procurement sap structure
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Procurement Blueprint SummaryPresentation Material Creation Date: 6th November 2002 Process Area: Demand Fulfillment Blueprint Document ID and Repository: H1698-EN 0.1, (Factory), H1699 EN 0.1 (Hub) Code DocMan
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Procurement Blueprint in the NET Delivery Process Operational Model
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Purpose and Scope of Procurement Blueprints (Factory, Hub) Purpose Purpose of this document is to describe global Materials Call-off processes, transactions and organisational responsibilities in executing and controlling the procurement Scope Scope is limited to handling of procurement activities related to making call-offs i.e. in others words ordering. The ordering from external sources as well as from internal sources (hub-plant, hub-hub, etc.) are in scope
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Content of the presentation This presentation will describe Hub Procurement BP summary with reference to Factory Procurement BP Examples (process flows) are from Hub BP, except DND process which is only valid in Factory Procurement related master data is similar in both BPs, depending on the delivery process
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Master Data creation process
M a i n ta i n M a te ri a l M a ste r, P u rch a si n g vi e w, M RP 1 -4 vi e ws M a te ri a l i n fo
Yes Is ve n d o r co d e fo r th e m a te ri a l su p p l i e r o p e n e d fo r a p l a n t? No M a i n ta i n V e n d o r M a ste r, P u rch a si n g vi e w, P a rtn e r fu n cti o n s Supp lier i n fo M a i n ta i n In fo re co rd (sta n d a rd , su b co n tra cti n g , co n si g n m e n t) In fo re co rd i n fo M a i n ta i n Co n tra ct o r S ch e d u l i n g A g re e m e n t S e ch e d u l i n g A g re e m e n t o r Co n tra ct i n fo
M A T E RIA L P L A NNE R
M a i n ta i n S o u rce L i st S o u rce i n fo
M a i n ta i n Qu o ta A rra n g e m e n t
M a i n ta i n P ro cu re m e n t m e th o d P ro cu re m e n t m e th o d i n fo
Q u o ta a rra n g e m e n t i n fo
E X T E RNA L P RO CE SS
G l o b a l M a te ri a l M a ste r a n d B O M Da ta M a i n te n a n ce
Ne w V e n d o r Cre a ti o n
IM S Y S T E M S A P R/3
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Master Data Maintenance Material information [Material Master] Vendor information [Vendor Master] Material - Vendor [Info Record] Contracts [Contract tai Scheduling Agreement] Source of supply [Source List] Percentage split between Material - Vendors [Quota Arrangement] (Procurement Method)->is needed in order to run DV report
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
NMI from Supplier to Hub with PON MI from S up plier to H U B w ith P urch ase Order
Ord e red m a teri a l wi th d o cu m e n ta ti on De l i ve ry In fo Re ce i ve a n d che ck De m a n d V i si b i l i ty Bo o k T ra n sp o rtati o n a n d se n d g o o d s a n d DA to HUB Co n f. i n fo De l i ve ry In fo
SUPP L IER
Re ce i ve a n d con fi rm Pu rch a se Ord e r
DV In fo Cre a te an d Se n d De m a n d V i si b i l i ty Re p o rt Pu r. re q . Assig n e d Pu r.re q .
PO Ch e ck p ossi b l e ch a n ge s i n d e m a nd a fter M RP ru n
BUYE R
Assig n Pu rch a se re q ui si ti on s
Cre a te an d sen d p u rch ase ord e r
Re ce i ve a n d e n te r co n fi rm a ti o n d a ta
Co n f. i n fo (Di sp atch A d vi ce ) HUB E XE CUT ION (Go o ds Re ce i vi n g ) HUB E XE CUT ION
EX T E RNAL BL UEP RINT DV i n fo b a se d o n M RP M RP Re su l ts
GR i n form a ti o n
NO KIA S AP R/3 IM SYS T E M
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
NMI from Supplier to Hub (PO or SA) NMI with Purchase Order is a basic procurement process in which short term forecast (Demand Visibility) report and call-offs (Purchase Orders) are sent separately. Purchase order confirmation can be used in this process. In this process Buyer needs to monitor possible changes in demand in order to react possible changes in form of cancelled or changed purchase orders In NMI process with Scheduling Agreement (SA), call-off and Demand Visibility information is sent to supplier using Demand Visibility report i.e separate Purchase Orders are not sent to supplier. To prevent the fluctuation of call-off figures the lines can be "frozen" for a certain time period. This restrains MRP to change the call-off quantities within the freezed time frame. In this process order confirmations are not used Same processes are also valid in factory BP (NMI from supplier to factory, PO or SA in use)
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
SMI from Supplier to Hub (SA)S MI fro m S u p p lie r to H U B w ith S c h e d u lin g Ag re e m e n t
De m a n d i n f. Re ce i ve a n d ch e ck De m a n d Vi si b i l i ty S UP PL IE R S ch e d u l e re p l e n i sh m e n ts
Di sp a tch A d vi ce B o o k T ra n sp o rta ti o n , se n d g o o d s a n d DA to HUB De l i ve ry i n f. M a te ri a l s wi th d o cu m e n ta ti o n Re ce i ve i n fo rm a ti o n o f g o o d s re ce i vi n g
DV In f. B UY ER Cre a te a n d Se n d De m a n d Vi si b i l i ty Re p o rt
Co n su p ti o n i n f. Cre a te a n d se n d Co n su m p ti o n Re p o rt
E X T ERNA L B L UE P RINT DV i n fo b a se d o n M RP (S A ) Co n su p ti o n i n f.
(Di sp a tch A d vi ce ) HUB E X ECUT IO N
(G o o d s Re ce i vi n g ) HUB E X ECUT IO N
G R i n fo
No ki a S A P R/3 IM S Y S T EM
Re c. A d vi ce
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
SMI from Supplier to Hub (SA) In SMI-process call-offs or purchase orders are not sent, because supplier is responsible for keeping stock level between minimun and maximum quantity. To be able to schedule replenishments Nokia is sending to supplier Demand Visibility report with stock information. Additionally a Consumption Report is provided to supplier according to agreement. Self-billing prosess is used instead of invoices Scheduling agreement is maintained for goods receiving purposes Same process is valid also in factory BP (SMI from supplier to factory, SA in use)
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Direct Customer Delivery from supplier to CustomFORWA RDING COM P ANY
CUS T OM E R
P l a ce a n o rd e r
Cu sto m e r O rd e r
P u rch a se Ord e r i n fo S UP P L IER Re ce i ve a n d co n fi rm P u rch a se Ord e r Co n fi rm a ti o n i n fo P i ck a n d Pa ck o rd e re d g o o d s
P i cki n g a n d p a cki n g i n fo
In fo rm No ki a th a t g o o d s a re re a d y fo r p i ck-u p Di sp a tch Ad vi ce (DA )
P u rch a se o rd e r B UY E R/ L O GIS T ICS COORDINA T OR M o n i to r a n d A ssi n g P u rch a se re q u i si ti o n s A ssi g n e d P u r. Re q . Cre a te a n d se n d p u rch a se o rd e r Re ce i ve a n d e n te r co n fi rm a ti o n d a ta Co n fi rm a ti o n i n fo
P u rch a se Ord e r i n fo
P u rch a se Re q u i si ti o n i n fo E XT E RNA L B L UE P RINT (P RO CE S S) Cu sto m e r De l i ve ry fro m S u p p l i e r i n cl u d i n g Co n so l i d a ti o n fo r In te ri m P h a se
S a l e s O rd e r p ro ce ssi n g
S a l e s O rd e r i n fo
NOK IA IM S Y S T E M
P u rch a se Re q u i si ti o n s b a se d o n SO S AP R/3
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Direct Customer Delivery from supplier to Customer Direct Customer Delivery (DCD) is a process, where Purchase Orders are placed from Nokia according to received customer orders (Sales Orders) to external sources of supply and delivery is done directly to delivery address specified by the customer. Materials are not stocked at LSP's premises i.e. they are not going through the HUB, but delivered directly from supplier to customer or project in MLS country Not valid process in factory BP (from supplier to factory)
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Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Sales order driven execution from supplier to HuSale s Orde r Driv e n Puchasing from Supplie r to HUB
De l i ve ry i n f. B o o k T ra n sp o rta ti o n a n d se n d g o o d s, DA to HUB
O rd e re d m a te ri a l wi th d o cu m e n ta ti o n
S UP P L IE R
Re ce i ve a n d co n fi rm P u rch a se O rd e r
Co n f. i n fo
De l i ve ry i n f.
PO A ssi g n e d P u r.re q . Re ce i ve a n d e n te r co n fi rm a ti o n d a ta o n PO co n f, i n f P u r. Re q . i n f. b a se d o n SO E X T E RNA L B L UE P RINT S a l e s o rd e r han dling
B UY E R
A ssi n g P u rch a se re q u i si ti o n s
Cre a te a n d se n d p u rch a se o rd e r
(Di sp a tch A d vi ce ) HUB E X E CUT IO N
(G o o d s Re ce i vi n g ) HUB E X E CUT IO N GR i n fo rm a ti o n
NO K IA S A P R/3 IM S Y S T E M
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Sales order driven execution from supplier to Hub Sales Order (SO) driven procurement is a process for nonstockable materials, which are only purchased against Customer Order and delivered to HUB for consolidation Not valid process in factory BP (from supplier to factory)
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Direct Nokia delivery from supplier to factorD ire c t N o k ia D e liv e ry fro m S u p p lie r to F a c to ry
SUP PL IER
Re ce i ve a n d ch e ck De m a n d Vi si b i l i ty
Re ce i ve De l i ve ry Re q u e st
Bo o k T ran sp orta ti o n a n d se n d g o od s to No ki a fa cto ry O rde re d m a te ri a l wi th d o cu m e n ta ti o n De l i ve ry re q u e st
PRO DUCT IO N PERSO N IN NO KIA FACT ORY
DV i n fo
T ri g g e ri n g o f d e l i ve ry re q u e st ?
Vi su a l co ntro l M o n i to r L i n e Sto ck
Is Re p l e n i sm e n t needed?
Ye s Cre a te d e l i ve ry re q u e st
De l i ve ry re q u e st
Se n d De l i ve ry re q u e st
Au to m a ti c co ntro l
No
BUY ER
Cre a te a n d Se n d De m a n d Vi si b i l i ty Re p o rt
EXT ERNA L BL UE PRINT
Wa re h o use
M RP Re su l ts
GR i n fo rm a ti o n
NO KIA SA P R/3 IM SYS T EM
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Direct Nokia delivery from supplier to factory In DND-process material is delivered through Nokia warehouse directly to production line buffer. DND-process is not always based on MRP-run. Call-offs are done using Delivery Requests, which are generated by the system automatically (stock requirement batch run) or manually by production persons. Scheduling Agreement is needed for Demand Visibility and Goods Receiving purposes. Not valid process in Hub BP (from supplier to Hub)
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Special cases in Hub/Factory BPs Hub BP: HUB-to-HUB/Factory with Stock Transport Orders Bundle procurement Service procurement Intercompany procurement Factory BP: Subcontracting procurement Bulk procurement (Bulk Material process covers low-valuematerials, which are not in MRP-run and not necessarily in production BOM, but are still needed in manufacturing of finished goods ) Consumable Goods Purchasing (In Consumable Goods Purchasing process Purchase Orders are assigned to cost center via account assignment. Goods purchased using this process are not included in MRP-run and demand is not in the system)
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Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Responsible Organization in the Procurement Blueprint Direct DO/MEX procurement (person responsible for purchasing) DO/Plant procurement (person responsible for purchasing) DO/GEO procurement (person responsible for purchasing) Indirect: Warehouse operations
Goods receipt and warehousing
FSP supplier invoice verification Demand Visibility to supplier
DV report is a general tool for providing information to suppliers about short term (up to 4 months) forecast and call-offs, DV is just a tool that combines forecast and call-off information on one report
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Integration Points to other Blueprints Software delivery BP Direct Customer Delivery from supplier including consolidation in interim phase BP SNM order handling during interim phase BP Makkyla miniplant BP Global return processes BP Inbound return processes BP Global material master and BOM data maintenance Sales availability management BP Karaportti ship Local Supply planning concept Karaportti make Warehousing BP Country of origin BP Export local clearance BP Import local clearance BP Import intrastat BP Hub execution BP Transportation area BP Proto production BP
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NOKIA
Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala
Frequently asked questions In which processes MRP run is used? in NMI and SMI, in DND if re-order point or production order in use in consolidation (SODE) and DCD cases demand is based on Sales Order What is self-billing? Self billing process is used in SMI process, because the invoice is based on material consumption report Who is responsible for new vendor number creation in R/3? FSP has the responsibility of providing the vendor number to Sourcing/procurement Sourcing/procurement will create purchasing view in vendor master20 NOKIA Procurement Blueprint Summary / 6th November 2002 / Heli Kekkonen & Leila Herrala