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Freight cost management in SAP

Freight cost management with M.ShippingRates

Costs under control, processes flowing

Transportation involves not only logistical but also considerable financial expenditure. In many companies, however, actual freight costs are not subject to systematic control - estimates replace reliable figures, and manual checks are time-consuming and involve risks.

SAP-integrated freight cost management provides a remedy here: it enables end-to-end transparency and automated processes – from cost estimation prior to shipment to verification of incoming freight invoices.

Two core areas – one continuous process

Efficient freight cost management with M.ShippingRates is divided into two coordinated process steps:

01.

Automated freight cost calculation - before placing an order

 

Even before shipping, the expected costs for planned transport orders can be determined automatically. The solution thus supports informed decisions when selecting service providers, calculating costs, and awarding contracts. Shipment data from M.TransportCommunicator and Multi Carrier Sphere ensure that you receive accurate information about your freight rates.

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02.

Freight invoice verification – after execution

 

Analyze your freight volume across different transport service providers, e.g., by continent, country, postal code, and service combinations. This data serves as a solid basis for freight cost tenders and the evaluation of logistics service providers.

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Typical processes in freight cost management

Typical processes in freight cost management

  1. Freight cost information: The supplier first determines the expected freight costs for transporting the goods. Various factors such as list prices, in-house rates, surcharges, or flat rates are taken into account.
  2. Freight invoice from the transport service provider: The transport service provider invoices the supplier for the transport service provided.
  3. Credit note procedure: As an alternative to traditional invoicing, the credit note procedure can also be used: The supplier independently creates a credit note for the agreed transport costs and sends it to the transport service provider.
  4. Passing on freight costs to the recipient of the goods: Finally, the freight costs incurred are passed on to the recipient of the goods. This makes it possible to track which cost components are attributable to transport at any time.

Advantage: Integrating these processes with M.ShippingRates in SAP ensures a transparent, efficient, and audit-proof workflow. This enables companies to accurately record and check their transport costs and pass them on according to the principle of causation.

Advantages at a glance

✓ Full transparency of freight costs – from planning to billing
✓ Cost certainty through early calculation and automated verification mechanisms
✓ Process automation reduces manual tasks and speeds up workflows
✓ No additional infrastructure required – thanks to full integration into your existing SAP system
✓ Seamless SAP integration in SD, TM, LE, FI, and EWM
✓ Central control and analysis via SAP data and business reports

Solutions for:

SAP S/4HANA Cloud
Public Edition

SAP S/4HANA Cloud
Private Edition

SAP S/4HANA
On-Premise & SAP ERP

Seamless SAP integration
Full process integration

Modular Logistics Suite
Expand your SAP system as needed

Real-time data in SAP Efficieny, tranpareny and automation

Fully integrated in SAP

Determine the your negotiated freight costs directly within your SAP system. Subsequently, the standard SAP functionality is used for the freight cost billing. Relieve your department by eliminating the time-consuming and error-prone manual control of freight cost line items. The solution is used in dedicated versions for SAP ERP and SAP S/4HANA.

Freight cost optimization at Winkler+Dünnebier

Objective:

Calculate freight costs precisely in advance and automated invoice control

“We save six man-days a month. As a result, the investment in the add-on pays for itself within just eight months. We are very happy with it and I don't know of anything comparable at the moment."
Uwe Peine, Head of Logistics at Winkler+Dünnebier

 

We will be happy to advise you!
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