In the dynamic world of logistics, rapid change is the norm, and SAP is here to help you innovate with the new Transportation Management module. Say goodbye to the old Logistics Execution– Transporation submodule (LE-TRA) module as SAP introduces a new era with the TMS module.
In 2030, SAP will no longer support LE-TRA, resulting in the removal of associated objects from the compatibility scope. LE-TRA, a sub-module of Sales and Distribution (SD) in SAP, enables the definition of transport modes for incoming and outgoing goods movement based on routes.
Stay ahead of the curve and explore the possibilities of SAP’s Transport Management solutions in this blog post.
The Next-Generation Transport Management System
Let us start by exploring the Transport Management System (TMS) in details. It is a software tool that companies use to manage all the movements of physical goods from one place to another, whether by road, air, sea, or a combination.
What is great about TMS is that it makes sure everything runs smoothly, from loading goods efficiently to delivering them on time. By tracking freight across local and global routes. It is all about making sure everything runs smoothly and cost-effectively!
But how does it work? The TMS system manages detailed carrier information to optimize delivery routes and minimize costs by selecting the most suitable transport mode for each shipment. Integration with carriers using TMS enables real-time shipment updates, allowing businesses to monitor transport modes, routes, and delivery progress with ease.
The TMS can seamlessly integrate with other software components like the Supply Chain Management (SCM) system and Warehouse Management System (WMS). This integration allows for the customization of end-to-end processes and enables businesses to collaborate efficiently in SAP.
Comparing LE-TRA and TMS: Understanding the Differences
The introduction of the new Transport Management System (TMS) module in SAP marks a significant change from the traditional Logistics Execution – Transportation submodule (LE-TRA). Unlike LE-TRA, managed through transaction codes in the SAP GUI, the new TMS module operates within Fiori. As a result, the process flow and user experience will undergo notable changes compared to the familiar LE-TRA system.
FIORI TMS overview page:
How do the new TMS functions work?
The process begins with the creation of a sales order and outbound delivery, followed by SAP automatically generating a freight unit. This freight unit represents a collection of goods destined for a specific customer.
During the planning phase, the freight units are assigned to modes of transport to create a freight order. SAP TMS offers various planning options, including manual, optimization-driven, and semi-automated procedures. These procedures involve generating transportation proposals, creating unified packaging hierarchies, and optimizing loads using a three-dimensional framework to maximize container utilization. The TMS module uses various attributes such as capacities and transport networks to optimize the cost and efficiency of timely goods delivery
A transportation cockpit can be used for planning, providing a comprehensive tool for managing every aspect of the goods movement:
Once optimal routes are determined in the freight order, carriers or subcontractors can be selected based on service level agreements, pricing, and performance. Communication with carriers is facilitated through the TMS module, allowing users to request quotations, negotiate rates, and book transport services directly within the system. Carrier assignment can be automated to ensure shipments are allocated to the most suitable carriers based on predefined rules and preferences.
When goods are loaded and carriers require transport documentation, TMS automatically generates the necessary documentation, including electronic documents, to streamline the process and reduce paperwork and administrative overhead.
During shipment dispatch, TMS provides real-time visibility into the transportation process, allowing users to monitor statuses and track shipments using a GPS tracking system. This system enables users to update statuses directly and track any delays that may occur.
After the transport is completed, TMS handles freight costing and settlements to ensure accurate customer invoicing and proper payment to carriers. Additionally, TMS offers analytics and collaboration tools, allowing users to create customized reports and dashboard monitors. These tools provide insights to optimize transportation operations, track transport performance, monitor key performance indicators (KPIs), and analyse cost metrics effectively.
Functionalities of the TMS module
The Transportation Management System (TMS) module in SAP offers an extensive range of functionalities to streamline logistics and transportation operations. It includes tools for procurement, freight shipment, route planning, load optimization, and real-time tracking. With automated features and data-driven insights, businesses can forecast demand, analyse profitability, and make informed decisions efficiently.
Pro and cons of the new TMS and the old LE-TRA
There are various pros and cons associated with both the new Transport Management System (TMS) and the old Logistics Execution Transportation (LE-TRA) module in SAP. Each module operates differently, leading to distinct advantages and disadvantages. Below are the pros and cons for each module:
TMS Integration in S/4HANA: Insights on Licensing Options
When implementing the new TMS module, it is essential to carefully consider licensing options and determine the optimal environment for its implementation within SAP. The new TMS, available from release 1709 on S4HANA, offers basic functionality without the need for an additional license fee. On the other hand is TMS not available on ECC.
However, for organisations seeking advanced Transport management features, a specific license is required. This license enables access to enhanced capabilities tailored to meet more complex logistics requirements.
To obtain detailed information about the license fee, it is advisable to contact your local SAP representative. They can provide insights into licensing structures and help you assess the suitability of the advanced TMS for your organization’s needs.
A structured list of capabilities outlining the functionalities provided by both Basic and Advanced Transport Management (TM) modules is as follows:
Differentiating between TMS and Advanced TMS
The differentiation between the standard Transport Management System (TMS) and the advanced TMS in SAP primarily hinges on the breadth of functionalities and capabilities, as outlined below:
In summary, while the standard TMS provides basic transportation management functionalities, the advanced TMS offers a broader range of features, customization options, and integration capabilities to meet the needs of more complex transportation operations.
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