TM 101 · PROCESS OVERVIEW
How does Transportation Management work?
Basic TM turns transportation-relevant demand into a feasible transport plan, physical execution evidence, expected freight cost, and settlement. The mental model is simple: Demand -> Plan -> Execute -> Cost -> Settle.
Transportation Management flow
From delivery-based demand to settled carrier cost
- 01
Business demand What must move?
Delivery-based transportation demand enters TM with source references, locations, quantities, and dates.
Creates Transportation demand / DTR
- 02
Freight unit What can be planned?
FUBR turns transportation demand into Freight Units that can be split, grouped, planned, and traced back to the source.
Creates Plannable freight demand
- 03
Freight order / booking How can it move?
Planning assigns compatible Freight Units to a feasible Freight Order with route, schedule, resources, equipment, capacity, stops, and carrier assignment. Where a release or mode uses booking terminology, keep it as document vocabulary rather than a tendering lesson.
Creates Freight Order plan
- 04
Execution events Did movement happen?
Warehouse, delivery, loading, departure, arrival, PGI, GR, and event evidence prove whether the physical movement followed the plan.
Creates Physical and event evidence
- 05
Settlement How does cost reach finance?
Freight agreements, rates, charge calculation, FSD, and purchasing follow-on evidence support supplier invoice verification and FI integration.
Creates Settlement and accounting evidence
TRANSPORTATION EVIDENCE
Trace demand into freight settlement
This lens answers a different question from the lifecycle above: what evidence proves the result at each ownership boundary?
Open the object model, demand, master data, planning, execution, and settlement questions.