Explaining the Availability Concept

SAP Order Management for sourcing and availability addresses two key questions related to commerce channels. First, it determines product availability by applying a central inventory repository, offering a near real-time snapshot.

Second, it aids in sourcing decisions, guiding where products in a shopping cart should be obtained based on predefined business goals.

• Collects Inventory from different locations
• Availability is stored as time series
• Calculates what is available to sell based on initial availabilty, reservations, safety stock, context and sourcing strategy

• Determines sourcing based on product availability, sourcing strategy and optional input parameters such as shipping method and latest delivery date
• Sourcing strategies configured based on business goals

The Overall Architecture in the Diagram is formed by three layers:

1. Channels (Store, Commerce, B2B): Request Services for Availability and Sourcing and create the Orders
2. Industry Cloud Services (SAP Order Management for sourcing and availability, OSTA, OMF, etc.): Provide Services to the channels : Availability, Sourcing, Reservations, POS Audit and Distribute Orders to the relevant ERP/Back-End
3. ERP and Back-End Applications: Systems of record for Master data, Inventory, Transportation Lanes, Site Capacity

The SAP Order Management for sourcing and availability Architecture specifically has the following elements:

1. Commerce Channel request Availability and Sourcing Services from SAP Order Management for sourcing and availability (API/REST)
2. SAP Order Management for sourcing and availability provides availability and sourcing services and is formed by two applications:
   • Central Inventory (Orchestrate Inventory and Provide Availability)
   • DFO Sourcing (Provide Sourcing Services, selecting the best possible source to fulfill an order based on Sourcing Strategy and Business goals)
3. ERP and Back-End applications provide SAP Order Management for sourcing and availability applications with Master data, Inventory data, Site Capacity and Transportation Lanes.

The Availability calculation in SAP Order Management for sourcing and availability is performed by the Central Inventory component.

The Availability calculation for Stores is based on:

• 1. Inventory Snapshot - Replicated from ERP and represents usually the Stock on Hand.  Optionally it could also include Stock Type and Special Stock indicator to address scenarios requiring Safety Stock , Stock in transit and Vendor consignment Stock. 
• 2. Temporary Reservations - Reservations are managed directly in Central Inventory. At the time of Commerce Check-out process SAP Order Management for sourcing and availability will reserve temporarily the stock for that order.
• 3. Update Reservation: Once the order is confirmed and arrived into the ERP the temporary reservation is removed because the stock for that order is already included in the next Inventory Snapshot.
• 4. Unprocessed sales - Represent the POS sales which has not yet being posted into the ERP and recognized as part of the stock on Hand.

The Availability calculation in SAP Order Management for sourcing and availability is performed by the Central Inventory component.

The Availability calculation for Distribution Centers (DCs) is based on:

• 1. ATP Snapshot - Replicated from ERP and represents the Availability to Serve calculation in a time series (Today, TODAY+1, TODAY+3,….) it takes into consideration the ATP process run which calculates availability based on stock on hand and includes future issues and receipts.
• 2. Reservations - Reservations are managed directly in Central Inventory. At the time of Commerce Check-out process SAP Order Management for sourcing and availability will reserve temporarily the stock for that order.
• 3. Update Reservation - Once the order is confirmed and arrived into the ERP the temporary reservation is removed because the stock for that order is already included in the next ATP snapshot.

The screenshot represents the SAP S/4HANA ATP calculation view. It is based on Stock on Hand, Future issues (Stock for Customer Orders) and Future Receipts.