APO Contract Mfg Supply Modeling to Account for a Hong Kong Location

[Former Member]

Who knows the best practice with regard to the Hong Kong SC design into which we are forced for taxation reasons, and which can cause the replication plants (in HK) to match the number of CM's in China? Have you run into this?

The situation is multiple contract manufacturers in China, ten. We desire that a Vendor, not a Plant object in APO, represents the CM. ( A vendor object represents the vendor in ECC). We have one plant in HK through which all DC supply signals pass; we have this HK plant positioned to allow a Goods Receipt into a company code (taxation) AND to backflush the sub-con components earlier, a very important WIP-removal step prior to the 8 to 10 week ocean transit to the US or Europe. With many different DC's sending supply signals through the one HK plant and from that plant sent to one of many CMs as a sub-con PO, the subsequent deployment of containerloads back to the correct DC becomes a big problem. One tendency is to match a HK plant for each CM. We do not desire this approach due to the creation of many Plant (configurable) locations. I have been attempting to crack the code on this for some time and without success.

Do you know of a better solution or do you have a contact with whom I can discuss the best method for addressing this problem?

Craig.Dionne

[wilian_segatto]

Answers seem to have helped the thread author. Closing thread.

[Former Member]

would this help?? :-

If a subcontractor processes the same product for multiple plants, it is not sufficient to use the location type vendor, since the system cannot distinguish between these plants and would mix up the receipts and requirements of the plants. In this case, you use the location type subcontractor.

You create an individual location with the type subcontractor for each plant-vendor combination. You assign the plant for which the subcontracting occurs and the vendor in which the subcontracting takes place to this location.

Planning takes place in the location with the type subcontractor for the relevant plant-vendor combination. You can create a location with the type subcontractor for as many plant-vendor combinations as you like.

You create the location with the type subcontractor manually in the location master data maintenance in SAP APO. This location type is not integrated with SAP R/3.

[Former Member]

Can you explain exactly what you are trying to accomplish.

We have a contract manufacturer in Hong Kong and China in fact.

If your plant in HK creates SubCon PO's to each of the CM in China, what is the problem?

APO can peg which PO is created for which demand at the plant regardless of where the demand came from.

Ken Snyder