Mainly, it reduces the complexity of several interfaces and data duplication.
The main advantages can be summarized as follows:

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  Implementing such functionality is strongly discouraged, as it is based on highly outdated code base and already subject to end of life of the Compatibility Scope, which is currently set to 2025.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:

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:

What key SAP TM functionality is not yet available in the embedded TM option in S/4HANA?

Compared to SAP TM 9.6, the following functions are not yet released in S/4HANA TM 1909:

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