sap logistics execution system.pdf

SAP Logistics Execution System


Powerful, integrated support for your warehouse and transportation

management processes

Coordinating the many different tasks, people and technical resources

associated with running a warehouse and transporting goods has never

been simple. Yet warehouse and transportation processes are a vital part

of the supply chain, and essential to creating a responsive and efficient

business organization. In recent years, the pressure and complexity of the

tasks involved have been increasing at a rapid pace: globalization,

mergers, fiercely competitive markets, an ever greater emphasis on

customer service, and the emergence of new technologies such as the

Web.

Against this background, you need to streamline your operations, drive

down costs and make the most of opportunities for additional revenue.

You need instant access to accurate figures on current inventories, the

arrival of deliveries and the availability of resources such as trucks and

storage space. And you need to make the most of technologies such as

radio frequency devices, the Internet and the Global Positioning System

(GPS).


Powerful, integrated support for your warehouse and transportation management processes

In other words, you require an IT environment that helps you build and maintain highly efficient end-to-end processes spanning all aspects of your warehouse and transportation operations, from your supplier or production plant via your forwarding agent to your endcustomer and from your forklift driver via your warehouse administrator toyour financial controller. An integrated environment that enables you to plan and monitor activities with pinpoint precision, provides customers with instant answers to their questions, and identifies ways of improving profitability. There is now a solution available that offers you the integration, performance and flexibility required to turn this vision into reality ñ The SAP Logistics Execution System.

The SAP Logistics Execution System is part of SAPís unique Supply Chain Management initiative, and helps you forge strong yet flexible links between the processes of production, procurement, storage, distribution, transportation, sales and service. It helps keep customers happy, staff productive and decision-makers informed. It means functionality tailored to your precise needs in warehouses and distribution centers, in load control centers and transportation planning offices, in customer service and accounting. And it means real-time data for decision-making,simulation and planning.


Comprehensive, user-friendly, future-proof

Now there is an integrated, futureproof answer to the challenges of

warehouse and transportation management: the SAP Logistics Execution

System (SAP LES).

SAP LES is much more than just powerful functionality - it is a

comprehensive, user-friendly solution that guarantees free flow of

information, efficient end-to-end processes and productive use of new

technologies. And it is backed by the services and support of the world

leader in enterprise solutions technology, SAP.

From the world leader in enterprise software

The SAP Logistics Execution System benefitsfrom SAPís expertise in

robust client-server software, exemplified by the success of R/3, and from

SAPís awareness of the real-world needs of diverse companies in many

industries.


Build time-saving bridges to other business processes

A key advantage of the SAP LES over stand-alone applications is the

ease with which it links up with other processes, such as production

planning, purchasing, sales and financials and controlling, even data

warehousing tools such as SAP Business Information Warehouse. It is

inherently open - to SAP and non-SAP Enterprise Resource Planning

(ERP) systems. At the same time, the close technological relationship

between the SAP Logistics Execution System and R/3 lendsitself to the

creation of an environment that goes far beyond warehouse and

transportation management. By bridging the gaps between individual

functions and processes, you can significantly increase efficiency and

productivity throughout your enterprise.


Greater flexibility, efficiency and transparency

Support for all users, from forklift driver to warehouse/ transportation

manager to executive decision-makers

Seamless integration with ERP systems (both SAP and non-SAP) and

with planning and optimization applications

Optimize the flow of goods and information across your enterprise

Achieve a competitive advantage through excellent customer service and

cost-effective processes

Combine warehouse and transportation management processes for

greater efficiency and transparency


Software, support, service

The SAP Logistics Execution System offers you powerful functionality

tailored to the tasks of warehouse and transportation management, and it

offers much, much more besides. It notonly supports individual parts of

your business operations, it supports entire processes from end to end.

Within a single environment, you can execute orders with suppliers or

production plants, plan for the arrival of goods, for their correct storage,

rapid further distribution and delivery of the right quantity and quality to

the customer.

The SAP Logistics Execution System helps you manage your human

resources, warehouse, plant and equipment, and your financial assets. It

allows you to exchange data with customers and suppliers, to place

applications on the Web, and to integrate legacy or third-party

applications. It is a holistic solution, and one which can be geared

precisely to your processes, to your operations, and to your strategic

goals. Moreover, it is a solution that can grow with your changing

requirements, and with the emergence of new technologies ñ backed by

the global service, support and development resources of SAP.

Warehouse Management System


Effective support for inbound processes

Inbound processes are of increasing significance when it comes to ensuring smooth-running, costeffective logistics. The SAP Logistics Execution System includes powerful functionality for inbound processes, keeping you fully in the picture with regard to incoming materials and helping you to avoid costly mix-ups and mistakes. It supports the efficient management and monitoring of orders placed with suppliers, including the planning and scheduling of pick-ups, and the receipt of deliveries. SAP LES helps you to rapidly identify incoming goods, and the corresponding purchase order or Advanced Shipping Notification (ASN). It is also possible to streamline goods receipt using information on pallets provided by suppliers. There are also time-saving links to quality management processes, with automatic prompting of appropriate quality control measures. SAP LES also helps streamline the receipt process by assigning gates, doors and time slots for incoming trucks.

Once goods have arrived, you can accurately implement the putaway strategy that suits your organization. You can, for example, opt for the next empty bin, a fixed bin, or for bulk storage. You can apply differing strategies for fast and slow-moving goods, and optimize the storage location in accordance with the next picking cycle. You can also deal with hazardous goods, e.g. by assigning materials and bins to hazardous materials classes, and by placing incoming hazmats in the appropriate storage area.


Accurate storage and facility management

The SAP Logistics Execution System allows you to achieve an

unparalleled degree of transparency and flexibility in storage

management. Functions can be tailored to your precise warehouse

configuration, and you can model very simple or even extremely complex

warehouses with great accuracy. You can organize storage bins randomly

or employ fixed-bin assignment. It is also possible to manage batches, for

instance selecting the appropriate batch for a specific production process

or based on expiration date. You can also differentiate between types of

stock, for instance vendor consignment stock, your own stock, stock that

is unrestricted or in quality control. There is no need for specific activities

on the part of warehouse personnel; the system keeps track and selects

the right stock for you.


Physical inventory control

With the SAP Logistics Execution System, you can manage stock

belonging to many different companies (using company codes), from or to

diverse production plants and held at various storage locations. You can

view stock from a variety of angles, including overviews, lists of stocks in

particular bins or of stock belonging to specific organizational units. The

SAP Logistics Execution System provides rich functionality for many

aspects of physical inventory control, including cycle counting, empty-bin

checks during picking, full counts, and support for all the major physical

inventory methods. Adjustments for discrepancies in bins, with

simultaneous and therefore consistent changes to inventory management,

can be made with ease.


Rich functionality for outbound processes

For outbound processes, you can select sales orders, stock transfer

orders or production orders due for delivery with point-and-click simplicity.

Sales orders for the same ship-to party can be combined to optimize

delivery or large orders can be split. These tasks are performed

automatically for you in background mode, or, should you prefer,

manually.

The SAP Logistics Execution System also helps you carry out the

necessary checks on outbound goods. You can perform ATP checks, or

verify requirements have been fulfilled for foreign trade, i.e. to ensure the

existence of a letter of credit. You can also carry out credit limit checks to

find out about a customerís credit history well before the goods are

delivered.

It is possible to optimize the picking process by using wave-based picking,

creating work packages that correspond to warehouse capacity. Further

capabilities include two-step picking for greater efficiency when preparing

deliveries for diverse customers and cross-docking for rapid transfer to

the staging area.


Rich functionality for outbound processes

The SAP Logistics Execution System allows you to define sophisticated rules for packing, and to automate the packing process itself. You can set limits on volume and weights, preventing potentially expensive mistakes being made. When it comes to actually loading the goods, the synchronization links provided by the SAP Logistics Execution System between transportation and warehouse management processes mean tangible benefits. You can be sure of loading the right goods onto the right truck at the right time. You can create shipping documentation, such as delivery notes or bills of lading, and send an ASN to your customer.

Value-added services

In todayís fiercely competitive environment, value-added services are essential to profitability and customer satisfaction. Support is provided for a variety of such services, including special types of packaging, customized or one-time labeling. The SAP Logistics Execution System also equips you for the particular needs of hazardous materials, e.g. allowing you to include prescribed specifications in printed shipping documents.


Planning and monitoring

SAP LES gives the warehouse supervisor na overview of the expected

workload and the capacities at the earliest possible point in time. This

allows him to reschedule staff assignment or to hire temporary staff. The

warehouse alert monitor gives due warning of processes that have not

been finished on time or that are still incomplete. Using this tool, the

supervisor can drill down to the process itself and analyze the situation in

detail and then initiate the right response. In fact, the SAP Logistics

Execution System includes extensive reporting and analysis capabilities.

Decision-makers can use standard reports or trigger ad hoc queries.

Many types of analysis are supported, from ABC analysis of warehouse

movements to overviews of delivered goods per region, etc.


Warehouse technology

Stand-alone component

The SAP Logistics Execution System is not tied to an SAP environment, and

can be operated as a stand-alone component for distribution centers, if

neccessary.

Support for new technology as it emerges

SAP has developed, and continues to develop, support for the latest and best in

warehouse technology, as and when it emerges. This now includes direct radio

frequency capabilities, enabling your workforce to capture data on-thespot for

greater accuracy and productivity. The Warehouse Management System also

has certified interfaces for time-saving data exchange with warehouse

equipment such as automatic storage and retrieval systems (ASRS), pick-to-

light systems and other state-of-the-art technologies.

Transportation Management System


Conceito

The SAP Logistics Execution System helps you manage multi-modal

shipments with ease and effectiveness. It treats transport as an integral

part of your supply chain, and allows you to optimize transportation plans

and execute all transport moves. You can optimize the utilization of

resources and keep a close eye on costs and profitability.

Integrated shipment scheduling and routing

With the SAP Logistics Execution System, you can create schedule and

route plans with great speed and accuracy. These allow you to provide a

reliable service to your customers, and ensure you make the most

economical, most profitable use of available transportation resources. You

can plan shipments manually or automatically using rule-based selection

and definition of shipments. You can also incorporate shipment

optimization software from SAP partners using open interfaces.


Routing

By means of user-friendly point-and-click functions, you can specify the

preferred mode of transport, such as by rail or by truck. You can even

specify the preferred service agent for each and every stage of

transportation, and determine the right transportation route for each

shipment.

Tendering/communications with service agents

The SAP Logistics Execution System is based on a rich pool of master

data on all key aspects of your business process, such as partners and

resources. With this solid information platform in place, you can, for

instance, confidently assign the right carrier to the right shipment, and

determine the right route for that shipment.

SAP has consistently been at the leading edge of communications

technology, and already allows you to capture and transfer data through

timesaving methods such as EDI and the Internet. You can web-enable

practically any aspect of your solution, for instance to allow carriers to

enter data on delivery dates, or to obtain further information on orders.


Shipment processing support

You can check the status of shipments at any time, and take immediate

action when and where itís required ñ thanks to the integrated nature of

SAP LES functionality. This ranges from check-in at the gate, to unloading

and loading activities at the dock, to check-out at departure.

Shipment tracking

SAP LES keeps you fully informed of the current status of transportation,

allowing you to respond to customer inquiries and to spot problems or

delays before they become acute. SAP is also developing support for

GPS-based tracking to give you the precise location of trucks and ships

down to a matter of yards.


Available to promise

As part of its SCM initiative, SAP has developed a powerful available-to-

promise component. This functionality has been incorporated into the

SAP Logistics Execution System, so you can identify whether and by what

means you can fulfil your customersí preferred delivery dates. You can

see whether you can meet customer needs using existing inventories, or

whether you will need to make additional purchases or issue production

orders.

Foreign Trade

The SAP Logistics Execution System includes full support for cross-

border activities, allowing automatic printout of essential documents, such

as shipping papers, bills of lading, manifest documents and even bar-

coded labels. Moreover, as part of an R/3 environment, you can take

advantage of multi-lingual, multi-currency, multicompany support for all

processes. In addition, SAP LES enables you to exchange data with

customs authorities using the Automated Export System (AES).


Freight cost management

The SAP Logistics Execution System offers support for all aspects of

freight cost management. It allows comprehensive costing, automated

self-billing, and efficient settlement of payments for service agents. It is

closely linked to financial and controlling functions, ensuring that accounts

are correct and consistent. The system enables you enter and manage

freight tariffs, surcharges, discounts and the specific provisions of

individual freight agreements. The calculation of freight costs is flexible in

nature, and can be based on weight, volume, distance, mode of transport,

freight class, or even customer-specific agreements, etc. Calculation can

be made using one dimension (e.g. weight) or multiple dimensions (e.g.

distance and weight).

Features such as break-even weight calculations and identification of the

most competitive price for your customers ensure that you keep a healthy

bottom line. You can compare various types of freight and define

minimum freight values. You can also simulate freight charges from within

a sales order to give your customer immediate feedback on the likely cost,

and invoice your customer on the basis of actual rather than estimated

freight costs.


Transportation information network

The SAP Logistics Execution System provides a wide range of user-

friendly monitoring and reporting features. You can call up overviews with

point-and-click simplicity or delve into the details using breakdown

methods and other data manipulation techniques. You can compare

actual costs, delivery times and other parameters with your original plans,

and evaluate the performance of various links in your particular process

chain, such as individual service agents. You can also model your

transportation operations on easily comprehensible network diagrams.


Benefits of SAP’s industry-driven approach

SAP operates Industry Business Units (IBUs) dedicated to researching

the true needs of particular groups of customers, and developing the

corresponding software, services and support. SAP LES is not a one-size-

fits-all package, but a flexible solution that takes advantage of the input

from SAPís IBUs, development partners and customers. The result is a

wide range of industry specific functions that can be added to SAP LES in

accordance with your specific-industry, business processes and strategic

goals.

The SAP Logistics Execution System means greater efficiency

Optimize space utilization in your warehouse, increase productivity

through effective coordination of people and resources, schedule and

route transportation for low cost and high revenue, and minimize the

errors that so often plague pick-ups and deliveries.


The SAP Logistics Execution System means greater flexibility

It is a solution that can be geared to many different business scenarios,

and includes support for the involvement of third parties such as

forwarding agents. It can also be adapted on the fly according to new

customer requirements, changes in your business organization or the

emergence of innovative technologies.

The SAP Logistics Execution System means greater transparency

As a highly integrated, user-friendly environment, the SAP Logistics

Execution System provides an overview of all key activities, allows you to

track progress and positions of goods in transit, to monitor the status of

orders, and to act on the insight gained. It also provides links to other

business applications, and includes powerful analysis and reporting tools

for decision-makers.


Efficiency throughout your entire supply chain

The SAP Logistics Execution System is part of SAP’s SCM initiative,

providing powerful, state-ofthe-art support for the processes involved in

warehouse and transportation management. It is comprehensive,

integrated and open. It is easy to implement, and adapt. And it is also

much more than just software. It is a complete solution, backed by

carefully selected partners and the services and support of SAP, one of

the world leading IT players.

SAP LES is an independent component. It is fully integrated with the R/3

System via open standard interfaces.

sap logistics execution system.pdf

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