Goods marking on cross-docking orders

[rafael_zaragatzky]

Dear colleagues,

Will you please help me with another conceptual issue in IS-Retail? I thought that the difference between the cross-docking and flow-through was that the goods are not repacked in the former case, i.e. the vendor marks the final destination of the goods (the store), so that the DC can merely move the parcel from the receiving ramp to the dispatch ramp and send them further.

However, I see that the system generates vendor orders for the total quantities per article (no split of the total quantity per store). I wonder then how the vendor will know how to pack the goods and mark them with the address of the end destination?!

Or otherwise, what is the idea of cross-docking?

TIA

Raf

[tn_naveen · Accepted solution]

Hi,

You will need to use Supplementary Logistics Services to send the pre-packing information to the vendor. You can read more about it here:

http://help.sap.com/erp2005_ehp_05/helpdata/en/d5/80db24f67211d28cc0080009d10d9a/frameset.htm

Cheers,

Naveen

[rafael_zaragatzky]

Hi Naveen,

Yes, it seems like this function is especially built for ordering pre-packing at the vendor. But this raises a more conceptual, process related question.

Say that my stores need 5, pcs, 7 pcs, 3, pcs, etc. totaling to 50 pcs in all that I have to order from the vendor. I create a collective PO for the 50 pcs with the SLS sub-items for 5, 7, 3, etc. However, the vendor can only delivery 40 pcs. What are the options in the business process?

Option A is that there's agreement that the vendor fills up the sub-items in the defined order, i.e. the first store gets its 7 pcs, the second gets its 5 pcs, but the last stores in the list of sub-items get nothing.

Option B is that the vendor ditributes proportionally. However, I am not sure if all vendors can agree to do such service for us. Besides, the fully proportional distribution is impossible (pieces can't be broken) which means that the stores have to be prioritised somehow.

Option C is that the vendor confirms 40 pcs and waits for new instructions from us about how to split them.

How does it normally work? Is there a general practice in the Merchandise business? If the solution is option C, how is it implemented in SAP?

When I read the documentation about SLS, it left the impression that it is the vendor that decides the split, i.e. option A or B, both having negative impacts on the business as described above.

TIA again,

Raf

[tn_naveen]

Hi Rafael,

You could employ Option C using a custom Function Module attached to your Adjustment Profile in Config. This can be used as long as you have a limited number of rules that you would like to deploy for distribution. If the distribution is adhoc, this might not be a viable option.

The below help has the details:

http://help.sap.com/erp2005_ehp_05/helpdata/en/1b/427f4e12ae11d38cc7080009d10d9a/frameset.htm

Cheers,

NT

[rafael_zaragatzky]

Hi Naveen,

No, I don't understand. The adjustment of the distribution, no matter the method that I choose or implement, is only performed at goods receipt. My problem is much earlier, at the vendor's site. The vendor got the order to pack 5 pcs for store A, 7 pcs for store B, 3 pcs for store C, etc. totalling to 50 pcs in all, but he's got only 40 pcs to deliver.

Therefore I say that the problem is not technical, but conceptual. Which of the options A, B or C is the typical one in business relations? In order to implement option C in SAP, I must be able to start adjustment of distribution when I got order ack. from the vendor. If SAP thought the option C was common in business relations, they would have a standard solution for it.

But maybe it's not typical - I have very little experience in Merchandise relations.

TIA again,

Raf

[tn_naveen]

H Rafael,

I understand your question. I was not clear earlier. If I work through your example, Let us say you have 3 stores - A, B and C

and you have ordered 12 units - 4 for each Store. The Vendor has only 9 units.

Now we have the following options -

A) You agree with this vendor on predetermined rules to distribute in case of under delivery. You could decide to distribute proportionally (standard adjustment profile) or a custom version (your own function module) which kicks in at Goods Receipt automatically.

B) You do not have a predetermined rule and hence the Vendor contacts you to ask for instructions, this would mean you would give a manual instruction on the rule to be used. In this case I would rather do a manual distribution than an automatic one at GR. However this option is not optimal for any business as the whole point of cross-docking and SLS automation is to avoid manual communications with the Vendor.

Ideally I would do the following. Sit with the Vendor who would pre-pack and agree the set of predetermined rules that will be applicable. For example - You could have one rule for all Mens Clothing, and another for Womens Shoes. etc.

You can then use your Custom Function module to pick the right rule based on the article and apply the rule at the GR. Since the rules are agreed in advance with the Vendor, the Vendor would have packed the right quantities.

Hope that helps.

Cheers,

Naveen

[rafael_zaragatzky]

Hi Naveen,

But what happens if I agreed on certain distribution method with the vendor, but in one specific case they packed a bit differently - can be a mistake or some other limitations. If SAP had standard solution for this flow, they would provide a tool fo changing the distribution according to some message from the vendor (ASN with sub items, similar to SLS sub-items in the PO).

Therefore I wonder how SAP sees this process. Do you know?

TIA

Raf

[tn_naveen]

Hi Rafael,

Looks like SAP has covered the scenario you mentioned. It is in the help information on SLS that I sent you earlier.

Here is the relevant link.

http://help.sap.com/erp2005_ehp_05/helpdata/en/d5/80db39f67211d28cc0080009d10d9a/frameset.htm

Cheers,

Naveen

[rafael_zaragatzky]

Yes, you are right. I missed that. So the process shall be both providing the vendor with the rule for adjustment of distribution in case of shortage and also adjusting the distribution at GR according to the actual distribution performed by the vendor.

Now I understand the concept. Many thanks for your patience!

Raf