The licensing model for SAP Logistics Management should fit the target market and target implementation size, hence the license model and license pricing should:
- Make it easy for customers to calculate volumes in connection to business value and entice adoption with low entry price with the ability to scale-up easily
- Make it easy-to-consume: Network centric solution where pricing includes a carrier network for visibility and process execution
The license package therefore bundles SAP Logistics Management and SAP Business Network, freight collaboration into a single solution as a modern fulfillment suite needs direct access to a carrier network.
Comparable to the SAP EWM license model, the model is based on a pay-per-use principle, with the following characteristics:
- pricing metric is documents (annual): Document represents the number of outbound deliveries, managed by SAP Logistics Management
- Minimum blocks = 2; no maximum number of blocks
- For each block of SAP Logistics Management customer receives 1 block of SAP Business Network - Freight Collaboration
- Block size is 10000 Documents per Year
For partners, TDD licenses can be ordered, which is beneficial to implement a proof of concept (non-productive use only).
Summary
SAP Logistics Management is the "Next big thing in logistics" as being a cloud native, joule enabled, new offering, targeting a market with huge market potential: the low and medium complex warehouse operations that do not have a business case for a complex EWM and / or TM implementation.
The unique aspect of the SAP Logistics Management offering, next to being a cloud native solution consisting of a set of micro services on the SAP BTP, is that the product comes with SAP Business Network integration and licenses, making it a true end-to-end logistics platform.