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What Is Transportation Management?
Transportation Management involves managing the transport operations from freight carrier selection to route mapping to fuel costing and track and trace of goods as they are transported throughout the supply chain. It also involves the regular maintenance of vehicles. Companies also rely on transportation management systems (TMS) that exchange data with warehouses and distribution centers for order coordination.
What is the benefit of implementing transportation management solutions? In today’s fast-paced business landscape, companies want to streamline their operations and automate mundane tasks that can consume time and resources doing them manually. These systems are also critical for data visibility into shipping processes and customer engagement.
What Is Transportation Management?
Transportation Management involves managing the transport operations from freight carrier selection to route mapping to fuel costing and track and trace of goods as they are transported throughout the supply chain. It also involves the regular maintenance of vehicles. Companies also rely on transportation management systems (TMS) that exchange data with warehouses and distribution centers for order coordination.
What is the benefit of implementing transportation management solutions? In today’s fast-paced business landscape, companies want to streamline their operations and automate mundane tasks that can consume time and resources doing them manually. These systems are also critical for data visibility into shipping processes and customer engagement.
SAP Transportation Management Solution
SAP offers its own transportation management solution. Capabilities of SAP TM include:
- Rate automation to effectively choose your logistics provider
- Synchronization of sales and order scheduling for on-time customer delivery
- Pallet building with rules-based optimization
- Visualization tool for planning loads.
Is SAP TM a good choice for your freight operation? Yanpeng Tan, Senior SAP Transportation Management Consultant, Novigo, shared several steps with SAPinsider about evaluating the solution.
- Identify the pain points and bottlenecks with your current solution.
- Outline wish-to-improve points and turn them into a requirement list.
- Understand what functionalities SAP TM can provide and how the functional requirements can be satisfied.
- Conduct an SAP TM workshop and we strongly recommend a proof-of-concept approach to view how SAP TM works and get an idea of how the implementation will be executed.
- Draw a high-level solution by incorporating inputs from different stakeholders.
Key Considerations for SAPinsiders
- Optimizing Supply Chain Visibility with SAP Transportation Management. In this Q&A featuring Yanpeng Tan, Senior SAP Transportation Management Consultant, Novigo, learn how to gain greater efficiencies in both carrier management and tendering processes with SAP Transportation Management. According to Tan, “SAP TM provides sophisticated functionality to manage contract information for each individual carrier in the SAP TM space, and it will be used to calculate cost for each freight shipment. SAP TM supports interactive tendering for daily operation via a collaboration portal.”
- A Look at Some Enhancements Under the SAP Transportation Management Hood. Rajesh Ray, who leads the SAP SCM product area at IBM Global Business Services, and Sanket Kulkarni, Solution Architect at Accenture Services Private Limited, examine the functionalities of SAP TM, including truck load management, strategic freight procurement, and collaboration portal. Read this article to learn about industry-specific functionalities of rail car, ocean carrier, and parcel, as well as integration functionalities with other SAP modules.
Other vendors in the transportation management space include: GoSCM, SaM Solutions, and Odyssey Logistics & Technology.
31 results
How to Integrate Warehouse Processes with SAP TM for a Shipper ScenarioJan 27, 2016 — Learn how to set up the integration between SAP Transportation Management (SAP TM), SAP ERP Central Component (ECC), and SAP Extended Warehouse Management (EWM). When a customer places an order to transport a product with pickup from a warehouse, end-to-end process integration between warehouse operations and execution, transportation planning, and the freight settlement (based on […]
36 minute read
Supply Chain Resiliency with Dan CicerchiJan 24, 2022 — There has undoubtedly been a cry to transform the way we run and plan our supply chains to avoid running into such massive and consecutive supply chain disruptions in the future. This is where the focus on supply chain resiliency stems. While many different strategies are being planned by organizations across the globe, there is no doubt that technology will play its usual role of an enabler to help manage these disruptions better in the future. In this video, SAPinsider and expert from Descrates discuss how technology can help build supply chain resiliency.
1 minute read
Logistics and SCM: Case study: How United Sugars mastered rail functionality with SAP TM 9.3 and automated 90% of its end-to-end transportation processesMar 5, 2019 — Discover how United Sugars (USC) was able to effectively leverage SAP Transportation Management (SAP TM) to plan and manage transportation requirements for its distribution channels. SCM2017_Perala_Casestudyhowunitedsugarsmastered Roger Perala If you have comments about this article or publication, or would like to submit an article idea, please contact the editor.
1 minute read
SAP LE-TRA Sunset: Your Strategic Roadmap to SAP Transportation Management (TM)Dec 2, 2025 — SAP-centric organizations are urgently transitioning to SAP S/4HANA from legacy systems due to impending end-of-life deadlines, particularly focusing on the shift from the LE-TRA module to SAP Transportation Management (TM), with options between Basic and Advanced licensing that cater to varying complexities and automation needs, alongside the introduction of SAP Logistics Management (LGM) for smaller enterprises.
3 minute read
What Licensing Do You Need for SAP Transportation Management (TM)?Sep 11, 2025 — Navigating the SAP Transportation Management licensing landscape is crucial for wholesale distributors planning their transformation journey, as it requires careful consideration of existing SAP systems, user roles, and deployment models to optimize costs and functionality.
3 minute read
American Snack Company Saves Millions by Improving SAP TM User ExperienceFeb 25, 2020 — Approximately 23% of SAP customers currently use SAP Transportation Management (SAP TM) according to SAPinsider's "Transforming the Intelligent Supply Chain" research. This makes it the second most popular SAP supply chain product after SAP Advanced Planning and Optimization (SAP APO). SAP customers that use SAP TM are 83% more likely to focus on digital transformation of the supply chain than those who do not use SAP TM. Some businesses, however, do not at first see the results they expect when using tools like SAP TM — for instance, one American multi-national snack company used SAP TM as part of a digital transformation, but did not realize the expected business value. Why is this? To answer this question, and address the root cause, the company turned to Knoa Software.
4 minute read
Agriculture Commodity SchedulingMar 10, 2020 — Agriculture commodities follow a complex supply chain and are influenced by global demand and inventory levels along with local weather, harvest conditions, and freight availability. The commodities are traded, hedged, stored, and speculated in most of the world. The commodity therefore transacts through multiple entities before it is ultimately consumed by processing units for end-customer use. Learn how to integrate SAP Trader's and Scheduler's Workbench and SAP Transportation Management to provide much-needed agility to deal with market dynamics and changing contractual positions.
9 minute read
