Reduce shipment costing with SAP or third-party solution?

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Reduce shipment costing with SAP or third-party solution?

Reduce shipment costing with SAP or third-party solution?

Krishna Kumar, Years 2005-2007

We have two measurements we use in our shipping -- we either ship each item, or a truckload of items. We'd like to find a way to reduce the costs of our mistakes. Is there some way to set a limit, to say, five truckloads maximum?

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The function that you need to look into is called Shipment costing. Shipment costing enables you to perform various simulations of pricing based on pricing conditions and scaling. SAP provides a very complicated shipment costing functionality within the Shipment module. If you are looking for third-party solutions, there is a product called ABM (Adaptive Business Modeler) that enables various yield optimization solutions to help you to optimize truckload, FTL and LTL scenarios based on economies of scale models.

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This was first published in November 2005

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