Enterprise Resource Planning Blog Posts by SAP
cancel
Showing results for 
Search instead for 
Did you mean: 
Varun_Agarwal
Product and Topic Expert
Product and Topic Expert
2,266

With SAP S/4HANA 2023 FPS02, we have delivered two SAP Best Practices scenarios for Advanced Shipping & Receiving.

7GP – Basic TM/EWM – Inbound Advanced Shipping and Receiving.

7GQ - Basic TM/EWM – Outbound Advanced Shipping and Receiving.

Advanced Shipping and Receiving (Adv SR) is introduced to harmonize the processes between the different logistic modules in SAP S/4HANA:  

  • SAP S/4HANA Supply Chain for transportation management (in this document further referred to as “TM”) 
  • SAP S/4HANA Supply Chain for extended warehouse management (in this document further referred to as “EWM”) 
  • Stock Room Management in SAP S/4HANA (STRM) 
  • Inventory Management and Physical Inventory in SAP S/4HANA (MM-IM)  
  • Logistics Execution in SAP S/4HANA (LE) 

Advanced Shipping and Receiving is an integrated, end-to-end process that allows users to send, receive, and transport products. The new simplified integration supports mixed and multi-warehouse scenarios within one single freight order (FO). It helps users coordinate the process steps from arrival of trucks at the gate to the final goods receipt in the warehouse. Now, a truck that has posted arrival at checkpoint can carry out both loading and unloading activities at a location, or it can deliver goods from several warehouses at the same location. Information moves freely between the components and allows you to gain insights into the status of the products during the process. 

Communication is simplified by using a harmonized data model, by applying the EDIFACT standard to EDI messages, and by providing dedicated apps and expanding existing apps and RF transactions for shipping and receiving processes. Information moves freely between the components and allows users to gain insights into the status of the products during the process.

The key benefits of the new ASR process is to harmonize processes in Inbound and Outbound for better visibility and more efficient execution. This involves:

  • Reduce redundancy in business objects.
  • Consistent user experience for execution processes independently of warehouse applications.
  • Harmonized Data.
  • Closer Integration between Transportation and Warehouse activities.
  • Better Alignment with Industry Standards.

Scope Item 7GP describes a common inbound scenario for an Original Equipment Manufacturer (OEM) ordering material from a supplier at different times during a certain time span. In this case study the Adv. SR scenario runs in the OEM’s facilities with a basic TM license and an Extended Warehouse Management license.

The below images describe the process flow for Inbound Advanced Shipping and Receiving scenario covered with Scope Item 7GP.

Inbound Process - 1Inbound Process - 1

Inbound Process - 2Inbound Process - 2

Scope Item 7GQ describes a common outbound scenario for an Original Equipment Manufacturer (OEM) receiving multiple orders from customers. In this case study, the Adv. SR scenario runs in the OEM’s facilities with a basic TM license and an Extended Warehouse Management license.

In the outbound process of Advanced Shipping and Receiving we distinguish between two major process variants i.e. Transportation Driven Process & Warehouse driven Process. Both these processes have been included as part of the 7GQ scenario.

Transportation Driven Process

 A transport-driven process prioritizes transportation planning while warehouse activities are blocked until manually released.

A transport-driven outbound process takes place in the context of internal logistics integration between Transportation Management (TM) and Delivery Management as well as TM and Extended Warehouse Management (EWM), Lean Warehouse Management, and Stock Room Management in SAP S/4HANA. A transport-driven execution prioritizes transportation planning. After delivery creation, the delivery is blocked for warehouse execution until transportation preparations have begun and a block on warehouse activities has been removed. When you release the delivery for warehouse processing, it is then unblocked, and warehouse execution can start.

You must set the warehouse processing status to Ready for Warehouse Processing manually. Consequently, the warehouse receives the information needed to plan and execute its warehouse activities accordingly.


Warehouse Driven Process

In this kind of scenario, warehouse activities (in LE as well as S/4 HANA EWM) are blocked until the planning process in S/4 HANA TM is finalized and the dispatcher has set the status “ready for warehouse processing” in S/4 HANA TM manually. This means the warehousing tasks will be executed only after transportation planning in TM.

The below screenshots describe the process flow for Outbound Advanced Shipping and Receiving scenario covered with Scope Item 7GQ.

Outbound Process - 1Outbound Process - 1Outbound Process - 2Outbound Process - 2

The below screenshot highlights the document hierarchy when performing an inbound scenario in Transportation Management.

Document Flow - Inbound ScenarioDocument Flow - Inbound Scenario

The scenario starts with the creation of Purchase Order. Once the supplier has the goods packed and ready for shipment, an Advanced Shipping Notification (ASN) is sent to the OEM’s system via DELVRY IDOC. The ASN message will trigger the creation of an Inbound Delivery. The creation of the inbound delivery in SAP S/4HANA also triggers the automatic inbound delivery creation in an embedded SAP EWM system. At the same time the system also generates freight unit for the inbound delivery.

The logistics user can use these freight units to already get a rough overview of incoming orders for a dedicated location including e. g.  the relevant Warehouse Number and Warehouse Door or the current Warehouse Processing Status. 

The Transportation Planner uses the freight units to generate a Freight Order.  Once the Freight Order is created, the Transportation execution takes place. In this process trucks arrive at the receiving point location, a warehouse door is assigned to them and then unloading of goods is done. After unloading the trucks are checked out and departed from the receiving point location.

Going forward, we plan to release the Advanced features of Transportation Management with Advanced Shipping and Receiving.

For more information on SAP Best Practices for #SAP S/4HANA Cloud Private Edition, please visit
Process Navigator - SAP for Me.

1 Comment