Logistics Execution (LE)

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Table of content

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 Table of content
1 Logistics Execution (LE)
1.1 Goods Receipt Process for Inbound Deliveries
1.2 Direct Store Delivery
1.3 Decentralized Warehouse Management (LE-IDW)
1.4 Warehouse Management System (WMS)
1.5 Shipping (LE-SHP)
1.6 Transportation (LE-TRA)
1.7 Task and Resource Management (LE-TRM)
1.8 Yard Management

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 1 Logistics Execution (LE)

1.1 Goods Receipt Process for Inbound Deliveries

Purpose
The goods receipt process for inbound deliveries is an essential part of the supply chain. This process includes the steps after creation of the purchase order:
notification, the inbound delivery, subsequent putaway of goods, and the goods receipt posting of the ordered goods.
The significant advantage of depicting the goods receipt process through the inbound delivery function is that you can execute many processes in advance,
even before the actual goods receipt posting takes place. You have all the necessary information beforehand because the supplier notifies you of the inbound
delivery ahead of time. The inbound delivery describes exactly which materials or pallets can be received on what date and at what time.
The following functions are available with the goods receipt process for inbound deliveries:
Transfer order for inbound delivery
Like the outbound delivery, the inbound delivery is a request for putaway that is sent to the warehouse. You can create a transfer order for putaway from an
inbound delivery.
Batch information
The batch split that is already possible for outbound deliveries is also available for inbound deliveries, since batches are often first identified in the inbound
delivery.
Inventory management of packaging materials
Goods receipt for inbound deliveries
Define order confirmation for inbound delivery
You can use this key to configure your settings such that planned inbound deliveries are automatically created through a collective processing run.
Inbound delivery monitor
Determination of goods receiving point
Incompletion log
Change documents
Document flow for inbound delivery

Caution
Make absolutely sure that you do not mix up the goods receipt process for inbound delivery (for example, transaction VL32N) with the functions you
already know, such as goods receipt (post) for unknown purchase order (transaction MBOA/MIGO), or cancellation of the goods receipt (transaction VL09
as opposed to MBST/MB0A). You must organize your tasks in such a way that the goods receipt posting is only executed using one of the two ways
described.

Process flow
The inbound delivery process starts when the goods are staged at the vendors shipping point, and it ends when the ship-to party makes an acquisition posting
for the goods.
1. Create a purchase order or a scheduling agreement.
2. The system can determine a goods receiving point.
3. The system creates an inbound delivery automatically if you receive a shipping notification via Electronic Data Interchange (EDI).
4. You can also create an inbound delivery manually if you do not use EDI to communicate with your supplier.
5. Repack the goods, if necessary.
6. Put the materials away by creating a transfer order in the warehouse.
7. Post the goods receipt.

1.2 Direct Store Delivery

Direct Store Delivery (DSD) is a business process that is used in the consumer products industry to distribute goods directly to the end customer. In the
Direct Store Delivery process, goods are not distributed via a retail companys warehouse/distribution centers.
SAP Mobile Direct Store Delivery (MDSD) is an optional component in a Direct Store Delivery scenario. You can use this optional application on mobile
devices so that your field sales employees do not have to document all the data from their tours on paper. When the sales employees return from a tour, they
can upload the data they entered on the mobile device to the backend of DSD ( Direct Store Delivery (Backend) ). The data can then be processed.

1.3 Decentralized Warehouse Management (LE-IDW)

Use
This component describes the SAP Warehouse Management System (WMS) as a decentralized stand-alone system that is operated separately from a
centrally operated ERP (Enterprise Resource Planning) system.

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 To achieve a high level of efficiency in the supply chain, all system components involved must:
interact smoothly
be flexible enough to adapt to changes
perform their tasks cost-effectively and quickly
The warehouse, which is used not only for the storage of goods but also particularly for the distribution of goods, represents the link between internal and
external logistics. Since warehouse processes constitute an essential integral part of the supply chain, the SAP WMS is integrated with the entire logistics
process. In addition, in order to achieve the flexibility required, the SAP WMS is able to carry out these warehouse processes independently.

Implementation Considerations
Especially in warehouses characterized by high throughput, the Warehouse Management System must always ensure quick response times. If the Warehouse
Management System runs on the same machine as the ERP system, update problems may arise. An additional requirement is that the WMS must be
available 24 hours a day - regardless of whether other systems are available or not. This 24-hour availability must be combined with low downtime risk to
ensure that it is possible for the WMS to perform all logistics processes which are often closely integrated.
Not only the SAP WM system but also third-party systems must be able to interact smoothly with the SAP system.
For a complete description on how to configure your system for using the decentralized WMS, refer to the documentation of the Implementation Guide (IMG)
under Logistics Execution Decentralized WMS integration .

Integration
You can interface the Warehouse Management System as a stand-alone component with the SAP system or integrate the SAP Warehouse Management
System with any ERP system you prefer. In both cases, the ERP system and the Warehouse Management System can run on separate machines.
A warehouse managed with SAPs decentralized WMS always communicates with exactly one ERP system.
In the decentralized WMS, there is no integration with a Transportation Management System (TMS).

Features

In the first step, the Warehouse Management System has been implemented for the "distribution center" scenario. This scenario describes a warehouse that is
primarily used for the distribution of goods and is not linked to a production plant. All business processes, including quantity-based inventory management, are
carried out in the ERP system whereas the decentralized WMS is responsible for the necessary processes for goods receipt, warehousing, and distribution.
As a result, this new functionality is split up into two areas:
SAP system as an ERP system
SAP system as a warehouse management system (WMS)

Application Area
You can use the warehouse as a stand-alone component if you plan to implement distribution center control on a separate decentralized machine that is not
linked to the business application. You can use the SAP system to operate only one or both of these systems.
Deliveries are always created in the central ERP system.

1.4 Warehouse Management System (WMS)

Purpose
The SAP Warehouse Management system (WMS) provides flexible, automated support in processing all goods movements and in managing stocks in your
warehouse complex. The system supports scheduled and efficient processing of all logistics processes within your warehouse.

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 Implementation Considerations
If you manage your warehouse stocks with SAP Inventory Management (MM-IM), you manage the quantities and values of stocks in several storage
locations.
In comparison, the WMS allows you to map your entire warehouse complex in detail to storage bin level. Not only do you gain an overview of the entire
quantity of a material in the warehouse; you can also always determine exactly where a certain material currently is in your warehouse complex. With the
WMS you can optimize the use of all of your storage bins and warehouse movements, and store material stocks from several plants together in warehouses
with random storage.

Integration
The WMS is fully integrated into the SAP environment. Business processes, which you trigger in other application components, lead to physical goods
movements in your warehouse. You organize, control, and monitor these goods movements with the WMS.
For more information, see Interfaces.

Features

Storage Bin Management

You map your entire storage facilities in the Warehouse Management system. In doing so, you can set up various storage facilities such as automatic
warehouse, high rack storage areas, bulk storage or fixed storage bins in various storage types, according to your needs.
You manage material stocks at storage bin level. You can define these storage bins according to your own requirements. Every storage bin in your warehouse
is mapped in the system. This lets you monitor all warehouse movements at all times. You can follow where a certain material is in your warehouse.
SAP Inventory Management and the SAP Warehouse Management system are fully integrated. With its inventory procedure and recording of stock
differences, the system ensures that the inventory balance in Inventory Management always corresponds to the warehouse stock in the WMS.
Goods Movements
You process all goods movements that affect your warehouse via the WMS. This includes goods receipts, goods issues, stock transfers, material staging for
production, automatic replenishment, managing hazardous materials, and processing stock differences in your warehouse.
The WMS optimizes warehouse capacities and material flows using putaway and stock removal strategies, which you can adjust to suit your individual needs,
or by using storage units.

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 Planning and Monitoring
The WMS offers you an overview of all goods issues and warehouse stocks. The system supports you in planning, monitoring, and optimizing work
processes. For example, it gives you a foresighted view of the workload in the coming days or allows you to intervene in good time during critical warehouse
processes, so that you can execute warehouse movements on time. Via the RF monitor, you get an up-to-date picture of all of the activities in the warehouse,
which means that you can control the actual work in the warehouse using the RF monitor.
Radio Frequency Connection
In order to structure the work in the warehouse efficiently and cost-effectively, you control the warehouse workers work steps clearly and simply via mobile
radio-frequency terminals.
Radio frequency connection (RF connection) to mobile date entry achieves quick and flawless data transfer. The RF machines receive data directly from the
SAP system and transfer data back to the system. Using barcodes, you can record information to be recorded and verify it. This means that you ensure a high
standard of quality in your warehouse.
Decentralized WMS
You can run the WMS as a standalone decentralized warehouse management system, independent of a central enterprise resource planning system (ERP
system). For more information, see Decentralized Warehouse Management.
Warehouse Control
WMS also has an interface to external systems (warehouse control units), so that you can integrate automatic putaway, stock removal systems or fork lift
control systems into the warehouse management system for all warehouse movements with the help of this ALE interface.

1.5 Shipping (LE-SHP)

Implementation Options
Shipping is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles.
In shipping processing, all delivery procedure decisions can be made at the start of the process by
Taking into account general business agreements with your customer
Recording special material requests
Defining shipping conditions in the sales order
The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances.

Integration
The Shipping component is integrated under the Logistics Execution component. Shipping is a subsequent activity of the Sales component.

Range of Functions
The shipping module supports the following functions, which include but are not limited to:
Deadline monitoring for reference documents due for shipment (sales orders and purchase orders, for instance)
Creating and processing outbound deliveries
Planning and monitoring of worklists for shipping activities
Monitoring material availability and processing outstanding orders
Monitoring the warehouse's capacity situation
Picking (with optional link to the Warehouse Management system)
Packing deliveries
Information support for transportation planning
Support of foreign trade requirements
Printing and transmitting shipping documents
Processing goods issue
Controlling using overviews of
Deliveries currently in process
Activities that still are to be carried out
Possible bottlenecks
A list of deliveries posted as goods issue in the shipping department could be used to form a worklist for the billing department.

1.6 Transportation (LE-TRA)

Purpose
Transportation is an essential element in the logistics chain. It affects both incoming and outgoing goods. Effective transportation planning and processing
ensure that shipments are dispatched without delay and arrive on schedule. Transportation costs play an essential role in the calculation of the price of a
product. It is important to keep these transportation costs to a minimum so that the price of a product remains competitive. Efficient transportation planning
and processing helps to keep these costs down.

Integration

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 As illustrated in the following graphic, you can use the SAP transportation functions to plan and process:
Incoming shipments in Materials Management based on purchase orders and shipping notifications
Outbound shipments in Sales and Distribution based on sales orders and deliveries
The graphic below illustrates this process:

Transportation planning and processing is based on the shipment document. This document facilitates the flow of information from the shipper to the customer
and to any service agents who are involved in the business transaction.

Features
The transportation component includes basic transportation processing functions:
Transportation planning and shipment completion
Shipment costs calculation
Shipment costs settlement
Shipment costs calculation for individual customers
Billing of customer freight
Service agent selection
Management of means of transport and utilities
Follow-up and supervision of shipments
Management of shipment costs
These transportation functions can handle planning and processing for both inbound and outbound shipments. You can control and monitor the entire
transportation process from the planning stage to goods issue at your shipping point (for outbound shipments) or vendor location (for inbound shipments),
through to goods receipt at the customer location or your plant.
Other available functions include: shipment costs calculation and settlement with the service agent, transfer to accounting, credit memo creation and invoice
verification.

Note
This documentation describes procedures in outbound shipment processing. Unless specifically stated otherwise, the information here also applies to
inbound shipment processing. Differences between the two will be pointed out where necessary.
For more information about creating and processing inbound deliveries, see the Confirmations section of the documentation for Purchasing (MM-PUR).

1.7 Task and Resource Management (LE-TRM)

Purpose
SAPs Task and Resource Management (TRM) maximizes the efficiency of your warehouse processes by:
Creating optimal tasks
Optimizing the allocation of these tasks to warehouse resources
Controlling task execution to prevent resource bottlenecks in the warehouse
Providing visibility of all warehouse processes
Providing warehouse managers with troubleshooting tools to effectively deal with problems, both before and after they arise
Supporting value-added activities
Providing mobile presentation capabilities, enabling resources to perform tasks via radio frequency devices customized to their personal needs

Implementation Considerations
TRM is fully integrated into SAPs Logistics Execution System ( LES) .

Integration

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 LES
LES and TRM work together to manage and maintain warehouse operations. However, each system maintains a separation and has clearly defined
responsibilities. LES provides the details about what activity should be performed for which object, while TRM determines how and when the request is
executed.

Application LES TRM

Role Planner Expeditor

Area of Responsibility Movement Distribution of work among warehouse

Operation demands
High-level scheduling and planning
Inventory management (down to storage bin
level)
resources
Control of execution pace
Reaction to execution events
Resource control
Control of intermediate storage bins and various
bin characteristics, such as geographical
constraints and optimization factors
Communication of work instructions to resources
via their presentation devices

Information Exchange Triggers processes in TRM Requests guidance from LES

Feeds back data upon request completion

The integration between the two systems is seamless. You can drill-down from LES information into TRM and logically attach the decision made by LES
about source or destination bins to the execution activity controlled by TRM .

Value-Added Services (LE-WM-VAS)

Value-Added Servicescan be integrated withTRM. For more information, seeValue-Added Services Integration with TRM.

TRM Packages
Core TRM comprises of the following integrated packages:
Resource Management
Request Management
Task Management
Route Management
Bin Management
In addition, TRM is integrated with the following non-core TRM packages:
Presentation Management
TRM Monitor and TRM Alert Monitor
Archiving
TRM LES Interface

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 Features
TRM provides several features that support the optimization of warehouse processes. These include the following:

Task-Resource Optimization
TRM optimizes warehouse processes by determining optimal routes and prioritizing tasks to be executed by warehouse resources. For more information,
see Task-Resource Optimization

Execution Control
TRM enables you to control the execution of tasks in predefined areas of your site, facilitating task-resource optimization by preventing the crowding of
resources. For more information, see Execution Control .

Monitoring and Response Tools

TRM enables you to monitor all aspects of warehouse operations and invoke methods to respond to constantly changing circumstances in the warehouse.
For more information, see TRM Monitor .

Alerts and Troubleshooting Tools

TRM provides information on actual and arising problematic situations in the warehouse, and enables you to handle exceptions. For more information, see
TRM Alert Monitor .

Mobile Presentation
TRM allows you to customize the presentation of data to a resource on any presentation device. For more information, see Presentation Management .

1.8 Yard Management

Purpose
SAPs Yard Management (YM) extends warehouse management beyond the physical walls of the warehouse, enabling management and control from the
time that goods are planned to arrive at the warehouse.

Integration

Logistics Execution (LE)

YM is integrated with Logistics Execution through an interface (package LEINT).

Transportation(LE-TRA) and Shipping (LE-SHP)

YM integrates with the LES components for Transportation and Shipping . Shipments and deliveries are an integral part of YM , influencing location
scheduling and location determination. Shipments are updated upon completion of check-in, check-out, loading and unloading activities, while deliveries are
updated by check-in and scheduling activities. In addition, shipment data, such as forwarding agent, determines the list of possible vehicles that can be
assigned in YM to a specific delivery or shipment.

Warehouse Management (LE-WM)

YM is integrated with Warehouse Management (WM) . Nevertheless, YM can work without a full WM implementation, as long as certain WM entities,

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 such as doors and staging areas, are defined.

Cross-docking (LE-WM-CDK)
Planned cross-docking information is provided to YM , which influences location scheduling and location determination. In addition, location scheduling is
accessible from Cross-Docking , with the availability of doors and staging areas determining the viability of cross-docking decisions.

Features
YM provides the following features:

Management of Yard Processes

YM enables you to manage the following yard processes:
Check-in and check-out of vehicles
Scheduling of doors and staging areas for vehicles (manually or based on the system's automatic scheduling mechanism)
Creation and execution of movements in the yard (manually or based on the system's location determination mechanism)
Creation and execution of operations in the yard, such as weighing and sealing/un-sealing of vehicles
Registration of the start and finish of loading and unloading of vehicles (by delivery or for whole vehicle)

Provisionof Information to Forwarding Agents

YM provides Business Partners, such as freight forwarders, with information on their vehicles, including time in yard, current location and processing status.
This information may be provided either via the ERP system or via the Web.
For more information, see Provision of Yard Inventory Information .

Monitoringand Response Tools

YM enablesyou to monitor all aspects of yard operations and invoke methods to respond to constantly changing circumstances in the yard.
For more information, see Yard Monitor .

Alert and Troubleshooting Tools

YM providesinformation on actual and arising problematic situations in the yard, and enables you to handle exceptions.
For more information, see Yard Alert Monitor .

Scheduling Chart
YM enables you to view, manually create and maintain scheduling activities via the yard scheduling chart, a graphical representation of scheduling activities
for the yard.
For more information, see Yard Scheduling Chart .

Mobile Presentation
YM allows you to customize the presentation of data to a resource on a variety of presentation devices.
For more information, see Presentation Management .

Yard Management Landscape

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