Identifying Organizational Units for Supply Chain


After completing this lesson, you will be able to:

  • Design an organizational structure to suit your Supply Chain processes

Main Organizational Units in Supply Chain


The plant is the central organizational unit in supply chain.

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Storage Locations

The storage location enables the separation of material stock quantities within a plant.

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Plants and Storage Locations in the Enterprise Structure

The enterprise structure is created by the assignment of organizational levels to each other. Therefore, a client may contain several company codes, and a company code may contain several plants. However, a plant can only ever belong to one company code.

Similarly, several storage locations may be assigned to a plant, but a specific storage location can only belong to one plant.

Shipping Points

A shipping point is an organizational unit that indicates a point from which goods are dispatched. Specifically, outbound deliveries and the associated goods issues are processed and monitored at a shipping point in the system. Each outbound delivery is processed at a single shipping point. The shipping point is included in the delivery and is passed on to it from the sales order or stock transport order.

A shipping point can also be defined as a goods receiving point, so that it can also be used for inbound deliveries. For the sake of simplicity, we refer only to "shipping points" in this lesson.

In the configuration of the enterprise structure, you define the combinations of shipping points and plants.

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Decision Support for the Definition of Organizational Units

How should I define plants?

Are storage locations sufficient to manage my stock or do I need Warehouse Management?

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