SAP TP/VS and i2 Comparison

[Former Member]

Folks,

We are in the process of evaluating the right technology for Transportation Management. We are already running on i2 and we are trying to analyze if SAP TP/VS can address our business needs and hence move to a consolidated SAP Platform.

SAP R/3 is the basic ERP system.

This a Chemical Distribution industry. They have quite a volume of both inbound and outbound freight arranged and paid by the company. Primarily in North Americas for now, which would then be rolled-out globally.

The requirements are

1. Ability to consolidate inbound and outbound freight.

2. Load tendering- Send the carrier a EDI/WEB notification and wait for them

to respond. Depending upon carrier message(accept/Reject) continue the

Load tendering until the carrier is accepted. We are also using a VAN for this purpose.

3. Freight Rating, 3 way match audit and EDI 210 freght bill automatic payments.

4. Based on the above create shipment, Shipment Cost sheet and Settlment process (Service Entry sheet creation ) in R/3. Also take back the Shipment cost to Billing for PA purposes.

My questions are

1.Has anyone implemented SAP TP/VS for this kind of requirement. Any comparison chart/spreadsheets you can share with.

2. I keep hearing from various sources that i2 has better algorithms

which can help you build in a lot of constraints as compared to APO TPVS. How true is this statement.

3. Does TP/VS also use Condition technique to maintain freight rates. How complex/Cumbersome is it to use condition technique for ongoing maintainance of rates.

4. Does TP/VS have a plug-in / API to the standard Tariff base like CZARLITE and can these be used to automatically update the rates in TP/VS.

5. How is mileage calculated for mileage based rates for LTL in TPVS. Does it have an API with Rand McNally or PC Miler softwares.

6. I don't see a way in R/3 (not sure if TPVS would address this) to consolidate inbound and outbound movements. For Eg. A Customer Drop off and a Vendor Pickup. Has anyone faced an issue with such scenarios. Any insight about how to resolve this would be helpful.

Thanks,

Anand

[Former Member]

Hi Anand,

First let me tell you that I have only worked with TPVS in my first implementation project six years ag where I was a PPDS cons. I will try to share whatever knowledge I have for the same.

Transportation Planning never was a core focus area of SAP and it is very much visible in the capability of the product. Its only in the SAP Summit of 2006 did SAP revealed its strong initiatives towards Transportation. So ECC 6 in combination with SCM 5.0 may be a strong solution proposal. But I have not yet heard or seen any such comments.

Regarding your Requirements & the capability of TPVS to comprehend it.:

1. Well TPVS in combination with Deployment is capable of consolidating both inbound and outbound Freight. It also can combine different products, but as yours is a chemical product it most possibly not relevant. The hitch is that your master data needs to be precisely defined and that too at three levels namely: route, Vehicle & product.

2. TPVS is a planning tool & not a execution functions are very limited. Though you can send a email to a transporter after planning finalization, there is no way to receive an acceptance from the transporter. Even if you customize to receive the reply is not feasible to change planning on the basis of reply of the transporter(Ex. requesting next cheapest transporter).

3. Freight rating is based on notional costs that you enter as master data. Actual costs are maintained in R/3 only and invoices are generated for R/3 TOs only. TPVS only does optimizing of your transportation based on Due date, notional costs & Routes.

4. Based on the above inputs its obvious that this requirement is absolutely not feasible.

And though drop off is possible, cross docking and inter country or intra vehicle transportation is very difficult(I am not sure but probably not possible)

BUT its not that your requirements cannot be met by SAP just that it is not feasible by TPVS.

A combination of SAPAPO TPVS, SAP ANALYTICS, SAPAPO EM and SAP R/3 and take care of 90% of your requirements. All these systems communicate to each other internally, so the problem of interface will not be there.

SAPAPO TPVS: Requirements, freight consolidations and route calculations.

SAP ANALYTICS: To follow your shipments. Also mileage calculations can be done by historical data.

SAPAPO EM: For communication with transporters and provide inputs for further or re planning.

SAP R/3: for Actual cost calculations and invoicing.

I do not know how much this will help but I am sure this will give you a lead.

Regards

Santanu Dawn

Regarding I2 i do not have much info and even I have heard from experts that it has better algorithms and far more number of variables can be handled.

[Former Member]

Thanks Santanu. I also heard that there is something called SAP FCX (Freight cost extension). Any thoughts, ideas about it. What are its capabilities etc.

Anand

[Former Member]

I am sorry Anand I do not have any information on the topic of FCP.

Maybe this success stoty of a logistics industry can give some insight into logistics capability of SAP.

<a href="http://www.sap.com/industries/logisticservices/pdf/CCS_SAP_%20for_LSP_at_Arvato.pdf">SAP FOR LOGISTICS SERVICE</a>

Hope this helps

Regards

Santanu Dawn