Most SAP Customers run Procure to Pay processes, be it for indirect or direct materials.
I observe that most customers face supply chain issues due to incorrectly material master settings. These settings heavily impact manual efforts on the Purchase Requisition (PR) to Purchase Order (PO) flow, but also on Safety Stock Levels ( and therefore Liquidity).
I want to show that focusing on 'Planned Delivery Times' on the Material master (MARC-PLIFZ) will have extremely positive effects, and all that is needed is SAP Process Insights.
For MRP driven materials several settings on the material master determine when a PR gets created, and for which suggested quantity based on a current 'Supply / Demand' situation present during the MRP run.
I want to put focus on direct materials, in particular Purchase Orders that were created as a result of an MRP run for materials with Procurement Type 'F' ( the German 1st character for 'Fremd' / 'External).
Below you see the logical flow of events.
The MRP run calculates Quantity and Date, iow, it suggests something like :
Order quantity X of material A on date D
I would like to elaborate a bit on how date D is calculated (simplified).