Table of Contents

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Preface
17
Acknowledgments
23
PART I Procurement and Logistics Execution
25
1 Introduction to Logistics with SAP
27
Origins of SAP
27
SAP and Logistics
30
Logistics Functionality
34
Procurement and Logistics Execution
34
Product Development and Manufacturing
35
Sales and Service
37
Conclusion
39
2 Procurement
41
SAP Organization Structure
41
Creating the Client Landscape
42
Company Code
43
Plant
44
Storage Location
45
Warehouse
46
Storage Type
47
Storage Section
48
Storage Bin
48
Purchasing Organization Structure
48
Purchasing Organization
49
Purchasing Group
52
Purchasing Process
53
Purchasing Best Practices
53
Purchase Requisition
55
Request for Quotation (RFQ)
57
Quotation
58
Purchase Order
58
Accounts Payable and Invoice Verification
61
Three-way Match
62
Evaluated Receipt Settlement
63
SAP Supply Network Collaboration
65
Master Data
65
Demand
66
Purchase Order Collaboration
70
Supply Network Inventory (SNI)
71
Demand Collaboration
72
Invoice Collaboration
72
Ariba
73
Buyer Solutions
74
Seller Solutions
75
Financial Supply Chain Management
76
Summary
76
3 Inventory Management
79
Plant Structure
80
Plant
80
Storage Location
82
Goods Movements
83
Goods Receipt
84
Goods Issue
84
Returns
85
Reservations
86
Stock Transfers and Transfer Postings
87
Physical Inventory
93
Physical Inventory Procedures
93
Preparing for the Physical Count
94
Performing the Physical Count
95
Count Discrepancies
95
Completing the Physical Inventory
96
Summary
97
4 Warehouse Management
99
Warehouse Structure
100
Warehouse
101
Storage Types
102
Storage Section
103
Storage Bin
104
Quant
105
Warehouse Movements
107
Movements Triggered by SAP Inventory Management
108
Transfer Requirement
108
Transfer Order
110
Printing Transfer Orders
113
SAP Extended Warehouse Management
115
Organizational Structure
116
Documents
119
Warehouse Processes
119
Summary
121
5 Inbound and Outbound Logistics
123
Inbound Logistics
124
Shipping Notification
124
Manually Created Inbound Deliveries
125
Delivery Monitor
126
Goods Receipt
127
Outbound Logistics
131
Outbound Delivery
131
Picking
132
Packing Using Handling Units
134
Goods Issue
134
Proof of Delivery
136
Summary
136
PART II Product Development and Manufacturing
139
6 Product Planning
141
Sales and Operations Planning
142
Standard Sales and Operations Planning
142
Flexible Sales and Operations Planning
144
Master Data in Sales and Operations Planning
144
Reporting
145
Forecasting and Replenishment
149
Integration with SAP Retail
149
Demand Influencing Factors
149
Forecasting and Replenishment Processor
151
Order Proposal Management
151
Demand Management in SAP ERP
152
Make-to-stock Strategy
153
Make-to-order Strategy
154
Strategy for Configurable Materials
155
Planned Independent Requirements
156
Customer Requirements
157
SAP Advanced Planning and Optimization
159
Supply Chain Model
159
Supply Chain Cockpit
160
Supply Chain Collaboration
162
Service Parts Planning
163
Transportation Management
164
Supply Network Planning
165
Supply Network Planning Process
165
Safety Stock Planning
167
Source Determination
168
Demand Planning in APO
169
Demand Planning Process
169
Characteristics-based Forecasting
172
Characteristics-dependent Planning
173
Customer Forecast Management
173
Materials Requirements Planning
173
Planning with MRP
174
Executing the Planning Run
174
Global Available-to-Promise
177
Product Availability Check
177
Product Allocation
178
Forecast
179
Rules-based ATP Check
179
Multi-item Single Delivery
179
Production Capable-to-Promise
179
Production Multi-level ATP Check
180
Summary
180
7 Manufacturing Operations
183
Manufacturing Structure
184
Work Centers
184
Bill of Materials
188
Routings
190
Routings for Configurable Materials
191
Production Resources and Tools
192
Shop Floor Control
193
Production Order
193
Confirming a Production Order
198
Production Order Settlement
200
Printing Shop Papers
201
Order Information System
202
Product Costing
203
Cost Estimate with a Quantity Structure
204
Cost Estimate without a Quantity Structure
205
Summary
206
8 Plant Maintenance
209
Maintenance Organization Structure
210
Functional Location
210
Equipment
213
Preventive Maintenance
218
Maintenance Task List
218
Maintenance Plans
221
Maintenance Scheduling
223
Maintenance Processing
226
Maintenance Notifications
226
Converting Notifications to Maintenance Orders
229
Maintenance Orders
229
Summary
233
9 Quality Management
235
Quality Management Structure
237
Catalog
237
Code Groups
237
Code
237
Selected Set
238
Inspection Characteristic
239
Quality Planning
239
Material Specification
240
Inspection Plan
241
Quality Notifications
243
Customer Complaint
243
Complaint against a Vendor
244
Internal Problem Report
245
Notification Monitoring
246
Quality Inspections
247
Inspection Lot
248
Recording Results
250
Defects Recording
252
Usage Decision
252
Quality Certificates
254
Reporting
255
Summary
258
PART III Sales and Service
259
10 Sales Order Management
261
Sales Structure
262
Sales Organization
263
Distribution Channel
264
Sales Division
265
Sales Office
266
Sales Group
267
Sales Ordering
268
Customer
268
Customer Inquiry
271
Customer Quotation
272
Sales Order
273
Scheduling Agreement
274
Contract
275
Credit Memo
279
Shipping Processes
280
Packing
280
Outbound Delivery
281
Goods Issue
282
Billing Function
282
Billing Process
282
Creating Billing Documents
284
Reporting
285
Summary
288
11 Customer Service
291
Service Structure
293
Material
293
Equipment
294
Functional Location
295
Installed Base
296
Service Agreement
297
Service Contract
298
Warranty
302
Service Processing
304
Service Notification
305
Activity Report
306
Service Order
307
Repair Order
308
Confirmation
311
Billing
312
Customer Relationship Management
313
Installation Management
313
Service Contract
314
Service Plan
314
Service Order Management
315
Complaints and Returns Management
316
Summary
317
12 Transportation Management
319
Transportation Planning
320
Transportation Planning Point
321
Shipping Type
321
Routes and Stages
322
Forwarding Agent
324
Shipment
325
Transportation Planning List
328
Shipment Status Monitor
329
Freight Costs
330
Modes of Transportation
330
Shipping Rates
333
Shipping Costs
335
Transportation Execution
336
Check-in List
336
Shipment Completion List
337
Posting Goods Issue
338
Summary
339
PART IV Implementation and New Technologies
341
13 Implementation
343
SAP ERP Implementation
343
Why Implement SAP?
344
Implementation Methodologies
345
ASAP Methodology
346
Project Preparation
348
Business Blueprint
350
Realization
352
Final Preparation
353
Go-live and Support
354
Operate
356
Logistics Rapid Deployment Solutions (RDS)
356
Benefits of RDS
357
Implementing an RDS
357
Total Cost of Ownership
359
History of Total Cost of Ownership
359
Direct and Indirect Costs
359
Calculating the Total Cost of Ownership
361
Return on Investment
362
Objective Measurements
363
Subjective Measurements
364
Summary
366
14 New Technologies and Conclusion
367
SAP NetWeaver
367
Integration
368
Key Benefits
368
Service-Oriented Architecture
369
Services and SOA
369
SOA with Enterprises
370
Enterprise Services Bundles
371
SAP Supplier Relationship Management
372
Core SRM Functionality
373
Supplier Collaboration
374
Supplier Base Management
374
SAP Product Lifecycle Management
374
History of PLM
374
Benefits of SAP PLM
375
PLM Integration
375
SAP PLM Functionality
375
Mobility and Logistics
377
SAP Mobile Platform
377
Mobile Platform Solution
378
SAP HANA
379
Real-Time Analytics
379
Real-Time Applications
380
Advantages of SAP HANA
381
Conclusion
382
Lessons Learned
382
Future Direction
386
Appendices
389
A Bibliography
391
B Glossary
393
C The Author
403
Index
405