Plan via Hubs

In the pooled distribution process, the SAP TM system determines whether it is more cost-effective to deliver freight directly to the customer via truckload or using a pool location to consolidate freight.

In the pool distribution process, a shipper wants to send goods from a shipping point to customers using pool or hub locations for consolidation.

The following figure lists master data objects that are required. All the master data concepts are covered in Unit 2. We revise transshipment locations here as they are important for this concept.

Definition of a Transshipment Location: A transshipment location is defined by assigning a location to either another location or to a transportation zone. When you assign a transshipment location to a transportation zone, it can be used as a transshipment location by all locations that are part of that transportation zone.

A transshipment location is used for unloading goods from one vehicle resource and loading it onto another vehicle resource during the transportation process. Transshipment locations are used when different means of transport or different carriers have to be used in the transportation process. You can also use transshipment locations when consolidating or deconsolidating goods to be transported.

If you define a transshipment location and want to use it in your transportation processes, you must define transportation lanes that take the transshipment location into consideration.

A transportation proposal defines how a freight unit can be transported through a transportation network (which is defined by locations, transshipment locations, transportation zones, transportation lanes, vehicle resources, schedules, and bookings). For a given transportation demand (freight unit), the system determines a set of alternative transportation proposals. The transportation proposal functionality serves the following purposes:

• To help the user identify the different transportation options for a freight unit. In a complex network, in which end-to-end transportation requires several stages, transportation proposals are an easy way to make the different options transparent. Transportation proposals can differ in relation to routing, means of transport, and time required. Each of these variables can increase or reduce costs, and the proposals thus provide the planner responsible with the necessary information to make an appropriate choice.

• To create the stages upfront, for example, to choose the option of ocean transport, because the customer has placed their order well in advance and this is the cheapest choice. In this use case, no freight orders are created based on the proposal result, but only the stage information is stored. This allows the task of planning the different stages to be assigned to different planners and to be completed at different times.

The entry points for transportation proposal determination are as follows:

• Forwarding Order→Stages→Actual Route→Define Route

• Transportation Cockpit→Select Freight Unit(s)→Transportation Proposal