LE TRA

LE-TRA Overview

Logistics Execution •The Logistics Execution (LE) component models the logistics processes in a company. It covers the entire process chain from the vendor through the company warehouse, production facilities, and distribution centers to the customer. The LE processes include: •The goods receipt process: Goods pickup from the vendor and put away in the company's warehouse. •The goods issue process: Picking the goods and delivering them to the customer. •Internal warehouse processes such as posting change, stock transfer, and inventory. •The shipment process: Inbound and outbound shipments, and shipment cost calculation and settlement.

Transportation •A shipment represents a physical goods movement between two or more locations. [in Business] •Transportation is a essential element in Logistic chain •Affects both incoming and outgoing goods •Transportation costs also play an essential role in calculation in price of a product, thus necessary to keep transportation costs low •Transportation is carried out through Shipment Documents [in SAP]

Organizational structure - Shipping

Transportation planning point

Company code Company code

Transportationplanning planningpoint point Transportation

Plant Plant

Storage Storage location location

Shipping Shippingpoint point

Warehouse Warehousenumber number

Loading point Loading point

Transportation planning point  A group of employees responsible for organizing transportation activities - what

to ship, when to ship, how to ship, where to ship  Each shipment has to be assigned to a specific transportation planning point for carrying out the transportation planning

What to Ship???

How to Ship??? Shipping Document with all the details

Where to Ship???

When to Ship???

Transportation planning point  We can have Transportation Planning Point according to our company’s needs, for example, - according to geographical location or - mode of transport. Road

How many Transportation planning point should I have??

Sea

United States Department of Transportation

Transportation planning point

• • •

Transportation planning point is created in transaction OVXT or menu path: IMG  Enterprise Structure  Definition  Logistic Execution  Maintain Transportation Planning point Assign Transportation point to a company code This assignment is relevant for shipment costing and settlement only.

Shipping point determination

Route  Route is a fundamental basis to create and plan shipments in SAP  Route is “Pathway” from goods/ services departure point to its destination point  The route determines the itinerary and the means of transport in shipping  It also carries very essential information such as Vandor, transportation relevance, Transit time etc  System determines Route in a sales document which can be copied to Delivery document and further in a Shipment document.

Route determination

Route controls  When route is determined, lot of information is determined for the shipment document  Route maintenance and route determination maintenance is carried out under path: IMG> Logistic Execution> Transportation> Basic Transport functions> Routes

Outbound delivery and shipment

Transportation and Transportation cost

Shipment - Terms to understand

 Transportation connection point  Stages  Legs  Routes

The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved.

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Transportation connection point A connection point can be one of the following:  an airport or a harbor  a border crossing  a railway station  a load transfer point

Jamshedpur Factory Truck Shipping point

JNPT Navi Mumbai Sea port

Sea

Rotterdam Sea port NL

Dresden Rail

Transportation Connection point

DE factory Customer

Stages  Stages contain information about geographical factors for a shipment  Can be a Load transfer point, Border Crossing point or Legs  Load transfer points: The point where a shipment is unloaded from one means of transport and loaded onto another.  Border crossing points: The point where a shipment crosses the border.  Leg: A beginning point and end point is defined

Legs

Shipment Legs Shipment leg is formed with connection between beginning point and end point. The following can be beginning points or end points:  Transportation connection point (train station or port, for example)  Shipping point (or loading point)  Plant (or storage location)  Customer location (may include customer’s unloading point)  Vendor loading point  Freely-definable address

Stages  Legs Types of Legs  Preliminary leg (if leg’s departure point = Delivery Departure point)  Subsequent leg (if leg’s destination point = Delivery Destination point)  Main leg (if leg has both departure point and destination point)  Direct leg (if the leg links the delivery departure point directly to the delivery destination; and there are no more items to deliver)  Return leg (if the leg links the delivery destination to the depot - where it has started from)

Load Transfer Points

Jamshedpur Factory Shipping point

Truck

Preliminary Leg

JNPT Navi Mumbai

Load Transfer Points

Sea

Main Leg

Rotterdam Sea Port Netherlands

Rail

Dresden Factory location Germany

Sub sequent Leg

Types of Shipment Based on the different forms of transportation, the shipments can be categorized as below  Individual shipment  Collective shipment  Multimodal transport/ Transportation chain

Individual Shipment Individual shipment: (Shipment type 0001 provided by SAP) An individual shipment includesOne or more deliveries One point of departure One destination One mode of transport

Collective Shipment Collective shipment: (Shipment type 0002 provided by SAP) A collective (or milk-run) shipment includes One or more deliveries Several points of departure Several destinations One mode of transport

Delivery 2 (to WalMart)

Delivery 2

Delivery 1

Delivery 1 (to K Mart)

Main Leg

Subsequent Leg

Delivery 2

Transportation Chain Transportation chain/ Multi-modal transport: (Shipment type 0004,0005,0006 provided by SAP) A transportation chain is useful if you are dealing with deliveries that will be transported using multiple modes of transportation (and are thus processed by different departments at the transportation planning point). •One or more deliveries •Several points of departure •Several points of destination •More than one modes of transport

Business Scenario - Transportation Chain Customer Berlin

Shipment Document 1

Shipment Document 2

Shipment Document 3

Business Scenario - Transportation Chain Customer Berlin

Shipment Document 1

Business Scenario - Transportation Chain- Challenges Ahead If you want to depict a transportation chain within a single shipment document, you must also accept the limited functions available to you. Reason: Almost all shipment document functions refer to the document as a whole:  Outputs can only be printed for the entire document, not for individual legs  Shipping units (Pallets, Container, etc) can only be created for the entire document, not for individual legs  The same is valid for texts, deadlines in general, etc.

Determination of Legs  ‘1’: Leg determination according to ITINERARY (as per the order of deliveries in the shipment document)

DeliveryShipping Point Customer's Destination 1

Cincinnati

Denver

2

Cincinnati

Dallas

3

New York

Harrisburg

Delivery 1 and 2

Cincinnati

Truck

Preliminary Leg

New York

Delivery 1,2 and 3

Truck

Main Leg

Delivery 2 and 3

Denver

Truck

Subsequent Leg

Delivery 3

Dallas

Truck

Harrisb urg

Subsequent Leg

Determination of Legs  ‘2’: A type of leg determination in which a preliminary leg is created for each starting point and a subsequent leg is created for each destination point.  This type of leg determination is used for transporting deliveries that are to be sent by

sea in a group, but originate from different shipping points or are to be transported to different ship-to parties.

Delivery 2

Washing ton

Delivery 1 and 3

Preliminary Leg

Shipping Delivery Point 1

Customer's Destination

New York

2

Berlin

Washington

3

Dresden

New York

Delivery 1,2 and 3

Main Leg

Delivery 2

Dresden

Berlin

Delivery 1,2 and 3

Subsequent Leg

Delivery 1,2 and 3

Delivery 1 and 3

Subsequent Leg

Determination of Legs  ‘3’: A type of leg determination in which a preliminary leg and a subsequent leg are created for each delivery. This leg determination type is used for transporting extensive amounts of goods that must be distributed among multiple deliveries because one delivery would not offer enough capacity.

Shipping Customer's DeliveryPoint Destination 1

Delivery 2

New York 2

Preliminary Leg

New York

Delivery 1 and 2

Main Leg

Delivery 1

Berlin

Washingt

on

Delivery 1

Dresden

Dresden

Delivery 1 and 2

Delivery 1,2

Subsequent Leg

Delivery 2

Subsequent Leg

Determination of Legs  ‘4’: Same as 1; but shipping type for Preliminary and subsequent legs are changeable in the shipment document  ‘0’: Only determine assignment of deliveries to the stages  For documents in which such a complex situation exists that it is necessary to generate the legs manually. To reduce the maintenance effort, you can at least determine the assignment of delivery notes to stages.

 Blank: No leg determination  For documents in which legs are not relevant (Ex: Empty shipments)

LE-TRA Training | 09.10-09-2015, Mumbai The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved.

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Determination of Legs - Manual Changes  We can manually add the stages with the stages which are determined automatically  We can specify the different Mode of transport, service provider details, Inco terms for the stages newly entered

Transportation relevance - Control  For carrying out transportation following should be relevant for transportation - Delivery type - Delivery item category - Route

 This is done under menu path: IMG> Logistic Execution> Transportation> Shipments> Maintain Transportation relevance

Controlling shipments: IMG Shipment Document Type

 Completion type  Process control  Service level  Leg indicator  Shipping type  Leg determination type  Copying data  Output determination

 Text determination  Default Values

Menu Path: IMG> Logistic Execution> Transportation> Shipments> Define Shipment ty

Shipment document - structure  The shipment document header contains data that applies to the whole document such as shipment type, transportation planning point, route, deadlines, and status information. • The shipment document item contains inbound or outbound deliveries in inbound or outbound shipment respectively

Identifying the status of the shipment

 Red - Planning is completed. Shipment status planned  Yellow - Activities in Plant. Loading start & end  Green - Processing/Shipment is completed

Identifying the status of the shipment

 A shipment can have various statuses which uniquely identifies what activity still needs to be done, and what activity has been completed • Planned  Shipment’s Planning is complete • Check - in  Vehicle arrives at the Plant • Start Load  Loading goods into the Vehicle begins • End Load  Goods are fully loaded into Vehicle • Shipment Completion  Necessary documents are created (like Bill of Lading, material safety data sheets) and will be issued to the respective persons

Creating Shipment documents  Manual Creation  Manual creation using planning proposal (use of planning profile)  Automatic creation using collective processing - online & background  Interfaced to an external transportation planning system (ex: SAP APO, LEO - an ORTEC product)  Transactions used for creating shipments are - VT01N - Single Document - VT04 - Collective Processing - VT07 - Collective Processing in Background

Planning profile

 To create shipments and fill with default data (used during collective processing)  Program: RV56TRGN (all the profiles are variants of this program)

RV56TRSP

RV56TRTR

Activity Profile  For each status completion, we can decide an ‘Activity profile’  Activity profile determines the activities carried out when a specific status is set for the shipment document  Activity profile is accessed and maintained under menu path: IMG> Logistics Execution> Transportation> Shipments> Define and assign activities profile  Program: RV56ABST (all the activities are variants of this program)

Activity Profile

Standard Reports available in SAP

 Utilization report - VT14- displays shipments that are not utilized to full capacity

 Transport Execution Monitor - VT20 - helps the transportation planner can react quickly to situations and also have a complete overview of the overall status of all planned shipments.

Salient Features in SAP  Will be able to select deliveries with specific criteria to attach in a shipment (screen info for delivery selection)  Shall capture the Tender Status (Rejected by Forwarding Agent, Accepted by FA with conditions, Offer Cancelled, etc)  Delivery may be split up into two or more shipments if they do not fit on to one truck  Will be able to update Forwarding agent/ transportation planning department with a maximum price which you can offer for a shipment while tendering  Will be able to see the estimated costs for a shipment once it is fully planned  Will be able to quickly adjust the transportation plan by changing the mode of transport, the LSP, and even the route if necessary  Will be able to keep track of changes made in the shipment document  Will be able to copy the details (like Forwarding Agent, Route, Shipping type, Deadlines) from delivery into Shipment document automatically  Will be able to maintain translation according to the business needs for Routes, Connection points, Stages, etc

Shipment processing - Summary

Shipment Costing

What it is?? -

Why should I pay???

Shipment Costing - Prerequisites

Have my shipment has a service Have my shipment agent??? has a service agent???

Have my shipment attained the minimum status??? Have my shipment attained the minimum status???

Is my shipment relevant for Is myshipment shipmentcosting??? relevant for shipment costing???

Shipment Costing - steps involved

Shipment Cost document structure

Shipment cost document - Structure  Shipment cost items either refer to a shipment header or shipment stages  An shipment cost item can refer to Shipment header as insurance charges are for complete shipment  An item can refer to shipment stages as load transfer charges could be charged to each Load transfer point (Stage)  These functions are controlled through shipment cost item category.

Shipment Header Header

Shipment cost Item

Shipment ShipmentShipment cost Item 2 Stage Stage 1 1 Shipment Shipment Stage Stage 2 2

Shipment cost Item 2

Factors deciding shipment costs Factors which decide Shipment Costing  Transportation planning point  Service agents - Service agent group (attached to vendor master)  Truck, Ship, Plane - Shipping type procedure group [T_72]  Leg, Border Crossing point, Customs - Item determination group [T_71]  Menu: SPRO - LE - Transportation - Shipment Costs - Pricing - Pricing Control - Define And Assign Pricing Procedures

Shipment Costing - Pricing - Calculation Base Some of the factors which can act as a Calculation Base to carry out Pricing  Geographical information (Point of departure and destination - Legs) and the distance to be travelled and the Weight loaded  Handling Units (Carton packaging, Pallets)  Delivery (To whom we deliver the goods)  Delivery Items

Settling Shipment cost - How can we do in SAP???  The settlement of shipment costs with the service agent is carried out per shipment cost item.  This Settlement includes two major activities  Assignment and forwarding of the shipment costs to FI and cost accounting for creation of accruals and posting of payables  Automatic settlement using the self-billing procedure or manual settlement with the transportation service agent

Shipment cost settlement

Shipment cost settlement - account determination  G/L account Determination for Inventory Posting with GBB Transaction and VBR General Modifier Key (T Code: OBYC)  G/L account Determination with WRX Transaction

Shipment cost settlement - Determining PO Factors which need to consider for settling shipment costs  Plant, Purchasing organization, Purchasing group  Service agents  Transportation planning point

Integration: MM should have created a purchase order with the vendor Pre-requisite:

 Service agents [from Shipment item]    

Purchasing organization [from item detail: Service procurement] Purchasing group [from item detail: Service procurement] Plant [from item detail: Service procurement] Item category [Service - D]

Freight Cost Estimate - A feature in SAP Helps transportation planner to simulate Shipment Costs during Shipment Processing The planner can change shipment data such as the forwarding agent, shipping conditions, mode of transport, and can calculate his shipment costs on the basis of this data.

Billing Shipment costs to the customer in SAP - Feature in SAP - The shipment costs that are billed to the customer are based on the actual shipment costs. - The shipment costs appear as an additional entry in the customer billing document.

Billing Shipment costs to the customer in SAP - Feature in SAP  Delivery to billing copy control: VTFL (keep price source as F - Shipment costs)  Ensure the shipment condition type exists in SD Pricing procedure  Map the LE condition type to SD condition type in T_VC (in case of custom conditions)  Map the condition tables if we have access sequence assigned to the condition type

Simulate Shipment costs at the order level - Feature in SAP - for example, to determine whether transport by lorry or by train would be cheaper or how much more it would cost to send by express delivery rather than by standard transport.

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