The 8.0 release of the SAP Transportation Management (SAP TM) application was unveiled in April, and the company said it significantly expands its scope of logistics and fulfillment management capabilities.
First customers include Abudawood, Artoni, Cargill, C.H. Guenther * Sons and Owens Corning.
The German software company said customers can use the software to improve customer service, reduce logistics costs and better manage complexity and compliance in moving global freight.
'This is a major supply chain management announcement for SAP and SAP manufacturing, retail and distribution customers,' said Dwight Klappich, an analyst at the Gartner Group. 'SAP has been working on a new transportation management solution for several years now, first beginning with SCM TM 6.0, then 7.0 and now 8.0. While it started what it calls ramp-up (earlier adopter program) with TM 6.0, there were some issues and SAP never went generally available with 6.0. The same happened with 7.0 when they also made a change in direction around the underlying technical architecture for TM.'
'TM 8.0 is now a viable transportation management offering that covers the core transportation functionality of planning, execution, settlement, track-and-trace and performance management.'
Klappich added, 'The market for TMS remains very competitive with several vendors offering strong TMS solutions. So while an important announcement, this a catch-up move for SAP. While SAP stumbled with previous TM releases this is a viable release and now makes SAP at least a contender.'
SAP said 'commercial transportation is becoming more complex for the worldwide networks of shippers and logistics service providers moving raw materials, parts and finished goods through global supply chains. SAP TM helps these companies efficiently, quickly and accurately orchestrate the movement of goods.'
SAP said further benefits of the application include automating transportation tendering, execution, tracking and settlement processes, as well as helping ensure compliance to international trade regulations and in handling hazardous material. Beyond economic gains, SAP said the software helps companies, people and processes run better across the transportation operations that account for 15 percent of global carbon dioxide emissions.
