What Is SAP TM Module? S/4HANA Transportation Management – An All-Inclusive Guide
SAP TM (Transportation Management) is SAP’s module to plan, execute and settle freight movements by road, rail, air and ocean. In S/4HANA it runs embedded in the core system, shares master data with sales, purchasing and finance. Companies use it to build loads, select carriers, calculate freight costs, track shipments and pay carriers from one connected flow.
This guide is a simple explanation of TM module in SAP. What is TM module, where does it fit in S/4HANA, the objects every consultant needs to know, a quick reference sheet you can save as a PDF and what should be covered in SAP TM module training.
What Is the TM Module in SAP?
SAP TM handles the transportation of goods between locations. It answers the practical questions like: Which orders go on which truck? Which carrier should move it? What will the freight cost? And where is the shipment right now?
It is used by two types of organisations:
- Shippers (e.g. manufacturers and retailers) who ship their own goods and want lower freight costs and improved visibility
- Logistics service providers (LSPs) who sell transport to customers and need to manage forwarding orders, carriers and customer settlement
SAP documentation mentions the primary functions of SAP as: requirements management, order management, transportation planning, subcontracting and tendering, charge management, settlement and strategic freight management.
SAP TM: Where it sits in S4HANA
From S/4HANA release 1709 TM can run embedded inside S/4HANA with a shared database and master data without replication between systems. It can also run in parallel as a separate system. Older standalone TM on SCM is a different, earlier, deployment.
| Deployment | How it works | Typically suits |
|---|---|---|
| Embedded Basic TM | Runs in the core S/4HANA with limited scope, delivery-based freight units and simple planning | Shippers with one ERP and simple flows |
| Embedded Advanced TM | Runs in the same system with extended features such as order-based freight units and richer planning | Complex shippers and LSPs in one system |
| Side by side (decentralised) TM | Runs on its own S/4HANA system and interfaces to one or more ERPs | Large networks with multiple ERP systems |
The basic TM has some known limitations. For example, in one freight order one cannot combine freight units for inbound and outbound freight units, and the freight rate tables support fewer scales. Licensing rules can change so check your exact entitlements with SAP or your implementation partner before you design your landscape. The extended scope is also called professional shipping in older material.
Core Objects Every SAP TM Consultant Must Know
If you know these objects, the rest of the module will fall in place.
- Transport requirement. The requirement for transport, which is generated either from an order (order-based) or a delivery (delivery-based).
- Freight unit. The smallest unit built from the transportation requirement, with freight unit building rules.
- Cargo order The document of execution for road, rail or air movements. It is collected on planning of freight units.
- Freight booking. The equivalent document for ocean and air carrier bookings.
- Forwarding order. The order that LSPs use to sell transport to customers.
- Calculation sheet and rate tables. The system that calculates freight charges.
- Freight settlement paper. The record that translates charges into carrier invoices or customer billing and posts to finance.
How the SAP TM Module Works From End to End
This is what a typical shipper flow looks like in an embedded landscape:
- Order and delivery. A sales order or purchase order is created in SD or MM and then a delivery is created.
- Transport requirement. TM generates a requirement from the order/delivery.
- Freight unit building. Rules convert the requirement into freight units.
- Planning. The transportation cockpit and the optimizer allow planners to group and assign freight units to vehicles as freight orders. This step is thoroughly described in our guide about the Transportation cockpit and VSR optimizer.
- Carrier selection and tendering. The system either decides carriers by rules or does a tender where carriers bid and you give the business.
- Execution and Monitoring Release freight order, issuing goods and tracking events and exceptions.
- Freight calculation and settlement. calculation of freight charges, checking and settlement thereof with postings to finance. Read our walkthrough on charge calculation in SAP TM. To get a wider view of these steps from the logistics side, check out this overview of the SAP transportation management process.
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Main functional areas of the TM module
| Area | Description |
|---|---|
| Master data and network | Business partners, locations, resources, zones, lanes and default routes |
| Planning and optimisation | Manual and automatic planning, load consolidation, vehicle scheduling |
| Carrier selection and tendering | Carrier determination, tender creation, bidding and award |
| Charge management | Calculation sheets, rate tables, surcharges and agreements |
| Settlement | Freight invoices, Credit memos, Cost allocation and finance postings |
| Execution & monitoring | Goods issue, Events, Milestones, Exceptions and KPIs |
| Collaboration | Carrier communication and track & trace via SAP Logistics Business Network |
| Strategic freight management | Analysis of freight costs and long-term carrier agreements |
How SAP TM Connects to Other Modules
The TM module is seldom alone in SAP. It is connected with:
- SD and MM that issue the orders and deliveries that create transport demand
- EWM for warehouse execution, loading and yard activity
- FI, receiving freight cost postings from settlement
- Logistics Business Network connecting shippers, carriers and partners
If you are planning for next learning of logistics module then compare TM with SAP EWM training because both are required in many projects.
SAP TM Module PDF: Quick-Reference Sheet
A lot of learners are searching for a SAP TM module PDF to keep the important terms handy. Use the sheet below Save or print this page as a PDF for revision
| Term | Meaning |
|---|---|
| OTR | Order-based transportation requirement |
| DTR | Delivery-based transportation requirement |
| FUBR | Freight unit building rule |
| Freight unit | Smallest transportable unit |
| Freight order | Execution document for a shipment |
| Freight booking | Booking with a carrier for ocean or air |
| VSR | Vehicle scheduling and routeing optimisation |
| LBN | SAP Logistics Business Network |
| LSP | Logistics service provider |
ERPVITS course page also offers a downloadable SAP TM curriculum PDF, allowing you to browse through the entire list of modules before enrolling.
Why Choose SAP TM for Your Business
- Lower transportation costs via consolidation, better routes and carrier competition
- Improved use of assets through scheduling of loads against vehicle capacity
- Visibility of shipment status, events and exceptions
- Quicker, more precise settlement, with fewer disputes between carriers and shippers
- A single data model for embedded deployments, which lowers the integration effort
What You Should Know About SAP TM Module Training
Good SAP TM module training teaches the module as a connected process, not as a list of screens. Look for coverage on:
- System navigation, master data and transport network
- Freight and forwarding orders and freight units
- Planning, the cockpit of transportation and optimisation
- Carrier selection, tendering & contract rates
- Calculate and Settle Charges
- Business Network for Execution, Monitoring and Logistics
- Integration with SD, MM, EWM and finance
Practice is the most important thing. Ask any provider what lab hours you get and if you work in a live SAP TM system.
What is ERPVITS SAP TM Training
The ERPVITS SAP TM course is about 45 to 50 hours long and consists of 10 modules, from introduction and master data to network planning, freight order management, optimisation, carrier tendering, settlement, execution, supply chain collaboration and advanced topics. It consists of:
- 60+ SAP TM System Guided Lab Exercises
- Case Studies on manufacturing, e-commerce, pharma and 3PL scenarios
- Small groups of 8 to 10 learners
- Weekly live Q&A sessions and lifetime access to the recordings
- Provide coaching, mock interviews and certification preparation
- 6 months instructor support after the course
This course is for learners with logistics, supply chain, MM, SD and EWM backgrounds or fresh graduates. SAP experience is a plus but not mandatory. If you have a logistics background, check out our guide on making the switch to SAP TM from logistics or SCM, where we break down how your experience translates.
Opportunities to Pursue After Learning SAP TM Module
Common roles include SAP TM consultant, logistics implementation expert, transportation analyst and supply chain consultant. To know the latest hiring trends and pay, refer to our SAP TM jobs and salary guide. Prepare yourself with our SAP TM interview questions.
Common Questions
What is SAP TM module?
SAP TM (Transportation Management) is SAP’s solution. It plans, executes and settles freight movements across road, rail, air and ocean. In S/4HANA it can run embedded in the core system.
Is SAP TM included in S/4HANA?
Yes. Starting from release 1709 TM can run embedded in S/4HANA. It may also run as a side-by-side decentralised system.
How does Basic TM differ from Advanced TM?
Basic TM is designed for simpler shipper scenarios. Delivery-based freight units and restrictions such as no combined inbound and outbound freight orders. Advanced TM adds order-based freight units, richer planning and deployment options for complex networks and LSPs.
What’s the distinction between a freight unit and a freight order?
A freight unit is the smallest transportable quantity constructed from an order or delivery. A freight order is the execution document that groups freight units into a shipment.
Is SAP TM Module pdf free to download?
You can print or save this guide as a PDF for revision, and the ERPVITS course page has a downloadable curriculum PDF with the full module breakdown.
Who should take SAP TM module training:
Since the module is based on process knowledge rather than coding, it’s a great opportunity for logistics and supply chain professionals, SAP consultants from MM, SD and EWM and graduates looking for SAP careers.
What is the duration of SAP TM training?
ERPVITS has 45 to 50 hours of live training over 8 to 12 weeks, with weekday, weekend, flexible and self-paced options.
Start Learning SAP TM Module
With the SAP TM Module, orders, planning, carriers, execution and settlement are one freight process. The core objects and flow are easy to grasp and then you can think through almost any transportation scenario. If you’re a beginner and want to know more about it, then our SAP TM training guide is a good read to go along with.
Would you like to try it on a live system? Book a free demo for SAP TM training, call +91 8408878222 or mail us at info@erpvits.com.