SAP – Logistic Execution

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 SAP – Logistic Execution

Introduction

Now that we have covered the logistic process in the Supply

Chain, let revisit Widget Inc with fresh eyes. We will : -
• Put it all together.
• Highlight the various integration points
• Understanding the overall SCM process in the context of
Widget inc.

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 SAP – Logistic Execution

Business case - Introduction to Widget Inc.

• Produces and sells widgets to the UK.

• Takes the orders from customers and ship them on
the same day.
• Picking and packing are done on the same day.
• Cut off time to start the logistic process is based
region.
• Customers divided into four regions and the freight
forwarder selected based on region.
• There is also a parcel shipment for anything less
that 10 KG.
• Shipment are created based on the number of
delivery.
• Any shortages are managed with the customer.
• The warehouse has it’s own WM system.

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P2P flow

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Scenario Plan to Inventory
Description
The worksteam for Forecasting, Production Planning & Scheduling, Shop Floor Control and Execution, Production Cost Controlling, and
Production reporting. Sometimes also included are production Quality Control and WIP inventory management
Business points
• Demand from forecast, sales orders, STO and MRP runs will create the Planned order.
• RDD from sales order and STO feed the demand for materials, which uses ATP to calculate the production date and quantities.
• The planned order / Production order will further create demand (based on BOM) for raw materials.
• The demand for the raw material will trigger a replenishment, either via a PO or STO .
• This will feed back into ATP, delivery dates and storage location.
• The Goods Receipt process could be either in based on the PO or inbound delivery.
• Any incorrect dates in the production or PO will have an impact on the inventory levels and ATP calculations.

Points of consideration
• Ensure that the production dates are correct to feedback into ATP.
• STO can be triggered based on demand from plants.
• IM or WM movements of materials to feed production

SAP Notes

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P2P flow

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Scenario Procurement to Pay
Description
Workstream covering the activities of requesting (requisitioning), purchasing, receiving, paying for and Goods Receipts and services.
Commonly referred to as procure-to-pay.
Business points
• Purchase Requisition and Purchase order triggered via MRP.
• The RDD -> Confirmation date -> ASN. Each has a role in clarifying the date in which the material will arrive
• Goods Receipts and Inbound delivery is here.
• Subcontracting.
• Inbound deliveries can be grouped into shipments for collections
• STO are managed here.
• Sloc can also be determined in PO

Points of consideration
• Incorrect dates or rejected GR can cause issues downstream
• GR is a logistic process.
• Stock putaway.
• Material Movements.

SAP Notes

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O2C flow

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Scenario Order to Cash
Description
Workstream that cover activities of Sales Quotation, Standard Order, Shipping, Delivery, Picking, Posting Goods Issue
Warehouse Picking Execution, Packing, Posting Goods Issue, Billing and Collection.
Business points
• Sales order – Rule based Delivery block, Shipping point and route determination, RDD and ATP.
• Delivery – creation, automation, route, Forwarding agent determination and ATP redetermination
• Picking – IM or WM
• WM determination in delivery based on plant and Sloc
• Packing – Handling Unit management in the delivery or shipment
• Shipment – Automatic creation, Transport management, Forwarding agent selection, route determination, vehicle determination

Points of consideration
• The part of logistics that receives the most focus, due to its client facing nature
• RDD date, and shipping location will drive a lot of the logistic processes
• Picking and packing are internal logistic operations and is driven by the RDD from the SO
• Shipments is in the transportation module, but links to logistic to ensure deliveries arrive on time.
• Picking can be done either in WM and IM

SAP Notes

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Supply Chain Management in SAP R/3

Supply Chain Management

Product dev and Customer Warehousing Physical Outsourcing/ Performance

Procurement Manufacturing
commercialization service management distribution partnerships measurement

Supplier Order KPI

Marketing Storage Picking Transportation Subcontracting
Relationship Management reports

Purchase
Planning Warehouse Delivery
Order

Inbound Handling
Production
delivery Unit

Inter-site
Payments
Transfer

Storage

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