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Plant

Former Member
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Hi friends can any body explain what is the

1. Plant.

2. Shiping point.

3.Storage locatoin.

4.Weare house.

5.Picking location.

6.Handling Unit. and what is the link between each one? explain......

Thank u.......

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Answers (1)

Answers (1)

Former Member
0 Kudos

Hi,

<b>1. Plant:</b> In Logistics a plant is an organizational unit for dividing an enterprise according to production, procurement, maintenance, and materials planning. A place where materials are produced, or goods and services are provided.

The plant is embedded in the organizational structure as follows:

-The plant is assigned to a single company code. A company code can have several plants.

-Several storage locations in which material stocks are managed can belong to a plant.

-A single business area is assigned to a plant and to a division.

-A plant can be assigned to several combinations of sales organization and distribution channel.

-A plant can have several shipping points. A shipping point can be assigned to several plants.

-A plant can be defined as a maintenance planning plant.

<b>2. Shipping Point:</b> An organizational unit in Logistics that performs shipping processing. The shipping point is the part of the company responsible for the type of shipping, the necessary shipping materials and the means of transport. It is a place from where the goods are shipped from the plant to the customer. Check the following:

The shipping point is the top level in the organization for shipping.

-A shipping point can be allocated to several plants.

-A shipping point can be divided into several loading points.

-A delivery is always initiated from exactly one shipping point. Thus, all items of a delivery belong to one shipping point. Groups of deliveries also belong to exactly one shipping point.

-You can influence delivery scheduling via allocation to departure zones.

The shipping point can be proposed automatically during order processing depending on the plant, loading group and shipping condition.

-A shipping point has an address.

-The shipping point is used as a selection criterion for lists of deliveries and the work list deliveries.

-The shipping point is used as a selection criterion for processing deliveries like printing, picking or goods issue.

-You can determine the printer destination for messages differently for every shipping point on account of shipping documents.

<b>3. Storage location:</b> An organizational unit allowing differentiation between the various stocks of a material in a plant. A storage location has the following attributes:

-There may be one or more storage locations within a plant.

-A storage location has a description and at least one address.

-It is possible to store material data specific to a storage location.

-Stocks are managed only on a quantity basis and not on a value basis at storage location level.

-Physical inventories are carried out at storage location level.

-A storage location can be assigned to a warehouse number in the Warehouse Management System. You can assign more than one storage location to the same warehouse number within a plant.

-Storage locations are always created for a plant.

<b>4. Ware house:</b> In warehouse the stocks are kept. It can be different from a plant.

All warehouse procedures, such as stock placements and stock removals of materials, are always executed within a warehouse number. Thw warehose can be far away from the plant. Suppose plant is in the interior of some remote village abd distribution can be done easily from the city then a warehouse can be created in the city. The items manufactured in the plant will be kept in the stock from where the delivery will take place.

A warehouse number has the following characteristics:

-A warehouse number does not have an address, but a short descriptive text.

-It is possible to store material data that is specific to a warehouse number.

-Within each warehouse number, the stock figures are managed as quantities, not as values.

-Within a plant it is not possible to assign several storage locations to the same warehouse number.

<b>5.Picking location:</b> It is the place from where the goods will be picked for delivery. It is nothing but the storage location. It is determined with the help of the "shipping point, plant and storage location" This makes the system know from where exactly to pick the material from.

<b>6. Handling unit:</b> This comes into picture in case of multilevel packaging. Suppose a cabinet for a PC, it will be packed in a corrugated box. This together will be termed as 1 handling unit. When such corrugated boxes are again packed into a bog wooden box then this will be termed as 2nd handling unit.

<i><b>Links:</b></i>

<b>1. Plant</b> is an organizational unit in logistics.

<b>2. Shipping point</b> is always created for a plant. One plant can have multiple shipping points and one shipping point can be assigned to only one plant

<b>3. Storage location</b>. Created for a plant. One plant can have multiple storage locations

<b>4. Ware house</b>. It is assigned to the combination of plant and storage location.

<b>5. Picking location</b>. Picking location determined by the combination of shipping point, plant and storage conditions.

<b>6. Handling unit</b>. Created in the plant before shipping.

Reward points if solution helps.

Regards,

Allabaqsh G. Patil