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Applies to:
Industries implementing “SAP Transportation Management 6.0”.
Summary
This article explains the process of Transportation Planning with VSR Optimizer in SAP TM6.0
Author Bio
Hemantha Kumar Malladhi is working as a Sr.Consultant with Intelligroup and has been part of SCM
competency since March 2006.
Table of Contents
Introduction .........................................................................................................................................................3
Objective .........................................................................................................................................................3
Business Requirement .................................................................................................................................................3
Business scenario Example data .......................................................................................................................3
Transportation Planning Process .......................................................................................................................4
Create Shipment Request...............................................................................................................................4
Transportation Planning ..................................................................................................................................5
Optimizer Planning..........................................................................................................................................7
Tendering Process ........................................................................................................................................10
Disclaimer and Liability Notice..........................................................................................................................21
Introduction
SAP TM 6.0 is a new Transportation Management solution designed specifically for logistics service
providers and large shipping companies. SAP Transportation Management 6.0 (SAP TM 6.0) combines
order quotation, receipt, and confirmation, transportation planning/dispatching, transportation execution,
tracking, and freight charge management in one system. SAP TM supports all modes and means of transport
(Sea, air, land and train).
SAP TM serves shippers as well as 3PL or Freight Forwarding industries. The new solution is designed in a
way that both sides of a transportation process are covered. Shipper companies often want to minimize
transportation costs or improve customer service. From the Shipper’s perspective, you can combine inbound
and Outbound Transportation logistically and financially. Third Party Logistics Providers (3PL) or companies
involved in freight forwarding on the other side need to look at improving revenue and maximizing their
bottom-line. From Logistics Service Provider’s perspective, SAP TM offers higher Transparency on
Profitability on both buying and selling side. It supports different types of tendering such as peer to peer,
broadcast and open tendering.
SAP TM has capability to adapt plan after execution of Transportation activities started. It has ability to do
Delta planning, i.e ability to plan new Transportation demands into existing shipments without re-planning
everything.
Objective
The objective of this article is to explain how the Shipment request to move goods from one Location to
another is Planned and tendering process will be carried out for this Shipment Request.
Business Requirement
The business requires that a customer has ordered to move Goods from one Location to another location.
This Shipment request will be entered into the TM manually by TM User. Transportation Planning is carried
out by TM Planner by Utilizing Vehicle Resources Optimally under the given constraints and Tendering
process will be carried out for this Shipment. Finally Shipment order will be released to the Transportation
service Provider to complete the Shipment.
Transportation Planning
Go to Dispatching node in SAP-Easy access and Click on Transportation Planning Transaction.
You will get Transportation Planning screen: Enter Planning Profile and Requirements Profile
Click on Apply profiles Tab. You will get Transportation planning screen with list of Freight units to be
planned. Note that we have a freight unit
Optimizer Planning
Click on the Optimizer Planning Tab: you will get VSR Optimization Screen
Click on Accept planning Tab to accept the Planning Result: You will get following result:
Tendering Process
To access Shipment order, go to Subcontracting and Tendering Transaction in subcontracting node in SAP
Easy Access: You will reach to the following screen:
Click on Shipment orders (All): you will get all the shipment orders in the same screen:
Click on release tab on the Shipment Order. This step is required to initiate Tendering Process:
Click on tendering tab on the same shipment order screen: Click on initiate tendering option:
Click on Configure Manually tab: you will get following screen with message Tendering is initiated:
Click on Tendering configuration tab: You will get maintain Process screen:
Enter Template Value in the field and Click on Load Template tab in the Tendering Process configuration
Template:
You will get following Tendering type in the Tendering Overview with list of Transportation service providers:
TM system automatically creates Request for Supplier Shipment quote: To verify the Request for Supplier
shipment quote, go to Subcontracting and tendering transaction in subcontracting node:
Click on requests for Supplier Shipment quote (All): All the Requests for Supplier Shipment quotes are
displayed.
This will be transmitted to supplier. Based on his response, this Request for Supplier Shipment quote may be
accepted or rejected. If the supplier accepts this request, we need to manually accept this RSSQ by clicking
on Accept without changes tab. Assuming that supplier has accepted this quote. Click on accept without
changes tab.
Supplier shipment quote is automatically created by the system after accepting Request for Supplier
Shipment quote.
To verify Supplier Shipment Quote, Go to Subcontracting and tendering screen and Click on Supplier
shipment quotes (all).
To send the Shipment order to Transportation service providers, Go to Subcontracting and tendering screen
and Click on Shipment orders (all)
Click on Send Order tab to transmit Shipment order to Transportation service providers. You will get
following messages:
Related Content
Transportation Management
SAP-Help on TM 6.0
For more information, visit the Operations homepage.
For more information, visit the Supply Chain Management homepage.