SCM 601 - Theoretical Content

SCM 601 - Logistic Execution
Unit 1 - Introduction
Logistics Execution is an application component of the solutions mySAP Supply Chain
Management (mySAP SCM) and mySAP Enterprise Resource Planning (mySAP ERP).
Both are, in turn, part of mySAP Business Suite.
The principal advantage of SAP ECC is the extensive integration of its components in the
entire system. The individual business applications are not placed next to each other without
any connections, but instead access the same master data and exchange transaction data
throughout the process. This integration becomes particularly noticeable when you work with
the component Logistics Execution.
Logistics execution is "kept alive" by the
data flow from other components: ordered
goods or goods produced in-house are
delivered and putaway. Sales and
Distribution enters a sales order. This order
is then delivered by picking goods from the
warehouse, packing them, loading them,
and finally transporting them to the
recipient.
Within the framework of mySAP SCM and
mySAP ERP, Logistics Execution offers
you a package for all logistics execution
functions,
such
as
Warehouse
Management, Shipping Processing, and
Transportation Processing.
Logistics Execution offers you all the functions necessary for mapping the execution of
logistics processes, with no industry-specific bias. The core functions of Logistics Execution
nearly always focus on complex goods receipt and goods issue processes.
If you work with deliveries, the warehouse management activities (creating and confirming
transfer orders) are completed before the inventory management posting. The posting
always refers to the delivery. However, the inventory management posting can also be at the
beginning of the process. It generates a transfer requirement, which is the basis for planning
and posting the warehouse management activities. The putaway or stock removal using
transfer orders completes the process.
Unit 2 - Structure Element

To be able to use the subfunctions of Logistics Execution (Warehouse Management,
Delivery Processing, and Transportation Processing), you must create specific organizational
units, and create relationships between these units and other organizational units.
Each warehouse number includes a number of subordinate organizational units (the number
is dependent on your Customizing settings), storage types, and storage sections, all of
which are used to map the spatial relationships in the warehouse.
The storage type organizational unit is used to map storage spaces that are separated
either spatially or organizationally, or that should be handled separately in SAP ECC. The
standard system already contains a number of preconfigured storage types, such as high
rack storage, fixed bin storage, and bulk storage. You can change these default values as
required, or you can create new storage types as additions or replacements. A main section
of the Warehouse Management (WM) Customizing settings is storage-type-specific. A type
of master data record is assigned to each storage type in Customizing. You make the basic
settings for controlling putaway and stock removal processes separately.
You create storage sections within storage types in order to further subdivide your storage
space. There are various criteria you can use to divide the storage space into storage
sections. The material to be put away in the storage type often plays a decisive role, for
example, because fast-moving items have to be moved into front sections that are more
readily accessible, or because perishable goods must be stored in a refrigerated area.
Depending on the requirements, you can use indicators to create links between materials
and storage sections. The system only takes storage sections into account during putaway.
Picking areas are part of the same hierarchical level as storage areas. You can use picking
areas to divide the space in a storage type for stock removal reasons. In contrast to the
storage section, the picking area is an optional factor.
Storage bins are master data that you create within a storage section.
Interim storage areas

play an important role.
In a standard SAP ECC
system, they can be
recognized by their key
(which starts with a 9).
These storage types
form a type of bridge
between
WM
and
Inventory Management.
Typical examples of
interim storage areas
are goods receipt zones
and goods issue zones.
Storage bins and Quants

In the Warehouse Management System, storage bins are master data that are created from
the user menu or from Customizing. The stock overviews in the Warehouse Management
System give you information about the current storage bin stocks for a material, in addition to
information about various material movements to and from a storage bin.
In SAP ECC, the contents of a storage bin is called a quant. A quant is a material quantity in
a storage bin. In the SAP ECC Warehouse Management system, materials can be viewed
and moved in quants only. The actual material number is irrelevant, as is the unit of
measure. However, there are default criteria, which the Warehouse Management system
uses in putaways and stock removals to decide which material quantity forms a quant in a
storage bin. The criteria are as follows:
Material number
Stock type
Special stock assignment
Plant and storage location assignment of the material
Batch number
Material/Customer Master
Material-specific settings have an immense effect on process control in Logistics Execution.
At master data level, you can specify into which storage type material is put away, and from
which storage type it is removed from stock. You can also enter the standard palletization
data for a material in the material master, in order to enable automation of putaway activities.
The customer master can contain default values for data that controls the shipping process.
Unit 3 - Goods Receipt Processes

Logistics Execution offers you two basic forms of goods receipt process, which will be
explained in this unit.
Goods receipt for purchase order with subsequent putaway
Inbound delivery for purchase order, putaway for inbound delivery, and subsequent
goods receipt posting for the inbound delivery

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SCM 601 - Logistic Execution

transfer orders completes the process.

Unit 2 - Structure Element

Interim storage areas

Storage bins and Quants

Unit 3 - Goods Receipt Processes

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