Introducing the ABC Shipping Company Example

Objectives

After completing this lesson, you will be able to:

  • Describe Transportation Management roles and responsibilities

ABC Shipping Company Introduction

The ABC Shipping Company

In unit 1 you learned about the product. In the following example you will take a look at a sample company and the roles within that company and how each person will utilize the product in their respective roles.

ABC Shipping Company is a global manufacturing company that operates in multiple countries. As part of its operations, the company relies heavily on transportation to move raw materials from suppliers to manufacturing plants, and finished goods from plants to distribution centers and customers.

To streamline and optimize its transportation processes, the ABC Company has implemented SAP S/4HANA Supply Chain for transportation management. The system is now live and ready to be used to manage all transportation-related activities. The following scenario illustrates how the company uses the system to improve its transportation operations:

A customer places an order for a specific product. The sales team creates a sales order in SAP S/4HANA, specifying the requested delivery date and location. The system automatically creates freight units. Transportation relevant status can be viewed on the sales order.

Planning is conducted within the transportation cockpit user interface (UI). The transportation cockpit has the capability to tailor its interface to suit the specific planning scenario being undertaken. The transportation demands (freight units) are planned in the transportation cockpit using Gantt chart and map planning to create freight orders. These features come with advanced transportation management functionality.

The freight order contains all the relevant details, such as pickup and delivery locations, shipment dates, and product information. The system also generates the necessary shipping documents, including bills of lading.

Carrier selection is carried out on the freight order. A ranking list is generated, and carriers are assigned based on the business shares. The carrier receives the freight order and executes the transportation. Freight order is updated with the actual date and time. The system provides real-time visibility into the transportation process, allowing the ABC Company to track the shipment's progress.

Charges for transporting the cargo are calculated based on rates maintained in the freight agreement. Basic freight charge, fuel surcharge is automatically calculated, and handling charges can be recorded. The cost distribution shows that the total freight costs in the freight order are broken down. The aggregated freight costs are shared to the delivery item level based on its gross weight. Freight settlement documents are created and posted.

After the shipment is delivered, the carrier submits the freight invoice to ABC Company. The system verifies the invoice against the agreed-upon rates and services. Any discrepancies are flagged for review.

Let’s understand the key employees of the ABC Shipping company and their role at the company.

In the above video you met the employees of the ABC Shipping Company.

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