Transportation Planning & Optimization
Turning transportation demand into an executable plan — with consolidation, capacity and service commitments in view. By Deborah Born.
Transportation planning in SAP TM begins before a truck, carrier or route has been selected. Customer orders, deliveries and purchasing requirements create transportation demand. SAP Transportation Management then provides the planning objects and tools needed to consolidate that demand, evaluate capacity, respect dates and constraints, and create executable freight orders.
What planning is trying to achieve
The goal is not simply to find the mathematically shortest route. A usable plan must balance cost, capacity, customer commitments and operational reality. The planner needs to decide which requirements can travel together, which time windows must be respected, what equipment or capacity is required, and whether manual or optimizer-supported planning is appropriate.
Selected system guidance
The transportation cockpit brings demand and planning options together. Depending on the scenario, planners can build freight orders manually, use background planning or apply the optimizer to compare consolidation and routing alternatives. Before tuning optimizer settings, confirm that the business rules, resources, calendars and master data reflect the real network.
Where planning commonly breaks down
- Incomplete or inconsistent location and transportation master data
- Unrealistic pickup or delivery windows
- Incorrect calendars, resources or capacities
- Unclear planning ownership across organisational units
- Demand reaching SAP TM too late for meaningful consolidation
Continue the process chain
Planning creates the executable transportation structure. The next step is to identify the carrier that should perform the movement.
Sources and further reading
Plan the process, not only the route.
Explore all eight stages in the SAP TM process chain or continue the discussion in SAP TM & Logistics Innovators.