Freight Collaboration with SAP Logistics Business network (LBN) and its integration with SAP Transportation Management (TM)

SAP has developed & released a cloud application called as ‘Logistics business network (LBN)’ to network and communication with partners (Shippers, Carriers, Customs authorities etc) involved in logistics (warehousing & transportation) operations. LBN has 3 components

1. Freight collaboration

2. Global track & trace (GTT)

3. Material traceability

LBN can be integrated with SAP ECC , S/4HANA, Transportation management ( TM ) and Extended warehouse management (EWM).

My present blog is to discuss on two important operations on Freight collaboration and its integration with Transportation management.

1. Creation and award of Request for Quotation (RFQ) to the carrier

2. Send Freight order (after Award) and subsequent confirmation from the carrier

A typical process for Freight RFQ to the carrier and its confirmation has been depicted chronologically in below image.

Activities or operations as depicted in above image have been described below in chronological sequence alongwith relevant screenshots from SAP TM and LBN.

1. A RFQ (5100000417) is created from Freight order (6100002573) in Transportation management as shown in below image.

2. RFQ is transferred to the LBN Carrier through XML message as triggered from the freight order and as shown below.

3. Concerned carrier accesses the RFQ in its LBN portal and reviews & accepts the same through App ‘ Freight request for quotations’ as shown below.

4. Confirmation from the carrier is reviewed and subsequently awarded to the carrier as captured in below image of the freight order.

5. Freight order is sent to the carrier through XML for the confirmation as shown in below image.

6. Carrier reviews the freight order and confirms the same through App ‘ Freight orders for confirmation’ as captured in below image

7. ‘Confirmation Status’ of the freight order is depicted as ‘ Confirmed’ as in below image.

We can very well ascertain that LBN will ensure the freight collaboration to be very transparent, fast and efficient. We also see very high demand for demos of LBN from the customers.