Exploring the Functionality of SAP Auto Management for Sourcing and Availability

Objective

After completing this lesson, you will be able to explore the functionality of SAP Auto Management for sourcing and availability

Site Management

A horizontal process flow chart with steps labeled: Overview, Site Management (highlighted), Transportation aspects, Inventory import, Sourcing strategy configuration, Simulation, Availability, Sourcing, Research.
Four icons and descriptions: 1) View imported sites and their data. 2) Update current site capacity via API. 3) Update maximum capacity via API. 4) Create and manage site groups.

Exploring Sites

The first aspect introduces us to the list of imported sites, complete with essential data like addresses, locations, and maximum capacity. The ability to filter by site type adds a layer of convenience, allowing us to streamline our focus.

Utilized Capacity 

Moving forward, the second aspect is the capacity management. Through the power of APIs, we can not only view but also update the current utilized capacity of a site.

Maximum Capacity

The third aspect extends our control to the maximum capacity of sites. The relationship between maximum capacity and utilized capacity comes into play, offering a comprehensive view of the operational landscape. APIs once again empower us to make real-time updates seamlessly.

Site Groups

Lastly, we step into the realm of site groups. This feature allows us to create and manage groups comprising both stores and distribution centers. This strategic move facilitates easier integration into various strategies, a time-saving alternative to the manual addition of individual sites.

Screenshot of the SAP Order Management Site Management interface, displaying site information such as Site ID, type, location, and maximum capacity for various distribution centers and stores.
Screenshot of an SAP interface for Site Management, showing site group details, including site names, types, locations, and maximum capacity for orders.

Transportation Aspects

Welcome to the fascinating world of transportation aspects in OMSA, a key concept that shapes how products move from one place to another.

Let's embark on this journey, unraveling the three main transportation aspects that play a pivotal role in this intricate system.

Flowchart showing steps in a process: Overview, Site Management, Transportation aspects (highlighted), Inventory import, Sourcing strategy configuration, Simulation, Availability, Sourcing, Reservations.
Icons representing three concepts: Transportation Service Codes (calendar and clock), Transportation Zones (map with paths), and Transportation Lanes (curved road with markers).

Transportation Codes

Our first stop introduces us to transportation codes, the building blocks representing different service levels within a transportation lane. Imagine express or standard service codes, each potentially associated with distinct carriers like DHL or FedEx. These codes, crucial for defining shipping methods, are the foundation of our transportation framework.

  • Transportation service codes (TSC) are used to represent different levels of service for a given transportation lane.​
  • As an example, you could have "Express" or "Standard" service codes. Or service codes related to different carriers.​
  • You have to have at least one TSC defined.

Transportation Zones

Next, we delve into transportation zones, entities defined by a collection of geographical areas. These areas can be countries, subdivisions, or soon-to-be-added postcodes. Picture creating a transportation zone that encompasses specific countries or regions, providing a flexible and dynamic approach to defining shipping destinations.

  • A transportation zone (TZ) is an entity used in OMSA defined as a collection of geographical areas.​
  • The geographical areas that can make up a transportation zone are:
  • countries as defined in ISO-3166 (https://en.wikipedia.org/wiki/ISO_3166)
  • Subdivisions, 6-character strings. We suggest you use ISO-3166-2 (https://en.wikipedia.org/wiki/ISO_3166-2)
  • Postcodes

Transportation Lanes

The journey continues as we explore transportation lanes, the routes connecting different transportation zones. Each lane has attributes like cost to ship, average cost, and delivery time, crucial for determining the optimal route for an order. With examples ranging from the Iberian Peninsula to the British Isles, we witness how service codes, costs, and delivery times shape the possibilities within OMSA.

  • Transportation lanes (TL) connect TZs to each other, creating a "route".​
  • Each TL has a fromTransportationZoneID attribute and a toTransportationZoneID attribute which represent the route an order can take

Transportation Lanes

Transportation lanes (TL) connect TZs to each other, creating a "route".

Each TL has a fromTransportationZoneID attribute and a toTransportationZoneID attribute which represent the route an order can take.

Additionally, a TL includes a service code and an average cost to ship (cost) and an average delivery time (durationInSeconds).

Map showing routes between locations in the UK and nearby regions, marked with standard and expected values. Curved arrows indicate travel paths between points.

Example

Example Transportation Lane

from TZto TZService CodeCost to ShipDelivery Time
Iberian PeninsulaIberian PeninsulaStandard3 EUR2 day
British and Irish IslesBritish and Irish IslesStandard4 EUR3 days
British and Irish IslesIberian PeninsulaStandard5 EUR3 day
British and Irish IslesBritish and Irish IslesExpress5 EUR1 day

Inventory Import

Flowchart illustrating different phases: Overview, Site Management, Transportation aspects, highlighted Inventory Import, Sourcing strategy configuration, Simulation, Availability, Sourcing, and Reservations. Includes bullet points: ATP snapshot, Inventory snapshot, Unprocessed.

Inventory import in OMSA is a crucial function offering users the power to import diverse data types, including time series and cross-sectional data. Imagine having the ability to foresee upcoming inventory batches and observe snapshots from various backend systems such as point of sale, warehouse management, and e-commerce platforms. This functionality empowers retailers to create a centralized view of their inventory seamlessly.

The inventory import functionality gives inventory data users the ability to:

Import different types of data such as time series (ATP Snapshot) and cross sectional (Inventory Snapshot) from various backend systems, such as point-of-sale (POS), warehouse management, and e-commerce platforms.

Benefits

Enables retailers to create a centralized view of their inventory. This unified inventory visibility allows them to see real-time stock levels, and availability across multiple channels and locations.

Learn more: Integration with Industry Cloud Solutions from SAP | SAP Help Portal

Distribution Center Availability Data Flow

Let's demystify how distribution center availability flows within OMSA. Initially, a snapshot from an ERP, like a wave of information, is persisted in OMSA, forming the foundation of consumers' initial inventory visibility. Periodically, at a frequency chosen by users, a Delta update is generated, enriching the availability data within OMSA. This, coupled with reservation management, ensures a dynamic and up-to-date inventory overview.

Flowchart comparing the Full and Delta ATP Snapshots processes, detailing steps like generating, persisting, consuming ATP snapshots, and updating availability in ERP and inventory systems.

Store Availability Unveiled

The story of store availability mirrors the distribution center narrative. A snapshot of store inventory sets the stage, creating the initial availability crucial for services like pick-up in-store and shipped from store. Throughout the day, as products fly off the shelves, unprocessed sales data, originating from POS system registers, keeps OMSA informed. At the day's end, the unprocessed sales are reconciled, ensuring the store's availability remains accurate and aligned with consumer demand.

Flowchart illustrating the process of store inventory snapshots, including POS transactions and inbound processing, detailing steps for consuming snapshots and updating availability.

Sourcing Strategy Configuration

Diagram depicting a workflow process with labeled steps: Overview, Site Management, Transportation, Inventory Import, Sourcing Strategy Configuration, Simulation, Availability, Sourcing, Reservations, including sub-items under Sourcing Strategy Configuration.

Sourcing Strategy Configuration: Steps to Take

Four icons representing settings options: a hand pressing a button for goal selection, a laptop with a gear for configuration, a list for additional settings, and nodes connected for site assignment.

Goal Selection

Let's explore the key steps one by one in configuring a sourcing strategy for Order Management. We'll start with the critical aspect of goal selection. The interface provides options for configuring the sourcing strategy, and you'll find five goals: Utilize capacity, delivery time, cost to ship, shipments per order, and cost to pick and pack. Depending on your business targets, you can selectively enable or disable these goals. For instance, if labor constraints are not a focus, you might untoggle "Utilize Capacity."

Screenshot of an SAP Order Management interface for East Canada - summer. It displays goal configuration settings with toggles for selecting goals, split shipments, and partial order options.

Utilize Capacity

Utilized capacity is a key metric defined as the average percentage of utilized capacity across all sites. Imagine a site with a capacity of 8 shipments. The utilized capacity is calculated based on the number of assigned orders. As orders are assigned, the utilized capacity percentage fluctuates. Companies have the flexibility to update this metric based on fulfilled orders or at the end of the day.

Screenshot of an SAP Order Management interface showing settings for the East Canada - summer goal configuration, focusing on Utilized Capacity and its definitions.
Flowchart showing site capacity: total capacity is 8 SHs with 3 filled gift boxes indicating current utilization, and a truck below with empty boxes representing available space.

Delivery Time

Order delivery time is the duration an order takes to reach the consumer from the moment it's made. This time is calculated based on transportation lanes and their associated delivery times. The goal here is to achieve the average delivery time per order across all sites. Consider a scenario where different products have varying delivery times; the system aims to optimize the overall delivery time.

Screenshot of SAP Order Management interface showing 'East Canada - summer' configuration for delivery time. Text explains delivery time calculation and goal attributes.
Diagram explaining delivery options from two warehouses for an order containing a T-shirt, shoes, and cosmetics, highlighting delivery times of 2, 2, and 4 days respectively.

Cost to Ship

The cost to ship represents the average amount spent to ship an order from a specific site to the transportation zone containing the delivery address. This goal focuses on minimizing the average cost to ship per order across all sites. If the strategy prioritizes cost efficiency, the system intelligently selects the site with the lowest shipping cost.

Screenshot of an SAP interface displaying the East Canada - summer order management settings. Key sections include goal configuration and split shipment details, focusing on Cost to Ship.

Cost to Ship

Infographic detailing shipping costs from two sites: Site A ($5.00) and Site B ($3.00). Highlights options for fulfilled orders from either site or a split between both.

Shipments per Order

When an order is fulfilled from multiple sites or at different times, it becomes a split order, and each partial order is termed a shipment. The goal is to optimize the average number of shipments per order. This ensures efficient order fulfillment, considering scenarios where a customer order may involve products from different locations.

Screenshot of an SAP Order Management interface detailing goal configurations for 'East Canada - summer', including sections for split shipments and partial orders.

Cost to Pick and Pack

The cost to pick and pack measures the average expenditure to prepare an order at a specific site. It encompasses costs related to packaging and handling. The goal is to minimize the average cost to pick and pack per order across all sites. This becomes crucial in scenarios where cost efficiency in the packing process is a priority.

Screenshot of SAP interface for East Canada, displaying goal configuration for order management, including Cost to Pick and Pack with explanatory text on its definition.
Table comparing costs for picking and packing orders from Site A and Site B, including per shipment, per product, and per item costs, with an example order calculation.

Goal Settings Configuration

Now that we've delved into each goal, the next steps involve configuring goal values, constraints, and weights to fine-tune the strategy based on business preferences. This includes specifying the level of importance for each goal and defining constraints that ensure the system operates within acceptable limits. Weightage allows companies to prioritize certain goals over others.

Screenshot of SAP Order Management interface showing goal configuration for East Canada. It outlines various goals like weight, delivery time, and shipping cost, with explanatory notes.
Screenshot of SAP Order Management for East Canada, showing goal configurations, weight, goal values, and constraints. Text explains the limitations of solutions in relation to specified constraints.
Screenshot of SAP interface showing goal configuration for East Canada - summer. Key features include weight settings to prioritize goals and evaluate multiple criteria simultaneously.

Usage of Settings

Table comparing delivery time and cost to ship for four sites. Sites A and B are viable options, while C and D exceed constraints. The task is to determine the better option between A and B.
Table comparing normalized delivery time and cost to ship for Site A and Site B, highlighting total solution costs of 1.48 and 1.55 respectively. Emphasizes simplified cost measurement.
Graphic illustrating the importance of cost to ship versus delivery time for business users, with calculations for two sites showing Site B as the better option.

Additional Settings

Screenshot of SAP Order Management interface showing Sourcing Configuration for East Canada. It includes goal settings, split shipments, and priority order options with an explanatory note.
Diagram shows product order and availability for 5 pieces. Without toggle, sourcing fails. With toggle, system may split order between Site A and Site B.
Screenshot of SAP Order Management settings for East Canada. It displays goals, constraints, and explanations regarding sourcing configuration and partial orders.
Diagram showing a request for 8 pieces of a product from two sites. It explains order fulfillment based on toggle status, indicating success or error states for partial orders.
Screenshot of SAP Order Management interface showing sourcing configuration settings for East Canada, including options for goals, partial shipments, and toggle information for sourcing products.
Flowchart showing product order request for 1 piece each of Product 1 and Product 2, with availability from Site A and Site B, and options for enabling or disabling partial orders.
Screenshot of SAP Order Management interface displaying configurations for East Canada - summer. It includes sections for goal settings, split shipments, and priority selection for partial orders.

Site Assignation

A screenshot of the Edit Sourcing Strategy interface in SAP, displaying site configuration options for assigning sites to a sourcing strategy, including details like Site ID, type, and region.
Two icons representing concepts: on the left, a funnel labeled Availability Calculation with colored circles; on the right, a network diagram labeled Requesting Sourcing with interconnected dots.

When using the availability calculation end-point, the system will restrict the availability of products to only the sites assigned to the strategy indicated in the request https://api.sap.com/api/availabilityCalculation_API/overview

When requesting sourcing, products will only be sourced from sites assigned to the strategy included in the request

Simulation

Introducing a valuable functionality - simulation! This recently unveiled feature empowers users to simulate order sourcing based on specific strategies. The concept behind simulation is to provide business users with a testing ground before implementing strategies in a live environment. It allows users to comprehend the workings of the sourcing algorithm, confirming if selected parameters lead to anticipated outcomes. During simulation, the strategy configuration, including goals, values, and constraints, is replicated. Additionally, users can configure test orders with shipping destinations, products, quantities, and unit measures. The simulation yields the best option, showcasing the outcome an actual sourcing call would produce. This transparency builds user trust in the system, aiding in understanding the algorithm's decision-making process.

Flowchart outlining steps in a simulation process: includes simulation strategy creation, order configuration, results analysis, and print settings, with highlighted focus on Simulation.
Screenshot showing the Sourcing Simulations feature in SAP. It includes simulation settings, last run date, and a description of the simulation benefits for business users.
A user interface screenshot for SAP Order Management shows a Review Sourcing Simulation section, detailing sourcing configurations and site selection options.
Screenshot displaying a simulation order configuration interface. Users can input sample orders, specifying product IDs, units of measure, and quantities for sourcing simulation.
Screenshot of a user interface displaying site selection criteria, order definition, and simulation options, highlighting the Run Simulation button for results.
Screenshot of a sourcing simulation results analysis, highlighting three options with metrics like utilized capacity, cost, and algorithm score,

Availability

Exploring the Essentials: Sourcing Availability and Integration

A horizontal flowchart outlining a process with steps: Overview, Site Management, Transportation aspects, Inventory import, Sourcing strategy configuration, Simulation, and Availability.

In Order Management , understanding sourcing availability is pivotal. This involves configuring the sourcing process, conducting simulations, and inquiring about product availability through APIs. Three key APIs play a role: Availability to Sell, Availability to Sell by Site, and Availability Calculation. The first provides the overall product availability, considering reservations and safety stock across all sites. The second narrows it down to a specific site or list of sites. The third, Availability Calculation, goes a step further by incorporating a strategy ID, giving aggregated availability specific to the associated strategy.

The system will accept three types of availability requests, all available as open APIs:

  1. Availability to Sell

    The system will return the availability to sell for each of the products included in the request across all sites

  2. Availability to Sell by Site

    The system will return the availability of each product included in the request at each of the sites included in the request and from when each will be available

  3. Availability Calculation

    The system will return the availability to sell for each of the products included in the request across all sites associated to the sourcing strategy ID included in the request

Dive deeper into availability queries with open APIs. Uncover the intricacies of Availability to Sell requests, allowing you to specify quantities and receive real-time responses on product availability. Explore optional features like requesting a required quantity and defining specific contexts for product-site combinations. The context field acts as a protective layer on inventory, ensuring tailored visibility based on channels or regional webshops. These optional fields add flexibility to your sourcing inquiries.

Availability to sell is defined as the inventory at hand minus the reservations and minus the safety stock, if any.

Optionally, the request, independently of the type, can include:

  • A specific required quantity of a certain product, in which case the system will respond on whether they have that required quantity or not
  • A context. The context field can be used as stock segmentation. If it is used, then the response will only include the subset of available products labelled with such context

Benefits

Accurate and reliable availability will increase customer satisfaction and reduce revenue loss due to cancelled orders.

Learn more: REST API | SAP Order Management for Sourcing and Availability | SAP Business Accelerator Hub

Sourcing

Flowchart depicting steps in a process: Overview, Site Management, Transportation, Inventory Import, Sourcing Strategy, Simulation, Availability, and Researches, with 'Sourcing' highlighted and listed options below.

There are two ways to call the API for click to ship and click and collect.

The distinction between them lies in the sourcing optimization. With click to ship, OMSA doesn't perform sourcing optimization; instead, the consumer specifies where to pick up items.

In click and collect, sourcing determination occurs, including optional service level preferences like express shipping and latest delivery date. OMSA automatically determines the best service level and delivery date if not specified. Regardless of the consumer's choice, the system manages reservations to ensure promised products aren't mistakenly shown as available to others and updates strategy statistics.

Sourcing

The application offers an open API to calculate sourcing of an order based on a specific sourcing strategy.

There are two types of ways the API can be called:

Click to ship

The system will determine the optimized site(s) from where the order will be shipped from and return the expected delivery time and, optionally, the expected cost to ship.

Click and collect

The request will contain the location where the order will be picked up at. The system will then determine the expected time within which the product will be available for pick up and, optionally, the cost, if it applies.

Optionally, the request can include:

A desired service level. The system will optimize results using only the transportation lanes for that service level.

The latest possible delivery date. The system will return a solution for which the expected delivery date is within now and the latest delivery date.

The benefits of sourcing include easier integration with the API, seamless integration into sales channels, flexibility with supported fulfillment models, and increased customer satisfaction due to varied consumer options. Statistics update with each confirmed order, showing the trailing average of utilized capacity compared to the set goal value for a specific strategy on OMSA's main page. Warnings or green check marks indicate if the average is above or below the goal, aiding immediate strategy assessment for improvement.

Sourcing

Both for click to ship and click and collect, the system will:

Take reservations so that the products promised to a consumer will not continue to appear available to other consumers.

Update the strategy statistics: The business user will be able to check how well each strategy is performing vs the goal values. If the current trailing average is above the corresponding value, a warning symbol will be shown.

Benefits

Easier integration into sales channels, greater flexibility with different fulfilment models supported, as well as greater consumer satisfaction, thanks to the different option the consumer can choose from.

Learn More: Overview | Sourcing | SAP Business Accelerator Hub

Table displaying performance metrics for Low Cost USA. Includes weight points, goals for utilized capacity, delivery time, shipping cost, and shipments per order, with status indicators.

Reservations

Flowchart showing stages in a process: Overview, Site Management, Transportation aspects, Inventory import, Sourcing strategy configuration, Simulation, Availability, Sourcing, and Reservations with subcategories.
Icons representing three states: Temporary with an hourglass, Pending with a credit card, and Confirmed with interconnected cards. Each label positioned below its corresponding icon.

Temporary

Reservations are optionally created in status temporary by the system when it receives a sourcing request.

They are automatically deleted after a set amount of time (by default, 30 minutes) if the consumer ends up abandoning the cart

Pending

Temporary reservations are set to pending by the sales channel once the consumer has finalized their purchase.

Pending reservations are not deleted.

Confirmed

Pending reservations are set to confirmed by the sales channel once the back-end has been notified of the order.

A confirmed reservation is deleted automatically once the system receives an inventory update which includes the product/site combination related to a confirmed.

Understanding Confirmed Reservations

In the realm of Order Management Foundation, the fate of confirmed reservations unfolds intriguingly. When a new Delta snapshot arrives, carrying the weight of product-side combinations linked to confirmed reservations, a pivotal decision emerges - deletion. However, if the Delta bears connections to pending or temporary reservations, a different narrative unfolds; these reservations endure. This intricacy stems from the meticulous consideration that, after dispatching an order to the ERP, the subsequent update accounts for the order, influencing availability. With confidence, we embrace the deletion of reservations, concluding this segment and offering a glimpse into our roadmap.

Flowchart illustrating data processes between ERP and OMSA. Shows snapshot generation, data ingestion, inventory management, reservations, and order management steps, labeled with arrows and numbers.

Roadmap Insights

Our current focus revolves around the nuanced task of resourcing orders. This involves addressing rejected orders, ensuring that the subsequent resourcing yields diverse outcomes. Peering into the future, our roadmap unfolds with promising features. Detailed transportation lanes take center stage, accompanied by a commitment to sustainability in sales velocity. Moreover, our sights are set on providing strategic recommendations based on data, ushering in an era of extensibility with custom attributes and KPIs.

Roadmap

 NowNextLater
Configuration and cross-themes
  • API to retrieve available transportation aspects
  • API to retrieve available sites
  • Single Order Sourcing Simulation Configuration
  • Ability to temporarily disable sites from being considered in sourcing decisions
  • Visibility of Availability
  • Dynamic Strategy Determination
  • Advanced Simulation configuration
  • Analytics configuration
  • Trial
  • Extensibility concept (custom attributes and goals)
Sourcing
  • Sourcing based on latest delivery date
  • Sourcing allowing split quantities
  • Sourcing allowing partial quantities, and partial line items
  • Sourcing based on cost to pick and pack
  • Single order sourcing simulation
  • Re-sourcing of full orders
  • Sourcing based on Transportation lanes on more granular level (postal codes)
  • Immediate release of reservation for cancelled or modified orders
  • Sourcing based on additional business goals (Sustainability, Sales velocity, Carrier capacity)
  • Strategy settings recommendations
  • Sourcing based on calendars and slots
  • Re-sourcing of partial orders
  • Best sourcing for each service level
Availability
  • Reservation management for click and ship and click and collect
  • Safety stock
  • Availability by Sourcing Strategy
  • Availability blockers for resourcing
  • Support for Plants
  • Stock indicators: availability updates
  • Product availability for simulation: snapshot and upload
  • Support for Marketplaces
  • Contextual Availability
Integrations

Integration to SAP Order Management foundation for sourcing by line ID

  • Integration to SAP Order Management foundation for order resourcing
  • Integration to SAP Commerce Cloud
  • Integration to SAP Omnichannel Sales Transfer and Audit for Store Inventory
  • Integration to Marketplaces
  • Integration to SAP Intelligent Returns Management for exchanges

Learn more: SAP Road Map Explorer

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