SAP TM — Direct Shipment Options (DSO)
Introduction
In today's fast-paced supply chain environment, transportation efficiency is a critical competitive differentiator. SAP Transportation Management (SAP TM) offers a powerful capability called Direct Shipment Options (DSO) that enables businesses to streamline parcel shipping operations — bypassing complex planning steps when the carrier and route are already predetermined. Whether you are managing high-volume parcel deliveries or optimizing last-mile logistics, DSO provides an automated, cost-effective path from order to execution.
What is Direct Shipment Option (DSO)?
A Direct Shipment Option (DSO) is a feature in SAP Transportation Management that allows you to commission a carrier to transport parcels from one shipping point to several consignees.
In standard SAP TM planning, the process flows from a Transportation Request (TRQ) → Freight Unit (FU) → Freight Order (FO). However, in a DSO scenario, when the carrier and route are already known and no transportation planning is required, the Freight Unit planning step can be bypassed, and the system moves directly from the transportation requirement to a Freight Order.
This makes DSO particularly well-suited for parcel shipment processes, where SAP TM creates parcel shipments based on deliveries from an ERP system and assigns them to freight orders automatically.
Key Features & Benefits
- Most Cost-Effective Carrier Selection: The system automatically selects the most cost-effective direct shipment option. This step can also be replaced with custom implementations to meet specific business needs.
- Automatic Freight Order Assignment: Using the DSO_RESULT strategy, the system determines the direct shipment option and assigns freight units directly to a freight order — without manual intervention. If no suitable freight order exists, the system creates a new one.
- Savings Visibility & Consolidation Insight: In the personal object worklist for road freight orders and in the transportation cockpit, the total of all selected DSO amounts for all freight units planned as part of a freight order is displayed. The difference between this total and the freight order amount indicates the potential savings from consolidation.
- Reduced Planning Complexity: DSO eliminates the need for the transportation cockpit for planning, reducing process complexity and accelerating execution.
- Flexible Processing Modes: DSO supports both automatic background processing and manual selection via the Freight Unit user interface, giving planners full control when needed.
- Parcel Shipment Support: SAP TM natively handles parcel shipments through DSO — a capability that is often underestimated but highly valuable for businesses managing high-volume parcel flows.
How DSO Works in SAP TM
- Creation of an Order/Delivery-Based Freight Unit: Based on sales orders or deliveries from an ERP system, SAP TM creates freight units for direct shipment processing.
- Determination of Direct Shipment Options: SAP TM evaluates the availability of direct shipment options based on factors such as the shipping point, consignees, carrier capabilities, freight agreements, and transportation lanes. The system identifies the most cost-effective option automatically.
- Selection of DSO Strategy: Depending on the configured strategy in the Freight Unit Type Customizing, one of two default strategies is applied:
- DSO_RESULT: The system determines the DSO and automatically assigns freight units to a freight order.
- DSO_DEF: The system determines the DSO but does not perform further processing. Planners can then manually assign freight units via the UI or run the batch report /SCMTMS/DIRECT_SHIPMENT_BATCH.
- Assignment to a Parcel Freight Order: Once the DSO is determined, the freight units are assigned to an existing freight order that meets the requirements in terms of source location, carrier, and pick-up date. If no suitable freight order is found, the system creates a new one and copies the freight unit data and the direct shipment option to this order.
- Postprocessing: After assignment, postprocessing activities such as bill of lading number generation, manifest printing, and label output can be triggered from the freight order.
Configuration & Setup
- Freight Unit Type Configuration (SPRO): Navigate to SPRO → SAP Transportation Management → Transportation Management → Planning → Freight Unit → Define Freight Unit Types. Under the Direct Shipment Options section, configure:
- Direct Shipment Option Type
- Carrier Selection Settings (or Carrier Selection Condition)
- Direct Shipment Strategy (DSO_RESULT or DSO_DEF)
- DSO Result Rule
- Freight Order Type or Freight Order Type Determination Condition
- Purchasing Organization
- Carrier Selection Settings: In the Fiori, open Administration Planning Profile Settings → Carrier Selection Settings. Create a new entry with:
- Type: Carrier Selection for Direct Shipment Option
- Planning Strategy: TSP_DEF
- Transportation Charges Interpretation option
- Freight Agreement Setup: Navigate to SPRO → SAP Transportation Management → Transportation Management → Master Data → Agreements and Service Products → Define Freight Agreement Types. Create the agreement type with time determination settings, departure/transit/arrival calendars. Then create the Freight Agreement in Fiori with the carrier, calculation sheet, and carrier service level codes.
- Transportation Lanes Master Data: Create transportation lanes defining routes and available carriers for direct shipments. Assign the Means of Transport (MoT) to the lane and link it to the carrier (TSP).
- Freight Order Type Configuration: Use or copy the default freight order type 3000, which is pre-configured for parcel shipment with:
- Sequence Type of Stops: Star-Shaped Based on FU Stages
- Draw Bill of Lading Number: Draw Automatically When Item Is Changed
- HBL Building Strategy: PRCL_SHP
- Web Dynpro Application Config.: /SCMTMS/FRE_ORDER_MANIFEST
- Output Profile: /SCMTMS/TOR_PRINT_PARCEL_ROOT
- Automatic DSO Determination (bgRFC): From TM 9.5 onwards, the DSO strategy is registered for asynchronous processing via bgRFC. Ensure the bgRFC configuration is correctly set up by SAP Note 2526415. If automatic DSO determination is not working, check transaction SBGRFCMON for unprocessed bgRFC entries (SAP KBA 2638069).
- Carrier Service Level Codes: Maintain service level codes in the carrier master via transaction BP → Carrier BP Role → Vendor Data tab → Carrier Service Code.
Use Cases & Scenarios
Scenario | Description | Outcome |
Parcel Shipment to Multiple Consignees | A single shipping point dispatches parcels to multiple end customers using a pre-agreed parcel carrier. DSO identifies the carrier automatically based on freight agreements and transportation lanes. | Freight units are automatically assigned to a parcel freight order; bill of lading numbers and labels are generated without manual planning. |
High-Volume Parcel with Zone Skipping | Multiple parcel items destined for the same geographic area are consolidated at a consolidation center using LTL, rather than sending each item individually via parcel carrier. | Significant cost savings achieved by consolidating shipments instead of individual parcel dispatch; DSO and optimizer work together to identify the most cost-effective option. |
Predetermined Carrier Route (No Planning Required) | The carrier and truck are already finalized for a specific route from manufacturer to supply destination. No transportation planning is needed. | The freight unit planning step is bypassed; the transportation requirement directly triggers a freight order, reducing process steps and accelerating execution. |
DSO from ERP Delivery | Outbound deliveries from an ERP system trigger DSO determination in SAP TM to identify the best carrier option before committing the freight order. | Transportation proposal and DSO are simulated and evaluated; the most cost-effective option is returned and committed to the freight order. |
How to Create/Assign Freight Orders
The most operationally impactful setting. Controls what happens after a direct shipment option is selected:
Rule | Behavior |
Convert FU → FO for Direct Shipment | Each FU is converted into its own dedicated Freight Order |
Assign FU → FO (same source, carrier, pick-up date) | FU is grouped with an existing matching FO; a new one is created if none found |
Which to choose?
- For FTL scenarios where every load is its own shipment → use Convert FU → FO
- For parcel/LTL scenarios where multiple FUs share a carrier and date → use Assign to FO to group them efficiently
DSO vs. VSR Optimizer — When to Use Which
A common question is: why not just use the optimizer for everything?
Dimension | DSO | VSR Optimizer |
Consolidation | No — each FU ships directly | Yes — multi-FU, multi-stop planning |
Speed | Fast — no optimization run | Slower — complex computation |
Best for | Known mode/carrier (Parcel, FTL) | Multi-carrier, multi-stop, complex routing |
Cost basis | Freight agreement rates per carrier | Full tour cost comparison |
Integration | Can feed optimizer as cost baseline | Can use DSO as fallback benchmark |
The two capabilities are also complementary: DSO can be used inside a VSR run as a cost benchmark. If the optimizer determines that consolidation is cheaper, it chooses the consolidated solution; if direct shipping wins on cost, it keeps the DSO result.
Scenario:
In this scenario I created a STO intercompany with 2 plants and we can see the FU:
As configuration in FU type the system created a direct Freight Order:
Now I have created another STO which is in the same day and time to be delivery date and will assign to the same Freight Order:
Conclusion
Direct Shipment Options (DSO) in SAP TM represent a powerful and often underutilized capability that bridges the gap between transportation planning and execution efficiency. By enabling automatic carrier selection, by passing unnecessary planning steps, and providing clear visibility into consolidation savings, DSO empowers logistics teams to reduce costs, accelerate deliveries, and simplify operations.
Whether you are implementing a high-volume parcel process, managing predetermined carrier routes, or exploring zone-skipping consolidation strategies, DSO offers the flexibility and automation needed to meet modern supply chain demands. With proper Customizing of Freight Unit Types, Freight Agreements, Transportation Lanes, and bgRFC configuration, DSO can be seamlessly integrated into your SAP TM landscape.
For further reading, refer to SAP KBA 2403748 (DSO Master Data and Customizing for Charges Calculation) and SAP KBA 2638069 (Automatic DSO Determination troubleshooting).
Support Documentation:
Hope this helps you!
Thank you and regards.
Rogerio Lima.
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