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SAP Transportation ManagementFrom transportation demand to settled freight cost
We implement SAP Transportation Management for shippers and logistics providers, covering planning, carrier collaboration, execution, visibility and freight settlement, with EWM and ERP integration designed into the process from the start.
Talk to a TM architectTM engagements we run
Shipper implementations
Inbound and outbound freight for manufacturers, retailers and distributors
LSP & 3PL implementations
Forwarding, customer charge calculation and subcontracting
Freight settlement & costing
Agreements, rates, charge calculation, distribution and settlement
TM + EWM integration
Freight units, loading, yard handoff and Advanced Shipping & Receiving
Application Management Services
Incidents, rate maintenance, tuning and change
Advisory & assessments
Fit, freight baseline, architecture and staged roadmap
The transportation process chain
- Demand
Freight unit building, order and delivery integration, forwarding orders
- Planning
Manual and optimiser-based planning, consolidation, routing and capacity
- Carrier
Selection, tendering, collaboration and subcontracting
- Commercial
Freight agreements, rates, charge calculation and cost distribution
- Execution
Status, milestones, delays and exception handling
- Settlement
Settlement documents, invoice verification and accruals
- Integration
EWM, yard, FI/CO and carrier connectivity
- Visibility
Tracking, milestone events and customer-facing status
Close the gap between the transport plan and the truck.
DriverX connects dispatch, driver execution, real-time shipment status and electronic proof of delivery to the SAP TM process. It is useful where carrier fleets are fragmented and full telematics coverage is not practical.
Six phases, freight-first
- 01
Assess
Freight profile, lanes, carriers, operating model and spend
- 02
Design
Planning model, charge structures and integration
- 03
Build
Configuration, rates, connectivity and extensions
- 04
Test
Plan-to-settle scenarios with realistic lanes, rates and volumes
- 05
Cutover
Agreements, carrier onboarding and go-live
- 06
Stabilise
Settlement reconciliation, tuning and AMS transition
TM and EWM in one execution practice
One architecture across transportation, yard and warehouse handoff
Freight costing and settlement treated as core business scope
GCC-aware design for mixed fleets, subcontracting and cross-border operations
Common questions about SAP TM
What is SAP TM?
SAP Transportation Management (TM) plans, executes and settles freight for shippers and logistics providers. Its scope runs from transport demand through carrier selection and tendering to execution tracking and freight cost settlement.
How does SAP TM work with SAP EWM?
SAP Transportation Management (TM) plans the transport, and SAP Extended Warehouse Management (EWM) carries out picking, staging and loading. When both run in the same SAP S/4HANA system, Advanced Shipping and Receiving links them.
What is freight settlement in SAP TM?
Freight settlement in SAP Transportation Management (TM) turns completed transport into verified cost. It calculates charges from the agreed rates, creates settlement documents for carriers and posts accruals to finance.
Can SAP TM support a third-party logistics (3PL) provider?
Yes, SAP Transportation Management (TM) supports logistics providers with forwarding orders, customer charge calculation and subcontracting to carriers. In one UAE 3PL case, SYBNOC designed and implemented embedded SAP EWM and TM within a wider S/4HANA programme.
When is SAP Logistics Management a better fit than SAP TM?
SAP Logistics Management usually fits better than SAP Transportation Management (TM) when transport is simple, with few carriers and stable routes. SAP TM remains the choice for complex charge structures, optimiser-based planning and full freight settlement.
Shipper or logistics provider: what changes in SAP TM
The planning and execution engine is the same. What changes is where demand comes from and which side of the freight bill the business is on.
| Consideration | Shipper | Logistics service provider (LSP) |
|---|---|---|
| Starting point | Sales orders, purchase orders or deliveries from the ERP. | Forwarding orders received from customers. |
| Commercial focus | Buying transport at the right cost and service level. | Selling transport services and buying carrier capacity. |
| Charges | Carrier costs settled and distributed to cost centres, orders or products. | Customer charges calculated and invoiced, and carrier costs settled. |
| Typical users | Manufacturers, retailers and distributors. | 3PLs, freight forwarders and transport operators. |
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