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Transportation Management with SAP TM

by: Rüdiger Fritz and Till Dengel

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On-line Price: $69.95 (includes GST)

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Retail Price: $79.95

Publisher: SAP Press,01.01.09

Category: Level:

ISBN: 1592292372
ISBN13: 9781592292370

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This book teaches you what SAP Transportation Management (TM) is, what it can do, and how to implement and configure it into your systems. You'll learn how to use SAP TM to design well-organized and energy-efficient transport logistics processes and link them to your business processes. Throughout the book, you'll find practical information on all business processes from requests, orders, and dispatching, to billing and settlement of transportation services.

Using implementation and business process case studies, you'll learn about the functionality and configuration processes for SAP TM. You'll explore important topics such as integration with SAP Event Management, and the integration of SOA between industries and logistics service providers. You'll also find details on the Post Processing Framework and the Shipment Order, Freight Order, and Tour Builder (SFTB), as well as basic customizing settings. With this practical, complete guide, you'll understand how to implement and use SAP TM in your daily business processes.

The book is based on SAP TM 6.0 but also discusses the new developments for order management in Release 7.0.
Highlights


  Overview of SAP TM 6.0


  Organizational Structure and General Master Data


  Logistical Master Data


  Order Management


  Planning and Optimizing


  Subcontracting


  Calculating and Settling the Transportation Charges


  Analytics


  SAP Event Management


  Process Handling

About the Author(s)

Bernd Lauterbach, Rüdiger Fritz, Jens Gottlieb, Bernd Mosbrucker, and Till Dengel work at SAP and assume different roles within the development process of SAP TM. In this book, their experience and knowledge as software architects, developers, and product managers is combined in one definitive resource.
Table of Contents


  1 ... Introduction to Transportation Logistics ... 17


  1.1 ... Logistics Service Providers ... 19


  1.1.1 ... Third Party Logistics (3PL) ... 19


  1.1.2 ... Carriers ... 22


  1.2 ... Transportation Logistics in the Shipper and Manufacturing Industries ... 24


  1.2.1 ... Changing Roles in Logistics ... 25


  1.2.2 ... Factors Influencing Processes in the Consignment Industry ... 31


  1.2.3 ... Degree of Standardization for Each Mode of Transport ... 34


  1.3 ... Typical Transportation Processes ... 39


  1.3.1 ... Process ... 39


  1.3.2 ... Modes of Transport ... 44


  1.3.3 ... Freight Volume ... 48


  1.4 ... Legal Requirements and Documents in Transportation ... 49


  1.4.1 ... Regulations Governing Drivers ... 49


  1.4.2 ... The Operational Contract between the Ordering Party and the Contractor ... 55


  2 ... Overview of SAP TM 6.0 ... 65


  2.1 ... History of Transportation Management Software at SAP ... 65


  2.1.1 ... Transportation Planning with the Transportation Planning and Vehicle Scheduling (TP/VS) Component ... 68


  2.1.2 ... Additional Components ... 68


  2.2 ... Initiative for the Development of the New SAP Transportation Management Solution ... 70


  2.3 ... Components of the New SAP Transportation Solution ... 72


  2.3.1 ... Master Data ... 72


  2.3.2 ... Order Management ... 72


  2.3.3 ... Planning and Optimization ... 73


  2.3.4 ... Subcontracting ... 74


  2.3.5 ... Transportation Charge ... 74


  2.3.6 ... Transportation Charge Settlement ... 75


  2.3.7 ... Analytics ... 75


  2.3.8 ... Supply Chain Event Management (SCEM ... 76


  2.4 ... Interaction of Components ... 77


  2.4.1 ... Integration of the SAP TM Lifecycle into Logistics and Supply Chain Management ... 77


  2.4.2 ... Business-Process-Oriented Core Elements of the Solution ... 80


  2.4.3 ... Integration into Existing Scenarios with the SAP Business Suite ... 82


  2.4.4 ... Transportation Scenarios à la carte - SAP ERP and SAP TM ... 83


  2.5 ... New User Interface ... 88


  2.5.1 ... SAP NetWeaver Business Client (NWBC ... 89


  2.5.2 ... Screen Areas of the NetWeaver Business Client ... 91


  2.6 ... Possible System Landscapes with SAP TM ... 94


  3 ... Organizational Structures and General Master Data ... 99


  3.1 ... Basic Settings ... 99


  3.2 ... Organizational Units of a Transportation Service Provider ... 99


  3.3 ... Product Master Data ... 104


  3.3.1 ... Precisely Defined Products in Third-Party Logistics ... 105


  3.3.2 ... Standardized Freight Codes and Material Groups ... 106


  3.3.3 ... Roughly Defined Product Categories ... 107


  3.3.4 ... Categories of Transport Equipment ... 108


  3.3.5 ... Service Products ... 108


  3.4 ... Business Partners ... 109


  3.5 ... Internal Business Partners in a Distributed Logistics Organization ... 112


  3.6 ... Transfer of Master Data between SAP ERP and SAP TM (Core Interface, CIF) ... 113


  3.6.1 ... Technical Preparation in SAP ERP ... 114


  3.6.2 ... Technical Preparation in SAP TM ... 115


  3.6.3 ... Application-Specific Preparation ... 116


  3.6.4 ... Integration Model and Selection Model ... 116


  4 ... Logistical Master Data ... 119


  4.1 ... Transportation Network ... 119


  4.1.1 ... Locations ... 120


  4.1.2 ... Transportation Zones and Transportation Zone Hierarchy ... 124


  4.1.3 ... Transportation Lanes ... 127


  4.1.4 ... Transshipment Locations ... 134


  4.1.5 ... Schedules ... 137


  4.2 ... Resources ... 142


  4.2.1 ... Means of Transport and Vehicle Resources ... 143


  4.2.2 ... Transportation Unit Resources ... 145


  4.2.3 ... Drivers ... 145


  4.2.4 ... Calendar Resources and Handling Resources ... 146


  4.2.5 ... Maintaining Resources and Means of Transport ... 146


  5 ... General Tools ... 157


  5.1 ... Conditions ... 158


  5.2 ... Post Processing Framework (PPF) ... 161


  5.3 ... Incompatibilities ... 170


  6 ... Order Management ... 173


  6.1 ... Order Objects and the Order Receipt Process in SAP TM ... 173


  6.1.1 ... Order Receipt ... 176


  6.1.2 ... Data Areas in the Business Object "Shipment Request ... 178


  6.2 ... Personal Object Work List in Order Management ... 180


  6.2.1 ... Personalization of the Personal Object Work List ... 182


  6.2.2 ... Defining Queries ... 184


  6.3 ... Business Object Structures in the Shipment and Freight Request ... 185


  6.3.1 ... Business Object Nodes of the Shipment Request ... 186


  6.3.2 ... Business Object Structure of the Freight Request ... 189


  6.3.3 ... Use of Role Codes and Type Codes ... 190


  6.4 ... Shipment Request Views ... 191


  6.4.1 ... Detail View of the Shipment Request ... 192


  6.4.2 ... Basic View of the Shipment Request ... 194


  6.4.3 ... Document Status ... 195


  6.4.4 ... Overview ... 197


  6.4.5 ... Detail Data for Overview ... 198


  6.4.6 ... Item Data ... 204


  6.4.7 ... Business Partners ... 211


  6.4.8 ... Packaging ... 212


  6.4.9 ... Resources (Transportation Units and Vehicles ... 213


  6.4.10 ... Shipment Stages ... 214


  6.4.11 ... Notes and Dossier ... 216


  6.4.12 ... Charges and methods of payment ... 218


  6.4.13 ... Governmental Procedures ... 220


  6.5 ... Associated Document Information ... 220


  6.5.1 ... Freight Units ... 220


  6.5.2 ... Execution Information ... 220


  6.5.3 ... Transportation Activities ... 220


  6.5.4 ... Customer Freight Invoice ... 221


  6.5.5 ... Tracking and Tracing ... 221


  6.6 ... Checking and Activating the Shipment Request ... 222


  6.7 ... Freight Units and Their Creation ... 223


  6.8 ... Transportation Proposal ... 228


  6.9 ... Transportation Revenue Determination ... 231


  6.10 ... Confirmation ... 233


  6.11 ... Printing Documents ... 234


  6.12 ... Communication (Email, Fax, Messages ... 235


  6.13 ... Customer Freight Invoice ... 236


  6.14 ... Freight Request ... 237


  6.15 ... Quotation ... 240


  6.16 ... Shipment Template ... 240


  6.17 ... Shipment ... 242


  6.18 ... Number Ranges and Tracking Numbers ... 245


  6.19 ... Customizing ... 246


  6.19.1 ... Role and Type Codes ... 246


  6.19.2 ... Shipment Request Type ... 246


  6.19.3 ... Print Documents Post Processing Framework ... 248


  6.19.4 ... Incoterms ... 249


  6.19.5 ... Text Types and Text Determination Procedures ... 249


  6.20 ... Further Functions in SAP TM 7.0 ... 250


  6.20.1 ... New Shipment Request User Interfaces ... 250


  6.20.2 ... Customer Fact Sheet ... 251


  6.20.3 ... Additional Functions in Order Management Area ... 251


  7 ... Planning and Optimization ... 253


  7.1 ... Transportation Activities ... 254


  7.2 ... Planning Strategies ... 258


  7.3 ... Selection Settings ... 260


  7.3.1 ... Requirements Profile ... 262


  7.3.2 ... Time-Related Selection Attributes ... 262


  7.3.3 ... Geographical Selection Attributes ... 264


  7.3.4 ... Additional Selection Attributes ... 265


  7.4 ... Planning Settings ... 267


  7.4.1 ... Planning Profile ... 268


  7.4.2 ... Capacity Selection ... 269


  7.4.3 ... Pick-Up/Delivery Windows ... 271


  7.4.4 ... Planning Costs ... 273


  7.4.5 ... Optimizer Settings ... 277


  7.4.6 ... Settings for TSP Selection ... 279


  7.4.7 ... Time Constraints ... 283


  7.4.8 ... Settings for SFT Builder ... 284


  7.5 ... Planning ... 289


  7.5.1 ... Configuring the Planning Interface ... 291


  7.5.2 ... Planning Interface ... 295


  7.5.3 ... Manual Planning ... 298


  7.5.4 ... Load Planning ... 303


  7.5.5 ... Optimizer Planning ... 304


  7.5.6 ... Transportation Proposals ... 306


  7.6 ... Optimization Algorithm ... 309


  8 ... Subcontracting ... 315


  8.1 ... Booking Order ... 317


  8.2 ... Shipment Order and Freight Order ... 321


  8.3 ... Transportation Allocations ... 331


  8.4 ... Transportation Service Provider Selection ... 338


  8.4.1 ... Manual and Automatic Transportation Service Provider Selection ... 338


  8.4.2 ... Incompatibilities and Continuous Moves ... 343


  8.4.3 ... Optimizer for Transportation Service Provider Selection ... 345


  8.5 ... Tendering ... 348


  9 ... Calculating Transportation Charges ... 357


  9.1 ... Calculating Transportation Charges within Subprocesses ... 358


  9.1.1 ... Order Receipt ... 359


  9.1.2 ... Subcontracting and Calculating Transportation Charges ... 401


  9.1.3 ... Transportation Charge Calculation for Planning and Automated Transportation Service Provider Selection ... 409


  9.2 ... All Master Data for the Calculation of Transportation Charges ... 411


  9.2.1 ... Overview and Interaction of Objects ... 411


  9.2.2 ... Freight Agreement ... 415


  9.2.3 ... Tariff ... 418


  9.2.4 ... Rule Maintenance ... 422


  9.2.5 ... Determination Logic for Freight Agreements and Tariffs ... 432


  9.2.6 ... Transportation Charge Calculation Sheet ... 437


  9.2.7 ... Transportation Charge Rate Tables and Scales ... 455


  10 ... Invoicing Transportation Charges ... 467


  10.1 ... Creating and Processing Invoice Requests ... 468


  10.1.1 ... Transferring the Customer Freight Invoice Request ... 475


  10.1.2 ... Transferring the Supplier Freight Invoice Request ... 478


  10.1.3 ... Identifying the Recipient System ... 482


  10.2 ... SAP ERP Configuration ... 484


  10.2.1 ... Billing Documents ... 485


  10.2.2 ... Invoice Verification ... 488


  10.2.3 ... Customizing for SAP TM Assignment Tables ... 490


  11 ... Analytics ... 495


  11.1 ... Reports and Dashboards ... 495


  11.2 ... Data Extraction from SAP TM ... 499


  11.2.1 ... Post Processing Framework (PPF) Settings ... 500


  11.2.2 ... SAP NetWeaver BW Structures ... 502


  11.2.3 ... Queries ... 502


  12 ... SAP Event Management ... 505


  12.1 ... Overview and Functions ... 505


  12.1.1 ... Business Process Types ... 510


  12.1.2 ... Application Objects ... 511


  12.1.3 ... Event Types ... 514


  12.1.4 ... Application Log ... 515


  12.2 ... Event Handlers and Event Messages ... 516


  12.3 ... Event Handler Settings ... 520


  12.3.1 ... Basic Event Handler Settings ... 520


  12.3.2 ... Profiles for Expected Events ... 523


  12.3.3 ... Status Profiles ... 524


  12.3.4 ... Additional Event Handler Data ... 525


  12.4 ... Event Processing ... 525


  12.4.1 ... Technical Functions for Receiving Event Messages ... 526


  12.4.2 ... Establishing Rule Sets ... 527


  12.5 ... Information Output and Input Using SAP Event Management ... 530


  12.5.1 ... Event Handler List ... 530


  12.5.2 ... Data Input for Event Messages ... 533


  12.5.3 ... Event Confirmation ... 534


  12.5.4 ... Expected Events Overdue List ... 534


  12.5.5 ... Web Interface ... 535


  13 ... Event Management Processes ... 539


  13.1 ... Order Status Tracking ... 540


  13.2 ... Shipment Tracking ... 542


  13.3 ... Vehicle and Transport Equipment Tracking ... 544


  13.4 ... Tour Status Tracking ... 546


  13.5 ... Tendering Tracking ... 547


  13.6 ... Enhancement of Tracking Processes ... 551


  13.6.1 ... Enhanced Business Process Types ... 552


  13.6.2 ... Additional Application Object Types ... 552


  13.6.3 ... Additional Extractors and Relevance Conditions ... 553


  13.6.4 ... Additional Event Handler Types ... 553


  13.6.5 ... Expansion of the Rules ... 554


  13.6.6 ... Enhancement of SAP Event Management-Triggered Control Functions in SAP TM ... 554


  14 ... Transportation Processes ... 555


  14.1 ... Handling of a Full Container in Sea Freight (FCL ... 556


  14.1.1 ... FCL Transportation Order ... 556


  14.1.2 ... Organizational Structure ... 557


  14.1.3 ... FCL Transportation Process ... 559


  14.1.4 ... Defining the Transportation Network ... 562


  14.1.5 ... Entering a Booking Order for Freight Space by the Sea Freight Dispatcher ... 566


  14.1.6 ... Receiving the Shipment Request by the Transportation Booking Agent ... 568


  14.1.7 ... Further Processing of the Shipment Request by the Transportation Booking Agent ... 572


  14.1.8 ... Planning the Sea Freight Stage ... 576


  14.1.9 ... Subcontracting of the Sea Freight Stage ... 577


  14.1.10 ... Generating the House Sea B/L (Shipment ... 578


  14.1.11 ... Planning, Tendering, and Subcontracting of the Pre-Carriage (Truck ... 580


  14.1.12 ... Planning and Subcontracting the On-Carriage (Truck ... 585


  14.1.13 ... Invoice Processing for the Service Provider Invoicing ... 585


  14.1.14 ... Profitability Calculation and Order Completion ... 586


  14.2 ... General Cargo Transportation (LTL) via Distribution Centers ... 587


  14.2.1 ... LTL Transportation Order ... 588


  14.2.2 ... Defining the Transportation Network ... 589


  14.2.3 ... Receiving the LTL Shipment Request by the Transportation Booking Agent ... 594


  14.2.4 ... Preplanning the LTL Shipment Request ... 596


  14.2.5 ... LTL Costing with Split Charges ... 598


  14.2.6 ... Shipment Tracking ... 601


  14.3 ... Template Booking for Sea Freight ... 601


  14.3.1 ... Product Data ... 602


  14.3.2 ... Personal Object Work List for Shipment Templates ... 603


  14.3.3 ... Creating a New Shipment Request ... 603


  14.3.4 ... Routing and Transportation Charge Determination ... 606


  14.4 ... Multimodal Routing of a Shipment ... 607


  14.5 ... Demurrage and Detention ... 610


  15 ... Technological Foundations ... 613


  15.1 ... Business Object Modeling ... 613


  15.2 ... Enterprise Services in SAP TM ... 620


  15.2.1 ... Benefits of SOA ... 621


  15.2.2 ... Enterprise Services in SAP TM ... 625


  15.2.3 ... Information on Enterprise Services in the SAP Developer Network ... 632


  15.3 ... BAdIs in SAP TM ... 635


  16 ... Conclusion ... 637


  A ... Bibliography ... 639


  B ... The Authors ... 641