Transportation and Shipping

SD2003 - SD Transportation & Shipment v 1.0

India SAP CoE, Slide 1

SD Transportation & Shipment PrepareMe

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SD Transportation & Shipment PrepareMe

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Purpose

Transportation and Shipment are the essential elements in the logistics chain. It affects both incoming and outgoing goods. Effective transportation planning, ensure that shipments are dispatched without delay and arrive on schedule.

India SAP CoE, Slide 4

Use The transportation function can handle planning and processing of outbound shipments (also inbound shipments) , thus, control and monitor the entire process from warehouse to the customer’s site.

In shipping processing, all delivery procedure decisions can be made at the start of the process by 1. Taking into account general business agreements with your customer 2. Recording special material requests 3. Defining shipping conditions in the sales order

The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances.

India SAP CoE, Slide 5

Challenges Delivering on customer commitments, are increasingly critical to revenue, profitability and customer loyalty, for the transportation and logistics providers. This is especially true in environments where competition is intense, costs are rising and margins are dwindling.

By deploying workforce management technology such as sophisticated dispatch, scheduling, mobile, and GPS solutions, implementing ERP packages, leading companies around the world are dramatically improving service capabilities, competitive differentiation and corporate performance.

India SAP CoE, Slide 6

SD Transportation & Shipment PrepareMe

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Transportation Process Overview Sales Order

. Outbound Delivery

Create Output of Deliv ery List

Transfer Order Confirm Transfer Order TRANSPORTATION PROCESS

Packing Station

Shipment

Post Goods Issue

Billing Document

India SAP CoE, Slide 8

Create Output for packing List

Transportation Planning Point •

Transportation planning point consists of a group of employees responsible for organizing transportation activities

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Each shipment is assigned to a specific transportation planning point for transportation planning and shipment completion

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The transportation planning point is assigned to a company code, but independent of other organizational units.

India SAP CoE, Slide 9

Prerequisites for Transportation For a delivery to be relevant for transportation , the pre-requisites are as follows:  The delivery type must be flagged as relevant for transportation in Customizing.  All the Outbound deliveries must contain a route.  The routes of the deliveries must be flagged as relevant for transportation in Customizing.  The transportation blocking reason in the delivery header must be blank.

 The transportation planning status in the delivery is set to 'A'.

India SAP CoE, Slide 10

Shipping Process Overview Shipping relevant functions

Shipping Point Shipping Point Determination Route Determination Scheduling

Monitoring Shipping due date Creating the Delivery

Goods  Issue Packing Shipping Document

Picking

Shipping processing include:

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 Monitoring of deadlines for reference documents due for shipping (eg, customer orders and PO)  Creating and processing outbound deliveries  Monitoring goods availability  Monitoring capacity situation in the warehouse  Support for picking (with link to the Warehouse Management System)  Packing the delivery  Printing and transmitting shipping documents  Processing goods issue  Controlling through overviews of: - deliveries currently in process - activities still to be performed - possible bottlenecks India SAP CoE, Slide 11

Shipment Types 

Individual Shipment An individual shipment can have more than one delivery , one point of departure , one destination and only one mode of transport

Shipping point Mumbai

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Customer Kolkata

Collective Shipment A collective shipment can have more than one delivery ,multiple points of departure , many destinations but only one mode of transport Delivery 1 Delivery 2 Shipping point Mumbai

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Delivery 1

Customer Nagpur

Customer Kolkata

Transportation chain A transportation chain can have more than one delivery ,multiple points of departure , many destinations and multiple modes of transport

Shipping point Nagpur

India SAP CoE, Slide 12

Port of Departure Mumbai

Port of Destination Chennai

Customer Chennai

Shipment Document The shipping document is the central element of transportation planning & shipment completion. It contains all the information necessary for carrying out transportation. We can use shipment documents to:  Combine deliveries into one inbound or outbound shipment  Specify shipment stages  Legs  Border crossing points  Load transfer points  Assign goods to handling units  Assign service agents  Specify planned transportation deadlines  Record actual transportation deadlines  Specify output required for transportation (such as shipping papers or EDI messages)  Define transport-relevant texts

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Freight Code Determination Determining the freight code is carried out in two steps: Step 1 • Automatic freight code determination uses the following criteria: • Country of origin • Shipping type (truck, rail, etc.) • Forwarding agent (forwarding agent freight group in the vendor master) If an external transportation planning system is being used, then the freight code set can also be defined by the route. Step 2 • Automatic freight code determination uses the following criteria: • Freight code set • Material (material freight group in the material master) • This allows you to determine the freight codes of all materials in a shipment.

India SAP CoE, Slide 14

Creation of Shipments Shipments can be created by choosing deliveries according to certain selection criteria and then assign them to the new shipment. Collective shipment are made to move goods from one or more points of departure to one or more destinations. Separate document types deal with inbound and outbound shipments. You can use shipment documents to:

Deliv ery #

----Deliv ----ery # --------------ery # Deliv --------------------ery # Deliv --------------------------ery # Deliv -------------------- -------------------------------------------- ----

 Combine deliveries into one inbound or outbound shipment  Specify shipment stages Legs Border crossing points Load transfer points  Assign goods to handling units  Assign service agents  Specify planned transportation deadlines  Record actual transportation deadlines Define transport-relevant texts  Specify output required for transportation (such as shipping papers or EDI messages)

India SAP CoE, Slide 15

Automatic Leg Determination Importation characteristics for Automatic leg determination are : Point of departure Destination point Service agent Shipping type Leg indicator Shipment cost relevance for the leg.

Depending on the shipment type, the leg will be automatically determined as soon as overall status of shipment changes to “Planning completed”

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Shipment Stages & Partners For Shipment Stages Stages contain information about the geographical factors for a shipment. Shipment stages can include: Legs A beginning point and end point is defined. For example, you can define main, preliminary, and subsequent legs. Load transfer points The point where a shipment is unloaded from one means of transport and loaded onto another. Stages of Shipment

Border crossing points The point where a shipment crosses the border.

Border crossing point A B Partner: Forwarding agent

Border crossing point A Partner: Customs Broker

In a leg, the partner is the forwarding agent at a load transfer point, it is the load transfer service provider, and at a border crossing point, it is the customs agent.

India SAP CoE, Slide 17

Border crossing point A Partner: Forw arding agent

Packing for Shipments .

Outbound Delivery

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Carton 1

Carton 2

Pallet 1 Container 1

Carton 3

Pallet 2 Carton 4

Packing is the process of assigning delivery items to shipping materials. This produces shipping units, which can then have more shipping materials added for packing.

In the standard system, two output types are set up for printing: - Packing list (at delivery level) - Shipping label (at shipping unit level)

India SAP CoE, Slide 18

Text Determination For Shipment Text Object belongs to ?

Customer

Document -------------

The text determination procedures contain all the text types that can be maintained in a text object . The attributes of the text determination procedure vary for customer or document text objects. We can determine whether the text should be copied or referenced. For document text determination procedures you we also specify whether a 1. Text should be obligatory (incompletion log) 2. Text should be determined automatically 3. Text should be displayed in the document in the text field (popup) India SAP CoE, Slide 19

Output Determination For Shipments Output is a means of communication for exchanging information between partners and systems. We can set requirements to determine whether an output should be created, who will receive it, and which transmission medium should be used. The information that influences output determination is stored as master data, in the form of condition records. Output

Packing List PL00 Material Tag WA00

Transmission Media

Delivery Note

Example of Output types in Shipping

Outbound Shipping Notification LAVA

Shipping Order SA00

External

Telex

Fright List LL00

Printer

SAP office EDI

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Quality Certificate LQCA, LQCB

Shipping Label 0001

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Menu Path For Shipping & Transportation Configuration SPRO  SAP Reference IMG Logistic Execution Shipping SPRO  SAP Reference IMG Logistic Execution Transportation

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Shipping Point & Goods Receiving Point Determination - Configuration IMG Logistic Execution Shipping Shipping Point and Goods Receiving Point Determination

Define Shipping Conditions

Assign Shipping Point

Define Loading Groups

Shipping condition is a strategy for delivery, where, the system proposes the fastest shipping point and route.

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Define Rule for Determination of Shipping Point - Configuration IMG Logistic Execution Shipping  Basic Shipping Functions  Define Rule for Determination of Shipping Point Assign Shipping Points

Shipping Point is determined by Shipping Conditions, Loading Group and Plant . Delivery Type should be specified with Shipping point Rule

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Define Routes - Configuration IMG Logistic Execution Shipping Basic Shipping Functions  Routes  Define Routes

Define Modes of Transport

Define Shipping Types

Mode of Transport is a medium, by means by which cargo is transported, such as rail, road, air, or ship. A mode of transport used for goods entering a customs territory.

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Transportation Connection Points Configuration IMG Logistic Execution Shipping Basic Shipping Functions  Routes  Define Routes

Define Routes and Stages

A connection point can be one of the following:  an airport  a border crossing  a railway station

India SAP CoE, Slide 26

Text Determination - Configuration IMG Logistic Execution Shipping Basic Shipping Functions  Text Control

Select a text object and define the rules for text determination for this object. Define the permitted Text Types for every text object. Define the Access Sequences. Group the text types together in Text Determination procedure. The System then proposes the text types from the procedure when we maintain a customer master record or a sales & distribution document. India SAP CoE, Slide 27

Route Determination – Configuration IMG Logistic Execution Shipping Basic Shipping Functions  Routes

Define Transportation Zones

Maintain Route Determination

India SAP CoE, Slide 28

Define Transportation Groups

Shipments - Configuration IMG Logistic Execution Transportation Basic Transportation Functions  Shipments

Maintain Transportation Relevance

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Define Shipment Types - Configuration IMG Logistic Execution Transportation  Basic Transportation Functions  Shipments  Define Shipment Types

Shipment types contain all the essential control features for the shipment document. Default values, such as selection variant, weight unit, output type Transportation processing type, service level and so on. Control specifications for the partner, output and text determination procedures

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Maintain Transportation Planning Point IMG Logistic Execution Transportation  Basic Transportation Functions  Route  Define Routes

An organizational unit in Logistics for planning and processing transportation activities. It organizes the responsibilities in a company according to, shipment type, mode of transport.

Defining Mode of Transportation

India SAP CoE, Slide 31

Defining Shipping Types IMG Logistic Execution Transportation  Basic Transportation Functions  Route  Define Routes  Define Shipping Types

In this activity, you define the shipping types in combination with the mode of transport. The shipping types can include the following:    

Truck Truck with trailer Plane Ship

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Shipment Execution And Monitoring Logistics Execution  Transportation  Transportation Planning  Lists and Logs  Shipment Processing Monitor.

The Shipment monitor gives an overview, grouped by status, time, and date, as to how much workload exists. In this way, the transportation planner can react quickly to situations and also have a complete overview of the overall status of all shipments.

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Create Master Data Create Customer Master data

Logistics  Sales & Distribution  Master Data  Business Partners  Customer  Create 

The customer master is where the goods will be delivered and transport to from the transportation point of view.

Create Vendor Master Data

Logistics  Material Management  Purchasing  Master Data  Vendor  Central  Create

Vendor master is the business partner who may provide transportation service and is the business partner with whom the final transportation cost will be settled in G82.

Creating Transportation Condition Records Logistics  Logistic Execution Master data  Transportation Shipment cost  Prices 

Transportation condition records are the combination of the forwarding agency and condition type. Normally, it stipulates the detailed pricing information, such as how much it will cost for this forwarding agency to transport a certain weight of the goods.

India SAP CoE, Slide 34

Create Delivery Order

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Create Transfer Order A transfer order is an instruction to move materials from a source storage bin to a destination storage bin within a warehouse complex. Transfer orders include the following information:  Material number  Quantity to be moved  Source and destination storage bin

India SAP CoE, Slide 36

Confirm Transfer Order By confirming the transfer order, we verify the quantities removed from the warehouse. During confirmation, it is possible to report differences in quantities. We can record the cause for the difference in the system by entering a difference indicator. As soon as confirmation is complete, the status of the WM activities is set to 'C', regardless of the confirmed quantity. Only the pick quantity affects the picking status.

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Create Packing For Shipments

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Create Output For Packing List

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Create Loading Group Via Delivery Monitor

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Create Shipment Document

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Add Deliveries To The Shipment Add delivery /deliveries

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Automatic Leg Determination

Depending on the shipment type, the leg will be automatically determined as soon as overall status of shipment changes to “Planning completed” The deliveries need to be assigned to the stages (Default assignment is in sort order of the deliveries). This sorting can be manually changed.

India SAP CoE, Slide 43

Post Goods Issue For Shipments Choose Logistics Execution Outbound Process  Goods Issue for Outbound Delivery  Post Goods Issue  Collective Processing Via Outbound Delivery Monitor.

We can post goods issue for an entire shipment.

India SAP CoE, Slide 44

SD Transportation & Shipment PrepareMe

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LetMe Important Transaction Codes VL01N

Create Delivery wrt Sales Order

LT01

Create Transfer Order

LT12

Confirm Transfer Order

HUPAST

Picking & Packing

VL06L

Create Loading Group via Delivery monitor

VT01n

Create Shipment

VL02N

Post Goods Issue

VL71

Create Delivery output

VL74

Create output for Packing List

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HelpMe Billing methods • •

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Various billing methods are used in the shipping industry, including: Freight on Board (FOB): free on board and means that the exporter delivers the goods at the specified location. Example, FOB Kunming Airport (the exporter delivers the goods at Kunming airport). Cost and Freight (C&F,CFR, CNF): With no insurance. The exporter pays the ocean shipping/air freight costs to the specified location. Example, C&F Los Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles). Cost, Insurance, and Freight (CIF): Insurance, and Freight are all paid by the exporter to the specified location. Example, CIF Los Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles including the insurance).

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