SAP TM, or Transportation Management, is SAP's solution for planning, executing, and settling the movement of goods. It handles freight order management, transportation planning and optimization, carrier selection, tendering, and freight cost calculation and settlement. It is available embedded in S/4HANA or as a standalone system for complex logistics networks.
SAP Transportation Management (TM) supports the end-to-end management of freight and logistics. It covers order and forwarding management, transportation planning and optimization, carrier selection and tendering, execution and tracking, and freight settlement. Shippers and logistics service providers use it to plan efficient loads and routes, choose carriers, and control transportation costs across road, rail, ocean, and air.
The planning and optimization engine helps consolidate shipments, build efficient routes, and respect constraints such as capacity, time windows, and cost. TM integrates closely with order fulfillment and warehouse processes, so transportation demand originating from sales or deliveries can flow through to execution, and it connects to external carriers and networks for tendering, visibility, and electronic communication.
Like EWM, SAP TM can be deployed as embedded TM within S/4HANA or as a standalone instance for larger or more complex logistics operations. The choice affects landscape design, integration, and performance. Setting up these systems, connecting them to the ERP and to carrier interfaces, and testing the integrated flows are technical tasks central to a dependable transportation implementation.
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Last updated: 2026-07-17. Basis Admin is an independent SAP consultancy and is not affiliated with SAP SE.