Authored by: Vijendra Kargudri
Globally products are transported across vast geographies to meet customers’ varying demands. Most organizations have experienced that their ERP systems provide excellent tools to manage accounting, HR, CRM, and other activities. However, an ERP system considerably lacks the necessary tools to manage transportation optimally. This is where SAP Transportation Management System (SAP TMS) can immensely contribute. Integrating ERP system with SAP TMS an organization can achieve five business benefits related to transportation.
In this blog, let us explore each of the benefits that will be derived from integrating ERP & SAP TMS:
1. Improved automation:
Integrating ERP with SAP TMS, an organization can accomplish increased automation by allowing the automatic selection of carriers. TMS allows working with shippers over an interface using real-time data for complete visibility and accuracy. It provides a forecast on how a particular carrier will impact the business financially and accordingly select the best carrier for transportation. It allows automatic order processing to eliminate day-to-day manual work involved in order processing, which helps reduce costly errors due to human intervention.
2. Improved customer experience:
Though ERP traditionally has CRM tools, integrating it with TMS elevates the customer experience to another level by facilitating:
- scheduled pickup, wherein the user can specify the required location and time for specific delivery
- the user can set up accurate appointments using the TMS, eliminating any chance of error or dissatisfaction
- manage shipment disputes that arise due to confronting delivery schedules, any potential damage, and other nagging disputes related to goods handling
- collaboration portals wherein users can update freight charges to accurately reflect any mistakes made during shipment.
3. Improved visibility:
SAP TMS helps bring in improved visibility across transportation through drivers tracking through TMS’s transportation intelligence for detailed reports across the supply chain using real-time shipment data. It keeps transportation metrics tuned to various industries, by monitoring parameters like fuel usage trends, number of late shipments, transit times, etc.
4. Improved transportation planning:
Having access to improved analytics and reports integrating ERP with TMS allows improved transportation planning. With SAP TMS integration, a user can consolidate shipments considering factors like capacity, load optimization into account, which reduces overall shipment cost and improves the bottom line. It also helps handle multi-modal shipments, thereby allowing the user to decide which mode of transport is cost-effective for the business.
5. Improved freight management execution:
As neither systems can execute the job on its own, it necessitates integrating both ERP and TMS to maximize the benefits and capabilities of the resources. Though ERP unifies all the functions across the organization, it cannot provide an explicit level of detail required for seamless transportation, especially when one has to classify multiple locations across geographies based on various compliance parameters, as products are loaded automatically from ERP to TMS.
Krypt, as a preferred SAP partner has successfully implemented SAP TM for major industries across the globe. Krypt can help organizations to integrate their existing ERP with SAP TMS and optimize their logistics across supply chains.
Follow us on:
Image Credit: Freepik