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Road Outbound Scenario with SAP S/4HANA Public Cloud

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Leonie Ahrens

  • 24. September 2024
  • 8 min reading time
When it comes to the implementation and maintenance of enterprise software, the requirements are often similar: a fast implementation with low costs, standardized processes, and a system that is always up to date. The solution to these demands is the SAP Public Cloud. While SAP Transportation Management (SAP TM) as an on-premises version offers a transportation management system (TMS) with many customization options, the SAP TM Public Cloud solution provides a variety of predefined processes. One of these predefined processes deals with the outbound process, which we present here in the truck scenario, from planning to billing.

1.

Scope Items and Process Overview

In the SAP Public Cloud, predefined processes are divided into so-called scope items. A small selection of these scope items (e.g., 6W2) can be found in Figure 1, which simultaneously represents the outbound scenario as an end-to-end process. If you want to learn more about scope items and the S/4HANA Public Cloud, feel free to check out the blog post.
outbound_DE_EN
Figure 1: Process diagram SAP TM in the Public Cloud, including scope item designations
Note: For readability, we refrain from using scope item abbreviations like "6W2" in this post.

2.

Transport Planning in the Public Cloud

The scope item for transport planning supports the modes of transport (road, rail, sea, and air). In SAP TM, planning or scheduling is based on so-called transport demands. These transport demands, in addition to the classic customer order, also cover orders, stock transfers, returns, or delivery schedules. Different transport demands automatically generate freight units. A freight unit is defined as the smallest plannable and transportable object in the transportation management process and represents a grouping of goods that are transported together throughout the entire transportation chain.
For planning freight units, the transportation cockpit is the central planning tool. Here, the freight units to be planned and the already planned freight orders are displayed. Truck resources are also shown, allowing manual planning. During manual transport planning in the transport cockpit, one or more freight units and a truck resource are marked and directly assigned to a freight order.
Transport cockpit in the Public Cloud with partial views of freight units (Freight Unit Stages), freight orders (Road Freight Orders), and resources (Trucks).

In addition to manual planning, SAP TM offers options for group-based planning. In group-based planning, several freight units can be automatically assigned to freight orders based on defined criteria. In group-based planning, both the planning profile and the demand grouping profiles play a central role.

Requirements grouping profile with grouping rules for start location, loading date and unloading date
Based on predefined grouping rules, customer-specific planning profiles can be created and applied in the transport cockpit. Grouping rules are combinable. Here are two examples: Suppose there are three freight units with a common shipping location, and the unloading date for one of the three freight units differs. The result of group-based planning is that two freight orders are planned. In another example, all three freight units have different shipping locations or unloading dates. The result of group-based planning is that three freight orders are created. The advantages of using demand grouping profiles are time savings and the ability for planners to manually intervene in the transport planning process at any time.

Group-based planning can also be seen as the “little brother” of the powerful VSR Optimizer, which is not available in the Public Cloud. Those who want to experience VSR-Optimizer-supported planning need the SAP Private Cloud or an on-premises version of SAP TM.

Once the manual or group-based planning is completed, the freight order is linked to a freight forwarder (master data) who will execute the transport. Once this is done, a cost calculation for the transport can be initiated.
Freight order cost calculation
If freight orders are to be tendered to freight forwarders, relevant data (see freight order) can be transmitted to an external system. This means information can be sent directly to a forwarder, who checks it and sends it back to the source system. Usually, this data exchange is done via an interface, and the status of the freight order is automatically updated in the SAP TM system.

Once the transport planning and, if necessary, the assignment of a transport to a freight forwarder is completed, SAP TM triggers deliveries (for customer orders) in the already created freight orders. Deliveries can be created, for example, via the app “Manage Freight Orders” or directly in the respective freight order.

Creation of deliveries in the app "Manage Freight Orders"

3.

Transport Execution in the Public Cloud

After successful transport planning, various statuses can be set in SAP TM. We refer to this as transport execution. Before the truck drives to the plant to pick up the goods, the execution status of the freight order is set to “Ready for Transport Execution”.
Change execution status to "Ready for Transport Execution".

The truck is on its way to the plant to pick up the goods and transport them to the customer. Once the truck reaches the plant, the responsible person sets the execution status (source) to “Arrived”, and once the truck successfully checks in, the status changes to “Checked In”.

Execution status upon arrival

The truck is now at the plant and is being loaded. The loading is systemically booked in SAP EWM. When leaving the plant, the truck’s execution status (source) in SAP TM is set to “Checked Out” and then to “Departed”.

Execution status upon departure

Subsequently, the goods issue is systemically booked. Physically, the truck with the goods is on its way to the customer. Once the truck arrives at the customer, the execution status (destination) is set to “Arrived” to complete the transport execution.

Execution status upon arrival at the destination

4.

Freight Cost Calculation in the Public Cloud

With SAP TM, freight costs can be calculated to create a cost forecast. This cost forecast serves as an indicator of the actual costs of a freight order. As a prerequisite for the freight cost calculation, a purchasing organization and a freight forwarder must be assigned to a freight order. With these input parameters, SAP TM can determine a predefined freight agreement. Freight agreements correspond to contracts between the transport parties and contain, in addition to cost types, other contractually relevant data.

5.

Freight Settlement in the Public Cloud

In SAP TM, freight accrual postings are processed via the app “Monitor Accrual Postings”. This app provides an overview of all booked objects.

Overview of accrual postings

Accruals can be booked manually or automatically.

Overview of accruals
Once the freight forwarder’s invoice has arrived, it is checked and approved in an app, which is not described in detail here. In addition to this invoice verification option, it is also possible to handle the billing process using SOAP messages (electronic invoice, e.g. via XML file) or credit note procedures (“self billing”).
Finally, a few words about leogistics GmbH:. As a service provider in the field of SCM, we have been working with SAP Transportation Management (TM) for over a decade. If you need support with your logistics projects, please do not hesitate to contact us.

We are here for You!

Have we sparked your interest in the public cloud? Please feel free to contact us at blog@leogistics.com.


Leonie Ahrens
Associate Consultant


Jean Maurice Ernst Reichel
Consultant SAP Logistics

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