Mainly, it reduces the complexity of several interfaces and data duplication.
The main advantages can be summarized as follows:
- Smaller database and hardware footprint
- Reduction in Total Cost of Ownership due to smaller replication and monitoring effort
- Enhanced user experience leveraging S/4HANA and Fiori UI
- Remove the need to duplicate ERP customer, vendor and material master data into business partners and products in TM, thereby removing the need for the Core Interface (CIF). ERP and TM share a single set of harmonized master data objects.
- Real-time embedded analytics
- Integration with new S/4HANA Enterprise Management for managing transportation-related equipment
- Remove the need to duplicate ERP orders and deliveries into Transportation Requirements which are order-based and delivery-based documents in TM. These transportation requirements are no longer necessary.
- Orders and deliveries are able to convert directly into Freight Units, Freight Orders, etc.
What SAP licensing is required for embedded SAP TM functionality in SAP S4/HANA?
S/4HANA divides TM functionality into 2 main buckets – Basic Shipping and Supply Chain for Transportation Management (SC for TM). As the name implies, Basic Shipping includes basic transportation functionality, whereas SC for TM includes advanced TM functionality. Basic Shipping functionality is included in the “Digital Core” licensing of S/4HANA which basically means that no additional licensing is required. However, SC for TM is a separately licensed SAP product that does require additional licensing to be purchased.
What is included in Basic Shipping in S/4HANA?
Technically, Basic Shipping was introduced in S/4HANA with release 1511. However, back then Basic Shipping was based purely on the old ECC Logistics Execution – Transportation (LE-TRA) functionality, utilizing ECC shipments and shipment documents. Implementing such functionality is strongly discouraged, as it is based on highly outdated code base and already subject to end of life of the Compatibility Scope, which is currently set to 2025.
S/4HANA 1709 brought the possibility of implementing Basic Shipping functionality using the modern SAP TM code base. The following basic functions are included:
- Main transportation network master data (zones, lanes, etc.)
- Manual carrier selection and tendering
- Freight agreements
- Delivery based planning
- Dangerous goods management (with some limitations)
- Output management
- Transportation execution (without Event Management)
- Basic charge calculation and freight settlement
- Analytics in BW
As a general guideline, SAP customers are able to perform the same functions that they could using the old LE-TRA shipment/shipment cost document functionality, but utilizing the new SAP TM objects, transactions, and code base. However, if the functionality was not included in the scope of the old LE-TRA solution it is likely not covered by Basic Shipping in S/4HANA either.
What advanced functionality is covered by S/4HANA Supply Chain for Transportation Management (SC for TM)?
SC for TM adds a wide range of functionality on top of Basic Shipping that some SAP customers have already experienced in side-car SAP Transportation Management offering:
- Order and delivery-based planning
- Transportation Cockpit UI
- Optimizer-based planning
- Automatic carrier selection and tendering
- Advanced charge calculation (consolidated, event-based, air/rail/ocean functionality)
- Analytics and reporting via CDS
- Load planning and optimization (TLB)
- Integration with:
- Event Management
- Global Track & Trace (EM future replacement)
- Logistics Business Network
- Enterprise Warehouse Management (EWM)
- Descartes GLN
- Enterprise Asset Management
- Geographical Information Systems (PC*Miler, HERE, etc.)
- Global Trade Service (GTS)
- S/4HANA Credit Management
What key SAP TM functionality is not yet available in the embedded TM option in S/4HANA?
- Carrier Collaboration Portal
- SAP has developed a replacement portal solution with a product called Logistics Business Network (LBN). Keep in mind that LBN requires separate licensing from SAP.
- It is now technically possible to use the SAP TM Collaboration Portal with S/4HANA. However, it requires Business Suite TM licensing (which will rarely be the case for an S4/HANA TM customer) and the Collaboration Portal has to be deployed on a separate instance/server. Refer to SAP note 2858217 for more information.
- The usage of Package Building functions for Freight Order and Transportation Unit is not released for S/4HANA TM 1809 until further notice
- The following functions are discontinued for the purposes of “Simplification” and are not available in S/4HANA TM 1909
- Integration with SAP CRM
- Integration of TM Resources to Enterprise Asset Management Objects
- Prepayment of Forwarding Orders
- Selected Planning Functionality
- Condition-Based loading and unloading duration determination
- Fixed Loading and unloading duration determination per requirement document
- Condition-Based filtering for Transportation Cockpit (via Profile)
- Take away Load Cost Function from UI (Usage is possible via BAdI)
- Option for Time-Related Selection of Documents based on All Stop Times
- Transportation Proposal for multiple Freight Units at once
- Integration from S/4HANA TM Freight Order to LE-TRA Shipment and vice versa is not supported (embedded in S/4HANA and side-by-side with ERP and S/4HANA)
Compared to SAP TM 9.6, the following functions are not yet released in S/4HANA TM 1909:
- Internal Settlement for Resources (other Internal Settlement Management scenarios are released)
- Group Logistics is only supported for side-by-side scenarios, but not yet for system internal processing
- Creation of Freight Units out of Scheduling Agreements (inbound and outbound) is only supported for side-by-side scenarios, but not yet for system internal processing
- Sales Order Scheduling
- Business Partner hierarchy