Parcel services

Parcel services and SAP®: single-carrier vs. multi-carrier solution

Connecting and integrating parcel services in SAP: AEB presents alternatives for all your shipping needs in SAP - from label printing to shipment tracking.

Single-carrier connection to SAP®: How to integrate parcel services like DHL

In SAP® ERP, the SAP LE-SHP component provides a shipping interface that defines basic IDoc messages, including those for exchanging notifications (DESADV) and shipping confirmations (SHPCON) with carriers. On the carrier end, however, no communication standard exists. The various freight forwarders and parcel services such as DHL, DPD, UPS, and GLS not only use different systems, they also have their own very distinct ideas about the specific content and layout.

That's why the individual integration of parcel services really only make sense for companies that plan to manage their shipping needs through a single carrier over the long term. Because unlike a multi-carrier solution, one-to-one integrations of parcel services are a recipe for stress - for three reasons.

Complex carrier specifications

Your IT department has to coordinate with freight forwarders and parcel services such as DHL, DPD, and GLS to confirm their complex specifications - especially as they relate to the format of labels, EDI messages, and cargo manifests. The same goes for the interfaces to SAP, which need to be configured separately for each carrier.

Regularly recurring expenses

Not only do freight forwarders and parcel services often have complex specifications, they also change them pretty regularly. And each time, the interface for the one-to-one carrier integration has to be updated.

One carrier, multiple systems

Major carriers don't necessarily use just one software system throughout Europe, much less worldwide. Some carriers even have four or more different systems running. For IT managers, this means connecting each of these systems to SAP one by one.

What are the options for integrating parcel services like DHL in SAP®?

If you want to save yourself the hassle of multiple one-to-one integrations of parcel services such as DHL, DPD, UPS, and GLS, you should consider using multi-carrier software, which offers a standardized one-to-n connection. Simply transmit all messages for all shipments to the multi-carrier software via a single interface. The software then distributes the data to the various parcel services in the format specified by each company. Any messages received from the carriers go directly into your SAP system.

Parcel services and SAP: single-carrier vs. multi-carrier solutions
Parcel services and SAP: single-carrier vs. multi-carrier solutions
Parcel services and SAP: single-carrier vs. multi-carrier solutions
Parcel services and SAP: single-carrier vs. multi-carrier solutions

Parcel services and SAP: single-carrier vs. multi-carrier solutions

SAP® ECC, SAP S/4HANA®, SAP TM, SAP EWM, SAP BTP: one multi-carrier solution for all SAP systems

It's particularly advantageous when the multi-carrier software is seamlessly embedded in your SAP system. Then, users are able to access all the shipping-related features - from label printing to shipment tracking - directly in their familiar SAP environment. AEB Carrier Cloud for SAP does just that. It allows plug-and-play integration into your SAP® ECC, SAP S/4HANA®, SAP TM, SAP EWM, and even SAP BTP system without making any modifications. So it won't affect the ability of your SAP system to update.

Once implementation is complete, AEB Carrier Cloud for SAP ensures that the data entered in the SAP system is transmitted to the forwarder or parcel service (DHL, DPD, UPS, GLS, etc.) for shipping - always in each company's specified format. You can also integrate label printing and trigger it directly from the packing station. The shipment tracking offers a transparent overview of the milestones reached in the movements of goods.

AEB Carrier Cloud – integration in various SAP systems
AEB Carrier Cloud – integration in various SAP systems

Reasons for multi-carrier integration in SAP®

  1. 300 forwarders and parcel services in one fell swoop
    With Carrier Connect, a single interface lets you connect to more than 300 forwarders and parcel services. Our overview shows you which carriers are available here for shipping.

  2. Much less work for your Application Management teamNo more need to spend your time and resources managing APIs or interfaces to your transport partners. Whenever a carrier modifies its specifications for label formatting or EDI messages, for example, we automatically implement the changes in Carrier Connect.

  3. Flexibility in choice of forwarders and parcel services
    You can simply switch carriers - with minimal overhead for your IT. You also have flexibility in expanding the scope of services - automatically selecting the ideal carrier based on criteria such as price or transit time, for example.

What features are available in AEB Carrier Cloud for SAP®?

AEB Carrier Cloud for SAP is a multi-carrier solution that integrates all key shipping features for forwarders and for parcel services such as DHL, DPD, UPS, and GLS into your SAP system.

  • Connect 300+ forwarders and parcel services to SAP®
  • Generate shipping labels, loading lists, and EDI messages
  • Keep an eye on all shipping orders in control center
  • Track and trace shipments in SAP
  • Manage shipments using the Fiori® app

What does a multi-carrier solution for SAP® cost?

As you might suspect, there is no one-size-fits-all answer to this question. The costs of our Carrier Connect solution depend on the shipping volume you wish to manage through SAP.

A price example

  • Annual shipping volume: 5,000 shipments
  • Monthly costs: 352 euros (plus a one-time activation fee)

We also have packages to accommodate higher volumes. Please contact us for a quote.

Simplify the transition to SAP S/4HANA

When your SAP environment changes because of your migration to SAP S/4HANA, only the integration with Carrier Cloud for SAP needs to be updated. The connection to the more than 300 carriers available through the AEB platform remains unchanged. This simplifies the transition and gives you a solution that looks ahead to the future.

Bottom line: optimal parcel service integration for shipping in SAP®

A one-to-one integration might make sense if you are fairly certain that you'll be working with just one or a select few carriers such as DHL, DPD, UPS, or GLS over the long term. The workload for your IT department is then manageable. This also gives you the option to configure an in-depth integration, which makes sense for very close partnerships.

If you use a variety of forwarders and parcel services for your shipments, then a multi-carrier solution like Carrier Connect is the better choice. When choosing a service provider, you should consider more than just the technical factors and the range of features: You should also compare the number of available forwarders and parcel services, as well as the provider's level of performance. The software must be capable of maintaining the appropriate throughput when printing labels and performing other key functions, even with high shipping volumes.

Single-carrier integration

Pros

  • Not dependent on third parties
  • In-depth integration possible

Cons

  • Highly complex (must meet requirements of each parcel service, etc.)
  • Expertise required
  • High testing and maintenance costs
  • Approval by each individual carrier required
  • No flexibility in choice of ideal parcel service

Multi-carrier add-on solution

Pros

  • Many forwarders and parcel services (DHL, GLS, etc.) already connected
  • New carrier connections managed by software provider
  • Labels, EDI messages, and routing data managed by software provider
  • Solution professionally run and continually improved by software provider
  • Support available
  • Generally transaction-based billing

Cons

  • Not all carriers can be connected
  • Only makes sense for stable shipping volumes