Logistics Overview 1. Concept Of Total Cost Analysis Logistics & Bottom Line Logistics Overview 2.
SAP Logistics Overview
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Transcript of SAP Logistics Overview
SAP Logistics & Operation Material Management
Maximize cost savings for all spend
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 2
The Whole Picture
SAP CRM
Opportunity Management Marketing Channel management Multi-channel sales Customer Interaction center
Master Data Management Document Management Project Planning & Execution Design Collaboration System Interfaces (e.g. for CAD, ) Change & Configuration Management Guided procedures / Adobe Interactive forms
mySAP PLM
Production Sales and Distribution
Return Delivery Process Cross-Company-Code Stock Transfer
Materials Requirements Planning Make-to-Order, Engineer-toOrder Production
Logistics Execution
Integrated processes with transportation and warehouse management.
FinancialsMaterial Stock Account Posting Accounts Receivables Payment
Material Management
Analytics
Controlling
Analytical insight at all company levels.
Profitability Analysis Product Cost Controlling (for Make-to-Order Scenarios)
mySAP SRM
SAP ERPmySAP SCM
Auctions Category Management Contract Negotiation and Management Strategic Sourcing with demand aggregation
Advanced Demand and Production Planning Supplier Network Collaboration Global ATP Transportation Optimization Advanced Scheduling
SAP 2008 / Page 3
ERP Process Flow
Stocks
Material Requirements Planning
Demand
Forecast
Requirement
Production (Internal Procurement)
Purchasing (External Procurement) Invoice
Goods Receipt Warehouse Management Goods Issue Transfer Posting
Invoice Verification
AccountingSales and Distribution
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 5
Organizational Structure
Organizational grouping of enterprise areas which, for legal reasons or for other specific business-related reasons or purposes, are grouped together. SAP 2008 / Page 6
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 7
Master Data
Material Master Service Master Vendor Master Inforecord Source List Quota Arrangement Vendor Evaluation Condition Records Output Message Excise Masters
Data which is used long-term in the R/3 System for several business processes. SAP 2008 / Page 8
Master Data in Procurement Process
The material master and vendor master are the most important master data in the procurement process. You can store data for a particular material (for example, delivery time and purchase price) on a vendor basis in info records. SAP 2008 / Page 9
Partner Role
By maintaining partner roles in the vendor master record, you can distribute one or more of roles among different vendor master records. SAP 2008 / Page 10
Material Master
The integration of all material data in a single database object prevents the problem of data redundancy. SAP 2008 / Page 11
Material Master
SAP 2008 / Page 12
Material Type
You can assign materials with the same characteristics to the same material type. Material types include raw materials, semi-finished products, and finished products, for example. SAP 2008 / Page 13
Units of Measure
In addition to the base unit of measure that the system uses for stock-keeping and to execute all its calculations, other departments can use their own units of measure. SAP 2008 / Page 14
Valuation Class
You can use the valuation class to combine materials for assigning G/L accounts so that you do not have to manage a separate stock account for each material. SAP 2008 / Page 15
Material Valuation Procedures
Valuation of goods receipts depends on the price control procedure you set in the material master record. SAP 2008 / Page 16
Purchasing Info Record
It is the centralized repository of important information regarding a vendor and material combination. SAP 2008 / Page 17
Conditions
Conditions are stipulations agreed with vendors concerning prices, discounts and surcharges, and so on. The effective net price in purchase orders is determined on the basis of these conditions. SAP 2008 / Page 18
Service Master
A service master record contains a service description and a unit of measure, for example, hour. You can assign a price to each service master record via the conditions. SAP 2008 / Page 19
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 20
Procurement Overview
PaymentInvoice
MRP Invoice Verification Requirement RFQ
Delivery
Goods / Service Receipt
Purchase History
Source Determined
Source ListPO
PO Created
Vendor Selected
Quota Arrangement Outline Agreement Info Record
SAP 2008 / Page 21
Purchase Requisition
Purchase requisitions are internal documents you use to request your Purchasing department to procure a particular quantity of a material or a service for a particular date. SAP 2008 / Page 22
Create Purchase Requisition
SAP 2008 / Page 23
RFX
You enter the quotations along with the conditions and delivery dates they contain with reference to the corresponding RFQ. SAP 2008 / Page 24
Display RFX
SAP 2008 / Page 25
Response & Awards
SAP 2008 / Page 26
Procurement of Stock or Consumables
Consumables are materials that are procured directly for any specific accounts.
SAP 2008 / Page 27
Multiple Account Assignment for Consumtion
You can procure consumables for different department together and then distribute the cost among them. It increases the negotiation power with supplier. SAP 2008 / Page 28
Account Assignment for Consumtion
SAP 2008 / Page 29
Purchase Order
SAP 2008 / Page 30
Procurement of External Services
SAP 2008 / Page 31
Procurement of External Services
SAP 2008 / Page 32
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 33
Special Procurement
SAP 2008 / Page 34
Stock Transport Order
s od ipt Goece R
Ve In rif vo ic ice at io n
Receiving Receiving Plant Plant
S Tra tock ns Ord port er
Purchase Order History
g Billin for ry e Deliv
Supplying Supplying Plant Plant
Goods Issue
SAP 2008 / Page 35
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 36
Material Planning
The main task of material requirements planning is to ensure material availability, that is, to procure the requirement quantities for in-house production and for sale on time. SAP 2008 / Page 37
Material Planning
SAP 2008 / Page 38
Material Planning
As opposed to MRP, consumption-based planning procedures are only based on material consumption. SAP 2008 / Page 39
MRP Consumption based Planning
MRP is useful for the planning of finished products and important assemblies and components (A materials). Consumption-based planning procedures are preferably used in areas without in-house production or in manufacturing plants in order to plan B and C materials and operating supplies. SAP 2008 / Page 40
Reorder Point Planning
The reorder point procedure is based on a comparison between the warehouse stock and the reorder point. SAP 2008 / Page 41
Net Requirement Calculation in Reorder Point Planning
In reorder point planning, the available warehouse stock is calculated from the following: Warehouse stock + order quantity (purchase orders, firm planned orders, and firm purchase requisitions). SAP 2008 / Page 42
Forcasting in Consumtion based Planning
On the basis of previous material consumption values the system determines the forecast values for future requirements. The reorder point and the safety stock are calculated from these values. SAP 2008 / Page 43
Forcast Models
When a series of consumption values is analyzed, certain patterns can usually be detected. From these patterns it is then possible to differentiate between various forecast models SAP 2008 / Page 44
Lot-Sizing Procedure
MRP (or MPS) determines how much stock is needed to satisfy demand in the net requirements calculation. This shortage quantity must now be covered by one or more receipts. The system calculates the receipt quantity in the lot size calculation. SAP 2008 / Page 45
Calculation of Deadlines
From the date of the purchase requisition's creation, System calculates the material's availability date by taking into account the three time components, purchasing processing time, planned delivery time, and goods receipt processing time. SAP 2008 / Page 46
MRP Result
SAP 2008 / Page 47
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 48
Valuated Goods Receipt
You can decide the stock type to which a quantity is posted. The stock type is relevant for determining the stock available in Materials Planning and is used for withdrawals in Inventory Management. SAP 2008 / Page 49
Valuated Goods Receipt
SAP 2008 / Page 50
Valuated Goods Receipt
The diagram once again shows an overview of all the key effects of a goods receipt referencing a purchase order. SAP 2008 / Page 51
Underdelivery and Overdelivery
When you enter a GR item, the System compares the GR quantity with the quantity in the open purchase order and thereby identifies underdeliveries or overdeliveries. SAP 2008 / Page 52
Reversal and Return Delivery
When returning material to a vendor, you can specify a reason for movement individually for each item or enter a reason for movement on the initial screen for goods movements. SAP 2008 / Page 53
Split Valuation
The stocks and stock values of split-value materials are cumulated at valuation area level. Moving average price control is required for material at valuation area level, because the moving average price is used for the entire valuation area. SAP 2008 / Page 54
Non-Valuated Stock Material
You manage low-value advertising or office materials in a warehouse, and can get an up-to-date report on stock levels at any time. Stock records are kept on a quantity basis, but the value is posted to a consumption account at the time of goods receipt. SAP 2008 / Page 55
Shelf Life Expiration Date Check at GR
If the shelf life expiration date check is activated, you have to enter the expiration date or production date of the material at the time of goods receipt. SAP 2008 / Page 56
Reservation
Reservations are requests to the warehouse to have materials ready for issue at a later date and for a particular purpose. SAP 2008 / Page 57
Dynamic Availability Check
If the dynamic availability check is actively set for a type of reservation, the System includes upcoming material requirements in the availability check. SAP 2008 / Page 58
Transfer Posting
When you carry out a transfer posting, the stock type, batch number, or material number is changed. A transfer posting may also involve an actual physical stock transfer. SAP 2008 / Page 59
Stock Transfer
Unlike stock transfers, transfer postings do not usually involve a physical goods movement, but a change in stock type, batch number, or material number. SAP 2008 / Page 60
Transfer Posting/Stock Transfer
SAP 2008 / Page 61
Plant-to-Plant Stock Transfer (2 Step)
If you use the two-step procedure, you can monitor stocks while they are in transit.
SAP 2008 / Page 62
Stock Transport Order: Two-Step Procedure
This can be done in one step as well.
SAP 2008 / Page 63
Goods Issue
-----
From Warehouse Goods Issue From Consignment Stores
Consumption Cost Centre Asset Sales
Issue Sample Scrap
Goods Issue might be done for different purposes and it has corresponding postings in Accounting. SAP 2008 / Page 64
Physical Inventory
You can carry out a physical inventory for special stocks as well as your own stocks. However, you have to inventory your own stock and each type of special stock separately, using different physical inventory documents.. SAP 2008 / Page 65
Stock Overview
SAP 2008 / Page 66
SAP Logistics & Operation Warehouse Management
Maximize cost savings for all spend
Debashis MajumderSolution Architect, SAP India
June 2010
Inventory & Warehouse Management: Business Process and Functional ScopeInbound Processing Warehousing & Storage Physical Inventory Outbound Processes Analytics Inventory
Inbound Processes
Goods Receipt Advanced Shipping Notification (ASN) Cross Docking Yard Management
Internal Processes
Warehouse and Inventory Management Task and Resource Management RFID, Mobile Devices and Bar coding Handling Unit Management Physical Inventory
Outbound Processes
Goods Issue Delivery Processing and Distribution Proof of Delivery Value-Added Services (VAS)
SAP 2008 / Page 68
Elements of Warehouse
SAP 2008 / Page 69
Structure of Warehouse
SAP 2008 / Page 70
IM-WM Integration
SAP 2008 / Page 71
Putaway Strategies
The following putaway strategies are part of the basic functions in SAP:Fixedbin(F) Open storage (C) Addition to existing stock (I) Nextemptybin(L) Pallets/storage unit type (P) Bulkstorage(B) Nearpickingbin(K)
SAP 2008 / Page 72
Stock Removal Strategies
The following stock removal strategies are part of the basic functions in SAP:First in first out (F) Stringent FIFO (***) Last in first out (L) Partial pallet quantity (A) Large/small quantities (M) Expiration date (H) Fixedbin(P)
SAP 2008 / Page 73
Putaway & Removal Strategies
SAP 2008 / Page 74
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 75
Invoice Verification
Logistics Invoice Verification creates a separate accounting document in addition to the invoice verification document. This is used in Financial Accounting to settle the invoice SAP 2008 / Page 76
Invoice Verification
SAP 2008 / Page 77
Invoice Verification
SAP 2008 / Page 78
Delivery Cost
Unplanned delivery costs are delivery costs you do not know about when you are creating the purchase order. SAP 2008 / Page 79
Terms of Payment
In Invoice Verification, you can enter terms of payment or a fixed cash discount amount. SAP 2008 / Page 80
Invoices in Foreign Currency
SAP 2008 / Page 81
Invoices with Variance
You must release a blocked invoice in a separate step before it can be paid. SAP 2008 / Page 82
Invoice Reduction
With invoice reduction, you not only reduce an invoice, but also post a credit memo for the amount of the reduction. The amount payable to the vendor is the value of the invoice reduced by the credit memo amount. SAP 2008 / Page 83
Subsequent Debit/Credit
A subsequent debit/credit changes the total invoice value of a purchase order item; the total invoice quantity remains unchanged. SAP 2008 / Page 84
Credit Memo
You usually receive a credit memo from a vendor if you were overcharged. SAP 2008 / Page 85
Reversing Invoices
If you enter an invoice incorrectly and post it despite the error, the invoice can subsequently be reversed. SAP 2008 / Page 86
Periodic Invoicing Plan
An invoicing plan consists of a series of invoicing dates and values and forms the basis for the mainly automatic creation and settlement of invoices. SAP 2008 / Page 87
Partial Invoicing Plan
The partial invoicing plan should be used for transactions involving invoicing and payment in stages (for example, in construction projects, where a down payment is required). The total value of the item is spread among the individual due dates defined in the invoicing plan. SAP 2008 / Page 88
Evaluated Receipt Settlement
In ERS, you arrange with the vendor that he or she does not create an invoice for a transaction. Instead, the system automatically posts the invoice document on the basis of the data from the purchase order and goods receipts. This ensures that there are no discrepancies between the goods invoiced and the goods received. SAP 2008 / Page 89
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 90
Optimized Purchasing
SAP ERP System provides many ways to optimize your whole procurement process to reduce time and operating cost. SAP 2008 / Page 91
Source of Supply
In MM Purchasing, the term source of supply (or source) can mean a vendor (external supplier) or an outline purchase agreement. SAP 2008 / Page 92
Outline Agreement
Outline agreement is a longer-term purchase arrangement with a vendor concerning the supply of materials or the performance of services according to predetermined conditions. SAP 2008 / Page 93
Source Determination: Source List
The source list contains the allowed, preferred and/or blocked sources of supply for a material in a plant that are valid within a certain period. SAP 2008 / Page 94
Source Determination: Quota Arrangement
If a certain material is to be procured alternately from different sources of supply, these individual sources can be assigned quotas. The quotas indicate the percentages of a total requirement that are to be procured from each of the various sources over a period. SAP 2008 / Page 95
Priorities in Source Determination
Possible sources are determined and suggested by the system according to logical priorities. SAP 2008 / Page 96
Order Acknowledgement
If you do not use acknowledgements, Materials Planning can only go by the delivery dates and quantities in the purchase order. Acknowledgements enable you to plan more accurately by providing you with the actual delivery dates and quantities. SAP 2008 / Page 97
Automated Procurement
SAP 2008 / Page 98
Agenda
The Whole Picture Organizational Structure Master Data Procurement Special Procurement Material Planning Inventory Management Invoice Verification Automated Procurement Miscellaneous Logistics Functionalities Analytics
SAP 2008 / Page 99
Classification
You can search for Materials via classes in any situation where you need to enter a material number. Using the Classification System you have set up, you can find the material number you are looking for without leaving the application, and copy it across. SAP 2008 / Page 100
Release Procedure of Purchsing Documents
The release strategy defines the release (clearance, approval or authorization) process. The strategy specifies the conditions under which a requisition or external purchasing document must be approved, the individuals or departments required to approve it and the sequence in which the approvals must be granted. SAP 2008 / Page 101
Output Message
Each time you save a new purchasing document or one that has been changed (such as an RFQ, a purchase order, or an outline agreement), the R/3 System checks if it should generate an output format for this document. SAP 2008 / Page 102
Price Determination
SAP 2008 / Page 103
Price Determination
SAP 2008 / Page 104
Batch Management
Batch Management incorporates the entire logistics process, from procurement to sales. SAP 2008 / Page 105
Batch Creation
Define creation upon goods movements or in batch master Define creation for production/process order SAP 2008 / Page 106
Batch Creation
SAP 2008 / Page 107
Batch Level
Batch Level can be set as material/plant or material or client. SAP 2008 / Page 108
Batch Classification
The material and its batches must be classified via the same class. This ensures that the same characteristics are used for the material and the batch. Characteristics can pass on their values by inheritance. SAP 2008 / Page 109
Shelf Life Expiration Date Check in Goods Receipt
The time you specify in the material master can be defined in days or in other time periods, controlled via the period indicator. SAP 2008 / Page 110
Shelf Life Expiration Date Check in Goods Receipt
If both the total shelf life and the minimum remaining shelf life are maintained, the system executes two functions in succession. It: Calculates the shelf life expiration date of the goods received and Checks the shelf life expiration date that has been calculated. SAP 2008 / Page 111
Batch Determination
Batch determination can be fully used for stock transfers and goods issues. SAP 2008 / Page 112
Batch Determination
Batch determination depends on the strategy records of the respective application. For different purposes, you have to create different strategy records in the system. SAP 2008 / Page 113
Batch Tracebility
SAP 2008 / Page 114
Batch Information Cockpit
SAP 2008 / Page 115
Vendor Evaluation
Overall rating of vendor
Price Price level Price behavior Other automatically determined
QualityInspec. of goods rec. Shopfloor complaint
Delivery On-time delivery Quantity reliability Shipping reliability Other
Service Technology Other
Quality audit Other
other eligible criteria weighting in %
AnalyticsMaterial List Vendor List PR List PO List Reservation List Physical Inventory Document List ABC Analysis Slow-moving Stock Dead Stock Warehouse Stock Purchase Value Analysis Material Analysis Material Stock between Posting Dates Purchase Order Price History Vendor Analysis
SAP 2008 / Page 117
Scope of List and Selection Parameters
Scope of list parameters determine which data is displayed for a document. The selection parameter determines which purchasing documents the report evaluates. SAP 2008 / Page 118
Reporting in Logistics Information System
You can use the Early Warning System (EWS) to look for any unusual situations and react to and correct these in good time. SAP 2008 / Page 119
Reporting in Standard Analysis
Standard analyses provide a wide range of functions for creating presentations and analyses for the data basis in the LIS. SAP 2008 / Page 120
SAP Logistics & Operation Quality Management
Maximize cost savings for all spend
Debashis MajumderSolution Architect, SAP India
June 2010
Functions in Quality Management
Material Master - Quality Management
Quality Management in Procurement
QM in procurement controls whether the goods are posted in quality inspection stock. Inspection lots are create at GR and the delivery or invoice is to be blocked as a result of complaint (missing certificate) SAP 2008 / Page 124
Source Inspection
We can also have the goods inspected at the vendor premises and released for the delivery to our company. SAP 2008 / Page 125
Inspection at GR
The goods are posted to inspection stock and are released for use or blocked, depending on the inspection result and usage decision. SAP 2008 / Page 126
Material Specification
In th QM component, you can inspect both on the basis of inspection plans, and on the basis of material specifications that are valid company-wide. SAP 2008 / Page 127
Material Specification with Batch Valuation
The link between master inspection characteristics and class characteristics allows inspection results from a quality inspection to be included in the batch valuation. SAP 2008 / Page 128
Batch Determination in Inspection
If there are inspections from both batch determination and the task list or material inspection that are relevant for the characteristic, the specifications from batch determination take precedence over those from the material specification. SAP 2008 / Page 129
Sample Determination
SAP 2008 / Page 130
Catalogs
Catalogs contain a number of content-related codes that enable qualitative descriptions of problems (in text form) to be encoded and processed in the system in machine form (like usage decision, defect types etc). SAP 2008 / Page 131
Screens
SAP 2008 / Page 132
Screens
SAP 2008 / Page 133
Screens
SAP 2008 / Page 134
Mobile Results Recording
You can also record inspection results using a mobile device on site. This results data can later be transferred to the SAP System.
SAP 2008 / Page 135
Digital Signature
The digital signature enables you to meet the security requirements stipulated in the Good Manufacturing Practice (GMP) with regard to the execution. It is implemented using Secure Store and Forward (SSF) which allows to link various external security products. SAP 2008 / Page 136
External Systems
The system features standardized, certified interfaces for linking external equipment to the QM component. SAP 2008 / Page 137
QM in Production/Process Industry
QM in production has a vast influence in controlling quality of the end product and communicating information to take necessary actions. SAP 2008 / Page 138
Production Chain
Production
Inspection during production and inspections for external processing are triggered automatically. SAP 2008 / Page 139
Intervening in the Process
If you run control charts, you can configure the system so it will automatically create quality notification if an action limit is exceeded. You can then use the notification to process the problem further. SAP 2008 / Page 140
Western Electric Rules
Apart from showing where control limits have been exceeded, control charts can indicate that a process may be running out of control on the basis of unusual patterns. Runs or trends are examples of this. The Western Electric Rules are the criteria used to detect such patterns. SAP 2008 / Page 141
QM in Sales and Distribution/Service
SAP 2008 / Page 142
Delivery Inspection
Quality info record SD defines the inspection specifications for a specific customer-material combination. SAP 2008 / Page 143
Quality-Related Costs
An inspection usually generates appraisal and nonconformity costs that can be posted to a QM order for cost settlement in the CO component. SAP 2008 / Page 144
Processing a Calibration Inspection
You process the inspection lot that was created by the PM planning activities and release of the maintenance order in QM. The items of equipment assigned in the maintenance item are copied into the inspection lot as objects to be inspected. SAP 2008 / Page 145
Early Warning System
You use the EWS to monitor statistics for characteristics that have been updated in QMIS. You can monitor this data on the basis of mathematical criteria such as threshold values, trends, target/actual comparisons SAP 2008 / Page 146
Using Statistics
Different displays of statistical values are available in QMIS like run chart, PCI etc. QMSTI interface is to transfer data to external statistical programs for further processing. SAP 2008 / Page 147
Roles in QM
A role describes a collection of activities within a company and contains all of the functions required to perform these activities. SAP 2008 / Page 148
Thank you!
SAP 2008 / Page 149