SAP for Logistics Industry - Kalkine Media

November 07, 2023 09:33 PM AEDT | By Eugene Craig (Guest)
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A modern approach to ordering and buying goods seems relatively simple — just a few simple clicks and the desired items are in the basket; just a few weeks/hours/days and everything is delivered. While the customer deals with the shortcut, the whole end-to-end chain is much bigger and involves a great deal of logistics management to provide and facilitate the timely movement of goods. Considering the vital role of logistics, businesses are exploring ways to maximize their efficiency and optimize the supply chain functionality.

What Is Logistics?

Logistics is an umbrella title for processes that regulate the flow of goods from the business to the customers, which includes procurement, warehousing, transportation, movement, and delivery. It is a critical component of supply chain performance, whose efficient performance creates and maintains the foundation for successful business functioning.

When the logistics are appropriately planned and executed, the customers are satisfied and willing to return to make other orders. Considering the load of responsibility carried on by the logistic chain, there is a need for equally efficient solutions to help organize the whole process, like SAP Enterprise Resource Planning (SAP ERP). It is a highly beneficial software solution that enhances and regulates all the processes within the logistics. The main advantage of SAP ERP solutions is their modular structure, where every module is used independently to reinforce the particular sector or the system as a whole.

As long as all businesses have different needs regarding their functioning, it is essential to choose the right SAP solutions to fulfill all the requirements. It is best to contact the leading SAP-implementing companies, like LeverX, which pride themselves on numerous successful projects, and ask for their professional advice and solutions.

SAP Software for Logistics

SAP software, implemented by LeverX, offers numerous solutions to support every part of logistics processes.

1.      SAP Transportation Management (SAP TM)

SAP Transportation Management offers a holistic approach to planning, executing, and managing all transportation-related activities. It is highly recommended to be used by shippers, carriers, freight forwarders, and 3PLs. SAP TM provides data resorts that help to accelerate timely decision-making and, thus, avoid complications in the freight lifecycle. 

2.      SAP Extended Warehouse Management (SAP EWM)

SAP EWM offers an advanced approach to managing all the activities within the warehouse. Apart from real-time visibility, it has specific features like yard and labor management, warehouse billing, wave management, material flow system, cross-docking, etc. SAP Warehouse management solution provides complete automation of the processes within the warehouse, mitigating the risks related to the movement of goods.

All the SAP solutions mentioned above will complement the functioning of a logistics system and provide an understandable overview of every stage of the supply chain, increasing overall business productivity.

3.      SAP Supply Chain Management (SAP SCM)

SAP SCM is a software solution that provides users access to demand and supply planning, transportation management, inventory optimization, and supply chain collaboration. It helps to establish end-to-end supply process visibility and coordination.

4.      SAP Logistic Execution (SAP LE)

SAP LE is one of the essential modules of SAP infrastructure that provides various tools to execute logistics processes like delivery processing, transportation planning and management, and warehouse management. Simply put, it covers all the significant points of movement of goods from a vendor or a warehouse to the final customer.

5.      SAP Event Management (SAP EM)

SAP EM is a critical solution that makes the supply chain a measurable variable. It is an on-premise tool that provides users with real-time monitoring of the supply chain events and notifies them when the actual events don’t align with the expected ones. It allows the users to be proactive, make timely decisions when addressing the issues, and avoid disruptions in the chain.

6.      SAP Global Track and Trace (SAP GTT)

SAP GTT is an effective tool to establish visibility into the shipments and delivery, such as end-to-end tracking. It is an on-cloud successor of SAP EM. It captures, processes, and stores tracking information, providing clients with real-time transparency of the operations.

What Are the Challenges When Implementing SAP Solutions?

SAP solutions are the treasure trove for every business, as due to the modular structure, they help to streamline and regulate all the processes of product life cycles. While all the benefits are apparent, there is one challenge to face — the choice. SAP is a cover-all system of solutions. However, it is essential to understand which ones are more suitable for your type and business style.

It's always suggested to ask for advice from time-proven SAP integrators, like LeverX, who recognize the business needs and can offer the best SAP practices for optimization. Cooperation might include consulting, implementation, user training, integration, and ongoing support.

The Bottom Line

Effective logistics management is an integral part of every business as it is the key to the customer's satisfaction and, thus, business functionality in the highly competitive industry. SAP solutions help to bring clarity into the supply chain, establish the visibility of the end-to-end process, improve the accuracy of product movements, and get timely reports about the performance.

When there is a need to improve the company's performance, yet there is no clear understanding of the solutions to use — contact LeverX assistance and entrust them with your future success.


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