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 SAP ERP-SAPTM Integration for Group Logistics Process

 

You can use a group logistics process to consolidate all the transportation requirements from all the companies in your enterprise into one central logistics company.

Your core business activity can be something other than providing transportation services. For example, your core business activity can be manufacturing. However, you need to transport the goods you manufacture to your customers. To enable this, you can have a company in your group of companies that provides transportation services to all the other companies.

You can use the internal settlement process to settle the freight costs between the group logistics company and the other companies in your group of companies.

Technical Details

Technical Name of Product Feature

TM930_EMBEDDED_LSP

Product Feature Is

New

Country Dependency

No

Software Component Version

SAP_APPL 617 SP08

Application Component

TM-FWS-INT

Available as of

SAP enhancement package 7 for SAP ERP 6.0 support Package 8

Required Business Functions

LOG_TM_INV_INT_II
Additional Details

This feature enables you to consolidate the transportation activities in your company so that you get the following business benefits:

  • Better transportation rates from your logistics service providers (LSPs) or shippers

  • Centralized transportation operation that gives you full visibility to your transportation demand

  • Standardized tracking of your shipments across all the companies in your enterprise

  • Focus of a single company in your enterprise on transportation activities

You can perform the following transportation activities:

  • Settle freight costs between individual companies in your enterprise (perform intercompany settlement for the freight cost)

  • Post freight costs to the financial accounting system in SAP ERP for both the company that requests the transportation service and the company that provides the transportation service

  • Post the breakdown of freight costs to the level of transportation demand items in the financial system of the company that requests the transportation service

The group logistics features in the SAP Transportation Management (SAP TM) 9.3 SP00 release supports the following business models:

  • Dedicated internal provider of transportation services

    The only function of the group logistics company is to provide transportation services to all other companies in the group of companies.

  • Consolidator of internal transportation requirements

    The group logistics company consolidates internal transportation requirements and pays the external carrier for providing transportation services. The core business activity of the group logistics company is not in providing internal transportation services, but in providing another business activity, for example, manufacturing.

Effects on Existing Data

You must upgrade to SAP TM 9.3 SP00 and SAP ERP EHP7 SP08. Only new order-based transportation requirements (OTRs) and delivery-based transportation requirements (DTRs) in the upgraded versions of the software can participate in the group logistics process.

We have added a Calculate Internal Charges button to the OTR and DTR screens. This enables you to calculate charges in the OTR and DTR.

More Information

For more information, see SAP Library for SAP TM on SAP Help Portal at http://help.sap.com/tmInformation published on SAP site. In SAP Library, choose Start of the navigation path SAP Transportation Management (SAP TM) Next navigation step Settlement Next navigation step Group Logistics Scenario End of the navigation path.