Over the past few months, we’ve been having more and more conversations with end-users around SAP Transportation Management (TM). Businesses are looking for ways to centralise their transportation planning and improve visibility across their supply chains. To explore what this powerful solution delivers in practice, we spoke to Alperen Genc, solution architect, and Stephen Hackett, Australian practice lead, about a recent go-live with Foodstuffs South Island Ltd., one of New Zealand’s leading grocery companies. Here’s what they had to say:
“Eight months ago, Foodstuffs South Island went live with a centralised SAP TM platform, deployed side-by-side with SAP EWM on S/4HANA. The objectives of this programme were ambitious:
- Centralise transportation planning and execution across the entire South Island.
- Integrate transportation planning and execution activities with warehouse operations running both SAP EWM and non-SAP WMS solutions.
- Improve visibility, automation and control over domestic inbound and outbound transport via Global Track and Trace.
“To meet these goals quickly, the team opted for a single all-encompassing transport go-live across all sites. From day one, the focus was on building a foundation that would meet immediate operational needs while creating a platform for continuous improvement.
“One of the most rewarding outcomes was seeing how advanced TM capabilities simplified complexity and automated routine tasks:
- Route optimisation was a major win. Over 90% of loads are now automatically planned, freeing planners to focus on exceptions rather than manual scheduling.
- Compartment planning ensures temperature-controlled loads comply with product integrity requirements.
- Carrier and route-specific height restrictions reduce last-minute adjustments.
- Multi-stop freight orders orchestrate movements across multiple warehouses and delivery points.
- Freight charge calculation and agreement management, including group logistics functionality, massively streamline financial processes.
“Tracking was critical piece. Integrating SAP Global Track & Trace with Microlise Proof of Delivery software fed real-time milestone updates back into TM, transforming operational control and customer service.
“Transportation doesn’t exist in isolation, so warehouse integration was a major focus from the start. TM now connects with both SAP Extended Warehouse Management (EWM) and the customer’s legacy WMS systems, maintaining a single transportation network during the phased EWM rollout. Packaging and loading plans from TM feed directly into EWM planned shipping handling units, replacing manual planning with system-driven loading structures. RF loading updates automatically flow back to TM at load completion, closing the loop between planning and execution.
“Today, Foodstuffs operates on a single, centralised transportation network with greater visibility and control over inbound and outbound flows and a foundation for future optimisation and innovation.
“The decision to go live across all sites simultaneously required confidence in the design, strong governance and clear alignment across all parties involved. But the payoff has been massive: a single platform for planning and execution, integrated with warehouse processes.
“Looking ahead, the business now has the tools to continuously optimise transportation performance, explore advanced analytics and adapt to changing market conditions without relying on manual workarounds. This is the kind of transformation that positions a business for long-term success.”
Looking to optimise transportation or supplier collaboration for your own operations? Get in touch with our SAP TM experts to explore what’s possible.