Advanced Shipping and Receiving

• Cross-warehousing loading/ unloading: In Advanced Shipping and Receiving you can integrate TM in S/4HANA with the following warehouse management applications located in the same SAP S/4HANA system.
  • Lean Warehouse Management in SAP S/4HANA: You can use a very simple warehouse where inventory management takes place solely at storage location level. You need to create a place holder warehouse that ensures the document flow in TM.
  • Stock Room Management in SAP S/4HANA: You can use Stock Room Management for small warehouse operations and for warehouse operations with low complexity. Stock Room Management contains SAP S/4HANA functionality from the former Warehouse Management in Logistics Execution (LE-WM).
  • Extended Warehouse Management in SAP S/4HANA: You can use EWM for a flexible, automated support for processing various goods movements and for managing stocks in your warehouse complex.
• Easier Integration with business partners: Communication is simplified by using a harmonized data model, by applying the EDIFACT standard to EDI messages, and by providing dedicated apps and expanding existing apps and RF transactions for shipping and receiving processes. Information moves freely between the components and allows users to gain insights into the status of the products during the process.
• Multi-pick /mufti-drop: The freight order can contain both EWM managed and IM managed storage locations, for example at a production location, and the two storage locations can share a loading point. Same truck able to unload and load at the same location during a multi-stop route with only one business object freight order.
• Simplified communication between components embedded in the SAP S/4HANA: Advanced Shipping and Receiving simplifies communication between components embedded in the SAP S/4HANA.
  • Transportation Management (TM)
  • Extended Warehouse Management (EWM)
  • Stock Room Management (STRM)
  • Inventory Management and Physical Inventory (MM-IM)
  • Logistics Execution (LE)

https://youtu.be/jLZM5S84AWM

A consignment order plays a significant role in facilitating communication within business dealings involving multiple partners. For instance, if you are a supplier, a consignment order allows you to convey to your ordering party the specific products you deliver, the destination, and the delivery date. Each consignment order is given an identification number, which acts as a mutual reference point for all involved business partners. Each consignment order can be linked to a particular freight order.

A consignment order also forms the foundation for conducting various other tasks, such as subcontracting, calculating charges, settling accounts with the carrier, and even tracking shipments. However, tendering activities cannot be performed utilizing a consignment order. This can be rectified in the customization settings for the consignment order or freight order type, by enabling charge calculation and settlement options or marking the documents of this particular type as suitable for subcontracting.

Also, a consignment order can be assigned to a specific road freight order, allowing for the determination of the exact vehicle that transports the product payload. While each consignment order can only be connected to one freight order at a time, a singular freight order can encapsulate multiple consignment orders. The planning and execution of transport logistics arise from the freight order.

Furthermore, a consignment order can be linked to a transportation unit, such as a container or trailer unit, which, in turn, can be attached to the freight order. Nonetheless, the container or trailer unit must implement a transportation stage mirroring that of the consignment order.

It is possible to deliver goods to or pick up goods from several warehouses at the same location.

If you have a large warehouse with multiple loading or unloading points and several doors, and you use more than one application component for warehousing, you can organize your loading and unloading activities in detail, and decide which door, loading or unloading point can be used by which application component. A loading point or unloading point is defined in the master data as a location and represents a group of doors where goods are delivered or picked up. This allows greater control over where trucks load or unload cargo.

If you operate a sizable warehouse equipped with multiple loading or unloading locations and an array of doors, along with the use of numerous application components for warehousing, you have the ability to organize your loading and unloading processes with precision. You can specify which door or which loading or unloading location can be used with a particular application component. A loading or unloading location is classified in the master data as a site and denotes a group of doors that facilitate the delivery or collection of goods. This results in improved command over the specific locations where trucks load or unload merchandise.

Master Data: You have made the following settings in the location master data on the SAP Easy Access screen under Logistics Transportation Management Master Data Transportation Network Location:

• You have activated Advanced Shipping and Receiving: You do this, by indicating in the master data for your source or destination location. Location type 1003, shipping point & location type 1200, loading points, is relevant for Advanced Shipping and Receiving. This setting is mandatory
• You have defined a location with location type 1200 (loading point). The setting is mandatory.

Assignment of Doors: Assign Stock Room Management (STRM) doors or Lean Warehouse Management (Lean WM) doors to Extended Warehouse Management (EWM) doors or loading points. This setting is mandatory for all scenarios using shared doors and multiple warehousing components. The setting is not required for a scenario that only uses EWM.

As you can see on this slide, these scenarios offer distinct approaches to our operations. Let's start with the first scenario, known as the warehouse-driven scenario. In this case, the outbound delivery process is initiated, followed by picking and packing. Once the picking process is completed, and the status of ready for shipping is set, transportation planning can start. This scenario emphasizes the workflow within the warehouse, ensuring that all necessary steps are completed, before moving forward with transportation planning.

On the other hand, we have the transport-driven scenario, which can be based on either sales orders or deliveries. The key difference between the two lies in the timing of the delivery creation. In a transportation-driven scenario, based on sales orders, the delivery is created after the transportation planning phase. However, in the other scenario, the delivery is created immediately. After transportation planning, the subsequent steps align with the warehouse-driven scenario, ensuring consistency in the overall process.

To summarize, the transportation-driven scenario, regardless of whether it's based on sales orders or deliveries, places emphasis on transportation planning, before initiating the remaining steps in the process. In contrast, the warehouse-driven scenario follows a sequential order within the warehouse, allowing for efficient execution.

In conclusion, by considering these various scenarios and understanding the implications, we can now optimize our operations and ensure a smooth flow throughout the entire process. It's important to evaluate the specific needs of your project and choose the most appropriate scenario that aligns with your objectives and operational requirements.

In summary, future logistics and advanced shipping and receiving bring a multitude of benefits to the transportation and logistics landscape. By harmonizing outbound and inbound processes and integrating TM and EWM into S4/HANA, we have unlocked new levels of efficiency and optimization. Our support for multipick, multidrop scenarios, improved integration with business partners, and the introduction of new objects like consignment and loading points, have all contributed to a seamless logistics execution.

For those interested in exploring the subject in more detail, I recommend checking out some related blogs and SAP Notes.

• 3225241 Advanced Shipping & Receiving Setup Guide Basic version
• 3271412 Advanced Shipping & Receiving Setup Guide GTS version