Overview:
In the ever-evolving business landscape, companies are prioritizing efficiency, cost reduction, and the establishment of resilient supply networks. Recognizing the transportation and logistics industry’s pivotal role in global supply chains, businesses are embracing digital transformation to optimize their operations.
SAP S/4HANA TM emerges as an advanced enterprise resource planning system that empowers businesses to cultivate supply chain resilience. It seamlessly manages end-to-end transportation processes, elevates service levels, reduces costs, and optimizes resource utilization. As SAP LE-TRA, the logistics execution sub-module in SAP ERP, is phased out, SAP S/4HANA TM takes the lead.
This article aims to delve into the benefits and considerations associated with upgrading from SAP LE-TRA to SAP S/4HANA TM. We will explore the indispensability of migrating to SAP S/4HANA TM, shed light on the migration process, examine licensing costs, and emphasize the significance of a digital supply chain in contemporary businesses.
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The Importance of Digital Supply Chain in the Modern Business World:
Managing complex logistics and supply chain processes is crucial for businesses to succeed globally. Digital transformation of logistics can help companies increase efficiency and reduce costs while building resilient supply networks.
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SAP S/4HANA TM: Strategic Application for Transportation Management:
- SAP S/4HANA TM is an advanced enterprise resource planning system that helps businesses build supply chain resilience. It handles end-to-end transportation processes, enhances service levels, reduces costs, and optimizes resource utilization.
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Why Move from SAP LE-TRA to SAP S/4HANA TM:
- While SAP LE-TRA is a popular transportation execution solution used by businesses, it will no longer be supported after 2027. SAP S/4HANA TM is the replacement solution that covers most shipper and logistics service providers’ processes and offers functionality comparable to what LE-TRA offers.
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Migrating to SAP S/4HANA TM from LE-TRA:
The thought of migrating from LE-TRA to SAP S/4HANA TM may appear daunting, but the endeavor brings forth numerous advantages. Outdated software exposes companies to security risks and potential data loss, leaving them susceptible to cyberattacks. However, upgrading to SAP S/4HANA TM guarantees compliance with the latest global standards and regulations, bolstering security and safeguarding valuable data assets.
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Licensing Cost:
In the realm of SAP S/4HANA, Basic Shipping emerges as the new solution that seamlessly replaces LE-TRA, and the best part is, it comes at no additional licensing cost. This straightforward transition allows customers to embrace the enhanced functionalities of Basic Shipping without incurring any extra expenses.
However, for organizations seeking more advanced shipping capabilities within the SAP S/4HANA ecosystem, there is an option to explore Advanced/Professional shipping, which comes with an additional license cost. SAP caters to the needs of organizations with complex transportation requirements by offering the full-featured solution, Advanced TM. This comprehensive solution empowers businesses to tackle intricate transportation demands efficiently and effectively.
Why Migrate to SAP S/4HANA TM from SAP LE-TRA?
In today’s digital age, businesses need advanced logistics and supply chain solutions to optimize their operations continually. SAP S/4HANA TM is one such comprehensive solution that uses the latest technologies, including in-memory database processing and advanced analytics, to help organizations make better decisions faster.
Although numerous SAP LE-TRA users currently employ non-SAP transportation management systems, the inclusion of SAP TM within S/4HANA presents an embedded alternative that can greatly enhance the integrated solution and minimize functional silos. This article delves into seven compelling rationales for migrating from SAP LE-TRA to SAP S/4HANA TM, highlighting the benefits it offers to logistics, supply chain, and IT managers.
Benefits of Upgrading to SAP S/4HANA TM:
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1. Expanded Functionality:
- By adopting SAP TM, businesses can harness a wide range of enhanced functionalities introduced by SAP. It’s important to note that SAP LE-TRA will no longer receive updates for new features, making SAP TM the optimal choice for accessing the latest capabilities and maximizing operational potential. The migration to SAP TM unlocks a world of possibilities and ensures that businesses stay ahead with cutting-edge functionalities.
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2. Streamline and Consolidate:
- With the phase-out of obsolete and redundant modules like LE-TRA, it becomes crucial to avoid duplication and streamline transportation-related functionalities. By consolidating these functions into a comprehensive solution like SAP TM, businesses can achieve a one-stop platform that eliminates redundancy and simplifies operations. Embracing this unified approach ensures efficiency and effectiveness while keeping pace with SAP’s evolving product landscape.
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3. Process Automation:
- Automate manual processes, such as automated planning, carrier selection, and tendering, to increase efficiency, optimize freight capacity procurement, and reduce overhead costs.
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4. Reduce Freight Spend:
- Analyze freight contracts with simulation and what-if analyses to negotiate optimum freight costs.
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5. Enhanced Visibility:
- Monitor freight cost and order visibility with advanced real-time analytics, integrated freight execution tracking, and event reporting.
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6. Proactive Supply Chains:
- Respond better to any disruption in real-time leveraging dynamic re-planning capabilities and real-time integration with the warehouse enabling efficient order processing.
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7. Improved Usability and Cost Efficiency:
- Unlocking exceptional value with a notable reduction in the total cost of ownership, the migration to SAP S/4HANA TM introduces a range of user-friendly features. These include improved user experience, streamlined administration, advanced map-based planning tools, Gantt charts, and load planning capabilities, all of which contribute to increased usability and cost-effectiveness.
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At the End:
Migrating to SAP S/4HANA TM can seem like a daunting task at first, but it presents an opportunity for organizations to begin their digital transformation journey. With SCM Champs Inc help, you can streamline the process, leveraging our scenario options, methodology, accelerators, and recommendations based on best practices scenarios. Register for a discovery workshop to learn more about how we can help you make the switch and start reaping the rewards of SAP S/4HANA TM.