SD-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 com pany warehouse, production facilities, and distriution centers to the customer. The LE processes include! •The goods receipt process! "oods pic#up from the vendor and put away in the company$s warehouse. •The goods issue process! %ic#ing the goods and delivering them to the customer. •Internal warehouse processes such as posting change, stoc# transfer, and inventory. •The shipment process! Inound and outound shipments, and shipment cost calculation and settlement.

Transportation •& shipment represents a physical goods movement etween two or more locations. 'in usiness •Transportation is a essential element in Logistic chain •&ffects oth incoming and outgoing goods •Transportation costs also play an essential role in calculation in price of a product, thus necessary to #eep transportation costs low •Transportation is carried out through *hipment +ocuments 'in *&%

Organizational structure - Shipping

Transportation planning point

ompany code ompany code

Transportation TTransp ranspoortation rtation pplanning lanning ppoint oint

%lant %lant

**ttoorraaggee llooccaattiioonn

** hihpip pipnig ngpo pionitnt

-arehouse -arehousenumer  numer

Loading Loadinpoint g point

Transportation planning point

employees responsile for organiing organiing transportation activities / what what   & group of employees to ship, when to ship, how to ship, s hip, where to ship  Each shipment has to e assigned to a specific transportation planning point for  carrying out the transportation planning

-hat to *hip000

1ow to *hip000 *hipping +ocument with all the details

-here to *hip000

-hen to *hip000

Transportation planning point Transportation %lanning %oint according to our company2s needs, for   -e can have Transportation example, / according to geographical location or  / mode of transport.

Road

1ow many Transportation planning point should I have00

Sea

United States +epartment of 

Transportation planning point

•

Transportation planning point is created in transaction 345T or menu path! I6"  Enterprise *tructure  +efinition  Logistic Execution  6aintain Transportation %lanning point  &ssign Transportation Transportation point to a company code

•

This assignment is relevant for shipment costing and settlement only.

•

Shipping point determination

Route  7oute is a fundamental asis to t o create and plan shipments in *&%  7oute is 8%athway9 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 s uch as 4a 4andor, ndor, transportation transportation relevance, Transit time etc  *ystem determines 7oute in a sales document which can e copied to +elivery document and further in a *hipment document.

Route determination

Route controls  -hen route is determined, lot of information is determined for the shipment document  7oute maintenance and route determination maintenance is carried out under path! I6"; Logistic Execution; Transportation; asic Transport functions; 7outes

Outbound deliver and shipment

Transportation and Transportation cost

Shipment - Terms to understand

 Transportation connection point  *tages  Legs  7outes

Transportation connection point

 & connection point can e one of the following!  an airport or a haror   a order crossing  a railway station  a load transfer point

>amshedpur  Truc# ?actory *hipping point

>@%T

@avi 6umai *ea port

*ea

7otterdam *ea port @L

+resden 7ail

Transportation !onnection point

+E factory ustomer 

Stages

 *tages contain information aout geographical factors for a shipment  an e a Load transfer point, order rossing point or Legs  Load transfer points! The point where a shipment is unloaded from one means of transport and loaded onto another.  order crossing points! The point where a shipment crosses the order.  Leg! & eginning point and end point is defined

Legs

Shipment Legs

*hipment leg is formed with connection etween eginning point and end point. The following can e eginning points or end points!  Transportation connection point (train station or port, for example)  *hipping point (or loading point)  %lant (or storage location)  ustomer location (may include customer2s unloading point)  4endor loading point  ?reely/definale address

Stages  Legs Tpes o" Legs  %reliminary leg (if leg2s departure point A +elivery +eparture point)  *useBuent leg (if leg2s destination point A +elivery +estination point)  6ain leg (if leg has oth departure point and destination point)  +irect leg (if the leg lin#s the delivery departure point directly to the delivery destinationC and there are no more items to deliver)  7eturn leg (if the leg lin#s the delivery destination to the depot / where it has started from)

Load Transfer %oints

>amshedpur  ?actory *hipping point

Truc#

&reliminar Leg

>@%T @avi 6umai

Load Transfer %oints

*ea

'ain Leg

7otterdam *ea %ort @etherlands

7ail

#resden $actor location %erman

Sub se(uent Leg

Tpes o" Shipment ased on the different forms of transportation, transportation, the shipments can e categoried as elow  Individual shipment  ollective shipment  6ultimodal transport: Transportation chain

)ndividual Shipment Individual shipment! (*hipment type DDD= provided y *&%)  &n individual shipment includes/ includes/ 3ne or more deliveries 3ne point of departure 3ne destination 3ne mode of transport

!ollective Shipment ollective shipment! (*hipment type DDD< provided y *&%)  & collective collective (or mil#/run) mil#/run) shipment includes includes 3ne or more deliveries *everal points of departure *everal destinations 3ne mode of transport

+elivery < (to -al6art)

+elivery <

+elivery =

+elivery = (to  6art)

6ain Leg

*useBuent Leg

+elivery <

Transportation !hain Transportation chain: 6ulti/modal transport! (*hipment type DDDF,DDDG,DDDH provided Transportation y *&%)  & transportation chain is useful if you you are dealing with with deliveries that will e transported using multiple modes of transportation (and are thus processed y different departments at the transportation planning point). •3ne or more deliveries •*everal points of departure •*everal points of destination •6ore than one modes of transport

*usiness Scenario - Transportation !hain ustomer / erlin

Shipment #ocument +

Shipment #ocument ,

Shipment #ocument 

*usiness Scenario - Transportation !hain ustomer / erlin

Shipment #ocument +

*usiness Scenario - Transportation Transportation !hain- !hallenges Ahead If you want to depict a transportation chain within a single shipment document, you must also accept the limited functions availale to you.

Reason! &lmost all shipment document functions refer to the document as a whole!  3utputs can only e printed for the entire document, not for individual legs  *hipping units (%allets, ontainer, etc) can only e created for the entire document, not for  individual legs  The same is valid for texts, deadlines in general, etc.

#etermination o" Legs  =2! Leg determination according to ITI@E7&7J (as per the order of deliveries in the

shipment document)

#eliverShipping &oint !ustomer.s !ustomer. s #estination +

!incinnati

#enver

,

!incinnati

#allas



@ew Jor#

1arrisurg

+elivery = and <

!incinnati

Truc/ 

%reliminary Leg

@ew Jor#

+elivery =,< and K

Truc/ 

6ain Leg

+elivery < and K

#enver

Truc/ 

*useBuent Leg

+elivery K

#allas

Truc/ 

0arrisb urg

*useBuent Leg

#etermination o" Legs  <2! & type of leg determination in which a preliminary leg is created for each starting

point and a suseBuent leg is created for each destination point.  This type of leg determination is used for transporting deliveries that are to e sent y

sea in a group, ut originate from different shipping points or are to e transported to different ship/to parties.

+elivery <

1ashing ton

+elivery = and K

%reliminary Leg

Shipping #eliver &oint +

!ustomer.s #estination

2ew 3or/ 

,

*erlin

1ashington



#resden

2ew 3or/ 

+elivery =,< and K

6ain Leg

+elivery <

#resden

erlin

+elivery =,< and K

*useBuent Leg

+elivery =,< and K

+elivery = and K

*useBuent Leg

#etermination o" Legs  K2! & type of leg determination in which a preliminary leg and a suseBuent leg are

created for each delivery. This leg determination type is used for transporting extensive amounts of goods that must e distriuted among multiple deliveries ecause one delivery would not offer enough capacity.

Shipping !ustomer.s #eliver&oint #estination +

+elivery <

2ew 3or/  ,

%reliminary Leg

2ew 3or/ 

+elivery = and <

6ain Leg

+elivery =

erlin

1ashingt

on

+elivery =

#resden

#resden

+elivery = and <

+elivery =,<

*useBuent Leg

+elivery <

*useBuent Leg

#etermination o" Legs  F2! *ame as =C ut shipping type for %reliminary and suseBuent legs are changeale

in the shipment document

 D2! 3nly determine assignment of deliveries to the stages  ?or 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.

 lan#! @o leg determination  ?or documents in which legs are not relevant (Ex!

Empty shipments)

#etermination o" Legs - 'anual !hanges  -e can manually add the stages with the stages which are determined automatically  -e can specify the different 6ode of transport, service provider details, Inco terms for 

the stages newly entered

Transportation relevance - !ontrol  ?or carrying out transportation following should e relevant for transportation / +elivery type / +elivery item category / 7oute

Transportation;  This is done under menu path! I6"; Logistic Execution; Transportation; *hipments; 6aintain Transportation relevance

!ontrolling shipments4 )'% Shipment #ocument Tpe Tpe

 ompletion type

 %rocess control  *ervice level  Leg indicator   *hipping type  Leg determination type  opying data  3utput determination

 Text determination  +efault 4alues

enu &ath4 )'%5 Logistic Execution5 Transportation5 Transportation5 Shipments5 #e6ne Shipment t

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 inound or outound deliveries in inound or  outound shipment respectively

)denti"ing the status o" the shipment

 7ed / %lanning is completed. *hipment status planned  Jellow / &ctivities in %lant. Loading start  end  "reen / %rocessing:*hipment is completed

)denti"ing the status o" the shipment

 & shipment can have various statuses which uniBuely identifies what activity still needs to e done, and what activity has een completed

• %lanned  *hipment2s %lanning is complete • hec# / in  4ehicle arrives at the %lant • *tart Load  Loading goods into the 4ehicle egins • End Load  "oods are fully loaded into 4ehicle • *hipment ompletion  @ecessary documents are created (li#e ill of Lading, material safety data sheets) and will e issued to the respective persons

!reating Shipment documents  6anual reation  6anual creation using planning proposal (use of planning profile)  &utomatic creation using collective processing / online  ac#ground  Interfaced to an external transportation planning system (ex! *&% &%3, LE3 / an 37TE product)  Transactions used for creating shipments are

/ 4TD=@ / *ingle +ocument / 4TDF / ollective %rocessing / 4TDM / ollective %rocessing in ac#ground

&lanning pro6le  To create shipments and fill with default data (used during collective processing) 74GHT7"@ (all the profiles are variants of this program)  %rogram! 74GHT7"@

R789TRS&

R789TRTR

Activit &ro6le

 ?or each status completion, we can decide an &ctivity profile2  &ctivity profile determines the activities carried out when a specific status is set for the shipment document  &ctivity profile is accessed and maintained under menu path! I6"; Logistics Execution; Transportation; Transportation; *hipments; +efine and assign activities profile

(all the activities are variants of this program)  %rogram! 74GH&*T (all

Activit &ro6le

Standard Reports available in SA&

 Ntiliation report / 4T=F/ displays shipments that are not utilied to full capacity

 Transport Execution 6onitor / 4T
Salient $eatures in SA&  -ill e ale to select deliveries with specific criteria to attach in a shipment (screen info for  delivery selection)

ender der *tatus (7eOected y ?orwarding &gent, &ccepted &ccepted y ?& with with  *hall capture the Ten conditions, 3ffer ancelled, etc)  +elivery may e split up into two or more shipments if they do not fit on to one truc#  -ill e ale to update ?orwarding agent: transportation planning department with a maximum price which you can offer for a shipment while tendering  -ill e ale to see the estimated costs for a shipment once it is fully planned  -ill e ale to Buic#ly adOust the transportation plan y changing the mode of transport, the L*%,, and even the route if necessary L*% n ecessary  -ill e ale to #eep trac# of changes made in the shipment document  -ill e ale to copy the details (li#e ?orwarding &gent, 7oute, *hipping type, +eadlines) from delivery into *hipment document automatically  -ill e ale to maintain translation according to the usiness needs for 7outes, onnection points, *tages, etc

Shipment processing - Summar

Shipment !osting

1h should ) pa::: 1hat it is:: -

Shipment !osting - &rere(uisites

1ave my shipment has a service 1ave my shipment agent000 has a service agent000

1ave my shipment attained the minimum status000 1ave my shipment attained the minimum status000

Is my shipment relevant for  Is myshipment shipmentcosting000 relevant for  shipment costing000

Shipment !osting - steps involved

Shipment !ost document structure

Shipment cost document - Structure  *hipment cost items either refer to a shipment header or shipment stages  &n shipment cost item can refer to *hipment header as insurance charges are for complete shipment  &n item can refer to shipment stages as load trans"er charges could be

charged to each Load trans"er point ;Stage< categor=  These functions are controlled through shipment cost item categor=

*hipment 1eader  1eader 

*hipment cost Item

*hipment *hipment*hipment cost Item < *tage *tage = = *hipment *hipment *tage *tage < <

*hipment cost Item <

$actors deciding shipment costs ?actors which decide *hipment osting  Transportation planning point  *ervice agents / *ervice agent group (attached to vendor master)  Truc#, *hip, %lane / *hipping type procedure group 'TPM<  Leg, order rossing point, ustoms / Item determination group 'TPM= Transportation / *hipment osts / %ricing / %ricing ontrol / +efine &nd &ssign  6enu! *%73 / LE / Transportation %ricing %rocedures

Shipment !osting - &ricing - !alculation *ase *ome of the factors which can act as a alculation ase to carry out %ricing  "eographical information (%oint of departure and destination / Legs) and the distance to e travelled and the -eight loaded  1andling Nnits (arton pac#aging, %allets)  +elivery (To whom we deliver the goods)  +elivery Items

Settling Shipment cost - 0ow can we do in i n SA&:::  The settlement of shipment costs with the service agent is carried out per shipment cost item.  This Settlemen Settlementt includes two ma>or activities  &ssignment and forwarding of the shipment costs to ?I and cost accounting for  creation of accruals and posting of payales  &utomatic settlement using the self/illing procedure or manual settlement with the transportation service agent

Shipment cost settlement

Shipment cost settlement - account determination Transaction and  ":L account +etermination for Inventory %osting with " Transaction 47 "eneral 6odifier ey (T ode! 3J)  ":L account +etermination with -75 Transaction

Shipment cost settlement - #etermining &O ?actors which need to consider for settling shipment costs  %lant, %urchasing organiation, %urchasing group  *ervice agents  Transportation planning point

)ntegration4 66 should have created a purchase order with the vendor  &re-re(uisite4

 *ervice agents 'from *hipment item organiation 'from item item detail! *ervice procurement procurement  %urchasing organiation

 %urchasing group 'from item detail! *ervice procurement  %lant 'from item detail! detail! *ervice *ervice procurement procurement  Item category '*ervice / +

$reight !ost Estimate - A "eature in SA& SA & 1elps transportation planner to simulate *hipment osts during *hipment %rocessing The planner can change shipment data such as the forwarding agent, shipping conditions, mode of transport, and can calculate his shipment costs on the asis of  this data.

*illing Shipment costs to the customer cus tomer in SA& - $eature in SA& / The shipment costs that are illed to the customer are ased on the actual actual shipment costs. / The shipment costs appear appear as an additional entry in the customer illing document.

*illing Shipment costs to the customer cus tomer in SA& - $eature in SA&  +elivery to illing copy control! 4T?L (#eep price source as ? / *hipment costs)  Ensure the shipment condition type exists in *+ %ricing procedure  6ap the LE condition type to *+ condition type in TP4 (in case of custom conditions)  6ap the condition tales if we have access seBuence assigned to the condition type

Simulate Shipment costs at the order level - $eature in SA& / for example, to determine whether transport y lorry or y train would e cheaper  or how much more it would cost to send y express delivery rather than y standard transport.

Than/ 3ou