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How to Implement a Transportation Management System SAP

Michael Wilson | Sep 11, 2019

An advanced enterprise software solution, SAP can help optimize and improve upon the performance of a transportation management company. A transportation management system SAP is ...

An advanced enterprise software solution, SAP can help optimize and improve upon the performance of a transportation management company. A transportation management system SAP is a valuable tool for consolidating logistics, shipping, and inventory information. It can be tailored for use in the transportation management industry. Here's what you need to know about transportation management SAP.

Choosing an SAP

SAP stands for systems, applications, and products. Core products include SAP Customer Relationship Management, SAP Enterprise Resource Planning, SAP Product Lifecycle Management, SAP Supply Chain Management, and SAP Supplier Relationship Management. But that's not all—SAP also creates more detailed systems, such as SAP Extended Warehouse Management, SAP for Retail, and SAP Shipping Services Network.

A transportation management company will need to look at the SAP options available to determine which fits best into its business processes. Most businesses will begin with SAP ERP, as it provides broad enterprise resource functionality. 

Training

Implementing transportation management SAP begins with training employees on its use. SAP is an assortment of intuitive, easy-to-use solutions, but they are robust enough that training is necessary to unlock core features. The intricacies of training will depend on the SAP solution that has been chosen, but the core of SAP is always going to be entering accurate data. The more accurate the data is, the better overall analysis and predictions will be. 

Industry-Specific Needs

SAP's transportation management modules can help a transportation and logistics company in a few specific ways:

  • Shipping data can be crunched for superior carrier selection, identifying the carriers that are most likely to be both affordable and on-time.
  • Shipments and orders can be compiled in a single, consolidated system, to be easily referenced, tracked, and reviewed.
  • Logistics and predictive features can be used to increase the number of deliveries that reach customers on time. 

These are only a few of the industry-specific advantages to an SAP platform.

Implementation

Implementing an SAP system can be complex, but help can usually be acquired through SAP or through an SAP-knowledgeable partner. Often, a stack is made out of multiple SAP technologies, which are integrated together, such as SAP ERP alongside SAP CRM. Training should occur before implementation, so all employees are familiar with the new solution.

There are a few ways that a company can handle a migration. A company can roll over its old data into the SAP ERP, either through manual entries or imports. A company can also "cut off" its data from its old system after a certain point, and start entering new data into the new solution, running both solutions simultaneously. Companies that have no data available can start fresh with SAP ERP.

Business processes need to be designed around SAP to ensure that employees are following the correct best practices and entering data regularly.

Automation

A major advantage of using a solution such as a transportation management system SAP is the ability to automate certain tasks, such as managing large volumes of shipment and logistics information. SAP will be able to compile and analyze large volumes of data to automatically advise on the best shipping and logistics processes. This ultimately leads to faster and more consistent planning.

Transportation companies can greatly improve upon their operations through the use of a transportation management system SAP. For more information about supply chain management and transportation and logistics, consult the experts at AFFLINK.

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