GlossaryEN1 min readUpdated: Jun 16, 2026
Central Freight Management
Central freight management consolidates all transport bookings of an organisation under a single governance unit rather than distributing responsibility across departments, plants, or branches.
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Source: https://www.sap.com/products/freight-management.html
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Logistics Concept
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Definition & Explanation
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.
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