Master Guide SAP® Transportation Management 8.1

Master GuideSAP® Transportation Management 8.1Powered by SAP NetWeaver®

Target Audience ■ Technical Consultants

■ System Administrators

PUBLICDocument version: 1.3 – 2012-03-30

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Document History

CAUTION

Before you start the implementation, make sure you have the latest version of

this document. You can find the latest version on SAP Service Marketplace

http://service.sap.com/instguides.

SAP has recently changed some of the naming of SAP products. Note that the old

names are still in use and therefore the following product names are synonymous:

New Name Old Name

SAP ERP 6.0 SAP ERP 2005

SAP NetWeaver BI(Business Intelligence)

SAP BW, SAP BI

SAP NetWeaver Exchange Infrastructure (SAP NetWeaver XI)

SAP Exchange Infrastructure (SAP XI)

The following table provides an overview of the most important document changes:

Version Date Description

1.0 2011-10-10 Initial version

1.1 2011-11-25 Update to textual links to SAP Help Portal

1.2 2012-01-13 “Solution-Wide Topics” section extended

1.3 2012-03-30 Formal revision for general availability

2012-03-30 PUBLIC 5/52


Table of Contents

Chapter 1 Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1.1 About this Document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1.2 Related Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.3 SAP Solution Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

1.4 Important SAP Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Chapter 2 SAP Transportation Management Overview . . . . . . . . . . . . . . . 13

2.1 Introduction to SAP Transportation Management . . . . . . . . . . . . . 13

2.2 Software Components of SAP Transportation

Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2.3 Software Component Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2.4 System Landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2.5 Overall Implementation Sequence . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Chapter 3 Business Processes of SAP Transportation

Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3.1 TM: Managing Transportation Requirements . . . . . . . . . . . . . . . . . 21

3.2 TM: Managing Forwarding Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.3 TM: Managing Bookings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3.4 TM: Managing Freight Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.5 TM: Planning Freight and Selecting Carriers . . . . . . . . . . . . . . . . . . 25

3.6 TM: Tendering Freight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

3.7 TM: Executing and Monitoring Freight . . . . . . . . . . . . . . . . . . . . . . . 27

3.8 TM: Settling Freight Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

3.9 TM: Settling Forwarding Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

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Chapter 4 Business Scenarios of SAP Transportation

Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

4.1 International Outbound Transportation (Travel & Logistics

Services) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

4.2 Outsourced Transportation (Mill Products) . . . . . . . . . . . . . . . . . . . 33

4.3 International Inbound Logistics (Chemicals) . . . . . . . . . . . . . . . . . . 35

4.4 Domestic Inbound Transportation (Automotive) . . . . . . . . . . . . . . 37

4.5 Domestic Outbound Transportation (Food) . . . . . . . . . . . . . . . . . . . 39

4.6 LCL Ocean Freight (Travel & Logistics Services) . . . . . . . . . . . . . . . . 41

Chapter 5 Solution-Wide Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

5.1 Service-Oriented Architecture (SOA) . . . . . . . . . . . . . . . . . . . . . . . . . 45

5.1.1 Service Enablement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

5.1.2 Installation of the Service-Oriented Architecture

(SOA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

5.1.3 Related Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

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both sides.

1 Getting Started

1.1 About this Document

This Master Guide provides an overview of SAP Transportation Management 8.1 (SAP

TM 8.1), its software units (components), and its scenarios from a technical

perspective. The Master Guide is a planning tool that helps you to design your SAP

TM 8.1 system landscape. It refers you to the required detailed documentation,

namely:

■ Installation guides for single software units (components)

■ SAP Notes

■ Configuration documentation

■ SAP Library documentation

This Master Guide provides information about the components and guides that are

required during the implementation of SAP TM 8.1. The Master Guide comprises the

following sections:

■ Getting Started [page 9]

This section contains valuable information about using this document and

related information crucial to the installation.

■ SAP Transportation Management Overview [page 13]

This section provides an overview of a possible system landscape and overall

installation information.

■ Business Processes of SAP Transportation Management [page 21]

This section contains the following information for each business process:

● A short overview of the business process

● Minimal system landscape

● A software component matrix for each business process, which provides

information about the software units (components) that the business

1 Getting Started

1.1 About this Document

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process uses and whether the corresponding software unit (component) is

mandatory or optional

● References to further information about the business process

■ Business Scenarios of SAP Transportation Management [page 31]

This section contains descriptions of some predesigned business scenarios that

can help you to implement SAP TM.

■ Solution-Wide Topics [page 45]

NOTE

For information about the technical implementation of SAP TM 8.1 and the latest

installation and configuration guides, see SAP Service Marketplace at http://

service.sap.com/instguides.

We strongly recommend that you use the documents available here. The guides

are regularly updated.

Constraints

The business processes and scenarios that are described here serve as examples of how

you can use SAP software in your company. They are intended only as models and

may not run exactly as described in your system landscape. Make sure that you check

your requirements and systems to determine whether the processes and scenarios

can be used productively at your site. We also recommend that you test the processes

and scenarios thoroughly in your test systems to ensure they are complete and free

of errors before going live.

1.2 Related Information

Related Documentation

The following table contains links to crucial information for implementing this

solution:

List of Related Documentation

Content Location

Information about technical and release planning issues on SAP components

http://service.sap.com/pam

1 Getting Started

1.2 Related Information

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Content Location

Information about the latest version of installation and upgrade guides for SAP components


Information about SAP Notes http://service.sap.com/notes

Information about released platforms http://service.sap.com/platforms

Information about sizing and calculation of hardware requirements (such as CPU, disk, and memory resource) with the Quick Sizer tool

http://service.sap.com/sizing

Information about network security – SAP Security Guides

http://service.sap.com/securityguide

Information about network integration http://service.sap.com/securityguide

Information about high availability http://service.sap.com/ha

Information about creating error messages http://service.sap.com/message

Information about performance http://service.sap.com/performance

Information about the installation of SAP NetWeaver

http://service.sap.com/instguidesnw

Documentation on SAP Help Portal http://help.sap.com

Related Master Guides

This Master Guide is based on Component Master Guides for cross-industry solutions.

You can find more information about the relevant solutions in the following

documents:

List of Related Master Guides

Title Location

SAP NetWeaver 7.0 Master Guide

http://service.sap.com/installnw70

SAP ERP 6.0 Master Guide http://service.sap.com/instguides SAP Business Suite Applications SAP ERP SAP ERP 6.0 Planning

1.3 SAP Solution Manager

We strongly recommend the SAP Solution Manager platform to efficiently support

the implementation of your solution. Using SAP Solution Manager significantly

accelerates the implementation process and helps you to achieve your business goals.

At the same time, SAP can deliver Support Services based on the business scenarios

1 Getting Started

1.3 SAP Solution Manager

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http://service.sap.com/notes

http://service.sap.com/platforms

http://service.sap.com/sizing



http://service.sap.com/ha

http://service.sap.com/message

http://service.sap.com/performance

http://service.sap.com/instguidesnw

http://help.sap.com



designed and documented in SAP Solution Manager. Implementation content for

your solution may further accelerate the implementation process.

For information about the availability of content specifically tailored to your solution,

see SAP Service Marketplace at http://service.sap.com/solutionmanager.

1.4 Important SAP Notes

You must read the following SAP Notes before you start the installation. These SAP

Notes contain the most recent information about the installation, as well as

corrections to the installation documentation.

Make sure that you have the up-to-date version of each SAP Note, which you can

find on SAP Service Marketplace at http://service.sap.com/notes.

SAP Note Number Title

1583035 Installing SAPTM 101 on NetWeaver 7.0 EHP2

1539745 Release Strategy for the ABAP Add-On SAPTM

1625213 SAP TM 8.1 (RTC) – Collection of Notes

1626821 Release Restrictions of SAP Transportation Management 8.1

1320498 Installation/Upgrade SCM_BASIS 701

1320496 Installing SCMBPLUS 701

1559307 Importing SCM Optimizer Version 7.03

900000 NetWeaver Business Client – FAQ

1320497 Installation/Upgrade SCEMSRV 701

1224284 Enterprise Services, Installing and Accessing the SOA DocumentationThis SAP Note lists the business-related grouping of Enterprise Services.

1515223 SAP NetWeaver Process Integration: Release RecommendationThis SAP Note sets out our recommendation on which release of SAP NetWeaver PI you should use.

1529649 Factory Calendar Expires 2010

1539170 Required Notes for SAP Visual Business 1.1 SP01

1572438 TM 8.0 Assignment of BoM to ISO Code Missing

1388258 Version Interoperability within the SAP Business Suite

1573180 AEX Enablement for SAP Business Suite

1 Getting Started

1.4 Important SAP Notes

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http://service.sap.com/solutionmanager

http://service.sap.com/notes

















2 SAP Transportation Management Overview

2.1 Introduction to SAP Transportation Management

Transportation costs have become an important factor in our economy. This is caused

by increasing fuel costs and the highly increased demand to move goods within a

more and more globalized business environment. Furthermore, the transportation

market is highly competitive, which tends to lead to low margins in this sector.

To operate private fleets efficiently, regardless of whether you are a manufacturer,

retailer, or logistics service provider, you need to be able to plan your transportation

needs in an efficient way. SAP Transportation Management allows you to:

■ Determine the most efficient transportation plan, while fulfilling the given

constraints (such as service level agreements, costs, and resource availability)

■ Identify cost-saving opportunities (such as consolidation possibilities and the

choice of the best means of transport)

■ Maximize the utilization of existing resources (such as using your own fleet)

■ React to execution events and solve possible conflicts with the initial plan

This Master Guide provides a central starting point for the technical implementation

of the following business processes of SAP Transportation Management:

■ TM: Executing and Monitoring Freight [page 27]

■ TM: Managing Transportation Requirements [page 21]

■ TM: Managing Forwarding Orders [page 22]

■ TM: Managing Bookings [page 23]

■ TM: Managing Freight Orders [page 24]

■ TM: Planning Freight and Selecting Carriers [page 25]

■ TM: Tendering Freight [page 26]


2.1 Introduction to SAP Transportation Management

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■ TM: Settling Freight Orders [page 28]

■ TM: Settling Forwarding Orders [page 28]

This Master Guide also provides an overview of the following transportation

scenarios:

■ International Outbound Transportation (Travel & Logistics Services) [page 31]

■ Outsourced Transportation (Mill Products) [page 33]

■ International Inbound Logistics (Chemicals) [page 35]

■ Domestic Outbound Transportation (Food) [page 39]

■ Domestic Inbound Transportation (Automotive) [page 37]

■ Less than Container Load (LCL) Ocean Freight (Travel & Logistics Services) [page 41]

NOTE

The central starting point for the technical upgrade of your SAP application is

the Upgrade Master Guide, which you can find on SAP Service Marketplace at

http://service.sap.com/instguides.

2.2 Software Components of SAP Transportation Management

This section provides an overview of the most important software components in

SAP Transportation Management.

TM Server

The TM Server hosts the basic functionality of SAP Transportation Management. It

is based on SAP enhancement package 2 for SAP NetWeaver 7.0 and contains the

software component versions SAPTM 1.01, SAP SCM BASIS 7.01, and SAP Business

Suite Foundation 702.

SAP SCM Optimizer

SAP SCM Optimizer 7.03, as used by SAP Transportation Management, contains two

optimizers dedicated to vehicle scheduling and routing (VSR) and carrier selection

(CS). The optimizers take into account various constraints and are guided by global

objective functions based on key performance indicators. In the case of highly

complex scenarios, the optimization results improve with increasing CPU time.



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Content Components

The following content component versions are also part of SAP Transportation

Management:

■ XI Content: XI Content SAP TM IC 1.01; XI CONTENT SAPTM 1.01; XI

CONTENT SAPGLOBAL 2.0; XI CONTENT SCM BASIS 7.01; and XI CONTENT

SCM_BASIS IC 7.01.

NOTE

For additional content (for example, ESR Content and BI Content), see SAP

Service Marketplace at http://service.sap.com/swdc Support Packages and

Patches Browse our Download Catalog SAP Content . or Installation and Upgrades

Browse our Download Catalog SAP Content .

NOTE

As of SAP NetWeaver 7.0 BI Content Add-On 5 SP02, new business intelligence

(BI) content is available for SAP TM 8.0, the predecessor of SAP TM 8.1. This is

because the new architecture, as of SAP TM 8.0, meant that the BI Content was

completely redeveloped. It now provides an information model, several detailed

reporting scenarios for BI Content, and an Xcelsius dashboard. This enables you

to use the BI reporting and analytic tools to evaluate, analyze, and interpret your

business data. Analyzing transportation and logistics information on a strategic

level is a critical requirement for easily summarizing and reporting the vast

amounts of data. The main areas of reporting that fit seamlessly together are the

following:

■ Costs (based on freight settlement documents)

■ Revenues (based on forwarding settlement documents)

■ Volumes and weights (based on freight requests and freight orders).

Costs and revenues, as well as transported weights and volumes segmented by

regional aspects are critical issues. With the new BI Content for SAP TM 8.0, you

can now analyze and generate reports on costs, revenues, and all the other

variables mentioned above. Additional main drill-down possibilities by business

partners such as shipper, carrier and consignee, and time are also provided in this

release.



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http://service.sap.com/swdc

2.3 Software Component Matrix

This section provides an overview of which business scenario uses which software unit

(component).

For the latest component version and patch level requirements, see the SAP Support

Package page on SAP Service Marketplace at http://service.sap.com/sp-stacks.

NOTE

There are software requirements for each of the following components that are

not explicitly mentioned in this document. These requirements are documented

in the associated installation guides.

NOTE

This Master Guide provides just one method of implementing each business

scenario. For alternative methods, see the Scenario & Process Component List on

SAP Service Marketplace at http://service.sap.com/scl. The Scenario &

Process Component List helps you to find realization alternatives for SAP

solutions, business scenarios, and processes. It shows you which application

components are needed to realize a business scenario or process.

Software Component Matrix Components

SAP TM Business Processes

SAP TM 1.01

SAP ERP 6.0 EHP4** (SP10 and Higher)


SAP Event Management 7.0 Incl. EHP 1 (SP03 and Higher)

SAP SCM Basis 7.01 (SP03 and Higher)

SAP SCM Optimizer 7.03

SAP Business Suite Foundation 7.02

TM: Managing Transportation Requirements

X X* X (X) X (X) X

TM: Managing Forwarding Orders

X (X) (X) (X) X X X



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http://service.sap.com/sp-stacks

http://service.sap.com/scl

SAP TM Business Processes

SAP TM 1.01



SAP Event Management 7.0 Incl. EHP 1 (SP03 and Higher)

SAP SCM Basis 7.01 (SP03 and Higher)

SAP SCM Optimizer 7.03

SAP Business Suite Foundation 7.02

TM: Managing Bookings

X (X) (X) X X X X

TM: Managing Freight Orders

X (X) (X) X X X X

TM: Planning Freight and Selecting Carriers

X (X) (X) X X X X

TM: Tendering Freight

X - - - X - X

TM: Executing and Monitoring Freight

X (X) (X) X X X X

TM: Settling Freight Orders

X X X (X) X X X

TM: Settling Forwarding Orders

X X X (X) X X X

* Sales Order Scheduling integration is not available with SAP ERP 6.0 Incl. EHP 4 (SP10).** For more information about SAP ERP 6.0 enhancement packages, see http://service.sap.com/pam (search for “EHP for SAP ERP 6.0”).

Key: X = mandatory; (X) = optional; – not part of the business process



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2.4 System Landscape

CAUTION

Use a minimal system landscape for test and demo purposes only. For

performance, scalability, high availability, and security reasons, do not use a

minimal system landscape as your production landscape.

The following figure provides an overview of a possible system landscape for SAP TM

8.1.

Figure 1: Possible System Landscape

We do not recommend installing all components on one host. You should distribute

the components among several hosts, as shown in the diagram above. This diagram

provides just one example; there are several ways to distribute the components. The

distribution depends on many factors, such as sizing, security, available hardware,

and so on. In practice, any distribution of components among hosts is possible.

NOTE

SAP Visual Business is a user interface for visualizing data from various sources

in interactive geographical or three-dimensional applications. In SAP TM 8.1, SAP

Visual Business is used to visualize SAP TM data on geographical maps and provide

interaction functions (such as planning transport). This provides a seamless



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integration of maps into the user interface of SAP TM 8.1. You must install a

front-end client before you can use SAP Visual Business. For more information

about SAP Visual Business, see the corresponding Installation and Configuration

Guide on SAP Service Marketplace at http://service.sap.com/instguides.

Additional Information Regarding Printing

If you want to print documents such as bills of lading, you require Adobe Document

Services (ADS). For more information, see Configuration of Adobe Document Services for Print

Applications in SAP Library for SAP NetWeaver on SAP Help Portal at http://

help.sap.com/nw.

Additional Information Regarding Enterprise Services

Enterprise services are shipped with SAP TM 8.1. There is one technical scenario for

enterprise services:

■ Using asynchronous enterprise services (TM services): To run asynchronous

enterprise services, you must install SAP NetWeaver Exchange Infrastructure

(SAP NetWeaver XI).

NOTE

SAP SNC services run with an SAP ERP system for message exchange.

For more information about the installation of SAP NetWeaver, see the Master Guide

for SAP NetWeaver 7.0 including enhancement package 2 on SAP Service Marketplace

at http://service.sap.com/instguides. For more information about the required

releases and Support Packages, see the respective sections about the business processes

for SAP Transportation Management.

Setting Up the Documentation Infrastructure for Enterprise Services

SAP TM 8.1 enterprise services documentation is to be run with SAP Solution

Composer, which is part of SAP Solution Manager. For more information about how

to set up the documentation infrastructure for enterprise services, see SAP Note

1224284 (Enterprise Services, Installing and Accessing the SOA Docu).



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http://help.sap.com/nw




2.5 Overall Implementation Sequence

CAUTION

Before you start the installation, you must know which components and releases

are required for the business processes you want to use. We do not recommend

installing all components. Only install those components that are required for

the business processes you want to use.

For more information about the required components, see the software component

matrix [page 16] for each business process.

The following table describes the overall installation sequence for SAP TM 8.1:

ProcessTM Host

Step Action/Required Documentation Remarks/Subsequent Steps

1 Installation of SAP NetWeaver 7.0 including enhancement package 2 – Installation Guide

For more information, see http://service.sap.com/installnw70 or http://service.sap.com/

instguidesnw70.

2 Installation of SAP TM 1.01 SP00 and higher – installation notes

For more information, see SAP Note 1583035

SCM Optimizer Host

Step Action/Required Documentation Remarks/Subsequent Steps

1 Installation of SAP SCM Optimizer 7.03 – Installation Guide

For more information, see installation note 1559307 Importing SCM Optimizer Version 703.


2.5 Overall Implementation Sequence

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http://service.sap.com/instguidesnw70

http://service.sap.com/instguidesnw70



3 Business Processes of SAP Transportation Management

3.1 TM: Managing Transportation Requirements

Overview

This process enables companies to tightly integrate their SAP ERP system and their

transportation planning and execution system. The process supports shippers by

transferring order information from SAP ERP to SAP TM, thus providing the planning

system with transportation requirements at a very early stage. This enables

transportation planning to take advantage of longer planning horizons, which leads

to better results in the optimization process and greater flexibility in the decisions

that need to be taken during transportation planning.

The SAP ERP system creates different types of orders, such as sales orders, purchase

orders, and stock transport orders, as well as the corresponding returns orders for all

of these order types. The SAP TM system captures the orders as order-based

transportation requirements (OTRs), on the basis of which it creates freight units.

The freight units are used as the input for planning and optimization in SAP TM.

The planning results in SAP TM form the basis of delivery creation in SAP ERP. SAP

TM can trigger the creation of the following deliveries:

■ Outbound deliveries for sales orders, stock transport orders, returns stock

transport orders, and returns purchase orders

■ Returns deliveries for sales order returns

■ Inbound deliveries for purchase orders

The deliveries are scheduled according to the planning results in SAP TM, thus

enabling further execution to be synchronized with transportation planning.

The basic process steps (that is, transferring an order from SAP ERP to SAP TM and

creating one or more deliveries for the order) can be combined in the following ways:


3.1 TM: Managing Transportation Requirements

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■ Order integration and delivery integration; SAP ERP triggers the creation of the

deliveries

■ Order integration and delivery integration; SAP TM triggers the creation of the

deliveries

■ Delivery integration without order integration; SAP ERP triggers the creation of

the deliveries

■ Order integration without delivery integration; SAP ERP triggers the creation of

the deliveries

NOTE

In the process description, “order” refers to a sales order, purchase order, stock

transport order, or returns order. “Delivery” refers to an outbound delivery,

returns delivery, or inbound delivery.

Further Information

The following documents provide more information about this process:

Content Location

Process description The process description is part of SAP Solution Manager implementation content ST-ICO 150_700 SP32. For more information about SAP Solution Manager, see http://service.sap.com/solutionmanager.

Configuration documentation The configuration documentation is part of SAP Solution Manager implementation content ST-ICO 150_700 SP32. For more information about SAP Solution Manager, see http://service.sap.com/solutionmanager.

3.2 TM: Managing Forwarding Orders

Overview

You can use this business process to create and edit a forwarding order in SAP TM.

This is an order given by a customer to a logistics service provider (LSP). Based on the


3.2 TM: Managing Forwarding Orders

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forwarding order, transportation activities are planned and executed. The forwarding

order is also used for the customer settlement process.

In addition, you can use a forwarding quotation to send an offer to your ordering

party. After the ordering party has accepted the quotation, it can be used to create a

forwarding order.

Further Information


Content Location



3.3 TM: Managing Bookings

Overview

You can use this business process to create, change, and update bookings. In the

booking process steps, you check transportation demands and assign them to

bookings, which may already exist or which you are going to create. Further steps

include triggering deliveries, sending and receiving confirmations from the carriers,

and archiving completed bookings.

NOTE

This business process is often carried out by the transportation planner.

Further Information



3.3 TM: Managing Bookings

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Content Location



3.4 TM: Managing Freight Orders

Overview

You can use this business process to create, change, and update freight orders. In the

freight order process steps, you check transportation demands and assign them to

freight orders, which may already exist or which you are going to create. Further

steps include triggering deliveries, sending and receiving confirmations from the

carriers, and archiving completed freight orders.

NOTE

This business process is often carried out by the transportation planner.

Further Information


Content Location


Configuration documentation The configuration documentation is part of SAP Solution Manager implementation content ST-ICO 150_700 SP32. For more information about SAP Solution Manager,


3.4 TM: Managing Freight Orders

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Content Locationsee http://service.sap.com/solutionmanager.

3.5 TM: Planning Freight and Selecting Carriers

Overview

You can use this business process to create and execute the business objects that are

required to drive the transportation execution process, thus enabling margin

maximization.

Freight orders are created on the basis of a forwarding order maintained in SAP TM.

SAP TM offers multiple tools that you can use to create and manage the planning

processes, such as best-in-class optimization, dynamic routing and scheduling, and

continuous move optimization. To create the freight orders, the system uses the

transportation charges and freight agreements, considering resources, equipment,

and carrier availability at the same time.

Further Information


Content Location




3.5 TM: Planning Freight and Selecting Carriers

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3.6 TM: Tendering Freight

Overview

You can use this business process to send freight requests for quotation (freight RFQs)

to carriers. Carriers can accept or decline these freight RFQs and change data such as

the price when returning freight quotations. You can then automatically accept the

tender and send the freight order back to the awarded carrier. The tendering process

starts if you or the system determines more than one possible carrier. The process

can use a mixture of different modes of tendering (peer-to-peer or broadcast

tendering). You can also define a time-out in the system so that it will either tender

the transportation activity to another carrier or switch from one tendering type to

the next. The tendering process results in one carrier being selected to execute the

freight order.

To run this process, you must also implement the relevant settings for mail

processing. For more information, see SAP Library for SAP NetWeaver on SAP Help

Portal at http://help.sap.com/nw. In SAP Library for SAP NetWeaver 7.0 Including

Enhancement Package 2, choose SAP NetWeaver SAP NetWeaver by Key Capability

Application Platform by Key Capability Platform-Wide Services Connectivity Communication

Interfaces for Mail and Telephony SAPconnect (BC-SRV-COM) SMTP Configuration Guide .

NOTE

This process is carried out by the transportation planner.

Further Information


Content Location


Configuration documentation The configuration documentation is part of SAP Solution Manager implementation content ST-ICO 150_700 SP32. For more information about SAP Solution Manager,


3.6 TM: Tendering Freight

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Content Locationsee http://service.sap.com/solutionmanager.

3.7 TM: Executing and Monitoring Freight

Overview

This process covers the actual execution of transportation activities. The

transportation planner checks whether freight orders are ready for execution, the

customs declaration is complete, and the relevant documents have been printed. If

a customs process is involved, freight orders are blocked. After the GTS system has

returned a positive result, actual execution can start. In this process, the freight orders

are loaded and deliveries are performed. The process also deals with the various

exceptions that may occur when transportation activities are carried out. Once the

process is complete, you receive the corresponding execution information.

During the transportation execution process in SAP TM, you perform the following

activities:

■ Print the transportation documents

■ Track the status of executed activities

■ Adjust freight orders that are in execution

■ Receive confirmation of the completed execution

The execution process can be integrated with other systems, for example, a customs

management or warehouse management system.

Further Information


Content Location


Configuration documentation The configuration documentation is part of SAP Solution Manager implementation


3.7 TM: Executing and Monitoring Freight

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Content Locationcontent ST-ICO 150_700 SP32. For more information about SAP Solution Manager, see http://service.sap.com/solutionmanager.

3.8 TM: Settling Freight Orders

Overview

This business process triggers the creation of a self-invoice or the verification of an

invoice for subcontracted transportation services. Actual invoice verification takes

place in SAP ERP. This business process ensures that the amounts paid are correct for

the logistical ordering and execution process.

NOTE

This business process is carried out by the carrier settlement specialist.

Further Information


Content Location



3.9 TM: Settling Forwarding Orders

Overview

This business process triggers the creation of an invoice that is to be sent to a customer

when charging for transportation services. SAP ERP creates the accounting-relevant


3.8 TM: Settling Freight Orders

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invoice and posts the revenue to accounting. You can monitor the payment for the

transportation services, and this business process ensures that the revenues are in

alignment with the logistical ordering and execution process.

NOTE

This business process is carried out by the customer settlement specialist.

Further Information


Content Location




3.9 TM: Settling Forwarding Orders

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both sides.

4 Business Scenarios of SAP Transportation Management

PrerequisitesBefore you start to configure the scenarios, you have to make sure that the settings

described in the following two documents are implemented:

Content Location

Basic Settings for SAP ERP

This configuration guide is part of SAP Solution Manager implementation content ST-ICO 150_700 SP32. For more information about SAP Solution Manager, see http://service.sap.com/solutionmanager.

Basic Settings for SAP Transportation Management

This configuration guide is part of SAP Solution Manager implementation content ST-ICO 150_700 SP32. For more information about SAP Solution Manager, see http://service.sap.com/solutionmanager.

4.1 International Outbound Transportation (Travel & Logistics Services)

Description

This scenario describes the freight forwarding process for transporting three twenty-

foot standard dry containers for a customer from the United States to Germany by

sea. The entire trip is managed by the freight forwarder Simon Express Corporation

US and its European subsidiary Deutsche Ubersee AG.

In this scenario, the customer, New York Abrasives USA, delivers three twenty-foot

standard dry containers containing steel parts to the forwarder’s warehouse (Simon

Express Corp.) at Newark, United States. The containers are to be delivered to the

consignee Lebensmittelgrosshandlung Meyer in Dusseldorf, Germany by sea.



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Simon Express Corp. reserves the required ocean freight space with the ocean liner

Europa Express and also organizes the customs clearance and drayage of the cargo to

Newark Port.

Europa Express, the container shipping line, ships the containers from Newark to

Rotterdam.

Once the containers reach the port of Rotterdam, Simon Express Corp.’s subsidiary

in Europe organizes the customs clearance of the cargo from the port. It also organizes

a trucking service for delivering the three containers to the consignee

Lebensmittelgrosshandlung Meyer in Dusseldorf.

Europa Express bills the shipper for handling, ocean transport, customs, and delivery

services.

The scenario comprises the following business processes:

1. TM: Managing Forwarding Orders

2. TM: Managing Bookings

3. TM: Planning Freight and Selecting Carriers

4. TM: Managing Freight Orders

5. TM: Executing and Monitoring Freight

6. TM: Settling Forwarding Orders

7. TM: Settling Freight Orders

Technical System Landscape

The following software units (components) are either mandatory or optional, as

indicated below, for the technical implementation of the scenario:

Software Unit (Component) Mandatory Optional

SAP Transportation Management 8.1 X —

EHP5 for SAP ERP 6.0 X —

EHP1 for SAP EM 7.0 (Event Management) X —

SAP SCM Optimizer 7.03 X —

XI CONTENT SAPTM 1.01 X —

SAP NetWeaver PI X —



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Software Units

For more information about software units (components), see the Software Component

Matrix section of this guide.

Implementation Sequence

For more information, see the section Overall Implementation Sequence or Overall Upgrade

Sequence.

Further Information

The following documents provide more information about the scenario:

Content Location

Scenario description The scenario description is part of SAP Solution Manager implementation content ST-ICO 150_700 SP32. For more information about SAP Solution Manager, see http://service.sap.com/solutionmanager.


4.2 Outsourced Transportation (Mill Products)

Description

You use this business scenario to manage your Outsourced Transportation process.

As a shipper, you send shipments out to customers from your warehouse or

distribution center. These deliveries are based on sales orders. You hand over

responsibility for transportation planning and execution to a third party, for example,

a logistics service provider (LSP) or forwarding agent.

In this scenario, the shipper owns the transportation system that optimizes

transportation and transfers the results to the forwarding agent who performs

transportation activities on behalf of the shipper. This results in all transportation

activities being outsourced to the forwarding agent.



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The advantage of integrating SAP Enterprise Resource Management (ERP), SAP

Transportation Management (TM), and SAP Event Management (EM) is that you

can:

■ Integrate and automate planning based on sales orders, select carriers, and

perform tendering (order changes are propagated automatically to the

transportation system)

■ Break down transportation requirements to transportable freight units

■ Distribute planning responsibility to people with regional expertise (stage level

planning)

■ Reduce work effort by planning via the optimizer

■ Select carriers based on actual costs

■ Perform automatic tendering, whereby the system reacts to RFQ responses

automatically by triggering subsequent activities based on tendering profiles

■ Manage incompatibilities between carriers and orders

■ Increase visibility and monitoring of shipments during execution at all times for

different roles using the event manager


1. Sales Order Processing

2. TM: Managing Transportation Requirements


4. TM: Tendering Freight



7. Verifying Logistics Invoices Online

8. Processing Evaluated Receipt Settlement (ERS) in ERP









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EHP1 for SAP EM 7.0 (Event Management) — X

SAP Visual Business 1.1 — X

SAP NetWeaver PI X —

Software Units





Sequence.

Further Information


Content Location



4.3 International Inbound Logistics (Chemicals)

Description

You use this business scenario to manage your international inbound logistics. As an

ordering party you procure material from different overseas vendors. A logistics unit

within your company plans the individual stages, which includes identifying a vessel

for the ocean shipment. Depending on the relevant Incoterm, you are responsible

for arranging inbound transportation activities for certain stages. For example, the



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Incoterm FOB (“free on board”) specifies that vendors are responsible for managing

pre-carriage stages (from the source location to the port of loading), while the logistics

service provider is responsible for the stages from the port of loading to the destination

location (main carriage and on-carriage stages).


1. Processing Purchase Orders in ERP















SAP NetWeaver PI — X

Software Units





Sequence.

Further Information




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Content Location



4.4 Domestic Inbound Transportation (Automotive)

Description

You can use this business scenario to manage your inbound shipments for goods you

procure and receive from domestic suppliers.

As a buyer receiving high volumes of goods per day, you achieve more favorable freight

agreements with logistics service providers than the individual vendors would, and

therefore you pay for the freight charges of inbound shipments.

Freight settlement with logistics service providers is a key capability of SAP TM based

on master data defined in Transportation Charge Management and integrated into

SAP ERP for invoice processing. SAP TM enables you to efficiently process freight

settlements and increases your visibility of freight expenses incurred.

The common mode of transport for land-based transport is the truck. Full truck loads

reduce the transportation costs but are rarely achieved with direct shipments from

one supplier location to one destination location alone. A mix of direct shipments,

shipments with pre-carriages and main carriage, and multi-pick, multi-drop trips

reduces the transportation costs. SAP TM enables you to optimize truck loads

achieving optimal transportation costs while taking into account constraints such as

on-time delivery.

When directly ordering material to be used as components in production plants, on-

time delivery is crucial in order to achieve the lowest possible inventory levels without



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risking production plans due to missing parts, and to optimize the utilization of

resources in goods receipt and warehouse processing. Shipment tracking and event

monitoring create the necessary visibility of transportation execution, enabling you

to react earlier to critical situations.

This scenario describes the shipment of goods within Germany via truck. The goods

are ordered by two production plants from two different vendors; each vendor has

several production locations from which the goods are shipped. An area forwarding

agent is automatically selected to transport the goods depending on the

transportation zone where the supplying vendor is located.

A trip per day with full truck load (FTL) is considered to be realistic, collecting the

freight to be picked from supplier locations in the region of North Rhine-Westphalia,

and to be delivered to the plants located in the region of Bavaria. The freight agreement

with the logistics service provider contains an overall charge for FTL for a truck per

day. All freight beyond that trip is charged based on weight- and distance-related

rates.


1. Processing Purchase Orders in ERP




5. Inbound Processing and Receipt Confirmation Without Warehouse

Management



8. Processing Evaluated Receipt Settlements (ERS) in ERP









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SAP NW 7.0 BI CONT ADDON 7.05 — X


Software Units





Sequence.

Further Information


Content Location



4.5 Domestic Outbound Transportation (Food)

Description

This scenario is used by a shipper that wants to manage its domestic outbound freight.

The shipper will be either a distributor or manufacturer of its own products and

distributes them through its network of plants, distribution centers, and possibly,

third party warehouse operations.



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The shipper has a logistics organization that is responsible for the timely, cost effective,

and efficient transportation of its products between and from its facilities to the end

customer (that is, prepaid). In some cases, the shipper may also be responsible for

certain portions of the transportation operations for customer-arranged freight (that

is, collection).


1. Sales Order Processing

2. TM: Managing Transportation Requests


4. TM: Tendering Freight












Software Units





Sequence.

Further Information




40/52 PUBLIC 2012-03-30

Content Location



4.6 LCL Ocean Freight (Travel & Logistics Services)

Description

This scenario describes the less than container load (LCL) ocean freight operations of

the freight forwarding company, Interforwarders, Japan. Interforwarders is a global

logistics service provider (LSP) organization with offices and facilities in various major

Japanese and North American cities. The Interforwarders transportation network

consists of forwarding houses in Tokyo, Nagoya, and Hiroshima as well as a central

gateway and container freight station in Yokohama. On the U.S. west coast, the

gateway is the container freight station in Los Angeles, and forwarding houses are in

Phoenix, San Diego, and San Francisco. Typically, the forwarding houses have direct

customer contact, whereas the central gateway serves to coordinate and consolidate

all ocean traffic through its container freight station. This means that the forwarding

houses have contracts (forwarding agreements) with customers (including both

shippers and consignees), which stipulate the appropriate charges and handling of

shipments. The gateways, on the other hand, enter into contracts (freight

agreements) with the carriers (container shipping lines and trucking companies) to

specify optimized consolidated cost rates and volume agreements.

In this scenario, the Yokohama gateway reserves container space by generating ocean

bookings directly with the container shipping line, SOCAL, for specific voyages within

the schedule for the trade lane from Yokohama to the port of Long Beach.



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The scenario comprises the following main stages:

■ Pick-up of individual shipments from shippers and transportation to a forwarding

house on a less than truck load (LTL) basis

At the forwarding house, the shipments are consolidated into full truck loads

(FTL).

■ Pre-carriage from the forwarding house to the container freight station on an

FTL basis

At the container freight station, the truck loads are loaded into standard

containers, as supplied by the container shipping line. The filled containers are

loaded on to the scheduled container transporter.

■ Main carriage from the container port at Yokohama to the container port at

Long Beach.

The containers are unloaded into truck loads.

■ On-carriage from the container freight station to the appropriate U.S. forwarding

house on an FTL basis

The trucks are unloaded and the individual shipments are sorted according to

their final destinations.

■ Delivery to the final destinations on an LTL basis

This scenario comprises the following business processes:


2. TM: Managing Forwarding Orders




6. TM: Settling Forwarding Orders

7. Verifying Logistics Services Online

8. Billing in ERP






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Software Units





Sequence.

Further Information


Content Location





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both sides.

5 Solution-Wide Topics

■ For more information about the Upgrade Roadmap that provides methodologies

for planning and executing an upgrade project, see SAP Solution Manager. For

more information about SAP Solution Manager, see SAP Service Marketplace at

http://service.sap.com/solutionmanager.

■ For more information about shared services that are provided by SAP NetWeaver

and are required to run a system landscape, such as Solution Manager, System

Landscape Directory, and Software Lifecycle Manager, see the current Master

Guide and Upgrade Master Guide for SAP NetWeaver on SAP Service Marketplace

at http://service.sap.com/installnw70 and http://service.sap.com/

upgradenw70.

5.1 Service-Oriented Architecture (SOA)

SAP´s delivery on SOA (service-oriented architecture) differs from the pure

architectural concept of SOA in the delivery of ready-to use enterprise services.

Enterprise services are SAP-defined Web services which provide end-to-end business

processes or individual business process steps that can be used to compose business

scenarios while ensuring business integrity and ease of reuse. SAP designs and

implements enterprise service interfaces to ensure semantic harmonization and

business relevance. This section deals with the service-enablement of SAP Business

Suite 7.

5.1.1 Service Enablement

The service enablement of SAP Business Suite consists of one or more of the following

SAP components:



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http://service.sap.com/upgradenw70

http://service.sap.com/upgradenw70

■ SAP Business Suite 7

Enterprise services are an integral part of the software components of the SAP

Business Suite applications. Enterprise services are the technical interfaces to the

functionality available in the business application.

■ SAP NetWeaver PI 7.0 or higher

SAP NetWeaver Process Integration (SAP NetWeaver PI) is an open integration

and application platform that provides tools enabling you to set up a service-

oriented architecture for business applications. You can use the platform for

providing, discovering, and consuming services, integrating applications using

the integration server, and managing business processes. Process integration is

required in a runtime environment to consume enterprise services in a mediated

scenario.

NOTE

Most asynchronous services can only be consumed in a mediated scenario.

NOTE

We recommend that you use the highest version of SAP NetWeaver Process

Integration. For more information, see SAP Note 1515223 and SAP Note

1388258

● Enterprise Services Repository

The Enterprise Services Repository (ES Repository) is the central repository

that contains the definition of all enterprise services and models. ES

Repository is shipped with SAP NetWeaver PI 7.1 and with SAP NetWeaver

CE 7.1 or higher. The Enterprise Services Repository is a design time

environment that enables you to create and enhance enterprise service

definitions and to view enterprise service models.

NOTE

In a SAP NetWeaver 7.0 landscape you will require the Integration

Repository to create and enhance enterprise service definitions in a

design time environment.

● Services Registry



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The Services Registry is shipped with SAP NetWeaver PI 7.1 and SAP

NetWeaver CE 7.1 or higher and is required for the publication of enterprise

service end-points (Web services) that have been configured and activated

in the SAP Business Suite.

■ SAP NetWeaver CE 7.1 or higher

The SAP NetWeaver Composition Environment (SAP NetWeaver CE) provides

a robust environment for the design and implementation of composite

applications.

The design time environment of SAP NetWeaver CE can be used for the model-

driven design and development of composite applications based on enterprise

services. SAP NetWeaver CE offers the tools and the environment necessary for

running composite applications fast and efficiently in a runtime environment.

■ SAP Solution Manager 7.0

The Solution Composer, shipped with SAP Solution Manager 7.0, is required to

host the enterprise service online documentation.

Figure 2: Overview: SAP's Applications for SOA Enablement

The following table describes the SAP applications required or recommended for

different runtime and design time use cases:



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SAP Applications

SAP Business Suite

SAP NetWeaver PI 7.0 (Integration Repository)

SAP NetWeaver PI 7.1 (ES Repository)

SAP NetWeaver CE 7.1 (ES Repository)

SAP Solution Manager 7.0 (Solution Composer)

SAP NetWeaver 7.1 Services Registry

Runtime Usage:

Enterprise Service Provisioning

Required Optional

Process integration and mediated communication

One option required

Design Time Usage:

Create and enhance enterprise service definitions

Required One option required Recommended

View enterprise service models

One Option Required Recommended

Design and develop composite applications

Required Recommended Recommended

Enterprise service online documentation

Required

Publications of enterprise service end-points

Optional Required



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5.1.2 Installation of the Service-Oriented Architecture (SOA)

The installation of service interfaces, and therefore the service enablement of SAP

Business Suite, consists of one or more of the following phases:

■ Identification of software components and required business functions

You use the technical data section of the enterprise service documentation to

identify the following data for each enterprise service:

● the software component version with which the service was shipped

● the business function(s) required to be activated

■ Identification of technical usages

SAP Note 1324838 provides a mapping of business functions and software

component versions to technical usages. You use this documentation to identify

the required technical usages for your list of software component versions and

business functions.

■ Installation of the software component ECC-SE

The software component ECC-SE contains service implementations for ECC (the

ERP Central Component). This component must be explicitly installed if you

intend to use enterprise services for ECC functionality. In this case you must also

select the technical usage “ESA ECC-SE” during the enhancement package

installation.

■ Selection and installation together with the other parts of the

enhancement package

In the enhancement package installation process you must select all the technical

usages you have identified for service enablement together with the technical

usages you identified for enhanced features in SAP Business Suite. The selected

technical usages will install the corresponding software components that contain

the enterprise services interfaces and implementations.

■ Enterprise service definitions for SAP NetWeaver PI 7.0 or ES Repository

(SAP NetWeaver 7.1) (optional)

To install the content required for the enterprise service definitions you must

select the technical usage “XI Content” in the enhancement package installation



2012-03-30 PUBLIC 49/52


process. This usage type downloads the content files for both SAP NetWeaver 7.0

and 7.1 versions. Unpack the ZIP file and copy the tpz files corresponding to your

SAP NetWeaver version into the import directory of your Integration Repository

(for SAP NetWeaver PI 7.0) or Enterprise Services Repository (for SAP NetWeaver

ES Repository 7.1). Use the import function to import the content files into the

corresponding repository (Integration Repository or Enterprise Services

Repository). (Choose Tools Import Design Objects )

■ Enterprise service models for ES Repository (SAP NetWeaver 7.1) (optional)

To install the content required for the enterprise service models you must select

the technical usage “ESR Content” in the enhancement package installation

process. This usage type downloads the content files for SAP NetWeaver ES

Repository 7.1. Unpack the ZIP file and copy the tpz files into the import directory

of your Enterprise Services Repository. Use the import function to import the

content files into the Enterprise Services Repository. (Choose Tools Import design

objects )

NOTE

The enterprise service models are not available for the Integration Repository

(SAP NetWeaver PI 7.0)

■ Enterprise service online documentation for Solution Composer

(optional)

To install the content required for the enterprise service online documentation

you must download the content file for the corresponding Business Suite

application product version from the Service Marketplace. Then you must

import the content file into your Solution Composer. Refer to SAP Note

1224284 for further information.

■ Services Registry (optional)

The services registry is shipped with SAP NetWeaver PI 7.1 and CE 7.1. You must

install the services registry and then publish the enterprise services from the

Business Suite application to the registry using the transaction SOAMANAGER in

the backend.



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For further information regarding the installation of SAP NetWeaver PI, CE and

ES Repository, refer to the corresponding SAP NetWeaver Installation and Master

Guides.

5.1.3 Related Documentation

For more information about the service-oriented architecture (SOA), see the

following information sources:

■ SDN Community in the SAP Network at https://www.sdn.sap.com/irj/sdn/

soa (registration required)

■ The SAP Enterprise Service Workplace at http://ESWorkplace.sap.com

■ The Enterprise Services Wiki in the SAP Network at https://wiki.sdn.sap.com/

wiki/x/LQ0 (registration required)

■ SAP Note 1224284: Enterprise Services, Installing and Accessing the SOA

Documentation

■ SAP Note 1359215: Technical prerequisites for using enterprise services

■ SAP note 838402: Problems with non-Unicode system landscapes



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https://www.sdn.sap.com/irj/sdn/soa

https://www.sdn.sap.com/irj/sdn/soa

http://ESWorkplace.sap.com

https://wiki.sdn.sap.com/wiki/x/LQ0

https://wiki.sdn.sap.com/wiki/x/LQ0




SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermanyT +49/18 05/34 34 34F +49/18 05/34 34 20www.sap.com

© Copyright 2012 SAP AG. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Master Guide SAP® Transportation Management 8.1

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