Understanding the VSR Optimizer in SAP TM

Across the globe, businesses face the challenge of shipping goods from one place to another on a daily basis. They encountered many common questions when shipping goods, such as: How to transport goods (by truck, ship, train, or airplane)? How to meet delivery deadlines? How to keep transporting goods cost-effective???

The solution to these problems is to optimize shipments through advanced simulation techniques. These techniques allow businesses to identify shipments with similar routes, combine them, and eliminate significant costs.?

Vehicle Scheduling and Routing (VSR) Optimization provided by?SAP Transportation Management (TM)?is a powerful tool designed to streamline these processes. By assigning freight units to available capacities, VSR Optimization helps logistics managers/planners determine the most efficient delivery sequences and transportation schedules while adhering to various constraints.?

The Core Objective of VSR Optimization

The primary goal of VSR Optimization is to allocate freight units to vehicle capacities in a manner that minimizes costs while considering a multitude of multiple logistical constraints. These constraints include vehicle capacities, delivery windows, and route restrictions to specific customer requirements. VSR Optimization doesn’t just plan routes; it also optimizes the sequence of deliveries and the timing of transportation activities, ensuring that the entire logistics process is as efficient as possible.?

Prerequisites for Implementing VSR Optimization in SAP TM

?Before diving into VSR Optimization, it’s essential to set up the necessary master data and system configurations. Here’s a checklist to get started:?

1. Master Data Configuration: Define network connections to the optimization server and specify the maximum number of users. This setup is crucial for ensuring that the optimization process runs smoothly and efficiently.?

2. Planning Profile: Create and configure a planning profile. This profile should include:?

• Optimizer Settings: Specify the planning strategy, which dictates how the system will approach optimization.?

• Constraints and Costs Settings: Define the cost parameters and constraints that the optimizer must consider.?

• Capacity Selection Settings: Configure settings for selecting the appropriate capacities for each freight unit.?

Know more about: VSR Optimizer in SAP TM: Optimize Your Logistics