leogistics GmbH https://leogistics.com/en/ Digital Supply Chain Management Wed, 23 Oct 2024 10:19:13 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://leogistics.com/wp-content/uploads/2020/09/leo_Logo_stern_01.svg leogistics GmbH https://leogistics.com/en/ 32 32 Road Outbound Scenario with SAP S/4HANA Public Cloud https://leogistics.com/en/blog-en/road-outbound-scenario-with-sap-s-4hana-public-cloud/ Tue, 24 Sep 2024 12:18:46 +0000 https://leogistics.com/?p=44361
When it comes to the implementation and maintenance of enterprise software, the requirements are often similar: a fast implementation with low costs, standardized processes, and a system that is always up to date. The solution to these demands is the SAP Public Cloud. While SAP Transportation Management (SAP TM) as an on-premises version offers a transportation management system (TMS) with many customization options, the SAP TM Public Cloud solution provides a variety of predefined processes. One of these predefined processes deals with the outbound process, which we present here in the truck scenario, from planning to billing.

1.

Scope Items and Process Overview

In the SAP Public Cloud, predefined processes are divided into so-called scope items. A small selection of these scope items (e.g., 6W2) can be found in Figure 1, which simultaneously represents the outbound scenario as an end-to-end process. If you want to learn more about scope items and the S/4HANA Public Cloud, feel free to check out the blog post.
outbound_DE_EN
Figure 1: Process diagram SAP TM in the Public Cloud, including scope item designations
Note: For readability, we refrain from using scope item abbreviations like "6W2" in this post.

2.

Transport Planning in the Public Cloud

The scope item for transport planning supports the modes of transport (road, rail, sea, and air). In SAP TM, planning or scheduling is based on so-called transport demands. These transport demands, in addition to the classic customer order, also cover orders, stock transfers, returns, or delivery schedules. Different transport demands automatically generate freight units. A freight unit is defined as the smallest plannable and transportable object in the transportation management process and represents a grouping of goods that are transported together throughout the entire transportation chain.
For planning freight units, the transportation cockpit is the central planning tool. Here, the freight units to be planned and the already planned freight orders are displayed. Truck resources are also shown, allowing manual planning. During manual transport planning in the transport cockpit, one or more freight units and a truck resource are marked and directly assigned to a freight order.
Transport cockpit in the Public Cloud with partial views of freight units (Freight Unit Stages), freight orders (Road Freight Orders), and resources (Trucks).

In addition to manual planning, SAP TM offers options for group-based planning. In group-based planning, several freight units can be automatically assigned to freight orders based on defined criteria. In group-based planning, both the planning profile and the demand grouping profiles play a central role.

Requirements grouping profile with grouping rules for start location, loading date and unloading date
Based on predefined grouping rules, customer-specific planning profiles can be created and applied in the transport cockpit. Grouping rules are combinable. Here are two examples: Suppose there are three freight units with a common shipping location, and the unloading date for one of the three freight units differs. The result of group-based planning is that two freight orders are planned. In another example, all three freight units have different shipping locations or unloading dates. The result of group-based planning is that three freight orders are created. The advantages of using demand grouping profiles are time savings and the ability for planners to manually intervene in the transport planning process at any time.

Group-based planning can also be seen as the “little brother” of the powerful VSR Optimizer, which is not available in the Public Cloud. Those who want to experience VSR-Optimizer-supported planning need the SAP Private Cloud or an on-premises version of SAP TM.

Once the manual or group-based planning is completed, the freight order is linked to a freight forwarder (master data) who will execute the transport. Once this is done, a cost calculation for the transport can be initiated.
Freight order cost calculation
If freight orders are to be tendered to freight forwarders, relevant data (see freight order) can be transmitted to an external system. This means information can be sent directly to a forwarder, who checks it and sends it back to the source system. Usually, this data exchange is done via an interface, and the status of the freight order is automatically updated in the SAP TM system.

Once the transport planning and, if necessary, the assignment of a transport to a freight forwarder is completed, SAP TM triggers deliveries (for customer orders) in the already created freight orders. Deliveries can be created, for example, via the app “Manage Freight Orders” or directly in the respective freight order.

Creation of deliveries in the app "Manage Freight Orders"

3.

Transport Execution in the Public Cloud

After successful transport planning, various statuses can be set in SAP TM. We refer to this as transport execution. Before the truck drives to the plant to pick up the goods, the execution status of the freight order is set to “Ready for Transport Execution”.
Change execution status to "Ready for Transport Execution".

The truck is on its way to the plant to pick up the goods and transport them to the customer. Once the truck reaches the plant, the responsible person sets the execution status (source) to “Arrived”, and once the truck successfully checks in, the status changes to “Checked In”.

Execution status upon arrival

The truck is now at the plant and is being loaded. The loading is systemically booked in SAP EWM. When leaving the plant, the truck’s execution status (source) in SAP TM is set to “Checked Out” and then to “Departed”.

Execution status upon departure

Subsequently, the goods issue is systemically booked. Physically, the truck with the goods is on its way to the customer. Once the truck arrives at the customer, the execution status (destination) is set to “Arrived” to complete the transport execution.

Execution status upon arrival at the destination

4.

Freight Cost Calculation in the Public Cloud

With SAP TM, freight costs can be calculated to create a cost forecast. This cost forecast serves as an indicator of the actual costs of a freight order. As a prerequisite for the freight cost calculation, a purchasing organization and a freight forwarder must be assigned to a freight order. With these input parameters, SAP TM can determine a predefined freight agreement. Freight agreements correspond to contracts between the transport parties and contain, in addition to cost types, other contractually relevant data.

5.

Freight Settlement in the Public Cloud

In SAP TM, freight accrual postings are processed via the app “Monitor Accrual Postings”. This app provides an overview of all booked objects.

Overview of accrual postings

Accruals can be booked manually or automatically.

Overview of accruals
Once the freight forwarder’s invoice has arrived, it is checked and approved in an app, which is not described in detail here. In addition to this invoice verification option, it is also possible to handle the billing process using SOAP messages (electronic invoice, e.g. via XML file) or credit note procedures (“self billing”).
Finally, a few words about leogistics GmbH:. As a service provider in the field of SCM, we have been working with SAP Transportation Management (TM) for over a decade. If you need support with your logistics projects, please do not hesitate to contact us.

We are here for You!

Have we sparked your interest in the public cloud? Please feel free to contact us at blog@leogistics.com.


Leonie Ahrens
Associate Consultant


Jean Maurice Ernst Reichel
Consultant SAP Logistics

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TM in SAP S/4HANA Public Cloud https://leogistics.com/en/blog-en/tm-in-sap-s-4hana-public-cloud/ Fri, 09 Aug 2024 13:56:40 +0000 https://leogistics.com/uncategorized/tm-in-sap-s-4hana-public-cloud/

Fast implementation and scaling, easily calculable operating costs and a system that is always up to date: SAP S/4 HANA Public Cloud offers these and other advantages – also for the area of Transportation Management (TM). But what can TM do in the public cloud, what are the differences to traditional on-premise systems and what factors should potential customers take into account?

To answer these questions, we will first look at the TM functionalities that are already available and evaluate future enhancements in an outlook. Finally, indicators for cloud usage will be explained.

This article deals with the public cloud, not the private cloud! In terms of functions, advantages and disadvantages, the private cloud can be equated with an on-premise system, with a few exceptions. The public cloud is hosted and maintained centrally by SAP SE.

Functionalities of SAP TM in S/4HANA Public Cloud

If you opt for the public cloud, you will not select the entire TM module as a Basic or Advanced variant as you would with on-premise, but instead select specific scope items for your process landscape. A scope item represents a business case or at least a part of it. As can be seen in the following illustration, there are several scope items to choose from for Transportation Management:
240515_blog_content_01

The listed scope items already cover a broad horizon of business processes, whereby not every scope item needs to be activated, used and implemented. Thanks to the public cloud, it is possible to implement your requirements in the system in stages. This can minimize the complexity of an implementation phase, thereby increasing the potential success of the project and preventing an overload situation within your company.

The expansion option can also be used when a new process is introduced into the business operations. For example, if your logistics process is expanded to include your own distribution centers, you can subsequently implement the scope item (5FV). This allows the business processes and the cloud landscape to grow together, with the costs only relating to those services that are actually used.

The most relevant scope items along the traditional SAP TM document flow

But first, let’s get an overview of the most relevant scope items along the traditional SAP TM document flow:

240515_blog_content_02
In the public cloud, requirements for transportation planning can arise in various ways. In addition to inbound and outbound transports, returns, cross-company stock transfers and the dispatch of goods from distribution centers can take place. The integration of sales scheduling agreements is also possible. If there is a transport requirement, the automatic generation of freight units in TM is triggered in compliance with defined criteria. Freight units are the basis for transportation planning in TM. Manual planning takes place in the Transportation Cockpit – the central planning tool. Based on the delivery information, such as delivery address, destination location and time, the goods to be transported can be planned on a suitable resource based on their weight or volume. CO2 emissions can also be taken into account so that a more climate-friendly transportation option can be given preference. The results of the planning are freight orders that are awarded to carriers.
However, if transportation planning is performed using the scope item “External Transportation Planning”, the generated freight units are transferred to an external system for planning. This means that the planning could be taken over by a freight forwarder. The planned freight orders are transferred back to the cloud system for further processing. In the next process step, the charge calculation is triggered in the freight order. This calculation of costs can also be defined in the public cloud according to different criteria. After that, the transportation itself can be carried out. Together with the scope item “Transportation Execution”, various execution statuses can be set for this.

Once the freight order has been successfully executed, freight settlement can take place. If we look at the transportation costs incurred, these can be transferred to FI/CO and distributed to individual cost objects using scope item 6W4. The transportation process is completed by posting the incoming invoice from the freight forwarder.

As in a traditional on-premise system, analyses and monitoring options can have a positive influence on future operational and strategic decisions.

In conjunction with the Business Technology Platform (BTP), the use of web services, the integration of IoT devices and the automation of processes with the support of artificial intelligence are all made possible.

Transportation Management functionalities S/4HANA Public Cloud vs. On-Premise

TM in S/4HANA Public Cloud can basically be compared with the functionalities of “Basic TM”. Many tools that can be automated, such as optimizer planning, are still reserved for “Advanced TM” and can only be used as an external planning tool. Due to regular updates, the public cloud scope comprises more and more functions and processes, including completely new ones. One example of this is CO2 monitoring, which was first available in the cloud. Thanks to its integrated structure, it offers a quick connection to the Sustainability Control Tower, which can support ESG reporting. This means that cross-module processes can also be implemented quickly and cost-effectively. In the coming years, it may happen that new functions are only released in the S/4HANA Cloud, for example, in the area of AI. This development is driven by SAP’s “cloud first” orientation.

Another advantage is the BTP, which, as already mentioned, enables the cloud to be connected to other systems. In addition, the analysis and monitoring options can be used in real time and provide a basis for operational and strategic decision-makers.

240515_blog_content_03

Which Companies should think about S/4HANA Cloud?

In addition to the functionalities, there are a number of other indicators that influence the choice between on-premise and SAP S/4HANA public cloud:

Outlook on the SAP S/4 HANA Public Cloud roadmap

SAP SE provides semi-annual updates for the public cloud. Previous and future enhancements are listed on the SAP roadmap:

As the numerous upcoming enhancements exceed the scope of this article, we will refer to the most relevant developments: In the near future, the focus will be on expanding the process chain, which is why the connection to the Business Network for Logistics (BN4L) is being implemented. Existing processes are also constantly being developed further: For example, enabling freight cost calculation based on material freight groups or transportation groups.

Summary

The cloud has many aspects that can have a positive impact on business activities. These advantages must always be weighed up against the disadvantages, and customer-specific analyses should be carried out.

For example, it is important to check whether the TM functionalities meet your requirements and whether the processes of the public cloud are applicable to your business operations. It is also important to utilize the new added value of the public cloud in order to drive a successful, long-term and cross-company cloud strategy.

Let’s discover together which solution is the best choice for you. Feel free to contact us. Together with our parent company cbs, as well as with Trebing & Himstedt and p78, we are broadly positioned to take your next step towards digitization.

We are here for You!

Have we sparked your interest in the public cloud? Please feel free to contact us at blog@leogistics.com.

Jonte Matthießen
Associate Consultant

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Innovations in Bulk Material Logistics: Harmonizing Automation and Planning https://leogistics.com/en/blog-en/innovations-bulk-material-logistics/ Mon, 04 Dec 2023 12:02:39 +0000 https://leogistics.com/?p=42096

Bulk materials, whether in the form of construction materials or raw materials for the chemical industry and other applications, play a pivotal role in today’s economy. However, logistics concerning the transportation of bulk materials is by no means straightforward. Quality inspections, bottlenecks in material intake, and seasonal fluctuations pose significant challenges to companies. Intelligent yard management and the integration of automation technologies are key factors. In this article, we will explore how efficient planning and automation can optimize the seamless bulk material inbound process to reduce costs and enhance production processes.

Challenges in Bulk Material Logistics

Handling bulk materials, whether in the construction industry, food production, or the chemical sector, comes with a myriad of challenges. These challenges span the entire process, beginning with quality control and extending to logistics.

Quality Control

One of the initial hurdles encountered in bulk material handling is quality control. In sensitive industries such as food and pharmaceuticals, adhering to the highest quality standards is of paramount importance. The examination of bulk materials for impurities, moisture, and other quality parameters requires precise technologies and processes.

Handling and Storage

How bulk materials are handled and stored presents another major challenge. The often-substantial quantities of materials require specialized storage facilities and material transport equipment. The risk of material loss or damage during transportation or storage must be minimized.

Bottlenecks

Bottlenecks are a common issue in bulk material processes. Truck congestion at factory premises can significantly disrupt smooth operations. Bottlenecks can result from poor communication and a lack of scheduling, leading to unexpected peak loads.

Seasonal Fluctuations

Many industries, especially agriculture, are subject to seasonal variations. This can lead to seasonal spikes in bulk material demand, making logistics planning and handling more challenging. Flexibility and advanced planning are crucial in such cases.

Multimodal Logistics

Bulk material logistics often involve multiple modes of transport, such as trucks, railways, and barges. Coordinating and efficiently utilizing these different modes requires complex planning and logistics management.

The Solution: Intelligent Yard Management and Automation

Given these challenges, the implementation of automation and intelligent yard management is crucial. These technologies can enhance quality control, ensure a smooth material flow, minimize bottlenecks, and manage seasonal fluctuations. Companies investing in innovative solutions can significantly improve the efficiency and sustainability of their bulk material processes.

 
The solution to the complex challenges of bulk material processes lies in implementing intelligent yard management based on efficient planning and automated delivery and processing. This integrated solution promises not only smoother operations but also substantial benefits in terms of cost reduction and process optimization.

 

Efficient Planning

Successful yard management hinges on efficient planning. This means considering a company’s needs, seasonal variations, and logistical challenges, including complex multimodal scenarios such as truck delivery, interim storage, and transshipment onto barges with automated customs processes. Intelligent planning enables optimal control of material flow in these complex situations, minimizes bottlenecks, and streamlines the entire process. This results in improved resource utilization and cost savings while enhancing the sustainability and efficiency of bulk material processes.

Automated Delivery and Processing (Smart Gate)

Automation plays a pivotal role in addressing bulk material management challenges. Automated check-in processes facilitated by self-check-in terminals, license plate recognition at check-in and weigh stations, and automated retrieval ensure efficient and seamless operations. This includes the use of sensors and monitoring systems to conduct real-time quality inspections, control material flow, and avoid bottlenecks. Automated transportation and handling systems ensure precise and gentle material treatment while contributing to sustainability through paperless processes. This enables companies to make their bulk material processes more efficient and environmentally friendly.

Seamless Integration with Production

In addition to efficient planning and automated processing, seamless integration with production is crucial in addressing bulk material processes. The solution should enable delivered bulk materials to be smoothly integrated into the production process. This necessitates close collaboration between yard management and production operations. Synchronized planning and communication between these two areas ensure seamless production, minimize downtime, and maximize productivity. A well-integrated solution ensures that bulk material deliveries arrive on time, in the right quantity and quality, at the right location to meet production goals. This contributes to increasing efficiency in the manufacturing sector and enhancing competitiveness.

Benefits of Intelligent Yard Management

Conclusion

In summary, intelligent yard management, in conjunction with efficient planning and automation, offers an efficient and sustainable solution to address the challenges of bulk material management. Companies investing in this solution can enhance their competitiveness while improving the quality and efficiency of their bulk material processes. Bulk material management 4.0 is no longer just a vision but a reality that assists companies in succeeding in today’s economy.

We are here for You!

Were we able to arouse your interest? Please contact us at blog@leogistics.com.

Sascha Winde Business Development Manager Yard Management
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Optimizing Warehouse Logistics with AI and Data Analytics https://leogistics.com/en/blog-en/optimizing-warehouse-logistics-with-ai-and-data-analytics/ Tue, 14 Feb 2023 09:24:19 +0000 https://leogistics.com/?p=40744
Data analytics, machine learning and artificial intelligence (AI) are already contributing to automation in many areas, for example around Industry 4.0 and quality control. But warehouse logistics can also benefit significantly from intelligent algorithms. We show in which fields companies can already use AI today. 

Logistics, like geometry, is completely deterministic and algorithmizable, states Prof. Michael ten Hompel, Executive Director of the Fraunhofer Institute for Material Flow and Logistics IML. This is because all process steps in physical logistics, including picking, transport, storage and retrieval, and handling, are already fully described. The combination of these process steps results in highly complex optimization problems. This also makes logistics particularly well suited for the use of (self-learning) AI algorithms.  

External Expertise is Crucial 

A 2020 study by Tata Consultancy and industry association Bitkom shows that while nearly half of all companies (47 percent) see AI as a key technology for logistics. But only 27 percent are already using AI or have specific plans to use it. The main hurdles cited were high investment costs, challenges with data security and data protection, but also a lack of expertise.  

So far, many companies are still hesitant to delve deeper into AI technology and machine learning, and SMEs in particular are finding it difficult to do so. This is due not least to the drastic shortage of specialists in the field of data science. In most projects, therefore, external expertise from consultants is called in. The head start that AI users gain is not so easy for other market players to catch up with, because it often involves learning processes and building up a qualified data basis.  

Where AI Makes the Difference

There are many possible applications. In practice, it is not uncommon for goods to sit around on the ramp for a day because they were picked too early. Intelligent software in conjunction with IoT scenarios such as tracking can make it possible to plan much better today. For example, if geofencing is used to signal a truck’s arrival in an hour, goods can be staged on time and loading teams can be managed accordingly. This data can be used to train an artificial intelligence, for example, to make predictions about punctuality on certain days or times, as well as about the reliability of the respective carrier. As a result, for example, transports may no longer be booked on Tuesdays or from transport company XY. 

The topic of picking is not always trivial, as the example of home24 shows well. At the online furniture retailer, the packages and thus also the loading and unloading times differ extremely. Machine learning can be used to predict very precisely how much time will be needed for each delivery and thus optimize team planning. In general, improving forecasts is one of the key benefits of AI technology.  

230103_blog_KI_Data_Analytics__content_EN

Taking the Shortest Path

Route optimization in the warehouse generally still has room for improvement. Machine learning can be used to automatically calculate how often goods are picked, check how long they take to be made available, and deduce which goods should be stored in a more accessible location. The basis for this is, of course, qualified data, which can best be collected via data acquisition on mobile devices. In the best case, every process step is documented almost in real time. Camera images of the storage rooms and areas can also serve as a basis for calculating the best routes.  

There is also a trend toward autonomous transport systems, in which AI ensures on the one hand that the environment is “seen” appropriately by sensors so as not to cause accidents. On the other hand, AI algorithms calculate the most efficient route in each case here as well.  

Counting and Reading

But intelligent solutions also replace a great deal of manual work when it comes to taking inventory and counting certain goods or materials: for example, a specially trained image recognition algorithm can immediately detect how many steel pipes are stored on a load carrier.  

However, AI can also be used in the sense of significantly improved text recognition: For example, by automatically recognizing the license plates of trucks from different countries and checking whether the truck has docked at the correct ramp. Label recognition on containers can also be automated to check whether the container matches the advised number, for example. 

Outdoor Areas in View

Wherever material is stored in the yard that cannot be fully monitored, a combination of drones and image recognition can provide security and greater transparency. That’s because with AI image recognition, even small deviations or irregularities become clear. In the case of coal or steel, for example, the algorithms use the drone images to automatically recognize how high the inventory is and what tonnage of a product is present: This makes it possible to detect thefts when the data is compared with the information in inventory management – an added value that also has a direct monetary impact. 

We are here for You!

Were we able to arouse your interest? Please feel free to contact us at blog@leogistics.com.

Matthias Kraus
Consulting Director SAP EWM

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Why Digitization and AI Will Determine the Success of Warehouse Logistics in the Future https://leogistics.com/en/blog-en/digitization-ai-warehouse-logistics/ Mon, 16 Jan 2023 09:26:22 +0000 https://leogistics.com/?p=40741

The requirements in warehouse logistics have grown steadily in recent years, especially in terms of flexibility. More and more frequently, the warehouse is expected to provide value-adding additional services, while at the same time the number of process participants is increasing. End-to-end digitalization, IoT and the use of intelligent analytics for planning and forecasting are becoming economic success factors.

After fields such as development and production, companies should now also tackle the digitalization of their warehouse logistics. Real-world projects show that major efficiency and cost potentials can be leveraged through better IoT networking and data integration. The data provides the foundation for using machine learning to better predict, for example, how long the loading or unloading process for a truck delivery will take, how many people are needed in the loading team, or what optimal time slots can be provided for logistics partners. In the warehouse itself, AI algorithms also help to better understand, for example, which quantities are needed for reorders or which combination of items is picked particularly frequently and should therefore be stored in storage locations that are close to each other. AI applications enable better predictive quality, contributing to better warehouse management that keeps the right product in the optimal storage location. Digitization also makes it easier to adapt to increasing fluctuations in market activity.

Transparency Cannot Be Achieved Without Data Integration

However, the current study “Better Collaboration in Logistics” by the German Logistics Association (BVL) and Arvato shows that there are still significant gaps in digitization in intralogistics, despite the fact that this is precisely the field in which companies collaborate intensively. At 90 percent, almost all companies rate fully digital processes as the most important success factor. It is true that around 85 percent of the 600 companies surveyed aim to reduce costs through more efficient processes and personnel deployment. In industry in particular, almost three quarters of the companies (74 percent) would like to see an increase in transparency. However, only one in two has so far relied on cloud-based systems. Although, according to the survey, more than 40 percent already use AI microservices for warehouse optimization or mobile apps, these applications are not connected to other IT systems in well over half. The lack of data integration means many optimization opportunities lie idle.

The introduction of scanner technology is an important first step. However, there are a number of hurdles to overcome, firstly in the selection of hardware and secondly in change management for employees. But the automated recording of individual process points, if possible in real time, is the most important prerequisite for achieving greater process transparency and better forecast quality.

230103_Digitalisierung_und_KI_content_EN

From Paper to Closed Loops

Particularly important are systems that are easily and intuitively operated and do not require a long training period: The logistics industry has traditionally had to contend with high employee turnover. Particularly during the Corona crisis, employees are even more likely to be absent; in many cases, they are operating at the minimum anyway. This makes it all the more important to make processes more flexible by optimizing them, so that workflows can be redistributed smoothly even with fewer staff. The basis for modern logistics concepts that rely on IoT and data analytics is a technology platform that can flexibly cover new and upcoming requirements. In practice, however, solutions are often still found that are either at the end of their life cycle or are not designed to be sustainable. Manual construction sites with paperwork and time-consuming, lengthy searches are part of everyday life. Often, there is no up-to-date inventory overview, not to mention real-time transparency.

However, this is becoming increasingly important, because a lot has changed in recent years: As a rule, there are now significantly more process participants. Unlike in the past, the warehouse is no longer supplied by a central supplier; instead, deliveries are made by various partners for different goods.

Optimizing Order Picking

When it comes to picking, many companies still rely on outdated and non-digitized processes that offer no transparency and are highly prone to errors. A popular variant is still the printed picking list, which serves as a work instruction for warehouse employees. Only after the picking process has been completed entirely the picks are entered manually into the system. As a result, there is neither transparency about the work progress nor about the current inventory situation during this period.

This can be remedied by mobile devices such as scanners or data glasses, which communicate with the system in real time and thus ensure that data is updated. In addition, verification checks can take place to minimize the susceptibility to errors. However, there is much greater potential for optimization with an intelligent warehouse management system. For example, algorithms can be used to calculate the near-optimal order bundling, including route optimization and packaging planning, based on multidimensional decision-making.

Data Connectivity is Important for Efficiency and Traceability

However, a warehouse management platform that relies on AI also depends on integrating the know-how of the employees into the system in order to be able to react flexibly: After all, warehouse experts often know best where things are located and what special treatment each customer expects. The system decides how to distribute work based on these criteria, among others, and must be fed with knowledge accordingly. Master data quality is therefore one of the ultimate drivers for successful digitization projects. This includes a wide variety of information, such as which supplier is often late or at the wrong gate, how packages are delivered, or how large the container units are.

The question of how warehouse management is connected with adjacent processes is also becoming increasingly important in another respect. The uninterrupted traceability of goods and pallets is now high on the agenda for many companies. Increasing legal requirements and regulations are also contributing to this. Order tracking is therefore increasingly requested by customers as a function.

The Demands on Warehouse Management are Increasing

Customers are also increasingly demanding additional parameters for tracking goods. For example, a paint manufacturer may want to prove the temperature along the entire warehouse and transport chain to guarantee quality. This requires sensor technology and IoT connectivity. The same applies to the recording of batch values, which are then automatically forwarded to quality management in the batch master record on an integrated platform.

equirements are also increasing where new, value-added services or special processes in the warehouse are intended to take work away from upstream or downstream processes. These can include pre-assembly, cleaning work or, for example, the pre-treatment of steel pipes with corrosion protection agents. Additional logistics services, just-in-time requirements and greater individualization according to customer specifications are becoming increasingly important and crucial to success. The warehouse is perceived more strongly overall as part of the supply chain. If a partner in the digital information flow cannot keep up with the appropriate real-time information, breaks in the chain will occur. For SMEs, this can become a problem, for example, if enough other competitors fit more seamlessly into the digital supply chain. It is therefore worthwhile to tackle the digital transformation in the warehouse as well.

We are here for you!

Were we able to arouse your interest? Please feel free to contact us at blog@leogistics.com.

Matthias Kraus
Consulting Director SAP EWM

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Great Flexibility for Your Transportation Processes with Conditions in SAP S/4HANA TM https://leogistics.com/en/blog-en/flexibility-transportation-conditions-tm/ Wed, 14 Dec 2022 13:01:29 +0000 https://leogistics.com/?p=40552

Set Conditions in Transportation Management and Avoid Pitfalls

Automation and flexibility in transportation management are essential, because manual processes cost time and time is money. Making decisions is one of the many processes in transportation management that you want to standardize and accelerate through automation. For example, when deciding which freight agreement to use depending on the purchasing organization, carrier, means of transport, and so on. One way to realize automation and flexibility at the same time is to use decision tables and conditions via the Fiori Launchpad. 

How to create condition definitions

One of the many advantages of conditions: There is no need for additional programming and new situations can quickly be responded to by adapting or extending the configuration, without the need for development skills. The areas of application are diverse in nature. Wherever process decisions are to be made on the basis of if-then formulations, by defining individual selection values or excluding certain values or entire ranges of values, and these condition values can be in a state of dynamic change, the use of decision tables can provide an enormous advantage in terms of flexibility, but also simplification for the customer. 

To create a condition definition in SAP TM, one opens the conditions worklist via the SAP Fiori Launchpad. From there you can create new conditions or modify existing conditions. 

flexibility with all conditions
Work list Conditions

Data Access Definition as Basis

The basis of each condition is the data access definition. Here you specify which BOPF data objects or values are to be evaluated in the definition. You can already create sufficient complexity here, as you can choose between business object-based, data crawler-based or class-based data access definitions. The latter will again require development capacities, while the former will access standard information of a BOPF object. 

data access definition
Business object-based data access definition and Class-based data access definition

Once you have set up the data access definition, the interesting part of the condition definition begins – the combination of values (include/exclude) that lead to certain results. It is important to know  that besides include conditions there are also exclude conditions. So values can be included or excluded. This is already known from the selection options in SAP ABAP screen fields. But a pitfall is that in the standard only includes can be created at first and only at second glance the excludes are available. 

include condition
Direct value input (1) leads to an include condition (2)
Change value input - add excludes via change button

Pitfalls

Unfortunately, there are a few small stumbling blocks when creating conditions that lead to undesired results. Troubleshooting is then difficult. The cause is often already in the configuration of a condition – i.e. in the decision tables. Especially if the condition is a bit more complex, debugging becomes a little adventure. Now, sadly, not every non-computer scientist has had a course in propositional logic, but this is an important basis for understanding how decision tables work. 

Use case: Billing agreement determination

In our example, a freight agreement is to be found on the basis of several values, which will be used for cost determination. Specifically, a freight agreement is to be found for carrier 519862 with means of transport Z001 for a freight order that only contains material of freight group MOLKEREI. 

But due to an incorrectly set condition, the wrong agreement was determined all the time. On the basis of this, we can easily explain various pitfalls, such as the problem with the logic and why there is an error message: Namely, no freight costs were determined at all. 

faulty condition
Error message due to incorrect condition

The incorrect condition

faulty condition_02
The faulty condition

Conditions are always processed sequentially!

  • Conditions are therefore processed from top to bottom until a condition is fulfilled. Therefore, the order can be very crucial. In the example above, the last line must not be in the first place, because all freight orders fulfill this condition, because it simply does not matter which values this freight order has. 

 Each value column is connected by an AND!

  • Here we are using propositional logic. All values of a line must always be fulfilled, so that the condition is fulfilled.  

A line is thus read as follows: 

  • If the purchasing organization = 0020  
  • AND the transport service provider is 0000519862  
  • AND the country is = DE  
  • AND any means of transport (so it doesn’t matter which one)  
  • AND any material freight group  
  • AND any notified quantity  
  • AND any order reason  
  • AND any document type… 

… then the agreement 8100000005 applies. 

Caution: There are also stumbling blocks

There are a lot of stumbling blocks in the area of conditions and propositional logic. The easy ones are that you made a mistake, that you entered wrong values or that you entered too many values which prevent the condition from being fulfilled. But there are other pitfalls that are easy to overlook at first glance. 

Let’s start with the first stumbling block: the freight order has entered the required values, the condition is evaluated and the agreement 8100000005 is found. Nevertheless, no calculation takes place – the freight costs cannot be determined. Here the invisible error is in the found agreement or in the tariff price table behind it. 

tarif price table
Tariff price table

This is only valid for the material freight group HMILCH. This means: the condition was configured incorrectly in that the material freight group was not limited accordingly. If the agreement is only valid for HMILCH anyway, then this information must be entered as well. 

After correcting this error, we already get to the next stumbling block, because we get the next wrong value – agreement 8100000009. After all, we wanted a condition in which the means of transport is neither Z001 nor Z002. 

The logic behind the conditions

In Figure “faulty condition”, dot 2 marks the error. However, it only becomes visible to the logic eye when you edit it. 

detailed conditions
Condition in detail

If you change a value in a column and want to enter several values, these are always linked by a logical OR. But this also means exactly that: A logical OR is always true if one or both variable values are true. In logic, one likes to write logical operation tables to see when an expression is true or not true. 

logic table
Logic table for AND (Λ) and OR (V)

A logical OR is a disjunction, logical AND is a conjunction. We don’t have to discuss that the term “OR-connection” is simpler, but science is sometimes characterized by using as complicated terms as possible to say that actually everything is quite simple. 

However, the picture illustrates the problem of our above condition quite well. It is valid that the means of transport “must not be equal to Z001 or not equal to Z002”. Visualized as a logic table, it also becomes visible where the problem lies if a means of transport is actually Z001 and why the condition is nevertheless fulfilled. 

In the following representation the NOT is still represented as a column. The NOT means a reversal of the truth value. So if the means of transport is equal to Z001, then the expression “NOT Z001” is false. The result of an expression is then in the link column – here OR as a gray column. So from the white column the value in the yellow column is negated and the linkage from both yellow columns is in the gray column. 

logical or
logical OR
truth value 3rd row
Truth value 3rd row

This means: 

  • If Z001 True, then NOT Z001 is False. 
  • If Z002 False, then NOT Z002 is True. 

So if NOT Z001 is False OR NOT Z002 is True, then the expression is also True – because one of the two must be True for the whole expression to be True. 

Now we have found the problem: If the means of transport is Z001, then yes, it is necessarily not Z002, thus satisfying the OR condition, and thus we find the wrong freight agreement 8100000008 – wrong because, after all, it is not supposed to be either Z001 or Z002. 

The solution

Now how to prevent such a problem in the conditions? Logic comes into play here as well, in the form of “De Morgan’s rule”:  

  • not (a and b) is equivalent to ((not a) or (not b)), as well as not (a or b) is equivalent to ((not a) and (not b)). 

In our example we want to cover exactly the latter rule: “Not Z001” and “Not Z002”. So the OR equivalent to this is “NOT (Z001 OR Z002)”. This means that instead of including an expression like “NOT Z001”, we simply need to exclude an expression like “Z001”. Because then the OR rule will work as desired.

The expression is only true if neither Z001 nor Z002 are set. 

Transformed logic table

Implementing the solution

Now, to implement this solution, let’s remember the possibility of inserting excludes and includes. As already mentioned, this is done via a detour. First we select the “Direct value input”. Then we select Change and “Insert Exclude Condition”. This is awkward because the include condition is still there. But this will be deleted immediately. And then we see what we want to see: the desired “not”. 

The exclude condition is indicated by the "not".

We add a second exclude condition and equip it with “is equal to” Z001 or “is equal to” Z002. Because we want to say: “not” (equal to Z001 or equal to Z002) – see Figure 13: Transformed logic table. So you have to think the other way round, because the “not” is outside the imaginary bracket. 

The correct exclude condition: "not" (equal to Z001 or equal to Z002)
Agreement as desired

Now the system also finds the correct agreement because no other condition applies to the freight order, namely 8100000023 and not 8100000009 as before. In the end we “only” applied a logic rule and created the new condition “not (Z001 or Z002)” from “not Z001 and not Z002” and built it into the condition configuration. 

We are here for You!

With correctly set conditions, you can simplify many steps in SAP S/4HANA TM in the area of transportation processes, contracting or freight cost calculation. It is worthwhile to delve deeper into the topic of propositional logic. Did we spark your interest or do you have any questions? Please feel free to contact us at any time at blog@leogistics.com.

Silvio Funke
Senior Technical Consultant SAP Logistics 

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“The yard is the central hub for our entire supply chain planning”. https://leogistics.com/en/news-en/site-logistics-supply-chain-migros/ Tue, 13 Dec 2022 11:19:25 +0000 https://leogistics.com/uncategorized/the-yard-is-the-central-hub-for-our-entire-supply-chain-planning/

Interview with Daniel Balmer, Head of Transport Logistics Genossenschaft Migros Ostschweiz

Genossenschaft Migros Ostschweiz is a long-standing client of leogistics GmbH. Over the course of time, the retail company has already implemented many innovations. In this interview, Daniel Balmer, Head of Transport Logistics Migros Ostschweiz, talks about the special role of transport and site logistics at Migros.

Hello Mr. Balmer, thank you very much for the invitation! Could you please tell our readers briefly where we have met today?

Daniel Balmer (DB): We are in the transport headquarters of Migros Ostschweiz. On the one hand, this is the heart of our transport planning, but on the other hand, this is also where the ready-picked pallets – such as fruit, vegetables and flowers – but also pallets with food and non-food articles are prepared for loading. Dairy, convenience and meat pallets are also loaded at the Gossau site. We transport around 8,800 pallets per day and drive 20,000 kilometers in the region of eastern Switzerland.

How would you describe your role and career at Migros?

DB: I have now been in the profession for 41 years, 37 of them in this company. In the meantime, I have done almost everything you can do in logistics: classically from clerk, to project manager, to line responsibility, and always had very “cool tasks” to solve. For example, as head of intralogistics, I was allowed to introduce the fully automated picking systems. That was the reason why I stayed for 37 years in the end: because it was always very exciting and challenging.

My boss once said: “You are responsible for everything that has wheels. I gulped. When he added: “except for the shopping carts,” I was somewhat reassured. In other words, I had to build up expertise in all the transport networks, develop them digitally and also manage them.

Today, I am responsible for the entire transport logistics. Whenever the individual orders from the stores are combined into a pallet ready for shipment, my organization takes over this pallet, processes it, transports it to the stores and takes back empties. I am also still responsible for the rail business as well as the returnable container management of Migros Ostschweiz. In addition, waste disposal is also part of my responsibility.

Can you still remember how you got in touch with leogistics back then?

DB: We have been working together for a very long time, certainly five years. The first contact was at LogiMAT. We went around the software exhibition hall and rummaged through all the companies: Who offers what we are looking for? Then we were referred to leogistics, a company we didn’t know at the time. And then it happened as follows: You’re looking for a product, but you’re also looking for a provider that fits your own philosophy – in terms of style, approach, or simply in terms of people. Both have to fit. At a trade show, of course, every exhibitor says “We are the best, we have the most interesting product” – that’s natural, we do the same. But for us, it was a matter of finding out where there’s “meat on the bone,” as they say in Switzerland.

Balmer und Geschäftsführer von leogistics bei Werkslogistik Migros

To find out, I took the opportunity to go to the leogistics Customer Day in Hamburg in summer 2017. I wasn’t just interested in what André Käber had to say in his presentation, for example. I was interested in talking to other customers during the breaks and asking: “Why do you choose leogistics? What do they do differently than the other providers?” I still have a lot of contacts from back then and we exchange ideas regularly. And then it worked out relatively quickly with leogistics. That’s how the contact came about.

Why did you choose leogistics Yard Management?

DB: The flexibility in process mapping was crucial for us. I have a clear idea of how I want to do “my” business in the future – but not in terms of functionality, but in terms of process. I always think and act from the process, I am a process person.

The process is in the foreground and, in my mind, IT must always adapt to the process. Very rarely, I tried to adapt the process to IT, but that usually went wrong. So I had to find a provider who would develop their software with me, with the features that I see as the basis. With leogistics, I understood that they would do this development together with me. You push each other forward. Some come from the technical side, I develop the process. For that, I needed someone who thinks and acts in the same way.

If we look back to the period when you realized that something was not running perfectly at your company: What challenges were you looking for a solution to?

DB: The challenge at that time was the following: We had a digital gap to plug. The intralogistics, i.e. the processes up to the ramp – we have mapped these digitally very well in SAP EWM. We handled transportation planning via the non-SAP system Cadis.

But in between, i.e. between EWM and Cadis, there was a hole, practically between site logistics and freight forwarding. On the one hand, there are the shippers who produce something, and then there are the forwarders who ship the goods around the world on behalf of the shipper. But the in-between, that didn’t exist! In intralogistics, they say, “That’s the freight forwarder’s job, not our issue.” The freight forwarder says, “Why should I develop software? I have to ship pallets to the stores!” That’s a source of tension. So we kept wondering, how can we close the gap? Finally, leogistics came up with three modules. One is Yard Management for the trucks, then leogistics Rail for all rail traffic, and at the same time we implemented SAP TM freight cost system with leogistics.

Site logistics is very important to Migros, isn’t it?

DB: I have always placed particular emphasis on supply chain visibility. We look at the process from the supplier to the store. We’ve been doing “ultra-fresh” for about 70 years now. I think we understand the business. It’s the people that make the business excellent. They are better than any software at many points because they can still put emotions, feelings and thoughts into it that a machine can’t do.

The stores are the driver here because they have to think about what the customer will buy and they have to offer that in top quality. There are forecasting tools for this, which we introduced very early on and are constantly developing. If the software predicts what the customer will buy tomorrow, then we have to think the whole process backwards from there – a classic PULL process. But because we are in the ultra-fresh business, there are exactly 24 hours between store order, supplier trigger and delivery to the stores. That’s damn short. We have further divided that into two 12-hour slots. So you have to know in 12 hours: “What does the customer want, when do they need it, when can the supplier deliver it? Then you add picking and delivery to the stores.” In this business, there is little room for waste and even less room for idle time. Everything has to be meticulously planned and timed.

And then there is suddenly a black hole in the on-site traffic, where all the threads come together! Obviously, that’s not an option at all. Yard Management is the central hub for all our supply chain planning and has “plugged” or in other words “eliminated” this digital gap.

The store says when it wants an item and in what quantity. On top of that, there’s the transportation time. From then on, the whole process has to be subordinate to that. The yard needs time to make the plans, the intralogistics needs time to stock the carrier, then the pallets have to be produced right on loading time, then the supplier has to place the goods receipt. That leaves you with damn little time.

Do you need a central operator control station in your process to coordinate all this on the factory floor?

DB: No, we don’t have a control station for the yard. The planning dictates what and when we transport to the stores. It dictates what gate you have to go to and what type of trailer you need. The system used to provide for a specific trailer. Then the on-site transport department had to search for the exact location of the trailer. Today, the system says, “At this gate, I need a trailer with 33 pallets at 11 p.m.” The leogistics Yard Management then takes over checking which trailer is available. But if the on-site transport department takes another suitable one, it doesn’t matter at all. And that is the big advantage.

We have implemented a dispatch center as the heart of the solution in the background, so to speak – but it works automatically! There is a shift supervisor who has overall responsibility. This person works himself, but has a second tablet and can manage certain jobs from there. But usually he doesn’t do that, because the system assigns the orders automatically. So the people work almost on the same level with the same responsibility and all have to manage the loading wave together.

How important was the human factor in the project?

DB: When you work in an operation that is busy around the clock almost 365 days a year, you always have departures, interfaces, vacation replacements, and above all shift changes, etc. That’s where information gets lost, that’s where it becomes inefficient, that’s where you can’t find the trailers or you put the wrong ones. Software is simply better because it has one big advantage: it doesn’t forget.

We wanted to simplify the process. Whenever new people joined, it became difficult. Or when shifts changed. An enormous amount of resources and time were lost. In addition, for a while we had problems finding people for on-site transport. I asked myself why that was, and realized that the problem was the increasing complexity in the yard.

That means drivers today feel more comfortable with their work orders on a tablet and work through them?

DB: Exactly, but it’s also the case that people know what the next job is, but they can do something different! There’s just one commitment: if they do something differently, they have to “tell” the system. That was a feature we developed together with leogistics:

With Yard Management, it’s like a navigation system: if I don’t know my way around, I’ll just follow the system’s suggestion. In this way, the system gives me security and I get to my destination! However, if you know better from a lot of experience, then do it that way, you just have to let the system know. This combination is what makes the software successful for us. These are clever functions and thus bring added value.

Thank you very much for the great interview, Mr. Balmer!

]]>
The Warehouse as a Valuable Part of the Supply Chain https://leogistics.com/en/blog-en/warehouse-valuable-supply-chain/ Mon, 12 Dec 2022 09:37:18 +0000 https://leogistics.com/?p=40031

How can a warehouse be transformed from a necessary cost factor to a proactive or even value-adding part of the supply chain? By using warehouse management platforms based on networking and IoT to capture complexity and create transparency. But this requires a new mindset. 

The warehouse in the field of tension between dynamic processes and needs

A warehouse always moves in a field of tension between a dynamic process with many process variants and many needs to provide the goods at the right time. Delays have an effect on the subsequent process, and the more closely a supply chain is to be interlocked, the more important it is that the required components for the individual steps in the warehouse are available as planned. So on the one hand, the processes must remain robust. On the other hand, the IT solution used for this purpose must be easy to use for employees. 

A warehouse management platform must therefore map highly complex, end-to-end processes. In addition, the support processes should also be integrated in order to control the assortment according to demand via purchasing and supply. This also includes inventory and replenishment control. Optimally, these processes have no influence on the operational business: Inventory is taken in the plant and replenishments are calculated in such a way that throughput is ensured. 

In the warehouse, time is money

Structured putaway is also important in order to achieve the optimum in order picking. For example, if fast-moving goods are stored incorrectly, it takes significantly more time for each pick. In order to achieve the most efficient picking process possible, classic static criteria, comparative values from the past, but also increasingly intelligent algorithms based on machine learning help to determine where which material is stored. 

Particularly important are the integration of material flow systems and complex high-bay warehouse systems into end-to-end processes. Direct integration enables successful networking right down to the drive and process level. This makes it possible to react much more flexibly to changes in order situations, exceptions and new strategies – for example, by optimizing warehousing during periods when operations are slow. In addition, direct integration makes it possible to streamline the system landscape by eliminating intermediate systems. 

IoT and RFID set new transparency standards

If the warehouse is to contribute more value, cost reduction through optimization of space and throughput times is the imperative. To achieve this, the integration of live and inbound data is crucial: Where is the truck that is supposed to bring or pick up goods currently located? Where are the boxes that need to be loaded without the truck having to wait? Any movement that works too slowly costs money. IoT technology today enables real-time visibility. Better warehouse planning can yield savings in the range of 30 to 50 percent in execution, depending on the scenario. 

Networking is fundamentally an important aspect for warehouse optimization: RFID technology is particularly suitable for this, as transponders have now become significantly cheaper. If the technology is used consistently and cleanly, then workflow management can be made considerably more flexible. Orders are then automatically distributed to a wide variety of handheld devices, so that employees can get started right away instead of waiting for paper documents. RFID makes manual intervention obsolete, ensures greater efficiency and, thanks to seamless tracking, fewer goods are lost. At the same time, the system can use the real-time data to react very quickly to certain conditions in an automated manner – faster than a human being: For example, it can recognize that there is a very high workload in one part of the warehouse, so that personnel can be brought over from another area.  

Sustainability and new value-added services in the warehouse

The better the warehouse is organized, the more likely it is that companies will be able to combine orders and shipments in a cost-saving manner, thus saving on loading slots, loading capacity and transportation costs. By combining orders in a way that cleverly fills up the truck (tendering), savings of 30 to 40 percent on freight costs can be achieved. Above all, however, a step can be taken here toward significantly greater sustainability – a topic that will continue to gain relevance in the coming years. 

Digitization also makes it possible to turn warehouse management into an enabler for subsequent processes and to offer added value. Typical value-added services are, for example, finishing and assembly activities on the factory premises or directly in the warehouse. Some companies use cobots to perform simple assembly tasks in the logistics environment. The exact documentation of packing instructions or traceability, the importance of which has increased massively in recent years, also help companies to increase their service level to their customers – a classic win-win situation.

We are here for You!

Were we able to arouse your interest? Please feel free to contact us at blog@leogistics.com.

Matthias Kraus
Consulting Director SAP EWM

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“Slotting” or Warehouse Disposition and Reorganization – Underestimated Topics in SAP EWM https://leogistics.com/en/blog-en/storage-disposition-reorganization-ewm/ Mon, 12 Dec 2022 09:14:27 +0000 https://leogistics.com/?p=40006

A topic that still does not receive much attention from customers is storage disposition in SAP EWM, better known as “slotting”. Often the interaction between storage disposition and warehouse reorganization is relevant as well. The storage disposition can be understood as a part of the master data concept. With its help the optimal material master data for the storage of a product can be determined on the basis of certain criteria. Thus, the putaway strategy in EWM is also influenced by various master data. In order that the optimal material master data can also be determined, further master data and customizing entries must be cultivated for the determination. The condition technique can be used for the determination.  

Parameter storage disposition

The following parameters, which are updated in the product master, are influenced during storage disposition: 

  1. Putaway or stock removal indicator 
  2. Storage section indicator 
  3. Storage bin types in storage type 
  4. Maximum/minimum quantity per storage type 

While step one is always executed by the EWM, steps two, three and four can be optional. Steps one to three are determined using condition technique. This can be used to filter certain results based on parameters such as length or color. In step three, you can alternatively maintain customizing entries for determination, which in turn are determined at the storage type level. In practice, the focus for putaway should be on the first three indicators. 

type data
Extract from transaction /SCWM/MAT1 - "Storage type data" tab

How to Define Important Factors for Storage Disposition

In addition to the four indicators mentioned above, there is a separate area in /SCWM/MAT1 for storage disposition. In this area, further influencing factors can be defined, which in the end can be used for the determination of the three mentioned criteria. 

The requirement quantity, the sales order position and the recommended storage position are dimensionless values at first, which can be interpreted freely for itself, but used for the deduction of the requirement indicators. The requirements indicators are derived from the quantities in the material master (requirements quantity, sales order quantity and recommended stock quantity) and the intervals defined in customizing. Once a requirements indicator has been determined, it can in turn be used to determine the indicators required for putaway (e.g. storage section indicators) using the condition technique. The quantities to be specified can be maintained manually in the material master or imported via interface. This can be done via the standard APO interface or an external system.  

Another way to determine the three most important putaway indicators is to determine the dimension indicators. In the material master, the values must be maintained in the basic data so that they can be matched with the intervals from customizing. If the data is determined correctly, the indicators for each dimension indicator are updated in the material master. The indicators can then be used to determine the three putaway indicators using the condition technique. 

This is How the Storage Scheduling or Slotting Process is Executed

Slotting is carried out using transaction /SCWM/SLOT and is determined from a combination of customizing and master data. The result is the optimal values for the putaway control indicator, storage section indicator and storage bin type indicator. We do not consider the maximum storage quantity in this article. 

For an example scenario, let’s take the following warehouse data in the material master /SCWM/MAT1: 

  • Putaway control: YQ05 – Product for bulk storage B 
  • Storage section indicator: 0003 
  • Storage bin type: YPR 1 – High rack bin with bin section 

Beforehand, the PPF condition records for the CON application (storage disposition) were defined using transaction /SCWM/DLVPPFC. Separate condition types were created for the determination.  

For the determination of the correct putaway control indicator it was defined that the warehouse product groups 0001/0002, which were maintained in the product master, receive the putaway control indicator Y090. 

The storage section indicator is determined using the required quantity indicator. The required quantity has been stored in the product master and the corresponding intervals for quantity reconciliation have been stored in customizing. For example, if the BIGT indicator is determined, the product receives the storage section indicator Y002. 

Storage bin type determination: How SAP EWM determines bin types

For bin storage type determination there is no condition technique, but the storage bin determination rule defined at the storage type level in customizing. The determination requires on the one hand the dimensions for the bin type and on the other hand a packing specification for the product. In the packing specification, the dimensions of the packing material are defined. This allows the system to match the dimensions of the bin with the dimensions of the packing specification. 
Customizing storage bin type
Extract /SCWM/PACKSPEC

Determination of the optimal master data for all three indicators.

After the customizing and the master data have been coordinated, the determination of the optimal master data for all three indicators can begin via the /SCWM/SLOT. First, it must be determined which factors should be used for the determination of the indicators.  

The following would be relevant: 

Relevant indicators for storage tax indicator, storage section indicator and storage bin type indicator

Two-Step System in SAP EWM

After carrying out the storage disposition, you will receive a detailed protocol for the determination of the three indicators. If the determination was successful, then the values must be transferred to the product master. SAP EWM offers a two-step system for the transfer.  

First, the values can be transferred as “planned value”. Then, the planned values can be transferred as actual values. After the update is done, the indicators for the future putaways are taken into account in the putaway strategy. It is also possible to freeze the values so that an update by the /SCWM/SLOT is blocked. 

With the updating of the master data, you have now created the basis for the putaway strategy and thus also the basis for the warehouse reorganization. We will introduce the warehouse reorganization to you in another blog article. 

We are here for You!

We do not encounter Slotting very often at our customers. On the one hand, this may be due to the fact that Slotting is only available with an additional license (part of the Advanced function) within the scope of Embedded EWM. On the other hand, Slotting initially seems daunting to many customers because of its complexity. But it is worthwhile to take a closer look at the topic! When dealing with storage disposition, it is also possible to introduce only partial areas at first and thus keep the complexity within limits. In combination with warehouse reorganization, storage disposition can be a good asset for the organization of one’s warehouse. Do you have any questions? Contact us at blog@leogistics.com.

Daniel Rotter
Senior Consultant SAP Logistics

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SAP S/4HANA Fully Activated Appliance (FAA) At A Glance https://leogistics.com/en/news-en/faa-fully-activated-appliance-sap/ Tue, 06 Dec 2022 10:59:23 +0000 https://leogistics.com/?p=40016

The so-called Fully Activated Appliance (FAA) is a system that has been developed by SAP for companies, partners, employees, public users etc. to have a perception of what the S/4HANA system has to offer. It is not only supposed to give you an inside view, but it is also easy and fast to get it up and running. Throughout the project phases, employees, consultants, partners etc. usually like to see sample master data, carry out some sample testing and view live demo sections of different scenarios related to their business to understand and get acquainted with the new system, especially regarding the implementation of the new S/4HANA Transportation Management (SAP TM).

Use of FAA

The Fully Activated Appliance can be seen as a pre-packaged system template which comprises of SAP S/4HANA software, pre-activated so-called SAP Best Practices with additional configurations for end-to-end business processes as well as prepared demo scenarios. More to that, it is made available with incorporated sample master and transactional data as well as some technical configuration such as the Fiori Launchpad. It can be used as trial system for sandboxing, proof of concept or for scoping exercises.

In the S/4HANA FAA, the following SAP Best Practices processes for (Basic) Transportation Management have been activated:

  • Outbound Transportation
  • Inbound Transportation
  • Stock Transport Orders between a company’s facilities

These processes cover example data of a producing company in the US. The demo flow for Outbound Transportation e.g. starts with the creation of a sales order for a customer, and ends with the verification of a carrier invoice.

Freight Orders Worklist
worklist of freight orders

The Fully Activated Appliance system is easy to get, as it can be deployed:

  1. via the SAP CAL (Cloud Appliance Library)
  2. via an on-premises hardware.

Getting FAA via SAP Cloud Appliance Library

The Fully Activated Appliance is made available via SAP CAL which is an online library containing pre-designed and ready-to-use SAP business solutions deployed into your own cloud account.  

For the deployment, the CAL requires a hosting environment with a cloud provider such as Amazon Web Service (AWS), Microsoft Azure or Google Cloud Platform (GCP). 

This method is fast and will take approximately 1-2 hours to have everything set up and ready for immediate use. Once the installation is done, you will have available technical components such as the SAP S/4HANA, SAP NW JAVA / Adobe Document Services (ADS), SAP Business Intelligence (BI) Platform and Remote Desktop. The Remote desktop and the BI platform can only be tested via the SAP CAL but remain optional.Not using them will reduce the fee. 

Using the SAP CAL, it is also possible to have a free one-month trial which gives you the opportunity to get a first impression of the system. If it fits your requirements, you can then decide to extend it by buying the SAP CAL subscription license. 

Getting FAA via SAP On Premise

SAP has also given the possibility to have the installation done on your own personal hardware by downloading it directly or by shipping them out via Blu-ray discs. But be aware that installations using this method are different from a “normal” SAP installation, so the support of e.g. an experienced SAP partner will certainly be useful.

More to that, with the on-premises installation, you can only get technical components suchs as the SAP S/4HANA and the SAP NW JAVA / Adobe Document Services.

SAP S/4HANA FAA in Summary

  • The Fully Activated Appliance provides a better insight into the S/4HANA system as it contains SAP’s Best Practices.
  • It remains a great and awesome tool as it contains all necessary prerequisites to carry out Basic Transportation Management demos.
  • There is flexibility in getting the installation as you can get it via the SAP CAL or on premise.
  • SAP offers a 1-month free trial when using the SAP CAL.
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