Switching from SAP LE-TRA to SAP TM

Getting started with the switch to SAP TM

The SAP software LE-TRA, which is used for the planning, execution and invoicing of transport processes, is firmly established in many companies. Users are familiar with the processes and the logistics function smoothly. So why should you consider switching to the current SAP Transportation Management (SAP TM) solution? What are the differences between the two systems and what aspects need to be considered when making the switch? In our blog, we summarise the most important considerations for logistics managers who are currently still working with LE-TRA.

Why switch from LE-TRA to SAP TM?

For many companies, SAP LE-TRA is the solution for the logistical processing of transports within the logistics component Logistics Execution (LE) of SAP ECC. However, the situation is set to change.

On the one hand, maintenance and support for SAP ECC will end in 2027 and require a switch to S/4HANA. This leaves just under two years for a smooth transition from the LE-TRA solution to SAP TM in order to be competitive in an S/4HANA world. Secondly, and even more seriously, the usage rights for LE-TRA end on 31 December 2030.

The window of opportunity for those responsible to plan and implement the efficient and rapid switch to SAP TM continues to shrink.

1. New and enhanced functions in SAP TM

Compared to LE-TRA, SAP TM offers a significantly extended range of functions that enable companies to make complex transport processes more efficient.

These include, for example, dynamic route planning across the transport network to determine the most efficient transport routes.

SAP TM also offers flexible and precise freight cost accounting that takes into account complex tariffs and surcharges, and facilitates billing with both suppliers and customers. Overall, SAP TM’s advanced features provide even better support for comprehensive end-to-end logistics processes.

2. Integration of collaboration platforms and solutions

One of the great strengths of SAP Transportation Management (SAP TM) is its seamless integration with collaboration platforms such as the Business Network for Logistics (BN4L) or platforms from external providers, as well as its integration with other SAP modules such as SAP EWM, SAP S/4HANA, SAP GTS and SAP Product Compliance and third-party solutions. This creates a networked ecosystem that promotes efficiency and transparency across the entire supply chain.

The integration enables real-time data exchange between systems, improves coordination between transport planning and warehouse processes, and simplifies collaboration with external partners such as freight forwarders and suppliers.

The result: an optimised supply chain with smooth processes, better resource utilisation and higher customer satisfaction.

Freight settlement also benefits from the integration of SAP TM with other modules – in this case with SAP FI with Dispute Settlement and Invoice Management. This enables automatic invoice verification of service provider invoices and easier clarification of dispute cases.

3. Greater flexibility

SAP TM enables more flexible processes, including:

• Optimised route planning: Based on heuristics, loading/unloading times, compartment guidelines or incompatibilities in vehicle types, for example, can be better implemented and controlled. This helps to avoid empty runs, which has a positive effect on the sustainability of the supply chain.
• Strategic Freight Procurement: SAP TM can be used to evaluate and analyse product forecast data from sales planning with regard to [SS1] the required transport capacities. It also handles contract management with service providers.
• Intelligent freight space optimisation: Based on definable rules, the loading space and the possible utilisation can be planned automatically. This means that pallets or packages can be optimally distributed in the truck and the freight space can be used in the best possible way.

4. Future viability through scalability and cloud integration

SAP TM is future-proof, scalable and optimally designed for the cloud, offering companies many concrete advantages by flexibly adapting to growing demands. The fact that SAP TM takes into account different types of transport (sea, road, air, rail, etc.) and can also connect several systems, including non-SAP systems (multi-backend), means that increasing demands on transport capacities can be better mapped.

5. Better global collaboration

Thanks to a fully integrated system, collaboration with external logistics service providers worldwide is significantly easier.

6. Simplified processes, cost reduction in day-to-day business

By using SAP TM, processes in day-to-day business can be significantly simplified and costs reduced at the same time. For example, automated freight cost calculation and invoicing can minimise manual entries and sources of error. Optimised route planning not only saves time, but also reduces transport costs and CO₂ emissions. Digital collaboration platforms speed up collaboration with partners such as haulage companies and suppliers, which reduces both costs and effort in the long term. SAP TM makes day-to-day operations leaner, more efficient and more economical.

7. Artificial intelligence

In SAP TM, certain activities can be carried out with AI support via Conversational Planning in Transportation Cockpit.

Typical challenges when switching from SAP LE-TRA to SAP TM

The switch from SAP LE-TRA (Logistics Execution Transportation) to SAP Transportation Management (TM) offers companies an enormous opportunity to modernise their logistics processes and make them future-proof. At the same time, it comes with a number of challenges that need to be taken into account during planning and implementation:

1. Data migration and integration 
Transferring historical data from LE-TRA to SAP TM is a complex process. The data structures of the two systems often differ, which requires careful planning and cleansing of the data. In addition, the integration of SAP TM into the existing SAP landscape (e.g. SAP EWM, SAP S/4HANA) must function smoothly in order to avoid process interruptions.

2. New functions and processes 
Compared to LE-TRA, SAP TM offers enhanced functionalities, for example in the areas of freight cost accounting, route planning and collaboration with external partners. Companies need to adapt their internal processes to make the most of these benefits, which requires training and change management.

3. Complexity of system implementation 
SAP TM is a highly developed system with many configuration options. Implementation requires in-depth expert knowledge to ensure that the system is tailored to the company’s individual requirements.

4. Change management and user acceptance 
Employees who have worked with LE-TRA for years often face a steep learning curve when switching to SAP TM. A clear communication strategy and comprehensive training are crucial to create acceptance and ensure productivity during the transition phase.

5. Time and cost management 
The changeover from LE-TRA to SAP TM is a strategic project that requires considerable resources. Without realistic time planning and clear budget targets, delays and additional costs can arise.

• Precise and detailed planning: Start planning the changeover at an early stage in order to have enough time to analyse the current processes and adapt to SAP TM. Define a roadmap with clear milestones and also take into account potential risks and the resources required.

• Set goals and expectations: Set realistic goals and clarify expectations for the switch to SAP TM. This includes both business goals, such as cost reduction or process optimisation, as well as technical requirements. Transparent expectation management prevents misunderstandings and creates a common basis for all project participants.

• Process analysis and optimisation: Before the migration, the existing logistics processes should be thoroughly analysed and optimised to ensure that they meet the requirements of SAP TM. Use this opportunity to eliminate inefficient processes and create a solid basis for the introduction of the new solution.

• Step-by-step implementation: A step-by-step implementation of SAP TM can help to minimise risks and ease the transition. Start with a pilot project focussed on a specific business area or region. This allows experience to be gained, optimisations to be made and problems to be identified at an early stage before the system is rolled out on a large scale.

• Stringent approach and employee involvement: A clearly structured project plan and the close involvement of all relevant stakeholders are essential for success. Involve employees from different departments at an early stage in order to utilise their expertise and create acceptance for the new processes. Regular updates and open communication ensure trust and a shared understanding of the objectives.

• Early training and change management: Invest in training your employees in good time to ensure that they are familiar with the new functions and processes. A comprehensive change management programme helps to promote acceptance of the new solution. This includes workshops, regular updates and supporting materials to make the transition as smooth as possible.

There are many reasons in favour of removing barriers in online offers, web shops, service portals, etc. As every improvement in accessibility has a positive effect, there is no reason to only implement the mandatory programme, as required by the BFSG. Rather, accessibility, usability and customer experience go hand in hand and are the freestyle of implementation!

Conclusion

The switch from SAP LE-TRA to SAP Transportation Management (SAP TM) will be a way for many companies to become faster, more efficient and more cost-effective in logistics processing in the coming years. New features and functionalities will expand the possibilities in logistics and create stability, flexibility and collaboration with external solutions. With a solid project approach, the typical challenges of a changeover to SAP TM can be mastered effectively and project management can be achieved on time and on budget.

Next steps
How ready are you for the switch to SAP TM? Do the check now with the experienced SAP partner KPS!