In this article, we’ll dive deep into SAP Transportation Management (SAP TM) and SAP Extended Warehouse Management (SAP EWM) to define how they add value to the Supply Chain and how they differ.

SAP Transportation Management

SAP TM is a part of SAP’s Supply Chain Execution platform. This solution supports multiple types of transportation (sea, road, rail, air) and helps enhance material and goods flows and reduce transportation costs. Moreover, it allows manual and automated delivery planning, monitoring for execution, and freight cost billing.

SAP TM helps build end-to-end collaboration between carriers/subcontractors, logistics service providers, shippers, and customers and includes the following scenarios:

• Direct truck shipment
• Truck networks
• Multi-modal domestic shipment
• Airfreight D2D
• Airfreight shipment P2P
• Ocean LCL shipment D2D
• Ocean FCL shipment D2D

SAP TM features

• Customizable detailed templates for calculation sheets, rate tables, and scales
• Dynamically generated, optimized routing proposals based on business rules
• Determining the distance and duration of the actual route
• Cost reduction by increasing the visibility of transportation resources and improving their utilization
• Automated planning process
• Resource-related KPIs control

SAP TM helps businesses focus on transportation planning and optimization, freight tendering, and change management to reduce freight costs

SAP Extended Warehouse Management

SAP EWM is also a part of SAP Supply Chain Management. It empowers companies with efficient tools for managing high-volume warehouse operations.

SAP EWM features

• Warehouse activity control
• Storage optimization with slotting for products and automated arrangement of goods
• Storage and handling hazardous substances and their transportation per regulations from SAP Environmental Health & Safety EHS.
• Reporting about inbound/outbound deliveries and stock location and movements
• Integration with multiple ERP systems with no capacity loss

SAP EWM assists with warehouse efficiency improvement by providing innovative features like picking, shipment, radio frequency mobile data entry (RF framework), warehouse structure, etc.

Let’s Summarize

SAP TM and SAP EWM are cutting-edge SAP software that can help companies benefit in two lines of business — transportation and warehousing. These systems can be implemented as separate solutions, but since these business areas are part of supply chain management, modern enterprises are increasingly integrating SAP TM with SAP EWM.

SAP TM and SAP EWM features combined help businesses run better by converging processes with a dynamic platform strategy to integrate products and technologies.

This integration is a significant step toward successful digital transformation that provides companies with the power of intelligent technologies, including the IoT, machine learning, and blockchain. Together, they help you orchestrate warehousing and logistics with greater efficiency and fast, error-free data communication.

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