Defining Transportation Relevance

Creating a transportation requirement is the essential event that initiates a transportation management process. This requirement serves as the starting point and is triggered by transportation-relevant items in an initiating document, such as a sales order or a delivery. Creating a transportation requirement in SAP Transportation Management (SAP TM) varies based on the deployment option. Below are the primary starting points for transportation requirements depending on the selected deployment model:

The following documents can trigger the creation of a transportation requirement in SAP TM, either through internal integration with the SAP TM component or via external SAP TM system integration:

• Sales orders
• Customer returns
• Purchase orders
• Stock transport orders
• Return stock transport orders
• Sales scheduling agreements
• Materials management scheduling agreements
• Outbound deliveries
• Inbound deliveries

1. Logistics Service Providers (LSPs or 3PLs): Transportation requirements can be received in various ways by logistics service providers or third-party logistics providers (3PLs). Forwarding orders are typically manually created using the SAP TM User Interface (UI) or Electronic Data Interchange (EDI) with an external system. The forwarding orders and forwarding quotations are considered transportation requirements within an LSP process.
2. Side-by-Side Deployment / External TM System Integration: SAP TM is installed as a separate system in side-by-side deployment scenarios. The original document driving the transportation demand does not reside in SAP TM itself, necessitating the replication of this information. This replication process can create either order-based or delivery-based transportation requirements. Order-based requirements may originate from documents such as sales orders, purchase orders, stock transport orders (STOs), or scheduling agreements. On the other hand, delivery-based requirements stem from outbound or inbound deliveries. Integration between SAP TM and the source system, whether SAP ERP or SAP S/4HANA, is facilitated using XML messages via SAP Process Integration or point-to-point communication.
3. Embedded Deployment / Internal TM Component Integration: In an embedded deployment scenario, the need for a separate document to represent a transportation requirement is eliminated, as the original object causing the transportation demand already exists in the SAP S/4HANA system. These original objects may include sales orders, purchase orders, stock transport orders, scheduling agreements, or delivery documents such as inbound and outbound deliveries. Here, the freight unit acts as the initial object for SAP TM, created directly from the original object instigating the transportation demand. This embedded scenario is the primary focus of this overview training.

This structured approach to understanding transportation requirements in SAP TM ensures clarity in transportation management's deployment and operational facets, facilitating efficient logistics and supply chain execution.

The documents that are created in sales and distribution (SD), materials management (MM) and logistics execution (LE) can be integrated into TM. The following settings have to be configured to integrate sales orders, scheduling agreements and deliveries.

• Activate Integration of Documents via Control Key
• Create Logistics Integration Profile
• Assign Logistics Integration Profile to Document Type

Definition: Incoterms, short for international commercial terms, are standardized international rules that define the commonly used terms in international trade. They outline the terms of sale and the transfer of risks associated with importing and exporting merchandise. The International Chamber of Commerce (ICC) publishes incoterms and periodically releases new versions.

Incoterms are intended to communicate the tasks, costs, and risks associated with transporting and delivering goods. They define a contractual agreement between the shipper and consignee to determine who is responsible for which stage of the transport and where and when the responsibilities of each partner start and end.

Some of these incoterms require a location where tasks, costs, and risks are transferred from the shipper to the consignee. The incoterm location is where the goods are physically handed over and where the responsibilities for the goods change. The incoterm location is a master data location in SAP TM and can be used for routing purposes.

Regarding delivery integration with SAP TM, the Incoterms (Part 2) field can be used to define the incoterm location. You can map incoterms (Part 2) to an SAP TM master data location with the app Assign Location to Incoterm Location. You can use this information for stage building.

In SAP TM, you can build stages based on the incoterm location. The Incoterm Location Stage Building field in the logistics integration profile customizing defines how stages are built based on source, incoterm, and destination locations. The system uses the incoterm location for stage building if the incoterm has set the Incoterm Location flag (a flag that indicates that you must enter a location with this incoterm). If no incoterm is specified, the system does not use the incoterm location for stage building, and the system creates only one stage from the source to the destination location. If an incoterm is specified but this incoterm has not set the Incoterm Location flag, the system does not use the incoterm location for stage building. Instead, the system creates only one stage from the source to the destination location. The following stage-building rules are possible:

1. Initial Value – Two Active Stages: This setting is default. Two planning-relevant stages are created.
2. 01 Source Location to Incoterm Location – Type 1: One stage from the source to the incoterm location is created.
3. 02 Source Location to Incoterm Location – Type 2: Two stages are created. An active stage from the source location to the incoterm location. An additional stage from the incoterm location to the destination location which is not relevant for planning
4. 03 Incoterm Location to Destination – Type 1: One stage from the incoterm location to the destination. This is relevant, for example, for the consignee who plans only the route from the incoterm location to the goods receipt location.
5. 04 Incoterm Location to Destination – Type 2: Two stages are created—an active stage from the incoterm location to the destination location and an additional stage that is not relevant for planning from the source location to the incoterm location.
6. 05 Two Active Stages: Two planning-relevant stages are created.

Watch the simulation Create Purchase Order and Review the Freight Unit to start an inbound process.