SAP TM Parcel Scenario - shippers' need of the hour

SAP TM Parcel Scenario – shippers’ need of the hour

By: Krypt Team - February 21st, 2020

Authored by: Shruti Ram

With expansion of e-commerce globally, consumer preferences have moved more towards just-in-time delivery. The variety of delivery options along with the perceived quality of the delivery service are the key-differentiator for such consumers and hence directly impacts the e-commerce landscape.

Most of the time, during the shipping process shippers encounter numerous hurdles – from shipping costs, unavoidable delays, to damaged shipments, and more. This has necessitated to meet consumer’s demands and avoid delivery delays through increase in Parcel shipments to consumers. Parcel scenario in SAP TM enables shippers to plan, carry out carrier selection and also transport parcels to global recipients in a more systematic way.

FEATURES OF PARCEL SCENARIO SET-UP

Deliveries created in SAP ERP with Parcel mode as the shipping condition are sent to SAP TM and Freight Units are created
SAP determined the Direct Shipment Options (DSO) on the Freight Units to see what is the best way to ship this package and also which carrier is the cheapest carrier to ship this package
Direct Shipment options are nothing but all the different shipping options available for the package. System determines these options based on the agreement
The system calculates transit duration using agreement created in SAP TM
Scheduling is performed by the system based on this transit duration and calendar
Execution document consisting of all necessary data is sent to carrier

BENEFITS OF THE IMPLEMENTATION

Right time delivery
Automatic shipping type and carrier determination. Optimizer automatically picks the right Parcel option to be used for the Shipment, also does carrier selection to pick the cheapest carrier
Reduced cost as system determines the most cost-effective way to ship the parcel
Since it performs scheduling, it figures out the earliest pickup date and latest delivery date as well
Error free

How can Krypt help you?

KRYPT as an SAP preferred partner has assisted in the success of global businesses – private & public, implementing SAP TM, GTS, IBP & EWM.

For those who wish to beat the competition and be an early adopter, Krypt offers Rapid Deployment Solution for Parcel Scenario. We can deliver this solution tailored to your business needs; up & running within few weeks.

To know more about our products/services, please request a DEMO or do contact us.