Optimizing Transportation Planning

[Former Member]

Hi Expert,

I have a request as describe as per following.

As-Is: User defined each destination (distributor) a Transportation Zone, with a predefined cost.

There are some small distributors, who raises small order. User want to utilize the truck load. Example: we have 3 distributors A, B, C (3 transportation zone A, B, C and cost pre-define A, B, C ). C is the farest. A is the closest, and B is in the middle way from A to C.

As of current practice, user ship stocks to the 3 distributors separately even the stock is much smaller than truck load (e.g: truck load capacity is 10 tons, but user ship only 2-3 or 4 tons). And the total cost to ship to 3 distributors separately is: Total cost= A+ B + C.

To-be: What User want to do is: shipping planer (in the WH) will be able to assign 3 shipments of 3 distributors to 1 shipping route to save cost, the total cost would be: Total cost = C (the farest)+ X + X. X is the cost for each drop during the way to C.

Would like to know standard SAP can cater the above requirement and how?

If not what's the alternative?

Thanks so much.

Regards,

Aw

[Former Member]

Hi Expert,

Just wonder is the standard can cater this reqirement?

From my understanding, std SAP cannot cater this right?

Thanks & reagrads,

Aw

[tarunkumar]

Hi Aw,

Yes, TM standard is capable of modeling your requirement.

You can use cost functions to model your vehicle utilization cost along with the distance based cost for the means of transport. Using vehicle utilization you can have penalty for under utilization, to balance the vehicle utilization according to the capacity you also have to maintain proper distance based cost for your means of transport.

Thanks & Regards,

Tarun

[Former Member]

Hi Tarun Kumar,

Just wonder how the route be set?

Currently, e.g.

Shipment 10001 -> route A

Shipment 10002 -> route B

Requirement:

Put above 2 shipments (DOs in the above shipment) into 1 shipment

Due to route different, it cannot be in 1 shipment right?

or the solution: the routes have to be changed/revised right?

Is it possible there are multiple routes in a shipment?

Thanks & regards,

Aw

[Former Member]

Hi Aw

If the route is being determined in the Shipment, What are you planning to use in SAP TM?

Please let us know the requirement.

Regards

Vinod

[Former Member]

Hello Aw,

Could you check Transportation Proposals? If you define cost and functions cost for your MTRs. You will able to choose the best proposal for you scenario.

Check this link: Generation of Transportation Proposals - Planning - SAP Library

Let us know.

Best regards,

Vicente Picardi