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Product and Topic Expert
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SAP Business Network enabler for Automated Storage and Retrieval System (AS/RS)

As company increasingly adopt Warehouse Automation technology collectively called Automated Storage and Retrieval System (AS/RS) system to cut expenses by minimizing the warehouse staffs contact for safety reason and unnecessary parts/products in storage and improving organization of the contents of a warehouse. Due to automated processes, it also allows for more storage space due to high-density storage, narrower aisles, etc.

The pre-requisites of the process are knowing what and when are goods arrived at warehouse. SAP Ariba Supply Chain Collaboration (SCC) could provide a seamless link to order processing and logistics management in order prepare storage for Inbound, Goods Receipt and put-away to the facility.

SAP Ariba Supply Chain Collaboration (SCC) Feature and Functional provide seamless link to AR/RS

Below is list of feature and function which will benefit AR/RS

·       Automatic Inbound Deliver Creation

Supplier or Logistic Provider sent Advanced Shipment Notification (ASN) via Ariba Network, warehouse will know what and when goods will be delivered to warehouse as SAP Inbound Delivery automatically created by system through seamless integration

·      Shipping Label

Ariba enable supplier to print customer predefined customize label. A barcode label representing the unique handling unit can be printed and affixed to a carton of products or pallet. Example of shipping label is serial shipping container codes (SSCC), which commonly used for Goods Receipt scanning.

·       Advance Packaging with handling unit

The main goal of this feature is to support the packing of handling units in the ship notice. SAP Ariba Advanced Packaging helps reducing manual entry at Ship Notice creation.

Note: Handling Unit Management – A ‘handling unit’ essentially refers to any unit of packaging and the goods contained on or in it. Example materials and quantity contain within a pallet. Ariba support Multi-level Handing unit. (Also known as Nested HU)


SAP Ariba Supply Chain Collaboration (SCC) Purchase Order Collaboration Process Flow

The diagram below depicts the end-to-end flow of SAP Ariba Supply Chain Collaboration (SCC) Direct Purchase order (PO) collaboration process:

Handling Unit

The term HU (Handling Unit) is the goods packing information used in the ERP Logistics area being available for setting under Logistics General in SAP ERP implementation guide. Although it was firstly developed to simple packing in the delivery area it has developed, and then other functionalities have been made available like the inventory goods for packed stored material which is called HU managed storage location. The handling unit functionalities are found in the own HU transactions, delivery transactions, WM (Warehouse Management) and EWM (Extended Warehouse Management) transactions (there is also the packing proposal in the Inbound Delivery Order).


Nested HU.

SAP Ariba Supply Chain Collaboration Purchase Order Collaboration Process Flow

Please note that handling unit (HU) is optional feature for SAP Ariba Supply Chain Collaboration Purchase order collaboration process.

1.  Customer ordered 1 Pallets of material.  Purchase Order Sent to Ariba Network.

2.  Supplier performed order confirmation via portal.

3. Supplier create Advanced Shipping Notification via portal with Advanced Handling unit.

The handling unit automatically created base on predefined packing instruction.

4. Supplier print the shipping Label generated by SAP Ariba Supply Chain Collaboration and affix to packages/pallet prior to goods dispatch.

Note: The label above just for illustration, customer could customize according to their requirement

5. Inbound Delivery Automatically created in SAP ERP via proxy interface.

Inbound delivery document created automatically in SAP ERP reference to Advanced Shipping notification create in SAP ERP

Handling unit is created along with Inbound delivery

6. Customer could goods receipt the pallet via MIGO or scanner.


SAP Handling Unit Reference





SAP SAP Ariba Supply Chain Collaboration Reference

Advanced packaging with handling units