SAP Transportation Management: Basic TM or Advanced TM?

Traditionally, SAP ECC users relied on the Logistics Execution – Transportation (LE-TRA) module to manage their shipping processes. However, SAP’s strategic shift toward S/4HANA is prompting organisations to rethink their transportation strategy—and the tools that support it.

The transition from LE-TRA to SAP S/4HANA Supply Chain for Transportation Management brings significant changes, particularly in terms of licensing and functionality. Below, we examine the differences between Basic Transportation Management and Advanced Transportation Management to help decision-makers navigate this transition.

Understanding the different versions of SAP TM

SAP offers three options for transportation processes in S/4HANA:

• Basic Shipping: Inherited from the legacy LE-TRA module, this solution will remain available only until 2030. After this date, SAP will no longer provide maintenance or support. Beyond the end-of-maintenance horizon, investments and enhancements for this solution have already stopped.
  It is also important to note that no Fiori applications are available for Basic Shipping.
• Basic Transportation Management (Basic TM): An evolution of Basic Shipping, built on the foundations of the decentralised SAP TM module. Basic TM is included at no additional cost with S/4HANA.
• Advanced Transportation Management (Advanced TM): The most comprehensive version, offering full planning, optimisation and execution capabilities. This option requires an additional licence.

Today, only Basic TM and Advanced TM are strategic, future-proof solutions.
The current release is 2023, and SAP typically ships a new version every year with significant functional enhancements.

Key differences between Basic TM and Advanced TM

To determine which solution is best suited to your organisation, it is essential to compare the functional coverage in each area.

Core functions

Both versions provide most of the standard capabilities (freight order management, basic integration with EWM or Yard Logistics).

However, only Advanced TM supports end-to-end CO₂ emissions tracking (freight units, freight orders, reporting).

Master data

Advanced TM includes extended resource management: capacities, dimensions, downtime, routing restrictions and traffic relationships.

Gestion de la demande

Basic TM has several limitations:

• No ability to combine inbound, outbound and stock-transfer flows into a single freight order
• Planning only from inbound/outbound deliveries (not from sales orders)
• No external demand management (shipping orders)
• No air or ocean transportation capabilities
• No Direct Shipment Order (DSO) and no freight order creation from deliveries
• No handling of transportation requests

All these capabilities are available in Advanced TM.

Planning

Advanced planning is one of the strongest differentiators of Advanced TM. It offers:

• Management of incompatibilities and constraints
• Automated planning via the Transportation Cockpit, including maps, Gantt charts and optimisation engines
• Full fleet and driver management
• Use of normalised quantities (linear metres, loading metres)
• Load-planning simulation for trucks

In Basic TM, planning is largely manual and does not use optimisation engines.

Execution and tracking

Both Basic and Advanced TM support:

• Direct subcontracting
• Updating inbound/outbound deliveries from a freight order

• Tendering capabilities

• Delivery creation directly from a freight order

• Dangerous goods management

Basic TM allows contract maintenance, but only Advanced TM supports:

• Tendering processes
• Version management for contracts

Freight cost calculation

Basic TM already offers tariff tables and Excel integration.
Advanced TM extends this with:

• Up to 14 condition dimensions for rate determination
• Support for maritime and air transportation

Integration with other SAP modules

• Basic TM integrates only with SAP Yard Logistics and SAP EWM via ASR (Advanced Shipping & Receiving).
• Advanced TM offers extended integrations, including SAP BN4L for Track & Trace and enhanced visibility features.

Which option should your organisation choose?

Basic TM is a good fit if your organisation:

• Has moderate transport volumes, mostly road-based
• Wishes to limit licensing costs
• Has limited needs in advanced planning, CO₂ reporting or multimodal transport

Advanced TM becomes essential if your organisation:

• Manages complex or multimodal flows (road, sea, air)
• Seeks strong optimisation of planning and transportation costs
• Must track CO₂ emissions and comply with sustainability requirements
• Runs advanced tendering processes and sophisticated contract management