C_S4TM_2020 – SAP Certified Application Associate Interview Questions

The C_S4TM_2020 – SAP Certified Application Associate – Transportation Management in SAP S/4HANA certification is for people who aspire to work in SAP’s transportation management module. To pass the interview, you require a background in business consulting and transportation processes as well as practical knowledge of how to apply this knowledge in projects under the guidance of an experienced consultant. You can go through the C_S4TM_2020 – SAP Transportation Management in SAP S/4HANA online tutorial to gain an in-depth understanding of the platform, along with the resources you’ll need for the preparation.

Interviewing for a job is hard work. It is even harder to answer the usual questions is even harder. Though you can’t know everything you’ll be asked, there are a few questions you’re almost certain to face with every new job opportunity. Knowing your answers ahead of time can increase your comfort level before the interview even begins. So below is a list of top C_S4TM_2020 – SAP Certified Application Associate interview questions for this purpose. Let’s begin!

Advanced Interview Questions

What is the purpose of the SAP Transportation Management (TM) module in SAP S/4HANA?

The purpose of SAP Transportation Management (TM) in SAP S/4HANA is to provide an integrated, end-to-end solution for managing the entire transportation process, from planning and execution to billing and payment. This helps organizations optimize transportation costs, improve delivery performance, and ensure compliance with regulations. TM integrates with other SAP modules, such as Sales and Distribution and Material Management, to provide a seamless, integrated view of transportation processes within the overall supply chain.

How does Transportation Management integrate with other SAP modules, such as Sales and Distribution (SD) and Material Management (MM)?

Transportation Management (TM) integrates with other SAP modules such as Sales and Distribution (SD) and Material Management (MM) through the use of common data, common business processes, and shared master data. This integration enables the flow of information between the modules, reducing manual data entry and improving efficiency.

Integration with Sales and Distribution (SD): In TM, the delivery schedule and shipping information is maintained, which is then used to create the delivery document in SD. This information is then used to create the outbound delivery and billing document.
Integration with Material Management (MM): In TM, the material management module is used to manage the stock of goods. The material management module integrates with TM to manage the shipping and receiving of goods. This integration ensures that the correct quantities are available for shipment and that the correct quantities are received.

Overall, the integration between TM and other SAP modules, such as SD and MM, helps to streamline business processes, reduce manual data entry, and improve accuracy. This results in a more efficient and effective supply chain management process.

Can you describe the role of the transportation planner in Transportation Management?

The transportation planner is responsible for the planning, coordination and execution of transportation activities. The transportation planner plays a critical role in ensuring that the transportation of goods is performed efficiently and effectively, with the goal of maximizing customer satisfaction and reducing costs.

The main responsibilities of the transportation planner include:

Route Planning: The transportation planner is responsible for determining the most efficient and cost-effective routes for transportation of goods. This involves analyzing the transport costs, delivery times, and available resources to determine the best route.
Capacity Planning: The transportation planner is responsible for determining the capacity required to transport goods based on the volume of goods and the delivery time frame.
Carrier Selection: The transportation planner is responsible for selecting the most appropriate carriers for transportation of goods. This involves evaluating the carriers’ capacity, delivery times, cost, and reliability.
Scheduling: The transportation planner is responsible for scheduling transportation activities based on the delivery time frame, capacity requirements, and carrier availability.
Monitoring and Tracking: The transportation planner is responsible for monitoring and tracking transportation activities to ensure that the delivery schedule is met.
Reporting: The transportation planner is responsible for providing regular reports on the transportation activities to management, including delivery performance, transport costs, and customer satisfaction.

In conclusion, the transportation planner plays a critical role in ensuring that transportation activities are planned and executed efficiently and effectively. This helps to reduce costs, improve customer satisfaction, and support the overall success of the transportation operations.

How does Transportation Management support different transportation planning scenarios, such as inbound and outbound deliveries?

SAP Transportation Management (TM) supports various transportation planning scenarios, including inbound and outbound deliveries, through its advanced planning and optimization capabilities.

For inbound deliveries, TM allows for the creation of pre-defined transportation lanes, which provide a clear definition of the origin and destination of shipments, as well as the preferred transportation carriers and services. The TM planning engine can then use these pre-defined lanes to plan and optimize inbound shipments based on criteria such as delivery lead time, cost, and capacity constraints.

For outbound deliveries, TM supports the creation of shipping plans that take into account customer requirements, such as delivery date and time, and other constraints, such as available capacity and transportation costs. The TM planning engine can then use these shipping plans to optimize the routing and scheduling of outbound shipments based on the defined criteria.

In both cases, TM provides real-time visibility into the transportation planning process, enabling organizations to monitor and track shipments, make changes as needed, and ensure that deliveries are executed as planned. This helps organizations improve delivery performance, reduce transportation costs, and meet customer expectations.

How does Transportation Management handle multi-modal transportation and manage various transportation carriers and services?

Transportation Management in SAP S/4HANA is designed to handle multi-modal transportation and manage various transportation carriers and services effectively. This is achieved through the following features and functionalities:

Carrier Management: SAP S/4HANA provides a centralized carrier management system that enables the transportation planner to manage and monitor transportation carriers, including their capabilities, performance, and delivery times.
Carrier Selection: The system allows the transportation planner to evaluate and compare different carriers based on multiple criteria, such as delivery times, costs, and reliability, to select the most appropriate carrier for each shipment.
Route Planning: The system enables the transportation planner to plan and optimize routes for multi-modal transportation, taking into account various modes of transportation, such as road, rail, air, and sea. The system also allows the planner to evaluate and compare the costs, delivery times, and environmental impact of different routes.
Transportation Planning and Scheduling: The system provides a comprehensive transportation planning and scheduling functionality that enables the transportation planner to plan and schedule transportation activities, taking into account various carriers, modes of transportation, and delivery times. The system also provides real-time monitoring and tracking of transportation activities, allowing the planner to respond quickly to any changes in delivery times or carrier performance.
Transportation Cost Management: The system provides robust transportation cost management capabilities, including the ability to manage and monitor transportation costs, including carrier costs, transportation costs, and fuel costs. The system also provides detailed cost analysis and reporting capabilities to support informed decision-making.

Overall, SAP S/4HANA’s Transportation Management module provides a comprehensive and integrated solution for managing multi-modal transportation and managing various transportation carriers and services. This helps to reduce costs, improve delivery times, and increase customer satisfaction.

Can you explain the Transportation Management rating and pricing process?

The Transportation Management rating and pricing process helps organizations to determine the cost of transportation for each shipment, which enables them to make informed decisions about the most cost-effective transportation options. This process also ensures that the correct transportation charges are billed to the customer, improving the accuracy of financial reporting.

Rate Inquiry: In this step, the system determines the transportation charges based on the shipment data such as origin, destination, mode of transportation, shipment weight, volume, and shipment value.
Rate Determination: The system then determines the transportation charges using the shipping conditions and pricing procedures set up in the system. This step includes determining the applicable transportation rate, surcharges, and discounts.
Pricing: In this step, the system calculates the total transportation cost based on the rate determination. The pricing is based on the shipment characteristics, the transport service provider’s pricing conditions, and the carrier-specific charges.
Invoicing: In this step, the transportation charges are invoiced to the customer. The invoice can be created manually or automatically by the system, depending on the configuration settings.

How does Transportation Management support shipment execution and tracking?

As an Application Associate in Transportation Management in SAP S/4HANA, I can confirm that Transportation Management (TM) supports shipment execution and tracking in several ways.

Route Planning: TM supports route planning, which helps in determining the most efficient and cost-effective way to transport goods from one location to another. This helps in reducing transportation costs and improving the delivery time.
Shipment Execution: TM supports the execution of shipments by providing all the necessary information such as delivery dates, delivery quantities, and shipment cost. This information is used to generate outbound deliveries, shipments, and invoices.
Tracking: TM provides real-time tracking of shipments, which helps in monitoring the progress of the shipment from the time of departure to delivery. This information can be used to make any necessary adjustments to the shipment or delivery schedule.
Reporting: TM provides various reports for shipment execution and tracking, such as shipment overview, shipment status, and shipment cost reports. These reports help in tracking the performance of the shipment and make any necessary improvements.
Integration with other SAP modules: TM integrates with other SAP modules such as Sales and Distribution (SD) and Material Management (MM), which helps in providing a comprehensive view of the entire shipment process, from order to delivery.

In conclusion, Transportation Management in SAP S/4HANA provides a comprehensive solution for shipment execution and tracking, which helps in reducing transportation costs, improving delivery time, and increasing efficiency.

How does Transportation Management handle transportation billing and payment processes?

By using the following steps, Transportation Management in SAP S/4HANA can handle the transportation billing and payment processes efficiently. This results in a smooth and streamlined payment process for transportation services.

Billing Document Creation: Transportation Management creates a billing document based on the delivery information maintained in Sales and Distribution (SD) module. The billing document contains information such as the shipping point, delivery date, and the shipment cost.
Freight Cost Calculation: The shipping cost is calculated based on the transportation contract maintained in TM. The shipping cost is calculated based on the weight, volume, and route of the shipment.
Invoicing: The billing document is then transferred to the Financial Accounting (FI) module where it is used to create the invoice. The invoice contains the shipping cost and is sent to the customer for payment.
Payment Processing: The customer makes payment for the invoice through the payment processing system in Financial Accounting. Once the payment is received, the payment is recorded in the system and the payment status is updated.
Payment Reconciliation: The payment status is then reconciled with the billing document in TM. This helps to ensure that the payment received matches the billing amount.

Can you describe the integration of Transportation Management with Global Trade Services (GTS)?

The integration between Transportation Management and Global Trade Services (GTS) in SAP S/4HANA helps companies to manage their cross-border shipments more effectively and efficiently. This helps to reduce the risk of penalties and delays and ensures compliance with trade regulations.

Compliance Management: GTS integrates with Transportation Management to help manage the compliance of shipments with trade regulations such as export and import laws. This helps companies ensure that their shipments meet all regulatory requirements, reducing the risk of penalties and delays.
Document Management: GTS integrates with Transportation Management to manage trade-related documents such as invoices, customs declarations, and licenses. This integration helps companies to keep track of all the necessary documents required for a shipment, reducing the risk of delays and ensuring compliance.
Risk Management: GTS integrates with Transportation Management to help manage the risk associated with cross-border shipments. This includes the identification of potential risks such as sanctions and embargo restrictions, as well as the implementation of risk mitigation strategies.
Customs Processing: GTS integrates with Transportation Management to manage the customs processing of cross-border shipments. This includes the preparation of customs declarations and the submission of customs declarations electronically to the relevant authorities.

How does Transportation Management support compliance with government regulations, such as Dangerous Goods regulations?

Transportation Management in SAP4HANA provides several features that help organizations comply with government regulations such as Dangerous Goods regulations. These features include:

Dangerous Goods Compliance Management: SAP4HANA’s Transportation Management module offers a Dangerous Goods Compliance Management tool that allows organizations to manage the movement of dangerous goods in compliance with the regulations. The tool provides features such as dangerous goods classification, labeling, and packing information that organizations need to adhere to.
Documentation Management: SAP4HANA’s Transportation Management module offers a Documentation Management tool that provides the necessary documentation required for the transportation of dangerous goods. This includes consignment notes, shipping documents, and other forms required for compliance with regulations.
Route Planning: SAP4HANA’s Transportation Management module provides a Route Planning tool that helps organizations plan the most efficient and compliant route for the transportation of dangerous goods. This helps organizations ensure that they are not violating any regulations that prohibit the transportation of dangerous goods through certain areas.
Real-Time Monitoring: SAP4HANA’s Transportation Management module provides real-time monitoring of the transportation of dangerous goods. This allows organizations to ensure that the transport is in compliance with all regulations, including those related to temperature control and other conditions that need to be met for safe transportation.
Reporting: SAP4HANA’s Transportation Management module provides reporting capabilities that allow organizations to track the movement of dangerous goods and ensure that they are in compliance with all regulations. This includes reports on the location, movement, and status of the dangerous goods.

In conclusion, SAP4HANA’s Transportation Management module provides several features that support compliance with government regulations such as Dangerous Goods regulations. This helps organizations to ensure the safe and compliant transportation of dangerous goods and helps them avoid legal and financial penalties for non-compliance.

Basic Interview Questions

1. What tools does SAP transport management use?

Change and Transport Organizer (CTO) Transaction Code
Transport Management System (TMS)
Transport Tools.
Transport Domain Controller.

2. Could you name the features of transportation management?

Whenever one is looking for a TMS for streamlining the supply chain, it should necessarily have the following features:

Firstly, a powerful route optimization engine
Real-time tracking
Carrier contracts management
Ability to be integrated with leading ERP, WMS, or OMS systems
Reporting

3. How would you describe the main objective of TMS?

The broader goals of using a TMS are to improve shipping efficiency, reduce costs, and ensure customer satisfaction. Carriers and shippers can benefit from receiving highly-relevant information in real-time through a TMS.

4. How would you explain an ERP system in logistics?

Enterprise resource planning (ERP) is a valuable suite of business applications that helps firms manage their logistics when dealing with wholesale or distribution trades. This suite automates day-to-day operations such as accounting, human resources (HR), and customer relationship management (CRM).

5. What functions are performed under the transport management system?

Carrier Management.
Procurement Management.
Route & Load Optimization.
Freight Execution Platform.
Visibility, Reporting & Analytics.
Supply Chain Communication Platform.
Logistics and Supply Chain Data Repository.
Freight Settlement for Audit & Pay.

6. Which SAP systems are able to integrate with SAP Transportation Management?

SAP ERP / ECC.
SAP Customer Relationship Management (CRM)
SAP Extended Warehouse Management (EWM)
SAP Event Management (EM)
SAP Process Integration / Process Orchestration (PI/PO)

7. Could you name the types of transport change requests in SAP?

Types of transport change requests:

Workbench Request: Workbench requests are cross-client
Customizing Request: Customizing requests are client-specific
ALOG – It Specifies the Application Log.
SLOG – It specifies the Job steps.
ULOG – Tp commands.

8. In SAP, how do you access the transportation planning point?

You need to navigate to SPRO> IMG> Enterprise Structure> Definition> Logistics Execution> Maintain Transportation Planning Point. Then, on the next screen, a list of the previously defined Transportation Planning Points will be displayed

9. What do you know about the purpose of transportation planning in SAP?

SAP Transportation Planning in the Direct Store Delivery (DSD) component lets you plan and organize tours with the aim of grouping upcoming deliveries into shipments. This DSD-specific module supports DSD-specific master data and functions.

10. How does SAP TM optimizer work?

The Optimization algorithm is a procedure that creates a valid transportation plan and attempts to optimize the solution with regard to the planning costs, which are set in the Planning Costs section of your Planning Profile.

11. How would you define the VSR optimizer?

VSR optimization creates a transportation plan consisting of planned freight orders generated by the data (freight units and capacities, see Optimization Data). It also includes freight orders that were generated by previous VSR optimizations or manual planning.

12. In which document types can you enable cost distribution in SAP TM?

In SAP TM, it is in the Freight Order (FO), Freight Booking (FB), and Freight Settlement Document (FSD) that the actual distribution takes place, as well as the cost distribution which will then be transferred to ERP with the Freight Settlement Document (FSD).

13. What do you understand by the term load plan?

Load planning is the name given to the process of consolidating cargo in order to maximize the space it occupies on trucks and trains so that several shipments can be delivered using fewer vehicles.

14. What is meant by freight order?

A freight order resides with a carrier or shipper and is scheduled for execution. It contains the following:

Firstly, a plan for logistical processing
Secondly, a planned departure times for the vehicle.
Lastly, an execution data

15. What is Carrier Selection? What is the use of carrier selection settings?

The idea of carrier selection is two words. You must have multiple carrier options available to keep the price point and shipping cost of your products as low as possible. Carrier selection is designed to assign the most suitable carrier to a freight order, which usually means assigning the cheapest one.

16. Could you elaborate on freight settlement?

Freight settlement is a collaborative contract that predicts and agrees upon the price of shipping goods in advance, speeding up payment processing. By reducing the friction of processing, costs are reduced—which leads to an overall leaner and more efficient process.

17. What is meant by the term charge calculation in SAP TM?

Transportation Management (TM) calculates charges for transportation on the basis of data related to agreements and charge management master data. Charge settings can be specified when creating and updating agreements.

18. What do you know about forwarding orders?

By ordering a transportation service through an LSP, a customer gives the LSP detailed instructions about the type of goods, their origin and destination, and so on. By using such orders, it is possible for the transportation activities to be planned and executed more effectively. The customer pays for these services according to the details indicated in the forwarding order.

19. How would you define procurement?

Procurement is the process of taking advantage of opportunities to acquire the products and services an organization requires to function. Procurement is the sum total of your efforts to source, monitor, and track suppliers so that you can purchase whatever you need or require. It includes sourcing for supplies, sealing contracts, managing suppliers, and settling supplier invoices as and when due.

20. Could you explain the purpose of SAP TM’s Strategic Freight Procurement (SFP)?

SFP simplifies carrier selection from start to finish by providing a comprehensive and easy-to-use comparison and selection tool, as well as a contract automation system for creating contracts with carriers.

21. What are the 7 stages of procurement?

Below-mentioned are the seven steps involved in the procurement process:

Step 0: Needs Recognition.
Step 1: Purchase Requisition.
Step 2: Requisition review.
Step 3: Solicitation process.
Step 4: Evaluation and contract.
Step 5: Order management.
Step 6: Invoice approvals and disputes.
Step 7: Record Keeping.

22. What are the five pillars of procurement?

Firstly, value for Money
Second, open and Effective Competition
Ethics and Fair Dealing
Accountability and Reporting
Finally, equity.

23. What is the distinction between purchase and procurement?

Purchasing focuses on minimizing the cost of an order, while procurement focuses on value creation and Total Cost of Ownership. In addition to the traditional metrics of cost, these processes also involve metrics like risk mitigation, contract compliance, and ongoing supplier relationships.

24. What is meant by the term freight payable?

Freight Payable includes all freight or other charges payable to a Freight Carrier for transportation services provided by such Freight Carrier in accordance with a Transportation Document or otherwise.

25. Can you differentiate between prepaid and collect freight?

Prepaid freight refers to the responsibility of the shipper for freight payments. Collect freight applies to the onus of the consignee to pay for freight.

26. What is your understanding of the logistics service provider?

When a business outsources the management of its supply chain to a third party, it gains a logistics service provider. A logistics service provider manages a company’s supply chain by providing warehousing, order fulfillment, and shipping services.

27. How would you define the SAP Logistics Information System (LIS)?

With today’s proliferation of business applications, the need for an information system increases. Logistics information systems (LISs) were developed to allow businesses to gather, aggregate, and calculate data in order to better control, monitor, and plan their operations.

28. What is SAP Materials Management (MM)?

SAP S/4HANA Materials Management (MM) offers unmatched agility and flexibility by providing a real-time, centralized inventory management system that enables you to drive supply chain operations, logistics, procurement, and financial planning. You can use the traditional material master, which stores all kinds of data for an operating concern in one record for a defined organizational area.

29. How would you describe forwarding orders?

To monitor the transportation processes in your company, you need a tool to initiate and plan shipments between locations. The forwarding order answers this need and supports the entire transportation process based on the requirements to be met.

30. What is the difference between freight orders and freight units?

The only difference is that freight unit items can stem from different business documents, such as forwarding orders, but a freight unit item is assigned to only one business document item, such as a forwarding order item.