Article 69 - FO Creation

Article 69 - FO Creation


Article 69: How Does Freight Order (FO) Creation and Allocation Work in the SAP MM-TM Process?

Freight Orders are planning documents representing actual or planned transportation events, such as shipments or collections. They bring together resources (trucks, drivers), destinations, and constraints from MM and TM.

FO Creation:

  • Triggered automatically from outbound deliveries, purchase orders, or STOs in MM.
  • Consolidation: Multiple deliveries may be grouped onto one FO based on compatibility (dates, destination, material requirements).
  • Manual FO: For exceptions or one-off moves.

FO Allocation Principles:

  • Carrier allocation: System assigns carriers/trucks/drivers based on criteria (rate, capability, availability).
  • Load planning: Considers vehicle capacity, route constraints, driver hours of service, and legal restrictions.
  • Exception handling: Alerts if allocation fails (e.g., no available carrier, capacity limits).

Allocation Steps:

  1. Requirement identification from MM.
  2. FO generation in TM.
  3. Resource allocation run: auto-matches the best available carrier/truck/driver.
  4. User review and acceptance or rerun if constraints (cost, service) not met.



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