Key 11 complementary tools to SAP TM - what should solution architects watch for when designing seamless and agile transportation solution?
10th issue for C) SAP Logistics Explanations & Updates - how SAP TM process can be completed or alternated by some 11 potential network or TM tools in the market
For those that don’t know me, I’m Jakub Ctvrtnicek, senior solution consultant at LogTech space and I am issuing insights and letters in 3 workstreams: A) Logistics & Shipping Industry Insights, B) LogTech Reviews & Info and C) SAP Logistics Explanations & Updates. This time we zoom into C) SAP Logistics Explanations & Updates workstream.
Preface
Compared to most SAP TM consultants (or even SAP consultants in general), I bring a unique advantage: my career started with evaluating technologies before transitioning into SAP TM. In the industry, SAP TM consultants are often known for their deep, specialized "system skills" in SAP TM, with years of experience that give them a thorough understanding of the platform. However, these consultants typically have limited exposure to solutions outside SAP TM. On the other hand, solution architects for other TMS platforms often find the SAP ecosystem to be unfamiliar territory.
In this article, I want to share some solution and architecture options that integrate SAP TM with other tools. The focus is on the value these approaches bring to customers, based on my discussions and experiences with various SAP teams.
Today’s solutions often combine multiple tools. A common industry practice is to use "best-of-breed" tools for specific functions or to build on existing integrations by transport mode. I’ve encountered setups like these:
a) SAP ECC – connect to ocean portal and separate trucking portal
b) SAP S/4 TM – connect to ocean portal and separate trucking portal
c) SAP TM – connect to trucking portal, ocean is manual
d) SAP TM – EDI/xml with every partner via middleware
Or various other combinations. The current standard approach seems to be either connecting to one portal for ocean and one for road transport or using middleware (in-house or third-party) to integrate with carriers and partners via messaging. This is the current state of the industry.
Interestingly, some non-SAP portals are evolving beyond their traditional role as simple connectors. These portals now offer lightweight TMS functionality, sometimes overlapping with SAP TM features—and occasionally with good reason. Similarly, with the recent introduction of the basic version of SAP S/4 TM, these providers are strategically positioning themselves to complement SAP’s offering. I’ll explore this further below…..
SAP TM Position in the market
SAP TM is widely regarded as one of the top three transportation management systems (TMS) on the market today, with a strong focus on managing complex enterprise transportation processes for Beneficial Cargo Owners (BCOs). However, it’s important to understand that SAP TM isn’t an out-of-the-box solution. Instead, it functions as a flexible framework that can be configured and customized to suit a wide range of business processes. This flexibility allows companies to adapt SAP TM to regional or divisional differences within their own operations.
Because of this flexibility, implementing SAP TM always requires a deployment project led by a system integrator. These projects can take months—or even years—for a full, successful rollout. This is quite different from many other TMS solutions, which are more "ready-to-go" and can be implemented in weeks or even days.
Some system integrators, like Archlynk and Westernacher, have developed accelerators—tools and methodologies designed to shorten implementation times. However, the reality remains that SAP TM is enterprise software built as a configurable framework, rather than a plug-and-play solution.
Deployment strategy of SAP TM
Another important consideration for solution architects is the deployment options for SAP TM. Since the launch of SAP S/4HANA in 2017, SAP TM has been integrated into the same code base as the S/4HANA ERP system. This is a shift from earlier versions, such as SAP TM 9.5 and earlier, which operated on a separate technology stack.
By embedding TM into the ERP system, SAP introduced two distinct TM offerings for enterprise customers:
1. TM deployed as so called “Basic Shipping”
n addition to ERP, customers can access the basic functions of SAP TM, including Freight Unit, Freight Order, and manual processing capabilities. This version is essentially a “starter” edition of TM, serving as a simplified or “promotional” version of the full-fledged solution (see point 2).
This basic option is suitable for companies managing low shipment volumes, such as 10–20 shipments per week, and that can handle some manual processes. Best of all, it’s included for free or as part of the standard S/4HANA ERP pricing.
Legend: Dark Green – included, Light Green – only partially included features
Picture Credit: Jakub Ctvrtnicek
2. TM deployed as “TM advanced”
This version is also built on the S/4HANA ERP stack but includes full automation, computation, and object management features. It’s designed to handle the processing of thousands of shipments efficiently. Key features include automated Freight Unit creation, optimization and semi-optimization tools, automatic carrier selection, auto booking, and exception management.
Legend: Dark green – included features
Picture Credit: Jakub Ctvrtnicek
*there is also TM within so called Public Cloud solution, but for that one we will skip for now. More about Public Cloud vs Private Cloud TM I will elaborate in my next Wise-Chain Insight (to be published on 9th Dec).
As you could understand both TM base shipping as well as TM Advanced are always attached to ERP S/4 system, which means that customer needs to run EPR from SAP. If there is situation that customer runs other ERP (?), theoretically TM can be deployed on its own server without ERP (purely deactivating its function) but in practice this is rarely happening, almost none.
(Some) Shortcomings of SAP TM
Too tight integration to SAP ERP
Lack of its own network of carriers / LSPs
Freight Auditing – based on AP in ERP,
Analytics being available in SAC (another tool of SAP)
Master Data maintainance – Transportation Network
Long lead time of TM implementation
Price of license and price of implementation (mainly for simple processes)
This list maybe longer and is subjective. It should point out that there is a space for other supplemental tools to bring value.
Supplemental & Complementary tools to SAP TM
When we talk about supplemental and complementary tools for SAP TM, we’re referring to various ways these tools can enhance or extend TM functionality:
Network Connectivity: SAP TM doesn’t include built-in connections. While SAP offers its BN4L network tool (formerly LBN), customers often explore other network or portal options.
Enhancing TM Basic Shipping: Adding planning or execution features to address the lack of automation in the basic version.
Supporting TM Advanced: Providing tools that handle full planning and execution.
Meeting Specific Needs: Addressing requirements that SAP TM can’t cover, such as specific ocean booking processes.
Cost or Time Considerations: Choosing another tool due to lower deployment costs or shorter implementation times compared to SAP TM.
Some tools blur the line between being complementary and competing solutions—even among those built on the SAP platform.
For network connectivity specifically, there are a few common architecture models used in the industry.
Picture Credit: Jakub Ctvrtnicek
Models in detail:
A) historical situation where each carrier is connected
B) usage of LBN – SAP own network tool – often may not be at par with other industry players in terms of # of connected partners or maturity of features
C) usage of another network, e.g. buyco for ocean, alpega for road
D) usage of other network but channeled via LBN (mainly for visibility)
E) is essentially same as B or C but directly from ERP or from EWM module of SAP
In this section, I’ll share insights into specific tools and technologies that complement SAP TM, including options from both non-SAP providers and SAP-based technology partners.
Picture Credit: Jakub Ctvrtnicek
A) Based on non-SAP Technology
Following 6 providers complement TM from network, functional or “easy to use” perspective and are typically used for mode of transport (Truck, ocean).
(alphabetically)
AEB Carrier Connect
Mode: Truck, parcel
More: https://www.aeb.com/en/carrier-connect/carrier-cloud-sap.php
Profile: AEB Carrier Cloud for SAP® can be quickly and easily integrated into your SAP systems with ready-to-use plug-and-play connections. Your logistics or shipping team can then access a network of over 300 connected carriers and parcel services using preconfigured add-ons from SAP ECC, SAP EWM, SAP TM, or SAP S/4HANA.
Notable: Even though the list of carriers is not as large as some other tools, AEB carrier connect seems most advanced in ability to connect to “Anything” in SAP that can / would be creating a load, S/4 Hana, EWM (warehouse management system) etc.
AlpegaTMS
Mode: Truck, ocean via forwarders, ocean in build
More: https://www.alpegagroup.com/en-en/
Profile: Powered by our expansive open network of 80,000 verified and vetted carriers, Alpega forms a dynamic ecosystem where collaboration, innovation, and efficiency thrive.
Notable: Alpega has very smart detailed offering not only for road network, but also for customers who deployed the TM basic shipping, where Alpega is able to receive the Freight Units (demands) and plan / consolidate / optimize it into final Freight Order and return it back to TM. This way customer has still the base objects of TM to monitor, report or close its ledgers but use Alpega to plan and optimize loads and cargo as well as execute with carriers and partners.
BuyCo
Mode: Ocean (direct or NVOCC)
More: https://buyco.co/container-transportation-management-system/
Profile: BuyCo is high growing ocean shipping platform focusing on collaboration of shippers, carriers and shipper's customers using the most modern technology in industry. It provides "enabling layer" for direct carrier execution and management, especially to those shippers, who are moving away from freight forwarders strategy over to direct carriers control tower process.
Notable: Best description comes from interview with BuyCo’s customer, timber exporter, which had outlined following:
Quote: "BuyCo has more functional capability that they were able to demonstrate and were able to connect us with some of our key carriers who themselves referenced BuyCo."
When we drilled into detailed functions and processes with this BuyCo’s customer, we learned following value cases that BuyCo provides:
BuyCo is single place for coordinating all bookings to all ocean carriers
Sailings schedules used for planning by BuyCo are for good price and quality
Technology behind Bookings is all via API (as opposed to other industry tools that do via EDI)
BuyCo is capable to consolidate set of bookings / container into larger documentation set (Shipping Instruction) and provide as one to carrier, but still keeping traceability of each booking / container
BuyCo platform is providing notifications of changes and updates on booking from carrier side - saves tons of manual effort
It provides sophisticated connectivity to SAP TM - for freight Order updates & input into drayage planning (shipper is using TM for shipment planning and road execution)
Overall BuyCo represents very viable alternative for planning, execution on all ocean moves, whether direct carriers or NVOCCs. This gives customer high flexibility, low entry level of adoption and agility within documentation and in transit process.
Descartes eBooking
Mode: Ocean
Profile: Powered by the Descartes Global Logistics Network™ and integrated with the SAP Logistics Business Network, you can expand your ocean shipment capabilities, uniting multiple parties and processes together from the contract to booking phase, through the tracking and financial settlement lifecycle.
Notable: “Descartes eBooking Solution for ocean shipment management” is the only one in this list formally listed in SAP Store as add on top of SAP’s BN4L solution. So our architecture model D. They also have experiences with connecting directly to SAP TM.
Elogate
Mode: Truck
More: https://elogate.com/
Profile: Thanks to its modular structure, the SaaS platform enables optimal implementation of the specific requirements of our customers from various industries, including construction, chemicals & raw materials, manufacturing & production, food & pet food, beverages & food, mechanical engineering and automotive.
Notable: Elogate is very nimble and fast-growing TM execution platform with focus on process B2B industries primarily in DACH region.
Transporeon (Logistics Network Connector)
Mode: Truck
More: SAP TM integration
Profile: The missing piece in your ERP puzzle - It’s crucial to be able to match shipments within your partner network or book time slots in a dock scheduling system while also being able to connect and communicate regularly within your network. Most ERP systems lack this critical functionality and this is where we can help!
Notable: Transporeon focuses on key execution process steps of carrier slot booking at origin or destination warehouse and on smart spot / tender procurement, where some large shipping customers gain significant value - these use cases are highly complementing core SAP TM processes.
B) Based on SAP Technology
Among these tools are not only “core” SAP based technologies, but also solutions from formal SAP integration partners.
Lbase - TMS advanced
Mode: Any
More: https://lbase.software/en/loesung/tms-advanced/
Profile: This second license level of our transport management system gives you even greater process efficiency, enabling you to optimize your transports through semi-automated dispatch planning and intelligent routing. And with real-time information and telematics features, you always have great oversight of your routes. Giving you even more convenient process control and saving you time and money. Zeit und Geld.
Notable: Lbase TMS basic or TMS advanced is modular software developed specifically to cater for logistics operation of service providers. It has connection to its own warehouse system and dispatch planning system. What is interesting, its mother company Axians ICT is larger SAP integrator entity.
4Flow iTMS
Mode: Any
More: https://www.4flow.com/na_en/solutions/end-to-end-transportation-management-systems/4flow-itms.html
Profile: For globally operating businesses, transportation costs often account for more than half of supply chain costs. This means the potential for cost reduction is significant. With the integrated transportation management system (iTMS), 4flow optimizes end-to-end transportation processes in supply chain networks. By creating planning scenarios, the software solution identifies optimal transportation concepts and makes savings potential visible and achievable.
Notable: 4Flow is larger SAP integrator but as well offer its own TMS, which has interesting approach of providing planning, execution and control to their customers. In this way it is actually SAP TM competitor.
ArchLynk Transportation Portal
Mode: Any
More: https://archlynk.com/innovations/transportation-portal
Profile: ArchLynk Transportation Portal is an interactive portal and collaboration platform providing a single entry point for key players in the supply chain. Role-based access allows shippers, carriers, and customer service reps to efficiently manage orders and shipment execution with the help of cutting-edge analytics.
Notable: ArchLynk is a leading TM implementation entity with experience of TM deployment in shipper, freight forwarder but also at large ocean carrier
Westernacher
Mode: n/a
More: https://westernacher.com/transportation-management/
Profile: Westernacher offers solutions for optimal transport management with Instant Innovation Tools. SAP S/4HANA, SAP TM or SAP EWM provide the perfect foundation, enhanced with smart Westernacher tools and techniques. We strengthen your transport management as well as the digitalization of the entire transport chain with our clever tools. With Instant Innovation Tools, you work even more precisely, efficiently, quickly and flexibly in transport.
Notable: Westernacher acts as one of the top TM and logistics system implementation entity where most of their complementary tools are build on SAP tech and tailored for their customers. Westernacher provides driver app, connector / integration adapter and insight/analytics tools for transportation
Conclusion & Close up
SAP TM despite its all power and options and history of great deployments, has some inherent shortcomings which provides a space for other smart and easy to deploy tools either within specific modes (ocean, truck) or with non-SAP or SAP provider itself. Solutions architects should keep their horizon open to other specialist tools that can often also easy up the planning process or bring quick wins to customer deployment projects.
*more on SAP TM for other entities (carriers or Freight forwarders) and other TM solutions of SAP - read our next issue of Insights (to be published on 9th Dec)
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If this was interesting, leave a comment, write back or subscribe to my Substack. Alternatively you may reach me at jakub.ctvrtnicek@wise-chain-consult.com
Thank you!
Jakub
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The text, knowledge and conclusion in this article is NOT generated by AI, it is human-written.
