A large
group of companies whose main business is the manufacturing of goods, might
depend on some other LSPs or may have their own separate company that is solely
looking for all of these transportation activities from all other companies by
assigning transportation service providers to the orders.
SAP
Transportation Management supports this Group Logistics scenario & eases
the criticality of the process for timely delivery of material to the
customers. Also, each order is settled internally first with the company which
provided transportation service internally & later with the carrier by that
company.
Advantages
of Group Logistics,
· As a shipper, you can club all the
transportation demands of the company in one organization.
· More buying power to negotiate
freight rates.
· As an organization is only focused on
transportation, Visibility & Process standardization improved.
It is
demonstrated below:
Company A
& Company B are manufacturing products.
Case 1:
Logistics Company within a group of companies looks after all the
Transportation services as per the demands generated by other lines of
companies.
Case 2:
Apart from Company A & B, the third company manufactures products as well
as performs transportation activities for its own and Company A & B.
The key difference in a group logistics scenario is that the BU manages the transports
consolidates orders from multiple other lines of business of the group.
These transportation services are paid by the logistics company. Other companies might require these transportation charges to be displayed/used for sending it back to the ERP system for Finance/COPA related activities. To distribute charges Internal settlement is used in SAP TM.
As trusted SAP partners, we have successfully implemented SAP TM end-to-end for many customers, and we can help establish this for you as well in SAP TM.
