sap-customer specific product reservation

Customer Specific Product Reservation for

Make to Stock Products

Solution BriefSolution Brief

IndexSynopsis11

Customer Specific Product Reservation 22 Customer Specific Product Reservation Requirements

22

IT Sapiens’ Solution Features33

Solution Process Flow 44

Solution Demo55

Solution Merits66

Our Value Proposition77

1 January 13th 2017 ©2017IT Sapiens, Inc. Proprietary and Confidential

Questions ?88


Synopsis11

Standard SAP functionality in all R/3 & ECC versions during Order Acquisition: Sales Order confirmation for Make-to-Stock Products is a result of

Available-to-Promise checks, on first come first served basis For Make-to-Stock Products which are High in Demand and Low in Supply:

There DOES NOT exist an ability to Exclusively Allocate / Reserve Inventory for specific customers in anticipation of Sales OrdersInventory for specific customers in anticipation of Sales Orders

Product Allocation functionality does not help reserve Material or Material Batches in Inventory to specific customersS l O d ATP h k h l fi S l O d Li It b t d Sales Order ATP checks, help confirm Sales Order Line Items, but does not have ability to execute Customer Specific Inventory ATP checks

Lack of Customer specific Product Reservation functionality has led to use of following Workarounds, in Industry: Move Inventory to Storage Locations which are not in Sales Order Specify Storage Location in Sales Order Line Item


p y g Manually move stock to Storage Location in Sales Order and run ATP

(Contd…)

Synopsis11

Standard SAP functionality in all R/3 & ECC versions during Order Acquisition: Workarounds that involve Inventory moves have resulted in:

Undesirable Transfer Requirements or Posting Changes in q g gWarehouses connected to Inventory Storage Locations

Processing of Open Transfer Requirements or Posting Changes could result in:result in: Breaking high rack full pallets Increased toll in warehouse physical moves depending on

St T ’ “Mi d St ” tiStorage Type’s “Mixed Storage” properties Unprocessed Warehouse Posting Changes leading to Risk of Physical

Inventory Documents not be cleared in MM-Inventory Management e.g. MM-Inventory Management stock is in storage location

different from Storage Location Warehouse Quant (since Posting Change was not processed)


g p )

Customer Specific Product Reservation/Allocation Requirements22

Industry Requirements for Customer Specific Stock Reservation: For Regular Stock Items (i.e. not Make-to-Order Items)

Need ability to designate Material / Products that are to be subjected to y g jCustomer Specific Product Reservation

During Sales Order Acquisition, system should auto identify Materials which are low in supply and high in demand and thus restrict orderwhich are low in supply and high in demand and thus restrict order confirmation

Need ability to create Customer Specific Product Reservation at M t i l M t i l B t h l lMaterial or Material-Batch level

Need ability to view Customer Specific Product Reservations in Stock / Requirements List

Need ability for Customer Specific Product Reservations to not be considered as demand elements in Material Requirements Planning (MRP) / Master Production Scheduling runs (MPS)

4

( ) g ( )

January 13th 2017 ©2017IT Sapiens, Inc. Proprietary and Confidential

(Contd…)

Customer Specific Stock Reservation/Allocation Requirements22

Industry Requirements for Customer Specific Product Reservation: For Regular Stock Items (i.e. not Make-to-Order Items)

During Backorder processing, system should recognize if order item g p g y gconfirmation was restricted during Sales Order Acquisition

During Backorder processing, system should not allow inventory allocation to backorder item if no open Customer Specific Productallocation to backorder item if no open Customer Specific ProductReservations exist

During Backorder processing, upon allocation of Customer Specific R d P d t t b k d t h ld d t / ff t thReserved Product to backorder, system should decrement / offset the Customer Specific Product Reservation


IT Sapiens’ Solution Features33

Solution Excerpts: For Regular Stock Items:

Provides ability to designate Material / Products as Customer Specific Product Reservation relevant

Sales Order Confirmation restricted for items which are Customer Specific Product Reservation relatedSpecific Product Reservation related

Provides ability to create “Customer Specific” Product Reservation at Material or Material-Batch level

“C t S ifi ” R ti i ibl i St k / R t Li t “Customer Specific” Reservation visible in Stock / Reqts. ListCustomer Specific Reservation, though a demand element, DOES

NOT IMPACT Planning (MRP/MPS) Backorder Order Processing NOT possible if “Open” (unconsumed)

“Customer Specific” Reservation does not exist Backorder Order confirmation decrements / offsets Open “Customer

6

pSpecific” Reservation

NO SOURCE CODE MODIFICATIONS OF ANY KINDJanuary 13th 2017 ©2017IT Sapiens, Inc. Proprietary and Confidential

Solution Process Flow – Customer Specific Reservation44


(Contd…)

Solution Process Flow – Customer Specific Reservation44


Demo – Material Master Maintenance55

Process: Material relevant to “Customer Specific Reservation” (i.e. high in demand but low in supply)

9

(Contd…)January 13th 2017 ©2017IT Sapiens, Inc.

Proprietary and Confidential

Demo – Stock / Reqts prior to Order Acquisition55

Process: Stock / Reqts List prior to Order Acquisition

10

(…Contd…)January 13th 2017 ©2017IT Sapiens, Inc.


Demo – Sales Order Acquisition55

Process: During Sales Order Acquisition, item recognized as “Customer Specific Reservation” related and

Order Confirmation is restricted

11 (…Contd…)January 13th 2017 ©2017IT Sapiens, Inc.



Process: Scope of ATP Check includes “Customer Specific Reservation”


(…Contd…)


Process: Order Confirmation restricted since item is “Customer Specific Reservations”

13 (..Contd..)January 13th 2017 ©2017IT Sapiens, Inc.


Demo – Stock / Reqts List after Sales Order Creation55

Process: Stock / Reqts. List after Sales Order Creation shows “Sold-to-Party” in MRP Element

14 (..Contd…)January 13th 2017 ©2017IT Sapiens, Inc.


Demo – Backorder Processing55

Process: Check during Backorder Processing if Item is relevant to “Customer Specific Reservation” Check during Backorder Processing if Open “Customer Specific Reservation” exists




Process: Check during Backorder Processing if Item is relevant to “Customer Specific Reservation” Check during Backorder Processing if Open “Customer Specific Reservation” exists




Process: Check during Backorder Processing if Item is relevant to “Customer Specific Reservation” Error during Backorder Processing if NO Open “Customer Specific Reservation” exists

17 January 13th 2017 ©2017IT Sapiens, Inc. Proprietary and Confidential (..Contd…)

Demo – Customer Reservation Creation55

Process: “Customer Specific Reservation” is created


(…Contd…)

Demo – Customer Reservation Creation55

Process: “Customer Specific Reservation” displays in Stock / Reqts List “Customer Specific Reservation” does not impact stock / reqts list quantities


(…Contd…)

Demo – Backorder Processing after Customer Reservation Creation55

Process: Backorder Processing allowed since “Customer Specific Reservation” exists

20 (Contd…)January 13th 2017 ©2017IT Sapiens, Inc.


(…Contd…)

Demo – Customer Reservation updated after Backorder Processing 55

Process: Upon saving Backorder Processing “Customer Specific Reservation” is decremented Stock / Reqts List does not show Customer Reservation if it is consumed

21 (…Contd)January 13th 2017 ©2017IT Sapiens, Inc.


Solution Merits66

“Customer Specific Stock Reservation” Merits: Provides ability to disable ‘Sales Order Confirmation on first come first

served basis’, specially suited for Products high in demand and low in , p y gsupply

Provides ability to reserve Inventory for specific customers in anticipation of Sales Orders without changes to existing stockof Sales Orders, without changes to existing stock

Unlike Product Allocation functionality, no additional master data need to be maintainedU lik P d t All ti C t S ifi P d t R ti b Unlike Product Allocation, Customer Specific Product Reservations can be maintained at a Material Batch level

Unlike Product Allocation, Customer Specific Product Reservations can be considered in ATP checks in other modules

Customer Specific Product Reservations are decremented / consumed / offset with Sales Order Item confirmations

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NO SOURCE CODE MODIFICATIONS OF ANY KIND



Reduced TCO, Highest First Pass Yield and Highest Quality from: Strong expertise in providing end-to-end Supply Chain Solutions Strong Expertise implementing SAP, enriching Business processes and

alleviating GAPs in SAP, for Life Sciences, Consumer Products, Chemical and High-Tech Industry segments

Very experienced consulting resource base with 10+ years experience and y p g y pdeep cross-functional expertise

Rich Knowledge base of custom solutions to address GAPs in most SAP applicationspp

Ability to demonstrate end-state on Day 1 using in-house SAP Systems rich with: Pre-configured SolutionsPre configured Solutions demo-able “Value Add” and “GAP Alleviating” SAP Functionality Demo-able IT Sapiens custom solutions Framework to develop strawman solutions

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Framework to develop strawman solutions Our “Say-To Do” Ratio is 1:1


Questions ?88

For more information…kindly contact Vijay PisipatyDirector-ERP Solutions & ConsultingIT Sapiens, Inc.e-mail: [email protected]


sap-customer specific product reservation

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