In today’s fast-paced world of e-commerce and global supply chains, efficient parcel shipping has become more critical than ever. SAP Transportation Management (SAP TM) is a powerful solution that helps businesses streamline their transportation operations, including parcel shipments. In this blog post, we will explore how SAP TM can be used to optimize parcel shipping, enhance visibility, and drive cost savings.
What is the direct shipment option?
The direct shipment option is a feature in SAP Transportation Management (SAP TM) that allows you to commission a carrier to transport parcels from one shipping point to several consignees. Based on deliveries from an ERP system, SAP TM allows you to create parcel shipments. A direct shipment option involves selecting a carrier that provides the necessary transportation services.
Key Benefits of Direct Shipment Option
1. Cost Reduction
2. Faster Deliveries
3. No use of transportation cockpit for planning.
4. Less complexity
5. Automatic process
Prerequisites
1 In the freight unit type, maintain the direct shipment-related settings such as the direct shipment strategy and carrier selection settings.
Direct shipment strategy: there are two types of default strategies:
a. DSO_RESULT: The system determines the direct shipment option and assigns freight units directly to a freight order
b. DSO_DEF: the system determines the direct shipment option but no further processing takes place. A freight unit is assigned to a freight order using the report /SCMTMS/DIRECT_SHIPMENT_BATCH
1. Maintain “Sequence type of stages” in the freight order type as “Star-Shaped Based on FU Stages.”
3 Create transportation lanes master data to
define the routes and available carriers for direct shipments.
How does
the direct shipment work in SAP TM?
The process of direct shipment in SAP TM involves the
following steps:
1.
1 Creation of an Order/Delivery-Based Freight Unit: Using order/deliveries from an ERP system, SAP TM enables the
creation of freight units specifically for direct shipments.
2 Determination of Direct Shipment Option: SAP TM determines the availability of the direct
shipment option based on various factors such as the shipping point,
consignees, and carrier capabilities.
1. 3. Selection of the Option and Assignment to a Parcel Freight Order: Once the direct shipment option is determined, businesses can select the option and assign the parcels to a parcel freight order for further processing and execution.
1. 3. Selection of the Option and Assignment to a Parcel Freight Order: Once the direct shipment option is determined, businesses can select the option and assign the parcels to a parcel freight order for further processing and execution.
Conclusion
Implementing the direct shipment option in SAP TM can significantly improve the efficiency of parcel shipping operations. By leveraging this feature, businesses can reduce costs, expedite deliveries, and enhance overall customer satisfaction. With the ability to plan and execute direct shipments without using the transportation cockpit, SAP TM provides a flexible and efficient solution for optimizing parcel transportation in modern supply chains.