Applying Value-Added Services

Objective

After completing this lesson, you will be able to perform value-added services

Value-Added Services

Introduction

Note

See the following video to learn more about performing value-added services in a warehouse and the use of a VAS order:

VAS Order Details

A VAS order is created with reference to an inbound delivery or an outbound delivery order and the required packaging specification. The packaging specification uses packaging specification levels to inform the VAS order regarding VAS activities the warehouse employees need to perform in the warehouse. Information in the delivery provides the VAS order with the exact amount of work to be performed.

The VAS order contains the following:

  • order header
  • list of VAS activities
  • items
  • auxiliary products

A VAS order can be created manually or automatically. Automatic VAS order generation can be configured to create the VAS order in the following situations:

  • When the warehouse request document is created.
  • For an inbound process, when the goods receipt posting is made.

VAS Data

The VAS data from the VAS order can be viewed or printed for employees in a VAS work center. VAS data can also be viewed in the warehouse management monitor.

You can record the auxiliary products and the quantities used for the value-added services performed at work centers. Examples of auxiliary products used in VAS processing are products such as packaging materials, strapping, shrink wrap, hangers, labels, and miscellaneous supplies.

Consumption can be recorded for all auxiliary products in the system if:

  • Consumption has been set for auxiliary products required for value-added services.
  • A storage bin has been assigned in the VAS work center for the auxiliary products.

Options in a Putaway or Picking Process with Value-Added Service

Depending on how you use storage control, there are different options available in the goods receipt process or the goods issue process for performing value-added services using a VAS order.

Value-Added Services with Process-Oriented Storage Control

If you are using process-oriented storage control, the system uses handling unit warehouse tasks for the movements in the warehouse. It requires that you work with HUs, but additional process steps are possible before or after the VAS activity (like unloading / loading).

Flowchart depicting a packaging specification process for handling units (HU). On the left, there’s a packaging specification document listing numbers 1 to 5 followed by VAS with a green checkmark. This leads to the 9030 Doors process. Subsequently, it routes to the 9010 Goods receipt process, represented by a gray rectangular box. Afterward, the process moves to two people working at a conveyor belt, handling multiple items that are colored teal, green, blue, and navy blue. Below the conveyor belt is a shelving unit displaying different units stored in distinct colors matching the ones on the conveyor, signifying organized storage post-handling.

Value-Added Service with Process Step

If you have only defined the individual process steps, and are not using process-oriented storage control, physical movements are done with products warehouse tasks. HUs are not required, but therefore of course no other process steps are possible. It is possible to have more then one work center for value added service steps, but the creation of the warehouse task has to be triggered from the work center. For this you do not complete the process step assigned the HU, but use the function Create VAS Warehouse Task.

A flowchart illustrating the process from packaging specification to storage. On the left, there's a yellow document labeled Packaging Specification with numbered steps from 1 to 5. An arrow pointing down leads to a green document marked with a check and labeled VAS. An arrow labeled 9010 Goods receipt moves right to two stick figure workers at a conveyor belt, each with a computer screen. Colored boxes (green, blue, teal, and light blue) are on the conveyor between them. Another arrow points to shelving on the right with boxes stored, matching the colors from the conveyor.

Value-Added Service without Process

If you are not using process-oriented storage control, and you have not defined any process steps, you print out the VAS order and the warehouse employees undertake the VAS activities at the work centers manually. When the VAS activities are completed, you can enter a confirmation in the system, but this is independent of the movement with warehouse tasks.

Flowchart illustrating the process of packaging in a warehouse setting. On the left side, there is an icon representing packaging specification, followed by an arrow leading to an icon labeled 'VAS' with a green checkmark. Below is a box labeled '9010 Goods receipt.' In the center, there is an icon depicting a computer screen, with arrows pointing to a shelf on the right side containing colored bins. At the bottom of the chart are two worker icons sitting at a table with four colored boxes, indicating manual processing or inspection. The arrows suggest workflow direction from packaging specification to goods receipt and then to shelf storage or inspection by workers.

How to Explore Value-Added Services

This is part 1 of 2 of the demonstration:

DemoStart Demo

This is part 2 of 2 of the demonstration:

DemoStart Demo

Use a Value-Added Service in a Putaway Process

This is part 1 of 2 of the exercise:

ExerciseStart Exercise

This is part 2 of 2 of the exercise:

ExerciseStart Exercise

Kits and Kitting

A kit is a list of products that are always delivered together. Examples of kits include the following entities:

  • Groups of materials used to repair a piece of machinery.

  • Groups of materials used for assembly tasks.

  • Add-on products for other products.

  • Displays or assortments of products to sell in a retail store.

SAP Extended Warehouse Management does not save kits as master data. Instead, it receives information about the structure of a kit in the form of outbound delivery items from the SAP ERP system. The structure containing the kit in the outbound delivery along with a packaging specification, is used as a basis for assembling or producing a kit in SAP EWM.

A kit can consist of the following levels:

  • Kit header, which represents the finished kit.

  • Kit component, which represents a product in the kit.

SAP EWM does not support "nested kits" (which are kits within kits).

"Kitting" is the process of building or assembling kits. SAP EWM supports kit-to-order and kit-to-stock processes.

In the kit-to-order process, each kit is assembled based on a customer order. This is similar to a make-to-order manufacturing process. To support sales of pre-assembled kits, SAP EWM also provides a kit-to-stock process in which kits are pre-assembled and placed into stock.

The image depicts a conceptual diagram. On the left side is a simple line drawing of a computer monitor. Two gray arrows extend from the monitor to two elements on the right: one pointing towards an abstract representation of a microchip at the top, and the other towards another computer monitor icon at the bottom. The monitor on the left is drawn with minimal detail, while the microchip and second monitor icons on the right are drawn with colored fills, vibrant teal and orange, respectively. The diagram may illustrate concepts related to computer processing or connections between devices.

Kitting Process

Although SAP EWM supports the kitting processes, there is no master data such as a bill-of-material (BOM) stored in SAP EWM. The kit is represented as a hierarchy of items of an outbound delivery order. In kit-to-stock, SAP EWM can reference a BOM stored in the ERP system.

The following rules apply to kits:

  • A kit is always delivered in full to a customer.

  • The kit header and kit components are always scheduled for the same date.

  • All components for the kit must come from the same warehouse.

  • Kit prices are always calculated at the header level.

  • A kit header and the kit components have a quantity ratio to each other. This is defined by the kit structure.

Kit-to-Order Process Steps

The kit-to-order process, in its simplest form, consists of the following steps:

  1. A sales order is created for the kit header in SAP CRM or in SAP ERP.

  2. SAP EWM creates a warehouse request (outbound delivery order). This process triggers the kit-to-order process.

  3. The kit components are picked and assembled into the finished kits.

  4. The system confirms the delivery and the goods issue is posted for the kits.

  5. The sales order is updated and the billing is triggered for the order.

Kit-to-order processing can be performed using a VAS Order and a corresponding work center, or it can be performed as part of the picking process.

Flowchart illustration depicting an assembly line process. From left to right: a truck icon represents delivery moving towards a speech bubble with a computer icon indicating a digital order or inventory system. Two worker icons sit at a table with colorful blocks illustrating assembly. Above and below, arrows direct attention to shelving units each containing products represented by various colored blocks, indicating storage or warehouse management. Speech bubbles with chip and computer icons suggest systems integration or communication within the process.

Kit-to-Stock Process

The process of creating kits and then transferring them to stock is executed and documented in the warehouse. You can either trigger kit creation manually in the ERP system based on a production order or in the SAP EWM system directly, using a VAS order.

The image illustrates a flowchart related to packaging specifications and the Visual Automated System (VAS). In the upper left, there is a document labeled Packaging Specification with numbered steps from 1 to 5, followed by a check-marked document labeled VAS. Below, a conveyor belt with different colored packages, blue, green, and teal, is operated by two stylized human figures seated across from each other. Arrows extend from the conveyor belt towards different elements. One arrow leads to a computer icon at the bottom. Another arrow extends to a chip icon on the right. Lastly, arrows point to two shelving units on either side, filled with boxes colored in teal, green, and blue, suggesting organized storage or distribution of packages.

You can also perform reverse kitting, which splits a kit back into its components.

Summary

    • Value-added services (VAS) are controlled by SAP EWM via the VAS order (created via a a packaging specification with specific characteristics).

    • A VAS order contains an order header, a list of VAS activities, items, and auxiliary products (for example, packaging materials, straps, and labels) and can be created manually or automatically.

    • VAS can also be used for kitting. A kit is a fixed set of components delivered together and in SAP EWM is represented by outbound delivery item hierarchies rather than stored master data. Kits can be produced for orders ()KITO) or for stock (KISO).

How to Explore a Kit-To-Order Process

This is part 1 of 2 of the demonstration:

DemoStart Demo

This is part 2 of 2 of the demonstration:

DemoStart Demo

Explore a Kit-To-Order Process

This is part 1 of 2 of the exercise:

ExerciseStart Exercise

This is part 2 of 2 of the exercise:

ExerciseStart Exercise

Learning

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