Transportation and Shipping

7/24/2019 Transportation and Shipping

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India SAP CoE, Slide 1

SD2003 - SD Transportation &

Shipment v 1.0


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SD Transportation & Shipment

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Purpose

Transportation and Shipment are the essential elements inthe logistics chain. It affects both incoming and outgoinggoods.

Effective transportation planning, ensure that shipments aredispatched without delay and arrive on schedule.


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Use

The transportation function can handle planning and processing ofoutbound shipments (also inbound shipments) , thus, control andmonitor the entire process from warehouse to the customerssite.

In shipping processing, all delivery procedure decisions can be madeat the start of the process by

1. Taking into account general business agreements with your customer

2. Recording special material requests3. Defining shipping conditions in the sales order

The result is an efficient and largely automatic shipping process inwhich manual changes are only necessary under certaincircumstances.


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Challenges

Delivering on customer commitments, are increasingly critical torevenue, profitability and customer loyalty, for the transportation andlogistics providers. This is especially true in environments wherecompetition is intense, costs are rising and margins are dwindling.

By deploying workforce management technology such assophisticated dispatch, scheduling, mobile, and GPS solutions,implementing ERP packages, leading companies around the world

are dramatically improving service capabilities, competitivedifferentiation and corporate performance.


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Transportation Process Overview

.Sales Order

Outbound Delivery

Transfer Order

Packing Station

Shipment

Post Goods Issue

Create Output

of

Delivery List

Create Output

for

packing List

Billing Document

TRANSPORTATIONPROCESS

ConfirmTransfer Order


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Transportation Planning Point

Transportation planning point consists of a group of employees responsiblefor organizing transportation activities

Each shipment is assigned to a specific transportation planning point for

transportation planning and shipment completion

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


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Prerequisites for TransportationFor a delivery to be relevant for transportation , the pre-requisites are asfollows:

The delivery type must be flagged as relevant for transportation inCustomizing.

All the Outbound deliveries must contain a route.

The routes of the deliveries must be flagged as relevant fortransportation in Customizing.

The transportation blocking reason in the delivery header must beblank.

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



Shipping Process Overview

Shipping processing include:

Monitoring of deadlines for reference documents due for shipping (eg, customer orders and PO)Creating and processing outbound deliveriesMonitoring goods availabilityMonitoring capacity situation in the warehouse

Support for picking (with link to the Warehouse Management System)Packing the deliveryPrinting and transmitting shipping documentsProcessing goods issueControlling through overviews of:

- deliveries currently in process- activities still to be performed- possible bottlenecks

GoodsIssue

Shipping

Document

Packing

Picking

Shipping relevant functions

Shipping Point DeterminationRoute DeterminationScheduling

Shipping Point

Monitoring Shipping due dateCreating the Delivery

.



Shipment Types Individual Shipment

An individual shipment can have more than one delivery , one point of departure , one destination andonly one mode of transport

Collective Shipment

A collective shipment can have more than one delivery ,multiple points of departure , many destinations

but only one mode of transport

Transportation chainA transportation chain can have more than one delivery ,multiple points of departure , many

destinations and multiple modes of transport

Shipping point

Mumbai

Customer

Kolkata

Shipping point

Mumbai

Customer

Kolkata

Customer

Nagpur

Delivery 1

Delivery 2Delivery 1

Shipping point

Nagpur

Customer

ChennaiPort of Departure

Mumbai

Port of Destinati on

Chennai



Shipment DocumentThe 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 EDImessages)

Define transport-relevant texts



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 vendormaster)

If an external transportation planning system is being used, then thefreight 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 ashipment.



Creation of ShipmentsShipments 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:

Combine deliveries into one inbound or outbound shipment

Specify shipment stages

Legs



Assign goods to handling unitsAssign 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)

Delivery #---- ----

---- ----

---- ----

---- ----

Delivery #

---- ----

---- ----

---- ----

---- ----

Delivery #

---- ----

---- ----

---- ----

---- ----

Delivery #

---- ----

---- ----

---- ----

---- ----

Delivery #

---- ----

---- ----

---- ----

---- ----



Automatic Leg DeterminationImportation 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 automaticallydetermined as soon as overall status of shipment changes toPlanning completed



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.


The point where a shipment is unloaded from one means of transport and loaded onto

another.


The point where a shipment crosses the border.

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.

Stagesof ShipmentBorder crossing point

A BPartner: Forwarding agent

Border crossing pointA

Partner: Customs Broker

Border crossi ng point

A

Partner: Forwardingagent



Packing for Shipments

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

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

Outbound Delivery

--------------------------------

Carton 1

Carton 2

Carton 3

Carton 4

Pallet 1

Pallet 2

Container 1

.



Text Determination For Shipment

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)

Text Object be longs to ?

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

Customer



Output Determination For ShipmentsOutput 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.

Packing ListPL00

Shipping OrderSA00

Material TagWA00

Delivery Note

Quality CertificateLQCA, LQCB

Shipping Label0001

Fright ListLL00

Outbound ShippingNotification LAVA

Example of Outputtypes in Shipping

Output

Transmission Media

Printer

EDI

SAP office

TelexExternal




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Menu Path For Shipping & Transportation -

ConfigurationSPROSAP Reference IMGLogistic Execution ShippingSPROSAP Reference IMGLogistic ExecutionTransportation



Shipping Point & Goods Receiving Point

Determination - Configuration

Define Shipping Conditions

Define Loading Groups

Assign Shipping Point

IMGLogistic Execution ShippingShipping Point and Goods Receiving Point Determination

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



Define Rule for Determination of Shipping

Point - Configuration

Assign Shipping Points

IMG Logistic Execution Shipping Basic Shipping FunctionsDefine Rule for Determination of Shipping Point

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



Define Routes - Configuration

Define Modes of Transport Define Shipping Types

IMGLogistic Execution ShippingBasic Shipping FunctionsRoutesDefine Routes

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.



Transportation Connection Points -

Configuration

Define Routes and Stages

IMGLogistic Execution ShippingBasic Shipping FunctionsRoutesDefine Routes

Aconnection point can be one of the following:an airporta border crossinga railway station



Text Determination - ConfigurationIMGLogistic Execution ShippingBasic Shipping FunctionsText Control

Select a text object and define the rules for text determinationfor 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.



Route Determination Configuration

Define Transportation Zones Define Transportation Groups

Maintain Route Determination

IMG Logistic Execution Shipping Basic Shipping Functions Routes


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Shipments - Configuration

Maintain Transportation Relevance

IMG Logistic Execution Transportation Basic Transportation Functions Shipments


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Define Shipment Types - Configuration

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

IMG

Logistic Execution

TransportationBasic Transportation Functions Shipments

Define Shipment Types


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Maintain Transportation Planning PointIMG

Logistic Execution

TransportationBasic 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


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Defining 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

IMG

Logistic Execution

TransportationBasic Transportation Functions RouteDefine Routes Define Shipping Types


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Shipment Execution And Monitoring

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 overallstatus of all shipments.

Log ist ics Executio n Transportat ion Transportation Planning Lists and Log s

Shipment Proc essing Mon itor.


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Create Master Data

Create Customer Master dataLogistics Sales & Distribution Master Data Business Partners Customer Create

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

Create Vendor Master DataLogistics Material Management Purchasing Master Data Vendor Central Create

Vendor master is the business partner who may provide transportation serviceand is the business partner with whom the final transportation cost will be settledin G82.

Creating Transportation Condition Records

Logistics Logistic ExecutionMaster data TransportationShipment cost Prices

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


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Create Delivery Order


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Create Transfer OrderA 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


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Confirm Transfer OrderBy 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 forthe 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 theconfirmed 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 ShipmentAdd 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.


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Post Goods Issue For ShipmentsChoose Log ist ics Executio n Outbound Process Goods Issue for Outbound Del iveryPost Good s Issue Col lect ive Processing Via Outbo und Del ivery Monito r.

We can post goods issue for an entire shipment.


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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

Important Transaction Codes


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Billing methods

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 paysthe ocean shipping/air freight costs to Los Angeles including the insurance).

Documents

Transportation and Shipping