Managing Packaging Information

Understanding Packaging Materials

Packaging materials are essential for enclosing or securing the goods to be transported. The packaging materials and the goods constitute the handling unit, ensuring that items are safely transported.

Maintaining material master data for each packaging material is essential. When creating material master records for packaging materials, selecting the correct material type, such as VERP (specifically designated for packaging materials), is essential.

Types of Packaging Materials

The material destined for transport can be packaged into or onto various packaging materials. These materials can also serve as load carriers, such as pallets. Some of the most commonly used packaging materials include:

Crates: Used for sturdy and rigid protection of goods.
Boxes: Versatile and widely used for various items.
Containers: Ideal for large quantities and bulk transportation.
Wire Baskets: Suitable for smaller, loose items that need to be grouped.
Pallets: Fundamental load carriers facilitating stacking and handling.

Handling Units: Managing Packaging and Goods Together

The image features three distinct logistics and warehousing management elements. On the left are three blue square icons labeled Material, representing individual items or products. In the center, a white box graphic is labeled Packaging Material, indicating the materials used to package the items for transport or storage. To the right, a larger gray box illustrates a Handling Unit. This graphic shows a packaged item with arrows indicating movement or rotation, suggesting the unit can be maneuvered. Below this graphic, a label reads no. 1234567890, likely indicating a unique identifier or tracking number for the handling unit. Overall, the image conveys the relationship between materials, packaging materials, and handling units, highlighting the organization and management of goods within a logistics context.

A handling unit (HU) is a logistic unit consisting of packaging materials and goods (materials). With Handling Unit Management, the system tracks the entire HU rather than individual materials. The HU serves as the fundamental unit for both material and information flow. A business transaction involving an HU triggers corresponding background transactions for the materials and packaging materials it contains, consolidating several individual material movements into a single entry.

Handling units can be used and transferred to partners throughout the supply chain. Each handling unit is assigned a single identification number that uniquely identifies it across various processes. In cross-system logistics chains, this identification number often must be unique worldwide. A Serial Shipping Container Code (SSCC) number can be assigned to each handling unit to facilitate this.

Packaging Solutions

The image illustrates a flowchart depicting the packing instruction process. On the left are two main sections: Packing Instruction and Sub-Packing Instruction. Under Packing Instruction, there are elements labeled Load Carrier, Auxiliary Packaging Material, and Sub-Packing. Below is a visual representation of a grid-like pattern suggesting packed items. The Sub-Packing Instruction section has corresponding elements titled Load Carrier and Materials, with a square visual representing a separate packing unit. Connecting these sections is the Packing Instruction Determination box, which indicates the decision-making process for packing. An arrow points from this box to the Automatic Packing process, which leads to a representation of stacked load carriers on a pallet. This diagram emphasizes packing instructions' organization and categorization, leading to automated packing solutions. The visual aids in understanding the systematic approach to packaging logistics.

In SAP S/4HANA, different application domains have developed distinct methodologies for determining a packaging hierarchy, each tailored to specific logistics and management needs. Understanding these approaches is crucial for optimizing packaging and logistics operations within the system.

Packing Instructions in Logistics General: Packing instructions are utilized within the Logistics module to define how items should be packed. Packing instructions serve as a template for the creation of a handling unit. The packing instructions define the materials and packaging materials to be packed in a handling unit. This enables you to reproduce specific customer packaging requirements in the system. You can also automate the packing process by proposing a handling unit based on packing instructions.
Packaging Specifications in Extended Warehouse Management (SAP EWM): Packaging specifications have evolved from packing instructions and are employed within the Extended Warehouse Management module. Packaging specifications are part of the master data. The packaging specification defines all the necessary packing levels for a product in order, for example, to put away or transport the product. For a product, a packaging specification mainly describes in which quantities you can pack the product into which packaging materials in which sequence.
Package Building in SAP Transportation Management: Package building is a feature offered in the SAP Transportation Management (TM) module and is utilized within EWM during the cartonization process.
- Given a set of product quantities, package building determines a packaging hierarchy to minimize the number of top-level packages
- Different Package Building modes:
  - Rule-based package building: layer-based and volume-based
  - Detailed mixed package building: optimizer (PBO) defines x/y/z positions and orientations
- Features: separator material, deep packaging hierarchy, incompatibilities between products, orientation profile, loading sequence per package, and so on. Considers material master, package building profile, and so on

The image presents a decision-making flowchart organized into three main columns: Extended Warehouse Management (EWM), Transportation Management (TM), and Logistics General (LO). At the top of the diagram, the question, How do you choose? is prominently displayed. Under each application column, several categories are listed. In the Extended Warehouse Management (EWM) column, there are two subcategories: Packaging Specification Processing and Packaging Specification Master Data. The Transportation Management (TM) column includes Package Builder Processing and Package Builder Master Data. Lastly, in the Logistics General (LO) column, the subcategories are Packing Instruction Processing and Packing Instruction Master Data. The flowchart structure is designed to assist users in selecting an appropriate packaging approach based on the specified applications. The layout emphasizes clarity and organization in presenting complex data related to packaging management systems.

While packing instructions and packaging specifications are rule-based and share many similarities, package building offers a very different approach, which isn’t based on rules but considers constraints and offers an optimization algorithm to build optimized mixed pallets. If a product is always handled and shipped in a certain packaging structure, this could be modeled very well by packing instructions or packaging specifications. Suppose the business involves transporting mixed pallets containing multiple products for one or even multiple customers. Package building may be more appropriate in that case as it minimizes the required mixed pallets.

As the integration of these components is driven by recent developments, consolidating/unifying the use of the three packing solutions has become a priority.

Unified Package Building

The image illustrates a flowchart that outlines the relationship between different packaging management systems. It features three main columns: Extended Warehouse Management (EWM), Transportation Management (TM), and Logistics General (LO). At the top of the diagram, the Applications category is presented. A blue box labeled Unified Package Building (UPB) connects the three application columns in the middle of the layout. Above this box is the UPB Test Cockpit, indicating a generic packing layer. Under each application column, there are two further subcategories. In the Extended Warehouse Management (EWM) column, the subcategories include Packaging Specification Processing and Packaging Specification Master Data. The Transportation Management (TM) column contains Package Builder Processing and Package Builder Master Data. Finally, in the Logistics General (LO) column, the subcategories are Packing Instruction Processing and Packing Instruction Master Data. The flowchart is designed to show the integration of the UPB across various packaging approaches and highlight how different systems interact within the packaging process. It emphasizes the organization and complexity of packaging management within logistics applications.

UPB aims to unify the previously diverse packaging methodologies across various applications in TM, EWM, and LO. Historically, these applications utilized different packing engines based on different packing rules and persistence approaches for resulting packaging hierarchies. Given the similar underlying requirements for packaging materials, SAP's long-term strategy is to align and unify these approaches.

The UPB component is a reusable component that allows the packaging of products by using one of the available packing engines (defined as UPB engines) and applying configurable rules (defined as UPB rules). Currently, the supported UPB engines are based on:

Packing Instructions (PI)
Package Builder (PB)
Packaging Specifications (PS)

The UPB is currently supported by processes in the following applications:

Transportation Management (TM)
Extended Warehouse Management (EWM)
Logistics General (LO)

During package-building, the system groups products into packages based on specific constraints while minimizing the total number of packages. The system can also determine each product item's exact position and orientation within the package. These constraints can be defined for various product combinations, business partners, equipment, and locations. When multiple constraints apply, the system always uses the most specific constraint.

In a nutshell, the UPB component receives input items corresponding to materials. It applies UPB rules (and returns a packaging hierarchy as a result).

Unified Package Building (UPB) in SAP S/4HANA represents a strategic advancement in packaging methodologies, integrating various approaches into a unified framework. UPB enhances efficiency, consistency, and optimization in packaging operations by aligning packaging processes across different applications.

Unified Package Building in the Planning Process

In Transportation Management (TM), the system can create packages through several methods, ensuring flexibility and efficiency in packaging operations. These methods include:

Early in the Process: During Freight Unit Building. Unified package building can be utilized during the creation of freight units. This method is ideal when packages will be built on a per-freight-unit basis.
Late in the Process: Based on Capacity Documents. Unified package building can be activated for capacity documents, such as road freight orders. This approach is particularly effective when building customer-mixed packages.

Watch the simulation Review Package Building to learn how to build packages using packaging-building functionality.

ExerciseStart Exercise