The business environment has reached the edge of its performance. With the help of numerous tools and e-solutions, business management becomes more streamlined, and the logistics landscape becomes more developed. As a result, the customer’s satisfaction is enhanced, which increases the efficiency of the overall functioning.
Whether it is a big or small business, the success of its operation depends on the transportation organization. Considering the daily volumes of every freight, it is vital to implement a highly efficient system of control, helping to track and trace all the goods within the supply chain.
One such solution is SAP Transportation Management, or SAP TM, which could be implemented by an international company, SAP Gold Partner, LeverX. While SAP TM has already proven its beneficial impact on business performance, the developers took the whole experience to a new level, improving its impeccable performance with Artificial Intelligence (AI). Let’s explore what features offer SAP Transportation Management powered by Artificial intelligence.
Innovative AI Capabilities for the SAP TM
While the majority of business operations are automated, the supply chain and transport department still require improvements due to the usage of conventional manual tracking. One of the best tools is SAP TM, powered by AI capabilities, which takes the tracking system to a new level. Among numerous benefits, there are:
- Real-time updates on the location, movement, and condition of the cargo
- Improved functioning of Global Positioning System (GPS)
- Enhanced sensors
- Real-time data analytics.
SAP TM powered by AI offers a proactive approach for end-to-end product movement, helping to organize a transportation process, mitigate risks, and address issues instantly.
AI transportation routing
Transportation is one of the most complex parts of the whole manufacturing process. It requires constant route optimization, selection of a reliable carrier, and load planning. While SAP TM has already perfected these processes, AI helps to leverage every step performed within the supply chain. An ‘intelligent’ form of SAP TM improves the transportation algorithms by processing vast volumes of data like:
- History of transportation data
- Weather conditions
- Traffic patterns,
- Real-time insights
- Fuel costs
With such an approach, transportation gets on a new level of efficiency, as it will provide:
- Timely delivery
- Avoidance of congestion and delays
- Minimization of fuel expenditure
- Improved customer satisfaction
Efficient inventory management is integral to the transportation process; timely synchronization of both is vital. SAP TM powered by AI can mitigate the risks of misdelivery, help track the quality of the delivered goods, protect from refunds, avoid inventory excess, forecast the demand fluctuations accurately, etc. Overall, AI-powered SAP TM provides a streamlined functioning of the inventory and transportation verticals.
The four main types of transportation within the supply chain are road freight, sea freight, air freight, and rail freight. All these modes can perform successfully only if the transport is well-maintained. The AI-powered SAP TM helps to predict the breakdown by analyzing the data of vehicles, engine performance, mileage, and maintenance records. Such a readiness will optimize the delivery process, minimize the downtimes, and optimize vehicle usage.
Every business is like a living organism that functions 24/7, especially the transportation department. SAP TM real-time reports and insights help to address all the issues and, thus, avoid their detrimental impact on the whole process.
However, SAP solutions don’t stop here, as the transportation reports can be integrated with SAP Commerce Cloud (and other modules), presenting better insights into the efficiency of daily operations of the company.
AI-powered SAP helps improve the price-formation algorithms, considering variables like demand, capacity, market conditions, and fuel costs. When constantly analyzing this data, organizations can enhance revenue and maintain their competitiveness in the market.
AI SAP TM takes care of literally everything, including the drivers. The transportation management systems help to monitor the driver’s performance through sensors and devices installed in the vehicle. The behavior analysis includes speeding, harsh braking, average speed, and even idling. Such insights help to improve driver performance, reduce fuel expenditure, and lower the risks of road accidents.
SAP TM, together with artificial intelligence, maximizes the usage of capacity and, thus, provides better value for money spent on transportation. AI helps to analyze the characteristics of the cargo (its volume, weight, height, special requirements) and optimize its transportation mode.
Yet again, such an approach will reduce the empty miles, optimize the usage of space, and increase the efficiency of fuel usage, which benefits the overall functioning of the transportation system.
The Bottom Line
SAP TM implementation is a decisive step toward increasing business functionality. It enhances the global view of the transportation process and gives reports of all the minor activities performed within the transportation chain.
AI-powered SAP TM brings even more clarity into the transportation chain and upgrades the whole structure’s functionality. It is an efficient solution that works independently or can be integrated with other SAP tools to empower every business with control over their performance.