First-hand knowledge.

Reading Sample
In this sample chapter, you’ll learn how to prepare a third-party logistics (3PL) strategy
for your business. This chapter offers guidance for selecting and onboarding third-party
service providers based on your unique business objectives, growth plans, and customer
service culture. You’ll begin by determining your business needs for order fulfillment, sto-
rage, warehousing, distribution, transportation, and value-added services. Then, you’ll
assess the current state of your business and evaluate the future challenges you may en-
counter. The chapter will guide you through tips for creating a cross-functional team, finali-
zing the scope of services, assessing the IT landscape, and evaluating 3PL capabilities. Finally,
you’ll review integration options and see a sample use case for integrating SAP S/4HANA
with external 3PL warehouse management systems.

“Design and Implementation Criteria”

Contents

Index

The Authors

Gautam Bhattacharya, Mehfuze Ali Molla

Integrating Third-Party Logistics with

SAP S/4HANA
455 pages | 12/2023 | $99.95 | ISBN 978-1-4932-2446-3
www.sap-press.com/5717
 Chapter 2
2
Design and Implementation Criteria
The global business environment, with its constantly advancing technol-
ogy, evolving world markets, and greatly expanded supply chains,
makes it increasingly complex and demanding on supply chain profes-
sionals to make crucial decisions affecting profitability. With the global-
ization of the economy, challenges of providing seamless supply chain
solutions across geographical and cultural boundaries have increased
exponentially.

In the recent past, we’ve seen how natural calamities and global pandemics can quickly
disrupt established supply chains, compelling businesses to rethink their supply chain
strategies. In such a demanding situation, selecting the right third-party logistics ser-
vice provider can be a challenge. There is increased focus on business continuity plan-
ning, technology and automation, supplier diversity, and logistics service provider
reliability. After all, third-party logistics will be an integral part of the logistic process,
and its success will enhance brand reputation as well as customer satisfaction.
With all of this in mind, you need to consider your options carefully before committing
to a third-party logistics relationship. Third-party logistics must have proper align-
ment with your business objectives, growth plans, and customer service culture. This is
in view of the tenure of relationship specific to services such as third-party warehous-
ing contracts, which are generally executed on a long-term basis. Consider all selection
aspects carefully and thoroughly because it’s very difficult to disengage once third-
party logistics is onboarded. There should be mutual trust and respect between the
business and the logistics service provider, and third-party logistics service provider
should be expected to act as a solutions provider and a trusted adviser. They should
foster the culture of innovation in the supply chain process and ensure that your prod-
ucts are brought to market quicker and in a cost-effective way. To do so, they should
have complete visibility of your present and future fulfillment plans and needs.
Before embarking on plans to onboard a third-party logistics service provider, busi-
nesses should prepare a solid third-party logistics strategy to make sure that the cho-
sen third-party logistics service provider is the right fit for their business. Some of the
starting considerations are explained in following sections.

35
2 Design and Implementation Criteria 2.1 Determine Business Needs

2.1 Determine Business Needs 2.1.2 Storage and Warehousing

Inventory management and warehousing are important functions to control the cost 2
Each business has its own unique process-specific key performance indicators (KPIs)
of acquisition and holding. If stock is kept for long or if you have nonmoving stock,
and long-term objectives. Each process area that is relevant for outsourcing to third-
additional cost factors may crop up, such as holding, depreciation, spoilage, and so on.
party logistics may need to be scrutinized and detailed cost benefit analysis performed
For any third-party logistics partner, this is one area they want to streamline through
before any conclusion is reached in favor of outsourcing. The process areas impacted
automation, best practices, and innovations.
by such decision are detailed in the following sections.
Figure 2.2 depicts the common activities for third-party logistics under inventory man-
agement and warehouse management (WM).
2.1.1 Order Fulfillment
Figure 2.1 shows the sales and distribution-specific processes covered by logistics ser-
vice provider integration. Inventory Management Warehouse Management

Item Lookup Goods Receipt Transfer Order Bin Putaway

Manufacturer/ Products Products received Inventory/warehouse

shipper transported to thirdparty by third-party management
logistics warehouse logistics warehouse
Inventory Inventory Counts Bin Transfer Optimization
Adjustments Slotting and Cubing

Customer
orders sent to
third-party
logistics Picking and packing by Shipment to Order receipt by Labor and Resource Yard
third-party logistics per customer customer Management Management
the order

Figure 2.1 Third-Party Logistics Order Fulfillment Process

Warehouse Cockpit
and Analytics
To measure the performance of third-party logistics, businesses may consider follow-
ing KPIs for order fulfillment, which can be included as part of a Service-Level Agree-
ment (SLA) to monitor third-party logistics performance: Figure 2.2 Third-Party Logistics Inventory Management and Warehousing Function
쐍 Order accuracy
The shipment contains the right items and batches per sales order. Some of the KPIs are listed here:
쐍 On-time shipping 쐍 Inventory accuracy
Packages are shipped and delivered on time. This is the percentage of counted inventory against book inventory.
쐍 Shipment accuracy 쐍 Inbound receipt
Shipment is made to the correct destination or end customer. This refers to the time to move the inbound receipt items from the receiving dock to
쐍 Delivery time stock. More time means a shortage of stock for the outbound shipment, resulting in
Times are correct for order pickup from the warehouse or distribution center and for lost sales.
delivery to the end customer. 쐍 Inventory turnover
쐍 Delivery cost If the product sits in inventory for a longer period, it may incur the additional cost of
Indicator is used to contain cost, referring to the total cost of shipment divided by carrying as well as storage conditions and policies around storing the product.
the number of packages shipped. Of course, there is a subjectivity as there may be 쐍 Inventory carrying cost
high-value items delivered to customers in distant locations. These are the costs of storing and holding that inventory, which may include storage

36 37
2 Design and Implementation Criteria 2.1 Determine Business Needs

cost, handling, labor, insurance and taxes, transportation, loss or shrinkage, and 쐍 Tracking of goods
depreciation. Using GPS and Internet of Things (IoT) devices.
2
쐍 Intermodal transport
Other warehousing requirements that may determine the selection of third-party
logistics include the following: Arranging intermediate movement of goods between different methods of trans-
ports.
쐍 Public vs. contract warehouse
쐍 Freight forwarding
Contracted space may have certain benefits over public space due to the fact that the
Organizing and managing transportation by liaising with carrier companies, trans-
warehouse space is always available and sometimes comes along with better picking
port documentation, renting out space in a distribution fleet, and so on.
and packing facilities. Third-party logistics agencies may offer both, however, a cost-
benefit analysis may need to be performed before making such a decision. 쐍 Freight payment and accounting
Payment to carrier and relevant accounting
쐍 Specialty storage
Special storage conditions may be required for high-value perishable items such as 쐍 IT capabilities of third-party logistics
from the pharmaceutical and food industries. Not all third-party logistics service Use of transport management systems and ease of integration with your business.
providers have capacities such as cold storage, hazardous storage, wet bonded stor-
age, and so on.
Transportation Planning Transportation Visibility
Transportation Execution
쐍 Warehouse monitoring and audit and Optimization and Status Management
Third-party logistics service providers may have their own IT setup with warehouse
Load Freight Shipment
management systems (WMSs) for warehouse operations and monitoring. However, Consolidation Management/ Tracking
Freight and Trace
a careful consideration may be required to evaluate their capabilities to control,
Procurement
monitor, and audit warehouse activities for accurate receipts, distribution, and stock Load Planning Visibility and
and Scheduling Event
level management. Multimodal
Management
Transportation
Carrier
Selection
2.1.3 Distribution and Transportation Analytics

Many logistics service providers are asset-based and have their own fleet of transports.
However, for certain legs of shipment, such as ocean or air shipment or even for inter-
modal transports such as rail, they may have to depend on carriers for execution of Figure 2.3 Transport Management Functions
shipment. They may reserve space or act as a freight forwarder in such cases and have
payment liability to the carrier.
2.1.4 Value-Added Services
Logistics service providers may use their own SAP or non-SAP transport management
systems for planning, execution, and monitoring of transports. Figure 2.3 provides a Value-added services may be a key factor in selecting the right third-party logistics pro-
snapshot of transportation management features and functions. vider for your business. Common value-added services provided by third-party logis-
tics players are as follows:
Capabilities of third-party logistics providers may be assessed for distribution services;
some of these are listed here: 쐍 Packaging and assembly
Packaging the products in handling units per shipment specifications. Assembling
쐍 Distribution methods
the products when the transport of parts being assembled is convenient and
Drayage, customs brokerage, full container load (FCL), less than container load (LCL),
cheaper. Packaging also provides protection against damage and improves product
less than truckload (LTL), and truckload (TL).
appearance.
쐍 Fleet optimization
쐍 Kitting
Efficient delivery of goods based on artificial intelligence (AI) mapping and model-
Combining related products and putting them in one kit to be sold as a unit or SKU.
ing.

38 39
2 Design and Implementation Criteria 2.2 Assess Current State and Future Challenges

쐍 Customer returns/reverse logistics 2.2.1 Create a Cross-Functional Team for Regular Interactions
Inspecting, reworking for minor issues, or sending back customer returns to the To start with, businesses can choose a project team consisting of different supply chain
manufacturer for replacement. 2
functional areas. This team must be led by a third-party logistics project leader, prefer-
쐍 Export/import management ably a supply chain or logistics function lead. Selection of team members is critical
Ensuring transport documentation, compliance with international regulations, and because key teams need to be involved, such as the following:
cost-effective shipment of goods.
쐍 IT (for current IT landscape, cross-system integration, and management reporting
쐍 Cross-docking requirements)
Consolidating and deconsolidating goods.
쐍 Finance and costing (for evaluation of internal costs versus third-party logistics
There are other value-added services provided by different third-party logistics provid- implementation and running costs)
ers depending on the nature and extent of their operations. Figure 2.4 provides a 쐍 Shipping and warehousing
glimpse of the value-added services provided by third-party logistics. 쐍 Supply chain
쐍 Procurement
쐍 Sales and marketing
쐍 Customer service
Labelling
Kitting De-Kitting and 쐍 Quality
Barcoding

2.2.2 Finalize Scope of Services and Future Road Map

Customer Prepare a detailed list of services with key performance measures. Include a future road
Packaging
Returns/ map like you would for any planned scaling up or expansion in business. This may also
Sorting and
Reverse
Scrapping include assessing the customer base, market geography, and current strengths and
Logistics
weaknesses of the in-house logistical services (may be measured by a current set of
KPIs). Any need for local distribution centers or warehouses close to the customer base,
setting up warehouse/distribution center versus hiring warehouse services, and so on
Figure 2.4 Value-Added Service Options from Third-Party Logistics Service Providers can be major cost-saving factors. Another major aspect is distribution and transpor-
tation because most third-party logistics carriers are either asset-based or freight
Having understood the options provided by logistics service providers, it’s essential to forwarders, so they possess knowledge and expertise to deal with international regula-
understand the challenges presented by a typical third-party logistics implementation tions and sophisticated transport facilities.
initiative.

2.2.3 Assessment of the Current IT Landscape

2.2 Assess Current State and Future Challenges A detailed study and assessment is required of the current system’s effectiveness and
accessibility. The following set of data points may reflect the status:
A strategy is required for selecting a third-party logistics partner that is based on an as-
쐍 Age of the current system
sessment of business requirements, the current state of the business, and future busi-
ness objectives. The following section describes the various action points for an organi- 쐍 Current number of user licenses and limitations
zation or company contemplating outsourcing their logistics services to a third-party 쐍 Capability of the current system to adapt to business expansion and global reach
logistics partner and important techno-commercial attributes a third-party logistics 쐍 Connectivity to third-party or cloud-based systems
partner should be evaluated against for qualification. 쐍 Reporting and visibility into KPIs, financials, and processes

40 41
2 Design and Implementation Criteria 2.2 Assess Current State and Future Challenges

쐍 Visibility into the supply chain, including operations, production, order status, and your requirements. For example, your business may need intercontinental ship-
shipping ment of hazardous goods in a specific temperature condition. This may require
understanding of international regulations pertaining to hazardous goods along 2
This kind of study helps identify gaps in efficiencies and uncovers bottlenecks in pro-
with the means to transport such goods.
cesses and technology.
쐍 Management and culture
Third-party logistics partners should be able to employ best practices, support sus-
2.2.4 Evaluation of Third-Party Logistics Capabilities tainable processes, and be open to the culture of innovations in technology and
After due deliberation of all the preceding factors, it may boil down to the crucial and business trends.
most important step of evaluating possible third-party logistics partners for your busi-
ness. Following are a few pointers to selecting the right third-party logistics partner:
2.2.5 Integration Approach
쐍 Technological capabilities
A business may need to integrate one of multiple third-party logistics partners. Based
To boost supply chain visibility and keep track of all operations, a top-notch third-
on the situation, the following design factors may provide leads to the design of future
party logistics provider has access to a number of technical solutions, including
integration solutions:
cloud-based systems, for example, WMS, inventory management system, transport
쐍 Business case for selection of the probable third-party logistics partner
management system, and others. This increases efficiency by assisting logistics pro-
viders in obtaining real-time data and reducing supply chain faults. Businesses 쐍 The scope and cost of services
should ensure that the capabilities of the third-party logistics system are compatible 쐍 Geographical coverage in terms of location, proximity to customer base, accessibil-
with their automation and growth requirements. ity to nearest production or distribution centers, and so on
쐍 Scalability 쐍 Communication standards and protocols at third-party logistics
The imminent question is, can third-party logistics demonstrate proven reliability 쐍 Volume of data and key transactions to be handled
during unplanned spikes in business? The logistics service provider should be able
쐍 Technical landscape of the third-party logistics partner systems
to meet both your present needs and any future needs your company may have as it
쐍 Integration mechanism, for example, electronic data interchange (EDI)/IDoc, XML/
expands. Ideally, you should pick a third-party logistics services provider that has
IDoc or application programming interface (API), and so on
solid networks and can quickly handle more inventory to meet changing customer
demands. On the contrary, they may also need to scale down when demands are low, 쐍 Master data upload and synchronization requirements (vendor, customer, material,
while remaining equally cost efficient. and any other master data)

쐍 Financial health 쐍 Inventory reconciliation between the business and third-party logistics systems
Your ideal third-party logistics provider should have the financial stability to deal 쐍 System security considerations
with significant disruptions and be in a solid position to employ the best practices 쐍 System monitoring requirements, error handling, and escalation matrix
and take advantage of innovations that will protect and flourish your business.
쐍 Third-party logistics requirements documentation
쐍 Cost of service
쐍 Readiness of the third-party logistics provider for technical changes and availability
Before choosing a third-party logistics supplier, it’s vital to examine the prices and
services of each potential provider. Select a third-party logistics company that is Once the approach is finalized and approved, it may need a multidimensional or
within your budget without sacrificing service quality, as doing so could harm your techno-functional approach to realize the solution. The following sections highlight
company in the long term. A trustworthy third-party logistics partner is transparent some areas that require a dedicated effort to implement the solution.
in its pricing and level of service.
쐍 Expertise in business Mapping Key Business Processes
Ask providers if they have expertise in your business vertical. Some third-party Functional specification documents are prepared that contain detailed process maps in
logistics providers may have the right business expertise and capabilities to match key areas of order fulfillment, inventory management, WM, transportation, and other
related areas. Each of the functional specifications usually contains the following:

42 43
2 Design and Implementation Criteria 2.2 Assess Current State and Future Challenges

쐍 Business process flow/maps

SAP S/4HANA Integration with a Logistics Services Provider System
쐍 Assumptions and constraint Use Case: Inbound Delivery Processing
2
쐍 Sample maps from third-party logistics (XML, EDI, or any other format) SAP Process
Third-Party
Integration/SAP
SAP S/4HANA SAP IDoc
쐍 Data maps between IDoc fields and logistics service provider–specific maps Process Logistics
Orchestration
쐍 Data conversion requirements for specific fields of the transaction
Inbound Delivery
SHP_IBDLV_SAVE_
쐍 SAP HANA field value-specific limitations, changes, or alternatives to overcome Delivery
REPLICA01
EDI 940
those
쐍 Technical change requirements Inbound
SHP_IBDLV_CONFIRM
Delivery
Delivery
쐍 Basis requirements _DECENTRAL01
EDI 945
쐍 Security requirements
쐍 Data dependencies Figure 2.6 Inbound Delivery Processing Using a Third-Party Logistics WMS System

Use Case: SAP S/4HANA Integration with External Third-Party Logistics Warehouse
SAP S/4HANA Integration with Logistics Services Provider System Use Case:
Management Systems Outbound Delivery Processing
Some of the use cases for process mapping with third-party logistics systems you may SAP Process
Integration/SAP Third-Party
SAP S/4HANA SAP IDoc
consider include master data replication, inbound delivery processing, outbound Process Logistics
Orchestration
delivery processing, and stock category adjustments. Key master data may need to be
uploaded to the logistics service provider system for successful processing of transac- Outbound Delivery
SHP_OBDLV_SAVE
Delivery
tional IDocs (Figure 2.5). _REPLICA01
EDI 940

SAP S/4HANA Integration with Logistic Services Provider System Use Case: Outbound Post Goods Issue
SHP_OBDLV_CONFIRM
Master Data Replication Delivery
_DECENTRAL01
EDI 945
SAP Process
Integration/SAP Third-Party
SAP S/4HANA SAP IDoc
Process Logistics
Orchestration Figure 2.7 Outbound Delivery Processing Using a Third-Party Logistics WMS System

Customer Master DEBMAS Customer Any adjustments in stocks at the third-party logistics warehouse needs to be recorded
Vendor Master CREMAS Vendor to the SAP S/4HANA system immediately to keep the system stocks in sync at both
ends (Figure 2.8).
Material Master MATMAS Material/SKU

SAP S/4HANA Integration with a Logistics Service Provider System Use Case:
Figure 2.5 Master Data Replication to Third-Party Logistics Systems Stock Category Adjustments
SAP Process
Integration/SAP Third-Party
SAP S/4HANA SAP IDoc
Inbound delivery processing may involve delivery notifications to the logistics service Process Logistics
Orchestration
provider and, once the material is physically received, confirmation from the logistics
service provider regarding goods receipt (Figure 2.6). Post Goods MBR_CREATE_GOODS Inventory
Adjustments
Movement _MOVEMENT
Outbound delivery processing may involve delivery notifications to the logistics ser- EDI 947
vice provider and, once the material is physically issued and shipped to the customer,
confirmation from the logistics service provider regarding delivery confirmation Figure 2.8 Stock Category Adjustments in a Third-Party Logistics WMS System
(Figure 2.7).

44 45
2 Design and Implementation Criteria

2.2.6 Design System Landscape for Integration

System landscape design requirements are of vital importance and may need to be vet-
ted by technical experts from all relevant areas. A typical system landscape from third-
party logistics integration may look like the one in Figure 2.9.

Logistics Services Provider Integration: Technical

▪ Doc or API communication
▪ Asynchronous communication
▪
▪ Map translations
▪ Direct connectivity options
▪ VAN optional Value-Added
▪ Use of SAP Process Orchestration or Network
Cloud Integration OPTIONAL

SAP Process Orchestration

(with B2B ADD ON) Logistics Services
SAP S/4HANA Provider System
or
Cloud Integration (External)

Figure 2.9 Schematic System Landscape for Third-Party Logistics Integration

More details about connectivity options and system landscape can be found in Chap-
ter 10.

2.3 Summary
Implementing third-party logistics integration solutions requires a very meticulous
approach to carefully inspect and evaluate every detail of transactional field logics,
platform integration considerations, and the extent of technical changes the third-
party logistics partners are willing to accommodate. These factors may affect the tech-
nical design at your end, as well as increase the timeline of implementation.

46
Contents

Preface ....................................................................................................................................................... 15

1 Introduction to Third-Party Logistics 21

1.1 Supply Chain Integration ................................................................................................... 22

1.1.1 What Is Third-Party Logistics Integration? ..................................................... 22
1.1.2 Key Benefits and Features ................................................................................... 24
1.1.3 First-Party Logistics to Fifth-Party Logistics ................................................... 25
1.2 Business Case for Third-Party Logistics Integration ............................................... 27
1.2.1 Value Drivers ............................................................................................................ 27
1.2.2 Pros and Cons of Third-Party Logistics ............................................................ 28
1.3 Integrated Business Processes ......................................................................................... 29
1.3.1 Order-to-Cash .......................................................................................................... 30
1.3.2 Procure-to-Pay ......................................................................................................... 31
1.3.3 Inventory Management ....................................................................................... 32
1.4 Summary ................................................................................................................................... 33

2 Design and Implementation Criteria 35

2.1 Determine Business Needs ................................................................................................ 36

2.1.1 Order Fulfillment .................................................................................................... 36
2.1.2 Storage and Warehousing ................................................................................... 37
2.1.3 Distribution and Transportation ....................................................................... 38
2.1.4 Value-Added Services ............................................................................................ 39
2.2 Assess Current State and Future Challenges ............................................................. 40
2.2.1 Create a Cross-Functional Team for Regular Interactions ........................ 41
2.2.2 Finalize Scope of Services and Future Road Map ......................................... 41
2.2.3 Assessment of the Current IT Landscape ....................................................... 41
2.2.4 Evaluation of Third-Party Logistics Capabilities ........................................... 42
2.2.5 Integration Approach ............................................................................................ 43
2.2.6 Design System Landscape for Integration ..................................................... 46
2.3 Summary ................................................................................................................................... 46

7
Contents Contents

3 Organizational Entities and Master Data 47 5 Shipping and Delivery 125

3.1 Organizational Entities ....................................................................................................... 48 5.1 Shipping and Logistics Processes .................................................................................... 125
3.1.1 Purchasing Organization and Groups ............................................................. 48 5.2 Logistics Execution ................................................................................................................ 128
3.1.2 Sales Organization and Sales Area ................................................................... 52 5.2.1 Mapping Logistics Execution Processes .......................................................... 129
3.1.3 Plants, Storage Locations, and Shipping Points ........................................... 57 5.2.2 SAP ERP versus SAP S/4HANA ............................................................................ 130
3.2 Business Partners ................................................................................................................... 61 5.2.3 Logistics Execution Organization Structure .................................................. 130
3.2.1 Characteristics and Classification of Business Partners ............................ 61 5.2.4 Shipping-Specific Configurations ..................................................................... 132
3.2.2 Business Partner Identification ......................................................................... 64 5.2.5 Route Determination in Sales Order and Delivery ...................................... 138
3.2.3 Customer-Vendor Integration ........................................................................... 66 5.2.6 Inbound and Outbound Deliveries ................................................................... 145
5.2.7 Picking ........................................................................................................................ 152
3.3 Master Data ............................................................................................................................. 75
5.2.8 Incompletion Control for Deliveries ................................................................. 156
3.3.1 Material Master ...................................................................................................... 75
3.3.2 Procurement-Specific Master Data .................................................................. 77 5.3 Availability Check and Transfer of Requirements .................................................. 160
3.3.3 Sales-Specific Master Data .................................................................................. 78 5.3.1 Basic Criteria for Availability Check .................................................................. 161
3.3.4 Other Supply Chain-Relevant Master Data ................................................... 81 5.3.2 Configuration Steps for Availability Check .................................................... 163

3.4 Summary ................................................................................................................................... 86 5.4 Output Control in Shipping ............................................................................................... 170

5.4.1 Disabling Business Rule Framework Plus-Based Output
Management ........................................................................................................... 171
5.4.2 Customizing Output Determination in Shipping ........................................ 172
4 Packaging and Traceability 87 5.4.3 Message Control ..................................................................................................... 178
5.4.4 Automatic Inbound Delivery Creation during Two-Step Stock
4.1 Batch Management .............................................................................................................. 88 Transfers .................................................................................................................... 179
4.1.1 Benefits and Integration Points ......................................................................... 88
5.5 Summary ................................................................................................................................... 184
4.1.2 Define Batch Level and Batch Status Management ................................... 89
4.1.3 Specify Batch Management Default by Plant ............................................... 92
4.1.4 Batch Number and Assignments ...................................................................... 92
4.1.5 Creation of New Batches ..................................................................................... 94 6 Inventory Management and Reconciliations 185
4.1.6 Batch Valuation ...................................................................................................... 96
4.1.7 Batch Determination and Batch Check ........................................................... 97 6.1 Goods Movement .................................................................................................................. 186
4.1.8 Batch Where-Used List ......................................................................................... 104 6.1.1 Field Selection for Goods Movement ............................................................... 187
4.1.9 Shelf-Life Expiration Date .................................................................................... 106 6.1.2 Settings for Goods Movement (Transaction MIGO) ................................... 190
4.1.10 Batch Management in a Third-Party Logistics Scenario ............................ 108 6.1.3 Goods Issue and Transfer Postings ................................................................... 194
4.2 Handling Unit Management ............................................................................................ 108 6.1.4 Goods Receipt .......................................................................................................... 198
4.2.1 Overview .................................................................................................................... 108 6.1.5 Automatic Movements ......................................................................................... 203
4.2.2 Define Number Ranges for Handling Units ................................................... 111 6.2 Movement Types ................................................................................................................... 204
4.2.3 Settings for Packaging Materials ...................................................................... 115
6.3 Output Determination ........................................................................................................ 207
4.2.4 Handling Units with Extended Warehouse Management ....................... 121
6.3.1 Output Control in SAP S/4HANA ....................................................................... 207
4.3 Summary ................................................................................................................................... 123 6.3.2 Maintain Condition Tables .................................................................................. 209
6.3.3 Maintain Access Sequences ................................................................................ 210
6.3.4 Maintain Output Types ........................................................................................ 211
6.3.5 Maintain Output Determination Procedure ................................................. 211

8 9
Contents Contents

6.4 Inventory Reconciliation .................................................................................................... 212 9 Application Link Enabling and IDocs 305
6.5 Summary ................................................................................................................................... 215
9.1 IDoc Interface and Application Link Enabling ........................................................... 305
9.1.1 Logical Systems and Assignments .................................................................... 306
9.1.2 Target Systems for Remote Function Calls .................................................... 308
7 Warehousing 217
9.1.3 Remote Function Call Destinations for Method Calls ................................ 310
9.1.4 Distribution Model and Distributing Views .................................................. 312
7.1 Deployment Scenarios for Third-Party Logistics ..................................................... 218
9.2 IDoc Basics for Functional Consultants ........................................................................ 316
7.1.1 Warehouse Management Systems .................................................................. 218
9.2.1 Overview .................................................................................................................... 317
7.1.2 Extended Warehouse Management with SAP S/4HANA ......................... 225
9.2.2 IDoc Types and Segments .................................................................................... 317
7.2 System Landscapes ............................................................................................................... 230 9.2.3 IDoc Extension ......................................................................................................... 319
7.2.1 Embedded Extended Warehouse Management in SAP S/4HANA ........ 230 9.2.4 IDoc Structure .......................................................................................................... 320
7.2.2 Decentralized Extended Warehouse Management in 9.2.5 Message Type .......................................................................................................... 321
SAP S/4HANA ........................................................................................................... 231 9.2.6 Partner Profiles ........................................................................................................ 323
7.3 Integration between SAP S/4HANA and SAP Extended Warehouse 9.2.7 Ports ............................................................................................................................ 326
Management ........................................................................................................................... 233 9.2.8 Inbound and Outbound Processing ................................................................. 327
7.3.1 System Landscape Integration between SAP S/4HANA and 9.3 Technical Integration Features ........................................................................................ 330
SAP Extended Warehouse Management ....................................................... 233 9.3.1 Integration Strategy .............................................................................................. 330
7.3.2 Organizational Structure Integration .............................................................. 238 9.3.2 Electronic Data Interchange ............................................................................... 333
7.3.3 Business Process Integration .............................................................................. 247
9.4 Summary ................................................................................................................................... 342
7.4 Master Data in Extended Warehouse Management ............................................. 253

7.5 Summary ................................................................................................................................... 259

10 Direct Connectivity and Middleware 343

8 Transportation 261 10.1 Direct Connectivity Options ............................................................................................. 344

10.1.1 Synchronous versus Asynchronous Communication ................................. 344
8.1 Third-Party Logistics Providers and Transportation .............................................. 261 10.1.2 Connectors ................................................................................................................ 345
10.1.3 Remote Function Call/Web Service .................................................................. 352
8.2 Deployment Scenarios for Third-Party Logistics ..................................................... 263
10.1.4 Cloud Integration ................................................................................................... 365
8.2.1 Business Partners and Their Roles .................................................................... 263
8.2.2 Integration Options ............................................................................................... 266 10.2 Integration through SAP Middleware .......................................................................... 366
10.2.1 Overview of SAP Process Integration and SAP Process
8.3 Master Data and Organizational Structure ............................................................... 271
Orchestration ........................................................................................................... 367
8.3.1 Organizational Units in Embedded SAP Transportation
10.2.2 Integration Approach and Methodology ........................................................ 369
Management ........................................................................................................... 271
10.2.3 IDoc Interface/Application Link Enabling ....................................................... 378
8.3.2 Master Data in SAP Transportation Management ..................................... 274
10.2.4 Batch Processing Jobs ........................................................................................... 379
8.4 Basic Configuration Setups ............................................................................................... 277
10.3 Connection to a Business-to-Business/Electronic Data Interchange
8.4.1 Logistics Integration in SAP Transportation Management ...................... 277
Solution via Application Programming Interfaces ................................................. 379
8.4.2 Financial Processes in SAP Transportation Management ........................ 292
10.3.1 Logistics Service Provider-EDI Integration ..................................................... 381
8.5 Summary ................................................................................................................................... 303

10 11
Contents Contents

10.3.2 Application Programming Interface Management Using 12 Monitoring and Control 423
SAP Business Technology Platform .................................................................. 388
10.4 Summary ................................................................................................................................... 391 12.1 IDoc Monitoring and Dashboard .................................................................................... 423

12.2 SAP Application Interface Framework ......................................................................... 429

12.2.1 SAP Application Interface Framework: Monitoring Categories .............. 430
11 Business Rule Framework Plus 393 12.2.2 Monitoring and Error Handling ......................................................................... 431
12.2.3 Customizing SAP Application Interface Framework ................................... 433
12.2.4 SAP Application Interface Framework License in SAP S/4HANA ............ 434
11.1 Overview ................................................................................................................................... 394
12.3 Inventory Reports .................................................................................................................. 434
11.2 Business Rule Framework Plus User Interface .......................................................... 395
12.3.1 Inventory Analysis Overview (SAP Fiori App ID F3366) .............................. 434
11.3 Business Rule Framework Plus Applications ............................................................. 396
12.3.2 Inventory KPI Analysis (SAP Fiori App ID F3749) .......................................... 435
11.4 Business Rule Framework Plus Data Objects ............................................................ 399 12.3.3 Analyze Stock in Date Range (SAP Fiori App ID F6185) .............................. 437
11.4.1 Element ...................................................................................................................... 399 12.3.4 Dead Stock Analysis (SAP Fiori App ID F2899) .............................................. 437
11.4.2 Structure .................................................................................................................... 401 12.3.5 Inventory Turnover Analysis (SAP Fiori App ID F1956) ............................... 438
11.4.3 Table ........................................................................................................................... 402 12.3.6 Goods Movement Analysis (SAP Fiori App ID W0055) ............................... 439
12.3.7 Slow or Non-Moving Materials (SAP Fiori App ID F2137) ......................... 440
11.5 Expressions ............................................................................................................................... 403
12.3.8 Custom Inventory Reports ................................................................................... 441
11.5.1 Boolean Expression ................................................................................................ 404
11.5.2 Constant Expression .............................................................................................. 404 12.4 Summary ................................................................................................................................... 443
11.5.3 Formula Expression ............................................................................................... 405
11.5.4 Decision Table ......................................................................................................... 405
11.5.5 Function Call Expression ...................................................................................... 408
The Authors ............................................................................................................................................. 445
11.5.6 Procedure Call Expression ................................................................................... 408
Index .......................................................................................................................................................... 447
11.6 Actions ........................................................................................................................................ 408

11.7 Function ..................................................................................................................................... 410

11.7.1 Mode of Operation ................................................................................................. 411
11.7.2 Signature ................................................................................................................... 413
11.7.3 BRFplus Tools ........................................................................................................... 414
11.7.4 Assigned Ruleset ..................................................................................................... 415
11.7.5 Rules ............................................................................................................................ 416
11.8 Business Rule Framework Plus in Output Management ..................................... 417
11.8.1 SAP S/4HANA Output Control ............................................................................ 417
11.8.2 Limitations of SAP S/4HANA Output Management ................................... 419
11.9 Managing Custom Rules with Business Rule Framework Plus ......................... 421

11.10 Summary ................................................................................................................................... 422

12 13
Index

.NET program .......................................................... 351 Batch (Cont.)

where-used list .................................................. 104
A Batch determination .............................................. 97
access sequence ................................................... 99
ABAP ............................................. 346, 354, 355, 421 automatic ........................................................... 103
ABAP Data Dictionary (DDIC) ................ 400, 402 Batch management ......................................... 87, 88
ABAP web services ................................................ 359 default ..................................................................... 92
Access sequence .......................................... 175, 210 third-party logistics ........................................ 108
Account group .......................................................... 68 Batch status ............................................................... 89
Action ........................................................................ 408 Bill of lading ............................................................ 127
Advance billing ...................................................... 219 Boolean expression ............................................. 404
Allowed transportation mode ......................... 285 Business Application Programming
Analytical mode .................................................... 412 Interface (BAPI) ................................................ 346
Analyze Stock in Date Range app ................... 437 Business needs ......................................................... 36
ANSI ASC X12 .......................................................... 317 Business Object Processing
API ............................................................................... 379 Framework (BOPF) .......................................... 208
eDocument Framework ................................. 366 Business partner ................................... 61, 263, 275
management ..................................................... 388 customer/vendor link ....................................... 74
Application Link Enabling (ALE) .................... 180, entities .................................................................... 62
305, 378 identification ........................................................ 64
Assessing future challenges ................................ 40 number range and grouping ......................... 70
Asynchronous RFC (aRFC) ................................. 352 Business process area ......................................... 423
Automatic movement ........................................ 203 Business process integration ........................... 247
Availability check ........................................ 160, 161 Business Rule Framework plus
configuration ..................................................... 163 (BRFplus) .................................................... 208, 393
delivery item categories ................................ 167 applications ....................................................... 396
material master ................................................ 168 custom rules ...................................................... 421
scope ........................................................... 166, 196 data objects ....................................................... 399
Availability group ................................................. 245 output management ............................. 171, 417
Available-to-promise (ATP) ............................... 161 overview .............................................................. 394
tools ...................................................................... 414
B user interface ..................................................... 395
Business-government (B2G)
B2B communication ............................................... 366
communication ................................................ 382
infrastructure services ................................... 383 C
protocol adapters ............................................ 382
Background RFC (bgRFC) .................................... 353 Calculation base .................................................... 300
Backorder processing .......................................... 161 Calculation sheet .................................................. 294
Basic shipping ........................................................ 128 Carrier .............................................................. 125, 264
Basic warehouse management ....................... 231 Centralized purchasing ......................................... 48
Batch Charge management master data ................. 292
creation ......................................................... 94, 148 Charge type ............................................................. 294
level ........................................................................... 89 Checking group ..................................................... 163
number range ....................................................... 92 default values .................................................... 165
processing jobs .................................................. 379 Checking rule ......................................................... 165
search procedure .............................................. 102 Client level ................................................................. 90
valuation ................................................................ 96 Cloud Foundry ....................................................... 365

447
Index Index

Cloud Integration ....................................... 365, 366 E Functional mode ................................................... 411 Integration (Cont.)
Company-specific purchasing ............................ 50 Future road map ...................................................... 41 competency center .......................................... 377
Condition table ..................................... 98, 174, 209 EDIFACT ........................................................... 317, 338 strategy ............................................. 330, 369, 370
Connector ................................................................ 345 Electronic data interchange (EDI) .................. 178, G style ....................................................................... 371
Consignee ...................................................... 127, 271 317, 333 use-case pattern ............................................... 373
Constant expression ........................................... 404 benefits and limitations ................................. 341 Global data type (GDT) ........................................ 400 Interchange control header ............................. 335
Context ..................................................................... 413 file format ............................................................ 333 Goods issue ............................................................. 194 Interchange control trailer ............................... 335
Contract warehousing ........................................ 217 file structure ....................................................... 334 Goods movement ................................................. 186 Interchange envelope ......................................... 335
Control key .............................................................. 279 integration .......................................................... 381 field selection ..................................................... 187 Internet Communication
Control record ........................................................ 320 transmission ....................................................... 334 settings ................................................................. 190 Framework (ICF) ............................................... 359
Converter module ................................................ 383 Element ..................................................................... 399 Goods Movement Analysis app ...................... 439 Internet Communication Manger (ICM) .... 359
Cost of service ........................................................... 42 Embedded EWM .................................................... 230 Goods receipt ......................................................... 198 Inventory adjustment ........................................ 387
Country ..................................................................... 142 Enterprise application integration (EAI) ...... 331 Inventory Analysis Overview app ................. 434
Cross-functional team ........................................... 41 ERP integration ...................................................... 219 H Inventory KPI Analysis app .............................. 435
Cross-plant purchasing ......................................... 50 Error handling ........................................................ 431 Inventory management ............. 22, 32, 185, 218
Customer .................................................................. 263 Event mode .............................................................. 411 Handling unit (HU) .............................................. 109 Inventory reconciliation ................ 185, 212, 387
Customer function call (CFC) .............................. 97 Expert mode ............................................................ 396 define number range ...................................... 111 Inventory report .......................................... 434, 441
Customer return ................................................... 224 Expertise in business ............................................. 42 define type .......................................................... 123 Inventory Turnover Analysis app .................. 438
Customer-vendor integration (CVI) ................. 66 Expiration date check .......................................... 201 number range maintenance ........................ 113 Item category ......................................................... 152
configuration ........................................................ 67 Expression ................................................................ 403 requirements ...................................................... 120 Item type ........................................................ 252, 282
Customs clearance .................................................. 23 Extended warehouse management transactions ....................................................... 110
(EWM) ................................................ 218, 225, 231 unique external identification .................... 112 J
D configuration settings .......................... 242, 250 with EWM ............................................................ 121
integration settings ......................................... 235 Handling unit management (HUM) ...... 87, 108 Java .......................................................... 346, 355, 365
Data record .............................................................. 320 integration with SAP S/4HANA .................. 233 Hard block ............................................................... 164 JavaScript ................................................................. 365
Data Replication Framework (DRF) ............... 253 master data ........................................................ 253 Hybrid integration platform ............................ 374 JavaScript Object Notation (JSON) ................. 360
Data transformation ........................................... 330 Extensibility ............................................................ 330
Dead Stock Analysis app .................................... 437 I L
Decentralized EWM .............................................. 231 F
Decentralized purchasing .................................... 48 IDoc ......... 180, 220, 255, 305, 308, 316, 346, 425 Labor management ............................................. 220
Decision table ......................................................... 405 Fifth-party logistics ................................................ 26 classification ...................................................... 423 Less than container load (LCL) ........................ 128
Declaration ................................................................. 23 Financial health ....................................................... 42 extensions ........................................................... 319 Less than truckload (LTL) .................................. 128
Default partner agreement ............................... 282 Finished product ..................................................... 76 inbound and outbound processing .......... 327 Letter of indemnity (LOI) .................................. 127
Delivery First-party logistics ................................................. 25 interface ............................................................... 378 Loading group ....................................................... 133
completed indicator ........................................ 200 Formula expression ............................................. 405 message type ..................................................... 321 Local Data Queue (LDQ) ..................................... 353
cost ............................................................................ 36 Forwarding order (FWO) ..................................... 266 monitoring ......................................................... 423 Location ................................................................... 276
integration .......................................................... 281 configuration ..................................................... 281 statistics ............................................................... 423 Logical system ....................................................... 306
item category ........................................... 146, 147 key field attributes ........................................... 268 structure .............................................................. 320 assign to client .................................................. 306
time ........................................................................... 36 types ............................................................. 288, 290 third-party logistics ......................................... 332 define .................................................................... 306
type .............................................................. 118, 145 Forwarding quotation (FWQ) ........................... 266 types ...................................................................... 317 Logistics ................................................................... 219
Direct connectivity .............................................. 344 Forwarding settlement ....................................... 267 IDoc Processing app ............................................. 424 Logistics execution .............................................. 128
Distribution ............................................................... 38 Fourth-party logistics ............................................ 25 Importer of record ................................................ 127 map processes ................................................... 129
Distribution channel .............................................. 53 Freight costs ............................................................ 128 Inbound delivery .................................................. 145 organization structure .................................. 130
Distribution model .................................... 247, 312 Freight forwarding .................................................. 23 automatic creation ......................................... 179 SAP ERP vs. SAP S/4HANA ............................ 130
add message type ............................................ 313 Freight settlement ................................................ 267 integration .......................................................... 384 Logistics integration profile ............................. 278
create .................................................................... 312 Full container load (FCL) ..................................... 128 Inbound logistics .................................................. 126 Logistics service provider .............. 264, 266, 271
generate partner profile ................................ 315 Full truckload (FTL) ............................................... 128 Incompleteness procedure ..................... 158, 160
Division ........................................................................ 54 Function .................................................................... 410 Incompletion control .......................................... 156 M
Document integration ........................................ 279 Function call expression .................................... 408 Incoterms ................................................................. 127
Document transportation relevance ............ 280 Functional group ................................................... 336 Integrated business processes ............................ 29 MALA ......................................................................... 154
Document type ...................................................... 250 Functional group header .................................... 336 Integration Management and culture .................................... 43
Dynamic availability check ............................... 200 Functional group trailer ..................................... 336 approach ................................................................ 43 Map key business processes ............................... 43
best practices ..................................................... 377 MARE ......................................................................... 154

448 449
Index Index

Master data ................................................................. 75 P Rule ............................................................................. 416 SAP Transportation

procurement-specific ......................................... 77 Ruleset ....................................................................... 415 Management (SAP TM) .............. 261, 262, 264
replication ........................................................... 254 Packaging material ............................................... 115 deployment ........................................................ 263
sales-specific ......................................................... 78 define allowed .................................................... 117 S embedded ........................................................... 270
supply-chain relevant ........................................ 81 define material group ..................................... 116 financial processes .......................................... 292
synchronization ................................................... 71 define type ........................................................... 122 Sales area ..................................................................... 55 integration options ......................................... 266
Master data governance (MDG) ...................... 254 Partner profile ........................................................ 323 Sales organization ................................................... 52 logistics integration ....................................... 277
Material level ............................................................. 90 Party entitled to dispose (PETD) ............ 240, 243 Sales with outbound delivery .......................... 221 master data ....................................................... 274
Material master .............................................. 75, 119 Physical inventory document ............... 197, 204 SAP Advanced Planner and Optimization .. 353 master data elements .................................... 275
Material procurement ........................................... 23 Picking ....................................................................... 152 SAP Application Interface Framework ........ 431, organizational structure .............................. 271
Message control .................................................... 178 Picking location ..................................................... 153 433, 434 Scalability ......................................................... 42, 330
Microservices ......................................................... 330 assign .................................................................... 156 SAP Business Accelerator Hub .............. 331, 388 Scale ........................................................................... 297
Microsoft Visual Studio ...................................... 350 rules ........................................................................ 154 SAP Business Connector .................................... 345 Scale base ................................................................. 299
Middleware ............................................................. 343 Plant .............................................................................. 57 SAP Business Intelligence Java Software Scope of services ...................................................... 41
Middleware integration ..................................... 366 Plant level ................................................................... 89 Development Kit .............................................. 349 Second-party logistics ........................................... 25
Minimum remaining shelf life ........................ 106 Plant-specific purchasing ..................................... 50 SAP Business Rules Management Semifinished product ............................................ 76
Mode of operation ................................................ 411 Point-to-point connections .............................. 334 (SAP BRM) ............................................................ 421 Service consumer ................................................. 359
Modes of transport .............................................. 138 Port .............................................................................. 326 SAP Business Suite ............................................... 421 Service-Oriented Architecture (SOA) ............ 330
Monitoring .................................................... 423, 431 Port of discharge .................................................... 128 SAP Business Technology Manager ............................................................. 361
Monitoring tools ................................................... 424 Port of loading ........................................................ 127 Platform (SAP BTP) ................................ 344, 388 Services registry .................................................... 359
Movement type .................................. 192, 204, 284 Procedure call expression .................................. 408 SAP Business Warehouse (SAP BW) ............... 379 Shelf life .................................................................... 106
MSRE .......................................................................... 154 Procurement with inbound delivery ............ 220 SAP Connector for Microsoft .NET ....... 349, 351 Shipment accuracy ................................................. 36
Multiple device support ..................................... 219 Procure-to-pay .......................................................... 31 SAP Customer Relationship Shipper .................................................. 125, 263, 271
Public warehousing .............................................. 217 Management (SAP CRM) ............................... 344 Shipping .......................................................... 125, 130
N Purchasing group .................................................... 52 SAP Fiori ......................................................... 207, 208 block ...................................................................... 150
Purchasing organization ...................................... 48 SAP Gateway ................................................. 208, 309 condition ............................................................. 133
Node.js ....................................................................... 365 SAP GUI ........................................................... 207, 208 configuration .................................................... 132
Number assignment ............................................ 114 Q SAP Integration Solution Advisory type ............................................................... 139, 286
Number range ........................................................ 152 Methodology .................................. 370, 373, 375 Shipping point ................................................ 60, 131
assign ....................................................................... 69 Queued RFC (qRFC) ........................... 237, 238, 353 SAP Java Connector .................................... 346, 348 assign to plant .................................................. 131
create ....................................................................... 68 SAP Java Resource Adapter ............................... 348 determination ................................................... 137
R SAP NetWeaver ...................................................... 232 determine ............................................................ 134
O SAP NetWeaver Application Server .............. 346, inbound delivery .............................................. 137
Rate ............................................................................. 295 348, 355 Signature .................................................................. 413
On-time shipping .................................................... 36 Rate table .................................................................. 296 SAP NetWeaver RFC Software Simple mode .......................................................... 396
Order accuracy .......................................................... 36 Raw material ............................................................. 76 Development Kit .............................................. 351 Slotting capabilities ............................................. 219
Order confirmation ............................................. 149 Reference document settings .......................... 193 SAP Process Integration .................. 330, 366, 367 Slow or Non-Moving Materials app .............. 440
Order fulfillment .............................................. 23, 36 Remote Function Call (RFC) .................... 346, 352 SAP Process Orchestration ..................... 330, 366, SOAP .......................................................................... 350
Order integration .................................................. 280 connection ........................................................... 310 367, 380 SOAP-based WSDL ................................................ 361
Order-to-cash ............................................................ 30 destinations ........................................................ 310 SAP S/4HANA Soft block ................................................................. 164
Organizational entities .......................................... 48 HTTP destination .............................................. 356 configuration settings ......................... 239, 247 SPED .................................................................. 179–182
Organization-level integration ............. 235, 238 overview ............................................................... 352 delivery ................................................................. 248 Stage profile ................................................... 286, 287
Outbound delivery ............................................... 145 target system ...................................................... 308 integration settings ......................................... 233 Stage type ................................................................ 283
Outbound delivery integration ...................... 384 Replenishment lead time (RLT) ....................... 161 output control ................................................... 207 Stage type sequence ............................................ 284
Outbound logistics ............................................... 126 Reporting and analytics ...................................... 220 output management ............................ 417, 419 Standard charge calculation ............................ 301
Output control ....................................................... 170 Rescheduling ........................................................... 161 SAP Solution Manager ........................................ 331 Standard format ................................................... 333
Output determination .............................. 172, 207 Result data object .................................................. 413 SAP Supplier Relationship Status group ........................................................... 157
condition technique ........................................ 173 RETA ............................................................................ 154 Management (SAP SRM) ............................... 344 Status record .......................................................... 321
maintain procedure ........................................ 176 Reverse logistics .................................................... 126 SAP Supply Chain Stock reconciliation ............................................ 185
procedure ............................................................ 211 Route .......................................................................... 139 Management (SAP SCM) ..................... 232, 353 Stocks status change ........................................... 386
Output type ................................................... 175, 211 Route determination ....................... 138, 140, 143 Storage ......................................................................... 37
Storage conditions ............................................... 155

450 451
Index Index

Storage location ................ 59, 137, 194, 199, 203 Table (Cont.) Transaction (Cont.) Transaction (Cont.)
Strategy type ........................................................... 100 MLGN-LTKZE ........................................................ 85 0184 ....................................................................... 148 NACE ............................................................ 177, 182
Structure ................................................................... 401 MLGN-LVSME ....................................................... 85 0VLK ...................................................................... 146 OM54 ................................................................ 92, 93
Supply chain integration ...................................... 22 MVKE-DWERK ...................................................... 79 0VLP ...................................................................... 147 OMA1 ....................................................................... 98
Synchronous communication .............. 344, 345 MVKE-KTGRM ...................................................... 80 0VRF ...................................................................... 143 OMAD ...................................................................... 93
Synchronous RFC (sRFC) .................................... 352 MVKE-MTPOS ...................................................... 80 0VTA ..................................................................... 139 OMB2 .................................................................... 195
System landscape design ...................................... 46 NACH ..................................................................... 177 0VTB ...................................................................... 138 OMB3 ........................................................... 195, 200
NAST ............................................................ 171, 420 0VTC ...................................................................... 140 OMBB .................................................................... 104
T PARTNER_GUID .................................................. 74 BD53 ....................................................................... 255 OMBC .................................................................... 200
QPART ..................................................................... 86 BD64 ...................................................................... 313 OMC0 ................................................................... 199
Table ........................................................................... 402 T001W ................................................................... 401 BD87 ...................................................................... 426 OMCC ................................................................... 198
A816 ....................................................................... 402 TATYP ...................................................................... 79 BD97 ...................................................................... 311 OMCE ....................................................................... 90
BUT000 ................................................................... 74 TPTM ........................................................................ 76 BMC1 ...................................................................... 100 OMCG ................................................................... 103
CHVW .................................................................... 106 TVLS ....................................................................... 150 BMC2 ..................................................................... 100 OMCP .................................................................... 196
CVI_CUST_LINK ................................................... 74 TVLSP ..................................................................... 151 BMC3 ..................................................................... 100 OMCV ...................................................................... 96
CVI_VEND_LINK .................................................. 74 TVSTZ ..................................................................... 134 BUCF ......................................................................... 70 OMCW .................................................................. 101
LGNUM .................................................................... 84 TWLVZ ................................................................... 138 CFM1 ...................................................................... 256 OMCX ...................................................................... 99
MARA-BRGEW ...................................................... 77 VBBE ....................................................................... 164 CO06 ..................................................................... 161 OME4 ....................................................................... 52
MARA-BSTME ....................................................... 77 VBBS ....................................................................... 164 CO09 .................................................. 161, 164, 169 OMJ5 ............................................................. 107, 202
MARA-MEINS ........................................................ 76 VKORG .................................................................... 79 COP1 ....................................................................... 110 OMJ8 ..................................................................... 204
MARA-MHDHB .................................................... 84 VTWEG .................................................................... 79 COP2 ...................................................................... 110 OMJC ..................................................................... 204
MARA-MHDRZ ..................................................... 84 Technical integration .......................................... 330 CU70 ...................................................................... 100 OMJJ ...................................................................... 205
MARA-MTPOS_MARA ............................... 76, 80 Technological capabilities ................................... 42 CU71 ....................................................................... 100 OMJX ..................................................................... 191
MARA-NTGEW ...................................................... 77 Third-party logistics ........................................ 21, 25 CU72 ....................................................................... 100 OMK1 .................................................................... 103
MARA-QMPUR ..................................................... 85 business case ........................................................ 27 EC02 .......................................................................... 58 OMK4 ....................................................................... 98
MARA-RAUBE ....................................................... 84 evolution of capabilities .................................. 42 EMASN .................................................................. 427 OMKT ................................................................... 101
MARA-SPART ........................................................ 79 key benefits ........................................................... 24 EMFOR .................................................................. 427 OMKU ...................................................................... 99
MARA-TEMPB ....................................................... 84 overview ................................................................. 22 EMINV ......................................................... 427, 428 OMS6 .................................................................... 155
MARA-TRAGR ....................................................... 81 pros and cons ....................................................... 28 EMORD ....................................................... 427, 428 OPJL ....................................................................... 165
MARC .................................................................... 442 service providers ............................................... 126 EMTRA .................................................................. 427 OPL8 ...................................................................... 103
MARC-BESKZ ......................................................... 82 strategy ................................................................... 35 HU01 ...................................................................... 110 OPLB ........................................................................ 98
MARC-DISLS .......................................................... 82 systems ................................................................... 44 HU02 ..................................................................... 110 OPLE ...................................................................... 101
MARC-DISMM ...................................................... 82 Tolerance limits ..................................................... 198 HU03 ..................................................................... 110 OPLF ......................................................................... 99
MARC-DISPO ......................................................... 82 Total shelf life ......................................................... 106 HUCOWA ............................................................. 110 OVA0 .................................................................... 158
MARC-DWERK ...................................................... 81 Track and trace ....................................................... 219 HUCOWE ............................................................. 110 OVA2 ..................................................................... 158
MARC-EKGRP ........................................................ 77 Transaction HUIBD ................................................................... 110 OVL2 ...................................................................... 134
MARC-LGFSB ......................................................... 83 /N/AIF/CUST ....................................................... 433 HUMO ................................................................... 110 OVL3 ...................................................................... 156
MARC-LGPRO ........................................................ 83 /N/AIF/ERR .......................................................... 430 HUOBD ................................................................. 110 OVL7 ...................................................................... 142
MARC-MTVPF ....................................................... 80 /N/AIF/IFMON ................................................... 430 HUPAST ................................................................ 110 OVLQ ..................................................................... 155
MARC-PRCTR ........................................................ 81 /n/AIF/IFMON .................................................... 432 HUTRA .................................................................. 110 OVR1 ...................................................................... 142
MARC-QMATV ...................................................... 85 /N/AIFX/ERR_WEB ........................................... 432 LT09 ....................................................................... 110 OVSF ...................................................................... 133
MARC-SOBSL ......................................................... 83 /SCWM/GWL ....................................................... 256 M703 ...................................................................... 209 OVSX ..................................................................... 134
MARC-SSQSS ......................................................... 86 /SCWM/LS01 ....................................................... 256 M706 ..................................................................... 211 OVSY ..................................................................... 143
MARC-WEBAZ ....................................................... 77 /SCWM/LS11 ........................................................ 256 M708 ..................................................................... 212 OVT0 ..................................................................... 173
MARD .................................................................... 442 /SCWM/MAT1 ..................................................... 256 M710 ...................................................................... 210 OVX5 ........................................................................ 52
MARD_LGORT ................................................... 442 /SCWM/MON ..................................................... 256 MB57 ...................................................................... 105 OVXC ............................................................. 61, 131
MCH1 ..................................................................... 442 /SCWM/PACKSPEC ........................................... 256 MD04 .................................................................... 164 OVXD ............................................................. 60, 131
MCHA .................................................................... 442 /SCWM/PRDI ...................................................... 256 MIGO ........................................ 190, 191, 193, 205 OVXGN .................................................................... 57
MCHB .................................................................... 442 /SCWM/PROD .................................................... 256 MIGO_GI .............................................................. 193 OVXI ......................................................................... 54
MCHB_CHARG .................................................. 442 /SCWM/RFUI ...................................................... 256 MIGO_GO ............................................................ 193 OVZ1 ...................................................................... 164
MCHBH ................................................................ 442 /SCWM/TO_CONF ............................................ 256 MIGO_GR ............................................................ 193 OVZ2 ............................................................ 163, 164
MLGN-LTKZA ........................................................ 85 /SCWM/TODLV_O ............................................ 256 MSC2N ..................................................................... 91 OVZ3 ..................................................................... 165

452 453
Index Index

Transaction (Cont.) Transaction (Cont.) X

OVZ9 ............................................................ 166, 200 WE41 ....................................................................... 328
OVZK ..................................................................... 167 WE42 ...................................................................... 328 X12 .................................................................... 335, 338
OX08 ........................................................................ 49 WE60 ..................................................................... 322 XML messages ........................................................ 345
OX09 ........................................................................ 59 WE8 ........................................................................ 321
OX10 ......................................................................... 58 WE81 ....................................................................... 314
OX17 .......................................................................... 50 WLF_IDoc ................................................... 424, 425
S_ALR_87003103 ................................................. 69 XDN1 ........................................................................ 68
S_ALR_87003126 ................................................. 68 XKN1 ......................................................................... 69
S_ALR_87003201 ................................................. 69 Transaction set header ........................................ 337
S_ALR_87003428 ................................................. 69 Transaction set trailer ......................................... 337
S_ALR_87003434 ................................................. 68 Transaction settings ............................................. 193
S_ALR_87006706 ............................................. 152 Transactional RFC (tRFC) ................ 308, 326, 353
SALE .................................................... 306, 327, 378 Transfer of requirements ................................... 160
SCPR20 ................................................................. 182 Transfer postings ................................................... 194
SE24 ........................................................................ 359 Transportation ........................................ 23, 38, 261
SE80 ....................................................................... 359 Transportation group .......................................... 142
SE84 ....................................................................... 362 Transportation management ........................... 130
SICF .............................................................. 359, 360 Transportation network ..................................... 275
SLG1 ....................................................................... 208 Transportation zone .................................. 141, 142
SM59 ......................................... 308, 327, 356, 379 Two-step stock transfer ...................................... 223
SOAMANAGER .................................................. 362
SPRO ............................................................ 312, 378 U
V_R2 ...................................................................... 161
V_RA ...................................................................... 161 United Nations Trade Data
V_UC ..................................................................... 157 Interchange (UNTDI) ....................................... 317
V_UC_7 ................................................................. 157
V_V2 ...................................................................... 161 V
V/34 ............................................................. 175, 181
V/37 ........................................................................ 172 Value drivers ............................................................. 27
V/44 ....................................................................... 172 Value-added network (VAN) ............................. 334
V/46 ....................................................................... 172 Value-added services ...................................... 23, 39
V/60 ....................................................................... 174 Vendor return ......................................................... 224
V/C1 ........................................................................ 101
V/C2 .......................................................................... 99 W
V/C5 ....................................................................... 103
V/C7 .......................................................................... 98 Warehouse inbound processing ..................... 226
V/CA ...................................................................... 103 Warehouse management ................................... 130
VEGR ...................................................................... 116 Warehouse management systems ....... 218, 220
VHAR ..................................................................... 116 Warehouse order ................................................... 230
VHZU ..................................................................... 117 Warehouse outbound processing
VL34 ....................................................................... 149 advanced .............................................................. 228
VLMOVE ............................................................... 110 basic ....................................................................... 227
VNKP ..................................................................... 111 Warehouse request ............................................... 229
VUA4 ..................................................................... 160 Warehouse task ...................................................... 229
VV21 ....................................................................... 182 Warehousing ............................................ 22, 37, 217
VV22 ...................................................................... 182 deployment ......................................................... 218
VV23 ....................................................................... 182 system landscapes ........................................... 230
WE09 ..................................................................... 425 Web Dynpro ............................................................ 208
WE20 ..................................................................... 323 Web Service Description
WE21 ...................................................................... 326 Language (WSDL) .............................................. 358
WE30 ..................................................................... 318 Web services .................................................. 352, 358

454 455
 First-hand knowledge.

Gautam Bhattacharya is an SAP solution lead in the supply chain man-

agement space with specializations in sourcing and procurement, lo-
gistics, and Business Rule Framework plus. He has more than 21 years
of experience related to the design, development, and implementation
of materials management, quality management, supplier relationship
management, business rule automation, and SAP S/4HANA legacy inte-
gration. His recent engagements include overseeing design and imple-
mentation of end-to-end global intercompany processes and 3PL inte-
gration. As a postgraduate in engineering, Gautam started his career in domain functions
of metals and welding industries. He holds certifications in materials management, SAP
Supplier Relationship Management, SAP S/4HANA Sourcing and Procurement, and SAP
Ariba Procurement.

Mehfuze Ali Molla is a senior consultant at IBM. He has more than 15

years of SAP-related experience with ABAP and Basis, covering all proj-
ect stages including requirements determination, gap analysis, business
process reengineering, issue resolution, configuration, custom code
specifications, testing, training, golive assistance, and post implemen-
tation support. Mehfuze has hands-on experience in full lifecycle im-
plementations (a number of which have been for SAP S/4HANA), sup-
port projects, and technical upgrades.

Gautam Bhattacharya, Mehfuze Ali Molla

Integrating Third-Party Logistics with

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455 pages | 12/2023 | $99.95 | ISBN 978-1-4932-2446-3
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