# Central Freight Management

*Last updated: 2026-06-16*

> Central freight management consolidates all transport bookings of an organisation under a single governance unit rather than distributing responsibility across departments, plants, or branches.

Central freight management consolidates all transport bookings of an organisation under a single governance unit rather than distributing responsibility across departments, plants, or branches. The operational backbone is typically a Transport Management System (TMS), through which freight requests, carrier selection, routing, and shipment tracking are handled in a standardised way. The primary lever is volume consolidation: pooling all freight spend centrally yields stronger carrier rates and eliminates fragmented, parallel negotiations. The model also creates company-wide visibility into shipment status, costs, and carbon emissions – a prerequisite for meaningful reporting and continuous network optimisation. Unlike a decentralised setup, successful implementation requires a clearly defined internal governance process to ensure local operational requirements are not overridden by central efficiency targets.

**Source:** [https://www.sap.com/products/freight-management.html](https://www.sap.com/products/freight-management.html)

## Quick Facts

| Property | Value |
|---|---|
| Term | Central Freight Management |
| Language | EN |
| Word count | 118 |
| Last updated | 2026-06-16 |
| Source | https://www.sap.com/products/freight-management.html |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/central-freight-management](https://www.freight-academy.com/en/glossary/central-freight-management)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/central-freight-management](https://www.freight-academy.com/api/md/glossary/en/central-freight-management)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/central-freight-management/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/central-freight-management/llm-summary?lang=en)*