Fast implementation and scaling, easily calculable operating costs and a system that is always up to date: SAP S/4 HANA Public Cloud offers these and other advantages – also for the area of Transportation Management (TM). But what can TM do in the public cloud, what are the differences to traditional on-premise systems and what factors should potential customers take into account?
To answer these questions, we will first look at the TM functionalities that are already available and evaluate future enhancements in an outlook. Finally, indicators for cloud usage will be explained.
This article deals with the public cloud, not the private cloud! In terms of functions, advantages and disadvantages, the private cloud can be equated with an on-premise system, with a few exceptions. The public cloud is hosted and maintained centrally by SAP SE.
Functionalities of SAP TM in S/4HANA Public Cloud
The listed scope items already cover a broad horizon of business processes, whereby not every scope item needs to be activated, used and implemented. Thanks to the public cloud, it is possible to implement your requirements in the system in stages. This can minimize the complexity of an implementation phase, thereby increasing the potential success of the project and preventing an overload situation within your company.
The expansion option can also be used when a new process is introduced into the business operations. For example, if your logistics process is expanded to include your own distribution centers, you can subsequently implement the scope item (5FV). This allows the business processes and the cloud landscape to grow together, with the costs only relating to those services that are actually used.
The most relevant scope items along the traditional SAP TM document flow
But first, let’s get an overview of the most relevant scope items along the traditional SAP TM document flow:
Once the freight order has been successfully executed, freight settlement can take place. If we look at the transportation costs incurred, these can be transferred to FI/CO and distributed to individual cost objects using scope item 6W4. The transportation process is completed by posting the incoming invoice from the freight forwarder.
As in a traditional on-premise system, analyses and monitoring options can have a positive influence on future operational and strategic decisions.
In conjunction with the Business Technology Platform (BTP), the use of web services, the integration of IoT devices and the automation of processes with the support of artificial intelligence are all made possible.
Transportation Management functionalities S/4HANA Public Cloud vs. On-Premise
Another advantage is the BTP, which, as already mentioned, enables the cloud to be connected to other systems. In addition, the analysis and monitoring options can be used in real time and provide a basis for operational and strategic decision-makers.
Which Companies should think about S/4HANA Cloud?
- Companies whose processes are close to SAP standard
- New companies or newly established departments without existing processes that need a scalable system
- Companies in a hybrid scenario, e.g. with highly complex processes in production affiliates and rather simple processes in sales affiliates
- Companies with a “cloud first” strategy or other cloud systems already implemented (e.g. Success Factors)
- Companies that always want to stay up to date
In addition to the functionalities, there are a number of other indicators that influence the choice between on-premise and SAP S/4HANA public cloud:
Outlook on the SAP S/4 HANA Public Cloud roadmap
SAP SE provides semi-annual updates for the public cloud. Previous and future enhancements are listed on the SAP roadmap:
As the numerous upcoming enhancements exceed the scope of this article, we will refer to the most relevant developments: In the near future, the focus will be on expanding the process chain, which is why the connection to the Business Network for Logistics (BN4L) is being implemented. Existing processes are also constantly being developed further: For example, enabling freight cost calculation based on material freight groups or transportation groups.
Summary
The cloud has many aspects that can have a positive impact on business activities. These advantages must always be weighed up against the disadvantages, and customer-specific analyses should be carried out.
For example, it is important to check whether the TM functionalities meet your requirements and whether the processes of the public cloud are applicable to your business operations. It is also important to utilize the new added value of the public cloud in order to drive a successful, long-term and cross-company cloud strategy.
Let’s discover together which solution is the best choice for you. Feel free to contact us. Together with our parent company cbs, as well as with Trebing & Himstedt and p78, we are broadly positioned to take your next step towards digitization.
We are here for You!
Have we sparked your interest in the public cloud? Please feel free to contact us at blog@leogistics.com.
Jonte Matthießen
Associate Consultant
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