SAP Logistics Business Network (LBN) is a digital supply chain platform that brings together different supply chain players for easy freight collaboration. Shippers, Carriers, Logistics Service Providers (LSPs), Visibility Providers, Digital Freight Forwarders, or Carrier Networks can easily connect through the SAP LBN and collaborate to match demand-supply effectively, enhance goods tracking, and material traceability.
InstaFreight is a leading digital logistics company for over-the-road transport in Europe. As a ‘digital carrier network-connected’ to the SAP LBN for freight collaboration, it provides instant pricing in the region. The integration of InstaFreight with SAP Transportation Management via SAP LBN allows seamless management of the road shipments in Europe. The integration reduces complexities and administrative effort involved in freight collaboration for both shippers and carriers. Through this integration, the users of SAP LBN gain access to more than 12000 carriers via InstaFreight.
In any transportation process, a shipper aims to reduce the freight cost. However, it is difficult to determine which is cheaper, a spot rate or a contracted rate. Firstly, rates vary from lane to lane, and market conditions immensely affect them too. Secondly, contracted carriers are not obligated to accept the load. With SAP TM and LBN, we can now compare the spot price with the contracted rate and select the best carrier based on business rules.
In the Novigo test landscape, we connected Novigo S/4HANA TM with LBN. The shipper and carrier tenants in LBN allow shippers and carriers to see the freight collaboration results in real-time.
We showcased a price discovery scenario in this demo where we broadcasted the load tender for three carriers. InstaFreight, which does not have a contracted rate in the TM system, instantaneously provides the spot rate. For other carriers (Menath and CTS Spedition), there is a contracted rate maintained in TM freight agreements. The tendering profile and visibility settings were such that the rate is not negotiable for these two carriers.
By bringing together different supply chain partners, SAP LBN is leveraging digital supply chain capabilities and innovations. With a growing need for digitization, real-time pricing & insights, along with real-time statuses such as those provided by InstaFreight, help companies gain a competitive advantage. The standard connection of the S/4HANA TM system with the InstaFreight system via LBN allows all the SAP customers to benefit significantly from this integration.
Novigo, with more than 50 successful SAP TM on-premise implementations, is the leader and the most experienced consulting firm in this domain. Our consultants are well equipped to advise clients about the various aspects of LBN and instant pricing through digital freight forwarders such as Insta Freight. We anticipate that many companies will need these advanced functionalities in LBN with the growing need for digitization in the industry. Novigo can help you embrace the digital future with carefully tailored solutions to address all the logistics challenges. To know more get in touch with us.