1. Case Study Title and Focus
Optimizing High-Volume Retail Logistics with SAP S/4HANA Transportation Management (TM)
A successful SAP TM implementation centered on retail logistics optimization in a rapidly expanding European retail supply chain setting is highlighted in this case study.
2. Customer Overview
Company: Discount Retailer from NL
Industry: Discount Retail
Geography: Europe (large and fast-growing store network)
Go-live Year (TM Implementation): 2025
Operating Model: High-volume DC-to-Store Replenishment using a dedicated trailer fleet.
To support its growing European retail supply chain and facilitate continuous logistics digital transformation, the company needed a scalable solution.
3. Technology Landscape
Core Platforms
- SAP S/4HANA (Private Cloud Edition)
- SAP S/4HANA Transportation Management (Embedded TM)
- SAP Business Network for Logistics – Global Track & Trace (BN4L-GTT)
- SAP BTP (custom logistics apps)
- TComm/telematics devices installed on retailer-owned trailers
- PC*Miler for routing & ETA calculations
The solution enabled Telematics Integration in SAP TM, supporting real-time tracking and predictive ETAs.
4. Business Context & Operating Environment
The retailer’s rapid European expansion created a need for:
- High-frequency DC-to-Store Replenishment
- Tight delivery windows
- Real-Time Shipment Visibility
- Rapid onboarding of new logistics operations as store count scales
Automated Transportation Planning’s capabilities were restricted by reliance on manual processes, which also slowed the company’s overall Logistics Digital Transformation process.
5. Key Challenges & Pain Points
- Limited visibility of shipments in transit
- Manual, time-consuming transportation planning
- Lack of real-time exception notifications
- Difficulty coordinating across multiple countries, DCs, and stores
- No unified system connecting telematics, routing, and SAP TM events
These challenges impacted overall Retail Logistics Optimization and service reliability.
6. Need for Change / Strategic Drivers
- Enable proactive logistics management with Real-Time Shipment Visibility
- Improve on-time store deliveries
- Reduce planner workload through Automated Transportation Planning
- Create a scalable logistics backbone for rapid expansion
- Build an Event-Driven Transportation Management process leveraging telematics and predictive ETAs
7. Solution Overview – SAP S/4HANA Transportation Management
By setting up a modern transportation system using SAP S/4HANA Transportation Management, the NL Discount Retailer established a foundation for better Retail Logistics Optimization and Event-Driven Transportation Management.
Key components included:
- Embedded SAP TM for planning, execution, and charge management
- SAP BN4L-GTT for milestone visibility and exception alerts
- SAP BTP Apps for planner and dispatcher workflow support
- Telematics Integration in SAP TM with the retailer’s trailer fleet (TComm)
- Automated ETA Calculation using PC*Miler
This implementation enabled a fully digitalized transportation ecosystem delivering Real-Time Shipment Visibility across the entire European Retail Supply Chain.
8. Solution Architecture & Integrations
Key Integration Flows
- SAP TM ↔ BN4L-GTT for transportation events
- Telematics (TComm) ↔ SAP BTP ↔ SAP TM/GTT
- SAP BTP ↔ PC*Miler for ETA recalculation
- SAP TM triggers updates back to planning teams and store operations
Logical Architecture Layers
- Data Capture Layer: Telematics events every ~10 minutes
- Integration Layer: SAP BTP services for normalization & routing
- Execution Layer: SAP S/4HANA Transportation Management for freight orders & Automated Transportation Planning
- Visibility Layer: GTT for milestone tracking & exception alerts
- User Layer: Fiori apps & dashboards for planners/dispatchers
9. Process & Operational Improvements
- Automated Freight Order creation via embedded TM
- Real-time event updates driving dynamic replanning
- Proactive management of delays with ETA-driven alerts
- Standardized planning across all DC → Store / Hub routes
- Consistent multi-country execution processes
- Enhanced planner efficiency through Automated Transportation Planning tools
This transformation significantly strengthened Retail Logistics Optimization and execution consistency.
10. Reporting, Analytics & Transparency Improvements
- Real-time shipment dashboards ensuring Real-Time Shipment Visibility
- Predictive arrival times with automatic recalculation
- Exception-based workflows replacing manual follow-ups
- Operational KPIs visible end-to-end (DC → Store)
- Improved auditability of logistics events and decisions
The organization moved toward a fully Event-Driven Transportation Management model.
11. Quantified Business Benefits & KPIs
KPI | Before | After | Improvement |
On-time Delivery | ~85% | ~95% | +10 pts |
Manual Planning Effort | High | −35% to −40% | Significant reduction |
Planning Accuracy | Limited | Much higher due to real-time events | +45% |
Shipment Visibility | Fragmented | 100% real-time | Complete transparency |
Replanning Response Time | Hours | Minutes | 80% faster |
12. Financial & Operational Results
- Lower cost per delivery through optimized routing and improved Retail Logistics Optimization
- Reduction in penalties and delays
- Ability to scale logistics operations without proportional headcount increase
- Improved stock availability in stores due to optimized DC-to-Store Replenishment
13. Strategic Value & Future-Ready Model
The new SAP S/4HANA Transportation Management platform enables the Discount Retailer from NL to:
- Support aggressive European expansion effortlessly
- Develop its roadmap for digital transformation in logistics.
- Use predictive analytics and AI-driven planning.
- Include emissions monitoring and sustainability metrics.
- Using event-driven transportation management to increase supply chain resilience
14. Conclusion / Outcome Summary
Through a strategic SAP TM Implementation, the Discount Retailer from NL transformed its logistics operations using SAP S/4HANA Transportation Management, BN4L-GTT, SAP BTP extensions, and telematics integration.
The result is a highly automated, visible, and scalable transportation platform delivering:
- Higher service levels
- Lower operational costs
- Full Real-Time Shipment Visibility
- Faster, more accurate decision-making
- A digitally enabled European Retail Supply Chain ready for future growth
Get in touch with us to talk about your logistics problem and use SAP S/4HANA Transportation Management to speed up your logistics digital transformation.