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Why SAP for transportation management?

When you initially start out with any business, you’ll be bombarded with acronyms and SAP is most likely to be one of the first names you hear.

SAP currently has a solution for almost every market and niche. As a result, there’s a lot of SAP-related information to learn. Today, we’ll concentrate on a single SAP speciality and that is SAP’s transportation management system (TMS) software.

SAP is a best-in-class Transportation Management System that allows you to manage all aspects of your company’s transportation processes, such as transportation planning and optimization, freight tendering, and rate management. SAP TM is designed for both shippers and logistics service providers and covers all modes of transportation (air, ocean, rail, and road).

SAP for Transportation Management

SAP has created specialized software products that cater to specific market segments. As a result, there’s a long list of markets, industries, and customers to choose from. SAP strives for increased efficiency and reduced redundancy in general. SAP aids in the management of transportation requirements at a high level.

SAP achieves its objectives by utilising automation and collaboration tools. Furthermore, SAP software programmes handle a lot of heavy liftings, such as order entry and call logs, as well as invoice settlements. Everything is geared toward making things more efficient.

The SAP transportation management system includes five subcategories to consider:

  • Organizing the supply chain
  • Logistics in the supply chain
  • Manufacturing
  • Management of the product lifecycle
  • Asset management for businesses

If your company has a supply chain, you’ll notice that all of these categories are intertwined. SAP’s TMS software can connect to all of these different types of data. To put it another way, a holistic approach!

Modules of SAP Transport Management System –

Vendors typically provide a large number of integration options to ensure that you can connect to your preferred WMS or ERP with ease. But some of the classical features of TMS are:

  1. Order Management – Increased visibility into shipment and order management improves customer satisfaction while lowering freight management expenses. Using rules-based routing, SAP TMS improves the efficiency of order and process management.
  2. Shipment Management – Transportation management processes that are simplified allow logistical operations to move more quickly, resulting in a more responsive supply chain. Transportation procedures that respond dynamically save costs while increasing efficiency.  However, a TMS should be able to generate bespoke pricing rules to meet even the most complex tariffs and give a price to a client as soon as they submit a request.
  3. Planning – Order delivery accuracy and on-time delivery are improved with planning tools. Plan the most fuel-efficient transit route and connect with the best carrier using automated planning methods. You can also plan the loading space of trucks, trailers, and containers and get a computation of the available loading space, taking maximum loads and weight into account.
  4. Freight Management – SAP TMS has a set of solutions that can help you save money on transportation management operations while also keeping track of shipper and trade agreement compliance.
  5. Analytics – SAP TMS may make use of analytics tools to provide real-time data-driven data to aid in the optimization and speeding up of planning operations. This solution helps an operation stay competitive by providing tools to better cooperate with business partners while also reducing data complexity.

Benefits of SAP Transport Management System


  • By integrating ERP and SAP TMS, a company can achieve greater automation by allowing carriers to be selected automatically. 
  • TMS provides real-time data collaboration with shippers for comprehensive visibility and accuracy. 
  • It forecasts the financial impact of a certain carrier on the business and, as a result, chooses the optimal carrier for transportation. 
  • It enables automatic order processing to eliminate day-to-day manual order processing, reducing costly errors caused by human participation.

Better Customer Experience

Even though ERP offers CRM tools, combining it with TMS takes the customer experience to the next level by allowing you to:

  • Arrange planned pickup, in which the user can define the desired delivery location and time.
  • The TMS allows the user to create exact appointments, removing any possibility of error or disappointment.
  • Manage shipment disagreements that emerge as a result of looming delivery deadlines, potential damage, and other bothersome issues with products handling.
  • Users can change freight rates on collaboration portals to appropriately represent any faults made during shipment.

Improved Transport Planning

Integrating ERP and TMS provides better transportation planning by providing access to improved analytics and reports. With SAP TMS integration, a user can consolidate shipments while taking into account elements such as:

  • Capacity and load optimization, 
  • Lowering overall shipment costs and 
  • Improving the bottom line. 

It also assists with multi-modal shipments, allowing the user to choose the most cost-effective form of transportation for the company.

Proper Freight Management

Because neither system can complete the task on its own, both ERP and TMS must be integrated to optimise the benefits and capabilities of the resources. 

Though ERP unifies all functions across the organisation, it lacks the explicit level of detail required for seamless transportation, particularly when multiple locations across geographies must be classified based on various compliance parameters, as products are automatically loaded from ERP to TMS.

Better Visibility

Users can utilise tracking and tracing tools to maintain track of their shipments at all times. Users can get a competitive advantage by utilising cross-system document flow and data-driven fee negotiation.


SAP has collaboration capabilities to help you communicate with your colleagues and clients more effectively. Automation solutions help to streamline procedures that would otherwise necessitate a significant amount of manual labour.

SAP Business One Transportation Management is a platform that allows businesses to run more efficiently and effectively by giving them total visibility into operational performance, allowing them to track expenses and optimise asset utilisation.

MegathermErp, being an Authorized SAP Business One Partner in Kolkata, intends to provide solutions to movers and packers of any type big or small, depending on their needs and requirements.

About the author

MegathermERP is an Authorised SAP Business one partner in Kolkata, India. We offer complete ERP solution in eastern Indiaincluding Kolkata, Odisha, Bihar, Jharkhand, Assam and Raipur-Chattishgarh. It is the focus point of our business that we help our customer achieve a robust IT infrastructure so that they can concentrate in their core business without having sleepless nights concerned about IT.

Call our help desk to know more or visit our website www.megathermerp.co.in

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