Definition

The ordering of transportation services from carriers.

Technical Data

Business Context and Use

The Transportation Order Processing  process component provides shippers, logistics service providers, and carriers with various functions for processing transportation orders. It enables them to exchange transportation-relevant data and execute the functions that are required to create, change, or cancel freight orders, freight requests for quotation, or freight bookings. In addition, it allows them to assign transportation demands to transportation capacities, and it allows shippers to create delivery proposals for further processing in the corresponding logistics execution system.

The functions provided by the Transportation Order Processing  process component can be used in different scenarios. For example, they enable a shipper to send a transportation order to a carrier who can then subcontract the order to other carriers. During transportation planning, the shipper decides which freight units are to be transported by the shipper’s own vehicle resources and which are to be subcontracted to carriers. When the shipper sends a transportation order to a carrier, the carrier receives the order in the form of a transportation request. The carrier is then expected to send a confirmation to the shipper.

Following on from this scenario, the carrier can perform refined planning based on the transportation request, and decide if the requested transportation service is to be executed by the carrier’s own resources or by one or more subcontractors. If the carrier subcontracts the execution of the transportation service, the carrier sends a transportation order to the relevant subcontractors, who can also reply to the carrier by sending confirmations. Note that these activities are performed in the carrier's business system.

From a shipper’s perspective, a carrier may also be a logistics service provider (LSP). The business of an LSP typically consists of consolidating transportation demands from multiple shippers into containers or full truck loads.

Notes on SAP Implementation

More Information

SAP Transportation Management (SAP TM)