Take charge of unplanned service charges using SAP TM
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By: Krypt Team - August 6th, 2021

Author: Shruthi Ram

Supply Chain Challenges

Supply Chain is evolving & getting tough day by day due to the challenging scenarios and high customer expectations. The supply chain managers are finding it challenging to manage the supply chain optimally and efficiently. Accountability and billing of all the services are crucial to render the operation of the supply chain more efficient.

Service-Based Charges – Solution to the challenges

Several unplanned charges can occur at a later stage of the logistics, and it could be a challenge as they are unexpected. Also, there are several scenarios where the charges cannot always be planned—for example, certain services such as cleaning, unloading, demurrage, etc.

To solve such challenges, businesses/partners can use service-based charges to improve customer service. It helps to report service on an execution document as it occurs and automatically triggers the relevant charge for the execution document.

S4-TM Flow

Figure 1:  S4-TM flow (TM here is not embedded into S/4)

The first step is to create service types for all the services which need to be planned. For example – Z100- Excess Mileage; Z101- Out of route; Z102- Add second stop. These service types are assigned to their respective charge types and eventually included in the carrier agreement. These rates get pulled in when the services are entered in the execution document. Later, settlement can be posted and sent to S/4 and generate an invoice for the same.

Such a process of incorporating any unplanned charges into the system aids TM to be a more system-driven solution. This holistic approach increases the visibility of the supply chain.

How can Krypt help you?

Krypt is a ‘one-stop shop’ for supply chain & global trade solutions with a global footprint. Our in-house solutions and pre-packed solutions for SAP TM, SAP IBP, SAP EWM, and SAP GTS, are an outcome of our long-term innovation, technology know-how, and sustained customer engagement across 35 countries.

Our team of SAP TM experts can help you with a rapid & cost-effective integration/implementation of SAP TM and if you wish to know more, please request a free demo or contact us.

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