sap logistics execution system.pdf
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SAP Logistics Execution System
SAP Logistics Execution System
Powerful, integrated support for your warehouse and transportation
management processes
Coordinating the many different tasks, people and technical resources
associated with running a warehouse and transporting goods has never
been simple. Yet warehouse and transportation processes are a vital part
of the supply chain, and essential to creating a responsive and efficient
business organization. In recent years, the pressure and complexity of the
tasks involved have been increasing at a rapid pace: globalization,
mergers, fiercely competitive markets, an ever greater emphasis on
customer service, and the emergence of new technologies such as the
Web.
Against this background, you need to streamline your operations, drive
down costs and make the most of opportunities for additional revenue.
You need instant access to accurate figures on current inventories, the
arrival of deliveries and the availability of resources such as trucks and
storage space. And you need to make the most of technologies such as
radio frequency devices, the Internet and the Global Positioning System
(GPS).
SAP Logistics Execution System
Powerful, integrated support for your warehouse and transportation management processes
In other words, you require an IT environment that helps you build and maintain highly efficient end-to-end processes spanning all aspects of your warehouse and transportation operations, from your supplier or production plant via your forwarding agent to your endcustomer and from your forklift driver via your warehouse administrator toyour financial controller. An integrated environment that enables you to plan and monitor activities with pinpoint precision, provides customers with instant answers to their questions, and identifies ways of improving profitability. There is now a solution available that offers you the integration, performance and flexibility required to turn this vision into reality ñ The SAP Logistics Execution System.
The SAP Logistics Execution System is part of SAPís unique Supply Chain Management initiative, and helps you forge strong yet flexible links between the processes of production, procurement, storage, distribution, transportation, sales and service. It helps keep customers happy, staff productive and decision-makers informed. It means functionality tailored to your precise needs in warehouses and distribution centers, in load control centers and transportation planning offices, in customer service and accounting. And it means real-time data for decision-making,simulation and planning.
SAP Logistics Execution System
Comprehensive, user-friendly, future-proof
Now there is an integrated, futureproof answer to the challenges of
warehouse and transportation management: the SAP Logistics Execution
System (SAP LES).
SAP LES is much more than just powerful functionality - it is a
comprehensive, user-friendly solution that guarantees free flow of
information, efficient end-to-end processes and productive use of new
technologies. And it is backed by the services and support of the world
leader in enterprise solutions technology, SAP.
From the world leader in enterprise software
The SAP Logistics Execution System benefitsfrom SAPís expertise in
robust client-server software, exemplified by the success of R/3, and from
SAPís awareness of the real-world needs of diverse companies in many
industries.
SAP Logistics Execution System
Build time-saving bridges to other business processes
A key advantage of the SAP LES over stand-alone applications is the
ease with which it links up with other processes, such as production
planning, purchasing, sales and financials and controlling, even data
warehousing tools such as SAP Business Information Warehouse. It is
inherently open - to SAP and non-SAP Enterprise Resource Planning
(ERP) systems. At the same time, the close technological relationship
between the SAP Logistics Execution System and R/3 lendsitself to the
creation of an environment that goes far beyond warehouse and
transportation management. By bridging the gaps between individual
functions and processes, you can significantly increase efficiency and
productivity throughout your enterprise.
SAP Logistics Execution System
Greater flexibility, efficiency and transparency
Support for all users, from forklift driver to warehouse/ transportation
manager to executive decision-makers
Seamless integration with ERP systems (both SAP and non-SAP) and
with planning and optimization applications
Optimize the flow of goods and information across your enterprise
Achieve a competitive advantage through excellent customer service and
cost-effective processes
Combine warehouse and transportation management processes for
greater efficiency and transparency
SAP Logistics Execution System
Software, support, service
The SAP Logistics Execution System offers you powerful functionality
tailored to the tasks of warehouse and transportation management, and it
offers much, much more besides. It notonly supports individual parts of
your business operations, it supports entire processes from end to end.
Within a single environment, you can execute orders with suppliers or
production plants, plan for the arrival of goods, for their correct storage,
rapid further distribution and delivery of the right quantity and quality to
the customer.
The SAP Logistics Execution System helps you manage your human
resources, warehouse, plant and equipment, and your financial assets. It
allows you to exchange data with customers and suppliers, to place
applications on the Web, and to integrate legacy or third-party
applications. It is a holistic solution, and one which can be geared
precisely to your processes, to your operations, and to your strategic
goals. Moreover, it is a solution that can grow with your changing
requirements, and with the emergence of new technologies ñ backed by
the global service, support and development resources of SAP.
SAP Logistics Execution System
Warehouse Management System
Warehouse Management System
Effective support for inbound processes
Inbound processes are of increasing significance when it comes to ensuring smooth-running, costeffective logistics. The SAP Logistics Execution System includes powerful functionality for inbound processes, keeping you fully in the picture with regard to incoming materials and helping you to avoid costly mix-ups and mistakes. It supports the efficient management and monitoring of orders placed with suppliers, including the planning and scheduling of pick-ups, and the receipt of deliveries. SAP LES helps you to rapidly identify incoming goods, and the corresponding purchase order or Advanced Shipping Notification (ASN). It is also possible to streamline goods receipt using information on pallets provided by suppliers. There are also time-saving links to quality management processes, with automatic prompting of appropriate quality control measures. SAP LES also helps streamline the receipt process by assigning gates, doors and time slots for incoming trucks.
Once goods have arrived, you can accurately implement the putaway strategy that suits your organization. You can, for example, opt for the next empty bin, a fixed bin, or for bulk storage. You can apply differing strategies for fast and slow-moving goods, and optimize the storage location in accordance with the next picking cycle. You can also deal with hazardous goods, e.g. by assigning materials and bins to hazardous materials classes, and by placing incoming hazmats in the appropriate storage area.
Warehouse Management System
Accurate storage and facility management
The SAP Logistics Execution System allows you to achieve an
unparalleled degree of transparency and flexibility in storage
management. Functions can be tailored to your precise warehouse
configuration, and you can model very simple or even extremely complex
warehouses with great accuracy. You can organize storage bins randomly
or employ fixed-bin assignment. It is also possible to manage batches, for
instance selecting the appropriate batch for a specific production process
or based on expiration date. You can also differentiate between types of
stock, for instance vendor consignment stock, your own stock, stock that
is unrestricted or in quality control. There is no need for specific activities
on the part of warehouse personnel; the system keeps track and selects
the right stock for you.
Warehouse Management System
Physical inventory control
With the SAP Logistics Execution System, you can manage stock
belonging to many different companies (using company codes), from or to
diverse production plants and held at various storage locations. You can
view stock from a variety of angles, including overviews, lists of stocks in
particular bins or of stock belonging to specific organizational units. The
SAP Logistics Execution System provides rich functionality for many
aspects of physical inventory control, including cycle counting, empty-bin
checks during picking, full counts, and support for all the major physical
inventory methods. Adjustments for discrepancies in bins, with
simultaneous and therefore consistent changes to inventory management,
can be made with ease.
Warehouse Management System
Rich functionality for outbound processes
For outbound processes, you can select sales orders, stock transfer
orders or production orders due for delivery with point-and-click simplicity.
Sales orders for the same ship-to party can be combined to optimize
delivery or large orders can be split. These tasks are performed
automatically for you in background mode, or, should you prefer,
manually.
The SAP Logistics Execution System also helps you carry out the
necessary checks on outbound goods. You can perform ATP checks, or
verify requirements have been fulfilled for foreign trade, i.e. to ensure the
existence of a letter of credit. You can also carry out credit limit checks to
find out about a customerís credit history well before the goods are
delivered.
It is possible to optimize the picking process by using wave-based picking,
creating work packages that correspond to warehouse capacity. Further
capabilities include two-step picking for greater efficiency when preparing
deliveries for diverse customers and cross-docking for rapid transfer to
the staging area.
Warehouse Management System
Warehouse Management System
Rich functionality for outbound processes
The SAP Logistics Execution System allows you to define sophisticated rules for packing, and to automate the packing process itself. You can set limits on volume and weights, preventing potentially expensive mistakes being made. When it comes to actually loading the goods, the synchronization links provided by the SAP Logistics Execution System between transportation and warehouse management processes mean tangible benefits. You can be sure of loading the right goods onto the right truck at the right time. You can create shipping documentation, such as delivery notes or bills of lading, and send an ASN to your customer.
Value-added services
In todayís fiercely competitive environment, value-added services are essential to profitability and customer satisfaction. Support is provided for a variety of such services, including special types of packaging, customized or one-time labeling. The SAP Logistics Execution System also equips you for the particular needs of hazardous materials, e.g. allowing you to include prescribed specifications in printed shipping documents.
Warehouse Management System
Planning and monitoring
SAP LES gives the warehouse supervisor na overview of the expected
workload and the capacities at the earliest possible point in time. This
allows him to reschedule staff assignment or to hire temporary staff. The
warehouse alert monitor gives due warning of processes that have not
been finished on time or that are still incomplete. Using this tool, the
supervisor can drill down to the process itself and analyze the situation in
detail and then initiate the right response. In fact, the SAP Logistics
Execution System includes extensive reporting and analysis capabilities.
Decision-makers can use standard reports or trigger ad hoc queries.
Many types of analysis are supported, from ABC analysis of warehouse
movements to overviews of delivered goods per region, etc.
Warehouse Management System
Warehouse technology
Stand-alone component
The SAP Logistics Execution System is not tied to an SAP environment, and
can be operated as a stand-alone component for distribution centers, if
neccessary.
Support for new technology as it emerges
SAP has developed, and continues to develop, support for the latest and best in
warehouse technology, as and when it emerges. This now includes direct radio
frequency capabilities, enabling your workforce to capture data on-thespot for
greater accuracy and productivity. The Warehouse Management System also
has certified interfaces for time-saving data exchange with warehouse
equipment such as automatic storage and retrieval systems (ASRS), pick-to-
light systems and other state-of-the-art technologies.
Warehouse Management System
Transportation Management System
Transportation Management System
Conceito
The SAP Logistics Execution System helps you manage multi-modal
shipments with ease and effectiveness. It treats transport as an integral
part of your supply chain, and allows you to optimize transportation plans
and execute all transport moves. You can optimize the utilization of
resources and keep a close eye on costs and profitability.
Integrated shipment scheduling and routing
With the SAP Logistics Execution System, you can create schedule and
route plans with great speed and accuracy. These allow you to provide a
reliable service to your customers, and ensure you make the most
economical, most profitable use of available transportation resources. You
can plan shipments manually or automatically using rule-based selection
and definition of shipments. You can also incorporate shipment
optimization software from SAP partners using open interfaces.
Transportation Management System
Routing
By means of user-friendly point-and-click functions, you can specify the
preferred mode of transport, such as by rail or by truck. You can even
specify the preferred service agent for each and every stage of
transportation, and determine the right transportation route for each
shipment.
Tendering/communications with service agents
The SAP Logistics Execution System is based on a rich pool of master
data on all key aspects of your business process, such as partners and
resources. With this solid information platform in place, you can, for
instance, confidently assign the right carrier to the right shipment, and
determine the right route for that shipment.
SAP has consistently been at the leading edge of communications
technology, and already allows you to capture and transfer data through
timesaving methods such as EDI and the Internet. You can web-enable
practically any aspect of your solution, for instance to allow carriers to
enter data on delivery dates, or to obtain further information on orders.
Transportation Management System
Shipment processing support
You can check the status of shipments at any time, and take immediate
action when and where itís required ñ thanks to the integrated nature of
SAP LES functionality. This ranges from check-in at the gate, to unloading
and loading activities at the dock, to check-out at departure.
Shipment tracking
SAP LES keeps you fully informed of the current status of transportation,
allowing you to respond to customer inquiries and to spot problems or
delays before they become acute. SAP is also developing support for
GPS-based tracking to give you the precise location of trucks and ships
down to a matter of yards.
Transportation Management System
Available to promise
As part of its SCM initiative, SAP has developed a powerful available-to-
promise component. This functionality has been incorporated into the
SAP Logistics Execution System, so you can identify whether and by what
means you can fulfil your customersí preferred delivery dates. You can
see whether you can meet customer needs using existing inventories, or
whether you will need to make additional purchases or issue production
orders.
Foreign Trade
The SAP Logistics Execution System includes full support for cross-
border activities, allowing automatic printout of essential documents, such
as shipping papers, bills of lading, manifest documents and even bar-
coded labels. Moreover, as part of an R/3 environment, you can take
advantage of multi-lingual, multi-currency, multicompany support for all
processes. In addition, SAP LES enables you to exchange data with
customs authorities using the Automated Export System (AES).
Transportation Management System
Freight cost management
The SAP Logistics Execution System offers support for all aspects of
freight cost management. It allows comprehensive costing, automated
self-billing, and efficient settlement of payments for service agents. It is
closely linked to financial and controlling functions, ensuring that accounts
are correct and consistent. The system enables you enter and manage
freight tariffs, surcharges, discounts and the specific provisions of
individual freight agreements. The calculation of freight costs is flexible in
nature, and can be based on weight, volume, distance, mode of transport,
freight class, or even customer-specific agreements, etc. Calculation can
be made using one dimension (e.g. weight) or multiple dimensions (e.g.
distance and weight).
Features such as break-even weight calculations and identification of the
most competitive price for your customers ensure that you keep a healthy
bottom line. You can compare various types of freight and define
minimum freight values. You can also simulate freight charges from within
a sales order to give your customer immediate feedback on the likely cost,
and invoice your customer on the basis of actual rather than estimated
freight costs.
Transportation Management System
Transportation information network
The SAP Logistics Execution System provides a wide range of user-
friendly monitoring and reporting features. You can call up overviews with
point-and-click simplicity or delve into the details using breakdown
methods and other data manipulation techniques. You can compare
actual costs, delivery times and other parameters with your original plans,
and evaluate the performance of various links in your particular process
chain, such as individual service agents. You can also model your
transportation operations on easily comprehensible network diagrams.
SAP Logistics Execution System
Benefits of SAP’s industry-driven approach
SAP operates Industry Business Units (IBUs) dedicated to researching
the true needs of particular groups of customers, and developing the
corresponding software, services and support. SAP LES is not a one-size-
fits-all package, but a flexible solution that takes advantage of the input
from SAPís IBUs, development partners and customers. The result is a
wide range of industry specific functions that can be added to SAP LES in
accordance with your specific-industry, business processes and strategic
goals.
The SAP Logistics Execution System means greater efficiency
Optimize space utilization in your warehouse, increase productivity
through effective coordination of people and resources, schedule and
route transportation for low cost and high revenue, and minimize the
errors that so often plague pick-ups and deliveries.
SAP Logistics Execution System
The SAP Logistics Execution System means greater flexibility
It is a solution that can be geared to many different business scenarios,
and includes support for the involvement of third parties such as
forwarding agents. It can also be adapted on the fly according to new
customer requirements, changes in your business organization or the
emergence of innovative technologies.
The SAP Logistics Execution System means greater transparency
As a highly integrated, user-friendly environment, the SAP Logistics
Execution System provides an overview of all key activities, allows you to
track progress and positions of goods in transit, to monitor the status of
orders, and to act on the insight gained. It also provides links to other
business applications, and includes powerful analysis and reporting tools
for decision-makers.
SAP Logistics Execution System
Efficiency throughout your entire supply chain
The SAP Logistics Execution System is part of SAP’s SCM initiative,
providing powerful, state-ofthe-art support for the processes involved in
warehouse and transportation management. It is comprehensive,
integrated and open. It is easy to implement, and adapt. And it is also
much more than just software. It is a complete solution, backed by
carefully selected partners and the services and support of SAP, one of
the world leading IT players.
SAP LES is an independent component. It is fully integrated with the R/3
System via open standard interfaces.
SAP Logistics Execution System