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Saturday, December 5, 2009

SAP SD Transportation- Case Study Real Time Scenario

When selecting a mode of Transportation, we must account for cycle, safety and in-transit inventory costs that result from using each mode. Modes with high transportation cost can be justified if they result in significantly lower inventory costs.
In SAP SD Transportation Module do we have an option to measure the transportation costs involved amongst many transportation modes available.

Here is an example

Transp Agent Total Cost during Transportation(Transportation + Inventory )
FA Rails 186900$ annual
Golden Agent 154320$ annual
Blue Star 176820$ annual

The issue here is can the SAP system choose the lowest total cost model offered by various Forwarding Agents.

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