SAP logistics to manage complex supply chains

Logistics affects all sectors of the economy and is more important than ever in a globalized world with many players. Almost half of the logistical services fall back on the movement of goods, while the other half goes back to control and planning. It is all the more important to maintain an overview of the complex processes in the supply chain and to carry out processes efficiently. With the all-in-one software solution SAP Logistics, these goals can be easily achieved with low costs at the same time.

What is SAP Logistics?

SAP Logistics is one Complete solution for managing the supply chain from companies. By implementing the complete solution, companies remain in control in the complicated economic world with increasingly complex supply chains. SAP Logistics optimizes all logistics processes within an organization.

With the intuitive software companies keep track: Production planning, material flow, warehouse management, transport between producers and customers as well as business processes are covered by the various SAP logistics modules.

What advantages does SAP logistics offer?

SAP Logistics is building one holistic supply chain management essential. With other logistics software solutions, the individual programs may not be compatible with one another, meaning that data sets cannot be exchanged between the different applications. Here it is great advantage of SAP logistics: With its different modules, managing every step in supply chain management is a breeze. In addition, all components of the entire software suite are compatible with each other, so that all types of data are always up-to-date and can be read by the various modules.

The different modules of SAP logistics

In the following we present the various SAP logistics modules:

SAP SRM (Supplier Relationship Management) – make business processes clearer

This module optimizes business processes – from procurement to payment. SAP SRM supports companies in the processes of procure-to-pay, catalog management, supplier management and supplier selection. By automating the processes, the module enables Simplification of the individual work steps. Since SRM is based on the SAP NetWeaver Application Server, the program can be accessed from different operating systems. The module not only ensures cooperation between two companies, but also helps improve long-term customer relationships.

SAP MM (Material Management) – plan and control material movements

SAP MM maps the complete material flow. The module enables Management of logistic master data such as material numbers, batches and serial numbers and the planning and control of all material movements – internally and externally. SAP MM maps the complete procurement processes for materials and services in the areas of purchasing, determination of the source of supply and logistical invoice verification. The use of MM ensures that there are no material shortages in the warehouse and that a smooth workflow is ensured. The module thus ensures a great process securitysince orders are displayed in a traceable manner up until delivery.

SAP WM (Warehouse Management) – manage complex warehouses

With SAP WM, companies keep the Overview of the storage of goods. The module is particularly suitable for managing complex warehouses. The core functions include the mapping of incoming and outgoing goods, inventory management, relocation and inventory. Thanks to these functions, it is avoided that there are missing quantities during picking. The warehouse management is individually adjustable and works with different delivery principles, e.g. B. FIFO (First In, First Out) or LIFO (Last In, First Out). WM also allows to monitor best before dates. This is a great advantage, especially for perishable goods. The WM module will be supported by SAP until 2025. Existing customers can keep some of their WM implementations with SAP S/4HANA Stock Room Management or have to switch to SAP EWM.

SAP EWM (Extended Warehouse Management) – optimize and automate warehouse processes

SAP EWM offers an extended range of functions and is Part of a holistic supply chain management. EWM is particularly suitable for warehouses with high volumes and is particularly flexible. Thanks to its good scalability, however, EWM is in principle suitable for all types of warehouses. SAP EWM helps with the Optimization and automation of warehouse processes and can be connected to mobile devices. In contrast to SAP WM, EWM is still being actively developed by SAP and will be supported beyond 2025. EWM is therefore the right choice for a future-proof overview of the storage of goods.

aATP (advanced Available To Promise) – Avoid bottlenecks

aATP helps companies process fulfillment requests. SAP aATP determines when and in what quantities a product is available. In addition, aATP ensures that Products are prioritized for specific customers and thus automatically avoids bottlenecks. In addition, aATP can determine alternatives if an order is not available on a desired date or in the desired quantity. Material availability can be checked with backorder processing if the procurement situation has changed, for example if the customer cancels the order.

SAP PP (Production Planning) – plan production activities

With SAP PP companies organize production planning, sale and distribution of goods. This module is particularly useful for bottleneck resources. Master data can be entered in PP, which companies use to manage material requirements planning, parts lists and capacity planning. These are saved and edited in a master data table. All information from other modules flows together in PP – qualitative master data management (to the blog post) is therefore particularly important in order to avoid errors in production planning. SAP PP is broken down into different modules to cover different business areas.

• SAP PP-PI (Process Industries) is used for the chemical industry and for the food industry.
• SAP PP-REM (Repetitive Manufacturing) is used for production planning for companies that use series and flow production. This sub-module is often used in the automotive industry.
• SAP PP-SFC (Shop Floor Control SFC) brings manufacturing and production planning together. SFC is used for processes that require frequent retrieval and relocation.

SAP TM (Transportation Management) – optimize costs

SAP TM is for them management of transport streams responsible between producers and customers. This is where companies administer order management, transport planning and traceability. SAP TM helps to optimize costs through strategic purchasing and the consolidation of freight units. TM’s route finding, which is calculated on the basis of various factors, supports the efficient transport planning. The route determination also shows the time required, as TM takes the mode of transport of the route into account. The module ultimately ensures punctual delivery of goods.

Conclusion

With the implementation of the SAP logistics modules, you enable more efficient work in your company. The software solution takes care of that maximum transparency in every part of your supply chain and allows you to easily monitor all logistics processes so that you are informed of changes in real time. By handling all tasks more efficiently, you secure a decisive competitive advantage in a competitive market also save costs.

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