a transportation consultant, has been retained by the ABC company to help them implement the SAP TM system. Carol must explain how the company can use SAP Event Management with SAP TM to monitor transportation-related events. 1. At this point, you have taken several orders and begun planning the freight units and their respective freight orders. Examine the expected events and how they can trigger an information flow to SAP EM to monitor the ongoing process of shipment planning. Open the freight order you created in the previous exercises and choose the Execution tab. a) In NWBC, choose Freight Order Management -> Road -> Display Freight Order. Open the freight order you created in the previous exercises and choose the Execution tab. 2. How many events are expected? List them. There are typically 8 expected events, as follows: Loading Begin; Loading End; Departure; Proof of Pickup; Arrival at Destination; Unloading Begin; Unloading End; Proof of Delivery. Note that events may be repeated at different customer locations.______________________ 3. Which events can be captured at your facility? Four events can be captured as a result of SAP ERP integration, since they occur at location 3100. The other events are expected for external locations and might be reported by external partners such as the carrier or customer.___________________________________________ 4. Review the planned dates. What is the origin of these dates? These dates are the result of transportation planning.



LESSON SUMMARY You should now be able to: •


•


•




Unit 6 Lesson 8 Exporting a Freight Order

LESSON OVERVIEW As global markets become more prevalent, the requirements for international shipping will increase. The number of government regulations increase when you cross international borders. The SAP Global Trade Services (GTS) system is designed to improve the process of international shipping with regards to your ERP system. In this lesson, we will discuss the integration between SAP TM and GTS. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


International Shipm ent

Figure 161: Goods Movements Across Borders

In contrast to domestic trade, foreign trade is monitored by governmental agencies. Regulatory agencies check whether imports and exports are permitted under foreign trade law and issue any licenses that are necessary. All international goods movements also have to be reported to the appropriate customs offices, either using manual or electronic means. When goods are imported, import duties are imposed in the form of duties or specific taxes. When you are performing international business transactions, you usually have to submit specific documents - in addition to the standard accompanying documents used in domestic business transactions - such as commercial invoices, shipping documents, and packing lists. For example,



the authorities in many destination countries require certificates of origin from authorized public institutions, such as chambers of industry and commerce. If you wish to claim preferential treatment when paying import duties (tariff preference), you have to present appropriate proof of origin (for example, a movement certificate) to the competent customs office.

Global Trade Services (GTS) For many companies, the import and export of goods is essential in numerous everyday business processes. The purchasing department orders goods for the company's warehouse, or for end customers, from vendors that are based abroad, and the sales department processes orders from foreign customers. These orders are subsequently delivered using transit procedures. However, it is necessary to consider international restrictions and requirements prior to the execution of transportation. This is where SAP GTS and SAP TM integration can be used. Measures against international terrorism, and the decline in paper-based communication brought about by electronic procedures have had far-reaching effects on our requirements for systems that model foreign trade processes. Not only is SAP GTS able to fulfill the considerably stricter requirements of foreign trade law, it can also connect the processes in your system to electronic customs procedures.

Company

Outside world

System 1

System 2 GT System 3

System N Business partner Figure 162: Integration of International Shipments

SAP GTS serves as a central gateway to the world of foreign trade. While complex system landscapes often made data redundancy and manual processing unavoidable, SAP GTS unifies and centralizes import and export processes. All the data required for carrying out foreign trade transactions is contained in SAP GTS in bundled form. SAP GTS also takes care of communication with the authorities and, if necessary, with foreign trade partners. Compliance This unified procedure makes it significantly easier to achieve 100% compliance with legal requirements. It thus reduces the risk of a company incurring sanctions by inadvertently breaking the regulations; a major advantage, considering the often draconian nature of such sanctions. The connection to electronic customs procedures greatly speeds up import and export processes. All the relevant documents can be systematically archived and retrieved for the purpose of external audits.



The Compliance Management, Customs Management, Risk Management, and Electronic Compliance Reporting solutions manage all cross-border goods receipt and goods issue processes, regardless of the type of feeder system. You can use Compliance Management as early as the purchase order creation stage of the purchasing process in the feeder system to check whether the planned import is permitted and, if necessary, stop the order from being processed further. If the import is permitted, but requires a license from an authority, the license can be applied for in good time and stored in the system. Sales staff can use Compliance Management when putting together a request for quotation or an order to determine whether they are permitted to make a delivery to a particular customer. If a license is required for an export, you can apply for the license from the authorities and manage it in the system, just as you do in the import process. Compliance During Export and Import

When goods are being exported, staff in the export department can create the documents or messages required for carrying out the customs procedure (export procedure, transit procedure) directly from Customs Management and then send them to the authorities. Depending on the country of destination, you should also execute a preference determination for the product to be exported in Risk Management: If you can export goods as originating products, the customer pays considerably less import duties due to tariff preferences. This strengthens your competitive position. You may want to use a letter of credit to guarantee payment by the customer. Risk Management supports the processing of payment transaction documents. In the import process, Customs Management supports the technical department to communicate with the authorities while the goods are placed under a customs procedure. If you are a consignee in the electronic transit procedure, you can create the messages required to discharge the procedure in Customs Management. Customs values can also be calculated for every import consignment. If you are located in the EU and have obtained goods from another EU member state, or have delivered goods to a customer in another EU member state. Electronic Compliance Reporting enables you to transfer the statistical data about these intra-community goods movements.



GTS Data Exchange

Order and Delivery Integration (Service)

Figure 163: SAP GTS With SAP TM System Landscape

The SAP GTS system was first designed to work with the SAP ERP logistics execution environment. Now that SAP TM is replacing SAP ERP functions with advanced techniques, we need to discuss integration between SAP TM and SAP GTS. The SAP ERP system will still represent the backbone of your enterprise and act as the communication hub. SAP ERP will act as the repository for master data and send product masters to both systems. SAP TM and SAP GTS integrate on an event-driven basis. As transportation requests are received by SAP TM, they are planned taking international shipping requirements into account. As freight orders are released, they trigger processes in SAP GTS that generate the necessary export paperwork to comply with any government regulations.



International Shipping with GTS C u sto m e r S h ip p e r

C ustom s O ffice

T ra n s p o rtio n R e q u e s t, w ith E x p o rt LD e claratio n by LS P

Figure 164: International Shipping with GTS

Integration with Global Trade Services is an event-driven process. The first step in the international shipping process is the transportation request with export declaration by a logistics service provider (LSP). A forwarding order with export declaration is then created in the SAP TM system. The forwarding order is processed in freight units (FU) that signify the shipping requirements, and is planned and possibly grouped into a freight order (FO). This triggers an event in SAP GTS to process the necessary customs documents. Finally, the freight order is updated with the relevant customs information and the order status changes to released for execution. LESSON SUMMARY You should now be able to: •




Unit 6 Lesson 9 Analyzing SAP Transportation Management Performance

LESSON OVERVIEW In order to manage any business, supervisors and managers rely heavily on reports, Key Performance Indicators (KPIs) and metrics. These show how well or poorly business processes are performing, and give an indication where adjustments need to be made. In this lesson you will review what options are available in SAP TM to provide the necessary tools to review business performance. LESSON OBJECTIVES After completing this lesson, you will be able to:

•

Execute a query

•


Transportation Management Analytics Analytics is the use of computer technology, operational research, and statistics to solve problems in business and industry. It is performed within an information system, and aids the process of making optimal or realistic decisions based on existing data. Online transactional processing (OLTP) refers to the type of processing typically performed in an SAP ERP or SAP TM system. The reporting necessary in this type of system often refers to information requirements for day-to-day work. List displays enable you to request a listing of documents or master data, as well as combinations of these objects (characteristics). List displays are reports that access data that is generated directly from online transactions. From these lists, you can then access the source documents directly. It is also possible to use information structures to aggregate data for simple operational analytics. This varies greatly from the reporting used in an online analytical processing (OLAP) environment. Analytical systems must provide information that the management of an enterprise needs to make business decisions.



Analytics in SAP TM

A complete business intelligence solution is subdivided into various areas. SAP brings together a powerful business intelligence infrastructure, a comprehensive set of tools, planning and simulation capabilities, and data warehousing capabilities, delivered through enterprise portal technology. This enables strategic analysis and supports decision making within a company. Authorized employees can access and evaluate historic and current data in different levels of detail. SAP TM will take advantage of several analytical tools such as Bl Queries, Dashboards, and the Business Context Viewer. All of these tools will use the data collected from SAP TM documents such as freight units, freight orders, and booking orders. Each of the different order types need to be activated for Bl integration to upload data to the relevant InfoProviders.



Delivered Bl Content 5 InfoCubes

30+ Master Data InfoProviders

3 MultiProviders

15+ Data Store Objects

Figure 166: Delivered Bl Content

BW is delivered with standard business content for shippers and LSPs. The InfoArea 0SCM_TM contains all the InfoProviders related to SAP TM, as follows: •

5 InfoCubes - InfoCubes collect data from single objects, such as freight units or freight orders, and allow various metrics to be calculated on these objects.

•

3 MultiProviders - MultiProviders are designed to bring data in from more than one object in real time. They are often considered a virtual provider since data may not actually be stored here, but rather housed during the query process.

•

30-plus Master Data InfoProviders - Master Data InfoProviders allow business users to run queries against configuration such as document or order types.•

•

18 Data Store Objects - DataStore objects allows queries to be run at the order or document level. This kind of query is used to show the current status of a document that is in the middle of processing.



SAP Queries Tra ns p o rta tio n R eq u e st

T ra n s p o rta tio n A llocation

TM R ev en u e A nalysis

Customer Analysis

Transportation Allocations by Carrier

Planned Revenue per Customer

Party/Location Analysis Tra ns p o rta tio n O rd er

Carrier Analysis Transport Analysis Stage Analysis

Carrier by Transportation Allocations

Planned Revenue for Top 5 Customers TM C o st A nalysis

B u sin ess S hare

Carrier by Business Shares Business Share by Carrier

Planned/Actual Costs per Transport Planned/Actual Costs per Transport - Details

Tra ns p o rta tio n O rd er Execu tio n

T rade Lane A nalysis

Delivery Reliability

Transported W eight per Trade Lane

Costs by No. of Units shipped per period and mode of Transport

Unexpected Events Analysis

Trade Lane Analysis per Transport

Costs per Carrier

Duration Analysis

Carrier Analysis by Trade Lane

Expected Events Analysis

Emissions per Trade Lane Figure 167: Sample Reporting Content for SAP TM•

A sample of SAP-delivered queries (OTMS-MP_Q...) are mentioned here: •

Business Share by Carrier

•

Costs by No. of Units Shipped per Period and Mode of Transport Costs per Carrier

•

Planned Revenue for Top 5 Customers

•

Trade Lane Analysis per Transport

•

Emissions per Trade Lane

•

Customer Analysis

•

Stage Analysis

•

Unexpected Event Analysis

Note: In SAP BW, you can build out queries based on InfoProviders. The data contained in an InfoProvider can be prepared with formulas, for example, calculate the comparison of two fields as a percentage. Within the query, you can define key figure attributes that will allow users to refine the query.

Business Context Analytics The Business Context Viewer (BCV) is a predefined set of queries that can be embedded inside NWBC to provide insight and enable better decisions to be made. (It is possible to expand or add to the list of predefined queries.)



Note: The BCV is an application for embedding business content information into the context of business applications by role-dependent configuration and personalization. Context-related data, for example, the material master context, can be displayed in a side panel and in dashboards and can be used for deeper analysis.

BCV User (application-dependent)

BCV Dashboard

Side Panel

Personalization Private Configuration

•

---------i t

11P

$

A nalytic V iew

?

f

4 \

BCV Admins for Applications

t

BCV Query Query V«w

PLM

Overview

Query Views

Query View Hierarchy

Quwy view Hierarchies | Dashboards

Overviews

a

Dashboard

BCV Admin Search Connector

/

B C vQ w oes

A/ Realtime (BAPl)

■ ERP o th e r SAP

1

Embedded SeardvErterpnae Search or SESIT-REX based) M 11-ntA uosmj

b ERP

SAP Workflow

a ■ # PLM

O th e rs

BW BI Q ueries

b

■

ERP

3™ P a rty

■ ERP

Figure 168: Business Context Viewer Overview•

As a user, you have different possibilities for getting and bringing data to the Ul. The data can result from the following sources:

•

ABAP Coding (Selects from DB, Retrieves from BOPF, and so on)

•

Business Warehouse Queries

•

Infosets

•

Web Services

•

Workflow

•

Enterprise Search



Displaying BCV Queries

Rejection Reason Codes

C a rrie r A c c e p ta n c e Rate

100 80

Freight Order

f

50

Subcontracting Ranking List • • •

No Profit

C arrier_l Carrier_2 Carrier 3

60

i No Capacity

40

i Other

20

—

0 I—I

—,

Carrier_1 Carrier_2 Carrier_3

___________

Carrier_03

Carrier Ranking

Carrier_02 Side Panel Carrier 01 1

2

S

4

5

Figure 169: BCV Queries

The three pre-delivered overview metrics shown in figure BCV Queries are as follows: •

Carrier Ranking

•

Carrier Acceptance

•

Rate Rejection Codes

Query views can be displayed in the following places: •

The Query Views section of the side panel

•

Under Overview, as quick items that you can enlarge to see more details

•

Within dashboards

Using the BCV Configuration Center, you can configure BCV. The BCV Configuration Center is used to set up the search connector, the query and the query views. The query views can be combined in overviews (content of the side panel at the right side of your application) and in dashboards. It is also used to configure the Access Control Lists and it provides full support for the transportation management system.



Note: If you enlarge a query view in the main window, it then appears in “ Last Used Query Views” within the Query Views area of the BCV side panel. If you now navigate to another freight order (B) in the main window, but want to keep the information about freight order A in the side panel, you can lock the side panel using the icon. Otherwise, the side panel shows information about freight order B as soon as the user navigates to B in the main window.

Dashboard Analytics SAP Business Objects Dashboards (formerly known as Xcelsius Dashboards) deliver an enhanced presentation of the data returned by Bl. The clean design and formatting is intuitive, easy-to-read, and straightforward. To use the dashboards, you must assign the role SAP_BW_SCM_TM_XT to a transportation manager, the person responsible for executing, directing, and coordinating all the transportation requirements in a company.

Business applications normally store operative data in the form of business documents and master data. In SAP NetWeaver BW, DataSources and their extractors make it possible to access this data. DataSources provide a flat analytical view of the data in business documents, such as sales orders or purchase orders. They contain the business logic that derives an analytical view of the data from the transactional view. There are various types of DataSource: DataSources for transaction data, master data attributes, master data texts and master data hierarchies. Until now, DataSources have been used to replicate mass data from the operative system to SAP NetWeaver's Data Warehouse, SAP NetWeaver BW. Here, the data is integrated from various sources, consolidated and made available for Online Analytical Processing (OLAP). However, OLAP analyses in BW are not based



directly on DataSources. They are based on InfoProviders that provide a view of a dataset from various, semantically related DataSources (purchase order data, customer data or product data, for example). Data Provisioning

Operational Business Documents (FO/FU/FWO)

Data Providers TM Data Sources i O ) L_

Master Data (Business Partner)

o o g

Business Logic

m

BW DataSources

X

LU

M —

ODP Modeling

Transactional Data Master Data Attributes Master Data Text Master Data Hierarchy

Figure 171: Data Provisioning for Search and Analytics*•

When it comes to operational analytics, DataSources are not suitable, because they are too basic. A transaction-data Data Source does not recognize the associated master data attributes, and the DataSource for master data attributes does not recognize the associated texts. Operational data provisioning uses ODPs to allow semantically related DataSources to act as InfoProviders, so that the data is available to the analytic engine in an operational analytics scenario without the need for replication to SAP NetWeaver BW. ODP is used in the following scenarios: •

Replication to BW

•

Direct access from BW

•

Direct access in the backend system

•

Replication to BWA (TREX)

•

Replication to any (registered) ETL consumer (e.g. POAs, Mobile (offline)...)

To generate SAP-TM related ODP reports, the SAP TM DataSources are used for direct access to the data in the SAP TM application system. With the ODP technology, a TransientProvider is created on the basis of DataSources. This gives you the possibility to build BEx Queries on top of these TransientProviders. It also enables real-time reporting without the need to extract data to a separate BW system.



Unit 6 Exercise 19 Execute a BCV Query

Business Example You need to be able to deliver reports quickly and easily based on familiar, defined and oftenused criteria such as carrier acceptance rates. In order to do this most effectively, you need to be able to use BCV queries. 1. Open the freight order you created earlier. 2. Open the Business Context Viewer (BCV). 3. View the details for the Carrier Acceptance Rate query. 4. Display the query information as both a table and a chart. 5. What is the acceptance rate for carrier CARR-00-01?

6. Close the tab with the Carrier Acceptance Rate query. 7. Close the side panel.



Execute a BCV Query

Business Example You need to be able to deliver reports quickly and easily based on familiar, defined and oftenused criteria such as carrier acceptance rates. In order to do this most effectively, you need to be able to use BCV queries. 1. Open the freight order you created earlier. a) In NWBC, choose Freight Order Management —> Road —> Display Road Freight Order. b) Enter your freight order number and choose Continue. 2. Open the Business Context Viewer (BCV). a) In the title bar, click the Business Context Viewer link. 3. View the details for the Carrier Acceptance Rate query. a) In the Side Panel, choose Query Views —*• Query View List —► Unassigned Query Views —y Carrier Acceptance Rate. 4. Display the query information as both a table and a chart, a) In the Show As field, enter Table & Chart. 5. What is the acceptance rate for carrier CARR-00-01? Varies. Acceptance rate is shown as a percentage in the chart and table._________________ 6. Close the tab with the Carrier Acceptance Rate query. 7. Close the side panel.




•

Execute a query

•






Unit 6

Learning Assessment

1. Which of the following can be considered during carrier selection? Choose the correct answers. | A Internal costs B Real costs from TCM | C Business shares D Incompatibilities 2. Broadcast tendering refers to a process whereby all quotations received (in response to an RFQ) are broadcast to all carriers in an effort to improve transparency. Determine whether this statement is true or false. | True False 3. There are different methods of communicating during tendering process, one of them being mobile tendering. Determine whether this statement is true or false. | True False 4. What does a delivery document provide?



5. Which of the following methods are used for delivery creation? Choose the correct answers. | A Interactive Delivery Creation B Delivery Proposals C Background Report D Selection Profile 6. Which of the following shipment scenarios is used when transportation planning is done in SAP TM? Choose the correct answer. | A Shipment Integration Outbound B Shipment Integration Inbound 7. Place the following process steps for creating a shipment from a freight order in the correct sequence. Arrange these steps into the correct sequence. You plan the transportation process in SAP TM based on the DTRs. During planning, you create freight orders. J You send ERP deliveries to SAP TM, and the SAP TM system creates DTRs for the deliveries. J You send the freight orders to SAP ERP to carry out transportation execution. You carry out tendering for the freight orders in SAP TM (optional). 1 SAP ERP creates a shipment for each freight order. 8. To integrate SAP ERP shipments to SAP TM for freight costing and cost distribution purposes, what needs to be created and configured?

9. What does the integration of SAP TM into the SAP EWM application enable?



10. SAP TM and SAP EWM are part of the supply chain execution platform. Determine whether this statement is true or false.

□ □

True False

11. Describe the integration of transit warehousing tasks between SAP TM and SAP EWM.

12. Print documents are available for which of the following? Choose the correct answers. | A Forwarding Orders B Sea Freight Bookings | C Road Freight Orders D Air Freight Bookings E Freight Units 13. Which types of events are used when integrating with SAP Event Management? Choose the correct answers. | A Regular events B Overdue events | C Unexpected events D Unreported events



14. Which of the following would not be reported by a carrier? Choose the correct answer. | A Freight order creation B Loading | C Arrival D Departure 15. Tracking and tracing is supported for which business documents? Choose the correct answers. | A Freight orders B Freight units C Freight settlement documents 16. SAP GTS can be integrated with SAP TM for export declaration. Determine whether this statement is true or false. | True False 17. All the queries that can be run on your TM data are pre-built, it is not possible for users to create their own. Determine whether this statement is true or false. | True False 18. It is not possible to view analytics data directly in NWBC. Determine whether this statement is true or false. | True False



Unit 6


1. Which of the following can be considered during carrier selection? Choose the correct answers. [x ] A Internal costs [x ] B Real costs from TCM

[~xj

C Business shares

[x ] D Incompatibilities

2. Broadcast tendering refers to a process whereby all quotations received (in response to an RFQ) are broadcast to all carriers in an effort to improve transparency. Determine whether this statement is true or false. | True \x \ False Correct. Broadcast tendering refers to a scenario in which an RFQ is sent to multiple carriers at the same time and the responses are then evaluated. This is in contrast to peer-to-peer tendering, which is sequential. 3. There are different methods of communicating during tendering process, one of them being mobile tendering. Determine whether this statement is true or false. [x ] True False

0



4. What does a delivery document provide? A delivery document controls, supports, and monitors numerous subprocesses for shipment processing, such as picking, packing, loading, and posting the goods issue. In addition, the delivery document can be used as a reference document for the creation of other shipment documents, such as a bill of lading.________________________________________________ 5. Which of the following methods are used for delivery creation? Choose the correct answers. |~xj A Interactive Delivery Creation B Delivery Proposals |~xj C Background Report D Selection Profile

6. Which of the following shipment scenarios is used when transportation planning is done in SAP TM? Choose the correct answer. |~xj A Shipment Integration Outbound B Shipment Integration Inbound

7. Place the following process steps for creating a shipment from a freight order in the correct sequence. Arrange these steps into the correct sequence. [ 2] You plan the transportation process in SAP TM based on the DTRs. During planning, you create freight orders. |T] You send ERP deliveries to SAP TM, and the SAP TM system creates DTRs for the deliveries. [4 ] You send the freight orders to SAP ERP to carry out transportation execution. [ 3] You carry out tendering for the freight orders in SAP TM (optional). [ 5] SAP ERP creates a shipment for each freight order.



8. To integrate SAP ERP shipments to SAP TM for freight costing and cost distribution purposes, what needs to be created and configured? Create the necessary Transportation Charge Management (TCM) master data, such as agreements and rate tables; and configure the system for cost distribution and settlement functions. 9. What does the integration of SAP TM into the SAP EWM application enable? The integration of SAP TM into the SAP EWM application enables you to integrate SAP TM transportation planning with SAP ERP delivery and shipment processing and SAP EWM warehouse planning and execution._______________________________________________ 10. SAP TM and SAP EWM are part of the supply chain execution platform. Determine whether this statement is true or false. [x ] True False

11. Describe the integration of transit warehousing tasks between SAP TM and SAP EWM. You perform transportation planning in SAP TM, and then send your freight documents and transportation units to SAP EWM. In SAP EWM, you then execute the warehouse tasks, such as picking, packing, staging, and loading or unloading. You execute the settlement in SAP TM. 12. Print documents are available for which of the following? Choose the correct answers.

|~x] A Forwarding Orders [x ] B Sea Freight Bookings [x~| C Road Freight Orders [x ] D Air Freight Bookings [x ] E Freight Units



13. Which types of events are used when integrating with SAP Event Management? Choose the correct answers. |~xj A Regular events |~xj B Overdue events |~xj C Unexpected events |~xj D Unreported events

14. Which of the following would not be reported by a carrier? Choose the correct answer. |~xj A Freight order creation B Loading | C Arrival D Departure

15. Tracking and tracing is supported for which business documents? Choose the correct answers. |~xj A Freight orders |~xj B Freight units C Freight settlement documents

16. SAP GTS can be integrated with SAP TM for export declaration. Determine whether this statement is true or false. [x ] True False



17. All the queries that can be run on your TM data are pre-built, it is not possible for users to create their own. Determine whether this statement is true or false.

□

True

0

False

18. It is not possible to view analytics data directly in NWBC. Determine whether this statement is true or false. | True \x \ False Correct. The business context viewer makes it possible to view analytics data in the side panel and in dashboards. Specific roles and permissions must first be defined.





UNIT 7

Charge Calculation and Freight S ettlem en t

Lesson 1 Managing Charge Calculation Master Data

355

Lesson 2 Calculating Supplier Charges in a Freight Order Exercise 20: Calculate Charges for a Freight Order

370 379

Lesson 3 Settling Supplier Freight Charges Exercise 21: Generate a Freight Settlement Document

384 389

Lesson 4 Calculating and Settling Customer Charges in an FWO

404

Lesson 5 Distributing Costs

411

Lesson 6 Settling Freight Charges in a Group Logistics Company

416

Lesson 7 Managing a Freight Contract

421

UNIT OBJECTIVES

•

Describe a freight and forwarding agreement in transportation charge management

•

Display the elements of a charge calculation sheet

•

Describe rate tables in charge management



•

Display a scale

•

Manage master data

•

Calculate charges in a freight order

•

Generate a freight settlement document

•

Transfer freight charges to SAP ERP

•

Settle a charge in the collaboration portal

•

Identify how charges are calculated for a FWO

•

Generate a customer freight invoice

•

Settle an internal charge

•

Distribute costs

•

Describe a group logistics company settlement

•

Describe the process of strategic freight management



Unit 7 Lesson 1 Managing Charge Calculation Master Data

LESSON OVERVIEW In this lesson we will look at the master data (agreements, calculation sheets, rate tables, and scales) that governs how transportation charges are calculated for customers or suppliers. This is an integral step and must occur before the process of charge calculation and settlement is triggered. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•


•

Display a scale

•

Manage master data



Transportation Charge Management

Figure 172: Document Flow — Charge Calculation and Settlement

The figure Document Flow — Charge Calculation and Settlement shows the content of this lesson in terms of the overall document flow. Integration of Charge Management

When shipping products to customers via a third party, an organization needs to account for and recognize the costs involved in moving goods. SAP TM provides a broad and flexible calculation process. This includes identical calculation features for both customer and supplier charging scenarios. With the integration of SAP ERP, integration to the Financial Accounting (FI) and Controlling (CO) applications allows an organization to perform payment and execute billing transactions, as well as trigger the settlement process to accrue the proper transportation charges to financial accounts.



SAP TM

ERPSD

Tra ns p o rta tio n C harge P re -P ro c es sin g T ra n s p o rta tio n C h arg e M an a ge m e nt TC M P rocessin g

< & >

T ransp o rtatio n C h arg e P rocessin g

F o rw a rd in g S e ttle m e n t D o cu m e n t

Freight S e ttle m e n t D o c u m e n t)

X Transportation C h a rg e C a lc u la tio n

Account determination

T C M M a s te r D ata and Configur? tion ------------- "N \ ------------------- \ C alcu la t ------------R ate F o rw ard in g F reight ion S cale Table A g ree m en t A g ree m en t y i S h eet , v.________ 7 V j \ ___________ 7 v

/

Payment Control

/

(

R ules and C onditions

S ervice Entry S h eet Integration FI/CO Account determina-tion Accruals Invoice verification Self-Billin

Figure 173: Integration Of Charge Management

Freight Agreement



The figure Document Flow — Charge Calculation Master Data isolates the steps involving freight and forwarding agreements in the context of the overall document flow. Structure and Contractual Data Freight/ Forwarding Agreement

Figure 175: Freight/Forwarding Agreement Structure

Freight agreements (FAs) and forwarding agreements (FWAs) are the basis for calculating transportation charges. You use FWAs to calculate transportation charges billable to your customer and FAs to calculate transportation charges billable to you by your carrier. Both agreement types are integrated fully with calculation sheets. An agreement includes contractual data, such as the following:

Organizational unit (for example, sales or purchasing organization) Involved parties (for example, ordering party or carrier) Terms of payment Validity dates Freight/Forwarding Agreement Structure

The system determines the agreement based on organization, business partner, validity period, and preconditions. An agreement is most commonly determined by the purchasing organization and business partner (Carrier for Freight Agreements, Customer for Forwarding Agreements). In the Freight Agreement Type Customizing activity, you can configure whether one or multiple partners can be entered in the agreement. That is, if you have one freight agreement with a carrier valid for multiple purchasing organizations.



• Validity D ates • C u rren cy

Agreement Header

• N otes and A ttachm ents • Version • Status • G en eral Term s (scope, preconditions) • O utput M a n a g e m e n t

• Validity • Calculation S h eet • Preconditions • Allocations and B usiness S h ares

Agreement Item

• G en eral Term s (paym en t term s, scope) • D im ensions (relevant for C E P ) • C apacities • C om m odities • Transit T im e (relevant for D S O )

________________________________________________ Figure 176: Agreement Overview

Freight Agreements

Freight agreements represent a long-term contract between a shipper or LSP and a carrier or supplier. Freight agreements can be determined based on purchasing organization and carrier. (Additional preconditions can also be defined, if required). Each agreement can point to one or more calculation sheets (CS).The freight agreement is connected to a CS and the costs (freight charges and advice fees) used in the assigned CS are visible in the FA.

Forwarding Agreement Forwarding agreements represent a long-term contract between a shipper and a customer who agrees to pay the contractual freight charges as reflected by the forwarding agreements. Agreements contain validity information, as well as organizational data and the relevant partners. The system determines the agreement based on preconditions. Agreement determination is based mainly on the partner relationship and the sales organization. You define which partner roles are relevant to the agreement in Customizing for Transportation Management. These roles are assigned to an agreement, and contain charge elements that will be applied. This helps to bill customers for transportation services and pay suppliers or carriers for subcontracted transportation services.

Forwarding House Agreement The forwarding business requires forwarding organizations (for example, a branch or department) to act as a sales organization towards customers and as a purchasing organization towards the carriers from which they purchase transportation services. This requirement is met by an organizational unit function which provides both the sales and purchasing capabilities in a single organizational unit. Internal Agreements

The forwarding house combines the functionalities of both a purchasing organization and a sales organization. This internal organization is created when organization and staffing is being set up



and requires the creation of internal agreements (NWBC Master Data —>Internal Agreements). These internal agreements are set up for internal settlement, as follows: •

Intracompany Settlement Settlement between internal organizations in the same company code.

•

Intercompany Settlement Settlement between internal organizations in different company codes.

Charge Calculation Sheet

Depending on how a shipment will be transported, various charges may be incurred for different means of transport. In SAP TM, companies can create calculation sheets that reflect all possible charge elements for a given carrier or customer. These charges essentially mimic the terms of the freight contract. The calculation sheet (CS) is a hierarchical table used to calculate transportation charges. The calculation sheet combines the charge types permitted for a document and the sequence in which the system takes these charge types into account during the calculation. The system uses the calculation sheet to specify which transportation charges to calculate and how to calculate them. This helps to bill customers for transportation services and to pay suppliers or carriers for subcontracted transportation services. The calculation sheet points to charge items and each charge item can result in a calculated amount. The calculation sheet includes transportation charge elements, subtotals, and totals.

Line Number Charge Code Charge Code Description

Base

Rate

'10

FAK

FAK Base freight

Root

RATE_TABLE_BASE

So

BAF

Bunker Adjustm ent Factor

Root

RATE_TABLE_BUNKER

So

CAF

Currency Adjustm ent Factor

FAK

4% (Line 10)

DTHC

Destination Terminal Flandling

Container

30.00 USD

!50

DISPS

Destination Security Surcharge

60

SUM

W

~

1% (Line 40) Line 1 0 - 5 0

Figure 177: Calculation Sheet

C a lc u la t io n S h e e t M a in t e n a n c e

Calculation sheet maintenance is a step in the process of setting up master data in the Charge Management and Service Product Catalogs component and is integrated with agreements, rate tables, and scales. You can use the master data cockpit to access an overview of the charge management master data per organizational unit, business partner, and charge type. The system also shows the relationship between the different types of charge management master data. You can use a template to create a calculation sheet and calculation sheet line items.



General Data

Hierarchy Items

• Charge Usage: Custom er Or Service Provider • Status

• Instruction • Rate Table / Charge Type Details • Rate Table Details and Instructions

Administrative Data

Precondition & General Terms

• Created/Changed by

• Conditions: Precondition such as trade-lanes or partners or BRF Conditions • Paym ent terms • General Terms: Shipping Type, Service Level, Transportation Mode, Service Level

Figure 178: Overview of Calculation Sheets

The calculation sheet is hierarchical table to calculate transportation charges. It combines the charge types permitted for a document and the sequence in which the system takes these charge types into account during the calculation. The system uses the calculation sheet to specify which transportation charges to calculate and how to calculate them. This helps to bill customers for transportation services and to pay suppliers or carriers for subcontracted transportation services. It provides for a calculation schema showing the steps and the specifications for the charges. Based on the calculation sheet, the resulting charges, sub-totals, and totals can then be displayed in the documents. R e s o lu t io n B a s e T h e c a lc u la t io n s h e e t c a n c o n s is t o f t h e f o llo w in g it e m s :

Charge Type Rates Dimensional Weight Profile Calculation Resolution Base (for example, root, container, product, and stage) Resolution Base Grouping Rule (for example, destination location, weight, volume) In more detail, the items above refer to the following:



•

Rates contain details of the rate table for each standard charge item. It is also possible to enter fixed rates or percentages of other lines in the calculation sheet.

•

Dimensional Weight Profile The dimensional weight profile the system uses to calculate the transportation charges for the line item. The system uses the dimensional weight factor in the dimensional weight profile to convert a product's gross volume into dimensional weight. The system then uses the dimensional weight to apply the correct rate. Note that a dimensional weight profile at the line item level of a calculation sheet has priority over a dimensional weight profile in an agreement.

•

Calculation Resolution Base During charge calculation, the system determines the calculation resolution base by the origin of the data upon which the charge aspect is based. You can define the charge aspect in the resolution base objects, for example, container, product, and stage.

•

Resolution Base Grouping Rule The rule the system uses to group selected input data, for example, destination location, weight, and volume. You use the grouping rule together with the resolution base to group charge lines by the calculation base specified in the Group By field of the grouping rule.

Stage 1

Shipper

Port o f Loading

-------------------------------------------------------------- ^

---------------------------------------------------------------'

Stage 2

Stage 3

_____________________________________ A

_____________________________________ A

Port o f D ischarge

C onsignee

►

A C A L C U L A T IO N R E S O L U T IO N B A S E

Figure 179: Resolution Base

During charge calculation, the system determines the calculation resolution base by the origin of the data upon which the charge aspect is based. C h a r g e A s p e c t D e f in it io n

You can define the charge aspect in the following resolution base objects:



•

Root: This is the header of the document such as freight order, booking order, or forwarding order.

•

Stage: To utilize stage attributes such as distance between the shipper location and the port of loading.

•

Container: When gross weight of the container will be used for the calculation.

•

Product: When product attributes like product quantity, weight or volume need to be used.

For example, you want to determine the freight rate based upon the gross weight of the order. To do this, you will need to use the calculation resolution base of root. If however you want to calculate the freight on a per package basis, the calculation resolution base should be package. Rate Table

A rate is a price for a certain transportation service that applies only during its validity period. In SAP TM, rates are listed in a rate table.

V a lid ity P e rio d : 0 1 -0 1 -2 0 1 3 to 0 9 -0 1 -2 0 1 3

S ta tu s : R e le a s e d

Origin = Plant Chicago D est Z o n e

< = 1 0 0 lb

< = 5 9 9 lb

< = 1 0 0 0 lb

< = 2 9 0 0 0 lb

< = 5 0 0 0 0 lb

$

6 0.00

$

5 1.00

$

4 5.90

$

43.6 1

$

30.52

$

30.68

$

26.08

$

23.47

$

22.30

$

15.61

$

35.68

$

30.33

$

27.30

$

25.93

$

18.15

$

8 5.00

$

72.25

$

65.03

$

6 1.77

$

4 3 .2 4

$

5 5.90

$

4 7.52

$

4 2.76

$

40.6 3

$

28.4 4

$

5 7.00

$

4 8.45

$

4 3.61

$

41.42

$

29.0 0

S

4 5 .0 0

$

38.25

$

34.43

$

3 2.70

$

22.89

$

5 5.90

$

4 7.52

$

4 2.76

$

40.63

$

28.4 4

$

5 5.90

$

4 7.52

$

4 2.76

$

40.63

$

28.44

Figure 180: Rate Table

You can define the following elements in the rate table:

•

Charge Usage

•

Charge Type

•

Dimensions

•

Calculation Base (Scale)

•

Relevance for Calculation Method

Additional information on elements you can define in the rate table is as follows:



•

Charge Usage: You can set the rate table to calculate transportation charges billable to your customer or to be billed to you by your carrier.

•

Charge Type: The system only assigns rate tables to a charge item in a calculation sheet if the charge types match. You can use this field to search for a rate table.

•

Dimensions: You add each dimension on which you want your rate to be defined and looked up. For example, if you want the rate to be defined based on destination location and weight, add a dimension for destination location and for weight.

•

Calculation Base: You can define the calculation base for the scale. The calculation base is the actual base or the factor on which the charge calculation is based.

•

Rel. Calc. Method (Relevant for Calculation Method): If you select this checkbox, you define whether you want the system to apply a special calculation method, such as break weight or clipping, to the rate table on the level of a charge item. This charge item then only considers those rate tables that you designated for such a special calculation method.

Rate tables also contain the freight rates for transportation services and allow you to maintain rates for certain validity periods. A rate table can contain up to nine dimensions for rate maintenance. The rates are reusable and can be referred to in multiple calculation sheets. The rates can be imported or exported using Microsoft Excel. C a lc u la tio n M e th o d

You can use the standard, break weight, or clipping calculation method for a rate. The break weight calculation method compares and selects the lower rate from either the actual rate range or the lower end of the next rate range. It assumes that one of the scales in the rate is the weight. With clipping, the system works through the pricing scale level by level. The calculation results from each scale level are then added up to produce the overall result. E xam p le o f R ate s and C a lc u la tio n M e th o d s

•

Weight / volume rates

•

Break weight calculation

•

Volumetric rate calculation (bulkiness factors)

•

Distance rates

•

Freight of all kind and commodity rates

•

Various origin and destination point classifications such as point-to-point, point-to-zip, pointto-state, zip-to-zip, and state-to-state

•

Rates based on equipment (container type or size) or packaging class

•

Minimum and maximum rates

•

Handling charges: Terminal handling, cross docking costs, loading and unloading, empty handling, document handling, AMS filing, canal due, security surcharge, and so on•

•

Surcharges: Toll calculation: Taxes: Discounts



Rate Table

Mass Creation of Rate Tables Download

Rate Tables

Excel Tem plates Add Details Figure 181: Rate Table Integration with MS Excel

You can maintain a large rate table, with or without scale items, using Microsoft Excel. You can enter the rates and scales into a Microsoft Excel file and upload the file to your SAP TM system. Alternatively, you can define an empty reference rate table with validity periods in SAP TM and download it to Microsoft Excel. You can then maintain the rate table in the Microsoft Excel file and upload it to your SAP TM system.



Scales

If a rate is a price for a certain transportation service that applies only during its validity period, a scale represents a dimension of the rate. In effect, a scale is used to define a parameter that then defines a rate. For example, if a rate depends upon distance and weight, you must define a separate scale for distance and for weight. The distance and weight scales are then used to define the rate. Scale maintenance is a prerequisite for the maintenance of rates, as scales are the dimensions of rate tables. You maintain scales independently of the agreement and the rates, and can reuse them in multiple rate tables. A scale has a scale base, which is essentially a database field tied to an attribute of the freight order. The scale base defines how the system interprets the scale. For example, a rate based on distance has to have the distance calculated. To do this, you would need to know the start location and the destination location. In this case, one scale is needed to determine the start location and another scale is needed to determine the destination location. S o m e P ossible S cale Bases

•

Product quantity

•

Package type

•

Weight



•

Volume

•

Means of transport

•

Location

•

Distance

•

Business partner

Scale Type, Calculation Type, and Unit of Measure Each scale can be based on a scale type. The scale type controls how the scale levels are defined. It indicates whether the scale values that were specified represent the upper or lower boundaries for the scale levels. Depending upon the scale base, a scale unit of measure can be defined. This is a mandatory field if the unit of measure is relevant for the scale base. Weight, for example, requires a unit of measure. In relation to calculation type, you can choose between absolute and relative. For non-numeric scales, you can only choose absolute. The system uses the calculation type on scale level as the proposed value for rate table maintenance. You can also assign rounding profiles. Before the system accesses the scale to look up a rate in a rate table, it rounds the input value based on the rounding profile to determine the right scale level.

Note: A scale can be reused in multiple rate tables. However, only 9 dimensions or scales can be used in one table.



Calculation Base

Calculation Base ■ The calculation base defines how the system will determ ine the actual value of the scale during charge calculation Calc. Base Cd. “DESTLOC“

Helper Assignm ent

B A F/ C o n ta in e r dry

up to 5 tons up to 10 tons up to 20 tons

^

If the calculation will be based upon the destination location of the stage of the freight order

L

Newark

Portland

Miami

42,000 USD 36,000 USD 30,000 USD

48,000 USD 39,600 USD 33,600 USD

54,000 USD 48,000 USD 42,000 USD

Calc. Base Cd. “G RO SSW T“

If the calculation will be based upon the total weight of the freight or forwarding order Figure 183: Calculation Base

A calculation base identifies the actual base or factor with which the system calculates the charges for the scale. There can be various scenarios in which the system must calculate a charge for different forms of weights, for example, gross weight and net weight. In this case, both gross weight and net weight correspond to the scale base Weight (W), whose dimension is mass. However, by definition, gross weight and net weight are two entirely different charge aspects. Therefore they have two different calculation bases, such as "Wl" for gross weight and "W2" for net weight. To follow the scenario given here, you define a calculation base for every scale base. This calculation base is the final element in the charge determination. This means that the calculation base is used to determine the charges. In figure Calculation Base, the charges are dependent on weight and the destination location. The scale has the scale base Location. This scale base defines that the scale uses locations only The scale base can be used for both the source and destination location. The calculation base DESTLOC determines that the destination location of the freight order is used. Technically, in the customizing of the calculation base, you define which field is to be used and which program or class the system will call to determine the field value. If the resolution base in the calculation sheet points to the freight order stage, the system will derive the values from the specific stage and use it in the calculation.



M aster Data Cockpit

The master data cockpit provides an overview of the agreements and related charge management master data. M a s te r D a ta C o c k p it F e a tu re s

•

Flexible selection criteria for agreements and items.

•

Lists all related Transport Charge Management (TCM) master data, such as charge items, rate tables, scales and scale items, and rates for every agreement item. For example: -

The rates for a transport between your purchasing organization and a specific carrier.

-

All charges maintained for one item in an agreement that has many rate tables.

-

The agreements valid for a specific period.

Most data that is maintained in agreements and related TCM objects can be displayed in the Personal Object Worklist (POWL). Using the standard screen layout configuration options, you can customize the views relevant for your organization. Based on the selection, you can trigger a mass update of rate tables or rates maintained in calculation sheets. (Choose Update Rates / Calculation Sheet Amounts.) LE S S O N S U M M A R Y



•


•


•

Display a scale

•

Manage master data



Unit 7 Lesson 2 Calculating Supplier Charges in a Freight Order

LESSON OVERVIEW In this lesson, you learn how to calculate supplier charges for freight orders. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


A greem ent D eterm ination

Freight Agreements (FAs) and Forwarding Agreements (FWAs) are the basis for calculating transportation charges. In this section, we look at how agreements are determined based on priority. Agreement Determination Based on Priority

•

The system determines the agreement based on organization, business partner, validity period, and preconditions.

•

If there are several matching agreements, which can be determined on the data from freight order/booking or from the forwarding order, it is possible to have a leading charge type (defined in charge type Customizing), and the first agreement where the defined leading charge type can be calculated is picked. Besides using leading charge types, it is possible to maintain priorities.•

•

If the system finds multiple matching agreements during agreement determination, the agreement priority defines the sequence in which the subsequent determination is executed.

•

The agreement priority can be maintained on the General Data tab in the details section.

Built-in Preconditions in Agreement Items

In an agreement, there are two ways of using preconditions for the agreement items (calculation sheets): •

Built-in preconditions

•

BRFpl us preconditions

It is possible to define a BRFplus condition or a BAdl to check if a certain calculation sheet is to be processed in a certain business context. The result of this rule is a true or false decision. If the response from BRFplus or the BAdl is true, the calculation sheet is considered for charge calculation. Some built-in preconditions are available on agreement item level.



Agreement

► A g ree m e nt Item 1

Built-In Precondition • Trade Lanes • P artners • Item Precondition

A g ree m e nt Item 2

Figure 185: Preconditions in Agreement Items

Built-in Preconditions in Calculation Sheets Calculation Sheet

+

C harge Item 1

Built-In Precondition • Trade Lanes • Service • B usiness P artner ■N

f

D iV r ■ i 1c c o n n i n o n \__________

__________ /

C harge Item 2

Figure 186: Calculation Sheet Preconditions

There are two ways of using conditions in the calculation sheet. There are predefined parameters in the built-in preconditions that can be used or a BRF+ precondition/BAdl can be maintained as well. Types of Built-in Preconditions in Calculation Sheets

•

Trade Lanes: Based on criteria such as source location, source zone, destination location, destination zone, mode of transport, or means of transport, the charge line can be activated or deactivated.

•

Service: Based on the service level a charge item can be activated or deactivated.

•

Business Partner: Based on the business partner a charge item can be activated or deactivated.

BRFplus Preconditions in Calculation Sheets A BRFplus condition or a BAdl can be defined to check if a certain calculation sheet item is to be processed in a certain business context. The result of this rule is a true/false decision. If the



response from BRFplus or the BAdl is true, the calculation sheet item is considered for charge calculation. The precondition for the charge item can be maintained on charge item level in the Precondition tab. Manual Agreement Selection

Often Logistics Service Providers (LSPs) have multiple FAs with the same carriers and purchasing organizations. This is due to the fact that an LSP may strike deals with carriers at various levels, for example, on a country, regional, and global basis. Normally, the larger the contract, the better the rates. However, if a country Business Partner (BP) is pushing a lane to increase market share, then the LSP could potentially get better rates. Therefore, it makes sense to have a different contract with the country BP, or even multiple contracts. Similar scenarios can exist on the customer side. Therefore, the ability to choose a particular context in a given scenario is a critical business requirement on both the buying and selling side. Manual Agreement Selection: Functions

m •

An enhancement to the standard agreement selection, which is an automated process.

•

Provides the capability to select an agreement or agreement item for charge calculation.

•

Offers additional capability for automatic selection of minimum or maximum agreement items through calculation profile control setting.

Multiple Agreements Popup The figure shows the Multiple Agreements dialog box, which can be used to select an agreement manually.

Note: The Multiple Agreement pop-up is not supported for through rates.

0



Figure 187: Multiple Agreement Pop-Up

Freight Order Charge Calculation

Freight Order / Freight Booking C o n ta in e r D a ta (T ype. Q u a n tity ) Package P ro d u c t B ooking O rd e r S hip fro m : ABC G m bH , Frankfurt S hip-to: XYZ Ltd., C hicago In c o te rm : OOP

Configuration

M oT: C o n ta in e r V esse l D e liv e r y « F re ig h t O rd e r H em s: 5 TEU s te 2 0 ft c o n t 4 8 ,2 3 to .

From : Frankfurt T o: C h icag o M oT: C o n ta in e r V e sse l S ta rt D a te : 2 2 .0 3 .2 0 0 S E n d D ate: 2 3 .0 3 .2 0 0 5 P o in te r to F re ig h t U n its

r

'i TCM M aster Data

▼ / -----------------------------------------------j

T ra n sp . C h a rg e P ro c e s s in g R e q u e st

r

i Rules and Condition

Figure 188: Freight Order Charge Calculation Process



During freight charge calculation in the freight order, the following steps occur:

1. Collect the data from the following SAP TM core objects: .

Transaction business object: freight order, booking order, stage, item, container

•

Configuration objects

.

BRF+conditions

.

Master data

.

Any BAdl implementation

2. Determine the freight agreement 3. Calculate the values of each charge type in the calculation sheet 4. Hold the log file of the calculation run, and so on 5. Show the calculated results in the freight order Freight Rate Derivation Process

Figure 189: Freight Rate Derivation Process

During freight rating process, the following steps are performed:

1. Based upon the calculation item, the system determines the calculation base and the rate table. 2. Given the dimension of the rate table (scales), it then obtains the logistics data. 3. Given the calculation profile, the system determines the baseline for the date determination 4. The system obtains the matching rate table record and then determines the appropriate calculation rule 5. The system calculates the freight rate amount



B u s in e s s E x a m p le : R o a d - S e a - R o a d

Full Container Load Scenario (Road-Sea freight) Charge Calculation will be done for: F reight O rde r - D enver to Port o f N ew ark Booking O rder - Port o f N ew ark to Port o f Rotterdam F reight O rder - Port o f R otterdam to C ologne

Figure 190: Business Example: Road-Sea-Road

In this scenario a full container load is being sent via road-sea freight. From SAP ERP, an orderbased transportation requirement for the entire move is sent to SAP TM. The planner decides the routing for the container move, hence creating stages in the freight unit. Each stage is then planned separately: Table 3: Stages Stage

Description

Pre-carriage

Truck move from shipper origin (Denver) to port (Newark)

Main carriage

Vessel move from POL (port of loading) (New ark) to POD (Port of Destination) (Rotterdam)

On-carriage

Truck move from port (Rotterdam) to custom er unloading location (Cologne)

Two freight orders are created - one for the pre-carraige stage (Chicago to Newark) and one for the on-carraige stage (Rotterdam to Cologne). The amount calculated for these stages will be used to pay the carrier.



A booking order is also created for the main carriage stage (Newark to Rotterdam). The amount calculated for this stage will be used to pay the ocean carrier. Example Calculation for a Freight Booking

Example Calculation for a Freight Booking Freight Move: PoL: Port of Newark to PoD: Rotterdam Port F re ig h t A g re e m e n t

O c e a n Freight

Freight A g re e m e n t ID

F reight A g reem ent points to a TCCS

4711

Cam er

S e a Terra

C o n trac tin g P a rtn e r

D e lta Pulp and W o o d

U sage Code

C u s to m e r and S e rv ic e P ro u d e r

TCCS

T C C S _ S e a T erra_1

TransDOftatio Calculation Sheet 1 Line Number Charge Element Code 10

20 56 C hargeType points to a Rate Table

HAUL

Calc.-Rule

Haul Ocean fre ig h t

Calculation Base

chargeable w e ig h t

BAF

Bunker Adjustment Factor

chargeable weight

CAF

Currency Adjustment Factor

Percentage

40

O JS PS

Security Surcharge Origin

chargeable weight

to

OTHC

Orign Terminal Handling

chargeable weight

60

DTHC

Destination Terminal Handling

chargeable weight

O JSPS

Destination Security Surcharge chargeable weight

To

80

SUM

Line 10 *5 0

Line 10

Automatical'manual Total

Rate table: Haul

Rate Table is built out o f Scales

R o tte rd a m

L e H a v re

B re m e rh a ^ n

N e w a rk

3 5 .0 0 0 U S D

4 0 .0 0 0 U S d |

4 5 .0 0 0 U S D

P o r tla n d

3 0 .0 0 0 U S D

3 3 .0 0 0 U S D

40 000 U SD

M ia m i

2 5 .0 0 0 U S D

2 8 .0 0 0 U S D !

3 5 000 USD

Calculation Result Line Number Charge Code Charge Code description FAK FAK Base freight 10

Base Container

Value Price 40.000 USD 39.680 USD

Figure 191: Example Calculation for a Freight Booking

The example demonstrates how the system calculates the charge for a container ocean freight booking from Newark to Rotterdam based on TCM master data.

Event-Based Charges Events can influence how the customer is charged (via the forwarding order) and how the carrier is charged (via the freight order and freight booking).







Unit 7 Exercise 20 Calculate Charges for a Freight Order

Business Example

You are a charge analyst for a company implementing SAP Transportation Management. You want to ensure that charges can be calculated in freight orders. 1. Open the freight order you have used in the exercises for carrier selection and tendering. 2. Go to the Charges tab. What is the charge calculation status?

3. Calculate charges for the freight order using the corresponding button in the main toolbar and then save the freight order. 4. Review the freight charges that have been calculated. What is the charge calculation status and the invoicing status of the freight order?

5. What is the total that has been calculated?

6. Which charge types have been calculated? Hint: Click the Expand All icon on top left of the Charges table.



7. How has the base freight been calculated?

8. How has the fuel surcharge been calculated?

9. Which freight agreement and charge calculation sheet have been used for charge calculation? Hint: Choose Show/Hide Details in the charge table.

10. How has this freight agreement been determined?



Unit 7 Solution 20 Calculate Charges for a Freight Order


You are a charge analyst for a company implementing SAP Transportation Management. You want to ensure that charges can be calculated in freight orders. 1. Open the freight order you have used in the exercises for carrier selection and tendering. a) In NWBC, choose Freight order Management —>Road —>Edit Road Freight Order. b) Enter the number of your freight order in the Freight Order field and choose Continue. c) Make sure a carrier has been assigned to this freight order on one of the following tabs, Subcontracting, Business Partner or General Data. 2. Go to the Charges tab. What is the charge calculation status? The charge calculation status is Not Calculated._________________________________ 3. Calculate charges for the freight order using the corresponding button in the main toolbar and then save the freight order. a) Go to edit mode and choose Charges/Settlement —>Calculate Charges and then Save. Hint: If the Charges/Settlement button is not visible, click on the double arrow in the top right of the screen, next to the tool icon. 4. Review the freight charges that have been calculated. What is the charge calculation status and the invoicing status of the freight order? The charge calculation status is Calculated, the invoicing status is Not Invoiced.____________ 5. What is the total that has been calculated? A total of 1,366.81 USD has been calculated.________________________________________ 6. Which charge types have been calculated? Hint: Click the Expand All icon on top left of the Charges table. BASE: FUEL; STOP



7. How has the base freight been calculated? Actual distance (2.679,199KM) x 0.45 USD/KM = 1.205,64 USD.________________________ 8. How has the fuel surcharge been calculated? Base freight (1.205,64 USD) x 3.00% = 36,17 USD___________________________________ 9. Which freight agreement and charge calculation sheet have been used for charge calculation? Hint: Choose Show/Hide Details in the charge table. Select the top line for carrier P&G Trucklines and choose Show/Hide Details in the charge table. Scroll down and on the Overview tab, you can see that freight agreement FA00CARR-01 and calculation sheet FTL_US_CARR01 are displayed._________________________ 10. How has this freight agreement been determined? The freight agreement has been determined based on carrier CARR-00-01 and purchasing organization 50000808. You can see these on the General Data tab._____________________




•




Unit 7 Lesson 3 Settling Supplier Freight Charges

LESSON OVERVIEW After services have been rendered for the freight order, the settlement process must be initiated. In this lesson you will examine the steps SAP TM performs to assist in the process of settling transportation costs with your carriers. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•




Freight S e ttle m en t

t

Freight O rd e r /

I

Freight Booking

I

Freight 1

—

S e ttle m e n t

Charges & Settlement

D o cu m e n t

A ccounting D o cu m en t

SAP ERP Figure 193: Document Flow — Supplier Freight Settlement

The figure Document Flow — Supplier Freight Settlement isolates the freight settlement steps within the context of the overall document flow. W h a t is F r e ig h t S e t t l e m e n t ?

When an organization ships via a third party to a customer, costs may be incurred that have to be charged back to this shipper. After services have been rendered the following activities should take place: •

Accruals are posted

•

Invoices are verified (in SAP ERP)

•

Vendors are paid

To manage this process properly in an integrated environment, a freight settlement document is created and transferred to SAP ERP.



Freight S e ttle m en t D ocum ent

A freight settlement document (FSD) is a business document that is sent to SAP ERP requesting the verification of an invoice received from a supplier or carrier. When the invoice is received, SAP ERP checks it against the data from the freight settlement document. If performing an evaluated receipt settlement, the automatically generated invoice is based on the data from the freight settlement document. FSDs can be used to enter the data for transportation invoicing and forwarded to SAP ERP for invoice verification. The transportation charges are calculated in SAP Transportation Management (SAP TM) based on a freight order, service order, or freight booking. After an SAP NetWeaver Exchange Infrastructure (XI) message is sent to SAP ERP, the actual invoice verification takes place in SAP ERP. You can create an individual FSD for one freight order, service order, or freight booking. You can create a collective FSD for multiple freight orders or freight bookings. You can also create multiple FSDs at the same time.



D o c u m e n t T y p e , In v o ic e D a te • P u rc h a s in g O rg a n iz a tio n • P a y m t. T e rm s , N e t A m t. • D o c . C u rre n c y • In v o ic e A m o u n t V e rifie d b y E R P

In v o ic in g P a rty (d e fa u lt) P a y e e (d e fa u lt) A d d itio n a l B u s in e s s P a rtn e rs (P a rtn e r D e te r m in a tio n , M a n u a l E d itin g )

B u s in e s s

C h a rg e s fo r e a c h

D o c u m e n ts o r B u s in e s s

d e te rm in e d

d o c u m e n t ite m s

a u to m a tic a lly

th a t a re b e in g

m anual m a in te n a n c e

s e ttle d w ith th e

F S D ite m -

FSD

Figure 195: Freight Settlement Document Overview*•

An FSD c o n ta in s th e fo llo w in g in fo rm a tio n :

•

General data: Document type, the purchasing organization, payment terms, document currency, and so on

•

Business partner information: invoicing party, payee, additional business partners, which can be entered manually or automatically determined by the system

•

Charges: For each FSD item the Charges tab page has the charges relevant for settlement with the carrier

•

Orders: The business documents or the business document items that are being settled using the FSD



T h e F S D c a n b e c r e a t e d in t h e f o l lo w in g w a y s :

•

It is possible to create an individual FSD for one freight order, service order, or freight booking, or a collective FSD for multiple freight orders, service orders, or freight bookings. To do this access freight orders, service orders, or freight bookings from the personal object worklist (POWL), in the relevant document overview, or in the freight settlement overview. The system automatically creates the FSD based on the data in the freight orders, service orders, or freight bookings and calculates the transportation charges.

•

It is also possible to create FSDs directly out of the freight booking or freight order Ul.

•

It is also possible to create partial FSDs for previously invoiced freight documents.

•

You can create multiple freight settlement documents using the mass creation of FSD report.

Note: Background reports are the following: -

/SCMTMS/SFIR_CREATE - Creation of FSD

-

/SCMTMS/SFIR_TRANSFER - Transfer of FSD to ERP



Unit 7 Exercise 21 Generate a Freight Settlement Document


Once a freight order is created, a freight settlement document can be created. You use this to calculate the applicable charges to be paid to the transportation service provider for handling the freight order/shipment. 1. In NWBC, choose Freight Order Management —> Road —► Edit Road Freight Order. 2. Enter the number of your freight order in the Freight Order field and choose Continue. 3. Can a freight settlement document be created for this freight order?

4. Generate the freight settlement document. 5. What is the settlement document type associated with the freight settlement document?

6. Who is the invoicing party in the freight settlement document?

7. What is the lifecycle status of the freight settlement document?

8. View the preceding documents of the freight settlement document. 9. Save the freight settlement document and note the freight settlement document number.



Unit 7 Solution 21 Generate a Freight Settlement Document


Once a freight order is created, a freight settlement document can be created. You use this to calculate the applicable charges to be paid to the transportation service provider for handling the freight order/shipment. 1. In NWBC, choose Freight Order Management —> Road —► Edit Road Freight Order. 2. Enter the number of your freight order in the Freight Order field and choose Continue. 3. Can a freight settlement document be created for this freight order? Yes. The invoicing status of the freight order is Not Invoiced and there are no blocks - a settlement document can be created. You can check the invoicing status under Settlement Data in the Charges tab. You can check whether there are blocks under Blocking Information in the Statuses tab.____________________________________________________________ 4. Generate the freight settlement document. a) Expand the Charges/Settlement dropdown in the top menu bar and then choose Create Freight Settlement Document. 5. What is the settlement document type associated with the freight settlement document? 0001 (Default Freight Settlement Document). You can see this in the Settlement Document Type field under Settlement Data in the General Data tab.______________________________ 6. Who is the invoicing party in the freight settlement document? CARR-00-01. You can see this in the Business Partner tab._____________________________ 7. What is the lifecycle status of the freight settlement document? The status is Ready for Accruals. You can see this in the Statuses tab.____________________ 8. View the preceding documents of the freight settlement document, a) Choose the Document Flow tab. 9. Save the freight settlement document and note the freight settlement document number, a) Save the freight settlement document by choosing Save All.



Supplier Freight Invoicing

Figure 197: Posting Accruals

Freight charges are settled with the carrier (supplier). Settlement includes the following: •

Assigning and transferring shipment costs to Financial Accounting to generate accruals, and assigning costs to a CO object.

•

Settlement of costs with the carrier: posting payables by canceling the accruals.

You need to have entered and accepted the services provided before you can transfer costs to Financial Accounting. The system automatically creates the service entry sheet based on a purchase order for external services. Before you can settle costs with the carrier, you need to create an invoice using manual invoice verification or create a credit memo using the credit memo procedure.



Figure 198: Supplier Freight Invoicing - Process Flow

As you can see in the graphic, the typical freight settlement process flow is as follows: 1. Based on a transportation request, the planner carries out several planning steps and create a freight order or a freight booking to subcontract to a carrier. 2. Upon settlement, the system creates a Freight Settlement Document (FSD). This document contains all relevant logistical data as well as the charges and other commercial data. The charges can be copied over from the freight order or booking (most common) or another charge calculation is triggered based on the freight agreement between the purchasing organization and the carrier. It is possible to manually change charges in the FSD. FSDs can be created online or in batch. It is possible to do a collective settlement (several freight orders or bookings are settled with one FSD). The FSD can then be transferred to the SAP ERP system via SAP NetWeaver Process Integration (PI, formerly known as X I/ Exchange Infrastructure) or WSRM (Web Services Reliable Messaging). 3. A purchase order and a service entry sheet are created in the ERP system. This constitutes the working list for invoice verification. You also have the option of self-billing.

Note: The purchase order and service entry sheet are only used for technical purposes to post accruals in SAP ERP. The service entry sheet comprises a list of services performed by a vendor on the basis of a purchase order, containing service descriptions and details of quantities and values. The descriptions of planned services deriving from the purchase order are used as default descriptions in the service entry sheet. Unplanned services that were entered in the purchase order without descriptions using value limits are precisely specified in the service entry sheet.

P a rtia l F re ig h t S e ttle m e n t

You can create a partial freight settlement document for a previously invoiced freight order.



The invoicing status of the freight order changes from Completely Invoiced to Partially Invoiced before the additional freight settlement document is created. You can add charges to an invoiced FO, but it is not possible to remove them. Invoice verification can be done with reference to the SAP TM freight order, carrier, BOL, air waybill, flight number, and voyage number. You can view, edit, and discard proposed FSDs from the interactive Ul. Freight S e ttle m en t Integration

1. A c c o u n t A s s ig n m en t * G /L a c c o u n t d eterm in atio n • A s s ig n m e n t fo r C o st A cco u ntin g

2. T ra n s fe r to F in a nc ia l A cco u ntin g •

P u rc h as e o rd e r determ in atio n

•

C rea tio n o f the s e rv ic e e n try sh e et

• A cc ru al e s ta b lis h m e n t

3. In voice crea tio n •

C re d it m em o p ro ce d u re (E R S p ro ce d u re)

*

M anual in vo ice v erific atio n

Figure 199: Freight Settlement Integration

During account assignment, the system determines the correct G/L account in Financial Accounting for each shipment cost item and the assignment for Controlling. Account assignment can be carried out at different levels, depending on the level of detail at which you want to track costs. The transfer to Financial Accounting to establish accruals requires entering and accepting the services rendered. The system automatically creates a service entry sheet. Using the credit memo procedure, also referred to as the Evaluated Receipt Settlement (ERS) procedure, you can settle the shipment costs with the carrier without having received invoices. You can choose from different settlement periods. You transfer the calculated shipment costs to Financial Accounting. The invoices are verified by the carrier. If the carrier discovers variances, you can post these as subsequent debits or credits. If you receive invoices from the carrier, you can also verify the invoices manually and create the invoices manually.



Service Entry Sheets in SAP ERP

Each service entry sheet is based on an external service order. Determining a valid purchase order is required for transfers to Financial Accounting and for settlements. You can also create the purchase order every month for the carrier. Important criteria for the service order include carrier, purchasing organization, purchasing group, plant, and item category. When the system has automatically determined a valid purchase order, a service entry sheet is created that refers to the purchase order. During posting, you accept services and, in Financial Accounting, an accounting document for generating accruals is created.



Invoice Submission ^ F r e i g h t F o rw a rd e r

Strategic Freight Procu rem en t

Consignee

Strategic Freight Mgmt. & Contract Lifecycle Mgmt. — Order Mgmt. & Freight Planning

W arehouse Execution

Freight Exec. & Monitoring

Freight Settlement

------------------------Tracking & R eporting---------------------------

• Freight T en dering

• E ven t • Invoice Subm ission Notification & • Self-Billing H andling . D ispu te M a n a g e m e n t / *

Carriers /N

Figure 201: Carrier Collaboration Portal Functionality Overview

With SAP TM 9.3, the Collaboration Portal can be used for the scenarios of strategic freight procurement, freight tendering, event notification and handling, as well as the settlement functionalities of invoice submission, self-billing, and dispute management. Invoice submission is the process of publishing the freight charges in the carrier portal and resolving differences in charges in a Freight Order (FO) or booking between a carrier or Logistics Service Provider (LSP) and a requester of transportation services, such as a shipper or an LSP. This functionality simplifies and accelerates the carrier invoicing and correction processes. Additionally, there is no need to set up additional interfaces from third parties to SAP ERP for uploading incoming carrier invoices for invoice verification. The carrier creates an invoice directly in the portal. This invoice gets matched to the calculated freight order amount, and the freight settlement process can be executed subsequently. The carrier can verify all relevant logistical and the respective charge amounts. If the carrier wants to change or add data, the collaborative invoice dispute management functionality can be triggered. The dispute can involve changes in logistics item quantities (weight, volume, and distance) or item charges, and can lead to changes in charge amounts in freight order. The Collaboration Portal can be seen as another Ul for the SAP TM system. The carrier requires a user ID and password for logging on to the Collaboration Portal. This can be created by the SAP TM administrator.



Invoice Submission and Payment

Invoice Submission: High-Level Process

1. The shipper creates a freight order and executes the charge calculation. If invoice submission via the Collaboration Portal is enabled for the carrier, the FOs are visible for the carrier on the Collaboration Portal and the charges get published in the portal. 2. The carrier creates an invoice directly in the portal. This invoice gets matched to the calculated FO amount. 3. If applicable, a collaborative dispute process is triggered. If that dispute process is solved, it results in a delta Freight Settlement Document (FSD) or credit memo posted to ERP. 4. After the invoice amounts and the amounts of the FSD and FO match, a carrier invoice is automatically created in SAP TM to be posted from SAP TM to SAP ERP. 5. The carrier invoice can then be automatically verified with the respective FSD and PO/SES in SAP ERP, posted to the accounts, and the payments can be arranged. The dispute management for self-billing functionality remains untouched and both scenarios can run in parallel. However, a shipper will probably use either dispute management for self-billing or let the carrier submit the invoices directly.



Collaborative Invoice Dispute Management

Figure 203: Dispute Management for Invoice Submission

Dispute Management: High-Level Flow

1. The shipper creates an FO. The FO becomes visible for the carrier on the Collaboration Portal. 2. The carrier creates a carrier invoice and submits it. The carrier can review these orders and create a carrier invoice for one or more FOs. He can also initiate a change request for the logistical and charge data and also capture the reason via notes or attachments as justification. The carrier invoice gets created in the shipper TM system, along with a dispute case capturing all the discrepancies, if any. 3. Dispute resolution occurs. In cases where there are discrepancies, there can be multiple rounds of negotiations between shipper and carrier until there is a convergence. The shipper can accept the charges or reject and propose new charges. The dispute resolution process can also be automated by setting tolerance rules. This enables automatic acceptance of a dispute without any manual intervention. If workflow is enabled, a work item is also created in case tolerance rules fail, enabling the shipper to take further action. Even if workflow is not enabled, the shipper can see and access the dispute cases via a dedicated POWL. Once the dispute is resolved and the changes accepted, the freight order and carrier invoice charges get updated. 4. Accruals are adjusted and the invoice is posted. As soon as the dispute is resolved, the freight order is updated, and the FSD can be created or updated. (The creation of the FSD depends on whether or not it was already created before the dispute case.) The updated FSD updates the PO and SES in SAP ERP with the revised charges using the SAP ERP update strategy in the settlement profile, as follows: •

Change current FSD and resend.



•

Create new FSD for delta amount.

.

Reverse and repost with new FSD.

The accrued charges are adjusted in SAP ERP, and then the carrier invoice is posted to SAP ERP. Self-Billing

»«G*T OCCURU*W*»l«tn I fSCGxT «T T U t* ir I

Freight Order Management f -eight

RFQs

Freight Quotations

HOME

FREIGHT O RDER MANAGEMENT |

W.' -'

J

C r e a te D is p u te

S ta tu s

50

FREIG HT S ETTLEM ENT | FREIGHT AGREEMENT MANAGE).

F r e ig h t O rd e rs t o r S e lf-B illin g

836

F r e ig h t S e t t l e m e n t

S h o * D etails

F re ig h t O rd e r

O

Export

Q u ick F ilter

S u b m in e d 11For A p p ro v a l | | All|

S o u r c e L o catio n

S tre e t N a m e (S o u rc e L ocation)

16 6 0 5

C h ic a g o B a k e rie s Inc

1 1 5 4 S C lark S tre e t

16 6 0 6

C h ic a g o B a k e n e s Inc


700011932

C h ic a g o B a k e rie s Inc


6100000729

C P II. C h e m ic a ls

56 7 Jo n e s Rd

a

Chspulrs

1

32

Optft

SuSnCtd

F r e ig h t A g r e e m e n t M a n a g e m e n t Freight A g-eement RFQs

15

Freight A greement RFQs

0

| Figure 204: Carrier Self-Billing in the Collaboration Portal

To enable the display of a freight order in the portal, the assigned carrier must be enabled for self billing. This setting is defined in business partner master data. To access the portal, create business partners for contact persons and assign them to the carrier, then create an internet user for each contact person. To expose freight charges, the carrier logs into the Collaboration Portal and navigates to the Freight Settlement screen. All Collaboration Portal functionalities (such as table view, detail view, filters, and the search function) are available. Dispute Management

Shipper creates F reight O rder

C arrier executes the F reight O rder

C arrie r requests ch an ge on charges

S hipper accepts change S hipper updates change

C arrier accepts updated changes

Shipper posts self-invoice and pays

| Figure 205: Dispute Management for Self-Billing

Freight dispute management is the process of resolving differences in logistics quantities and charges in a freight order or booking, between a carrier (or LSP) and a requester of transportation services, such as a shipper or an LSP.



The expected charges of a freight order are exposed on a portal, which the carrier can access. The carrier can then verify relevant logistical data as well as charges. If the carrier wants to change or add data, it is then possible to create a dispute. The dispute can involve changes in logistics item quantities (weight, volume, distance) or item charges (USD or hour), and can lead to changes in charge amounts in an FO. Dispute management with self-billing can also be established between an LSP and a carrier or a carrier and another subcontracted carrier. The figure, High-Level Process, shows a common example. The Collaboration Portal can be seen as another Ul for the SAP TM system. The carrier requires a user ID and password for logging on to the Collaboration Portal. This can be created by the SAP TM administrator. Dispute Management for Self-Billing: High-Level Process

1. Shipper creates FO. If self-billing and settlement via the Collaboration Portal is enabled for the carrier, the FROs are visible for the carrier on the Collaboration Portal. 2. Carrier executes the freight order. 3. Carrier requests change of calculated charges. The carrier claims unplanned costs or enters changed charges or logistics data like weight using the Collaboration Portal. The system creates a dispute case capturing the differences between what the carrier claims versus the charges calculated by the shipper. 4. Shipper accepts or updates change. The shipper accepts or updates the dispute case in SAP TM. If the shipper accepts the change, the dispute case is closed and the follow-on process is executed. During this process, SAP ERP is updated to reflect the changed freight cost, which is then the basis for self-billing (ERS) run in SAP ERP. If the shipper does not accept the changes, the shipper's proposal is sent back to the carrier via the Collaboration Portal. The carrier can then accept the proposal or re-submits changes. 5. Carrier accepts updated changes. When the carrier accepts changes, the dispute case is closed, and the follow-on process is executed. During the follow-on process, SAP ERP is updated to reflect the changed freight cost, which is then the basis for self-billing (ERS) run in SAP ERP. 6. Shipper posts self-invoice (in SAP ERP) and makes payment. The self-invoice is created and payment is issued to the carrier.



Dispute Management for Self-Billing: Detailed Process Flow

START (Shipper)

Q. a: LU

O T R /D T R

P O /S E S - 4

ER S

8

g

U

' n ,0 iC e ,1

P aym ent

t___ FO w ith S e lf Billing

R eject or propose changes 7

__

D ispute C ase g

Freight Settlement Document 3 A cce pt requested C hanges 7

4 U pdate D ispute C ase & Send 03

■e o a. c o

C arrier irrier W o rk lis t

CD

ro

| C reate

Verify

o

.Q

^

h

J*

C h a rg e s ^

Dispu,e5 ^

o O Document

Activity

Case 1: Shipper accepts first dispute amount

Payment received Case 2: Shipper rejects/proposes first dispute amount

Figure 206: Detailed Process Flow

1. Order-Based Transportation Requirement (OTR) or Delivery-Based Transportation Requirement (DTR) is created in SAP ERP by the shipper. 2. The transport requests are planned in SAP TM resulting in a freight order or freight booking. In this scenario, self-billing is enabled for the carrier. 3. A FSD is created and charges are accrued in SAP ERP - a Purchase Order (PO) and Service Entry Sheet (SES) are created in SAP ERP. During this process, the shipper or LSP may have agreed a time period with the carrier within which the carrier can make changes or raise a disputes. If necessary the FSD can be created after the time period has elapsed to avoid multiple updates to SAP ERP. For example, if the shipper has an agreement with the carrier that the carrier has up to 3 days to confirm or update the FO after the execution, then an FSD can be created after this period has elapsed. 4. Simultaneous to step 3, upon calculating the FO charges, the shipper exposes the freight order in the Collaboration Portal for the carrier to verify. 5. The carrier verifies the charges and, if a mismatch is found, creates a change request (or dispute) for the logistical or charge data, and then submits the changes for approval. The carrier can also capture the reason and upload an attachment as justification.



6. On submission, a dispute case is created in SAP TM which captures the dispute data. Technically, the freight order in the SAP TM system is the basis for comparing the charges (what the carrier claims versus what the shipper expected to pay). If any deviation is found the dispute case is created. Tolerance rules, if defined by shipper, will run on the charge dispute item. This enables automatic acceptance of a dispute without any manual intervention. If workflow is enabled, a work item will also be created in case tolerance rules fail enabling the shipper to take further action. Even if workflow is not enabled, the shipper can see and access the dispute cases via a dedicated POWL. 7. The shipper can accept the charges or reject and propose new charges. There can be multiple iterations of negotiation between the shipper and the carrier until they reach a consensus. (After the shipper proposes new charges, the carrier can edit the proposal and further action by the shipper is required). As soon as the dispute is resolved, the FO is updated, and the FSD can be created. (The creation of the FSD depends on whether or not it was already created before the dispute case.) 8. The updated FSD updates the PO and SES in SAP ERP with the revised charges using the SAP ERP update strategy in the settlement profile: •

Change current FSD and resend

•

Create new FSD for delta-amount

.

Reverse and repost with new FSD

9. An Evaluated Receipt Settlement (ERS) is run in SAP ERP. During this process, a self-invoice is created and payment is made to the carrier for the service provided.

Note: The straight-forward process of self-billing with no dispute raised by the carrier is described. The step “Accept" on the carrier side is only required, and only possible if a dispute has been created beforehand and the shipper has proposed updates or rejected the case.



Dispute Creation

V* •

Figure 207: Collaboration Portal Dispute Creation

To create a dispute in the Table Overview or in the Charge Details view of the FO, choose Create Dispute. The charge details are opened in a Dispute Creation view and the data can be updated. In the Dispute Creation view, the following activities can be performed: •

Change quantity of logistical data In the Charge Details view the carrier can adapt logistical information of the FO like gross weight, volume, or total distance.

•

Adapt existing charge items Choose Edit next to a charge item to open a new row and add an updated rate.

•

Add new charge items Choose the plus sign next to a stage to a new line and enter a charge type, rate, unit of measurement, currency, unit of measure or quantity.

•

Upload a document The carrier can browse and upload documents (for example, a picture showing damaged goods) to prove the dispute case.

After entering the updated information, choose Calculate Charges to calculate charges for the updated data. Before submitting the dispute to the shipper, a note can be added in the Notes field. Finally, choose Submit Proposal to submit the updated information.





•


•




Unit 7 Lesson 4 Calculating and Settling Customer Charges in an FWO

LESSON OVERVIEW In this lesson, you will examine how to calculate customer charges for forwarding orders. You will also examine how to initiate the customer settlement process. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


•


•




FWO Charge Calculation

Forw arding O rd e r

Forw arding S ettlem en t D o cu m ent V.________ __________ /

Charges & Settlement

A ccounting D o cu m ent

SAP ERP i Figure 208: Document Flow — Forwarding Order Charge Calculation

Transportation charge management in SAP TM calculates charges that customers are required to pay for the transportation services (and to to the carrier), including the integration of invoice requests to SAP ERP. In the context of Forwarding Order (FWO) management, we are only concerned with the functionality of charge calculation and what the customer is supposed to pay for the transportation process entered in the FWO. The charge calculation is enabled in the FWO type. Additionally, the charge calculation can be configured so that it runs automatically when the FWO is saved and when required changes to the document are made. Integration of Charge Management

The charge calculation is carried out using the same charge calculation engine that is used for calculating supplier charges on a freight order/booking. Based on the customer (ordering party) and the sales organization of the FWO, a forwarding agreement is determined. Based on the Forwarding Agreement (FWA) and the FWO data, customer charges are calculated.



Figure 209: Integration of Charge Management

Cost Pull

Freight Order

E x a m p le 1 (F W A )

Strategy A g g r e g a te

FBOO

100

DOCF

50

FUEL

40


Complete Selective


Strategy

Complete

Selective

Aggregate

9 5 ,0 0

Copy Active

Copy Active

Copy Inactive

Copy

FBO O

5 0 ,0 0

In a c t iv e

DOCF

2 5 ,0 0

FUEL

2 0 ,0 0

95,00 will be distributed to each Forwarding Order.

20,00 (only Fuel charge) will be distributed to each Forwarding Order.

95,00 will be distributed to each Forwarding Order.

It will be shown in one aggregated line.(not editable)

The charge type will be shown in an individual charge line and is editable

Each charge type will be shown in an individual charge line (not editable)

Figure 210: Cost Pull Methodologies



The cost pull methodology allows costs that occurred on execution documents like Freight Orders (FOs) or freight bookings to be used by a FWO. In order to do so, the cost distribution is enabled. If several FWOs are consolidated into one FO, the cost distribution profile distributes the costs. If an agreement is made with the customer that some of the charges incurred by the Logistics Service Provider (LSP) are charged to the customer, the cost pull methodology is used. The cost pull methodology offers three different strategies, which are documented in the figure Cost Pull Methodologies: aggregate, active copy and inactive copy. For each strategy, you can choose whether all of the costs or selective costs should be released to the FWO.

Customer Freight Invoicing Forwarding Settlement Document Once the charge calculation is performed the charges can be invoiced to the customer.

Note: SAP TM does not create invoices, instead it creates documents that are used to integrate with SAP ERP, where invoices are created. From the forwarding order charges a new document is created, the forwarding settlement document. Therefore, if you enable the charge calculation and the settlement (the settlement can be enabled separately) in the forwarding order type, you must also maintain the document type of the forwarding settlement document that is created for the charges. The creation of this document is shown in the figure Forwarding Settlement Document Creation. The forwarding settlement document does not necessarily need to be created for all charges but several forwarding settlement documents can be created for one forwarding order, based on the settlement Customizing. It is also possible to create forwarding settlement documents collectively for several forwarding orders. The forwarding settlement document is then transferred as a customer freight invoice request to ERP, where a sales order in SAP ERP Sales & Distribution is created. From there, the common process of billing a customer in SD starts.

Forwarding Settlement Process

Business Case A sales organization wants to create an invoice or billing document in ERP for the services rendered to a customer.



Forwarding Settlement Document (FWSD) A document created in TM that can be sent to SAP ERP to request the creation of an invoice to be sent to a customer.

Figure 212: Freight Forwarding Settlement Process

An external customer sends an order to a freight forwarder. The freight forwarder creates a forwarding order in the SAP TM system. In this process, when it is time for the freight forwarder to initiate customer billing, a forwarding settlement document is created in SAP TM. This is a preparatory document in SAP TM. The forwarding settlement document is transferred to SAP ERP using SAP NetWeaver Process Integration (PI) or Web Services Reliable Messaging (WSRM). Charge Management is used to calculate charges in the forwarding order and in the forwarding settlement document. In SAP ERP, an SD billing document is created that forms the basis for integration with Financial Accounting and Controlling (FI and CO).

Note: The charge calculation doesn't have to be triggered explicitly in the forwarding order; the calculation is completed automatically when the FWSD is created.

Change Process

The status of the FSD and FWSD can be changed when it is in status Ready for Invoicing or status Invoiced. When you change FSDs or FWSDs that have already been saved, the lifecycle status is returned to In Process.



The following Customizing activities must be maintained on the ERP side for successful integration of customer freight invoicing:

•

Customer master data must be defined

•

SAP TM sales organizations must be assigned

•

Transportation charges must be assigned to SD condition types

•

The SD pricing procedure must be maintained

•

Account determination must be maintained

To Generate a Forwarding Settlement Document

1. In NWBC, choose Forwarding Order Management Order.

Forwarding Order —>Edit Forwarding

2. Enter the number of the forwarding order for which you want to create a settlement document and choose Continue. 3. Generate the forwarding settlement document for the ordering party by choosing FollowUp —>Create Forwarding Settlement Document. On the popup, select the ordering party and confirm. 4. Save the forwarding settlement document or choose Save and Transfer in the menu bar to transfer the document to SAP ERP for invoicing.

Internal Settlement In a logistics service provider, while the main business units take orders from customers, it is the gateway consolidation centers that consolidate shipments from various business units and create consolidated bookings with the ocean carrier.

LSP F o rw a rd in g S e ttle m e n t C om pany S h ip p e r ! FW H1 1 1 1 ( f | In te rn a l S e ttle m e n t 1 1 1 F re ig h t S e ttle m e n t

6BM FW H2

C om pany 2 Vendor FW H3

FW H = Forwarding House

Figure 213: Internal Settlement Overview



This requires an internal settlement between the gateway and the business unit, because only the business unit is in contact with the customer. An internal settlement document can be sent from an internal organization in a company to another internal organization to recover costs incurred in delivering transportation services. In the standard internal settlement process, the internal settlement is between the purchasing organization of the freight order and the sales organization of the forwarding order. You can also create internal settlement documents to settle the cost of providing internal resources. In the internal settlement process for resources, the settlement is between the organizations that own the resources that are used to execute the order and the purchasing organization. Internal Settlement Types

In some cases, the business unit and the gateway belong to different company organizations. In this case the settlement is called an intercompany settlement. When the business unit and the gateway belong to the same company organization, the settlement is called an intracompany settlement.

LSP C om pany 1 In tra c o m p a n y

c m

S e ttle m e n«t

FW H1

■

FW H2

In te rc o m p a n y S e ttle m e n t

i--------f------------------------------------------------------------- 1 ■^-r-r-rrTl I

I

I

C om pany 2

W tjy z y FW H3

I_____________________________________________________________________________________J

FW H = Forwarding House

Figure 214: Internal Settlement Types


•


•


•




Unit 7 Lesson 5 Distributing Costs

LESSON OVERVIEW Freight costs incurred by the organization need to be allocated to individual cost or profit centres in SAP ERP so that profitability can be properly assessed. In this lesson you will examine the steps performed by the system in assisting the allocation of freight costs in SAP ERP. You will also examine how to distribute costs in a LSP scenario. LESSON OBJECTIVES After completing this lesson, you will be able to:

•

Distribute costs

Cost Distribution In order to compute true profitability for any manufacturing organization, all operational costs needs to computed correctly. Most organizations would like the freight costs for material procurement to be included in the material cost. Similarly, for customer deliveries, the freight cost for the delivery needs to be considered for margin and profitability computation. SAP TM can distribute each of the charges used in the freight cost calculation to the item level of the freight or forwarding order. The item level cost then can be processed in SAP ERP when the accrual is posted for the supplier or customer freight invoices.



The graphic shows the data flow in an integrated environment. Sales orders and purchase orders are created in SAP ERP. These documents are transferred to SAP TM, where transportation requests are created and subsequently planned. Freight settlement documents are created. Based on the FSD type configuration, allocation is generated. The FSD and distributed costs are sent to SAP ERP for posting. An Agency Billing Document (ABD) is used to post the entries to COPA, CO or material valuation. C o n fig u rin g C o s t D is trib u tio n

Cost distribution needs to be enabled in the Freight Order / Freight Booking / FSD type Customizing. Further settings for cost distribution include distribution profiles, methods, rules, and levels. These are explained later. The distribution profile is assigned to the organizational unit for charge calculation. FSD T yp es

An FSD type, used to calculate costs for planned freight orders, should be identified. The cost distribution process should be activated for the FSD type as shown in the graphic.



C h a n g e V ie w " F r e ig h t S e t t le m e n t D o c u m e n t T y p e s " : D e ta ils

y

0 3 ^2 SQ

H n E n tn o

Fretfit Settlement Type

^ ' • MBOrtRO

FSOType

Oefiaut Type for Category

FSD Category Arctwng Retention Penod

£/ Track Changes v Bus. Warehouse

v Cost Detrtubon N irrte r Range Settng Number Range Interval

W

D ebut vabes

Figure 217: Cost Distribution For FSD Type

Distribution details are created for the valid FSD type when the FSD is created. Distribution details are stored in SAP TM and can be viewed in the Ul. SAP TM sends the FSD with distribution details to SAP ERP when the FSD is sent for accrual. C o s t D is trib u tio n P ro files, M e th o d s and Rules

Cost distribution profiles are used to identify the rules by which to distribute freight costs. A profile consists of distribution methods, distribution rules (basis for distribution) and distribution levels. "90wooww * Q

SAP Custom eng lm ptem entatw n Gude

’ O ' ^

A c tv ate Busress F u n c to r*

*

SAP NetW eaver

•

C ro » -A p p k> to n Components

»

F ra n c a l Supply Chao Management

'

SAP Transportabon Management •

Transportabon Management

*

Settrgs r SCM Bass

*

MasterOata

*

Ba*
ChangeView’DefineCostDistributionProfiles': Overview

*9§

He* Ertnes f t 3

-0 §- B 3

Dffire CoSOKJtuton PrglSts

*

Credt Management Integrator

Me

*

User Interface

:a_ntt :hl~

Jr.jj Se:*:

:a_xa ::ivr.

r-::js Ve:^:

KE.na smuieii

t e n S t:? :

* Q

Q Create Actve Verson and Model

* Q * Q

Define General Settrgs for SAP TM

Q Define SCO Data of Busress System

*

Charge Caicubbon

*

Cost D e tr tu to n

•

Q

• Qr

Q Define Cost Detrtubon Methods Define Cost D etrtuton Profles

OscrtvDon Metrod

izxn *:a»2:x p.Jc.i.D T P : r js : : it r .

prjij»Kici

rnjijn!:&ua:x Tn_n.x sidwxx n ::r.

Os. Be

Dtt.UI

□

•D J I:*

•fim.’ia; ’ ’D;

ten*:*:

»

'.««

Irje:

„1

Change View 'Define CostDistribution ProfilesDetails y

a aa

nmekks

o o .M *

ra j

!:a ju a :x Define Cos Dccrtucsn Proves Detr. Method totrtO R lU k Ofir. level

DU GrosWegfit

EWir Orect I t r D e b to r

Figure 218: Cost Distribution Profiles

M e th o d s

SAP TM provides two methods for cost distribution, as follows: •

Direct This method is normally used when all charges incurred can be distributed to individual line items of a delivery based on gross weight or volume. Normally, the charge elements may be calculated at the header or individual item level.



•

Hierarchical This method may be used when the resolution base may include other levels such as container or rail cars. In such case, there may be charges for individual container or rail car in addition to other charges. So, other charges need to be distributed to the container level first and then the final distribution should take place to allocate the cost to the line item level.

If required, you can add your own distribution methods. Rules

SAP TM supports the following rule basis to be used for cost distribution: •

Gross Weight

•

Gross Volume

•

Net Weight

•

Distance times Weight

Distribution Level

The distribution level specifies the target level to which the system allocates transportation charges for a freight order or freight settlement document. The following distribution levels are available: •

Forwarding Order

•

ERP Item

Posting Cost Distribution Data

Agency billing configuration in SAP ERP needs to be completed before cost distribution data can be posted. Posted data can be viewed in SAP ERP using the transaction code WLFLTM. Distribution data can be searched using the FSD number as the reference document number. Customer Scenarios Various customer scenarios are supported, including the following: •

Transfer freight costs for inbound deliveries and stock transfers into material valuation.

•

Post distributed costs to CO so that material-relevant costs can be tracked at the profit center level. (In such cases, material valuation is not impacted.)•

•

Post freight costs back to CO-PA for the customer outbound delivery to be accounted during profitability analysis.

Cost Distribution for LSPs

When trying to save costs by taking advantage of consolidation effects, one freight document contains the freight units of several forwarding orders. In order to find out the share of costs for each individual forwarding order, the costs incurred on the freight document are distributed to the separate forwarding orders. The distribution is done using cost distribution functionality. It is possible to set up cost distribution profiles so that the costs are shared based on the total weight of the forwarding orders, freight unit (volume or equally).



In the figure Cost Distribution, the costs are shared based on the total weight, but the costs could also be distributed equally. FW O 1 50%

- 1 0 0 kg

FW O 2 ''5 0 %

- 1 0 0 ka

F re ig h t O rd e r FBOO

100

DOCF

50

FUEL

40

>

FW O 1 - 100 kg FBOO

50

DOCF

25

FUEL

20 __ * •

FW O 2 - 1 0 0 kg

mmt

FBOO

50

DOCF

25

FUEL

20

v___________ / Figure 219: Cost Distribution to Forwarding Orders


•

Distribute costs



Unit 7 Lesson 6 Settling Freight Charges in a Group Logistics Company

LESSON OVERVIEW This lesson describes a group logistics company settlement. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


Group Logistics Company Settlement Companies are adopting various models to consolidate the transportation (and logistics) operations within a company to achieve various benefits. Transportation and Logistics Consolidation Models

•

•

•

Strategic reasons -

Better visibility of transport costs across the business units

-

Complete transportation demand visibility

Consolidation -

Higher volume of better rates

-

Centralized handling of goods and logistical operations

Standardization -

Tracking and tracing across the companies

-

Document handling and design across the companies

Embedded Logistics Service Providers (LSP) Scenarios

In the embedded LSP business scenarios, some organizational units take care of the logistical activities of the group company. These units can either be separate business units, exclusively managing the transportation activity, or business units that take care of transportation for their own needs and those of other business units. This leads to a scenario in which such embedded organizational units need to take care of the settlement with carriers for outsourced transportation, as well the settlement with internal business units, billing them for the transportation service provided.



You need support for external and internal financial reporting of all such relevant financial transactions to reflect on the financial statements, such as balance sheet and profit and loss statements, and other management accounting statements. Models for Embedded LSP Scenarios

The main models for embedded LSP scenarios are outlined below. Embedded LSP Scenarios: Models

•

Exclusive logistics and transportation with own company code. -

•

Exclusive logistics and transportation with own company code and external orders. -

•

One organizational unit cares for the logistical activities of the group.

One organizational unit cares for logistical activities of the group and serves for external companies.

One organizational unit has transportation services, additionally. -

One organizational unit participates in the core business of the group and cares for the logistical activities of the group.

iaitaiVi

SAT

SAT

1

2

SAT

ECL

Model 2

Figure 220: Group Company Embedded LSP Scenarios

Exclusive Logistics and Transportation with Own Company Code

For the high-level process flow for exclusive logistics and transportation with own company code, the relevant terminology is as follows: Group company A financially and legally independent organizational center that is not tied to a geographical location and that is registered under business law. In this example, Super Animal Trading (SAT) is the group company.



Company code The smallest organizational unit for which a complete, self-contained set of accounts can be drawn up for the purposes of external reporting. In this example, SAT 1 (producing pigs), SAT 2 (producing cows) and SAT 3 (internal LSP) are covered under the group company SAT. Exclusive Logistics Transportation Scenario

SAT: Group Company SAT 1: Trades Pig Meat SAT 2: Trades Cow Meat SAT 3: Logistics Organization ECL: Efficient Cargo Lines

Figure 221: Exclusive Logistics Transportation Scenario

The company SAT has three business units in this scenario. Business Unit SAT 1 produces pig meat, and business unit SAT 2 produces cow meat. The business unit SAT 3 is responsible for the transportation of the goods. That includes consolidation of meat, organization of the transportation, and execution of the transportation. Since the company SAT does not own its own fleet, it is working with external carriers for the actual transportation. ECL is a trucking company that takes orders from different clients and does the transportation. The flow of goods and documents appears as follows: 1. SAT 1 has pig meat that needs to be transported. Therefore, SAT 1 transfers the transportation demand to SAT 3 for transportation execution. 2. SAT 2 has cow meat that needs to be transported. It also transfers the demand to SAT 3. 3. SAT 3 consolidates the demand and plans the transportation. In the next step, it finds the most suitable carrier, which in this case is ECL. SAT 3 then does the subcontracting with this company. 4. After transport execution by ECL, the SAT 3 company receives an invoice from the ECL to pay for the transport of the pig and cow meat. 5. SAT 3 receives the invoice, checks it, and does a cost distribution to bill SAT 1 and SAT 2. 6. SAT 1 and SAT 2 receive the internal costs, and pay SAT 3 for the transportation.



Typical SAP Transportation Management (TM) and ERP System Document Flow and Setup S A T 1 in E R P

S A T 3 in T M

S A T 2 in E R P

Figure 222: TM and ERP Document Flow Setup

The independent SAP ERP blocks in the figure do not indicate different ERP systems or clients, because this is not currently fully supported. It is only supported without the cost distribution functionality in the internal settlement document. In this scenario, different documents are exchanged between SAP TM and SAP ERP. The document flow typically appears as follows: 1. Business unit SAT 1 and SAT 2 transfer the demand as a Sales Order (SO), Delivery (DEL), Stock Transfer Order (STO), or Purchase Order (PO) to the TM system. SAT 3 takes over from here. 2. The demands are saved as Order-Based Transportation Requirements (OTRs) or DeliveryBased Transportation Requirements (DTRs) in SAP TM. Then freight units are built, and these are then planned to Freight Orders (FO) or Freight Bookings (FB). 3. After transport execution, the Internal Settlement Documents (ISD) and Freight Settlement Document (FSD) are created. 4. These documents are then transferred to the SAP ERP system for SAT 3. The freight document creates a PO and a Service Entry Sheet (SES). The ISDs create an SD billing document. These billing documents then create account payables (in the same ERP system only) on SAT 3 (as vendor) in the company code for SAT 1 and SAT 2, which act as payers of the freight cost. 5. Account payable documents are created in Financial Accounting (FI) and, if the cost distribution is enabled, the Agency Business Document (ABD) is also created. Process Requirements

Process requirements are as follows:



•

Creation of payables for the shipper companies (for example, SAT 1 and SAT 2, to pay for internal settlement from SAT 3).

•

Each of the shipper companies involved in the internal settlement require to post the freight cost to the underlying transportation requirement.

•

Transportation cost distribution is done in SAP ERP via ABDs, and is then posted; for example, the SO items.





Unit 7 Lesson 7 Managing a Freight Contract

LESSON OVERVIEW In this lesson, you learn how SAP TM can support the process of negotiating long-term transportation contracts with customers and transportation service providers alike. LESSON OBJECTIVES After completing this lesson, you will be able to:

•


S trategic Freight Scenarios

Strategic Freight Management (SFM) impacts the scenario in which you propose, negotiate and create agreements for long-term transportation service contracts with both transportation service providers and customers. SFM can be divided into two different processes, as follows:



•

Strategic Freight Procurement A shipper, using SAP TM, requests a contract proposal from one or several Logistics Service Providers (LSPs), providing them with information such as requested volume and other prerequisites. This information is gathered by SAP TM in collaboration with SAP Analytics tools. The request for a contract is sent to the LSP as a Request for Quotation (RFQ) and is answered with a quote received from the LSP.

•

Strategic Freight Selling The LSP uses an SAP TM system and receives an RFQ from a customer. In this case, the LSP needs to compare the customer's request with the existing services offered and needs to find the matching service products, adapt them to the customer's needs, and respond by creating and sending an appropriate quote to the customer.

As you can see, strategic freight management is rarely used by a single company in isolation. It is rather likely that only one of the two SFM scenarios are used. However, both scenarios make use of Transportation Charge Management master data provided by SAP TM, or else create new master data for Transportation Charge Management.

Strategic Freight Procurement

►

A C om prehensive trade lane analysis

D efine ca rrie rs to be included in th e RFQ.

Receive responses fro m carrier.

Forecast transportation requirem ents

D efine target business shares

D eterm ine transportation spend by trade lane.

D eterm ine p rocurem ent needs fo r each com bination of tradelane, equipm ent, com m odity, service level.

Approval w o rk flo w fo r R FQ A nalyze m ultiple scenarios S u bm it R F Q to S tart negotiation w ith carriers ca rrie rs and initiate S upport m ultiple additional bidding negotiation rounds round.

Approval w orkflow . G enerate agreem ents based on quotations G enerate allocations based upon awarded business shares M on itor and adjust agreem ents/al locations based upon planned/actual com parisons

C reate m aster R FQ

Figure 225: Strategic Freight Procurement

Strategic freight procurement is tailored to support shippers (for the most part) to procure long term transportation services at LSPs or carriers. However, LSPs can also use this scenario to procure transportation services from carriers, while offering transportation services to clients at the same time. The strategic freight procurement process is divided into four process steps, as follows:



•

Prepare RFQ

•

Submit RFQ

•

Evaluate Responses and Optimize

•

Generate Agreements

More details on each process step are included in the following sections. Prepare RFQ

In the first process step, the shipper prepares the procurement requirement. There is no interaction with carriers during this process step. The preparation step includes the analysis of historic transportation and turning the analysis into a forecast for the forthcoming period. Once the procurement need or requirement has been determined, the shipper divides the requirement into different scenarios, separated by trade lanes, commodity codes, transportation modes, and so on. The preparatory work up to this point does not necessarily need to be done in an SAP TM system. The analysis of historic data, forecast of transport volumes, and classification of procurement needs could also be carried out in legacy systems. As the final task of the first process step, the central document for the strategic freight procurement process, the Freight Agreement Master RFQ is created. All procurement needs and their classifications are entered in this master RFQ. Submit RFQ

In the second process step, the interaction with carriers begins. Carriers supposed to take part in the strategic freight procurement process are added to the Master RFQ and, if needed, target business shares are assigned amongst them. After an optional approval step inside the purchasing organization, the individual RFQs are created for each carrier and sent. Evaluate Responses and Optimize

Once the carriers have responded to the RFQ, the responses can be evaluated and compared. The SAP TM system supports the comparison by creating ranking lists and suggesting the optimal business shares. Negotiation rounds with carriers can also be started from here. Generate Agreements

Once the optimal business shares and carriers are selected for the next period, they can be awarded. Awarding the carriers in the SFP process means freight agreements are generated for them. Freight agreements act as the contract between shipper and carrier.



Freight Agreement Management on the SAP TM Collaboration Portal r SAP Transportation Management coNaboration portal

HOME : FREIGHT ORDER MANAGEMENT

37

User BobTro

FREIGHT SETTLEMENT

Open

9

FREIGHT AGREEMENT MANAGEMENT

410

Pending

Open

Freight Settlement Self-Billing

Self-Billing

Invoice Submission

Invoice Submission

Invoice Submission

Disputes

Disputes

Freight Orders

Invoices

Invoices

9 For Approval

75

85

129

2

Submitted

Not Invoiced

Submitted

For Approval

Freight Agreement Management Freight Agreement

Freight Agreement

RFQs

RFQs

Freight Agreements

193

0

30

Open

Submitted with Errors

Current

Figure 226: Freight Agreement Management on the SAP TM Collaboration Portal

In the Freight Agreement Management screen on the SAP TM Collaboration Portal you can perform the following actions: •

As a shipper, you can specify terms and conditions in the Freight Agreement RFQ. Your carrier or logistics service provider must accept your terms and conditions the first time they open a freight agreement RFQ. Your carrier can download the freight agreement RFQ master Microsoft Excel document only after accepting the terms and conditions.

•

Your carrier can upload and submit multiple responses in the SAP TM Collaboration Portal for the same freight agreement RFQ master. The SAP TM system considers the latest response that is before the response deadline.•

•

Your carriers can view all freight agreements that they have with you, including the freight agreements that have expired, that are valid on the current date, or are valid for a period of time in the future.



Freight Agreement Details in the SAP TM Collaboration Portal HOME

FREIGHT ORDER MANAGEMENT

Freight Agreement RFQs

Show Details Status

'V

FREIGHT SETTLEMENT

FREIGHT AGREEMENT MANAGEMENT

Freight Agreements

E>oon

Quick Filter

F re ig ht A gree m e nt

Expired *

Future

All

View

-m

D escription

A gree m e nt V alid Fro m

A gree m e nt Valid T o

if f

CKS_MAS$_RT-LCL*GBL

TEST-MASS RELEASE LOCAL

February 28.2015

February 01.2016

(1?

CP_AGREE_SIMPLE

Cp_Te$t

September 30,2014

October 01.2015

September 30.2014

December 01.2016

( l?

CP_FA_COMPIEX_03

CP Complex Freight Agreement

if f

KAN_FR_AGR1

kanthi freight agreement

February 12.2015

March 30.2016

0?

KD_AGR_MASS_01

TEST MASS RELEASE 01

October 09,2014

October 10.2015

[1?

KD_AGR_MASS_02


October 09.2014

October 10.2015

(&

KD.FA.MASS

TEST MASS RELEASE

October 09.2014

October 10.2015

KD_FA_MASS_01


October 09,2014

October 10.2015

KD_FA_MASS_02


December 31.2014

November 10.2015

0? 05

FREIGHT AGREEMENT DETAILS

i

Notes

hello agreement [...]

F r e ig h t A g r e e m e n t D o c u m e n t s

Agreement KD_AG R_M ASS_01

FREIGHT AGREEMENT DETAILS Description TEST MASS

F ile N a m e

Type

s s (JB

KD_FA_MASS xJsx KO_AGR_MASS_01 xlsx KD_AGR_MASS_01 xlsx

RELEASE 01 Status Current Valid From October 9.2014 V alid To October 10.2015 NOTES

Figure 227: Freight Agreement Details in the SAP TM Collaboration Portal

You can display all the freight agreements that you have with your shipper. You can apply the quick filter to restrict the number of freight agreements displayed. The system displays the exact validity status of each freight agreement (Expired, Current, Future, and All), as well as the validity period of the freight agreement. You can navigate to the details of a freight agreement either using the ID of the freight agreement or choosing the Show Details pushbutton for the selected freight agreement. You can also review a list of documents that relate to a freight agreement. Filter From the toolbar, you can apply the quick filter to filter freight agreements by their validity statuses (Expired, Current, Future, and All). In the table view, you can apply a filter to those fields that support the filter function by entering a filter value in accordance with the SAP UI5 standard. You can show or hide individual columns and change their sequence by using drag and drop. To remove the filter, delete the value from the input field and press ENTER. Search You can find freight agreements using the search field in the toolbar. The system returns all freight agreements that contain the search term in a field (fuzzy search) irrespective of whether the field is shown or hidden. If you want to delete the search term, click the cross at the end of the search field. Sort



If a field can be sorted, you can display the contents of the individual columns in ascending or descending order. To do so in the detail view, place the cursor on a column header and press the primary mouse button. Alternatively, press ENTER when the focus is on the Ul element. If you repeat the operation, the sort sequence is reversed. To do so in the table view, place the cursor on a column header and press the primary mouse button. Then select the required sort option (Sort Ascending or Sort Descending). If you want to sort by several columns, press and hold CTRL. Freight Agreement Microsoft Excel Integration fl

0

♦>

C*

HOME

4 •

C ,U i« ,Wn'TDov*nlo*d$‘> • PAGELAYOUT

NSER’

REVIEW

VIEW

7 AutoSum

II —

Q M erest C od* *

1

o.

,

*j

x

Coodtanti fo rm * * Formjltfig-

Optowd

•»

*

X

for*

*/

IX

be4

ADO-INS

&

U •

Tofcte*

Nu«6«r

*fcpntn>

lm«ft Dekt« Form* ....... ST|(ei

31

£ C k *-

$r ft S o n F in d 4 Fihei Select *

Ctfls

Agrwm ent Header

AgreemenL Freight Agreement 1

*<

A1

B /

KD.AGR.MASS.01j Ib ■ DATA

III

* |ll> - F S C
;

FORMULAS

Descnplion Agreemenl Version

Negotiation Cycle Agreement Status Vaid-f rem Date

V*J-To Date

Header

Document Agreement Type

Carrier

Description

AQM CAR001

CARRIER 1

Currency

2

KD AGR 1AASS 0

TEST MASS

3 4

1

RELEASE 01

0

0

Released

10 10 2014

10 10 2015

AQMF

5

s

P e ttfs

10C W0652 1Q-Oa-20U

A Item No. 100 Trade Lanes Orientation

Details Rate Table Calc Sheet Instruction Type Charqe Type Positive/Neqative Value Type Valid From Valid To Currency Source Location (= ) AQM SLOC1

, 00-3906S2-fC-NOV-2CU

lOO-SWSSÔ SERÔ'd

100-390653-ID-JAN , . | (j»)

0 H C D E F G Item Calculation Valid From Valid-To Date Shipping Type Movement Stage Category Date Description Sheet Type AQM FRA ITEM 130577 10 10 2014 LTl (Less Than T Door to CFS 10 03 2015 Pre-Camage Source Type

Source

Destination Type

Destination

00000000000000390652 00000000000000130577 AQM BASE Positive Value Absolute Value 10 10 2014 09 11 2014 USD Confirmed Capacity 0

Value 100

Figure 228: Freight Agreement Microsoft Excel Integration

You can export the content of a freight agreement table from the table view to a Microsoft Excel file.



S trategic Freight Selling

Commercial/Freight Manager Data Analytics

v

turn usa

LSP / Carrier

Shipper / LSP

W o r k f lo w /A le r t s / T M B W

Historical demand per trade lane per customer Historical revenue analysis on a trade lane or per customer

Convert customer data into internal format.

Automatic proposal of lane-based freight rates

Derive lane based service products

Arrive at price which includes all attributed costs

Provide one single document for the end to end quote to contract process.

Evaluation of product offerings and performance periodically (BW reports)

Contract creation/extension Rate builder from shipper's quote.

Simulate forwarding charge/ revenue based on the proposed bid.

ongoing

Instantly

Instantly

ongoing

Figure 229: Strategic Freight Selling

The strategic freight selling process also consists of four process steps that are designed to lead to a Forwarding Agreement (FWA). The steps are as follows: •

Data Analytics Similar to the strategic freight procurement process, analysis of historic demand is crucial in allowing LSPs and carriers evaluate whether a trade lane is in demand. This analysis is not mandatory for the strategic freight selling process.

•

Product / Service Offering Once the RFQ has been received from the customer, the LSP creates the leading document for the strategic freight selling process, the Forwarding Agreement Quotation (FWAQ). This document contains all data requested by the customer.

•

Pricing & Margin Optimization Once the FWAQ has been created, the correct rates can be derived for the customer. Because the LSP already provides standard service product catalogs, the task of the sales agent is to determine the service products that match the customer’s requirements. Once the matching service products are found, the corresponding rates are drawn from the service product into the FWAQ where it can be amended if the customer requires some deviations from the standard services or has a particular discount applied. If the customer accepts the offer and



signs a contract, the FWAQ is turned into a forwarding agreement which acts as a contract between the LSP and the shipper. •

Relationship Management Similar to the data analytics process step, the customer’s orders are monitored in order to decide whether the currently offered services and volumes are appropriate for the customer. Data analytics and relationship management are ongoing processes, while product or service offering, and pricing & margin optimization are instant process steps initiated by a customer's RFQ.

FWA Microsoft Excel Integration

w

0 1 a. a £

Review Quotation

Excel (via Mail, or any system)

Multi-Round Negotiations with Revisions

Forwarding Agreement Quotation

Download Forwarding Agreement Quotation to Shipper Excel

Determine Matching Agreements

5

■ Location pairs • Calculation sheet ■ Charge types

Finalized Quotation

New Forwarding Agreement

Suggest Rates / Services

Figure 230: FWA Microsoft Excel Integration

The LSP can process the FWAQ which was created from an upload of a Microsoft Excel file. Once this has been completed, the quotation can be submitted by downloading the derived rates into the Microsoft Excel sheet format, which the customer initially provided. LESSON SUMMARY You should now be able to: •




Unit 7

Learning Assessment

1. A forwarding agreement is used to define the contractual agreement between you and the carrier you sub-contract to deliver goods. It forms the basis of the charges payable by you to the carrier. Determine whether this statement is true or false. | True False 2. Based on what you have learned about calculation sheets, place a tick beside each of the options below which is true. Choose the correct answers. | A The CS is closely connected to rate tables and scales. B The CS provides a clear view on how the final amounts owing to carriers are arrived at. | C Even though the final amounts for two deliveries, A and B, may vary according to the specifics of each individual delivery, the underlying rationale as defined in the CS may be the same. D A new CS must be created for each delivery. 3. Using a rate table, a rate can be determined based on different dimensions. Determine whether this statement is true or false. | True False 4. Scales have a 1:1 relationship to rate tables. Determine whether this statement is true or false. | True False



5. What does the master data cockpit provide an overview of?

6. When calculating carrier charges in a freight order, the freight agreement is determined based on what? Choose the correct answers. | A Sales organization B Purchasing organization I C Carrier D Ordering party 7. Which of the following options are possible freight settlement scenarios? Choose the correct answers. | A Shipper freight invoicing B Customer freight invoicing C Supplier freight invoicing 8. During supplier settlement, a separate FSD is created for every freight order. Determine whether this statement is true or false. | True False 9. Which of the following business documents are created in SAP ERP when transferring a freight settlement document from SAP TM? Choose the correct answers. | A Sales order B Purchase order C Service entry sheet D Shipment cost document



10. Place the steps of the high-level invoice submission process in the correct sequence. Arrange these steps into the correct sequence. ~\ The carrier invoice can then be automatically verified with the respective FSD and PO/SES in SAP ERP, posted to the accounts, and the payments can be arranged. H After the invoice amounts and the amounts of the FSD and FO match, a carrier invoice is automatically created in SAP TM to be posted from TM to ERP. If applicable, a collaborative dispute process is triggered. j The carrier creates an invoice directly in the portal. The shipper creates a freight order and executes the charge calculation. 11. When calculating charges in a forwarding order, the forwarding agreement is determined based on what? Choose the correct answers. | A Sales organization B Purchasing organization | C Carrier D Ordering party 12. When transferring a forwarding settlement document to SAP ERP, a billing document is created in SD. Determine whether this statement is true or false. | True False 13. Provide an overview of the internal settlement types.



14. Which of the following options are methods of cost distribution provided by SAP TM? Choose the correct answers. | A Direct distribution B Indirect distribution C Hierarchical distribution 15. In the embedded LSP business scenarios, some organizational units take care of the logistical activities of the group company. These units can either be separate business units, exclusively managing the transportation activity, or business units that take care of transportation for their own needs and those of other business units. Determine whether this statement is true or false. | True False 16. SAP TM supports the negotiation and creation of agreements for long-term transportation service contracts with both transportation service providers and customers. Determine whether this statement is true or false. | True False



Unit 7


1. A forwarding agreement is used to define the contractual agreement between you and the carrier you sub-contract to deliver goods. It forms the basis of the charges payable by you to the carrier. Determine whether this statement is true or false. | True \x \ False Correct. The description here refers to a freight agreement, not a forwarding agreement. 2. Based on what you have learned about calculation sheets, place a tick beside each of the options below which is true. Choose the correct answers. [~xj A The CS is closely connected to rate tables and scales. [x ] B The CS provides a clear view on how the final amounts owing to carriers are arrived at. |~X~| C Even though the final amounts for two deliveries, A and B, may vary according to the specifics of each individual delivery, the underlying rationale as defined in the CS may be the same. D A new CS must be created for each delivery. Correct. It is not necessary to create a new CS for each and every delivery. 3. Using a rate table, a rate can be determined based on different dimensions. Determine whether this statement is true or false. [x ] True False



4. Scales have a 1:1 relationship to rate tables. Determine whether this statement is true or false. | True \x \ False

5. What does the master data cockpit provide an overview of? The master data cockpit provides an overview of the agreements and related charge management master data.______________________________________________________ 6. When calculating carrier charges in a freight order, the freight agreement is determined based on what? Choose the correct answers. | A Sales organization |~xj B Purchasing organization [x ] C Carrier D Ordering party

7. Which of the following options are possible freight settlement scenarios? Choose the correct answers. | A Shipper freight invoicing |~xj B Customer freight invoicing |~xj C Supplier freight invoicing

8. During supplier settlement, a separate FSD is created for every freight order. Determine whether this statement is true or false. True \x \ False That's correct. Collective settlement is also supported.



9. Which of the following business documents are created in SAP ERP when transferring a freight settlement document from SAP TM? Choose the correct answers. | A Sales order |~X~| B Purchase order [~xj C Service entry sheet D Shipment cost document

10. Place the steps of the high-level invoice submission process in the correct sequence. Arrange these steps into the correct sequence. [5] The carrier invoice can then be automatically verified with the respective FSD and PO/SES in SAP ERP, posted to the accounts, and the payments can be arranged. [4 ] After the invoice amounts and the amounts of the FSD and FO match, a carrier invoice is automatically created in SAP TM to be posted from TM to ERP. [3] If applicable, a collaborative dispute process is triggered. [2] The carrier creates an invoice directly in the portal. [T] The shipper creates a freight order and executes the charge calculation.

11. When calculating charges in a forwarding order, the forwarding agreement is determined based on what? Choose the correct answers. [~xj A Sales organization B Purchasing organization | C Carrier [x ] D Ordering party



12. When transferring a forwarding settlement document to SAP ERP, a billing document is created in SD. Determine whether this statement is true or false. 0

True False

13. Provide an overview of the internal settlement types. When the business unit and the gateway belong to different company organizations, the settlement is called an intercompany settlement. When the business unit and the gateway belong to the same company organization, the settlement is called an intracompany settlement.___________________________________________________________________ 14. Which of the following options are methods of cost distribution provided by SAP TM? Choose the correct answers.

|~xj A Direct distribution B Indirect distribution

|~xj C Hierarchical distribution 15. In the embedded LSP business scenarios, some organizational units take care of the logistical activities of the group company. These units can either be separate business units, exclusively managing the transportation activity, or business units that take care of transportation for their own needs and those of other business units. Determine whether this statement is true or false. [x ] True False

16. SAP TM supports the negotiation and creation of agreements for long-term transportation service contracts with both transportation service providers and customers. Determine whether this statement is true or false. [x ] True False


TM100 - Processes in TM.pdf

Recommend Documents