Transportation Management

RETAIL OVERVIEW OF SAP TRANSPORTATION MANAGEMENT SOLUTIONS

As retail customer demands fluctuate, it’s critical that retail organizations simplify commercial transportation processes to ensure they meet expectations for product fulfillment. SAP transportation management presents a variety of solutions for retail organizations to manage internal costs of domestic and international freight.

Retailers who obtain licensing through SAP products, such as SAP Transportation Management and SAP Event Management, can streamline transportation management processes to:

  • Reduce operation and transportation management costs
  • Improve asset usage
  • Boost customer satisfaction

To continue to increase profit margins, retail companies need to monitor transportation activities, including meeting compliance and controlling costs. Effective transportation management improves consistency, speed, and control throughout the retail enterprise. SAP supports the entire spectrum of the retail transportation lifecycle by offering an integrated approach to managing:

  • Freight, including planning, tendering and settling
  • Hazardous goods and international trade, such as carriers, orders, and compliance

By streamlining transportation processes, retailers benefit by becoming more flexible, improving compliance, decreasing costs, and maximizing resources.

SAP TRANSPORTATION MANAGEMENT BENEFITS AND FEATURES OVERVIEW

SAP transportation management solutions offer several benefits and features to connect retail processes. Retail organizations can consolidate orders and maximize the return on internal transportation costs. With real-time visibility for domestic and global shipping processes, retailers can accurately forecast demand, refine transportation planning, and regulate volume shipping.

SAP transportation management solutions offer the following benefits for retailers:

  • Cutting-edge technologies to streamline and integrate transportation processes
  • Cost-efficient and customer-compliant transportation plans
  • Consolidation for inbound, outbound, domestic, and international shipments
  • Sharpened customer service and on-time delivery frequency achieved by improving transportation logistics
  • Effective management of volume transportation and logistics data with modern analysis and planning

SAP transportation management solutions include the following features:

  • Transportation requirements management, from data entry to final settlement
  • Freight tendering as an automated environment
  • Freight forwarding and settlement for carriers and customers to manage and settle freight agreements
  • Freight planning and optimization to balance freight costs and constraints
  • Carrier booking to create an automated, collaborative environment
  • Transportation execution and monitoring
SAP TRANSPORTATION MANAGEMENT FEATURES AND SERVICES

Transportation Requirements Management

When retail transportation processes have been integrated with SAP solutions, companies have experienced approximately 20 percent lower spending. Companies that have taken advantage of SAP transportation management features with automatically calculated and distributed costs have experienced approximately 10 percent fewer invoice errors.

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Retail companies need to centralize transportation requirements and manage all areas, from entry to final settlement. SAP solutions integrate transportation order processing with order-to-cash and order-to-pay processes. This partnership gives retailers:

  • Early visibility of requirements for planning purposes
  • The ability to manage requirements received manually or electronically
  • The advantage of being able to have stakeholders receive and create order-based or delivery-based transportation requirements
  • Support for change management based on business rules
  • Centralization of transportation requirements management to reduce redundant tasks

Using a highly configurable, role-based user interface, companies will improve utilization, usage, and visibility. In addition, retailers will be empowered to plan sales orders before they receive their delivery notes, which can reduce cost and help retailers focus on more value-added activities.

Freight Tendering

Reducing transportation spending and improving logistics management are benefits for retailers that use freight tendering solutions from SAP. By creating an automated freight tendering environment, companies can take advantage of broadcasted freight request for quotation (RFQ)and manual peer-to-peer direct tendering. Web and mobile platforms, email, texting, and business-to-business (B2B) communications support RFQ processing.

Freight Forwarding and Settlement

Reducing transportation spending and improving logistics management are benefits for retailers that use freight tendering solutions from SAP. By creating an automated freight tendering environment, companies can take advantage of broadcasted freight request for quotation (RFQ)and manual peer-to-peer direct tendering. Web and mobile platforms, email, texting, and business-to-business (B2B) communications support RFQ processing.

Freight Forwarding and Settlement

By integrating SAP software, retail companies can manage and settle freight agreements for carriers and customers. Specific features include:

  • Advanced charge calculations
  • Management of freight agreements, tariffs, and charges
  • Collaboration with business partners to resolve disputes
  • Integration with financials for freight auditing, carrier payment, customer invoicing, internal settlement, and cost distribution

Comprehensive freight cost management capabilities reduce order processing time, decrease transport spending, and improve billing accuracy.

Freight Planning and Optimization Solutions

Retail organizations can use SAP software freight planning and optimization solutions to balance freight shipment processes and considerations of applicable limitations and constraints. Logistics and transportation planners have access to SAP’s interactive user interface, which offers custom configuration options for domestic and international shipments across all platforms in a single environment. Specific functions include:

  • Visual load planning for inbound and outbound shipments
  • Built-in compliance capabilities pertaining to requirements for international trade and hazardous goods management
  • Planning features to reduce freight spending while maintaining customer service standards

To further SAP freight planning and optimization integration, retailers can purchase additional license materials, including:

  • SAP EHS Management, product safety: This EHS- (Environment, Health, and Safety Management) based application includes basic EHS data and tools and features related to global label, product safety document, and dangerous goods management.
  • SAP Transportation Resource Planning, which minimizes costs by increasing the visibility of transportation services. SAP Transportation Resource Planning for T&L offers many of the same features.

Carrier Booking

Retail organizations that book domestic or international shipments by ocean or air benefit from SAP software. By automating a collaborative environment for carrier booking, retailers can:

  • Increase asset utilization through improvements in responsiveness and information accuracy
  • Reduce spending by consolidating the total amount of containers used for shipments
  • Improve on-time delivery performance by streamlining processes related to carrier communication
  • Increase transparency by providing increased data visibility and analytical information

Transportation Execution and Monitoring

Streamlining transportation operations benefits retailers by enhancing compliance, reducing transport costs and order fulfillment time, and creating transparency for business processes. SAP solutions improve communication with carriers, dispatching and tracking freight orders, and maintaining printed and reported documentation. In addition, services integrate with warehouse and international customs and compliance processes. This cohesion enables retail companies to improve cargo handling and quickly move through each step of their logistic workflow.

To further SAP transportation executing and monitoring integration, retailers can acquire additional related license materials, including SAP Extended Warehouse Management that ranges from five units to more than 100 units. Another option is the SAP GTS (Global Trade Services) Bundle – an application that offers comprehensive global trade management solutions for managing imports and exports.

To complement transportation management solutions, SAP offers the Model Company for Extended Supply Chain service via a cloud-based reference landscape that combines the latest SAP Applications with related Best Practices. This solution also includes preassembled scenarios for Supply Chain Planning and Execution, Project and Portfolio Management, and Product Lifecycle Management, which decrease time-to-value and increase project outcome.

RETAIL ENTERPRISE TRANSPORTATION MANAGEMENT INTEGRATION

Retailers who are interested in integrating SAP transportation management solutions can partner with VisionTree’s experts, who provide continuous support throughout the process. VisionTree helps retailers focus on transport and logistics operations by providing ongoing support and the ability to take advantage of SAP training services.

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**Similar solutions are available for the Retail and Wholesales Distribution Industry.

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