Table of Contents

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Preface
15
Objective of This Book
15
Target Audience
16
Structure of the Book
16
Acknowledgments
19
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
3 Organizational Entities and Master Data
47
3.1 Organizational Entities
48
3.1.1 Purchasing Organization and Groups
48
3.1.2 Sales Organization and Sales Area
52
3.1.3 Plants, Storage Locations, and Shipping Points
57
3.2 Business Partners
61
3.2.1 Characteristics and Classification of Business Partners
61
3.2.2 Business Partner Identification
64
3.2.3 Customer-Vendor Integration
66
3.3 Master Data
75
3.3.1 Material Master
75
3.3.2 Procurement-Specific Master Data
77
3.3.3 Sales-Specific Master Data
78
3.3.4 Other Supply Chain-Relevant Master Data
81
3.4 Summary
86
4 Packaging and Traceability
87
4.1 Batch Management
88
4.1.1 Benefits and Integration Points
88
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
4.1.6 Batch Valuation
96
4.1.7 Batch Determination and Batch Check
97
4.1.8 Batch Where-Used List
104
4.1.9 Shelf-Life Expiration Date
106
4.1.10 Batch Management in a Third-Party Logistics Scenario
108
4.2 Handling Unit Management
108
4.2.1 Overview
108
4.2.2 Define Number Ranges for Handling Units
111
4.2.3 Settings for Packaging Materials
115
4.2.4 Handling Units with Extended Warehouse Management
121
4.3 Summary
123
5 Shipping and Delivery
125
5.1 Shipping and Logistics Processes
125
5.2 Logistics Execution
128
5.2.1 Mapping Logistics Execution Processes
129
5.2.2 SAP ERP versus SAP S/4HANA
130
5.2.3 Logistics Execution Organization Structure
130
5.2.4 Shipping-Specific Configurations
132
5.2.5 Route Determination in Sales Order and Delivery
138
5.2.6 Inbound and Outbound Deliveries
145
5.2.7 Picking
152
5.2.8 Incompletion Control for Deliveries
156
5.3 Availability Check and Transfer of Requirements
160
5.3.1 Basic Criteria for Availability Check
161
5.3.2 Configuration Steps for Availability Check
163
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
5.4.3 Message Control
178
5.4.4 Automatic Inbound Delivery Creation during Two-Step Stock Transfers
179
5.5 Summary
184
6 Inventory Management and Reconciliations
185
6.1 Goods Movement
186
6.1.1 Field Selection for Goods Movement
187
6.1.2 Settings for Goods Movement (Transaction MIGO)
190
6.1.3 Goods Issue and Transfer Postings
194
6.1.4 Goods Receipt
198
6.1.5 Automatic Movements
203
6.2 Movement Types
204
6.3 Output Determination
207
6.3.1 Output Control in SAP S/4HANA
207
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
6.4 Inventory Reconciliation
212
6.5 Summary
215
7 Warehousing
217
7.1 Deployment Scenarios for Third-Party Logistics
218
7.1.1 Warehouse Management Systems
218
7.1.2 Extended Warehouse Management with SAP S/4HANA
225
7.2 System Landscapes
230
7.2.1 Embedded Extended Warehouse Management in SAP S/4HANA
230
7.2.2 Decentralized Extended Warehouse Management in SAP S/4HANA
231
7.3 Integration between SAP S/4HANA and SAP Extended Warehouse Management
233
7.3.1 System Landscape Integration between SAP S/4HANA and SAP Extended Warehouse Management
233
7.3.2 Organizational Structure Integration
238
7.3.3 Business Process Integration
247
7.4 Master Data in Extended Warehouse Management
253
7.5 Summary
259
8 Transportation
261
8.1 Third-Party Logistics Providers and Transportation
261
8.2 Deployment Scenarios for Third-Party Logistics
263
8.2.1 Business Partners and Their Roles
263
8.2.2 Integration Options
266
8.3 Master Data and Organizational Structure
271
8.3.1 Organizational Units in Embedded SAP Transportation Management
271
8.3.2 Master Data in SAP Transportation Management
274
8.4 Basic Configuration Setups
277
8.4.1 Logistics Integration in SAP Transportation Management
277
8.4.2 Financial Processes in SAP Transportation Management
292
8.5 Summary
303
9 Application Link Enabling and IDocs
305
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
9.1.3 Remote Function Call Destinations for Method Calls
310
9.1.4 Distribution Model and Distributing Views
312
9.2 IDoc Basics for Functional Consultants
316
9.2.1 Overview
317
9.2.2 IDoc Types and Segments
317
9.2.3 IDoc Extension
319
9.2.4 IDoc Structure
320
9.2.5 Message Type
321
9.2.6 Partner Profiles
323
9.2.7 Ports
326
9.2.8 Inbound and Outbound Processing
327
9.3 Technical Integration Features
330
9.3.1 Integration Strategy
330
9.3.2 Electronic Data Interchange
333
9.4 Summary
342
10 Direct Connectivity and Middleware
343
10.1 Direct Connectivity Options
344
10.1.1 Synchronous versus Asynchronous Communication
344
10.1.2 Connectors
345
10.1.3 Remote Function Call/Web Service
352
10.1.4 Cloud Integration
365
10.2 Integration through SAP Middleware
366
10.2.1 Overview of SAP Process Integration and SAP Process Orchestration
367
10.2.2 Integration Approach and Methodology
369
10.2.3 IDoc Interface/Application Link Enabling
378
10.2.4 Batch Processing Jobs
379
10.3 Connection to a Business-to-Business/Electronic Data Interchange Solution via Application Programming Interfaces
379
10.3.1 Logistics Service Provider-EDI Integration
381
10.3.2 Application Programming Interface Management Using SAP Business Technology Platform
388
10.4 Summary
391
11 Business Rule Framework Plus
393
11.1 Overview
394
11.2 Business Rule Framework Plus User Interface
395
11.3 Business Rule Framework Plus Applications
396
11.4 Business Rule Framework Plus Data Objects
399
11.4.1 Element
399
11.4.2 Structure
401
11.4.3 Table
402
11.5 Expressions
403
11.5.1 Boolean Expression
404
11.5.2 Constant Expression
404
11.5.3 Formula Expression
405
11.5.4 Decision Table
405
11.5.5 Function Call Expression
408
11.5.6 Procedure Call Expression
408
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 Monitoring and Control
423
12.1 IDoc Monitoring and Dashboard
423
12.2 SAP Application Interface Framework
429
12.2.1 SAP Application Interface Framework: Monitoring Categories
430
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
12.3 Inventory Reports
434
12.3.1 Inventory Analysis Overview (SAP Fiori App ID F3366)
434
12.3.2 Inventory KPI Analysis (SAP Fiori App ID F3749)
435
12.3.3 Analyze Stock in Date Range (SAP Fiori App ID F6185)
437
12.3.4 Dead Stock Analysis (SAP Fiori App ID F2899)
437
12.3.5 Inventory Turnover Analysis (SAP Fiori App ID F1956)
438
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
12.3.8 Custom Inventory Reports
441
12.4 Summary
443
The Authors
445
Index
447