SAP S/4 HANA Transportation Management end to end Process flow with EWM steps using Advance shipping and Receiving (ASR)

The process flow for SAP S/4HANA Embedded Transportation Management (TM) Outbound Delivery Shipper Process integrated with Extended Warehouse Management (EWM) for ASR (Advanced Shipping and Receiving) in 2023 generally

follows these steps:

  1. Creation Of sales order – Creation of sales orders in SAP S/4HANA. These orders serve as the demand source for transportation planning.
  2. Creation of Outbound Delivery – the OBD will be generated w.r.t to Sales order.
  3. . Transportation Planning
    • Integration with Transportation Management (TM) – OBD is transferred to TM as a Freight Unit (FU), the determination factor for creation of FU is Shipping condition, Delivery type and Shipping point.
    • Breakdown of orders into manageable transportation units (freight units) based on weight, volume, or other criteria.
    • Routing: Determine the most efficient routes considering cost, time, and service levels.
    • Carrier Selection: Evaluate and select carriers based on predefined criteria such as contracts, rates, and capacity.
  4. Freight Order Management – TM generates a Freight Order (FO) or Freight Booking depending upon the Road for FO and Air and Sea for FB
    • Assign carriers using the Carrier Selection functionality.
    • Tendering: Send requests for transportation to select carriers using automated or manual tendering processes.
    • Schedule pickup and delivery times.
    • Generate and send transportation instructions to carriers.
  5. Execution in Extended Warehouse Management (EWM)
    • Once the Outbound delivery gets generated and if its relevant for ASR and Storage location is EWM management then the delivery will be distributed to EWM.
    • The Warehouse execution status should be set as 3 for ASR relevant.
  6. Pick, Pack, Stage process in EWM
    • Picking Process: picking process performed in EWM. Once Picking in EWM is done, the EWM will send the signal to TM for picking completed.
    • Packing: Items are packed into Handling Units (HUs) in EWM and Information send to both S/4 and TM
    • Staging: Goods are moved to the staging area for loading.
  7. Loading and Goods Issue
    • Loading Process: HUs are scanned and loaded onto the vehicle using Loading Unload FO App
    • Goods Issue Posting: Once the vehicle is loaded, the system posts Goods Issue in both EWM and S/4HANA from TM.
  8. Execution and Monitoring
    • Goods Issue: Post goods issue for the delivery document in the warehouse.
    • Track and Trace: Monitor shipment status in real-time using Event Management (EM) or integration with carrier systems.
    • Proof of Delivery (POD): Capture delivery confirmation upon goods receipt.
  9. Freight Settlement
    • Define Freight Agreements
    • Charge Calculation -calculate transportation charges using agreed freight rates

Conclusion :

The embedded TM system bridges the gap between logistics operations and transportation, providing a unified platform for managing end-to-end shipping requirements with efficiency and precision. This ensures competitive advantages in the dynamic logistics landscape.

Refer the blog for SAP S/4 HANA EWM and Transportation Management Integration with TU : The Power of SAP EWM and TM integration | SCM-Cloudbook

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