{"id":2189,"date":"2026-09-07T13:13:19","date_gmt":"2026-09-07T13:13:19","guid":{"rendered":"https:\/\/www.scmchamps.com\/blog\/?p=2189"},"modified":"2026-09-07T13:13:19","modified_gmt":"2026-09-07T13:13:19","slug":"high-transportation-costs-fix-real-issues","status":"publish","type":"post","link":"https:\/\/www.scmchamps.com\/blog\/high-transportation-costs-fix-real-issues\/","title":{"rendered":"Our transportation costs are rising, but we don&#8217;t know why or what needs to be fixed."},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Transportation costs rarely increase because of one single decision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A carrier raises its rates. Fuel costs rise. A delivery network expands. Customer expectations become more demanding.<\/span><\/p>\n<p><b>In most organisations, the bigger problem isn&#8217;t that transportation has become more expensive. It&#8217;s that management can&#8217;t clearly see what is driving the increase or where to act first.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The transportation team knows freight spend is higher than last year. Finance knows the transportation budget is under pressure. Procurement is negotiating harder with carriers. Planners are working harder than ever.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And the overall picture is still unclear:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Which lanes are becoming expensive?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are vehicles being used efficiently?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How much are empty miles costing the business?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are planners making unnecessary changes because the planning process isn&#8217;t responsive enough?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are premium freight costs rising because transportation decisions are being made too late?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are carrier choices being driven by the right commercial and operational factors?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">And, most importantly, can<\/span><b> the organisation connect these operational decisions to actual transportation spend?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This is where SCM Champs work with companies, moving the conversation from &#8220;<\/span><b>transportation costs are too high<\/b><span style=\"font-weight: 400;\">&#8221; to &#8220;we know exactly what is driving the cost, and we know what needs to change.&#8221;<\/span><\/p>\n<h2><b>The Problem Is Bigger Than Freight Rates\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When transportation costs increase, the immediate reaction is often to look at carrier rates. But reducing transportation costs is rarely as simple as negotiating a lower one.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A lower rate on an inefficient transportation plan can still produce a higher total cost. A company may negotiate better carrier rates and keep sending vehicles out with low utilisation; the rate looks better, but the spend doesn&#8217;t. Another may hold a strong carrier contract and still lean on premium transportation because deliveries are planned too late; the rate isn&#8217;t the real problem \u2013 how transportation is planned, executed, changed and controlled is.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That&#8217;s why we don&#8217;t treat transportation cost improvement as a standalone procurement exercise. This is also where experienced <\/span><a href=\"https:\/\/www.scmchamps.com\/sap-modules\/sap-transportation-management\"><b>SAP TM consulting firms<\/b><\/a><span style=\"font-weight: 400;\"> can help connect technology decisions with actual transportation outcomes.\u00a0<\/span><\/p>\n<h2><b>SCM Champs start by finding where the cost is actually coming from<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the first challenges we address is visibility.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Management typically receives a transportation cost number. What they need is a transportation cost <\/span><i><span style=\"font-weight: 400;\">explanation<\/span><\/i><span style=\"font-weight: 400;\">. Knowing that spend increased 12% doesn&#8217;t tell a supply chain leader what to do about it.<\/span><\/p>\n<p><b>Questions that need answers:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Is the increase coming from higher freight rates or from higher volume?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the company using more expensive carriers than it needs to?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are routes longer than they need to be?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are vehicles leaving with unused capacity?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are shipments being split unnecessarily?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are late decisions creating premium freight?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are delivery changes triggering additional transportation movements?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are planners repeatedly replanning because the original plan wasn&#8217;t practical?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are execution exceptions creating additional cost?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Answering these requires more than a finance report \u2014 it requires visibility into the transportation planning and execution process.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is where our work with SAP Transportation Management (SAP TM) becomes important: we connect the operational side of transportation with the commercial side, so cost drivers become identifiable. A structured <\/span><b>SAP Transportation cost analysis<\/b><span style=\"font-weight: 400;\"> helps organisations move beyond a single freight-spend figure and understand the operational conditions behind it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead of one large spend number, the business gets the operational factors actually driving it, and a far more actionable conversation.<\/span><\/p>\n<h2><b>We focus on other aspects than visibility\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Visibility alone doesn&#8217;t reduce transportation cost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A dashboard can show that vehicle utilisation is low \u2014 it doesn&#8217;t improve utilisation.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A report can show a lane has a high cost \u2014 it doesn&#8217;t fix the lane.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A system can flag excessive mileage \u2014 it doesn&#8217;t produce a better plan.<\/span><\/li>\n<\/ul>\n<p><b>Our objective isn&#8217;t to give management more information. It&#8217;s to make that information actionable.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">That means we look at:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">SAP TM configuration<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transportation planning logic<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Constraints and master data<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Carrier strategy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Routing approach<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Integration points<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This is why companies often look beyond traditional <\/span><b>Transportation cost optimisation firms<\/b><span style=\"font-weight: 400;\"> when they need improvements that connect planning, configuration and execution rather than focusing only on cost reporting.\u00a0<\/span><\/p>\n<h2><b>We Examine the Transportation Planning Logic\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Transportation planning involves competing objectives:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The business wants lower freight costs<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operations wants reliable delivery<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer service wants their commitments protected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Warehouse teams want practical loading and dispatch schedules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Procurement wants transportation to stay within negotiated carrier agreements.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Finance wants the spend under control<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A plan that optimises for only one of these will create problems elsewhere:<\/span><\/p>\n<table>\n<thead>\n<tr>\n<th><b>If the plan is built to optimise for&#8230;<\/b><\/th>\n<th><b>It tends to create&#8230;<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Shortest distance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Poor vehicle utilisation<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Maximum consolidation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Delivery delays<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Fastest delivery<\/span><\/td>\n<td><span style=\"font-weight: 400;\">More premium transportation<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Lowest-cost carrier<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Operational reliability issues<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Transportation optimisation has to reflect the business&#8217;s actual priorities, not the most technically elegant model.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our role is to help companies translate those priorities into a transportation planning model that SAP TM can actually work with, reviewing the constraints, cost settings, planning parameters, resources, routes and delivery requirements that feed it.<\/span><\/p>\n<h2><b>SCM Champs Help Companies Address Low Vehicle Utilisation\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Vehicle utilisation is one of the simplest transportation metrics to understand and one of the easiest places for hidden costs to accumulate. A truck moving with significant unused capacity still generates a full transportation cost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The scale of this problem, industry-wide, is not small. In our experience, deadhead (empty) mileage can account for nearly one in every six miles driven, while average trucking operating costs can reach $2.336 per mile. While still consuming fuel, driver time, and equipment life.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether that capacity sits in a private fleet or is priced into a carrier&#8217;s rate, the business ultimately pays for it. When the pattern repeats across lanes, regions or customer groups, the financial impact adds up quickly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Improving utilisation isn&#8217;t as simple as telling planners to load more onto each vehicle. The system has to weigh:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shipment compatibility<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Capacity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delivery windows<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Routes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Resource availability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operational constraints<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We assess whether the transportation planning process is actually capturing available consolidation and capacity opportunities, and where it isn&#8217;t, we work on the planning configuration and business rules needed to close the gap, without compromising the requirements that matter. The goal is straightforward: <\/span><b>move more of the right freight, with the right transportation resource, at the right cost<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>We Help Reduce Unnecessary Mileage and Empty Movement\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Mileage is another area where cost grows quietly. A route can look operationally acceptable while still creating unnecessary travel.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Common causes:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Poor sequencing<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Disconnected shipment planning<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inefficient backhauls<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Weak consolidation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transportation decisions made independently rather than across the network<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">One inefficient movement on its own rarely looks significant. Thousands of similar movements do \u2014 which is especially true for organisations running complex transportation networks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That&#8217;s why our approach examines how the network is being planned rather than reviewing individual trips in isolation, assessing whether SAP TM is considering the relevant relationships, routes, resources, capacities and constraints across the whole network.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The goal is a planning environment where unnecessary movement gets identified and reduced systematically, turning cost optimisation from a manual planner exercise into a repeatable business process.<\/span><\/p>\n<h2><b>We Help Identify the Cost of Poor Planning Decisions<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Not every transportation cost problem comes from a bad route. Sometimes it comes from a late decision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What a late decision typically triggers:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Carrier availability becomes limited<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delivery options shrink<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consolidation opportunities disappear<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The business has to use a more expensive mode<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A shipment needs expedited movement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A planner has to build a last-minute workaround<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By the time the freight reaches the customer, the delivery commitment may be met at a much higher cost. This is why transportation cost management can&#8217;t be separated from planning discipline.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We help organisations identify where these late decisions are occurring and how SAP TM can support earlier, more structured planning, reducing the situations where the business is effectively paying extra because the transportation decision was made too late.<\/span><\/p>\n<h2><b>We Review Carrier Selection and Transportation Strategy\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Carrier selection has a direct impact on cost \u2014 but the lowest rate isn&#8217;t always the lowest total cost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A carrier with a competitive rate may have limited availability.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A carrier with a higher nominal rate may offer better coverage or reliability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A carrier may be the right fit only for certain lanes or shipment types.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The challenge is making these calls consistently, rather than relying on individual planner judgement.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We help organisations review how carriers and transportation resources are represented and used within their SAP TM processes to establish a more controlled, repeatable approach to carrier selection \u2014 one that reflects the commercial and operational requirements of the business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is especially valuable for organisations running multiple carriers, regions, transportation modes or operating entities, where consistency is what improves both control and scalability.<\/span><\/p>\n<h2><b>We Address the Master Data Behind the Cost Problem\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Sometimes transportation planning looks like the problem when the real issue is the data feeding it. We regularly find:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Incorrect locations<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Outdated transportation lanes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incorrect resource capacities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Missing calendars<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incorrect transportation zones<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incomplete carrier information<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incorrect lead times<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Poorly maintained rates<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Small data problems produce poor transportation decisions \u2014 and repeated across hundreds or thousands of shipments, they become a financial problem.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is why <\/span><b>SCM Champs&#8217; assessment <\/b><span style=\"font-weight: 400;\">doesn&#8217;t stop at process design. We look at the master data and configuration SAP TM depends on to confirm the planning engine is working from information that actually represents the operating environment. A transportation optimisation model can only be as good as the information and business rules behind it.<\/span><\/p>\n<h2><b>We Connect Transportation Planning With the Broader SAP Landscape\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Transportation doesn&#8217;t operate in isolation:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Orders originate in enterprise processes.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deliveries depend on warehouse and inventory activity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transportation planning depends on accurate logistics data.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Execution creates events that can require transportation changes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Freight settlement eventually hits the financial side of the business.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">When these processes are poorly connected, transportation teams compensate with spreadsheets, manual checks, emails, and repeated system updates \u2014 which creates more than administrative work:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A plan built on outdated or incomplete information leads to unnecessary movement.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A delayed update misses a consolidation opportunity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A disconnected execution process results in expensive corrective transportation.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">SCM Champs&#8217; role includes examining these integration points and identifying where the SAP landscape is preventing transportation teams from making timely, informed decisions.<\/span><\/p>\n<h2><b>We Turn Transportation Data Into Management Decisions<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">For senior management, transportation data needs to answer the business questions, not system questions:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Why is transportation spends are increasing?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which areas are responsible for the increase?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which transportation decisions are creating unnecessary costs?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Where are we paying for low utilisation?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Where are we using premium transportation?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which lanes require intervention?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which carriers are creating commercial or operational issues?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What should we fix first?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This is the SAP TM environment and reporting approach <a href=\"https:\/\/finance.yahoo.com\/small-business\/articles\/scm-champs-inc-earns-sap-131500041.html?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAACs5-4YXfHWBJb8Lxjm3LnXcuTzMO08tYaBzJCXI2koq5qfqg7eljj2KT3TVyuhkx6ybsl8Lw9A2PXyz5a6IbAMyqynm-nFxFzQhQlXbuZGL3sm_FMQyFc29hI_zxPAT1XIPXWyfXq7gqFrP5ztrrhLIFqO8iAjz41aFJyq3yXt\" target=\"_blank\" rel=\"noopener\"><strong>SCM Champs<\/strong><\/a> helps build, so transportation leaders can answer these questions with confidence \u2014 moving from retrospective reporting toward operational control.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead of discovering at month-end that transportation spend increased, the organisation should be able to see the operational conditions contributing to it and act earlier.<\/span><\/p>\n<h2><b>We Help Prioritise the Fix\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Not every transportation issue deserves the same attention, and trying to fix everything at once just creates a different problem. In practice, that usually looks like one of a few patterns:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A small number of high-volume lanes account for a disproportionate share of excess cost.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Poor vehicle utilisation turns out to be the primary issue.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Premium freight is climbing because planning decisions are made too late.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inefficient routing is affecting a large part of the network.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The right fix is driven by the underlying cost structure of the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We help identify the highest-value opportunities and focus SAP TM improvements where they produce the most meaningful operational and financial impact.<\/span><\/p>\n<h2><b>The Goal Is Better Control, Not Just Lower Cost\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Cost reduction shouldn&#8217;t come at the expense of the operation. A strategy that cuts costs but creates late deliveries isn&#8217;t a successful strategy. Neither is one that improves utilisation but makes planning too complex for planners to use consistently.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">SCM Champs&#8217; approach is built on balance \u2014 transportation processes that weigh:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cost<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Service<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Capacity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Route feasibility<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Carrier availability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delivery requirements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operational practicality<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Every transportation decision involves trade-offs. The technology&#8217;s role isn&#8217;t to eliminate them; it&#8217;s to make them visible and manageable.<\/span><\/p>\n<h2><b>What Our Role Looks Like\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When SCM Champs engages with a company facing rising transportation costs, we don&#8217;t start by assuming the answer is another optimisation setting. We start by understanding the business problem:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Where is transportation spend increasing, and what has changed?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How is transportation currently planned?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What data is being used, and what constraints matter?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Where are planners making manual decisions, and where are exceptions created?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How are carriers selected, and how are actual costs measured?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How does transportation connect with the wider SAP environment?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">From there, we can find where the real gaps are. Depending on the business, that may involve:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">SAP TM configuration<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Planning strategy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Master data<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Integration<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Optimisation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transportation process redesign<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Often, it&#8217;s a combination. Our role is to bring these elements together into one practical improvement programme, rather than treating each issue as a separate technology problem.<\/span><\/p>\n<h2><b>From Transportation Spend to Transportation Control\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Increasing transportation costs are often treated as an unavoidable cost of doing business. They shouldn&#8217;t be.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some cost increases are market-driven and genuinely unavoidable. Others are created by how the transportation network is planned and managed. The challenge for management is knowing the difference and that requires visibility. But visibility alone isn&#8217;t enough. The business needs the ability to act.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20260627456050\/en\/SCM-Champs-Inc.-Earns-SAP-Partner-Recognition-Strengthening-End-to-End-Supply-Chain-Services\" target=\"_blank\" rel=\"noopener\"><strong>SCM Champs<\/strong><\/a> role as a certified SAP partner is to help make that happen:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Working with companies to identify where transportation costs are being created<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine what&#8217;s driving them\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Configure the transportation environment around the operational and commercial realities of the business.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Because the objective was never another transportation report. It&#8217;s a clear, consistent answer to three questions:<\/span><\/p>\n<p><b>Where is the money going? Why is it going there? What should we change?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If transportation spend is climbing in your organisation, and you don&#8217;t yet have a clear answer for what&#8217;s driving it, that&#8217;s exactly where we start. Our Free Transportation Assessment reviews your SAP TM planning, data and execution process to show you precisely where the cost is coming from &amp; what to fix first.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Transportation costs rarely increase because of one single decision. A carrier raises its rates. Fuel&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[7,364],"class_list":["post-2189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sap-tm","tag-sap-tm","tag-transportation-cost"],"_links":{"self":[{"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/posts\/2189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/comments?post=2189"}],"version-history":[{"count":1,"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/posts\/2189\/revisions"}],"predecessor-version":[{"id":2191,"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/posts\/2189\/revisions\/2191"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/media\/2190"}],"wp:attachment":[{"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/media?parent=2189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/categories?post=2189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scmchamps.com\/blog\/wp-json\/wp\/v2\/tags?post=2189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}