Describing STO Collaboration using the CM to OEM Scenario

Objectives

After completing this lesson, you will be able to:

  • Describe STO Collaboration using the CM to OEM Scenario

The CM to OEM Scenario

In the CM to OEM scenario, the stock is to be moved from the CM to an OEM plant. If we compare the Stock Transport Order to a Purchase Order, the CM would be the Supplier and the OEM would be the Buyer. In this scenario, stock is transferred from the Supplier to the Buyer. It is important to remember that when we are dealing with STO Collaboration, the stock is already owned by the OEM (or Buyer). We are not transferring ownership. We are moving the OEM owned stock from one location to another.

CM to OEM Use Case

Consider a case where the CM has done some work for the OEM. We will use the example of a bicycle manufacturer (the OEM). The bicycle manufacturer has delivered bicycle components to the CM with instructions to assemble the bicycles. The CM to OEM scenario for Stock Transport Order Collaboration demonstrates the OEM initiating a transfer of the assembled bicycles from the CM facility to OEM’s facility with a plant specified.

Process Flow for the CM to OEM Scenario

  1. The OEM creates the Stock Transport Order

    The Receiving Plant (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).

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

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

  3. The CM sends the Advance Ship Notice to the OEM

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

  4. 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.

  5. The Goods Issue is posted

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

  6. 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.

  7. The CM ships the goods to the OEM

    The stock is transferred to the OEM.

  8. The OEM sends the Goods Receipt to the CM

    Creating the Goods Receipt is a manual step of the OEM. Once the stock arrives in the Receiving Plant, the plant posts the Goods Receipt. The Goods Receipt is received by the Supplying Plant (CM) on the SAP Business Network.

Illustrating the CM to OEM Scenario

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

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