SAP TM and SAP Business Network for Logistics (BN4L) integration connects transportation planning and execution in SAP TM with carrier collaboration in the network: freight tenders, shipment milestones, proof of delivery, freight invoices and settlement. It’s useful for shippers who want to stop chasing carriers by email and phone, and move away from patchy, one-off EDI links. SAP Logistics Business Network (LBN) is the former name of SAP Business Network for Logistics.
SCM Champs is a US based SAP partner company focused exclusively on supply chain and logistics. We help shippers connect SAP TM with SAP Business Network for Logistics (BN4L),so carriers and freight forwarders can collaborate on tenders, shipment updates, documents and freight settlement using the same freight data.
This Article explains how SAP TM and BN4L work together, how BN4L compares with SAP TM and point-to-point EDI, when your operation is ready for integration, what it can cost, how long implementation typically takes, and what to plan before you start.
What Is SAP Business Network for Logistics (BN4L), Formerly SAP LBN?
SAP Business Network for Logistics is SAP’s cloud network for working with your logistics partners. Shippers, carriers, freight forwarders and visibility providers use it to share freight orders, shipment updates, documents and invoices in one place. SAP used to call it SAP Logistics Business Network, or LBN, which is why you’ll still see both names around.
It’s made up of three main solutions:
- Freight Collaboration, for tendering, carrier confirmations, documents and freight invoices
- Global Track and Trace, for following shipments and their milestones across partners
- Material Traceability, for tracking materials and batches through the supply chain
For SAP TM users, Freight Collaboration is usually where things start. Global Track and Trace often comes in later, when you want wider shipment visibility.
How Does SAP TM Work With SAP Business Network for Logistics?
Here’s what a typical freight flow looks like once the two are connected.
1. Freight Order Created in SAP TM
Your transport planners create and plan the freight order in SAP TM, the same way they do today. Nothing changes on their side at this point.
2. Freight Tender Sent to the Carrier
SAP TM sends the tender out through BN4L. The carrier sees it in the network, either in the web portal or in its own system if it’s connected.
3. Carrier Accepts or Rejects the Tender
The carrier responds in BN4L and the answer goes straight back to SAP TM. No email thread, no phone call to confirm.
4. Shipment Milestones Are Reported
As the load moves, the carrier reports events like pickup, departure, delays and arrival. Your team sees them in SAP TM instead of having to chase updates.
5. Proof of Delivery Is Captured
The carrier uploads the proof of delivery and any other documents to the network, and they’re linked to the right shipment.
6. Freight Invoice and Settlement Are Processed
The carrier submits its invoice through BN4L. It gets checked against the freight order and the agreed charges, and freight settlement is done in SAP TM.
SAP TM vs SAP Business Network for Logistics: What’s the Difference?
SAP TM runs your transportation. BN4L is where you work with the partners who actually move the freight. Here’s how the work splits between them:
| Capability | SAP TM | SAP BN4L |
|---|---|---|
| Transportation planning and optimization | Yes, its core job | No |
| Freight order management | Yes | Shares freight orders with partners |
| Carrier tendering | Starts and controls the tender | Carriers receive and respond to tenders |
| Carrier communication | Limited without a connected network | Main purpose |
| Shipment milestone visibility | Shows events coming in from partners | Collects events from carriers and partners |
| Proof of delivery and documents | Stores the result | Where carriers upload them |
| Freight invoicing and settlement | Freight cost calculation and settlement | Carriers submit invoices |
| Main users | Your internal planners | Your carriers, forwarders and partners |
| Deployment | On-premise or in S/4HANA | SAP cloud service |
Put simply, SAP TM decides what should happen, and BN4L is how your partners see it and respond.
BN4L Freight Collaboration vs Point-to-Point EDI
A lot of shippers still connect to each carrier with its own EDI link. BN4L can work with EDI too, but instead of building and looking after one connection per carrier, your carriers join one shared network. Here’s how the two approaches compare:
| BN4L Freight Collaboration | Point-to-point EDI | |
|---|---|---|
| Setup per carrier | Carrier joins the network, through the portal or an integration | Separate mapping and testing for every carrier |
| Small carriers | Can use the web portal, no IT team needed | Often can’t support EDI at all |
| Shipment updates | Event updates as they happen | Often batch-based, and depends on the carrier |
| Documents and POD | Uploaded to the same shipment | Usually sent separately, often by email |
| Ongoing maintenance | Managed in one network | Grows with every new carrier |
| Best for | Many carriers of mixed sizes, need for visibility | A few large carriers with stable EDI links |
EDI isn’t going anywhere, and it works well with some large carriers. The network approach really helps when you work with a lot of carriers, or with smaller ones that were never on EDI in the first place.
Signs You’re Ready for SAP TM and BN4L Integration
If you already run SAP TM, these are the usual signs that carrier collaboration is holding you back:
- Carriers still confirm tenders by email or phone.
- Your transport team spends part of every day calling carriers for shipment updates.
- Proof-of-delivery documents come in as email attachments, or don’t come in at all.
- Freight invoices get checked by hand against the freight order.
- Milestone updates are patchy, late or different from one carrier to the next.
- You work with a lot of carriers and forwarders, and adding a new one means weeks of EDI work.
- When a customer asks where their shipment is, someone has to go and find out.
If several of these sound like your operation, BN4L is worth a serious look. A short review of your freight process will show you where the biggest gaps are.
What Business Results Can You Expect?
Every company starts from a different place, so the results will vary. These are the areas where shippers usually notice the change first:
- Less manual work. Tenders, confirmations and status updates stop living in people’s inboxes.
- Better shipment visibility. Your team, and your customers, can see where loads are without calling around.
- Faster freight settlement, because invoices are checked against freight orders and there are fewer disputes to sort out.
- Easier carrier onboarding. New carriers join the network instead of waiting for a custom EDI build.
- Cleaner records, with documents and PODs sitting next to the right shipment when auditors ask for them.
To show the difference, measure these before and after go-live:
- tender acceptance time
- share of shipments with milestone updates on time
- time from delivery to invoice approval
- number of freight invoice disputes per month
- hours spent each week following up with carriers
- time it takes to onboard a new carrier
How Much Does SAP TM and BN4L Integration Cost and How Long Does It Take?
Based on our projects, a typical SAP TM and BN4L integration takes around 8 to 14 weeks and usually falls somewhere between $40,000 and $120,000. Treat these as implementation estimates, not SAP license prices.
What moves the number up or down:
- how many carriers and forwarders you onboard, and how they connect (portal, EDI or API)
- your SAP TM setup, standalone or embedded in S/4HANA
- which scenarios you need, from tendering only to milestones, documents and invoicing
- data mapping, and how clean your carrier and freight master data is
- how much testing is needed and how many business units go live at once
- your settlement requirements and how far you want to automate them
Best Practices for a Smooth Integration
- Map your freight process first. Agree how tenders, updates, PODs and invoices should flow before anyone starts on the technical side.
- Bring your carriers in early. Talk to your main carriers well before go-live. Adoption is a lot easier when they know what’s coming.
- Start with a pilot. Pick one business unit, region or group of carriers, prove it works, then roll it out further.
- Get the master data right. Carrier IDs, locations and charge types need to match on both sides, or messages will fail.
- Capture events automatically where you can. GPS or telematics feeds give you better milestone data than manual updates.
- Keep an eye on the KPIs. Check tender response times, milestone quality and invoice disputes every month after go-live.
What About Security and Data Privacy?
BN4L is an SAP cloud service, so a good part of the security setup sits with SAP. On your side, the things to get right are how your SAP TM system connects to the network, how your users and carriers sign in, and who can see which data.
Data should be encrypted in transit, and partner access should use proper authentication, such as certificates or OAuth. Have your IT security team review the setup before go-live. If you need SAP’s own security and compliance details for an audit, SAP publishes them for its cloud services.
How SCM Champs Helps With SAP TM and BN4L Integration
SCM Champs works only on SAP supply chain and logistics, and SAP TM is one of our core areas. Our consultants are certified across SAP IBP, EWM, TM and MM, with more than 8 years of hands-on supply chain experience on average.
Start With a Freight Process Review
Before we touch any settings, we look at how tenders, carrier confirmations, milestones, PODs and invoices move through your transportation process today. Then we work out which steps should stay in SAP TM, which belong in BN4L, and where manual handoffs or integration gaps are causing delays.
Connect SAP TM and BN4L the Right Way
We set up the connection between your SAP TM system and the network, map the master data and configure the scenarios you need. That might be tendering only, or the full flow through to invoicing. We work with both standalone SAP TM and TM embedded in S/4HANA.
Onboard Your Carriers and Freight Forwarders
A network is only useful if your partners are on it. We help you plan carrier onboarding, decide who connects through the portal and who connects by EDI or API, and support your carriers through their first loads.
Track Shipments and Milestones in One Place
We set up milestone tracking so carrier updates land in SAP TM, where your planners already work. If you need wider visibility across partners, we can add SAP Global Track and Trace.
Automate Freight Settlement
We connect carrier invoices in BN4L to freight settlement in SAP TM, so invoices get checked against the freight order and agreed charges automatically instead of by hand.
Support From Go-Live Onward
We handle testing and go-live, and our team stays close while the first real loads go through. Every project includes 12 months of support after go-live, and our SAP managed services can cover you after that.
Our recent SAP TM work includes an SAP TM and EWM integration for Gutor Electronics in Houston, Texas, and leading an SAP TM 9.6 to S/4HANA migration for a US-based Fortune 500 food and beverage manufacturer.
Running SAP TM and still chasing carriers by email? Talk to our SAP TM team about a freight process review.
Frequently Asked Questions
Is SAP LBN the same as SAP Business Network for Logistics?
Yes. SAP Logistics Business Network (LBN) is the old name. SAP now calls it SAP Business Network for Logistics, and people often shorten it to BN4L.
How much does SAP TM and BN4L integration cost?
Based on our projects, a typical integration falls somewhere between $40,000 and $120,000. The final number depends on how many carriers you onboard, which scenarios are in scope and how your SAP TM is set up.
How long does SAP TM and BN4L integration take?
Most projects take around 8 to 14 weeks. Data readiness and how quickly your carriers get onboarded make the biggest difference.
Can non-SAP carriers connect to BN4L?
Yes. Carriers don’t need SAP. Smaller carriers can use the web portal, and larger ones can connect their own systems through EDI or APIs.
Do I need SAP BTP for this integration?
It depends on your landscape and the scenarios you use. The exact integration setup, including whether you need any extra SAP integration services, should be confirmed during the process review before the project starts.
Are there alternatives to SAP Business Network for Logistics?
Yes. There are other freight visibility and carrier collaboration platforms, and some of them connect to SAP as well. For SAP TM users, the main advantage of BN4L is that it’s SAP’s own network, built to work with SAP TM’s freight orders, tendering and settlement.
Final Word
If you already run SAP TM, connecting it to BN4L is one of the most practical ways to cut down the email and phone work around your carriers. Start by looking at where your freight process breaks down today, and build from there.
If you’d like help with that review, get in touch with SCM Champs.