Describing STO Collaboration using the CM to CM Scenario

Objectives

After completing this lesson, you will be able to:

  • Describe STO Collaboration using the CM to CM Scenario

The CM to CM Scenario

In the CM to CM scenario, the stock is to be moved from one Contract Manufacturer to another Contract Manufacturer. In this scenario, the Stock Transport Order is initiated by the OEM. The objective of this Stock Transport order is to transfer stock between Contract Manufacturers. It is important to remember that when we are dealing with STO Collaboration, the stock is already owned by the OEM. We are not transferring ownership. We are moving the OEM owned stock from one location to another.

The CM to CM scenario use Multi-Tier Collaboration. The OEM initiates the STO which is sent to the primary Contract Manufacturer and a copy STO is sent to the other Contract Manufacturer (a copy supplier). Multi-Tier is essential in order for all parties to be informed about the movement of stock.

The CM to CM Use Case

Consider a case where an OEM engages with multiple CMs to perform tasks that are part of the manufacturing process. We will again use the example of a bicycle manufacturer (the OEM). Suppose that the bicycle manufacturer has delivered bicycle components to a CM with instructions to install the braking system on the bicycle. The bicycle frames and braking system are delivered to a CM to perform the braking system installation. When that work is done, the OEM wants the components transferred to another CM who will assemble the frames and wheels of the bicycle. The CM to CM scenario for Stock Transport Order Collaboration demonstrates the OEM initiating a transfer of the bicycle components from one CM facility to another CM facility.

Process Flow for the CM to CM Scenario

  1. The OEM creates the Stock Transport Order

    The OEM creates a Stock Transport Order (STO) in the SAP ERP system with the order type Stock Transport Order and the item category U (stock transfer). The STO designates CM 1 as the Supplying Plant and CM 2 as the Receiving Plant.

  2. The Stock Transport Order is sent to CM 1 on the SAP Business Network

    The Supplying Plant (CM 1) receives the STO request in the SAP Business Network.

  3. A copy of the Stock Transport Order is sent to CM 2 on the SAP Business Network

    The Receiving Plant (CM 2) receives a copy STO in the SAP Business Network.

  4. CM 1 sends the Advance Ship Notice to the OEM

    When Contract Manufacturer 1 (Supplying Plant) receives the STO, they create a Ship Notice on SAP Business Network confirming the shipment details. The ship notice is sent from the SAP Business Network to the SAP ERP.

  5. A copy of the Advance Ship Notice is sent to CM 2 on the SAP Business Network

    The Receiving Plant (CM 2) receives a copy STO in SAP Business Network

  6. The Outbound Delivery is automatically created

    The reception of the Ship Notice triggers the creation of an Outbound Delivery in the Supplying Plant of the SAP ERP.

  7. The Goods Issue is posted

    The Goods Issue is created and posted automatically as a result of the Outbound Delivery.

  8. The Inbound Delivery is created

    The Inbound Delivery will be created automatically as a result of the Goods Issue being posted if the SPED Output Type has been configured.

  9. CM 1 ships the stock to CM 2

    The stock is transferred from CM 1 to CM 2.

  10. CM 2 creates a Component Receipt on the SAP Business Network

    After receiving the stock, CM 2 creates a Component Receipt. The Component Receipt is received in the SAP System as a Goods Receipt.

  11. The Goods Receipt is sent to CM 1 on the SAP Business Network

    The Goods Receipt that was received from CM 2 is now forwarded to CM 1 on the SAP Business Network

Illustrating the OEM to CM Scenario

The following video is a visual illustration of the CM to CM scenario.

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