ArchLynk's SAP BNL InstaFreight Connection Demo for Broadcast Tendering & Self Billing

SAP Business Network for Logistics (BNL) is a digital supply chain platform that brings together different supply chain players for easy freight collaboration. Shippers, Carriers, Logistics Service Providers (LSPs), Visibility Providers, Digital Freight Forwarders, or Carrier Networks can easily connect through the SAP LBN and collaborate to match demand-supply effectively, enhance goods tracking, and execute material traceability.

InstaFreight is a leading digital logistics company for over-the-road transport in Europe. As a ‘digital carrier network connected' to the SAP BNL for freight collaboration, it provides instant pricing in the region. The integration of InstaFreight with SAP Transportation Management via SAP BNL allows seamless management of road shipments in Europe. The integration reduces the complexities and administrative effort involved in freight collaboration for both shippers and carriers. Through this integration, the users of SAP BNL gain access to more than 12000 carriers via InstaFreight.

In any transportation process, a shipper aims to reduce the freight cost. However, it is difficult to determine which is cheaper, a spot rate or a contracted rate. Firstly, rates vary from lane to lane, and market conditions immensely affect them too. Secondly, contracted carriers are not obligated to accept the load. With SAP TM and BNL, we can now compare the spot price with the contracted rate and select the best carrier based on business rules.

What did we do?

In the test landscape, we connected ArchLynk (formerly Novigo ) S/4HANA TM with LBN. The shipper and carrier tenants in BNL allow shippers and carriers to see the freight collaboration results in real-time.

• We invited two ArchLynk (formerly Novigo ) test carriers to access BNL using the 'Discover Business Partners' application in ArchLynk's (formerly Novigo ) BNL shipper tenant.
• The carriers that were invited accepted the invitations in ArchLynk's (formerly Novigo ) BNL carrier tenant and completed the connection.
• From the ArchLynk (formerly Novigo ) shipper tenant, we also sent the invite to the InstaFreight test tenant. InstaFreight manages the BNL InstaFreight tenant, which is connected to the InstaFreight test system.
• Once they received the invite and accepted ArchLynk's (formerly Novigo ) request for collaboration, the connection with the InstaFreight BNL test system was completed.

Watch the SAP Business Network for Logistics (BNL) InstaFreight Connection Demo

The Demo Details

We showcased a price discovery scenario in this demo where we broadcasted the load tender for three carriers. InstaFreight, which does not have a contracted rate in the TM system, instantaneously provides the spot rate. For other carriers (Menath and CTS Spedition), there is a contracted rate maintained in TM freight agreements. The tendering profile and visibility settings were such that the rate is not negotiable for these two carriers.

• Orders were created and planned in S/4HANA embedded to create full-truck freight order.
• Using the tendering profile and visibility settings, these orders were tendered to 3 carriers via standard XML messages to BNL.
• InstaFreight instantly responds with a quote from their test system via BNL, and these quotes are received in S/4HANA TM. At the same time, the other two carriers accept the load without editing the contracted rate.
• The responses are received from all three carriers for both spot and contracted rates. We compared the information and selected the best cost carrier, InstaFreight.
• We sent the award information message to BNL and updated the charges in the TM freight order. Once the InstaFreight carrier confirms the order, the confirmation message is also received in TM.

• For the spot amount provided by InstaFreight, we processed the freight settlement through the self-billing or Evaluated Receipt Settlement (ERS) option. First, the freight settlement document is posted for accruing the costs, which creates a service purchase order and service entry sheet. Since this is a self-billing scenario, we do not expect an invoice from the carrier. Hence, we used the transaction code MRRL and created the invoice document directly, which is also visible in the SAP TM freight order document flow. The amount in the Invoice document is the same as the quoted amount responded to by InstaFreight, and this document can be used to release the payment.

Conclusion

By bringing together different supply chain partners, SAP Business Network for Logistics is leveraging digital supply chain capabilities and innovations. With a growing need for digitization, real-time pricing & insights, along with real-time statuses such as those provided by InstaFreight, help companies gain a competitive advantage. The standard connection of the S/4HANA TM system with the InstaFreight system via Business Network for Logistics allows all SAP customers to benefit significantly from this integration.

ArchLynk (formerly Novigo ), with more than 50 successful SAP TM on-premise implementations, is the leader and the most experienced consulting firm in this domain. Our consultants are well-equipped to advise clients about the various aspects of BNL and instant pricing through digital freight forwarders such as Insta Freight. We anticipate that many companies will need these advanced functionalities in BNL with the growing need for digitization in the industry. We can help you embrace the digital future with carefully tailored solutions to address all the logistics challenges. To learn more get in touch with us.