7 Reasons to Migrate from SAP LE-TRA or SAP 9.x to SAP S/4HANA TM
Services05/10/2024
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Enterprises strive for agile supply chains to gain a competitive edge, and the crux of achieving this agility lies in fostering responsive transportation management systems. Businesses recognize that in an era defined by rapid changes and evolving consumer preferences, the ability to swiftly adapt to fluctuating market demands hinges upon the efficiency and flexibility of transportation operations. Therefore, pivoting towards agile transportation management and embracing technological advancements isn't merely an option but a strategic necessity. Clinging to legacy systems like SAP LE-TRA (Logistics Execution Transport) or older versions of SAP TM (Transportation Management) 9. x will serve no good to the businesses of today. Amidst these challenges, the strategic imperative to migrate to SAP S/4HANA Transportation Management (TM) represents a quantum leap in transportation management technology.
However, beyond the promise of innovation lies a critical deadline - a finite window of opportunity to maximize the benefits of migration. SAP provides mainstream maintenance support for Business Suite 7 until 2027. It will extend optional maintenance for such enterprises until 2030 at an additional fee. After this period, if the customers continue using SAP Business Suite 7, software systems will be transferred to a customer-specific maintenance model.
Understanding the Limitations of Legacy SAP TM Systems
SAP LE-TRA or Logistics Execution Transportation and SAP TM 9. x have remained popular solutions for transportation execution, and freight cost settlement. However, SAP wanted to streamline the processes and simplify functional usage by making a unified freight management application instead of LE-TRA and SAP TM 9. x. While SAP LE-TRA and TM 9. x served us well, here's why it's time to consider a strategic upgrade to SAP S/4HANA TM:
Limited Functionalities: SAP prioritizes development for the newer TM platform, leaving legacy systems with limited access to new features and functionalities. This means missing out on cutting-edge innovations that can optimize your transportation network and give you a competitive edge.
Security Concerns: SAP has announced that the mainstream maintenance availability for LE-TRA (as part of Business Suite 7) will end in 2027. These legacy systems are more susceptible to security vulnerabilities as they lack the ongoing maintenance and updates that patch these weaknesses. A security breach in a transportation management system can cause devastating consequences, exposing sensitive data and disrupting the supply chain.
Process Bottlenecks: LE-TRA and SAP TM 9. x rely heavily on manual processes, leading to inefficiencies and bottlenecks. From freight procurement to shipment tracking, these systems lack the automation capabilities to streamline operations.
Integration Challenges: Legacy systems often struggle to integrate seamlessly with SAP or other solutions, creating data silos and hindering overall visibility. This lack of integration forces working with multiple systems, increasing complexity and making it difficult to gain a holistic view of the supply chain.
The Solution: SAP S/4HANA TM
The HANA database is the cornerstone of SAP S/4HANA TM, providing a robust foundation for real-time data processing and analysis. By storing data in memory rather than on disk, HANA accelerates data access and processing, allowing organizations to make faster, more informed decisions. Built on the SAP HANA database, S/4HANA TM harnesses the power of in-memory computing for real-time processing, enabling organizations to access critical insights and analytics instantaneously.
Thus, SAP S/4HANA TM goes beyond the limitations of LE-TRA and TM 9. x, offering a comprehensive suite of features to streamline your operations, optimize costs, and gain complete control over your transportation network.
Seven Reasons Why You Should Migrate from SAP LE-TRA or SAP TM 9.x to SAP S/4HANA TM
Real-Time and Predictive Insights: SAP S/4HANA TM leverages the power of the HANA database for real-time data processing and analytics. This enables organizations to access actionable insights into their transportation operations instantaneously. Furthermore, by leveraging machine learning and predictive analytics, SAP S/4HANA TM can anticipate potential issues and recommend optimal solutions in real-time. Whether predicting delivery delays, optimizing routes, or identifying cost-saving opportunities, S/4HANA TM helps organizations stay ahead of the curve and proactively address challenges before they arise.
Enhanced User Experience: With a modern and intuitive user interface, SAP S/4HANA TM offers an improved user experience compared to its predecessors. Customizable dashboards, streamlined workflows, and personalized insights make it easier for users to perform their tasks efficiently and effectively.
End-to-End Integration: Unlike standalone solutions, SAP S/4HANA TM seamlessly integrates with other modules within the SAP S/4HANA suite. This integration provides organizations with a unified view of their supply chain operations, from order management to transportation planning to freight settlement, fostering collaboration and alignment across the organization.
Enhanced Functionality: SAP recommends the usage of SAP TM even for the basic shipping process. SAP may no longer introduce any new functionality in LE-TRA. Therefore, businesses still using SAP LE-TRA cannot leverage new functionalities introduced in SAP TM. If customers continue to use SAP LE-TRA but want to leverage new functionalities, they may have to develop them in-house with an internal IT team.
Scalability and Flexibility: Built with scalability in mind, SAP S/4HANA TM can easily adapt to businesses' evolving needs, whether expanding into new markets, adding new transportation modes, or accommodating increased shipment volumes. This flexibility ensures that organizations can continue to grow and innovate without being hindered by their transportation management system.
Compliance and Regulation: With ever-changing regulatory requirements and compliance standards, organizations need a transportation management solution that can keep pace with them. SAP S/4HANA TM offers built-in compliance features and updates, ensuring that businesses remain compliant with local and international regulations and minimizing risks and penalties.
Process Automation: Businesses can switch over from many manual processes in transportation. With SAP TM, shippers can leverage automated planning, carrier selection, and tendering. Further automation of freight capacity procurement, freight status monitoring, and freight invoice verification increases the efficiency of the processes. Optimized transportation planning ensures cost and resource optimization, improving service levels. Similarly, optimized carrier selection ensures proper capacity utilization and significantly lower costs.
At the heart of an agile supply chain is transportation management, which mirrors its flexibility. This entails more than merely moving goods from point A to point B; it encompasses a holistic approach to logistics that emphasizes real-time visibility, proactive risk mitigation, and adaptive decision-making. SAP S/4HANA TM offers the future-proof solution you need to achieve this agility. With the deadline looming, staying ahead of the curve is crucial for maintaining competitiveness and driving growth. By embracing SAP S/4HANA TM, organizations can unlock a world of possibilities, from real-time insights to enhanced user experiences, end-to-end integration, and scalability.
Navigating this migration journey necessitates expertise. ArchLynk is well-positioned to help you transform your transportation operations and make the best out of your SAP investment. Our professionals are well-versed in the intricacies of the process and possess the deep knowledge needed to guide you at every step of your migration journey.
Contact us today to speak with an expert and chart your course toward a successful migration and a transformed agile logistics landscape. Together, we can turn your vision of a responsive supply chain into a reality.
