SAP Community - SAP Supply Chain Management

RISE with SAP advanced PLM package

2024-04-16T07:00:00.027000+02:00

What is RISE with SAP?

The RISE with SAP offering is a managed cloud service (SaaS) that helps organizations using on-premise ERP software – including SAP ERP or SAP ECC and SAP S/4HANA – to migrate to the cloud securely and smoothly. In return, our customers can take advantage of powerful cloud-based business management software with embedded intelligence, real-time insights, and advanced technologies that improve compliance and builds business resilience.

Bring out the best for development teams in product-centric companies

This means a Digital Thread is the integration of product design data across a product’s lifecycle in a circular economic manner for all process steps until the delivery and disposal or re-use at the end customer. Also, product designers want to get insights about the feedback from the products to improve quality or performance continuously. To enable such manufacturing companies building this Digital Thread to accelerate time to market with risk-resilient supply chains, SAP has introduced RISE with SAP advanced PLM package, combining some of the existing key capabilities from its product lifecyle management portfolio.

Engineering teams can develop new product ideas and requirements and visualize the product BOM natively connected to S/4HANA. This groundbreaking innovation empowers engineers to streamline product development and take efficiency to new heights.

Figure 1 Illustration of the Business Process for Product Development from SAP

Introducing the Comprehensive Solution

The newly released RISE with SAP advanced PLM package offering is a game-changer for product developers/engineers in manufacturing industries. This packaged solution provides out of the box functionality for product developers and engineering teams to collaborate beyond the enterprise for new product innovations. It optimizes efficiency across teams and accelerates time to market, improves product quality while meeting highest security standards, using the managed cloud services based on SAP Business Technology Platform and S/4HANA.

The package includes:

SAP Product Lifecyle Management
SAP Enterprise Portfolio and Project Management
SAP S/4HANA Cloud Private Edition, product lifecycle management

The concept of the Digital Thread is a crucial aspect of market-driven decision-making to stay ahead of competitors. This refers to consistent and synchronized product design data throughout its entire product lifecycle, from inception to disposal or re-use. By implementing a circular economic approach, companies can ensure that product design data is effectively utilized at every stage, leading to enhanced efficiency.

SAP Product Lifecycle Management

Define, Develop, deliver and manage innovative and sustainable products by digitalizing product design data for the digital supply chain in the cloud, natively connected to S/4HANA.

Figure 2 Example Screen for managing campaigns with SAP PLM

Product-centric companies can analyze vast amounts of market data, consumer preferences, and trends to evolve their product development strategies and drive innovation campaigns.

Visualization PLM software from SAP is also playing a key role in enhancing physical data with digital images. This improves collaboration and accelerats the product development cycles when the future and or existing product is visually available as so-called Digital Twin. These tools enable teams to seamlessly integrate data from product development with computer-aided design (CAD) models, resulting in improved efficiency and transparency throughout the manufacturing process.

Figure 3 Example screens for data visualization as "digital twins" in SAP PLM

SAP Enterprise Portfolio and Project Management

Identify the projects that can generate the most business value to help you make the right investments at the right time to meet business goals. SAP EPPM enables you to track project costs and revenue, schedule performance by comparing actual values against forcasts.

Figure 4 Example screen for project overview in SAP EPPM

SAP SAP S/4HANA Cloud Private Edition, product lifecycle management

Natively integrated PLM data gains efficiency within the core business application and having full transparency consistent along the Digital Thread.

Figure 5 Example screen CAD data in BOM visualized in SAP S/4HANA Cloud Private Edition, product lifecycle management

Key Features and Benefits

The package empowers product-centric teams in manufacturing companies to bring out their best:

Precise investment planning & real time monitoring of cost, project timelines and progress performance.
Realize the digital thread by keeping information flowing throughout the product lifecycle and eliminate costly silos
Evolve products continuously with feedback loops from customers and sensors to gain insights
Simplify R&D processes to develop new products and collaborate more successful with other teams

Conclusion

In conclusion, the comprehensive RISE package offering for Product Lifecycle Management elevates efficiency of teams to a new level. By harnessing the power of cloud technologies, organizations can accelerate development cycles, reduce redundant manual tasks, and realize a digital thread. Stay in sync across all design, manufacturing and other downstream processes along the digital supply chain like never before. Whether you're an engineer, product designer, buyer, supplier or service technician. Accurate data for product-centric roles are key to success for manufacturing companies. Embrace the future of product development with the journey to transform you business with cloud services. Get started today with the RISE with SAP advanced PLM package.

To learn more about SAP Product Lifecycle Management go to: SAP PLM

To learn more about SAP Enterprise Portfolio and Project Management go to: SAP EPPM

To discover the whole solutions portfolio of SAP PLM go to: sap.com/plm

How strikes affect the supply chain

2024-04-16T12:09:00.773000+02:00

There have rarely been as many long strikes in Germany as there have recently, especially by employees in the transport sector - train drivers, airport security staff, flight attendants, ground staff and public transport workers, bus drivers. All employees from the so-called critical infrastructure sectors, which are indispensable not only for the everyday person, but also for businesses.

A strike in the transport sector not only affects the many commuters, travelers, and schoolchildren, but also the supply chains that make the world run. If employees or the goods required for pre-production, e.g. for car manufacturers, chemical plants or refineries arrive too late or not at all, this can lead to unplanned production losses and can trigger a chain reaction which, in the worst case, can bring the supply chain to a standstill.

Impact of the strikes on the economy and the supply chain

Alongside truck transport, rail is one of the most important transport pillars in the German economy's supply chain.

According to the German Federal Statistical Office, the transport volume moved via rail in 2022 was around 140 billion tonne-kilometres, which corresponds to a market share of 19.8%, low compared to road transport, which has a market share of 71.3%. Nevertheless, rail is an important and indispensable mode of transport for, for example, the transportation of hazardous goods required by the chemical industry, or parts and finished vehicles in the automotive industry. And according to the Federal Ministry for Digital and Transport Affairs, six of the eleven freight corridors in Europe run through Germany.

The recent increase in strikes in the transport sector has therefore not only led to supply bottlenecks and unintentional production losses in the country directly affected by a strike, but also in neighboring European countries, as the required goods arrive there late.

Dealing with risks in the supply chain

Similar to the current Suez Canal crisis, strikes require swift action to identify risks and take appropriate measures to maintain business operations and minimize revenue losses.

However, for proactive supply chain risk management, companies need absolute transparency, flexibility and collaboration across organizational boundaries to take targeted actions that make the supply chain more resilient.

So wouldn't it be cool to have an AI-supported tool in place that uses weather data, traffic data or geopolitical data to formulate possible scenarios that can be used to assess risks and take measures to optimize them, such as switching to other means of transport in the event of a rail strike?

Flexibility to react to the unexpected

To be able to react quickly to change, flexibility is one of the most important factors in maintaining a company's ability to do business. Ideally, this flexibility extends throughout the supply chain so that all companies involved can adapt to new circumstances.

In order to achieve this flexibility, risk strategies need to be designed into supply chain processes in advance. For example, alternative modes of transport should be identified, and rates negotiated for key components, products, and parts, despite possible additional costs, which in turn also reduces the risk of a delivery bottleneck or delivery delay for production and stabilizes the supply chain.

In addition to creating redundancies in logistics, more flexible production can also minimize the risks in production planning itself by using an ERP system with integrated production capabilities. This allows planners to optimize the entire operation, gain insight into all production processes through real-time data access and gain more transparency to make informed decisions.

Collaboration across company boundaries

In addition to transparency and flexibility, a good network of partners along the entire supply chain also helps to minimize risks. In this way, companies can work with their network of partners to find a quick solution for all parties involved in terms of alternative transportation modes or suppliers of critical components.

Even though the strikes have ended for the time being, strikes could still occur again in the coming weeks, especially on the railroads, if the parties do not reach an agreement.

To be prepared for this situation, companies should take proactive measures now to make the supply chain more resilient and thus avoid potential supply bottlenecks or even production stops.

For more information on how to proactively manage risk, download the latest Oxford Economics Research.

Transforming Your Supply Chain: Introducing RISE with SAP Advanced Logistics Package

2024-04-16T13:00:00.038000+02:00

In today's fast-paced business environment, supply chain management has become more critical than ever. Companies need to ensure that their logistics processes are optimized, streamlined, and capable of adapting to constant changes. That's why, on April 16th, SAP launched the RISE with SAP advanced logistics package.

The RISE with SAP advanced logistics package optimizes and streamlines logistics processes, connecting business stakeholders across the logistics process. It includes:

SAP Transportation Management and SAP Extended Warehouse Management, which improve efficiency and transparency while reducing costs.
Automation across logistics processes that enhances productivity and accuracy, and synchronization between transportation and warehousing which optimizes routing and scheduling.
Carrier optimization, analytics, and network integration for data-driven decision-making and real-time visibility.

Implementing this solution improves on-time delivery, reduces costs, enhances order accuracy, decreases shipping time, and increases inventory accuracy.

Additionally, the RISE with SAP advanced logistics package provides an alternative option specifically designed for decentralized logistics scenarios. This option is ideal for businesses that want to run logistics applications alongside their ERP system. It enables the connection of multiple ERP systems to a decentralized logistics solution and allows for the operation of highly-automated, high-volume logistics through a separate instance that is independent from the ERP. This enriched solution aims to enhance logistics processes and activities, providing a decentralized, end-to-end logistics execution platform for businesses.

The RISE with SAP advanced logistics package is a game-changing solution that empowers businesses to deliver on their promises, every time. With streamlined warehouse processing, improved delivery times, and enhanced inventory availability, this package ensures that products are delivered at the right time, without fail.

Additionally, the optimized routing and scheduling of transportation further enhances efficiency and reduces costs. The solution also drives automation of end-to-end business processes, enabling businesses to operate seamlessly. With native integration with SAP S/4HANA Cloud and SAP Business Network for Logistics, this advanced logistics package is a comprehensive solution that empowers businesses to thrive in a rapidly changing world.

To learn more about this offer, click the link below

RISE with SAP

SAP Field Logistics: Centralized Supplier Item Repository for an Optimized Rental Process

2024-04-16T20:18:54.265000+02:00

SAP Field Logistics is a solution built on SAP S/4HANA. It is available on S/4HANA Private Cloud, Public Cloud and On-Premise Editions. This solution enables customers to leverage the best-in-class industry practices to manage their logistics movement between their supply and demand plants. These logistics items include own stock, non-stock, rental, and third-party items (supplies, consumables, equipment, tools etc.). This solution is primarily built for Oil and Gas Upstream industry operations. It can also be used by any other industries such as Oil and Gas Downstream, Mining, Wind Power and Agriculture which have similar logistics processes.

Rental Process Outline

Customers often rent equipment for their operations offshore. The demand for a rental item is always associated with the demand for a service operation. The request for a service operation can arise from a maintenance or project work. However, the detailed information for the rental equipment required to fulfil the service is often not known to the requestor in advance. In the scenario supported by Field Logistics, the exact information about the rentals such as dimensions, serial numbers, safety instructions, and certificates can be captured in the system after the purchase order is created or confirmed by the vendor. The solution flow is depicted in the Figure 01 below.

Rental and third-party items are together referred to as Supplier Items in Field Logistics. The logistical handling of these two types of items is identical.

Figure 01: A flow diagram with swim lane representation to indicate Supplier Item procurement in Field Logistics.

Supplier Item Repository

The rental items are costly and demand an efficient system to track their whereabouts. Their clear representation and visibility in the supply chain enables better planning. Hence, the solution aims at a central and singular representation of a rental item throughout its journey within Field Logistics - the 'Rental Item Repository'. This repository offers multiple facets of data storage to allow complete rental data representation and lifecycle tracking. It provides an out-of-the-box integration with all essential platform services like archiving, authorization and security, full support for data privacy, attachments, change log, CDS-based enterprise search, RAP business events, a migration object, ranges of extensibility, white-listed modern APIs, etc. The user will have access to the best of this bundle using an app called 'Manage Logistics'. The features are depicted in the block Figure 02 below.

Figure 02: A block diagram of Supplier Item Repository and its interaction with other features.

Configurable Milestones

The supplier item repository offers 'Milestone' features to record the main events in the supplier item journey. For instance, the milestone 'Received at Base' records the date and time of the physical receipt of the item at the base location. The milestone 'Ready for Dispatch' marks the completion of the cross-docking activities at the base and its readiness for onward journey to the remote. There is a set of standard milestones delivered out of the box to help customers track the logistics journey and lifecycle of supplier items. These milestones are fully configurable. New milestones can be introduced, and existing milestones can be modified or deactivated. The below Figure 03 outlines the milestone feature and its underlying framework.

Figure 03: A block diagram of Milestone Framework for the Supplier Items

Fully integrated and represented across Apps

The supplier items are integrated across the forward and return processes with Field Logistics and non-Field Logistics applications. The reusable CDS views make integration seamless within the Field Logistics applications. Any actions on the supplier item from other applications will trigger the appropriate milestones. This makes the solution traceable, end-to-end, and fully integrated. The below Figure 04 depicts the length and breadth of its interaction with other applications.

Figure 04: A block diagram showing the interaction of Supplier Items with other applications.

Reference Information for SAP Field Logistics:

SAP Help Documentation:

SAP Field Logistics for any-premise

SAP Field Logistics for the public cloud

SAP Best practice content for S/4HANA Cloud for Supplier Item:

Supplier Item scope - 4AH

SAP Best practice content for S/4HANA Cloud for other Field Logistics scope:

Base Field Logistics Scope - 40G

Non-stock Item scope - 5OM

Container and Voyages – 6BA

Field Logistics Analytics – 6VA

Review Credits: Content reviewed and enriched by Field Logistics product management and UA team

SAP Intelligent Clinical Supply Management goes CTS Europe 2024 – our key insights

2024-04-18T11:41:33.341000+02:00

What can be more enriching than meeting with customers, sponsors, and vendors to learn about current market dynamics, and to understand their challenges and pain points around clinical supply management?

This is why the SAP team took the opportunity to attend CTS Europe in Barcelona, where we delved into discussions on emerging industry trends. In this blog post, we will share the key takeaways from the conference and shed light on the exciting developments shaping the future of clinical supply in general and SAP Intelligent Clinical Supply Management in particular.

Sustainability

One topic that was prominently discussed across all workstreams was sustainability. With clinical trials emitting 100 million tons of carbon per year, this topic deserves closer attention. Also, the conference's organizers attached so much importance to sustainability that they dedicated the opening keynote to it, which would have been unimaginable some years ago. In his keynote, Novartis’ Development Environmental Sustainability Lead revealed various steps in the study life cycle where a reduction of carbon emissions can be achieved and how sustainability also needs to be balanced with supply urgency. Highlighted factors included application of decentralized trial elements, reduction of on-site monitoring visits, re-usable shipping boxes and avoidance of frontloading of the sites.

Another fundamental factor, however, is to reduce inventory overage and wastage in clinical supply chains which can be achieved by an improved clinical planning considering actual enrollment and dispensing figures for clinical supplies replenishment. Here, advanced clinical trial supply management software can help to simulate multiple planning scenarios and to forecast the actual demand more accurately at the sites. And of course, this allows for the combination of sustainability goals with financial savings as a significant outcome.

Another session highlighted the impact of intelligently organizing supply pooling. In combination with JIT labeling to apply the latest available shelf-life, this approach can help to reduce overage by up to 40% (e.g., by reducing the amount of drug product needed, by reducing the number of shipments, ...).

A smart combination of the different approaches described in the various sessions might allow to save millions of tons of CO2, while still being able to conduct cutting edge clinical research to help patients overcome disease and achieve a better quality of life.

Collaboration

Given the increasingly complex technology landscape and cost pressure being present from all sides, the need for collaboration and flexibility across the clinical supply chain was emphasized multiple times. With clinical supply management being a puzzle of different software solutions and tools, it becomes clear that breaking down data silos by integrating all different parts of the puzzle is crucial. And the trend of outsourcing several parts of the clinical supply chain to Contract Development and Manufacturing Organisations (CDMOs), such as manufacturing, packaging, labeling and distribution, adds even more to the need for a smooth collaboration and greater visibility between all parties.

This also became obvious in many discussions at our booth with both vendors and sponsors where we recognized a huge need for standardized processes and interfaces to break down data silos and to enable a seamless integration of the different software systems that are used in the clinical supply ecosystem. One take home message for us, therefore, was to continue and to even strengthen our current strategy of building strong partnerships within the ecosystem to drive the adoption of harmonized processes and data/messaging standards.

Panel discussion with DHL, Roche, and Novartis on Clinical Supply Chain Orchestration

A definite highlight of the conference was our participation in a panel discussion, with our consortium members DHL, Roche, and Novartis, on how to enable clinical supply chain orchestration globally. Everybody in this round agreed that a true spirit of collaboration between sponsors and vendors is key and that we need to move from custom one-to-one connections to a business network projecting the complex clinical supply ecosystem. Successful network orchestration will allow more flexibility for integrations and eventually add value across global supply chains.

Artificial Intelligence

What would a conference be without addressing the topic of artificial intelligence in these times? Of course, integration of artificial intelligence (AI) and machine learning (ML) in clinical trial supply management was also a prevailing topic at CTS Europe which was addressed in several sessions. And it was great to see how well this topic connects to the other mentioned trends in clinical supply – collaboration and sustainability. Only an orchestrated collaboration and better integration will lead to better data quality and smooth data flows, which can serve as a good foundation for AI use cases. And to come full circle, attendees were encouraged to leverage AI to make informed decisions in their demand planning and forecasting to predict inventory overage and expected wastage which will lead to a more sustainable clinical supply chain.

The clinical supply chain for sure has a long way to go to become fully digital, agile, and resilient, however, we are optimistic that we are on the right path led by a common purpose to make patient lives better!

Meet us in person

In case you missed us at CTS Europe, the next chance to meet us is already waiting: From April 21st to April 24th 2024, the SAP Intelligent Clinical Supply Management team is awaiting you at GCSG US. Besides from meeting us at our booth you can already look forward to our Vendor Showcase on Clinical Process Transformation with Cloud & Artificial Intelligence (Day 4, 1 pm). Let’s connect and shape the future together!

Release Navigator for SAP Supply Chain Management solutions - What's New in 2405

2024-04-19T14:28:38.667000+02:00

Spring is in the air (for the northern hemisphere or Autumn for those in the southern), and that means it is time for the 2405 set of releases for SAP Supply Chain Management solutions. With multiple SAP solutions launching new innovations, the release navigator for SAP Supply Chain Management solutions will be automatically updated on May 10, 2024. In this update, release content for each product will be refreshed with the latest versions and information, easing the content search for customers & partners. Continue reading to learn what new content is coming, discover the revised innovation & content update plan, and how to connect.

Here are the highlights of new & updated content within the release navigator for SAP Supply Chain Management solutions:

As mentioned, the release navigator for SAP Supply Chain Management solutions will only be updating release content for 2405 releases. Here you can find the innovation & content update plan for 2024.

Disclaimer: These are only informational dates that could change. The most recent dates will be found inside the release navigator within the Release Calendar tile.

If you have feedback or specific requests of what content you would like to see featured in the release navigator, please do not hesitate to let us know! Use our feedback survey or reply to this blog post in the Comments section below.

You can learn more about how the Readiness@Scale is a cross-solution team responsible for release readiness topics in the SAP Enterprise Support portfolio at our Release Ready page. Find all our teams blogs with the tag Readiness@Scale.

AI-powered supply chain solutions: Better decisions, better outcomes

2024-04-21T13:53:24.634000+02:00

Recent events such as the Suez Canal crisis, the drought in Panama and the German strike wave have once again highlighted the crucial role of a resilient supply chain. It ensures that essential goods and services can still reach consumers, preventing shortages and economic instability. They also enhance a company's ability to adapt to changing market conditions and stay competitive.

In this context, innovative technologies such as the Internet of Things (IoT), machine learning and artificial intelligence (AI) are becoming increasingly important. By using the latest analytics technologies along the supply chain, companies can make more flexible, faster and more efficient decisions. These technologies have the potential not only to reduce costs, but also to increase customer satisfaction and improve competitiveness.

For example, by using AI in the supply chain, companies can access a variety of data sources, such as real-time sensor data, historical transaction data, external market data and more. This data is then analyzed by AI algorithms to identify patterns, trends and correlations. This enables companies to make informed decisions based on comprehensive insights and predictions.

SAP PLM and AI: Transforming Product Lifecycle Management

Product Lifecycle Management (PLM) has evolved significantly since its inception. Initially centered around engineering or formulation, PLM has grown to encompass a holistic approach, managing every aspect of a product's lifecycle from its idea to its retirement, recycling or remanufacturing. This evolution reflects the changing landscape of product-centric organizations, where the lifecycle of a product is increasingly complex and interconnected.

Today, PLM is an essential pillar in digital transformation strategies across industries and AI in PLM serves as a catalyst for the next generation of product data management practices. For example, with the increasing complexity of customer requirements, companies are faced with the challenge of securing their growth and remaining competitive in the long term through market-oriented decisions.

AI plays a decisive role in revolutionizing the ideation and market research process in product development. Through the targeted use of AI, companies can analyze extensive market data, consumer preferences and trends to effectively optimize their product investment decisions.

With SAP's AI co-pilot, Joule, product developers now use a powerful capability for significantly accelerating the ideation phase, ensuring not only speed but also a higher quality of ideas. By leveraging natural language queries, Joule allows for quick capture and enhancement of product improvement ideas, facilitating a more dynamic and efficient brainstorming process.

Additionally, Joule (AI-Copilot) will support subject matter experts to reduce the time and effort required for accurate data association between CAD data and business data for unparalleled visual analytics with the objective to create visual assets that can be used throughout the supply chain.

In line with the commitment to AI-based innovations, SAP PLM is planning to adopt AI across the entire end-to-end product development process in core areas such as Specification Management, Recipe Formulation, and Enterprise Product Structure Management. By integrating AI in PLM, SAP aims to improve the productivity of engineers and recipe formulators.

AI in digital manufacturing

Industry 4.0 has revolutionized the way products are manufactured. By using IoT sensors, data analysis and automation, companies can optimize their manufacturing processes and make them more flexible. AI plays a key role here by recognizing complex patterns in large data sets and making predictions about production failures, quality issues and bottlenecks.

With SAP Digital Manufacturing, production managers can now utilize large amounts of machine data and integrate AI-powered computer vision into their production processes. This cutting-edge system enables a remarkable increase in quality through automation and boosts efficiency and productivity. At Hannover Messe (HMI), SMA Solar will talk about modernizing their manufacturing execution systems, and how they use the power of AI-enabled visual inspection in SAP Digital Manufacturing to support sustainable, risk-resilient operations.

Asset Performance Management: The future of maintenance

In a world where asset failures can have a major impact on a company's productivity and profitability, preventative asset performance management (APM) is crucial. AI-driven insights are revolutionizing maintenance by making accurate predictions about the condition of assets and optimizing maintenance activities.

And one of the key components of the SAP Asset Performance Management solution is IoT technology. It enables the seamless connection and efficient management of devices and sensor data required for remote asset monitoring, AI and analytics. And with the increasing adoption of 5G technologies, customers worldwide are now increasingly relying on the use of sensor data and smart devices to optimize their maintenance strategies and act on a condition-based and predictive basis.

To help our customers to accelerate this shift, SAP will embed Cumulocity IoT, a market-leading Industrial IoT platform, into SAP Asset Performance Management. With Cumulocity IoT, SAP Asset Performance Management aims to help our customers simplify their connectivity scenarios with any IoT data sources, including smart equipment and data lakes/historians. Moreover, the embedded advanced IoT capabilities can help seamlessly manage IoT devices and stream sensor data in near-real-time to continuously monitor asset health.

With SAP Asset Performance Management, asset operators can now use AI to detect anomalies in equipment behavior from the streaming sensor that can lead to potential failures. This AI-based predictive maintenance capability can be applied to different asset classes and asset types, as it learns based on the asset data of the particular company that uses it, such as for

filling valves in a beverage production line at a consumer goods manufacturer/retailer
Air filters on transportation vehicles in a mining operation
Electric motor in a rotating system at an oil and gas company

AI-driven insights are revolutionizing maintenance by making accurate predictions about the condition of assets and optimizing maintenance activities. And with the help of SAP Asset Performance Management, not only can downtime be reduced, but the service life of assets can also be maximized, and total cost of ownership reduced.

Improve field service response

Today, companies need to optimize their field service management (FSM) processes to remain competitive and increase customer satisfaction. The prediction and optimization of working and travel times at and to the deployment site are a major challenge for companies and their service technicians.

The integration of AI and machine learning into field service management is therefore becoming increasingly important to improve existing processes and open up new opportunities for increasing efficiency and service innovations.

SAP Field Service Management uses predictive routing to access historical and real-time traffic data, as well as service technician location and workload information, to schedule the most efficient route and the most appropriate field service technician. This enables companies to meet their Service Level Agreements (SLAs) more effectively, improve customer satisfaction and reduce operating costs.

Furthermore, SAP Field Service Management uses AI and machine learning to help predict the expected actual job duration to reduce inaccurate scheduling of field service activities, leading to delays, underutilization and negative customer experiences.

This allows planners to create more realistic schedules and minimize overbooking and underutilization of resources, ultimately leading to higher customer satisfaction and productivity.

In summary, the use of AI and market-driven decision making is essential for product innovation, manufacturing, asset performance management and field service management companies seeking growth and sustainability.

Adverse Media Monitoring: How to improve overall Supply Chain Management

2024-04-22T11:04:35.952000+02:00

In today’s dynamic business environment, supply chain management has become increasingly complex, marked by global connectivity and potential disruptions. Open Source Intelligence (OSINT) offers a powerful solution for organizations seeking to navigate these challenges. Semantic Visions, a pioneer in harnessing the power of AI and ML in OSINT, is at the forefront of helping organizations build resilient supply chains through advanced technology, data enrichment, and analytics.

Information collected through Open Source Intelligence (OSINT) is gathered from publicly available sources and channels, leveraging publicly available data to gather insights, identify trends, and support decision-making processes across different domains and industries.

Smart OSINT monitoring and the delivery of client-specific enriched data offerings support our clients’ requirements for identifying, assessing, and mitigating a wide range of risks across their operations. By leveraging publicly available information and intelligence, businesses enhance their risk management capabilities and protect their assets, reputation, and stakeholders.

OSINT is a critical element in tracking organizational reputation; the process, more commonly known as adverse media monitoring, plays a major role in allowing companies to avert reputational damage and mitigate risks across their supply chains.

Information collected through OSINT leverages publicly available data to gather insights, identify trends, and support decision-making processes

Websites, online portals, social media, public records, and databases contain valuable information about individuals, organizations, and legal proceedings. Valuable insights and data on various topics can be collected from research reports, white papers, academic publications, or industry studies. Other sources are news aggregators and RSS feeds; automated tools and scripts are used for web scraping and data mining to extract structured data from web pages.

In addition to these, there is a growing demand for satellite technology, geospatial imagery, and satellite data, providing further visual insights into physical locations, shopping routes, infrastructure, and environmental changes. By analyzing satellite imagery, businesses may monitor supply chain activities, track changes in land use, and follow up on infrastructure developments.

All these sources provide a wealth of information, ranging from current events to consumer sentiments. By monitoring hashtags, keywords, mentions, and user interactions, businesses can gain insights into trends, sentiments, and emerging issues. Subscribing to relevant feeds allows businesses to stay informed about industry news, market trends, and geopolitical developments.

Semantic Visions has been leveraging OSINT data since its inception and focusing on global news outlets and other sources of publicly available data. This article covers our Supply Chain Risk Management offering supported by advanced technologies and expertise that have supported our clients in navigating the challenges of global supply chain risk management.

Modern piracy and Maritime disruptions

In today’s interconnected global trading, over 80% of the goods are carried by sea, with the percentage even higher for most developing countries. World maritime trade bounced back in 2021, when shipments grew by 3.2% to reach 11 billion tons, an improvement of 7 percentage points compared with the 3.8% decline in 2020. The global Ocean Freight market size was valued at USD 74901.67 million in 2022, forecast to reach USD 89906.44 million by 2028.

In recent years, some of the major maritime routes have come under repeated strains, due to maritime accidents or geopolitical insecurities, causing delays, provoking insecurities and supply chain disruptions.

The graph below illustrates the rise in supply chain disruptions due to Modern piracy, as seen through global media, between 2019 and 2024:

Note the peaks:

JUL 2019, Ships kidnapped off Nigeria, hijacked in the Singapore Strait
JAN 2021, Turkish crew kidnapped off Nigeria
NOV 23-March 24, Attacks on ships in the Arabian sea

Monitoring global maritime supply chain operations is executed by the highly automated Semantic Visions monitoring system. It delivers an early detection of relevant local events, long before they reach international news, in a structured and updated format, helping the client to gain an invaluable early warning as well as crucial insights into the details of logistics and delivery.

Keeping supply planning under control helps to avert the shortage of booking capacity, delivery delays, rising cost of transport, fuel cost, transportation and storage costs.

Our system alerts organizations to geopolitical events all around the globe, such as trade tensions or civil unrest, that may impact their suppliers or transportation routes. Businesses, equipped with this information, can take proactive measures to diversify their supplier base, adjust inventory levels, or reroute shipments to minimize the impact on their operations.

European Energy crisis and LNG import terminals

March 2022 was marked by the nervous anticipation of dire energy shortages and industrial production disruptions as a result of breakdown of long-established energy supplies to European markets.

This chart shows the surge in media coverage of LNG imports into the EU:

Back in 2022, In the midst of the European energy crisis resulting from the disrupted energy supply chains due to sanctions on Russia oil and gas imports, Semantic Visions was commissioned to monitor and analyze the preparation and construction of LNG import terminals.

EU countries were frantically searching for ways to secure energy supplies and one of the alternative supplies was the importation of liquified gas (LNG). To accommodate supplies by LNG tankers, due to the lack of the adequate infrastructure, the so-called FSRUs (floating storage and regasification units) had to be employed. These units are similar to a land-based terminal and have the onboard capability to vaporize LNG and deliver natural gas through specially designed offshore and near-shore receiving facilities.

Scope of our monitoring was the Baltic sea locations suitable for anchoring the incoming LNG carriers, setting up platforms and FSRU units.

Using OSINT monitoring and analysis, we were able to provide a clear picture of the situation: the deals and contracts closed, government and local authority’s regulations, supplier changes and expansion. We followed the position of the incoming LNG carriers, zoomed in on the progress of the construction work, mapped the shifting legal framework stipulated by the authorities, as well as growing protests of the local communities, emerging environmental issues, and the changing public opinion on these terminals. To provide our client with a complete picture, our data was complemented by up-to-date geospatial imagery of the sites, supplied by our partner, a leader in the industry.

Our initial findings and insights, sourced from publicly available feeds, were presented in an intelligence analysis of the situation, stating the current state of affairs and outlining possible outcomes. These were later confirmed by the subsequent development, in all their aspects: business, legal, and environmental.

By continuously monitoring online sources for relevant information, organizations can identify emerging risks and opportunities and respond promptly to potential disruptions.

Lithium mining projects monitoring

Acknowledging the importance of the climate pledge, most global economies have embraced the green agenda and started to introduce numerous policies to face the environmental challenges. Among them is a technological shift in finding more sustainable alternatives to fossil fuels . As part of this push for zero-carbon solutions and EV mobility, the quest to secure mineral supplies has become a primary focus of many governments’ and private business initiatives.

It is estimated that the global market for lithium mining is expected to grow from $5.7 bn in 2023 to reach $9.1 bn by the end of 2028. The mineral, called “white gold”, makes up from 11 to 17 percent of a Li battery and for example, the Tesla Model S Long Range battery contains approximately 63 kilograms of the mineral.

Media coverage of Global Lithium mining, 2019-2024:

Media coverage of Global Lithium mining, 2019-2024

In order to monitor the growing lithium mining projects in Europe, Semantic Visions has set up an automated comprehensive process that maps the entirety of Lithium mining projects, covering all the stages of the enterprise: from prospecting, contracting, license approvals, environmental assessments, project development, construction work and the actual extraction.

Our AI automated tool provides daily monitoring and alert signaling of all the current operations. Our automated monitoring relies on publicly available sources, collecting information in 12 languages, spanning all events in relation to Lithium mining operations.

From Ukraine to Ireland, from Sweden to Portugal, our technology harvests all operational, regulatory, and commercial details. These are further filtered and verified, and finally delivered to our client who benefits from reliable and updated actionable data.

Semantic Visions’ OSINT platform can alert organizations to geopolitical events, such as trade tensions or civil unrest, that may impact their suppliers or transportation routes.

One of the key benefits of OSINT is its ability to provide real-time visibility into the supply chain ecosystem. By continuously monitoring online sources for relevant information, organizations can identify emerging risks and opportunities and respond promptly to mitigate potential disruptions. For example, Semantic Visions’ OSINT platform can alert organizations to geopolitical events, such as trade tensions or civil unrest, that may impact their suppliers or transportation routes. Equipped with this information, organizations can take proactive measures to diversify their supplier base, adjust inventory levels, or reroute shipments to minimize the impact on their operations.

Furthermore, OSINT enables organizations to gain deeper insights into the practices and reputation of their suppliers and business partners. Semantic Visions’ advanced analytics capabilities allow organizations to analyze publicly available data to assess the financial health, regulatory compliance, and ethical standards of their suppliers. By identifying potential risks early on, organizations can make more informed decisions about their supply chain relationships and take steps to mitigate any vulnerabilities.

In addition to risk mitigation, OSINT can also drive strategic decision-making and competitive advantage in the supply chain. By analyzing market trends, consumer sentiment, and competitor activities, organizations can identify new opportunities for growth and innovation. Semantic Visions’ OSINT platform provides organizations with actionable insights that enable them to anticipate market shifts, optimize product offerings, and stay ahead of the competition.

By leveraging the power of OSINT, organizations can gain real-time visibility, mitigate risks, and drive strategic decision-making in their supply chain operations.

Semantic Visions, with its cutting-edge, continuously evolving technology and expertise in data analytics, is committed to empowering organizations to harness the full potential of OSINT and build resilient supply chains for the future.

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This is another part of a series of articles about the critical role of adverse media monitoring in risk management solutions – overview >>

Advance Return Management complete configuration(SAP ARM)

2024-04-24T10:22:25.530000+02:00

This document covers the complete configuration of ARM, screen information, and test cases for better understanding.

Index:

1. Normal Return vs. Advance Return (ARM).

2. Explanation of the return tab.

3. Explanation of each follow-up code.

4. Explanation of the Warehouse Inspection (MSR_INSPWH) screen.

5. Mandatory configuration once ARM is activated.

6. Details of the standard configuration of ARM.

7. Test cases.

8. Important tables.

1. Normal Return vs Advance Return (ARM).

Normal Return: With traditional returns, an order is created, return delivery is processed, and a refund is issued to the customer. However, the fate of the returned stock (whether it is scrapped, moved to another plant, sent for internal or external repair, or returned to the original vendor) is unclear.

Advance Return Management: Advanced Return Management introduces an additional tab, 'Return,' which has the capability to handle all kinds of possible business scenarios.

This highlighted gap can be easily addressed and monitored with Advance Return Management.

From the order itself, you can decide whether it should be a replacement or a refund. If the user is certain about the decision, they can select the follow-up code to generate the document directly from the order (referred to as a Counter Return).

If the user is unsure, they can first receive the goods in the warehouse and then make a decision about what should be done with the stock."

2. Explanation of the Return Tab:

ARM introduces a new sales document type, RE2, which includes an additional tab for returns. (You can activate this tab for other document types by creating a new document type copy of RE2; detailed configuration will be covered later.)

All the aforementioned activities are made possible through this Return tab and Warehouse Inspection (which will be explained in detail in a separate section)."

1.Return Reason:

This is the customer's justification for the return or replacement of a product. SAP does not provide any predefined list; we can configure it as per our requirements. Additionally, it does not have any impact on document processing; it is merely a drop-down text for informational purposes. Configuration details are covered in a separate section."

2.Follow Up activity: -

This is one of the important fields in the Return tab, which will determine your document flow.
We use SAP standard FU codes and do not create our own FU codes."

3.Next Follow Up Activity: -

This is similar to the Follow-Up code. If we are certain about the next activity, we can select it here.

4.Refund Type: -

Refund type determines how you are going to compensate the customer, whether by providing a refund or by replacing the returned product. Both options are not possible per line; you can have a multi-line sales order with different types of FU codes, refund codes, and refund types.
Only two options are available.

5.Refund Control:

Refund Control determines how the compensation decided in the Refund Type is processed. Here, you decide how the compensation document should be created, whether automatically or manually. You also determine at what level the system generates the refund or replacement document, such as from the order or warehouse inspection, after a vendor refund, etc. The behavior of Refund Control is not absolute; it depends on the Follow-Up activity and Refund Type. The system allows sensible options only

6.Customer Inspection Code: -

While returning, customers may inspect the product condition on their site before shipping it back to the seller. This information can be captured in a free-form drop-down text or list. It can be configured according to business requirements.
It does not create an inspection document. It has no impact on document processing and is solely for capturing information
7. Customer Comments:

These are free text comments from customers that we can capture. They have no impact on document processing and are captured for informational purposes only.

8.Inspection code:

When goods reach the plant from the customer location, users will inspect the product. Depending on the condition of the product, they select an inspection code. This code reflects the actual product condition entered by the user during goods receipt into the plant. The list can be configured as per business requirements. It creates an inspection document. If we are not aware of the actual goods condition when creating the order, it can be skipped. Once the goods are received into the plant, you can capture the receipt condition/inspection code during warehouse inspection (MSR_INSPWH)

9.Comments:

Free text / User can enter Additional comments while receiving goods into plant.
10.Next Plants:

In a real-time scenario, after goods are received from the customer location, an initial screening occurs. Then, depending on the product condition for repair, repackaging, or resale purposes, it moves to another location. Users need to enter the plant where the stock should move. This field requires a value when you select the FU code 'ship to other plant,' which can be inter or intra. If we are not aware of the next plant, it can be skipped. Once the goods are received into the plant, you can capture the next plant during warehouse inspection (MSR_INSPWH).
11 Supplier:

Here, the user needs to enter the vendor number when selecting the Follow-Up code as 'ship to vendor.' If the product being returned by the customer was purchased from a third-party vendor/manufacturer and the business wants to return it to the vendor to receive a refund against the same, this information is necessary.

12.Vendor RMA: -

Return Material Authorization Number of Vendor

13.Replancement Material: -

If a customer requests a replacement of material instead of a refund for the returned item, indicating that they wish to exchange the original product for a replacement. The business may decide to compensate the customer with a different version of the same product for various reasons. With the help of a suitable combination of Follow-Up code and Refund type, users can perform this activity..

14.Replacement Quantity:

Its Straightforward how much Qty business want to return.
15 Supplying Plants:

Source plant of Replacement Material.
16 Approval:

Authorization Object can we Created for custom requirements.

17.Refund code:

It is Free /drop down view.

18 CMR Rej Reason:

Its Rejection reason drop down list user Can selected & Reject after Releasing Credit memo Request.

3.Explaintion Each Follow up code.

The decision regarding returning goods can be made at the order level (counter return), where you know the physical status of the goods. If not, then the business should first receive the goods physically into the plant, conduct quality inspection, and then decide on the refund type and refund control.

As per my understanding, at a high level, we can divide ARM into two categories: decisions made from the order versus decisions made from warehouse inspection (MSR_INSPWH).

Follow-up activities can be executed from the order, warehouse inspection (MSR_INSPWH), or both

Follow-Up Activity	Activity Description	Activity Can be perform	Brief Description
01	Receive into Plant	Order Level	1. The significance of this code is that stock will be received into the plant from the customer location. 2. Quality inspection of return stock will be separately performed during Warehouse Inspection (MSR_INSPWH). 3. The document flow is decided based on the refund type and refund control.
02	Immediately Move to Free Available Stock	Order Level	1. The significance of this code is that stock will immediately move to free available stock from the customer location. 2. The system will generate an Inbound delivery (LR2), and auto PGR (Post Goods Receipt) will be performed against these line items. 3. No separate quality inspection is required from Warehouse Inspection (MSR_INSPWH). 4. The system will prompt for quality inspection at the order itself. 5. Document flow is decided based on the refund type and refund control.
03	Immediately Move to Scrap	Order Level	1. The significance of this code is that the stock will immediately move to scrap stock from the customer location. 2. The system will generate two material documents: a. The first inbound delivery (LR2) will be created, and auto PGR (Post Goods Receipt) will be performed against the delivery. Stock will move to block status. b. The second material document will be created to move stock from block to scrap. c. We need to implement this note to avoid errors. 3. No separate quality inspection is required from Warehouse Inspection (MSR_INSPWH). 4. The system will prompt for quality inspection at the order itself. 5. Document flow is decided based on the refund type and refund control.
04	Ship to Other Plant	Order Level & Warehouse Inspection (MSR_INSPWH)	1. In this case, the product is received into the plant and then shipped to another plant for purposes such as resale, repackaging, or repair. 2. This process constitutes a return Stock Transport Order (STO) in ARM. 3. Both inter and intra STOs are possible depending on the company code of the ship-to plant and receiving plant.
05	Ship to Vendor	Order Level & Warehouse Inspection (MSR_INSPWH)	1. It is the reverse of an Initial Purchase Order (IPO); goods are returned from the customer location to the plant and later moved back to the vendor. 2. The business has control over refunds, based on vendor refunds to the business. 3. The business can decide on refunds to the customer.
06	Ship to Vendor via Other Plant	Order Level & Warehouse Inspection (MSR_INSPWH)	Need to Explore
07	Direct Shipment to Vendor	Order Level	1. It is the opposite of a 3rd Party Process. 2. For instance, if a company engaged in trading sends some goods to a customer via a vendor. 3. Now, due to a complaint from the customer, they want to return the goods. 4. Now, it is up to the business whether they receive the goods and later decide what needs to be done. Or they can directly shift the goods to the original vendor using code '06'.
08	Inspection at Customer Site	Order Level	1. If the business deals with heavy-weight products, returning them may not be practically feasible. 2. In such cases, a quality inspector from the business end can travel to the customer location. 3. They can then capture the inspection results on-site.
09	Delivery into Plant - Materials Still Unknown	Order Level	Customer requests a return, but the material is unknown or interim order.
11	Transfer to Free Available Stock	Warehouse Inspection (MSR_INSPWH)	When we receive stock in VL02N, the stock is moved to block status. Now, in the warehouse inspection, we have the option to unblock it.
12	Transfer to Scrap	Warehouse Inspection (MSR_INSPWH)	If the received stock is not up to the mark, we can move it to scrap.
13	Material Remains at Customer Site	Order Level	Without receiving the stock, a refund or replacement can be given to the customer. The system does not create a delivery, and there is no warehouse inspection.
14	Immediately Move to Specified Stock	Order Level	Received stock can be directly moved to the target storage location from the order level.
15	Transfer to Specified Stock	Warehouse Inspection (MSR_INSPWH)	Received stock can be directly moved to the target storage location from the inspection level.
16	In-House Repair	Order Level & Warehouse Inspection (MSR_INSPWH)	Stock can be moved to the internal repair center, and the system will create a repair order and outbound delivery for this purpose.
17	External Repair	Order Level & Warehouse Inspection (MSR_INSPWH)	Stock can be moved to an external repair center, and the system will create a repair order and outbound delivery for this purpose.
18	Transfer to Scrap for Customer	Warehouse Inspection (MSR_INSPWH)	The stock is removed from inventory.
21	Send Back to Customer	Order Level & Warehouse Inspection (MSR_INSPWH)	When returning stock to the customer for any reason, the system generates an outbound delivery.
22	Send Back to Last Plant	Warehouse Inspection (MSR_INSPWH)	This option is available in the case of Stock Transport Orders (STO), both intra and inter. When stock moves from one plant to another, SAP provides the option to perform quantity inspection at the receiving plant. There, you have the option to move the stock back to the last plant, albeit it's a very rare occurrence (Haaa haa).
31	No Further Activities	Warehouse Inspection (MSR_INSPWH)	When you are not interested in making any decision or closing logistic activity, you can leave the document open. Later, you can edit the document when you are ready to make a decision.

4.Explain Warehouse Inspection (MSR_INSPWH) Screen

The Warehouse Inspection (MSR_INSPWH) screen is used when you have selected the Follow-up code '001,' which signifies that the goods have been received into the plant.

When a return sales order is created (RE2), an automatic delivery is generated, and goods receipt (PGR) against the received stock is performed. At this point, the stock is moved to a block status.

The next step involves conducting a quality inspection of the stock and making a final decision on whether to accept or reject the received stock.

To access the Warehouse Inspection screen, you can enter the transaction code MSR_INSPWH.

When you access the Warehouse Inspection (MSR_INSPWH) screen, you will encounter a selection screen where you can choose options based on your requirements by selecting the appropriate radio button.

The inspection document typically consists of two main sections: the header section and the item section. These sections provide information about the inspection document as a whole (header) and details about each individual item being inspected (item).

.Header: -

Header: -
Basic Data: This section displays information that flows from the sales order to your inspection document. You do not have the option to edit this data.
Inspection Result: In this section, the user captures the inspection results and updates other relevant details.
Logistical Follow Up: In this section, decisions are made regarding the next actions for the received stock from the customer based on the inspection results.

Note :

Note:
If you enter the above information at the header level, it will automatically flow to the item level. However, if you have different observations of inspection for each item, or if you want to carry out different results for each item, or if you want to further split the received line and make decisions for each unit, you must perform inspection at the item level.

Item: -

Similar to the header, the item section allows you to capture results specific to each item. Here, you can specify the outcome for each individual item. Additionally, you have the option to perform a partial refund for some quantity and provide a replacement for the remaining quantity.

For example, if you received 10 units from the customer, you can choose to refund 5 units and provide a replacement for the remaining 5 units.

Must Configuration once of ARM is activated: -

Note:

Once ARM is activated, standard configurations and document types are already in place, requiring no further action.

If the business requires a custom document type, they can copy the standard document type and create a new parallel leg.

However, once ARM is activated, a few essential configurations still need to be completed.

1.MSR_ID object number range need to maintain.

1.When initiating an advanced returns process, the system assigns a unique number to identify the process. This number is derived from the number range defined for advanced returns process IDs.

2.The advanced returns process begins with the creation of a returns order, returns purchase order, or returns stock transport order.

3.All advance return orders are assigned an MSR_ID, which can be used for tracking purposes in all ARM-relevant tables.

4.The relationship between MSR_ID and advance return orders can be found in the VBAK table.

Logistics – General -> Advanced Returns Management -> Material Inspection->Basic Setting For Martial Inspection->Basic Setting For Martial Inspection->Specify catalog and code groups for material Inspection.

Advanced Returns Management General Settings Define Number Ranges for Advanced Returns Process IDS

Inspection code need to maintain.

Define and Configure Catalog for Inspection Codes.
Specify Catalog and Code Group for Material Inspection Specify Catalog and Code Group for Inspection by Customer.

Quality Management (QM)

Catalogs -Collection of codes with related contents. Catalogs are used to encode qualitative contents described in text

Inspection by you-Is Receipt conditions, once the Goods Receive into plant (MSR_INSPWH -tcode).

Inspection by customer-If customer already done quality inspection from there end & share Input we can capture while Sales order Creation Itself the can reflected in MSR_INSPWH in separate Fields

We can have different Code group for customer Inspection & Material Inspection

You define inspection codes for a code group in the catalog

In this Customizing activity, we define and configure the catalogs that are used for inspection codes
(Inspection by you and inspection by customer)

Logistics – General, choose Advanced Returns Management Material Inspection Basic Setting For Martial Inspection Basic Setting For Martial Inspection Specify catalog and code groups for material Inspection.

Define Catalog- R

Edit Catalog- Choose Edit Catalog to enter a code group (YWHINSP) for the catalog defined for your inspections and assign the inspection codes to that code group

Code Group for material Inspection -eg YWHINSP.

Code &Description can be anything as per business

Example: -

Code	Description
01	01-Box Closed
02	02-Product Good
03	03-Product Sealed
04	04-Outer Box Open

Choose Edit Catalog to enter a code group for the catalog defined for the inspection by the customer and assign the inspection codes to that code group.

Specify that the catalogs and code groups that you define here are relevant for material inspection in Advanced Returns Management.

Enter the catalog and the code group for the inspection codes,

Logistics – General ->Advanced Returns Management-> Material Inspection ->Basic Setting For Martial Inspection-> Specify catalog and code groups for material Inspection.

Specify Catalog and Code Group for Material Inspection by Customer
specify which catalog and code group are used for the inspection codes of an inspection that is performed by the customer in Advanced Returns Management.

Enter the catalog and the code group for the inspection codes of an inspection performed by the customer.Logistics -> General-> Advanced Returns Management ->Material Inspection-> Basic Setting For Martial Inspection ->Specify catalog and code groups for Inspection by Customer.

Inspection document Number range. –

We define the specific number interval 02 of the number ranges for inspection outcomes that is relevant for ARM.

After an inspection outcome, the system assigns a unique number that identifies the inspection outcome for Each line or split line.
This number is taken from the number range Assigned in this node.
Only an internal number assignment is supported for the inspection outcome; that is, the ERP system automatically assigns a consecutive number from the defined number range.
If we need to transfer data from inspection documents to SAP CRM (for billing returns stock transport orders), document numbers must have a maximum of 10 digits.

SAP has not assigned any Number range by default. We need to maintain as per Business Requirement.

	From no	To Number	Comments
Option 1	000000000001	009999999999	10 digits-ref Point no 'd'
Option 2	000000000001	999999999999	12 digits

Logistics – General->Advanced Returns Management ->Material Inspection ->Basic Setting For Martial Inspection->Define Catalog Usage for Inspection Codes.

Maintain Return Reason

We define Return Reason for customer Return, it basically text Id along with text used for Return Order Creation.In Customizing for Logistics – General, choose Advanced Returns Management Customer Returns Define Return Reasons for Customer Returns.

6.Details Standard Configuration of ARM: -

Consolidated Node ARM Related Configuration.

SPRO->Logistic General->Advance Return Management

SAP also offers Customer Return & Supplier Returns Node Separately at Sales & Distribution,

Material Management configuration

Sales & Distribution

Material Management:

SPRO->Material Management ->Purchasing ->Purchase Order->Return Order->Advance Return Management

Now Let’s discuss each Configuration in detail from SPRO->Logistic General->Advance Return Management View.

1. General Settings: -

1.In this Configuration you activated/Deactivate FU code & also you have option to Rename it as per business Requirement.

2.Maintain Number Range for MSR ID, this is very Important Number Range to be maintain.

Whenever we Create Advance Return order each Order get associate with MSR_ID (Process ID No.) you can find in VBAK-MSR_ID.

The Number range which we maintain it assign to each order. SAP Offer New tables for advance return management (which I will cover in details) . In each transaction data MSR_ID is key fields.

3.When we Create Advance Return Order based on Follow up code, follow document get generated eg Return delivery, Purchase orders, CMR, etc

Here basically you associate what document type the system should consider when user selected Follow up code.If you are not using standard document type RE2 , then definitely you need to maintain entry here

Note: Similar to RE2 SAP offer new document type

NB2: for Return Purchase Order

UB2: Normal STO

NB2C: Cross Company STO

SD2: Subsequent Delivery Free of Charge

GA2: Created Memo Request

IG2: Cross Company Invoice (if Receiving plant & sales organization company code are different)

RA2: Internal Repair Order

RX2: External Repair Order

4.Its Very Basic Matrix which SAP offer you have relation of Customer Return Reason to Vendor return reason.

The system uses the specified supplier return reasons for the returns purchase orders or returns stock transport orders that the system creates automatically as logistical follow-up documents for customer returns orders.

5.while Creating a return order, if you Selected Follow up code 02 or 14 what should be Movement type you can assign here.

02	Immediately Move to Free Available Stock
14	Immediately Move to Specified Stock

This assignment is again your Schedule line category. Based on Schedule line category. Which you determine in you advance return order you can assign here.

Note: ARM offer AR as new Schedule & Item category is REN2

7. The Use case is when you move stock to free available stock from warehouse Inspection or When you are receiving stock into plant STO process. We can define stock type against plant.

Stock type list: -

Note: Storage location determination should maintain in both cases. Else you will error as this is happening in background.

9.Like above (point Number 3) you specify Repair Order against Return Order RE2.

If you are Using Z order type & business into Repair activity, you must assign document type here.

Create Goods Movement: If you tick system Create martial document from Block to Repair order.

Without Tick

Create Repair Item: If you tick system Created Repair Item into Repair order.

10.In External Repair Vendor is Involved, you need to assign Purchase Order type here.

Other Config are on same line.

2.Customer Returns: -

1.In this configuration you activated you Order type in Advance Return Oder.

All the Sales Order type for which Sales document Category is H, you see list here in this Configuration.

Assignment already Explained Earlier

2. In this configuration you activated you Credit Memo Request type for Advance Return Oder.

All the Sales Order type for which Sales document Category is K, you see list here in this Configuration.

The assignment already Explain Earlie

3.In this configuration you activated you Subsequent Delivery Free of Charge Order type for Advance Return Oder.

All the Sales Order type for which Sales document Category is I, you see list here in this Configuration.

The assignment was already Explain Earlier.

4.Define Screen Layout for Returns Order: Here we have option to Modified specific field similar to Account group .I personally will say don’t touch this config unless you have any specific Requirements.

5.Specify Requirement Types for Non-Valuated Returns Stock: - You have Specify Requirement type but as we are doing Return mostly business don’t need this as ATP is not Required.

6.Activate and Rename Refund Control: By Default, you can use Whatever Refund SAP offer. Even you go new entry you have same list available.

7.Specify Movement Types for Immediate Goods Receipts: Repeated Configuration node Configuration Covered above.

8.Define Return Reasons for Customer Returns: Repeated Configuration node Configuration Covered above.

9.Define Returns Refund Codes: We define Return Refund Code for customer Return, it basically text Id along with text used for Return Order Creation. No Impact on document flow.

You can Use this attribute for you control refund amount let’s say you have 03 code Description 30% Refund. You can use this code to reduce final price by calling this in Routine of Pricing procedure.

10 & 11. Both Matrix to determine for auto document Creation based Inspection code, Return Reason, Follow up code.

New Matrix

Old Matrix: Determine Refund code based on Inspection code by user After Physical inspection & Return Reason

12.same like above, based on Customer Inspection code you determine Refund code

Note:- I Personally don’t find all this matrix much Useful, but if it suits for your business Requirement Definity use it.

13.We configure the default values follow-up activity, the Material Received checkbox and refund control based on plant and sales office.

Again, this Matrix only but useless as in real time business decide Follow action not based on plant & sales office.

It should be based on type of Product Return, Quality Inspection result & Business Situation (like Demand in market for the Product).

14.Specify Plants Requiring Approval Check: If any user is Create Return Order & he is not Authorize to Create Return Order for that plant. Approval block will be active for order. Authority object MSR_PLANT

15.Specify Settings at Client Level: Need to Explore never use it. 😊

16.Assign Payment Types to Returns Order Types: Again, It’s Matrix only. By default, you can assign Payment type based on Different advance Return Type. Mostly used in Retail business.

3.Supplier Returns: -

Activate Advanced Returns Management for Purchase Order Types: -In this configuration you activated Purchase Order type for ARM (NB2,UB2 NB2C ) .if you are using your Own PO type

You must active PO in this configuration.

2.Define Return Reasons for Supplier Returns: -Similar to Customer return Reason you Create attribute for Vendor Return Reasons. This List will available in PO Dropdown.

3.Define Rejection Reasons for Supplier Returns: - Create attribute for Vendor Return Reasons. This List PO Dropdown.

4.Specify Settings for Replacement Materials from Vendor: In this Configuration you Define PO type for Replacement Materials from Vendor & Tightly Fitting ARM PO types.

In this Configuration Document you mind more details ( I have not tested yet Will Update more about this in Future after testing same).

5.Specify Default Billing Types for Intercompany Store Returns: - In this configuration, you assign Intercompany billing type for Cross Company STO against Delivery.

7.Configure Default Values for Returns Refund Codes:-It is Matrix based on Inspection Code & Order Reason you determine Refund Code into Advance Return Purchase Order.

4.Material Inspection: -

Define and Configure Catalog for Inspection Codes: Already Covered in Must Configuration Section
Specify Catalog and Code Group for Material Inspection: Already Covered in Must Configuration Section
Specify Catalog and Code Group for Inspection by Customer: Already Covered in Must Configuration Section
Configure Authorization for Follow-Up Activities: -In this Configuration you Create Authorization profile, under that Authorization profile whatever Follow-Up Activities that is only allow that only user can perform. Kind of Authorization
Define Number Range for Inspection Outcome: Already Covered in Must Configuration Section
Configure Print Settings: Print Option is available from warehouse Inspection; you Can configure Adobe Form at company code level.

7.Define Blocks for Follow-Up Activities: If you are Not sure on Follow-Up Activities you assign block at warehouse Inspection this will stop further processing.

8.Define Screen Layout for Material Inspection: Here we have option to Modified specific field similar to Account group. I personally will say don’t touch this config unless you have any specific Requirements.

Test case :-

Create Order with FU code 001 :- (Stock will received into plant & after quality Inspection you can make decision).

In this case you Selected

FU code :001 saying stock will Received to plant.

Refund Type: Credit Memo ( i.e you want compensate to customer via refund by replacement )

System will Create Auto delivery LR2 as RE2 type (VOV8) is configured as immediate Delivery.

Once PGR(VL02N) is done you Delivery will be ready for Warehouse Inspection.

Tcode: MSR_INSPWH

In this Screenshot, you can see Above option available as next Logistical activity.

On Refund:-While Order Creation we haven’t Decide now we Can release CMR from here or we Release CMR & put Rejection if don’t to refund Customer.

Both Replacement & Refund are possible. Just you need divide total line qty into Refund & Replacement correctly.it should less or greater than line-Item Qty.

Let me choice Send back to customer. From Return Order-> Return tab-> click on Return Overview

If we selected Ship to Vendor.

If we selected ship to other plant.

Normal STO

Cross Company STO: Intercompany Invoice get added as stock is transferred between two companies.

If we selected Transfer to Specified stock.

Non WM

For WM to manage plant system Create Outbound Delivery to ensure we should be able to Create Transfer Order /Pick stock from different BINS
I personally think SAP should given a same option in Non-WM Manage Plant. In Realtime when do stock movement there will be physical movement (for move to scrap or specified stock).
If Delivery document will their delivery it be Can consolidate into Shipment (base on business Criteria with help this logistic Can be managed in Non WM or WM manage Plants.

If we selected Transfer to Scrap.

WM Manage Plant with respect to Outbound Delivery Goods Movement: -

If we selected, No Further Activity: We still have chance to Open Inspection document & change the Follow code.

If we selected, In-House Repair.

No Compensation allow in Inhouse or External Repair (you can’t Create CMR ->CM or Replacement Order)
Only Option is Create CMR & Put on Rejection From warehouse Inspection.
Further this Inhouse Order need to close separately.

If we selected, send back to Customer: I found this case Gap We Need to do PGI for Send back to customer delivery & Goods Movement document is no link in the Overview.

Now Let me perform a few activities from the Order level directly.

Create Order with Follow Up 003:-

Create Order with Follow Up 0002:-

Create Order with Follow Up 0013:-

Create Order with Follow Up 0003:-

Create Order with Follow Up code 0016:-

Create Order with Follow Up code 0021:-

Note : The Behavior of Refund control is not absolute. It depends on Follow up activity & Refund type system allow sensible option only

8.Important table:

All tables of ARM start with MSR* you can directly search in SE16N.

Table	Usage
MSR_D_HEAD	Header table for return order to check ARM status of document when Logistical & FI status of all line complete you find header status get closed
MSR_D_ITEM	1.Item data for return order 2.when Logistical & FI status of all line complete you find header status get closed
MSR_D_LOG_STATUS	1.It show next pending action this table will show what is next follow up step need to be performed after order is save 2.If no Value found against Return Order line it means your logistical status is completed
MSR_D_FIN_STATUS	1.It have FI status of return Order line. 2. Paying status to the vendor 3.Refunding Status to the customer * 0-Open 1-Partially Processed 2-Complete 3-Waiting for Credit Memo 4-With Errors *
MSR_I_CHAIN	1.Important table with help of chain id we can see status of document 2. chain id can be found in table for different documents in MSR_D_EXECUTED 3.all possible case & document status will have chain id given by sap
MSR_D_EXECUTED	All the document you can found in the tables
/SPE/INSPECRESH	Warehouse Inspection Header table
/SPE/INSPECRESP	Warehouse Inspection Item table

Preferred Alternative UoM for Warehouse Operation in EWM

2024-04-24T10:27:38.006000+02:00

Definition:

The preferred alternative unit of measure is the unit in which we usually handle a product in the warehouse. This is used in various warehouse processes, such as the UoM proposal for the creation of inbound delivery items or in the stock removal rule.

When creating inbound deliveries in SAP Extended Warehouse Management (EWM), the system can propose the preferred UoM automatically. If the products are usually delivered in the preferred UoM, but the inbound delivery is only created in the base UoM, proposing the preferred UoM can speed up the inbound process as the UoM does not have to be set manually for every delivery item.

How system prioritize Preferred UoM Global Level Vs Warehouse level:

We can maintain the preferred alternative unit of measure in the product master on global level and on warehouse level. In the warehouse processes the global preferred alternative unit of measure is used unless a warehouse-specific one is maintained.

Business case example: The base unit of measure of a product is PC. Sometimes cartons with 6 pieces are delivered, but most of the time you receive cartons with 10 PC per carton, and all the warehouse operation is taking place in the carton unit of measure.

In such scenarios we can use the concept of Preferred UoM o in EWM

Solution Approach:

As I mentioned above this concept is applicable for inbound delivery process, outbound delivery process etc. here, I am showing example for inbound goods receipt process.

Step # 1 Define CAR - Carton as UoM in the ERP system.

Alternative unit of measure mapping in ERP side based below picture should be defined in the material master as master data maintenance.

1 0 PC =1 CAR

figure (1)

Step # 2 :

We have to define unit of measure attribute for product under Customizing.

IMG Path – IMG Path – SPRO-->IMG-->SCM Extended Warehouse Management-->Master Data--> Product--> Define Unit of Measure Attributes

Step # 3 :

We have to enabled proposal of the preferred UoM in the inbound process by selecting the checkbox Apply ERP AUoM as SUoM for the delivery item type in Customizing.

IMG Path – SPRO-->IMG-->SCM Extended Warehouse Management-->Goods Receipt Process--> Inbound Delivery-->Define Item Types for Inbound Delivery Process.

we have completed the configuration step for the Preferred alternative UOM, and also we are assuming other configuration related inbound goods receipt is placed in EWM and ERP

Testing:

Example A: Inbound delivery with 80 quantities.

Step # 1: Maintain the Preferred alternative in Transaction /SCWM/MAT1

Step # 2 : Create a purchase order.

Step # 3: Create ERP inbound delivery with quantity 80 PC

Step # 4 : Display distributed ERP inbound deliveries to EWM monitor.

Tcode- /SCWM/MON

Step # 5 Goods receipt and Confirm warehouse task to receive those quantity in final storage bin.

5. a - Confirm Warehouse Task

5.b - Final Put away Completed

Example B: Inbound delivery with 97 quantities

Step # 1: Create ERP Inbound delivery with 97 quantities.

Step # 2 : Display distributed ERP inbound deliveries to EWM monitor.

Tcode- /SCWM/MON

Step # 3 Goods receipt and Confirm warehouse task to receive those quantities in final storage bin.

3. a - Confirm Warehouse Task

3.b - Final Put away Completed.

The system decides whether how to propose the preferred UoM as describe below:

In example A, the preferred UoM is proposed as their quantities are in base UoM as it is multiples of the preferred UoMs.

and in example B , the preferred UoM is not proposed as their quantities are in base UoM are not multiples of the preferred UoMs.

Example A:

Product Name	Base UoM	Preferred UoM
Milk	PC – Piece	CAR – carton of ten PC
ERP Inbound Delivery
Item	Product	Quantity	UoM
10	Milk	80	PC

EWM Inbound Delivery
Item	Product	Quantity	UoM
10	Milk	8	CAR

Example B:

Name	Base UoM	Preferred UoM
Product 1	PC – Piece	CAR – carton of ten PC
ERP Inbound Delivery
Item	Product	Quantity	UoM
10	Milk	97	PC

EWM Inbound Delivery
Item	Product	Quantity	UoM
10	Milk	97	PC

Conclusion:
This blog post walks you through various steps involved in determination of preferred alternative UoM in EWM inbound goods receipt process with test results.

Note: All above testing are done in S/4 embedded EWM 2021 release.

SAP IBP Real-Time Integration: Empowering Businesses for Smarter, Faster Decisions

2024-04-24T10:28:08.899000+02:00

SAP Integrated Business Planning for Supply Chain (SAP IBP) connects the present with the future. Leveraging real-time integration (RTI) capabilities, SAP IBP ensures a seamless connection with SAP ERP (S/4HANA or SAP ECC), equipping users with the latest execution data right when they need it. The result? Improved operational efficiency, impressive processing speeds, and superior planning capabilities that serve an impressive roster of live customers worldwide.

But SAP IBP with RTI reaches further. It revolutionizes the planning experience to be “always on”. Customers can now plan their operations anytime, drawing from the most accurate and up-to-date data, thus enabling informed decision-making. Several of our customers have seen noteworthy improvements in their operational processing times, a clear testament to the transformative power of real-time integration.

One of the major triumphs is the new queue bundling feature. This innovation dramatically increases efficiency, resulting in 5-10x faster processing for incoming orders and stock integration into SAP IBP. This feature presents an exceptional opportunity for businesses dealing with large volumes of data inflow, where improved performance becomes exponentially prominent. These significant time improvements are not just hypothetical but are backed by actual user experience.

Users can conveniently transition to this advanced inbound processing technique using a switch. A straightforward guide to this feature is clearly documented here.

This advent stands as testament to SAP's relentless dedication to offering its users the most advanced experience in planning and managing their supply chain operations. With precise, swift, and powerful decision-making tools at their fingertips, businesses can leverage SAP IBP's enhanced capabilities to succeed in the rapidly evolving commercial landscape.

About SAP IBP Real-time Integration:

SAP IBP Real-time Integration is a robust, event-based integration technology to integrate Supply Chain Planning and Execution. It facilitates immediate and seamless data transfer between SAP ECC, SAP S/4HANA (on-premise and private cloud) and SAP IBP.

With SAP IBP Real-time Integration, the future of supply chain planning is not just updated, it's upgraded.

More Info:

Find all information regarding Real-time Integration at our one stop shop here
Watch our recent webinar - Introduction to IBP Real-time Integration (RTI): Recording
A step-by-step description for RTI Setup Wizard 🚀(aka SAP Cloud Integration Automation Service (CIAS))
can be downloaded here
SAP Help Documentation

#IBPIntegrationRocks

Customize Extended warehouse management monitor (/SCWM/MON)

2024-04-29T09:44:50.180000+02:00

Introduction:

In this blog post, we will learn how we can customize the EWM monitor according to enabled warehouse business processes.

Business case example: Customize the warehouse management monitor for your business-specific needs, example- if your warehouse does not have advance processes like labor management, warehouse Billing, MFS (Material flow system) and we do not want to show it to business users to make it more convenient to them, we can exclude those nodes from EWM warehouse monitor using customizing of warehouse monitor.

SAP has given more flexibility to EWM monitor where, we can create new node with user specific description using configuration and relevant functionality can be further achieved using backend development (this will not cover in this blog).

You can create a customized monitor by dragging and dropping category and object nodes from the pre-existing monitor (by default the standard SAP monitor) displayed on the left-hand side of the screen to your own new monitor on the right-hand side. The monitor on the right is blank by default, but you can change it to a previously customized monitor. You cannot change it to the standard SAP monitor.

Solution Approach:

SAP Standard Monitor view with standard variant.

Step 1: Go to Transaction /SCWM/MON

Enter your warehouse number and monitor as SAP (standard Variant)

As per enabled warehouse businesses process, we do not want to show’” Labor Management”, “Billing” and Material Flow system node to business users in EWM monitor.

Configuration Step

Step # 1

IMG Path – IMG Path –>SPRO –>IMG–>SCM Extended Warehouse Management–>Monitoring Process–> Warehouse Management Monitor–>Customize Monitor Tree

Step # 2 : Now drag selected node (right side one)which you want to add to custom monitor, according to your warehouse business processes and drop to left side icon"New monitor" as shown below.

Step# 3: Click on the Save, then a popup box will be shown where warehouse number, custom variant name and description will be entered.

Press enter to save these changes to configuration transport (customizing transport request).

Step # 4: Assign the custom variant to user parameter so that when user open the /SCWM/MON then default assigned variant will be opened.

Testing:

Step# 1 : Open Transaction /SCWM/MON

Now based on the user parameter value, it directly opens the monitor with variant:ZRETL

Step #2: Display outbound delivery, inbound delivery using custom monitor.

Inbound delivery:

Conclusion:
This blog post walks you through various steps involved in configuration and testing of customizing of EWM monitor with test results.

Note: All above testing are done in S/4 embedded EWM 2021 release and there are several other nodes which can be further customize in EWM monitor.

!! Stay tuned for a coming blog with more details on EWM monitor node customizing.

Change History SQVI for Materials

2024-05-03T07:56:40.569000+02:00

Go to tcode “SQVI” Quick Viewer.
Give your query a name and press “Create” button.

Enter a "Title", select "Table Join" from the dropdown, and then press the green checkmark.

When it goes to the next screen, press the "Insert Table" button.

Enter table "CDHDR" first and press the green checkmark.

Table will appear on the screen. Now repeat and insert for table "CDPOS". It will automatically link to CDHDR.

Now press the green arrow on the top tool bar of SAP window to go back. You will see your tables in the left pane under "Table Join" folder.

Expand down the tables and select these fields. (Start with minimum fields to get results)

A check in the "List" column comes out in the report. A check in the "Selection" column is where you enter criteria and also comes out in the report. Now press the "Execute" button.

You will be at the selection screen now. Enter the table name and field name from the material master. Enter a date range and enter your material number in the Object Value field. DO NOT RUN THIS WIDE OPEN.
I suggest creating a variant to load each time, so you don’t forget. Then change up table/field names, material number, etc.

Now press the "Execute" button. You will see your results of the query with the change value(s) for your material. (This is for a Total Shelf Life change that was made.)

Results without a date:

Just use caution to not run wide open. I hope this helps and turns up in google searches since I spent too much time looking for answers myself.

SAP Integrated Business Planning for Supply Chain (SAP IBP) 2405 - Available Now!

2024-05-03T10:06:48.623000+02:00

We're excited to share our latest innovations with you.

Today, May 3, 2024, SAP Integrated Business Planning for Supply Chain 2405 was generally released as planned.

With our advanced AI-based technology, we have introduced a completely automated outlier detection system that empowers you to make data-driven decisions with utmost confidence, as it identifies and flags any anomalies in your data, ensuring accuracy and reliability.

Check out this and some of the numerous other highlights included in this release:

Demand

Improved Forecast Accuracy through AI-Powered Automated Outlier Correction

You can now automate outlier detection and correction in your sales history data by using machine learning algorithms.
Depending on the sales pattern (for example trend, seasonal or sporadic), the system automatically applies a proper outlier detection and correction method fitting to the individual product.

By automatically pinpointing and adjusting outliers in your sales history data, this feature minimizes the time spent on data cleaning while increasing the accuracy of your sales forecasts.
Leveraging multiple machine learning algorithms, the system ensures that each data point is cross-validated before being classified as an outlier, enhancing the reliability of your data.

Aggregated Lifecycle Planning for Product Assignments

Forecasting for new products is now a lot more flexible as product lifecycle settings can be considered when forecasting on aggregated level.

Let's assume you want to substitute an old product at the SKU level with a new one and therefore you create a product assignment in the Manage Product Lifecycle app. Your forecasting, however, is done at the product group level rather than the SKU level. In previous releases, the product assignment you just made would have been ignored. Now, the assignment can be considered by the forecasting engine, ensuring better forecasting results.

This feature can be used during forecasting as well as within ABC/XYZ segmentation and forecast automation.

Planning UIs

Efficient Analysis with Contextual Navigation

Quite frequently, an issue can’t be analyzed and solved with one single planning view. You often need to load additional components and adjust your filters.
To achieve optimal efficiency, the Planner Workspaces app now provides contextual navigation. This feature allows you to navigate from one component to another, while passing the selected context as a filter.

You can configure navigations tailored to your business needs that guide you through the Planner Workspace. By selecting data in the source component and opening a contextual navigation, the data in the target component is filtered using the selected data in the source component. You can request components on the fly to keep your workbook definition lean.

SAP Best Practices / Inventory

Deep Insights into Working Capital Decisions across the Supply Chain with Analytics Stories for Inventory

Analytics Stories for Inventory Planner are now included with SAP Best Practices content, serving as a foundation to adopt and analyze inventory investment for operational supply or tactical decision support. The dashboards help you evaluate scenarios to foresee risk and opportunities to balance service and cost.

The sample content can be used as a template for inventory operator outputs in SAP IBP, enabling a quick scenario output comparison to quantify impact of changes for improved inventory investment decision making. It includes visualizations on key operator inputs such as forecast error, lead time error, and target service level as well as outputs on slow moving stock, safety stock in volumes and currency, and key drivers of stock.

IBP General

Production Planning Integration Considering Minimum and Maximum Supply Constraints

With the latest feature pack SAP S/4HANA 2023 FPS1, you can now integrate minimum and maximum supply constraints. Using these constraints, you have the option to flexibly plan between these limits in production planning and detailed scheduling. At the same time, production planning and detailed scheduling adheres to the global SAP IBP supply plan as it stays within the given limits.

Consequently, you can now create inhouse production orders and distribution orders in production planning and detailed scheduling based on the SAP IBP plan. Specifying constraints for production planning and detailed scheduling helps, for example, to ensure the minimum resource utilization and increase planning stability between the limits.

Live Data Access to SAP IBP Planning Area Data from SAP Analytics Cloud

Customers of SAP Analytics Cloud are now able to visualize data from SAP IBP with a live data connection. The live connection avoids data replication between SAP IBP and SAP Analytics Cloud. The SAP IBP planning data can be visualized and reported on in SAP Analytics Cloud, and in unison with data from other SAP Analytics Cloud data sources, providing an up-to-date view of the supply chain plan and performance.

SAP IBP supply chain planning data can now be more easily combined with financial planning data in support of the Extended Planning and Analysis (xP&A) process. Representing supply chain planning data in financial terms in real-time helps companies more accurately predict and report on financial performance. Planners can visualize the current supply chain plan and performance with best-in-class analysis tools from SAP Analytics Cloud.

We also have impressive news in the area of real-time integration: SAP IBP Real-Time Integration: Empowering Businesses for Smarter, Faster Decisions

More Information

Unleash the power of Business AI across your Cloud ERP environment!

2024-05-03T20:08:41.484000+02:00

It’s safe to say that AI is everywhere. It’s often a case of “the answer is AI, what’s the question”?

The reality is that business landscapes are rapidly evolving, driven by innovative technologies like Cloud ERP and Business AI.

The business data now available in Cloud ERP systems, complimented by unstructured data from external sources provide a foundation to change the way we make decisions, empower users, automate processes, and predict the future.

Trust in the data and AI recommendations

But AI is only as good as the data it is analyzing.

SAP’s customers provide products that run the world, from baby milk formula to the vehicles that move us from place to place. They look for business systems that help them grow, predict, and adapt to risks, opportunities, and ever-changing business dynamics. And they need to be confident that the decisions they make based on AI generated insights and recommendations are accurate and informed.

Wouldn’t you want AI from someone who has decades of experience of running serious businesses and business processes?

Welcome to Business AI

Business AI leveraging machine learning and natural language processing, analyses this data to generate insights and automate tasks.

This powerful combination of Cloud ERP and Business AI empowers businesses to transform operations, gain deeper insights, and make data-driven decisions with unprecedented accuracy.

As Deloitte’s Subit J. Mathew explained in a recent Future of ERP podcast, “ERPs of the future will be composable, and what makes them composable is a robust foundation like SAP, steering it with human creativity and powering it with AI and intelligent technologies. Essentially moving us from human augmentation to human automation as time progresses.”

With SAP Business AI, we build the system of intelligence with three core principles:

Relevant: Everything is embedded into our leading enterprise applications and business technology solutions. Customers can count on their SAP systems to be futureproofed with the most relevant AI experiences in the context of their business.
Reliable: Based on the unique business data AND business process context, we can deliver the most reliable business AI. Your AI is only as good as your data – we have the most important data and the only one with business data context intact.
Responsible: We deliver AI with the highest levels of concern for security, privacy, compliance, and ethics. SAP has the right character to deliver AI responsibly. Ironically, the more responsibly one builds AI technology, the freer an organization is to use it.
Creating an AI Business Strategy
This underscores the necessity for businesses to thoroughly assess and comprehend various related aspects to craft a robust AI Business Strategy. The key is to identify your business challenges you need to address, the use cases that will improve your business, and then determine how best to address them.
The possible applications for AI in the business context seem endless, but how do you turn this potential into tangible value? What scenarios will work best for your business? How do you build an AI strategy? And how will AI align with your specific operational requirements?
As Subit explained in the podcast, “AI is really about doing things that you do today differently, and being able to do different things that you could never do before!”
We discussed how companies need to segment their AI strategies into three distinct categories:
- Improve efficiency to do the things it does today in a different, more accelerated fashion.
- Improve the user experience to become more intuitive and provide contextual information.
- Deliver new processes and innovation previously not had in the organization.
  A lot of companies are looking at establishing AI Center of Excellence, which really look at it from multiple perspectives and involves answering several questions:
  What is the right governance model you want to put in place around what initiatives do you even prioritize?
  - How do you prioritize the use cases you want to go after?
  - How do you quantify the value of what you want to go after?
  - What is the technology fabric that you're going to use to accomplish this?
    This is the value of where an ERP platform such as SAP comes in. If you combine them with some of the large language models out there, it opens itself up to doing remarkable things.
    To learn more, listen to the Future of ERP podcast: Generative AI and ERP with Deloitte’s Subit Mathew.
    And join us at the upcoming Sapphire and ASUG Annual Conference in Orlando on June 3rd - 5th where you will discover the power of Business AI for Cloud ERP that’s reliable, relevant to your business, and responsible by design.

Physical Inventory Process in SAP EWM

2024-05-07T09:27:50.642000+02:00

Introduction:

An essential aspect of supply chain management is maintaining the accuracy of inventory records. SAP Extended Warehouse management is the most powerful module in the SAP ERP portfolio to manage physical inventory. This blog covers how to do physical inventory in SAP EWM, its importance, and how to manage the warehouse effectively.

Physical inventory involves counting the goods in a warehouse and comparing stock to records to verify stock level and condition. This process helps you identify discrepancies between the actual physical stock in the warehouse and the system records to correct them and show any data entry, theft, or damage issues.

Process flow:

Create Physical Inventory:

Physical inventory document creation is vital in inventory management since it is the base for a successful inventory count. PI can be created with reference to either storage bin, material, or activity area. We must use the transaction code /N/SCWM/PI_CREATE to create a physical inventory document.

Count:

The count refers to the activity performed to check the physical stock quantities available in the warehouse against the recorded inventory data in the system.

Post:

The post refers to validating and updating inventory movements on a warehouse management system.

Recount and Post:

Recount is an activity directly related to taking another look at certain items or areas of inventory that had a ‘Discrepancy’ reported against them during the initial physical inventory count.

Difference Analyzer:

Difference Analyzer is a tool to analyze the difference between physical inventory documents of stock levels in a warehouse and actual inventory levels in the warehouse.

Physical Inventory Execution in SAP:

Step 1: Physical Inventory document creation.

a) To Create the Physical inventory document, navigate to Transaction code /N/SCWM/PI_CREATE).

b) PI document can be created with reference to either storage bin, material, or activity area. Provide the material number and then click on the execute key

Select the line item displayed.

Navigate to the “Set Flag” button and select the option set flag, as shown in the screenshot below.

c) Select the line item and click the “Set Initial status Active” button.

d) Once activated, The PI document is created.

Step2: Count

a) To Count the Physical inventory document, navigate to Transaction code /N/SCWM/PI_PROCESS).

b) Enter the PI document number created in Step 1 and click the execute key.

c) Select the line item and click the “Count” button.

d) In the dialog box, provide the counter and count date and execute

e) Then, provide the Actual qty in the count items section and save.

Step3: Post

a) Click on the Activate option and save.

PI status changes to POST.

Actual qty = 9080.5 EA

Book qty = 9084 EA

Difference = 3.5 EA

Step4: Difference analyzer

a) Since there is a difference in stock, we need to perform the difference analyzer.

Navigate to the transaction code /N/SCWM/DIFF_ANALYZER

From the drop-down option, select product, provide the product number, and then execute.

b) Select the displayed line item and then click on the Post+save option in the line item.

c) Post difference dialog box appears with the message as “Do you really want to clear 1 differences?” Select option “Yes”.

d) The material document will be created.

Conclusion:

The physical inventory process is a vital part of a warehouse organization in SAP EWM. When a proper approach to physical inventory is understood and deployed, businesses can improve their operational efficiency, reduce losses, and increase their profitability and customer satisfaction.

TOP 3 future trends to watch in data analysis

2024-05-08T17:43:38.345000+02:00

The volume of data stored and processed is immense and overwhelming. With such previously unimaginable quantities of data worldwide, it is crucial to leverage the data for our advantage. Apart from storing and protecting it safely, we also need unhindered access to it. Moreover, data, to be usable, requires structure and organization, stable and protected channels for retrieving it, for exchanging and sharing it, and we also have to set up secure ways to update and modify the data.

In this article, Semantic Visions will present its expertise in data analysis that serves various industries, with a special focus on its advanced capacity to turn unstructured data into actionable information. By employing automation, big data technologies and advanced analytics techniques we are able to extract valuable insights and identify meaningful patterns and trends. Data that SV delivers enables businesses and organizations to anticipate future trends and outcomes, optimize decision-making processes, and proactively address challenges and opportunities that may arise. SV real time analytics allow for data-driven decisions with greater accuracy and efficiency.

The amount of data consumed by our societies is growing exponentially and it is estimated that the global volume data will have reached 181 zettabytes by 2025. In 2020, the amount of data created and replicated reached a new high. The growth was higher due to the increased demand because of the COVID-19 pandemic, as more people worked and learned from home and used home entertainment options more often.

In order to navigate this vast information landscape, new industries, professions and systems emerged. This sector encompasses various businesses and industries that collect, analyze, process, store, and monetize data. Companies operating in this sector include data analytics firms, data brokers, data management platforms, cloud service providers, cybersecurity companies, and more.

These businesses offer products and services related to data storage, data analysis, data security, data monetization, and data-driven decision-making. With the expanding size and importance of the data industry, the focus on data privacy and cybersecurity is critical.

The global big data technology market size was valued at USD 349.40 bn in 2023 and is projected to grow from USD 397.27 bn in 2024 to USD 1,194.35 bn by 2032. (a CAGR of 14.8%)

Big data refers to large and complex datasets that cannot be effectively processed using traditional data processing applications. These datasets are characterized by their Volume, Velocity, Variety, and Veracity, often referred to as the “4 Vs” of big data.

In addition to the 4 Vs, some interpretations of big data also include other characteristics such as variability, value, and complexity.

Organizations leverage big data to gain actionable insights, drive innovation, improve decision-making, and enhance business outcomes across various industries and domains.

We at Semantic Visions understand this historic shift and have embraced the challenges of navigating this immense landscape of information.

In the modern economy the commercial data sector plays a primary role. It drives innovation, informs strategic planning, and enables businesses to optimize their operations and services.

Semantic Visions, a data analytical firm, provides accurate and reliable technology intelligence across all industries. Our technology leverages information and knowledge from structured and unstructured data in order to make data-driven decisions, keep control on business operations and gain valuable insights.

Harnessing data leads to efficiency and optimization; data-driven insights enable organizations to streamline processes, optimize resource allocation, and improve operational efficiency. Further, productivity is enhanced and costs are reduced. Managing big data leads to innovation and gives a business or organization a competitive advantage.

Semantic Visions, with its big data technologies and practices, driven by the need for faster, more scalable, and more intelligent data analytics solutions, addresses the growing complexity and volume of data generated by organizations worldwide.

The constant development of data analysis is pushed by the convergence of technological innovation, growing data abundance, increased demand for data-driven decision-making. Also interdisciplinary collaboration, regulatory compliance and risk management, and the emergence of data science as a field of study contribute to the continuous evolution of this sector. These factors continue to shape the evolution of data analysis and drive innovation in the field.

The volume of data generated and processed is massive and continues to grow rapidly with advances in technology, connectivity, and data-driven applications.

USE CASE 1: E-commerce upsurge

Semantic Visions, an established data analytics company, has operated in the industry since 2011, delivers on issues ranging from business intelligence and performance to geopolitical risks, from supply chain risks to innovations in security technologies.

Retail e-commerce has picked up after the Covid restrictions and its volume is estimated to exceed 6.3 trillion USD worldwide, making up for 20 % of global retail sales.

Through Semantic Visions media monitoring tools we have been able to follow the growth of a fast developing global online platform and to map the multiple issues related to its rapid expansion.

Employing our automated technology, we identified and analyzed these risks associated with the company’s business growth since 2022 until present:

Data privacy breaches
Regulatory compliance concerns
Detrimental ESG practices
Involvement in corporate lawsuits
Forced labor issues

The chart shows the period of monitoring, the intensity of media coverage, presenting the growing trends in the specific area of the business activity. To gain a more detailed insight, specific news articles can be retrieved and the articles can be grouped by their topic. News stories can be aligned by the date of publication, news sources, and languages of publication. A timeline of an occurrence can be drawn.

This SV analysis is performed in 12 languages, covering most of the global news outlets.

The client will receive information or alerts in real-time, updated on an hourly basis, in a structured and accessible format. Media monitoring that provides real-time information is an indispensable tool to keep clients informed of trends and emerging issues.

Online retailer: the chart shows the monitoring period of the online retailer and the intensity of media coverage.

Issues identified (associated with the business expansion):

USE CASE 2: Innovation in oil and gas

The oil and gas industry is a key driver of the global economy. In fact, it’s one of the largest industries in the world, accounting for 3.8% of global GDP.

To replace energy derived from traditional fossil fuels, still accounting for around 82% of the global energy mix, and make a shift to green energy is a key objective of many industries. The oil and gas sector is looking at ways to reduce its environmental impact and contribute to the zero-net transition.

Semantic Visions has been commissioned to map and monitor the latest trends in innovation in the oil and gas industry. Our client, a major oil industry company, requested clear, structured and up-to-date data that would identify the latest technological trends and innovations applied in the industry globally. In addition, major corporate drivers of innovation have been determined.

Thanks to our automated tracking technology, we collected data for the period DEC 2023 to MAR 2024, collecting 753 relevant articles across 12 languages and detecting 284 relevant entities.

SV analysis identified the TOP 5 main innovation trends as follows:

These innovative trends have been applied in the following main categories: digitization and automation, exploration and production, followed by sustainability and environment.

The client benefits from structured and accessible visualized data that offer meaningful intelligence and awareness of trends. Our cutting-edge monitoring technology further delivers real-time data that helps map the industry, its key stakeholders and uncover patterns driving the innovation.

USE CASE 3: Arctic ambitions and projects

The global economy and ever increasing interconnectedness- economic, cultural or financial- have accentuated the shared feeling of responsibility and awareness of planetary issues. Conflict and security, resource depletion, global health challenges, and biodiversity loss dominate the news.

In 2022, the Finnish Meteorological Institute’s study revealed the pace of the temperature increase around the North Pole. In recent decades it was four times higher than the rest of the planet; more alarmingly, some parts of the region, notably the Barents Sea north of Norway and Russia, are warming up to seven times faster.

The looming Global warming crisis has had numeros consequences: new maritime routes are opening, the contest for power comes forth, there is competition for the control and future exploitation of unmapped areas, and the race for oil exploitation and drilling is underway.

The Arctic region, comprising the Arctic Ocean and surrounding landmasses, covering the area of 16.5 m km sq, is experiencing significant environmental, geopolitical, and economic changes. Also, the impact on indigenous communities, with challenges to their cultural survival, food security, and socioeconomic well-being, cannot be neglected.

Semantic Visions’ complex system enables a regular and highly focused monitoring of the region and related environmental, business, political or military endeavors.

This use case, focusing on the Arctic region, was limited to the period between 2021 and 2024.

It revealed some major topics and issues impacting the region, such as diverse territorial claims, plans for new maritime routes, a building up of military facilities, a return of Canada and the US to the region, and last but not least, the scale of Russian disinformation devoted to the issue of territorial claims to the region.

Semantic Visions’ technology, by monitoring the complex and multifaceted situation in the Arctic, helps to understand the complex picture, identify and follow the major issues and key stakeholders. Events such as maritime transport disruption, oil and gas exploration, diplomatic accords, defense and security issues, disaster and accidents, or even disinformation related to the region can be traced and monitored thanks to our technology.

Businesses, organizations or interested individuals may comfortably manage and access all relevant events, monitor evolving issues and changing conditions. Moreover, instant insights and actionable data is at hand.

The Importance of Data Analysis Across Industries

Data analysis plays a crucial role across many fields and industries, including business, finance, healthcare, marketing, science, and technology. By leveraging data analysis techniques, organizations uncover valuable insights, optimize processes, mitigate risks, and drive strategic decision-making.

Leveraging Advanced Analytics

As we have showcased SV expertise in the three use cases, our advanced analytics techniques are essential to keep abreast of global events. Being able to monitor and understand the latest developments gives businesses and organizations an edge and invaluable access to data that is so critical for informed decision-making.

Media Monitoring and Global Awareness

Monitoring of supply chain issues, geopolitical insecurities or tensions or emerging global trends affirms the significance of media monitoring, quantifiable and verifiable, so that the client is provided with the complex and up-to-date picture.

Innovative Solutions through Data

SV-delivered data may serve to discover emerging trends, identify unmet needs, and develop innovative solutions. By analyzing data that Semantic Visions collects from various sources, including alternative data, organizations receive comprehensive and timely information for analysis and decision-making purposes.

Innovation and Implementation of New Technologies

In Semantic Visions we understand the imperative of innovation and implementation of new technologies. In view of the vast volume, variety, and velocity of data involved in big data analytics, we have been developing and integrating AI-driven procedures. Advanced automation and our real-time analytical tools enable us to process an unparalleled amount of data with a focus on its delivery to a client.

Anticipating Future Trends through Automated Data Analysis

Thanks to increased automation of data analysis we are able to anticipate future trends and outcomes, optimize decision-making processes, and proactively address challenges and opportunities. The ability to analyze large and complex datasets efficiently is essential for extracting actionable insights and identifying meaningful patterns and trends, as well as ensuring compliance with regulations, providing enhanced risk management and prompt risk mitigation.

Ethical and Sustainable Data-Driven Decision-Making

Semantic Visions not only embraces the latest technological trends of automation and AI-powered data analysis and innovation, but we also reflect on the evolving landscape of data-driven decision-making and the inevitable integration of ethical considerations and environmental, social, and governance (ESG) principles.

_________________

This is another part of a series of articles about the critical role of adverse media monitoring in risk management solutions – overview >>

Underneath the Surface: How Financial Health Assessments Can Strengthen Your Supply Chain

2024-05-10T10:23:08.676000+02:00

Using Financial Health Assessments to Reveal and Predict Supplier Risk

What is financial health?

Financial Health, at its core, is a pulse of a company’s well-being. Every decision a company makes - how they are engaging with their counterparties, managing their finances, funding their business, whether they are making investments or cost cuts, or burning through cash, is reflected in their financial statements.

Why is measuring Financial Health important?

Companies don’t fail overnight. Telltales are visible on their financial statements. A disciplined approach in assessing the financial health of your supplier provides you with advance warning into those telltales. It uncovers your suppliers’ strengths and weaknesses and provides insights into the actions your suppliers are undertaking to navigate through any opportunities or challenges. The outcome of the analysis helps you address any impending risks to your supply chain in a timely manner.

Companies continue to face internal and external pressures in doing business. Some of these are idiosyncratic and the outcome of their own choices, while others are market or macro driven.

The current economic environment with persistent inflation and high interest rates has aggravated the financial challenges for your suppliers. It has added to the costs of doing business and created additional strain on companies. Companies with good financial health can withstand price and capital fluctuations, manage regulatory requirements, and maintain standards. However, those with poor financial health lack the resilience to navigate these challenges. These companies spend more time fixing their financial woes at the cost of investments in quality, R&D, cyber, safety, and more.

Bankruptcies have also surged over the last few years. You continue to read about how companies are trying to strategically trim costs as a response to the current macroeconomic landscape, while others are struggling to stay afloat. Are your suppliers well positioned?

Per RapidRatings data, companies globally are seeing a decline in financial health. Average FHR has weakened from 62 (Low Risk) in 2021 to 59 (Medium Risk) in 2023. Moreover, the level of risk differs across various sectors. For eg, In the Computer Services sector, both public and private companies have deteriorated financial health between 2021 and 2023, but the private companies have deteriorated more rapidly than publics. Public companies deteriorate by 5% to FHR of 58 (Medium Risk) in 2023, while privates deteriorated by 8% to FHR of 56 (Medium Risk).

Financial health monitoring tools, such as RapidRatings’ FHR, give organizations a direct pulse on the risk of their suppliers. The FHR is not only an indicator of the default risk of a company, but a measure of the firm’s efficiency, competitiveness, and operational resilience. The risk insights enable meaningful discussions with suppliers about how they are navigating through challenges.

What is an example of financial health

Data-Driven Insights: Predicting Defaults

RapidRatings’ Annual Default Review showcases the undeniable link between financial health and default. A staggering 95% of companies that defaulted (rated High Risk or Very High Risk by FHR, score below 40) had exhibited financial weakness for three years prior. This data highlights the effectiveness of this approach for long-term risk prediction.

By prioritizing financial health analysis, risk managers can make informed risk assessment decisions based on the most accurate data on the market. This proactive approach safeguards your supply chain and prevents million-dollar blind spots.

Learn more about RapidRatings and SAP integrated financial health solution.

Discover the ways financial health reviews can help organization boost supply chain resilience.

MRP Exceptions - Change Order Collaborations with suppliers On SAP Business Network

2024-05-16T09:06:50.801000+02:00

What is MRP – Exception Change Order Request processes

In SAP S/4HANA, a Material Requirements Planning (MRP) Exception Change Order Request is a mechanism used to handle deviations or exceptions in the MRP process. When there are discrepancies between planned production or procurement quantities and actual requirements, an MRP exception arises. These exceptions can occur due to various reasons such as changes in demand, supply constraints, or unforeseen circumstances.

To manage these exceptions effectively, SAP S/4HANA provides functionality to create change order requests.

Create MRP Change Requests Fiori App:

create change requests for existing purchase order schedule lines based on the list of rescheduling proposals from MRP rescheduling checks.
View the change requests for purchase order schedule lines that were sent to suppliers, with change request details in a table
You can request a change of delivery dates and quantities or a cancellation of purchase order schedule lines that are no longer required.
Send the reason code --> Reason codes are determined automatically based on the information that is available from rescheduling checks or based on the criteria that have been determined by using the Business Add-In Retrieve Reason for MRP Change Request. However, you can adapt the reason code for each change request as required.
Priority of the change request -->Add a priority to change requests or change the priority that has been assigned automatically
View the costs of change for change requests, if provided by suppliers --> The costs of change are displayed only for your information. They are not processed by the system automatically.
Send notes with change requests
This app is available for the following role: SAP_BR_MATL_PLNR_EXT_PROC

Manage Change Requests Fiori App:

The new Manage Change Requests app enables you to follow up on changes you have requested from your vendor as well as place requests for changes you have collected. You create change requests when using the apps for managing material shortages or uncovered requirements.
You can request that the vendor change the quantity or delivery date in a purchase order or stock transport order so that material availability can be ensured, and customer requirements can be fulfilled.
At the end of the process, you either apply the changes, which automatically updates the order, or you discard the request.

Schedule Sending of MRP Change Requests Fiori App:

With the Schedule Sending of MRP Change Requests app, you can schedule MRP change requests and status updates to be sent to your suppliers periodically, by using the APIs provided.

Schedule MRP Rescheduling Checks Fiori App:

With the Schedule MRP Rescheduling Checks app, you can schedule MRP rescheduling checks to run periodically.

MRP Exceptions Collaboration with Supplier on SAP Business Network

This feature improves the communication with suppliers and the processing of MRP change requests in an integrated manner with SAP S4HANA.
This enables material planners in SAP S/4HANA to directly inform their suppliers about exceptions that occurred in an MRP run, such as planned changes in quantity or date of purchase orders.
Processes Flow of MRP Exceptions Collaboration with Supplier on SAP Business Network
The MRP system in SAP S4HANA identifies exceptions such as material shortages, changes in demand, or production delays and create MRP Exception Change order request.
These exceptions trigger notifications and shared on SAP Business Network, alerting both the buyer and the supplier of the issue. The notification should contain details about the exception, such as the affected materials, quantities, delivery dates, and any other pertinent information.
The supplier reviews their inventory levels, production schedules, lead times, and other relevant data and proposes a resolution plan to address the MRP exception. The Supplier can accept MRP Change request proposal, reject or propose alternative proposal.
or
The buyer reviews the supplier's resolution proposal and assesses its feasibility and effectiveness. Depending on the complexity of the exception and the impact on operations, the resolution plan may require approval from relevant stakeholders within the buyer's organization.
Once approved, the resolution plan is implemented by the supplier, which may involve making changes to production processes, adjusting delivery schedules, or fulfilling expedited orders.
Regular communication and collaboration ensure that any further issues or deviations are promptly addressed, minimizing disruptions to the supply chain.

Automated Processing of Responses to MRP – Exception Change Requests

Customizing options in SAP S4HANA enables you to automate the processing of responses to MRP Change Requests:

Customized logic for automated processing of answered change request.
Automated applying to the purchase order when change request accepted.
Automated discarding when change request rejected.
Automated applying / discarding for new proposal within / outside the tolerance intervals.

For change request that have been cancelled, the relevant purchase order schedule lines are automatically deleted from the purchase order.

You can also use the Business Add-In (BADI) Retrieve Settings for Processing of Responses to MRP Change Requests to define the criteria for automatic processing of responses to MRP change requests.

Integration flow - MRP Exceptions – Order Change Request using SAP Ariba CIG - Cloud Integration Gateway

Prerequisites and Restrictions

The SAP ERP should be SAP S4HANA 2021 or above.
This feature is not supported for change requests to scheduling agreements or scheduling agreement releases.
In the J44 integration scenario with SAP S/4HANA, delivery date and service performance dates within a purchase order item are sent in the buyer’s system time zone (time zone from the delivery address is not considered). This could potentially cause the date to oﬀset by a day in SAP Business Network depending on the time zone of the supplier.
In the J44 integration scenario with SAP S/4HANA, the purchase order creation date is considered and mapped to the purchase order document date. Therefore, it is expected that buyers do not change the purchase order document date that is defaulted to the creation date. This is to ensure that SAP Business Network can match the purchase order with the corresponding MRP change request exception.
Suppliers can make only one response or proposal per change request.
Buyers can make only one response or proposal to a supplier's response per change request.
If PO already have Order Confirmation, then that PO is not considered for MRP Change Request generation in S4HANA.

Blog Series – SAP S/4 HANA Supply Chain for TM – 08 – No Click Scenario / Automated TM process

2024-05-20T06:31:57.145000+02:00

Transportation plays a crucial role and is a critical link in the supply chain. Transportation may have been an isolated business process in the past, but it is now increasingly considered within the context of overall supply chain and logistics processes. It is costly, time-consuming, and sometimes difficult to manage. Hence, transportation management systems (TMS) are used to streamline the transportation component of the supply chain. Being a complex problem, transportation management often beckons complex solutions (TMS).

SAP Transportation Management (SAP TM) provides a new generation of functionalities that allows users to manage all their transportation requirements on a single global platform from end to end. SAP TM targets all industries where transportation management plays a major role in order fulfillment. SAP offers the Transportation Management solution as an embedded option (in addition to the decentralized option) where the solution is within the core ERP (SAP S/4 HANA) system. This has greatly simplified the solution and provided various avenues for tight integration of TM processes with the S/4 HANA core modules (SD, MM, FI, eWM). Additionally, one of the key advantages of having advanced shipping (new terminology from SAP for ‘professional shipping’) functionality of SAP S/4HANA Supply Chain for Transportation Management is the ability to model complex and high-volume transportation scenarios.

SAP Transportation process:

With more functionalities, additional process steps in transportation are required, compared to the standard ‘Order-to-Cash’ or ‘Procure-to-Pay’ cycle. For example, in SAP TM, documents such as Freight Unit, Freight Order, Freight Settlement Document etc. are required and process steps such as freight planning, carrier selection, tendering, freight settlement etc. are incorporated. A simple road transportation process along with document flow is illustrated below.

Logistics Integration & Order management involves the receipt of transportation requirements from SAP ERP in the form of SO/STO/PO/Delivery detailing the need to move products from one location to another. Upon receiving transportation requirements, Freight Units (FU) are created and become the basic element for planning the movement of goods through the network. Freight Unit could be one pallet, multiple pallets, or a container/trailer.

In Freight Planning and Optimization, all these Freight Units are planned further considering available vehicle resources, weight and volume capacity of vehicle resources, schedules, routes, freight costs, and other conditions/incompatibilities. Depending on the location of the shipping and receiving points, different methods of transportation may be employed. This process can be executed automatically (by VSR Optimizer) or manually to create Freight Orders and Freight Bookings.

The Carrier Selection and Freight Tendering component of SAP TM enables to select the carrier based on carrier ranking and tender freight order to one or more carriers. The tendering process can be based on RFQ (Request for Quotation) or Direct Tendering. It can be sent peer-to-peer or can be broadcasted to multiple carriers at the same time. When the carrier submits a Freight Quotation, it can be accepted or rejected by the SAP TM user. Upon accepting a Quotation, the system sends the updated FO to the awarded carrier.

In addition to advance planning capabilities, SAP TM can be integrated with Business Network for Logistics (BN4L) for Tendering, Dock Appointment, Tracking and Settlement process. Freight Execution and Monitoring component of SAP TM relies on the events received from internal systems such as eWM (for warehouse status) and external carrier systems (for shipment status) via BN4L or direct carrier/visibility provider integration. Additionally, SAP TM can generate delivery documents in SAP ERP from Freight Orders/Freight Units.

Once the shipment execution has started, it is necessary to settle the freight costs. Charge Calculation and Freight settlement process of TM helps to calculate accurate freight charges, account the freight costs on time (using Freight Settlement Document, Service PO, Service Entry Sheet), distribute it to relevant cost objects (using FI Settlement Document) and provide the details to SAP Billing Document to invoice the customer. When working with logistics vendors, it is necessary to pay the freight in relation to the movement of products. SAP TM Settlement process also supports carrier invoice receipt & verification, dispute management, freight accruals update (based on variance) and integration with supplier invoice management area in SAP ERP for payment process.

SAP Solution:

The illustration above shows that there are additional documents and processes in the SAP TM to cater to the complex and advanced requirements in the transportation process. For other modes of transport, there can be more documents such as Transportation Unit, Freight Booking, etc. For advanced and complex requirements, processes such as load planning, package building, container consolidation, rail routing etc. are available in SAP TM. Even though embedded TM solution has reduced the complexity and duplication of data significantly, end users may still find it difficult to handle all these variations. Hence TM solution, with all its flexibility, may seem very complex to handle.

However, in SAP TM, various batch programs are available which can be run in the background and many of the TM processes can be automated. Background processing enables us to use functions to perform mass processing of tasks and work flexibly with a large number of business documents and generate immediate results. It can be run at a specific time or at the occurrence of a specific regular event.

The ‘no-click scenario’ (or touchless process) in TM is one such automated process. Here, the entire process is executed via background jobs and interfaces, thereby eliminating the need for the user to click any button in the Transportation Management (TM) screens. Thus, user intervention is usually required only for troubleshooting, exception management and for urgent orders that need manual intervention.

No – click Scenario Demo:

As soon as the sales order is created for TM relevant orders, Freight Unit is automatically created using the Freight Unit Building rules (FUBR). Automatic FU building check is activated in the integration profile configuration.

Logistics Integration profile configuration As soon as Sales order 4544 is created, FU got created and is updated in the document flow.

FU document flow

FUs are planned into Freight Orders by running the batch program /SCMTMS/VSR_OPT_BGD. For demo purpose, the job is run in the foreground. However, in projects this can be set up as a background job. Various cockpit selection profiles are used to filter the required FUs that are to be planned. In projects, identifying & designing the scenarios/orders which can be planned via batch job is time consuming and critical. Extensive testing is also required before deploying the solution. Additionally, Carrier Selection can be automated via the planning profile settings and the tendering/subcontracting processes can be initiated immediately.

Planning profile configuration

In case this need not be triggered immediately after the FO creation, batch programs /SCMTMS/TOR_TENDERING_BATCH or /SCMTMS/TOR_FO_PROC_BATCH can be used to send the information to carriers via EDI or BN4L.Optimizer Batch (/SCMTMS/VSR_OPT_BGD)FO document flow after FO creation

Peer-to-Peer Tendering process triggered automatically based on the carrier ranking.

FO Subcontracting Tab

Carriers can respond to the tender/subcontracting request via interfaces. In the example, below BN4L FC is used to respond to the request from TM. Once the tender responses are received, /SCMTMS/TEND_CONT_PROCESS can be used to evaluate and award the tender. Once the confirmation is received from the carrier the FO status will be updated automatically.Tender evaluation batch job (/SCMTMS/TEND_CONT_PROCESS)FO after evaluation batch job run

FO Statuses tab after the communications from carrier

Using delivery batch job /SCMTMS/DLV_BATCH, deliveries can be created automatically in the S/4 HANA system, and this will update the freight units created. The batch job can use selection profile with FO conformation status and other time attributes. The timing and parameters of delivery creation is a very critical design element in projects as it affects not only the transportation process but also the warehouse and availability check process. This can in turn affect the inventory management process.

Delivery creation/proposal Batch Job (/SCMTMS/DLV_BATCH)FO document flow after delivery creation from TM

Please note that in the case of delivery-based planning scenarios, deliveries can be created via the same batch job before TM planning. In this case deliveries will be created based on the FU selection profiles.

Once the PGI is completed (after the Pick pack process in warehouse) and the truck departs, the departure event can be reported by the carrier (BN4L or via EDI). This can also be received from the warehouse too. The shipment statuses received from carrier updates the Freight order status.

FO status update after departure event receipt from BN4L

Based on the FO status (In Execution or Executed), FSDs can be created automatically and posted to ERP using /SCMTMS/SFIR_CREATE_BATCH. This will create SES and Service PO and the document flow in TM will be updated. If automatic charge calculation check is not activated in the FO type config, then batch program /SCMTMS/TOR_CALC_BATCH should be run before the FSD batch job. In case freight cost is used in SAP billing document then this charge calculation batch job should be run before the SD billing batch job run.FO type config to activate automatic charge calculationAutomatic Charge Calculation in Freight Order

FSD Batch Job with Post Immediately option (/SCMTMS/SFIR_CREATE_BATCH)

FO document flow after FSD/Service PO/SES creation

Automatically created FI settlement document

Carrier invoices can be received in TM from carriers via EDI or via BN4L. /SCMTMS/CAR_INV_POST_BATCH can transfer the carrier invoices that are ready for posting in the SAP TM to SAP ERP. If the incoming invoice amount is different from the amount calculated in the Freight Order, then dispute management process may be required to clear process the invoices. This can be handled either in TM or in BN4L. Automatic dispute approval settings are also available in TM and BN4L for invoices within the tolerance limit. Delta settlement batch job (/SCMTMS/SFIR_CREATE_BATCH) can be run to update the accruals after the dispute approval process is complete. There is also the option to receive the invoice directly in S/4 MM/FI module. Additionally, if the carriers are ERS or self-billing relevant, batch programs are available to generate the invoices directly in S/4 and process the payment.

In this example, the FO and Invoice value are the same and hence the invoice received (from BN4L) is ready for posting.FO document flow after the invoice is submitted from BN4L carrier tenant

Posting batch job is run and this created MM/FI invoice which can be later used for payment process in S/4.Invoice posting batch job (/SCMTMS/CAR_INV_POST_BATCH)

Final FO document flow with statuses

If the variance is outside tolerance manual intervention may be required. As the system, data and solution stabilizes the percentage of shipments with invoice variance outside tolerance should be limited.

In the above scenario, the user need not click any button or enter any data in SAP TM document screens and the entire end-to-end process is automated. For complex scenarios such as package building, load consolidation, container building etc. more batch jobs are available to automate the process. Details of some of the background programs are available at SAP Help: Background Processing - SAP TM

Additionally, SAP has provided enough enhancement options to automate the end-to-end process, in case batch jobs and configuration do not suffice the automation requirements. Please note that the above process is just one potential option to automate SAP TM process. There can be many variations and additional batch jobs may be required to achieve the automated process. Also, it is not mandatory to have BN4L to automate the processes in TM.

In general, it may not be possible to automate all orders and shipments in the beginning (especially during the first roll out of the solution). Moreover, it is not mandatory to automate all the transportation processes. For example, we can automate the settlement process and have a semi-automated process for planning. So, it is critical to identify the repeated and high-volume processes which can be automated. SAP provides the tools to automate, and it is the duty of the implementation/project team to strategize and automate the transportation process as per the business requirements.

Conclusion:

Since the Transportation Management Solutions available in the market are complex with advanced functionalities and flexibility, change management for the end-users can be challenging. However, not having a TMS solution may not solve the business problem. SAP TM offers various batch programs to completely automate the transportation process from an end-to-end perspective. This can significantly streamline the process, improve efficiency, and reduce the effort in change management. The no-click scenario (automated/touchless TM process) can have many variations. Many complex scenarios can be automated end to end. Also, it is not necessary to automate the entire end-to-end process of transportation to achieve improved supply chain efficiency.

It may not be possible to automate all the transportation process across various modes and scenarios owing to certain exceptions. For some customers it may be a bit overwhelming to consider automation during the first roll out of the solution. However, once the solution stabilizes, there will be opportunities to automate various processes in a phased manner. There is a high chance that there will be some business units or plants where operations may not have too many exceptions and automation/no-click scenario of SAP TM can be explored. Hence it is imperative for the shippers to explore and implement the automated transportation process to reap the complete benefits of SAP S/4 HANA Supply Chain for Transportation Management.

SAP Community - SAP Supply Chain Management

RISE with SAP advanced PLM package

What is RISE with SAP?

Bring out the best for development teams in product-centric companies

Introducing the Comprehensive Solution

SAP Product Lifecycle Management

SAP Enterprise Portfolio and Project Management

SAP SAP S/4HANA Cloud Private Edition, product lifecycle management

Key Features and Benefits

Conclusion

How strikes affect the supply chain

Transforming Your Supply Chain: Introducing RISE with SAP Advanced Logistics Package

SAP Field Logistics: Centralized Supplier Item Repository for an Optimized Rental Process

SAP Intelligent Clinical Supply Management goes CTS Europe 2024 – our key insights

Sustainability

Collaboration

Artificial Intelligence

Meet us in person

Release Navigator for SAP Supply Chain Management solutions - What's New in 2405

AI-powered supply chain solutions: Better decisions, better outcomes

Adverse Media Monitoring: How to improve overall Supply Chain Management

Information collected through OSINT leverages publicly available data to gather insights, identify trends, and support decision-making processes

Modern piracy and Maritime disruptions

Note the peaks:

European Energy crisis and LNG import terminals

By continuously monitoring online sources for relevant information, organizations can identify emerging risks and opportunities and respond promptly to potential disruptions.

Lithium mining projects monitoring

Semantic Visions’ OSINT platform can alert organizations to geopolitical events, such as trade tensions or civil unrest, that may impact their suppliers or transportation routes.

Advance Return Management complete configuration(SAP ARM)

Preferred Alternative UoM for Warehouse Operation in EWM

SAP IBP Real-Time Integration: Empowering Businesses for Smarter, Faster Decisions

Customize Extended warehouse management monitor (/SCWM/MON)

Change History SQVI for Materials

SAP Integrated Business Planning for Supply Chain (SAP IBP) 2405 - Available Now!

Demand

Improved Forecast Accuracy through AI-Powered Automated Outlier Correction

Aggregated Lifecycle Planning for Product Assignments

Planning UIs

Efficient Analysis with Contextual Navigation

SAP Best Practices / Inventory

Deep Insights into Working Capital Decisions across the Supply Chain with Analytics Stories for Inventory

IBP General

Production Planning Integration Considering Minimum and Maximum Supply Constraints

Live Data Access to SAP IBP Planning Area Data from SAP Analytics Cloud

More Information

Unleash the power of Business AI across your Cloud ERP environment!

Trust in the data and AI recommendations

Welcome to Business AI

Creating an AI Business Strategy

Physical Inventory Process in SAP EWM

TOP 3 future trends to watch in data analysis

USE CASE 1: E-commerce upsurge

USE CASE 2: Innovation in oil and gas

SV analysis identified the TOP 5 main innovation trends as follows:

USE CASE 3: Arctic ambitions and projects

The Importance of Data Analysis Across Industries

Leveraging Advanced Analytics

Media Monitoring and Global Awareness

Innovative Solutions through Data

Innovation and Implementation of New Technologies

Anticipating Future Trends through Automated Data Analysis

Ethical and Sustainable Data-Driven Decision-Making

Underneath the Surface: How Financial Health Assessments Can Strengthen Your Supply Chain

MRP Exceptions - Change Order Collaborations with suppliers On SAP Business Network

Blog Series – SAP S/4 HANA Supply Chain for TM – 08 – No Click Scenario / Automated TM process