Freight order integration with shipment and shipment processing

SAP TM provides two options for integrating ERP shipments, which are shipment-based freight orders and freight order-based shipments. In shipment-based freight orders, transportation planning occurs in the SAP ERP system. The delivery and shipment in the case of shipment-based freight orders are created in the SAP ERP system and the SAP ERP shipment document triggers the creation of the freight order. The freight order is then tendered and further performs freight cost settlement. This scenario is adopted when customers want to plan transportation in the SAP ERP system but would like to utilize SAP TM for tendering functions, freight costing, and rate purposes. This scenario is also called shipment integration inbound.

The other option to integrate with SAP ERP shipments is freight order-based shipment. In this option, the transportation planning is initiated and executed in the SAP TM system. Freight order planning...