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  • > Effortless Carrier Dispute Management: SAP Business Network Freight Collaboration's Approach

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Effortless Carrier Dispute Management: SAP Business Network Freight Collaboration's Approach

Services 07/01/2025

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Overview

In today's fast-paced and interconnected world, effective dispute management is crucial for maintaining smooth operations and fostering positive relationships between businesses and their Logistic partners. But still Disputes may arise from various issues such as billing errors, service quality, or contractual disagreements. Efficient dispute management helps resolve these conflicts promptly, minimizing disruptions and preserving valuable partnerships.

Understanding BN FC

BN FC (Business Network – Freight Collaboration) is a digital platform that facilitates collaboration between shippers and carriers. It integrates various logistics processes, including order contracting, dispute management and settlement, into a single standard platform. Although this is an extra feature for the popular SAP Transportation Management module, it can also work on its own.

This integration helps in reducing complexities and improving communication between parties which cannot connect face to face on daily basis.

Common types of disputes which Business Network -FC can easily handle:

  1. Rate Discrepancies: Differences between the agreed-upon rates and the rates invoiced by the carrier.
  2. Service Level Deviations: Disputes arising from deviations in the service levels, such as delivery times or conditions.
  3. Incorrect Charges: Charges that are incorrectly applied, such as fuel surcharges or accessorial fees.
  4. Documentation Errors: Errors in the documentation, such as incorrect freight order details or missing information.
  5. Multi-step Approval Issues: Disputes requiring multi-step approval, especially when the disputed amount exceeds a certain threshold.
Click to Enlarge

Freight Settlement Dispute Process in BN4L

1. Invoice Submission

  • The carrier submits an invoice via the "Invoice Freight Document" app.
  • The document status becomes "To Be Invoiced".
  • The carrier clicks "Create Invoice", generating a draft invoice in the "Manage Invoice" app.
Click to Enlarge
Click to Enlarge

2. Invoice Review

  • Once submitted, the invoice status changes to "Submitted".
  • The Freight Order (FO) status updates to "Awaiting Ordering Party Response".
  • The system sends the invoice to the Transportation Management (TM) system.
Click to Enlarge
Click to Enlarge

3. Dispute Creation (if applicable)

  • If there are deviations (e.g., incorrect charges), a dispute document is automatically created in the "Manage Disputes" app.
Click to Enlarge

4. Shipper Action

  • The shipper reviews the dispute:

              < If the shipper accepts the dispute:

                 <The status changes to "Submitted for Confirmation".

                   <Updated charges are sent to TM.

  • If the shipper rejects the dispute:

         < The carrier is notified and may need to revise and resubmit the invoice.

Click to Enlarge
Click to Enlarge

5. Resolution and Finalization:

  • Once the dispute is resolved (either accepted or corrected and resubmitted), the Freight Order status updates to "Completely Invoiced".
  • The process is considered complete.
    Click to Enlarge
Click to Enlarge

Conclusion

Effective dispute management is vital for maintaining operational efficiency and strong business relationships. By implementing a robust dispute management system, businesses can resolve conflicts swiftly, prevent future disputes, and ensure smooth operations. With the right tools and processes in place, dispute management can become a seamless part of your business strategy. 

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SAP BNL - Freight Collaboration

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WATCH NOW

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