Università degli Studi di Roma “La Sapienza” Dipartimento Idraulica Trasporti e Strade
SAP Logistics Execution Ing. Andrea Campagna
Corso di Sistemi Informativi Aziendali
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Contents • The ERP systems • Overview of SAP • The S SA AP Lo Logistics Ex Execution System
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Enterprise Resource Planning • Comm Commerc ercia iall softw softwar are e packa package gess that that pro promi mise se the seamless integration of all the information flowi flo wing ng thro through ugh the the comp company any – fi finan nancia cial, l, accounting, human resources, supply chain and customer satisfaction (T. J. Davenport, 1988) • ER ERP P syst systems ems pr provi ovide de info inform rmat ation ion man manage agemen mentt and analysis to organizations
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Benefits of ERPs • on-line/real time information throughout all the fu functional areas of an an organization • da data ta sta stand ndar ardi diza zati tion on and and acc accur uracy acy acr across oss the the enterprise • "b "best est-p -prac racti tices ces"" incl includ uded ed in the the appl applica icati tions ons • th the e effic efficien iency cy they they for force ce an an organ organiz izati ation on to to undertake • th the e analy analysi siss and and rep repor orti ting ng th that at can can be be used used forr lon fo long g ter term m pl plan anni ning ng
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ERP RPss’ im imp pact on ind indus usttry • • • • • • • •
Lowerr tot Lowe total al cost costss in in comp complet lete e supp supply ly chai chain n Shor Sh orte ten n thr throu ough ghpu putt tim times es Red educ uce e sto stock ck to a min minim imum um Enla En larg rge e pr prod oduc uctt as asso sort rtme ment nt Impr Im prov ove e over overal alll pro produ duct ct qu qual alit ityy Incre In crease ase re reliliabi abilility ty of del deliv ivery ery dat dates es Imp Im pro rove ve cu cust stom omer er se serv rvic ice e Coor Co ordi dinat nate e dema demand nd,, supp supply ly and pr prod oduct uctio ion n
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ERP market share 2002 SAP AG 25,1%
Oracle 7,0% Others 51,1%
Microsoft 4,9%
SAGE 5,4%
PeopleSoft 6,5%
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An example of ERP: SAP mySAP PLM
mySAP ERP (R/3) mySAP SRM
Financials Human Resources Logistics Corporate Services Operations
mySAP SCM SAP NetWeaver
mySAP CRM
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SAP R/3 architecture Software oriented view
Hardware oriented view
SAP GUI Frontend
router Application
… processes
Database
DB
scalability
…
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SAP R/3 functionalities • Financials (AC) – Financial Accountin Accountin (FI) – Controlling (CO) – …
• Human Resources (HR) • Logistics (LO) – Sales and Distribution (SD) – Materials Management (MM) – Logistics Execution Execution (LE) – …
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Screenshot SAP R/ R/3
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Logistics Execution System • LE co comp mpone onent nt map mapss a com compa pany’ ny’ss log logist istic icss processes, covering the entire process chain – Vendor, internal warehouse, warehouse, production site, site, and distribution centre right through to the customers
• LE pr proc oces esse sess inc incllude: – Inbound process – Outbound process process – Internal warehouse – Transportation process
SAP LES integrated part of the Supply Chain PLANNING AND OPTIMIZATION Supply Network Planning
Planning and Simulation
Transportation
Purchasing
SAP LES
Production BUSINESS PROCESSES
Forecasting
Warehouse Management
Sales
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Logistics Process 1. Sa Sale less or orde derr pr proc oces essi sing ng fo forr go good odss is issu sues es – Handled mainly by Sales and Distribution (SD)
2. Orde Orderi ring ng (p (pur urch chas ase e ord order er pr proc oces essi sing ng)) for for goods receipts – Handled mainly by Materials Management Management (MM)
3. Ph Phys ysic ical ally ly mo movi ving ng go good odss in in the the su supp pply ly ch chai ain n •
SAP LES is the link between 1 and 2
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Logistics overview Sales order
Presales activity
MRP External procurement Production
Invoice verification
Internal procurement Production
Inventory Management Posting change
Invoice receipt
Internal and external accounting
Goods receipt Goods issue
shipping
billing
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Goods Receipt: procurement Determination of requirements
Determination of Source of supply
Handling of payments
Invoice verification
Selection of vendor
Ordering
Goods receipt
Purchase order monitoring
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Purchase orders Purchasing
Purchase requisition
Purchase order
Request For quotation (inquiry)
External vendor
Other plant Master data
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Goods receipt for purchase order External vendor Or other plant
Purchase order
Material document
Accounting documents
Purchasing / inventory management
Delivery of Materials ordered
Goods receipt posting
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Goods issue: sales order processing
Presales activities
Payment
Order processing
Procurement
Billing
Shipping/ Transportation/ Goods issue
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Goods issue for sales order Sold-to party
Sales order
Ship-to party
Shipment
Bill-to party
Billing document
Payer
Accounting documents
Outbound delivery
Sales and Distribution (SD)
Transfer order (pick order)
Goods issue
Material document
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The Shipping Process Sales order
Shipping point
Functions affecting shipping -Determination of shipping point -Determination of route -Scheduling
-Monitoring of shipping due to dates -Create delivery
Warehouse Goods issue
Shipping documents
Packing
Picking
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Warehouse Management Storage bin management
Stock movements
Planning and monitoring
Radio frequency (RF) connection
Warehouse control
Organizational Units and Master Data
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Business Scenario • Maste Masterr data data and or orga gani nizat zatio iona nall unit unitss are are required for mapping the IDES model company in the SAP System. • Si Sinc nce e you you are are the the proj projec ectt tea team m memb member er responsible for this, you assign the necessary organizational units, and edit the appropriate master data.
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Organizational Units • • • • • •
Company Code Plant Storage Location Warehouse Number Tran Tr ansp spor orta tati tion on Pl Plan anni ning ng Po Poin intt Shipping Point
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The Company Code • Legal Legally ly ind indepe epende ndent nt unit unit wi with th a self self-co -cont ntain ained ed set of accounts • Th The e fol follow lowin ing g are are cre create ated d at at the the co comp mpany any code level: – Financial statements statements – Profit and loss statements statements
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The Plant • A plant plant is an an organ organiz izat atio ional nal un unit it in in Logi Logist stic ics, s, and allows you to look at a company from the point of view of production, procurement, plant maintenance, and materials planning. • A pla plant nt is a bran branch ch or di divis vision ion wi withi thin na company.
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The Storage Location • An org organ aniz izati ation onal al uni unitt that that ena enabl bles es you you to distinguish between the various material stocks in a plant. • Qu Quant antit ity-b y-base ased d inv invent entor oryy mana manage gemen mentt dat data a pertaining to the plant is summarized at the storage location level.
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The Warehouse Number • An org organ aniz izati ation onal al uni unitt that that maps maps th the e comp compan anyy from a warehouse management perspective. A warehouse number corresponds to a warehouse complex containing different storage types that are organized differently. • Th The e physi physical cal con condi diti tion onss of th the e wareh warehous ouse e are are mapped in the warehouse number.
Organizational Units in a Warehouse Number Door 1
Goods Receiving Zone
Fixed bin storage
Storage type 902
Storage type 005
Door 2
Bulk Storage Storage type 004
Picking area 1 Picking area 2
Pallet storage Storage section 1 Stor St orag age e sec secti tion on 2 Storage type 007
Warehouse Number 140
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Shipping Area Staging Area 1
Door 3
Staging Area 2
Door 4
Door 5 Storage type 916
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The Transportation Planning Point Transportation Planning points Planning, handling, And settlement of shipments
1010
1011
1200
Hamburg International Ocean freight
Hamburg Rail Transportation
Dresden Truck Transportation
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The Shipping Point • A ship shippi ping ng poi point nt is is an org organi anizat zatio ional nal un unit it tha thatt allows you to look at a company from the point of view of shipping, the shipping materials required, and the means of transportation required. • On the go good odss recei receipt pt sid side e of th thin ings, gs, th the e good goodss receiving point corresponds to the shipping point.
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Organizational structure Transportation Planning points
Company
Plant 1
Plant 2
Storage Location 1
Storage Location 2
…
Plant n
Shipping points
…
Storage Location n
Warehouse number
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Storage bins and quants • In War Wareho ehouse use Man Manage ageme ment, nt, th the e ind indivi ividu dual al storage bins are defined within each storage type. A storage bin is the smallest geographical or organizational unit that can be addressed by the system. • Th They ey can can be ma mapp pped ed as co coor ordi dina nate tes: s: 02-04-09 Æ aisle 02, stack 04, level 09 • Bin ty type pe P1 P1 for for upp upper er bin bins, s, P2 P2 for for low lower er bin binss • The exi exist stenc ence e of a mate materi rial al (a (a valu value) e) in in a bin bin is referred to as a quant.
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Storage bins and quants • Quan antts ar are def defiined by: – Material – (Batch) – Stock category category – Special stock – Plant / storage location location – (storage unit number) number)
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Information contained in a quant Material Stock category Plant/Storage location Special stock Batch Storage unit Available Stock Putaway/ Pick? Weight Goods receipt data Goods receipt number Last movement
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Material Master General Data Plant-specific Data Warehouse Management Data Purchasing Data Sales and Distribution Data …
Accounting Data
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Views in a Material Master Record Basic Data
Purchasing
MRP
SD
Stock in plant Storage loc.
Work scheduling
Accounting
Material Master
Quality Management
Storage
Forecast
Warehouse Management
Classification
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Customer Master General Data
Company Code Data Sales Area Data
Relevant to SD and accounting Relevant to accounting
Relevant to SD
Valid for all organizational units Valid for Company Code Valid for: sales organization / distribution channel / division
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Vendor Master General Data
Relevant purchasing and accounting
Valid for all organizational units
Company Code Data
Relevant to accounting
Valid for Company Code
Purchasing organization data
Relevant to purchasing
Valid for: purchasing organization
Università degli Studi di Roma “La Sapienza” Dipartimento Idraulica Trasporti e Strade
SAP IDES Ing. Andrea Campagna
Corso di Sistemi Informativi Aziendali
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Contents • The IDES • Exercise – Inbound deliveries and putaway in a WM Warehouse
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The IDES • The "Internet Demo mon nst strrat atiion and Evaluation ystem" em" in the the R/3 R/3 Syst System, em, re repr prese esent ntss a Syst model company. • It consists of an an international group with sub su bsi sid diaries in sev sever era al co cou untries es.. • IDES co contains application data fo for various business scenarios that can be run in the SAP System. • The focal point of IDES is the business proce cessse sess and thei eirr integ egrration.
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Business areas • • • • • • • • • •
Human Resources Financial Accounting Product Cost Planning Overhead Management Profit ita ability Ana Analysis Planning Sales and Distribution Materials Management Production …
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The Th e str struc ucttur ure e of th the e IDE IDES S gro group up IDES
North America Latin America Company 1 Company 2
Company 1
Europe Company 1 Company 2 Company 3 Company 4 Company 5
Asia Company 1
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Each company… • has its own clearly defined business objectives within the co consolidated group and is is organized according to local business pr practices an and le l e ga l requirements. • Consolidation takes place across the financial areas. • Accounting and Human Resources for each individual company have been adapted to meet me et th the e par parti ticu cula larr bu busi sine ness ss ob obje ject ctiv ives es..
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For example… • The Fr French subsidiary operates solely as a sa sales company. • In Mexico, we represent high-inflation methods and the material ledger. • The American and German subsidiaries produce goods, as well as carrying out purchasing and sales activities. • Germany and the United States have been set up to use us e fle lexi xibl ble e st stan anda dard rd cost stin ing g. • The Un United Kingdom uses static standard co costing base ba sed d on fu fullll co cost sts. s.
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IDES Logistics • A variety of products are manufactured and sold using the different organizational units within the Logi Lo gist stic icss ar area ea.. • IDES provides all the resources required for pro pr odu duccti tio on and and as assi sign gnss th the em to th the e co corr rres esp pon ondi ding ng pro pr odu duccts th thro roug ugh h bi billllss of mat ate eri rial alss (B (BOM OMs) s) an and d routings. • Each product or product group represents a part pa rtic icul ular ar pr prod oduc ucti tion on type type.. • IDES co contains fully-integrated business pr processes for the production or sale.
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Products Product
Process Type
Elevators Motorcycles Cars
Engineer-to-order
Pumps Personal computer Lighting products Paints / solvents Tablets Food / cosmetics
Make-to-order production
Make-to-order production Sales-order-based repetitive manufacturing Repetitive manufacturing Mass production Process industry, Chemicals Process industry, Pharmaceuticals Retail
Exercise Inbound deliveries and putaway in a War Wareh ehou ouse se Ma Mana nage geme ment nt warehouse
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The problem The IDES Purchasing department orders goods for plant 1000 (Hamburg). The purchase order is to be confirmed by the vendor using a shipping notification. When the shipping notification is received, the data is transferred to an inbound delivery document within the Logisti Logi stics cs Exec Executi ution on Syst System. em. The put putaway away tak takes es place in the central warehouse of plant 1000. Goods movements and inventory management in this central warehouse are supported by the Warehouse Management system (WM).
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The process scenario External vendor Or other plant
Purchase order
Material document
Accounting documents
Purchasing / Inventory management
Delivery of Materials ordered
Goods receipt posting
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The process flow (1) 1. Creating a Purchase Order As an IDES purchasing employee, you place an order for goods for plant 1000 (Hamburg).
2. Creating the Inbound Delivery The ven The vendo dorr co conf nfir irms ms th the e del deliv iver eryy dat date e in in the the shipping notif ific ica atio ion n. In this case, however, it is a partial delivery. You enter this in an inbound delivery document.
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The process flow (2) 3. Executing the Putaway When th When the e ord order ered ed go good odss arr arriv ive, e, th they ey ar are e put put in into to stock in in th the ce central warehouse. Yo You use the delilive de very ry mo moni nito torr to to st star artt and and ov over erse see e th the e var vario ious us putaway steps.
4. Re Rese settting the Star artting Situat atiion To avoid exceeding the storage capacity in the warehouse by repeating this demo several times, you now start a CATT that clears the stocks you have just placed into storage.
