Logistic Core Operations with SAP

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1 Logistic Core Operations with SAP

2 .

3 Jens Kappauf l Matthias Koch Bernd Lauterbach Logistic Core Operations with SAP Inventory Management, Warehousing, Transportation, and Compliance

4 Jens Kappauf SAP AG, Walldorf Germany Bernd Lauterbach SAP AG, Walldorf Germany Matthias Koch SAP AG, Walldorf Germany ISBN e-isbn DOI / Springer Heidelberg Dordrecht London New York Library of Congress Control Number: # Springer-Verlag Berlin Heidelberg 2012 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. All printed screens, SAP, the SAP Logo, my SAP, SAP R/3, ABAP, NetWeaver Portal are subject to copyright or are trademarks of SAP AG, Dietmar-Hopp-Allee 16, Walldorf, Germany. Printed on acid-free paper Springer is part of Springer Science+Business Media (

5 Contents 1 Introduction Purpose of This Project Whom Do These Books Address? SAP-Beginners Ambitious Users Managers and IT-Decision-Makers Operational Significance of Logistics Supplementary Logistics Services Customer-Oriented Logistics Definition of Logistics for This Book Differentiation from Materials Management Functional Classification of Logistics Classic Logistics Core Areas Expansion of the Traditional Core Areas Objective: As Comprehensive a Portrayal As Possible Related Literature in the Appendix Logistics Functional Areas Procurement Markets Sales Markets Structure of This Book Transport Logistics Warehouse Logistics and Inventory Management Trade Formalities Controlling and Reporting Overview of Volume Appendix Thanks v

6 vi Contents 2 Transport Logistics The Fundamentals of Transport Logistics Business Significance Transportation from the Shipper View Transportation from the View of the Logistics Service Provider Shipper and Service Provider Hybrids SAP Systems and Applications Subprocesses and Components of SAP Transportation Solutions Transportation Processing Scenarios and Their Integration in Procurement and Distribution Logistics Master Data in Transport Logistics Customers and Vendors in SAP ERP Plants, Storage Locations, Shipping Points and Loading Points in SAP ERP Business Partners in SAP SCM Materials in SAP ERP Products in SAP SCM Transportation Network and Transport Equipment in SAP ERP Transportation Network and Resources in SAP SCM Organizational Data in SAP ERP and in SAP SCM Transportation Management with SAP ERP Types of Transportation Processing Shipment Documents Transport Packaging Important Functions in the Shipment Document List Processing and Planning Functions Freight Cost Calculation Transportation Planning with SAP APO Transportation Optimization with SAP APO (TP/VS) Documents and Transportation Optimization Scenarios with APO Transportation Planning Transportation Management with SAP TM Document and Process Overview Cross-Divisional Functions Business Objects and Functions Illustrated in a Sample Process Order Management Transportation Planning and Optimization Booking Freight Space Subcontracting... 91

7 Contents vii Transportation Charge Management Integration with SAP Event Management Summary Warehouse Logistics and Inventory Management The Fundamentals of Warehouse Logistics Management-Related Significance Systems and Applications Organizational Structures and Master Data Inventory Management Goods Movement Inventory Valuation Special Stock and Special Procurement Forms Handling Units Warehouse Management with WM Warehouse Structure and Integration Inbound Delivery Transfer Order and Quantity Deviations Goods Issue Warehouse-Internal Processes Warehouse Management with SAP EWM System Integration Warehouse Organization and Stock Movement Goods Receipt Warehouse-Internal Processes Goods Issue Cross-Warehouse Functions Summary Trade Formalities: Governance, Risk, Compliance The Basics Process Risks SAP Applications for Logistics Processing According to Trade Formalities Foreign Trade Processing with SAP ERP Master Data and Integration Legal Control Preference Determination Documentary Payments Communication/Printing Periodic Declarations Governance, Risk and Compliance with SAP BusinessObjects Global Trade Services General Process and Integration in SAP ERP

8 viii Contents Compliance Management: Sanctioned Party List Check Compliance Management: Import/Export Control Customs Management Risk Management Summary Controlling and Reporting SAP Event Management (SAP EM) Basic Characteristics of SAP EM Application Interface Event Handlers and Event Messages Event Handling Information Input and Output Data Entry for Event Messages Web Interface Standard Processes in Event Management Auto-ID Infrastructure and Object Event Repository Basics of RFID and EPC Technology Auto-ID Infrastructure Object Event Repository Reporting and Determining Key Performance Indicators SAP NetWeaver Business Warehouse The Information System in SAP ERP The SCOR Data Model Reports and Dashboards: Examples Data Extraction from SAP Logistics Applications Summary Glossary Bibliography Index

2.6.8 Transportation Charge Management Integration with SAP Event Management Summary... 98

2.6.8 Transportation Charge Management Integration with SAP Event Management Summary... 98 Contents 1 Introduction... 1 1.1 Purpose of This Project... 1 1.2 Whom Do These Books Address?... 2 1.2.1 SAP-Beginners... 2 1.2.2 Ambitious Users... 2 1.2.3 Managers and IT-Decision-Makers... 2 1.3 Operational

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