Execution Systems - Technology Structure, Logistics Management Video Lecture | Logistics Management - B Com

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thank you very much for joining me again
this is a fresh unit on goods issue
processing now in this set of videos
were going to be looking at the various
processes and scenarios that fall under
goods if you postings and you'll find
that a lot of what we're going to look
at is it's going to be very similar to
what we've already seen in goods receipt
processes but the few things that are
going to be unique to goods issue
processing that would look at so in
summary
we're going to look at goods issue
posting the different types of goods
issue postings we're going to look at
stock remove over transfer orders when
we are doing goods issues and we also
going to look at how we process returns
deliveries this is usually called
complaints processing and we're also
going to take a brief look at
transportation planning and how we can
go about that in the system in this
introductory session we're just going to
go over an introduction to Goods receipt
processes we'll look at stock removals
for cost centers stock the movements for
work orders and stock removals with
transfer orders we're also going to
touch on picking areas an interesting
concept a critical concept in goods
issue processes so we'll first look at
the the first type of goods issue that
is a good issue posting and subsequent
stock removal this type of goods issue
does not involve an outbound label
document so the first scenario would be
stock removal for a cost Center the cost
Center can represent a department in the
organization typically what happens in a
company is that sometimes departments
request for certain materials to be
removed from storage and brought our
made available for them for use for
different purposes so that's what's
going to be addressed by this process
stock removal for a cost center so this
process begins with a goods issue in
inventory management and this goods
issue is going to be followed by the
creation of a transfer requirement
because once we've issued our goods in
inventory management we need to work on
stock removal which is a
house management process and a transfer
requirement is going to be generated of
course alongside a material documented
an accounting document to take into
account to the removal of stock from
these storage locations there has to be
a material documented an accounting
document created much like inventory
management with goods receipts this is
also going to be happening with goods
issues now an interim storage area for
goods issues is also going to be created
and this is basically a staging area in
which we are going to have the goods
that have been removed forms from
storage city before they picked or
loaded so this is the place where they
are going to be stored before they are
made available to the cost Center now
with reference to the transfer
requirement we have to create a transfer
order the transfer order is created and
for the removal of the particular
material and in this transfer order
information such as the receiving
storage type storage bin for the goods
issue area which is the staging area
where the goods are going to be placed
before they are made available to the
cost center this information is going to
be found in the transfer order and it's
going to be obtained from the transfer
requirement
now once the con the transfer order has
been confirmed meaning that the goods
have been moved once the transfer order
has been confirmed the process is
complete and the material is now
available to the cost center so just to
run through it stock removal for cost
center kicks off with the goods issue in
inventory management a transfer
requirement is generated warehouse
management is involved and with
reference to that transfer requirement
we get a transfer order transfer order
which contains the interim storage area
for goods issue area and so on and so
forth and once that transfer requirement
is generated with trade a transfer order
with reference to it and when the
transfer order is confirmed
meaning the goods or the stock has been
removed from storage then that's when
the material is made available to the
cost center so much like what we had
with our would the receipt process we
also want to make use of the concept of
negative quants with goods issues
negative negative corns are going to be
used because when we have our goods
issue in inventory manager
and inventory management stock quantity
is going to drop but these don't
immediately drop in warehouse management
because we haven't performed stock
removal this is since goods issue kicks
off the process and it's followed by
stock removal so beef between the goods
issue and stock removal there's bound to
be an imbalance in stock quantities but
by using negative coins as we've seen
before we are able to account for this
difference and we are going to record
the the stock that has been removed as a
negative quantity in order to keep
warehouse management and goods issues in
balance so we this negative quant
is cleared the negative quantity is
cleared one stock removal is complete
the second category of goods issue that
we are going to look at that does not
involve the out part delivery document
is the stock removal for our work order
now this is mapped pretty much the same
way as the cost center stock removal it
starts off with a Goods issue a goods
issue is posted for that work order and
we also have the same concept of
negative coins created in the interim
storage area for work orders and
following that we create our transfer
requirement and then finally we wind up
with our transfer order and the
confirmation of this transfer order is
what's going to complete our process
also what's going to clear the negative
Kwan's that have been created in the
interim storage area for work orders
this is basically almost exactly as what
we have when were removing stock for
cost Center and the only difference
would be probably the movement types and
the interim storage areas but otherwise
goods issue storage removal for cost
Center and storage you removal for work
orders pretty much mapped the exact same
way a key point for us to take into
account is the use of transfer orders
for stock removal so let's just take a
moment look at stock removal with
transfer orders there a few steps that
the system takes one more performing
stock to move over
transfer orders and the first one would
be issuing determining the issuing
storage type now in customizing there's
what we call a search sequence it
default search sequence that a
consultant may set or specify for a
particular warehouse number and this
will only cut the system's work short
because it only refers to that
particular search sequence when
determining an issuing storage type the
alternative way to set to set up the
search sequence would be to place a
special stock indicator in material
master in the master data for the
particular mat for a particular material
which can also instruct the system as to
where a particular material must be
removed from so in summary we either use
customizing settings or we use material
master to guide the system in
determining which storage type is going
to be issuing the particular material
that is required now if you've been
following these videos from the earliest
sessions that we've had you you remember
the concept of storage sections that we
went through and we said is at the same
level as picking areas and just as a
reminder storage sections we say that
these are created within storage types
as a means of partitioning our storage
spaces partitioning these storage spaces
according to various requirements for
material storage and we gave the example
of certain materials that may need to be
stored in refrigerated areas or some in
more heated areas for different storage
reasons and so we come up with storage
sections as a means of partitioning
goods that are to be put away in into
storage based on their storage
requirements and now with goods issue
processes we have a similar grouping of
products which we call a picking area
now picking areas as we look at them
with regard to goods receipt processes a
section within a storage type
just like storage sections there are a
section within a storage type in which
all picking activities are carried out
in the same way so products goods
materials with similar picking
requirements a group according to a
picking area so for example we can have
we have what we call cross transfer
order picking lists which can be printed
based on these picking areas and these
cross runs the order picking lists will
contain material quantities sorted by
picking area which means that the
picking process that each of these
materials are going to go through is
going to be different material or
different per picking area now this
results in what we call transfer order
splits which are based on the different
picking areas that are represented by
the materials that are listed or not
transfer orders so in with effect we are
actually going to have multiple transfer
orders resulting from this transfer
order split now the advantage of having
such a scenario is that it speeds up our
shipping process because particular
picking areas can be assigned to
separate employees and when the system
is printing transfer orders it then
makes it possible for printing of
transfer orders to be separated for the
specific employee that takes care of a
particular picking area instead of
having one transfer order and that
represents all goods that are going to
be picked in different in different ways
based on their picking areas every
employee can receive a transfer order
that is only specifically catered for
their particular picking area so
separating goods according to their
picking requirements is very useful
especially in terms of speeding up the
shipping process by making parallel
picking possible now we are going to
take a look at outbound deliveries now
upon delivery is a a lot like inbound
deliveries
not really one for one but outbound
deliveries have
of shared characteristics with inbound
deliveries not only in terms of their
structure but also in terms of the way
they work the way any function and so
what outbound delivery is basically what
we have is an outbound delivery is
created with reference to a sales order
and sales orders as we know at this
point are created in sales and
distribution as we probably should know
at this point our sales orders are
created from sales and distribution and
now as you create a sales order the
system performs what we call scheduling
now we're going to look at scheduling in
greater detail but scheduling occurs at
sales order level when we create our
sales order the system is going to
determine key dates associated with the
delivery cycle at sales order creation
and now when we save our sales order
were then able to create an outbound
delivery with reference to that sales
order and as we create our outbound
delivery the system determines what we
call our picking location which is also
known as our storage location in that
particular are bound delivery and now
when we have our storage location
determined the system then checks our
storage location to determine whether
the storage location is warehouse
managed now this is a very key thing the
process and how this goes on is very
different where a storage location is
warehouse managed and weight isn't where
inventory management is able to complete
the process without warehouse management
and where this whole process leads
heavily on warehouse management it's a
very key thing to note and so the system
determines whether the storage location
is warehouse managed and if so the
system is then going to go ahead and
display the warehouse number associated
with that particular storage location
and the system in the outbound delivery
is also of course going to deeply
display our overall picking status and
the stock removal status for the
particular order and
now when the system shows us our stock
Lenovo status the user can be able then
to determine whether or not the transfer
order it transfer order is going to be
needed for stock removal in this case
now just to take a few steps back to
sales order creation it's important for
us to go back there because two
important things occur first of all we
have shipment scheduling where the
system is determining particular dates
that are going to be very key in the
entire delivery process so we just want
to look at how the system comes to those
dates we also want to look at shipping
point determination which also occurs at
sales order level and finally we also
want to look at route determination
which is just a short one that's a very
brief one so just going to go back to
sales orders now when we create a sales
order three particular things occur as
I've just mentioned first of all the
system comes up with a requested
delivery date secondly the system is
going to perform shipping point
determination and lastly the system is
going to come up with who is going to
perform an audit determination
now if shipping point determination and
drug determination depend heavily on who
the sword to party and ship to party are
these are basically partner functions
and sales and distribution we're not
going to go into detail on those but
they are basically the basis for the
determination of our shipping point and
our routes
okay now firstly we're going to take a
look at shipping point determination now
the shipping point is a very critical
organizational unit in logistics
execution as a matter of fact without
the shipping point we cannot process
outbound delivery we cannot process any
outbound deliveries without having a
shipping point it's a key and the very
highest organizational unit when we're
dealing with shipping and so to come up
with a shipping point or to suggest or
determine a shipping point the system
uses particular information
namely the shipping conditions the
loading group and the delivery plant so
a combination of sick of shipping
conditions loading group and delivering
plant give the system a shipping point
in customizing what happens is that a
different range of shipping conditions
load in groups and delivering plants a
different combination of these objects a
maintained and each combination has a
shipping point assigned to it so now the
system uses shipping conditions which it
finds in customer the customer master
code and using it uses a loading group
which it finds in the material master
data and a delivering plant which it can
either find in customer master data
material master data all the customer
material info record if it exists and it
uses this combination of these objects
to determine a shipping point which is
set in customizing and now once this
shipping point is set this is where the
deliveries are going to be processed
from now it's also important to note
that each delivery is processed by
exactly one shipping point and for
example if a number of materials are
involved and the system comes up with
different shipping points then what
happens is that a outbound delivery
split is going to occur based on
shipping point because each delivery has
to be processed by an individual
shipping point so if a collection of
materials is involved in a sales order
and these materials for example have
different loading groups one is loaded
by a crane using cranes for example the
other is loaded via maybe it's a liquid
and it's pumped the system is going to
determine separate shipping points in
that situation and this means that one
more processing the outbound delivery a
delivery split is going to occur based
on these separate shipping points and
separate delivery documents are going to
be created
each of the materials involved secondly
when we take a look at the route
determination
now routes are basically logistics
execution master data and they stand for
a difference between two destinations
the difference between two locations now
in order to determine routes to
determine which route the system is
going to assign to a particular delivery
the system goes through a route
determination procedure and the router
termination can only be carried out
after the shipping point is determined
because the the shipping point is it
contains information that the system
uses in determining the particular route
for that delivery so when the system is
performing our determination it looks
for firstly the departure zone now the
departures owners have just mentioned
the shipping point is very critical in
the route determination process because
the departure zone is found from the
shipping point for every shipping point
that is defined a departure zone is
automatically assigned to that shipping
point secondly the system is going to
look at shipping conditions which we've
established a taking from our customer
Master I could the customer must record
of the so to party the system is also
going to look at the transportation
group now the transportation group is
found in our material master record and
finally the system also takes into
account the transportation zone which it
obtains from the customer master record
so just to go over that again in
determining the routes the system takes
into account the departure zone which it
gets from the shipping point the
shipping conditions which it gets from
the customer master record the
transportation group we could get from
material master and also finally the
transportation zone which it obtains
from the customer master record now our
determination is critical because it's
basically the basis for transport
planning without route determination we
cannot have transportation planning and
it also gives us a basis gives the
system a basis for calculating certain
dates that are critical in the
transportation planning process such as
a staging day staging dates loading
dates transportation planning dates and
the goods issue date as we will see in
our next topic which is scheduling now
shipment scheduling basically refers to
the process that the system goes through
in determining particular dates that are
critical to the delivery cycle these
dates are namely the staging date the
loading date transportation planning
date and the goods issue date and the
system comes up with these dates in one
of two ways that's either backward
scheduling or forward scheduling so to
start with backward scheduling as the
name suggests the system subtracts a
series of dates from the required
delivery date in order to come to a
conclusive material availability date
typically the system is going to take
the required delivery date and subtract
trends the time that it obtains from
that route to come up with a Goods if
you date from the goods issue date it's
going to subtract loading time and that
will bring it to the loading date from
the loading date the system is going to
subtract lead time to come up with the
transportation planning date and at the
same time picking and packing time to
bring it back to the material
availability date so that's basically
how a backward scheduling occurs the
system is calculating backwards from a
requested delivery date so there are
instances where the system will
calculate backward scheduling and come
up with a material availability date but
unfortunately on that material
availability date there is no available
stock in our storage locations so now
the natural choice or what the system
does next is it's going to perform
forward scheduling and this is when it
picks a material availability date
after having performed an availability
check that is reasonable to determine
the next possible date where stock is
going to be available and it uses this
this this suggested staging date to
calculate further dates now instead of
subtracting as it was doing in backward
scheduling the system is now adding
those four timelines to that much
material availability date and it
proposes as a result a new delivery date
well that will have to just about do for
this session thank you very much for
joining me and to join me for the next
session in which will be going further
looking at our goods issue processes and
possibly we're going to give an
introduction to transportation planning
thank you very much for joining me and
have a good one
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you