LMS Assets

P2P; PTM

MD04; MM02

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we will focus on why proper lead time management is so important. Often lead times are loaded at go live and never really maintained again. So when properly managed it can help your organization shorten replenishment cycles and become agile supply chains. Kristie, often people think it is a good enough to just get lead times right in their master data. Of course, that's an important first step however for world class lead time management the goal is to work on shortening your lead times with your suppliers, production lines, and of course, sales delivery. Tell us more about that. I'd love to Martin. Lead time maintenance is a powerful feature when used correctly, and in this demonstration I'm going to focus on three key things. One, common places where lead times are maintained. Number two, things to think about as you look at the various lead time buckets available to you, breaking down those activities so we can make them better. Number three, the criticality of truth in the application of lead times and how they are used in MRP could not be more important. I want to talk a little bit about lead time maintenance. So we talked previously around how to evaluate lead times, and if you missed that video what we did is we went in and we looked at a transaction called WPDTC. Very, very powerful transaction, if you haven't watched the video on that yet, make sure you go back and take a look at it. What that allowed us to do was compare our information in terms of what the purchase info record says, to what the material master says, to what the vendor master says, to what we are actually seeing in terms of on time performance from the date the purchase order is issued until the date that we are receiving product in. And that evaluation is really important in terms of making sure that we have good insight into how our lead time is being managed and there's a lot of other tools that will allow us to do that too, in terms of the purchasing information system and vendor evaluation. But what I want to talk about today is what you do with that information. So through WPDTC there's some updates that are available, but most of us, most of the time are going to manage our lead times directly in the info sets. So first, let's start by just talking a little bit about the material master. We want to make sure that we remember that we can maintain lead times in a variety of places for items that are sourced. We can maintain it in the purchase info record and in the material master and scheduling agreements or contracts. I'm going to make sure that we have a good amount of alignment all throughout. Let me pop into the material master and I'm going to talk about why it's important to make sure that these things are consistent, or at least make sure that we're flagging them appropriately. I'm going to go ahead and hit change material. Okay, so all of our lead time information is going to be on the MRP 2 view. And I want to talk about the two different kinds of lead time. The first is our planned delivery time, so this is how long we are expecting from the time that we release an order to the supplier until we receive goods in the back door. That is our planned delivery time. And this planned delivery time field lives in a lot of different places. So it lives at the vendor master level, if you had just one lead time for everything that was coming from that particular supplier, it lives in the purchase info record, so you're able to maintain it there and it lives in the material master, it also lives in the contract, the scheduling agreement, and any discreet purchase orders. Now, why is this important? It's important because depending on how you have your sources flagged, you could get a big surprise if you have it in a material master say 15 days, but in your purchase info record as say 45 days. When that item is sourced, if it's not set appropriately in the source list, when the item is sourced, it's going to inherit the values from the record that is the most specific, and so we want to really make sure we've got good alignment based on the reality of how the supplier's delivering to us in all these fields. So let's talk a little bit about what plan delivery time means. So first of all, this plan delivery time is in calendar days. SAP does not know what your supplier's calendar looks like as a default. So when you come in here, it's going to go based on calendar days. So when I have 10 days, that is not two weeks. 14 days would be two weeks, 21 days would be three weeks. So this is really important to know, and if you're ever not sure what the setting is, if you hit F1 on your keyboard, it's going to help you to know whether it is calendar days, or work days. So the first thing it's going to tell you is the number of calendar days needed to obtain this material. Okay, and that does include the transit time from the supplier. Okay, so that's from the time you order it till the time it hits your back dock. The second thing that's important for us to make sure that we're getting correct in terms of lead time, making sure we have the correct buckets for everything set up, is the good to receipt processing time. So this one is your dock to stock time. So from the time that it arrives at our dock, or it's been released from production till the time that we can actually use it. And again, looking here, we can see what this is, and this is internal time, so it is work days. If you have quality inspection, your goods receipt time should align with that anticipated inspection time, if it's happening after you have received the goods in. Okay, so that's very important. Lead times in general shouldn't be buffered. They need to be set to what your actual expectation is, both for performance monitoring as well as to reflect the correct activities in the system so that we're able to work to improve those. So you've got lead times for pick, pack, and load, so all your staging time. You have a lead time from your supplier, which is your planned delivery time that reflects the time from the purchase order release until goods are received in your back door and you have good to receive processing time, which reflects how much time you need once that product has hit your back door to make it available for use, and we really want to make sure we account for all of these things in the correct buckets and then when we need to buffer in terms of time or quantity, that is what we have the safety stock types for, and there are three different types that we'll discuss in another video. But as you're going through and you're thinking about this, make sure that you're thinking about the specificity of the information. So whether it is in a contract or outline agreement or scheduling agreement, those are contracts and scheduling agreements or your two different kinds of outline agreements, your purchase info record, your material master, your vendor master. Just make sure that we the planned delivery time consistently maintained and that we're differentiating only where appropriate and where there's specific effectivity periods or source differences and then we're also accounting for the goods receipt processing time separately from that planned delivery time and that is reflective of your dock to stock time. And that's a little information on how to maintain those lead times once you have that information. So in summary we have covered how lead time maintenance allows you to. A plan for success. B, differentiate where it matters. And C, continuously evaluate and improve so we can focus on shortening those lead times successfully. Thanks Kristie. I completely agree. Using this feature allows you to position your end-to-end supply chain for success by ensuring we're getting these critical rules right while not inflating our lead times to buffer for volatility. Honesty truly is the best policy. So if you want to know more about this particular feature and of course other features in SAP please check out our other videos and if you have a burning question submit your request below.

IBP; P2P

MD04; WPDTC

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we will focus on how to take advantage of SAP's lead time management capability. When used correctly, lead time management helps organization manage the lead times it takes to complete procurement and supply chain activities. From ordering raw materials to delivering finished goods to customers. So Kristie, tell us how to make the most out of SAP's lead time management. I've got some great tips and tricks for you Martin. Lead time management is a powerful feature when used correctly and in this demonstration I am going to focus on three key things, which are all around how we review the quality of our lead time master data. Number one, how we can use weighted plan delivery time calculations to see if our master data is consistent. Number two, how weighted plan delivery time calculation provides us with lead time performance information. And number three, the prereqs for being able to get quality information out of this very powerful transaction. Lead time performance management with WPDTC, waited plan delivery time calculation. So this transaction comes with the Surgeon General's warning. It is very powerful and with great power comes great responsibility and the reason why this transaction is so powerful is, first of all, the quality of the information that it provides is very dependent on how well our processes are organized and second of all, from this transaction, you can actually update your master data. And so we want to be very careful with that and make sure that we understand the values that we're seeing and we believe them and we're updating the correct information before we actually just turn folks loose to try to use this and to apply the information that they're seeing here. Okay, so that's your surgeon General's warning. So what does this show us? So you can see here we have the master data information on the left hand side so the info record that it's using for the comparison, the purchase organization and the purchase, and the plant, the supplier, and then the material. And then over a little bit further we have our plan delivery time that's maintained in that info recorder, the plan delivery time that's sitting in the material master. So there are some reasons why these might be different but we should know what those reasons are, so if we have multiple sources of supply, we have a plan delivery time with a particular effectivity period, we have a situation where the supplier has one particular plan delivery time that they're obligated to but we need to do something more conservative in planning. Those kinds of things but they should be very purposeful if they are different from one another. We have multiple sources of supply that are managed by quota arrangements so we get the right assignment through the planned delivery time in the info record and the info record's going to be the most important place we're maintaining that. Next door to that is the planned delivery time maintained at the vendor level, so in our vendor master. This is where we would have the same plan delivery time for all the materials coming from that particular supplier. And then lastly, is the calculated plan delivery time, that is the difference between when the purchase order is placed and when the goods are received. So this is the real supplier performance as the system would see it, or how they've been performing from the date of PO issue to the date of goods receipt. So this assumes a few things. This assumes that we are placing our purchase orders on the release date, so neither too early nor too late, that purchase requisition gets converted into the purchase order, the purchase order gets released to the supplier. So we maintain our flexibility for as long as possible before we're fully committed to that PO, and we're making sure that we are honoring the stated lead times from that supplier so making it very fair for them to be able to give us our product on time. It assumes that we are receiving goods in, in a timely fashion. So those are real time and accurate ,and it assumes that when we are asking the supplier to expedite we're giving them less than lead time that we are having that conversation with our suppliers as well, so it's a fair evaluation. And you can see here, this is always the hard part is we have to go through and say okay, what is actually happening is 42 days, what we are seeing in the info record of the material master so what we are using for MRP is 11. That means that there's a pretty significant variation in what the supplier has been actually delivering to us and this is going to be over a period of time, so in this case it was about a six month evaluation. This is really important because we are making promises that we want to keep both to manufacturing, to our sister plants, to our customers based on this lead time information so all of our planning is done here. Sometimes it's the opposite though, in this case down here we are planning for 35 days but they're delivering in 24. So is there an opportunity there to be able to reward the supplier for that, adjust the lead time, et cetera? Because if the supplier is able to perform in less without, major expedites, but they're able to accommodate that they're outstripping their performance, then we want to make sure that we're accounting for that because that's less inventory that we have to hold or buffer in order to make sure that we're in a position to promise. Okay. Very, very important stuff. So we can actually dive into the details here by hitting expand and this will go in and it will pull up the individual information for each of these records. So you can see here, let me scroll down just a little bit for you, get some records. You can see here that for this particular material, so 1066127, we've got all of these different purchase orders that have come in and it's calculating for us the number of days between the PO date and then the goods receipt date. Okay and it's going to give us that information as our calculated planned delivery time because that's the reality of what's happening. And so we can use that information then to go in and update our lead time records if appropriate. We can use that information to detect any process and efficiencies so when we're issuing purchase orders, on time, are we receiving goods on time? Are there any communication breakdowns that are occurring? It allows us also to even think about different master data parameters. So let's say that part of the reason the supplier is always off is because they deliver to us consistently every Wednesday, so can we use a planning calendar to set up for that kind of delivery? So understanding the variation and then working to resolve it or update our master data accordingly. Okay, very important. And then we want to just look for the overall consistency of our master data as we look across that info record and the material master and the vendor record if we've got things maintained in all three. Now, one word of caution, I talked a little bit about some reasons why the material master and the purchase info record might be different. One of those is going to be relevant for MRP. So if the purchase info record is not relevant for MRP, then it's the material master. The word of caution here is that MRP is going to plan according to that value. So let's say, for example, here's a good example, the material master says 9, the purchase info record says 12. When that purchase requisition gets converted into a purchase order, we're going to get a surprise if we're using the material master to plan, because what will happen is that purchase requisition, when it gets converted into a purchase order, is going to adopt the information and the purchase info record, and it's going to add 3 days to that plan delivery time. So this is really important to make sure that we have the right source of information flagged as relevant to MRP and we would do this in the source list. So if we don't have that, then the worry is that when we go to convert it into a purchase order we could see that change. But lead time performance management, super important, get in here regularly, review how your data, so what you believe is happening, looks compared to what is actually happening. Scrub for outliers, understand root cause, but then go in and update your records accordingly, based on negotiated lead times with the supplier and conversations with them around their performance. WPDTC will help you with your lead time management. So in summary, we have covered how lead time management will allow you to. Review the consistency of information across the different data maintenance points in SAP. Compare planned lead times to actual performance. And reconcile records for improved planning and performance. This is a powerful transaction and with great power comes great responsibility. Yeah, thanks Kristie. Truly a mouthful that transaction. So using this feature however, does improve the accuracy of delivery dates, resource planning, and inventory optimization. So once again, if you're looking for more information on this particular transaction or other features in SAP, please feel free to check out our video catalog and if you have a question, please submit it below.

QM; OTC; P2P; WM

LL01; VA06; QA33; MD07

Hey there, Martin here, and in this very special episode of Reveal TV, we are sharing what we call a Leader's Digest. Yes, the pun is intended. This video is meant to be a quick power up for leaders supporting teams and their success in driving value, empowerment and quality out of SAP. Today we're talking about one of the powerful concepts SAP has to offer, proactive exception monitoring. Exception monitoring exists in all functional areas of SAP, doing the hard work of highlighting where our attention is most needed in any given day or any given moment. The path to quality, exception management is not easy, but it's most certainly worthwhile. Jason, Jason, Jason. This is a big topic. I imagine a lot of our leaders may feel exposed when first trying to support a team in pursuing excellence, in exception monitoring. How do you suggest that leaders get involved and start the process? The good news is that I have been here, I've done this, and I have so many t-shirts. I'm giving them away. This is seriously tricky feeling business, but it doesn't have to be. As leaders, we don't need to know it all. We simply need to be comfortable in our team's journey, being able to support them in it. So a few things. Let's not pull any punches, when someone first gets started, exception monitoring, no matter what function it's in, it can feel a lot like panning for gold. Data's not clean or well understood. What SAP is trying to tell us is murky and suspect at best. It's easy to get overwhelmed. So let me show you a few simple ways to see what's going on and ask the right questions to support the team. Second, for the team to get good, for things to start working, they have to get in and work on exceptions daily so they can start experiencing some wins and recognize trends. Trends are what we're looking for, cause and effect. We're dealing with an integrated system here after all. So let's go in and take a look. When we're talking exception monitoring at a leadership level, it's important to remember that there are exception monitors all over the place in SAP. When things are clicking, data is clean. Big chunks of work are handled automatically, and the team can focus only on exceptions. You monitor exceptions in MRP, sales orders, quality inspections, finance functions, warehouse activity, the list goes on. Ultimately anywhere where things can get out of alignment in SAP, there's probably an exception monitor of some kind. I think there may even be one to figure out when lunch is going to be delivered, but that's neither here nor there. You don't have to be an expert in each of these, but it's important to embrace and champion the approach and show curiosity with lots of questions to reinforce to the team that exception monitoring is baked into the organizational culture. Part of baking exception monitoring into the culture is keeping it front and center and watching trends. Now, it's not real easy to monitor exception trends and standard SAP, but the people that are in it every day will have a good idea of which direction things are heading and which items are most critical. As a leader, you can use that to drive conversations and get a sense of how things are tracking. So here's how a morning standup conversation might go from a leader's perspective. Hey Steven, how's the warehouse monitor looking today? Better or worse than last week? Better, great! Tell me more. What are you focused on this week? Okay, great. If you can attack those negative stocks, it looks like you can keep the downtrend rolling. I'm really glad to hear that the fantasy football draft didn't knock you off your game there. Hey Marcy, how are we looking in sales? It's going the wrong way, huh? Okay, so what's going on? Oh, we're still dealing with those staffing shortages in quality. So stuff's not making it to the warehouse on time, huh? Okay, I see, yep, yep. Jake, I see QI is really backed up. Is there anything that we can do to try to help get you back on track? I mean, you got lots of red lights and we're just burying you with the more stuff coming from production. I wonder, here's a thought, we've got a maintenance outage coming up for later in the week. What if we move that up to tomorrow and buy quality some time to catch up and get things back on track? We could even pull some production folks over that are trained on inspections to supplement the team. Hey Wayne, how are we looking for the materials on that outage? Let's look at IWBK. I'm seeing lots of green lights. It looks like it might be doable. What do you think? Good. Okay, good. So, Jake, if we can buy you this time and you can get some reinforcements for a day or so, will that get this done? Okay, let's do it. Hey Steven, just stay on your toes out there in the warehouse to make sure we don't just shift the bottlenecks over to you. But barring any issues, getting stuff packed and out the door, I think this gets us back on track by the end of the week. So you saw me flash through five different examples of exception monitoring tools in SAP in just a few minutes, that when taken together, provided a nice end-to-end view of the current supply chain picture and allowed us to react quickly to resolve a hypothetical disruption. One that probably didn't actually sound all that hypothetical for those of you out in the real world. So what's also cool to look forward to is the transition to S/4HANA. There are a bunch of really cool Fiori apps that are going to make this process even slicker and easier. But beyond the tools, you also heard me facilitate a discussion around the information. It's not enough to just keep an eye on exceptions. As a leader, it's crucial that you demonstrate the critical thought processes needed to collaborate up and downstream to solve supply chain challenges. Developing those critical thinking skills, that's really the secret sauce to taking things to a different level. Alright, now here are the words of advice post demo. First, if you do nothing else, show interest. If you're interested, the payoff on the time and the spark to the flame of curiosity become very real. It's the single most important thing you as a leader can do. And second, after hearing a team share a bit, you'll get a feel for some questions. Ask them and ask with an eye towards getting to an improvement objective, a knot you can help untangle. And when you find that golden thread, affirm your interest into commitment by driving some actions based on feedback that has come from the team with or without your influence. Show up for them by delivering on something they need and they might be surprised you would offer. And here I have one more parting word of advice and it may sound a little strange, but here it goes. Stop rewarding your everyday superheroes and rather reward and acknowledge the folks who are managing the business of the day only occasional superhero capes needed. Hey, thank you again, Jason. Supporting our leaders in supporting their teams is critically important. I love the points you've made today, they are just absolutely spot on. There are reasonable reminders that we can apply across the supply chain, so thank you. Hey folks, if you want to learn more about exception monitoring, we have quite a few topics on this particular related area. Of course, if you are not sure where to find them, feel free to use our chatbot.

P2P

MC$6; MC$8; ME61; FIORI

Martin: Hey there, leaders of leaders, Martin, here with a topic that is near and dear to my heart. Measuring supply performance. In our minds, measuring supply performance goes directly to the heart of setting our partners in the supply chain up for success. It helps surface important conversations, it reduces risk and recognizes excellence. They're both quantitative and qualitative components to a good conversation around performance. Today, Sean is going to talk us through some low barrier entry tools to get some of these conversations going. Hey, Sean, I know this is an incredibly important topic even in your books. As a leader, how would you help your team set up for success in these conversations around supply performance? Help us out, friend. Sean: Martin. Martin. Martin. I can't tell you how many organizations tell us that they either, A, are so busy managing their orders, that they don't have time to engage in good conversations around performance, or B, have invested heavily in developing tools external to SAP to build a scorecard, often not even utilizing the information already available in SAP. Let's get to the good stuff. We have capabilities right out of the box. The tools available to us build on one another and continue to evolve to better support, timely information that we can access when on a call or in a meeting or with suppliers. And the best news is that if we're able to get started on this journey using real time information, this can offer opportunities for gateway conversations. Gateway conversations are the ones that help to understand better the opportunities and the obstacles with our suppliers so we can collaborate with them, improve performance, and get the strategic partnership in a mutually beneficial way. Let's go now and take a look. Right, so before we can embark on a journey to improving supply performance, we must define our organization's success measures. Our goal is to understand what's happening with our suppliers, their successes and obstacles, where they are processed internally, setting them up for success, and then where we might have opportunities to mutually improve. Now the SAP toolkit to support supply performance is really robust and can tell us much about what's working and also what's not working. So before I give you the Leader's Digest version, know that there are dedicated videos that delve deeper into several of these examples, and I want to give you a quick hit on the feature and tell you what you can expect to get out of this today. First are straightforward supplier performance reports. These are standard SAP reports supporting the on time and in full evaluation and we can control the definitions of each of these via a small amount of configuration. And you can see an example of each here on my screen right now. So I've stacked them side by side so that you can view them and these supplier performance reports, what they do is they measure the supplier's performance based on a statistical delivery date in the purchasing document. This is primarily driven by the suppliers stated delivery time. And that we will have maintained obviously inside of the SAP system within the master data. In the early days of use, this report can help us understand the quality of our data, and once we're confident, represents schedule adherence and reliability with our supplies. We then get a full measure of in full, based on tolerances and the descriptions that we have configured. From here, we can then drill to look for outliers, look to see if we can find any trends, are there examples that are worth discussing? And one of the really cool things is that this information also flows through what's called the buyers negotiation sheet, and here’s an example shown here for you. It is a quick reference on what’s going on with that supplier or material? We can see things like recent purchase history. We can see pricing and terms and the pièce de résistance for today our on time and our in full statistics. So the good thing is we can pull this up on the fly to reference it in our conversations with our suppliers. The next thing I'd like to share is vendor evaluation, as different to supply performance. This is where we get the opportunity to produce what we think of as say a balanced scorecard, and it requires robust conversations on the business rules of how we want to rate our suppliers to produce a good review for them. We then need to configure those rules so that the report delivers a proper result for us. You can see here some of the selection criteria and the options right here. Vendor evaluation also allows us to rank and compare our suppliers where it's appropriate, which could be handy for business review, for awarding new business, and for recognizing them as high performers or needing improvement. All of this is coupled with a qualitative input from the folks who work regularly with the supplier or the goods or the services that supplier provides. Now, finally, the journey to S/4HANA then opens up all kinds of new ways to manage supply performance in the Fiori workspace. Examples of which can be seen here on the screen. Now, we have dashboards that push analytics to us alongside process monitoring. We've never had so much information right at our fingertips in SAP. There's so much we can dig into to generate improvements in the way we engage with our suppliers and ensure mutual success. I love a good roundup tour and I hoped that got some wheels turning. As leaders, we want to make sure our teams are armed with the best information to be successful. One of the ways we can do that is to be very consistent in our expectations. Where our expectations have been exceeded or unfulfilled, we want to attack that with curiosity. That curiosity leads us to important understanding that helps us promote goodness and protect against challenges while we work through whatever they may be. The other success factor is cadence. Being on a regular cadence of conversation helps everyone to stay on the same page and lessens the surprise. Since knowing is half the battle, anything we can do to stay informed sets us up well for knowing that the knowledge in the best way to support our partners in success. Martin: I love that Sean. You highlighted a few options that are definitely struck a chord with me and involving our conversation, reducing our risk, and figuring out how to partner with our partners well. Hey folks, if you're looking to maximize your value in your SAP investment, please check out some of these other videos. And specifically for these Leaders Digest videos, please check out our catalog.

P2P; PTM

ME23N; CM25; WPDTC

Hi folks, Martin here with another video that came from a question from the Reveal TV community. One of our leaders asked us what one of the biggest barriers to change is within an organization and how to overcome that. We love this question, but before I answer, let me ask you a question. What are the seven most expensive words in business? We have always done it that way. We may not even know the reason, but we trust that there was one and it's sacred and we hold onto it forever. So here we are today talking about this from an angle, from a policy perspective, how is that policy performing for you and when should we start thinking about changing it or even challenging it? To address this with us today is Steven. Steven, when you think about policy performance as it relates to getting things right in SAP and getting our teams moving in the right direction, what are some of the tips you have for us today? Yeah, thanks Martin. Um, yep. I've got tips. Uh, first of all, every time I hear, well, you know, that's just policy. I just have so many questions. Is it a policy or is it actually a process step? Can we meet the policy goal in another way? How do we get out of this box and back into options? A team or individual often hear a person within the organization say something and interpret that as a rule. It's not uncommon that this is something that was once said and, and may even be taken out of context, but now suddenly it's accepted as a policy. So to counter that, you have to demonstrate trust in the team by prompting them to challenge the status quo. Look for opportunities to do things differently. I'd recommend focusing these efforts on like a master data rule or a process goal. Make it something that you're able to adjust in SAP and then monitor the results. But as your team learns more. They need to apply that learning, which means they're going to need just a little space to change. I'll take you through some common policy assumptions and how they manifest in SAP. Let's go in and take a look. It's no surprise that it Reveal we're big fans of challenging the status quo, but we temper those challenges with small iterative changes and we encourage you to do the same and then also monitor the results. I'm going to give you three quick examples of how policy may manifest in SAP as something the team may no longer think about, but should. Number one, we don't change dates. Well, if you don't change dates, then you're not reflecting the reality of what's happening in the now. That means we have to go elsewhere to see what's really happening. And if our goal is a well performing system that enables process and empowers people. Well, we can't get there from here. Further, we can't make use of our rules engines. ATP and MRP are blind to what's going on. A good example of why people may believe in this policy is that they believe you can no longer measure performance if you adjust the dates, well, you can. You just need to adjust the right dates. We have options, but if it's policy, we stop looking for those options. Number two, we never take idle time on the manufacturing floor, we must fill in the schedule. This is usually driven by the KPI stack the floor is being asked to hit because you can never get that time back. But if you're looking to make the most out of your inventory investment available, raw materials, capacity, and labor, and maintain flexibility for the client, you might find that you'd benefit strongly from leaving some open capacity in the schedule. Number three, we do not update lead times. Lead times are a primary master data element that sets us and our partners up for success. When people say they don't update lead times, what that often means is that they don't want to commercially reopen the conversation with their suppliers to provide new lead times. However, think scalpel not broad sword, and there may be some important and valuable conversations to be had. Also, if your suppliers underperforming and you want to hold them to their stated lead times, then fine. Don't change them, but put some performance improvement steps in place and consider some safety time while they're improving. But riddle me this, what if the supplier is outperforming their lead times? Wouldn't it be nice to take advantage of that? Lead time is dollars in inventory, coverage, carrying cost and flexibility? We want the best ones we can reliably get. Those are three quick examples, but I can think of so many more. What can you think of that your team thinks is a policy rule but you'd really like them to challenge? I'll give you another one to think about. We always have to build or buy the full EOQ. Give that one some thought. All right. Thank you for taking that little tour with me. Uh, today we're able to go over some examples of how you might find opportunities to revisit policy restrictions that may be standing in the way of improvement. When we change something, we may not always get it right, so we want to start small, monitor carefully, and then course correct along the way. When we get something right, we want to celebrate and share those successes, and then iteratively identify the next opportunity. We want to build confidence over time and have the healthy and challenging conversations that ensure that SAP is running with the rules that empower the business to thrive. Hey, thanks Steven. You know, in matter of fact, a real company policy is a boundary that should not be crossed without plenty of debate and confirmation. However, the semblance of a policy that is no longer relevant should be challenged. Much of what flows down to the team as the policy is often not a result of a false constraint. Not just the rules in SAP, but to the way we think about the options and opportunities. That's a time for change. Alright folks, this was a Leadership Digest video. We are going to have many more of these as well. And if you're looking for some specific leadership topics, please check out our video catalog.

P2P; PTM; OTC

MC.9

Hey folks, welcome to the video that unlocks and reveals the hidden value in your SAP system. This is Martin, welcome back to the conversation. Today we're going to dive into the tricky topic of KPIs. If you can't measure it, you can't manage it. We've all heard that before. It's about intentionally managing and improving what we have. In this Leaders Digest demo today, we're going to discuss what it takes to put KPIs to good, productive use. When we are looking for the right KPIs to drive our business, we have no further to look than our friend Sean. He is the master of balance and focusing on the widely important things. So Sean, can you help our leaders find some productive KPIs to dig into as we're looking to improve our teams and the use of SAP and ultimately have a path to achieving business outcomes? Sean, tell us more. So Martin, did you know that SAP is always talking to us? It's giving us so much information that sometimes it can be overwhelming. Oftentimes we don't know where to find what we're looking for. So as leaders, we actually force the team out of SAP and into an online report or spreadsheet. We ask them to spend time on pulling data out. And I'm here today to talk about driving activities back into SAP. There's no one metric to rule them all, but there are important KPIs that can be brought together to drive our improvements. As leaders, it's critical that we look for conflicts and help the team understand how to approach outcomes in an integrated way. The other point I'll make before we jump in. It's very important to target set the focus on getting metrics that are trending in the right direction. For some of those KPIs, it's not the discrete number that we're going after, rather it's a time phased incremental improvement. Right, so let's go in and take a look. Now my intention today is to spark some curiosity as to what some of the KPI summaries look like in SAP. For this, I'm going to look at the material analysis tool key figures that are available in one of our report options, MC.9. And so here I'm going to run this report, and we'll get some results in a moment. And from that for this exercise, what I'm going to do is I'm going to focus on a single MRP controller and let's choose 008. There it is, so we've highlighted 008. And what we want to do is open the key figures that are available to this report. So if I go to extras, show me all the key figures. There we go. Look at that. Now, before we look at some of the details, let's remind ourselves as leaders, we need to use KPIs productively , to focus the business on collaborative outcomes that are going to bring balance, direction, and buy in. And in that way, try to minimize or avoid competing KPIs. Several typical competing metrics within the supply chain management arena often arise due to differing goals between various departments and functions. Think for a moment on inventory turnover versus customer service level. So higher inventory turnover aims to reduce stock levels, while high customer service levels requires that we maintain a sufficient inventory to meet that demand. And if we take a look at these particular measures that are out here, down the bottom here, we can see the stock turnover. So the valuated stock turnover here is running at about 13.2. Wow. I would argue that 13.2 is a pretty good turns rate that we've got. So inventory turnover seems to be doing quite well here, but it is potentially one of those that runs into conflict with the customer service levels. Then you can think for a moment around production efficiency versus flexibility. Or we could argue cost reduction versus quality improvement. Maybe order fulfillment lead time versus manufacturing lead time. And then of course, the capacity utilization versus on time delivery, and in that regard, we see that quite often that maximizing capacity utilization can also lead to lower flexibility, and then that runs into conflict in ensuring a high rate of on time delivery and getting to those rates. Okay, so I think we get a good sense of the potential and how we can run into conflicting KPIs. So if we continue to look at some of the key figures here that are used to inform, direct, and report on around what these KPIs look like. Let's consider the valuated stock coverage, for instance, you see this one here, valuated stock coverage, that's our days of supply. Now, very often we have a days of supply metric that says we want to carry X number of days. And this is where that opportunity exists for us to check how well we are doing or how badly we might be doing against it. Are we achieving those goals? Are we way above? Are we down below it? What is the situation? Because we one, don't want to carry too much, but we also don't want to affect service levels at the end of the day. The second one we might want to think about is the link between total consumption, and let me take you up there. If we look here, total consumption, there it is. So we've got 63 million and against that, the valuated stock coverage. So where's my valuated stock coverage down the bottom here. Value added stock coverage of 36. So we can start to see a relationship between that and if we take it to the mean valuated stock value, which is this up here, mean valuated stock value of 1.2. That 1.2 against the total usage of 13 million. That's almost showing us the turns rate. Think about it. Consumption divided by average gives you a turns rate. So that's the 13 divided by the 1.2. Then of course we have safety stock. So safety stock we need to say well is our strategy correct? Are we running too high? Are we running too low? But we have an opportunity to use these key figures to tell us that. What about the number of cancellations? If we look up here, number of cancellations 876 cancellations. And so we would ask, were we unable to make it on time or meet the full demand of the customer? Do we need to have a metric where we're going to look at reducing cancellations? Those are part of the conversation that we need to have as we go forward. An interesting one as well here is around the valuated stock receipts value. So if we look here, our receipts value is at 17.863 and our issues value at 17.8. Well, that looks pretty good. Because it means that which we're receiving and that which we're issuing out is very close to one another. And if that's true, then it could suggest that we are not building excess inventory. And we might then want to say, well, hang on, is excess inventory a metric that we want to track? In some cases, very definitely, we want to track excess inventory. But this here shows us that those two seem to be in a similar place right now. What then about the unplanned quantities? So if we look over here, there are two measures in here. There's an unplanned quantity usage and there's an unplanned consumption of about 9 million dollars. And that starts to raise some questions. Why have we got unplanned consumption? Is this a reflection of a breakdown between my plan and my actual, and is this going to be something that we need to consider in terms of a metric going forward? So as we consider productive KPIs, an example that's been top of my mind recently is the challenge, or maybe it's the fun, of being a production scheduler. Now think about it, as a production scheduler you're charged with balancing service levels, inventory performance, and efficiency throughput. Not an easy ask, is it? By a long stretch. No, it isn't. But as a leader, what we need to do is we need to help in the conversations that guide our teams along all of these metrics that are out here. We need to encourage them to work hard, to improve the quality of planning and the use of SAP itself, not getting outside the system. And in that process, we need to empower our people to to make the right decisions for business improvement and then work with them to ensure KPIs are aligned rather than in conflict with them. And so folks, as a final thought, let's suggest that rather than just have a fixed target, that as leaders, we work with the team on the trending in the right direction and on incremental percentage improvements. I think that's the key. Incremental percentage improvements. And this will give them a gliding path to the desired outcome. It will increase motivation and certainly build success in our organizations. Wow. I really enjoyed that. Now here's some closing tips for those of you who are trying to lead and support your team. First, create good daily habits and find the impact on the metrics. Celebrate the small wins and be curious on how the team achieved them. Work on the problems and be curious about how you might remove the hurdles and support the team in their success. Watch out for stagnation though. It's likely means the daily habit hasn't yet landed where it needs to be. Your job, provide clarity, support, and be to the team showing genuine curiosity in their journey as evidenced in KPIs that are productive and drive to the outcomes that you're looking for. Hey, once again, Sean, thank you so much. The importance of getting this right is often undervalued and it's a big missed opportunity for a lot of organizations. I'd wager most folks listening to this could uncover hidden opportunities in the organization simply by reviewing some of the highlights from this video in their business. Can't wait to hear about some of these outcomes. So folks, if you want to listen to more Leader Digest related topics, check out our other video catalog. And of course, if you have a specific question, feel free to submit it below.

DM; P2P; PTM; OTC; WM

MD04; MCPU

Martin: Hey folks, this is Martin and this is another installment of Leaders Digest where we are going to provide some insights to leaders in digest form. The topic we have for today is all about improving the quality of information in your system so that you can do the things like allow the system to produce realistic plans for you, or make a promise and keep a promise. It reduces noise, manual interventions, and improves clarity. It's incredibly important that we know how to foster a culture that values data as an asset that empowers decision making. Today is all about the integrity of our data. So Steven, what should our leaders know about transactional data integrity? Steven: Yeah, thanks Martin. Integrity is such a good descriptor for what we're trying to achieve with quality master data. Have you ever heard your team express that the system is lying to them? It's a common way to feel, but the truth of the matter is that if SAP's wrong, then it's because we have fed the system with incorrect or untrue data. Not the other way around. Keeping the system up to date with current information is a precursor for any digital transformation journey. When integrity is lacking, it is the bringer of chaos. And with each incremental improvement, we build trust. We shore up the foundation. And you as leaders have an awesome opportunity to promote awareness and drive focus within your teams to keep the system up to date and clean. You can build a culture that is invested in enablement and understands the cross-functional impacts, timely transactions, and visibility into upcoming demand and the requisite supply. Let's go in and take a look. Can we trust SAP? Well, yeah, it's a system, it has no bias, it only knows the facts, right? Now, can we trust the data in SAP? That's probably more of a a maybe, it depends. We hope so, and we can certainly validate the quality of the data. So if this is a right to play, a first step to conquer, to get the quality proposals for replenishment, making good on our promises and being able to drive insights from the system to make decisions in real time. Why is it so hard to get there? Well, first of all, data only gets better if you're using it. Now we're getting to it. Got a chicken and egg conundrum here, and team members lose faith when they try to keep the system up to date and there's not good cross-functional alignment in that effort. We succeed or fail as a team. It's the integrated nature of things. So here on my screen are some outdated demand elements, which are triggering exception messages for our planners and buyers. They can't hit a date in the past, so lose faith in the signal, which erodes their confidence in putting MRP to use in their day-to-day lives. Now signals lost, value gone, quality continues to decline, but the moment you can commit to using the information, the moment you focus on it and back it with daily work, so it becomes a habit, the healthier the quality becomes. If it's in use, it matters. Here. This is interesting. See this pattern of actual production in this candy cane graph. This measures our schedule adherence. All of the production seems to be happening at once. Then there's a gap and another slew of production comes through. I bet if we dug into the details, we'd find that we're batching our production reporting. There's several reasons why this happens, but I'll highlight two here. Lack of equipment or access on the floor, or reliance on a batch integration from an MES system, or lack of confidence in the ability to accurately report based on the quality of master data that supports production. This is a great opportunity to make improvements in focused bite-sized chunks, progress over perfection. There are many examples we can identify and improve the integrity of our transactional data. If you're looking for a place to start, check out our videos on housekeeping, COGI, the Sales Order Monitor, or the Warehouse Activity Monitor. These are all diagnostic tools that help us identify where we're hurting and break the work down in a way where the improvements are impactful and the team can start putting better quality data to use in their day-to-day lives. Here's one last tip. Without transactional data integrity, it's difficult to demonstrate that you have good controls in place. Taking steps here pays dividends to the integrity of your plans, financial controls, service levels, and inventory management. You can have a healthy system. We've seen hundreds of organizations achieve and sustain these gains. No one likes driving a car with dirty oil. It just never performs the way we want it to. And the worse it gets, the harder it is to clean up. When it's time to get serious about investing in data reliability as an asset, we recommend focusing on progress over perfection. Don't let your team get sidelined just because there's so much to do. Start small, create momentum. Let them see and feel the results. Show them that this kind of hard work pays dividends, not just for their desk, but for their colleagues as well. There's a ripple effect of goodness that comes from this hard work. Before I let you go, please don't make this a sprint and erode effort. Focus on the cultural shift and the move to well cadenced daily habits. That's the way to get real about data. Martin: Hey Steven. Thank you. This is kind of like the right to play stuff that we're talking about. If we don't build the foundation, then we limit our ability to grow, but with investment in the quality of data and the focus of empowering decision making, we can really make a difference and a change in our conversation. This is the path towards achieving business objectives. So folks, if you want to know more about this topic or even just some other leadership digest topics, there's a whole catalog of videos about this, please check them out and if you're not sure which ones to look for, use the chatbot.

PTM

MD01; MD02; MD03; CM01; CM25; MD01N

Martin: Hey folks, welcome to the video service that unlocks and reveals the hidden value in your SAP system. So the best way to learn is by doing so, let's just get straight into this. This video in particular, we're going to be focused on using SAP's production planning lead time scheduling to generate machine and or labor capacity requirements to produce the required inventory. So I'd imagine I'd be preaching to the choir if I rattled off some statistics around related to being able to provide a quality promise to your customer. Making and keeping that reliable promise to a customer in many areas is a right to play and in others just purely a competitive differentiator. This of course, strengthens the integration between ATP, order fulfillment, procurement, and of course even product costing. So that's a lot. So how about we get into it and of course, tell us more about this Eacliffe, love to hear more about scheduling. Eacliffe: Thanks Martin. This topic allows production planners to aggregate capacity data to perform a relatively quick evaluation of manufacturing assets, for the short, medium, and long-term time horizon to make key decisions in honoring the commitments to providing manufactured materials in a timely manner. Production planning often occurs outside of SAP, given the existing solution needs to be fixed or takes too much effort in SAP. Unfortunately, this approach does not work well when integrating with other supply chain activities such as exception monitoring, purchasing, and finance, just to name a few. Why, of course, you should be able to promise against what you have. Why would you not be able to do that? If you are in this situation, don't worry, we are going to walk through what you need to be doing about it. Let's get into SAP. Let's explore how lead time scheduling works and let's understand its impact.What I've done is I've taken this material, put some demand in SAP or MRP as generated plan requirements. And when I ran MRP, I did not tell it to generate or use lead time scheduling. The results of that is when I double click on the plan order, I come into change mode, we can see that there are only three tabs, the header assignment, and master data. When I come to the master data tab, we can see that there is nothing related to the routing or master recipe. So that's issue number one. Okay the way this shows up in capacity evaluation is when I come over to the capacity evaluation transaction, the expectation is in this particular demonstration, we would expect requirements against this particular resource. So let me click on standard overview, and right now what we see is just 0 requirements. So even though we have planned orders out there over this time horizon the system is saying, look, don't need any capacity on the resource at this time. So I'm going to go back into the stock requirement list, and I'm going to rerun MRP using lead time scheduling functionality. So, the parameter of interest is this one down here, the scheduling parameter. When I do the drop down, there are two options. One is which is what I used before , is basically just give me timing. Based on other criteria I just need basic dates, but don't really give me capacity information versus option two. Option two says not only calculate the dates, the start and finish dates, but also tell me how much capacity I need to fulfill each of the planned orders for this material. So let’s select 2, I’m going to hit enter, enter to run MRP, come back over here, I'm going to do a refresh and now I'm going to take a look at the planned order. Let's come to this plan order, come in to change mode. What we can see is first, that there are now four tabs rather than three. But let's go to the master data tab and we can see that there's additional data now on the master data tab where the master recipe got pulled in. So this master recipe is now providing the production rate in terms of, hey, this is how many units we can produce over a certain duration of time. And then if I come to the scheduling tab we get the exact information in terms of basically what we will see is, let me scroll over or make this smaller so that we can see that basically 30 hours of time is needed. So 30.32 hours is needed to fulfill this particular, planned order. So when we convert it into a process order, that's how much time we would expect. And of course, when I come back to capacity evaluation, I'm going to do a refresh over here, and now we can see that we also have capacity information sitting over on this side. Okay, so you could see the impact of doing lead time scheduling and the fact that if the desire is to do things like work on the scheduling board, do capacity evaluation, we want to run MRP in lead time scheduling, regardless of if it's being done in background mode every night or it's being done online one material at a time. Hey, welcome back. In this demo, we have covered a few things. First, how to quickly perform capacity evaluation when performing lead time scheduling. Secondly, how to trigger lead time scheduling. And thirdly, the information required to perform lead time scheduling and strategic integration points. Martin: Eacliffe, thank you so much. Much appreciated. That's a lot of detail. So lead time scheduling allows for lengthening the runway on identified bottleneck challenges, and improving your supply chain integration. This is a topic often isolated in a spreadsheet that is poorly integrated with the remainder of the supply chain information in SAP due to data inconsistencies, et cetera. It's also going to be a journey to get us there. We have got to go from basics and kind of grow into maturity. But there's no question that this is a hot topic and can make a big difference in how we apply this to our supply chain. So folks, if you want to know more about this topic and other scheduling related issues related to SAP, please check out our other videos. And of course, if you have a particular question, feel free to raise it below.

P2P

MD07; MD04; ME21N; ME33K; ME38

Hey folks, welcome back, Martin here. Now here's a really fun topic that sparks a lot of curiosity. Let's go shopping. Now, SAP has many ways to make the process of placing PO's or shopping easy, but many organizations continue to manually enter or modify their purchase orders. That's a lot of work and is ripe for opportunity for error. Let's see how we can address this, exploring a few and different ways in SAP that can make the process of placing PO's easier. And here to help us today is Jen. Now Jen, does the prospect of shopping sound exciting? Or more like a chore for you? Well, it depends, Martin, what are we shopping for and who's paying? No one likes a clunky shopping experience, and that's exactly what we're going to work through today. Let's make the purchase processing easy by putting SAP to work for us. Today we're going to explore how to get the most of our data so we get a good purchase order right out of the gate, minimal manual maintenance. Then we'll talk about how to make the maintenance easier if we do need to make a change. And lastly, I'll highlight a few of the options to level up your purchasing game with a smart use of outline agreements. Let's dive right in and take a look. As a buyer, I'm responsible for setting my suppliers up for success. It is my job to release purchase orders for or delivery schedules to them on the correct cadence and with all the right details. There are many ways to identify what purchase orders need to be written today. First, I could pull out all of my materials by supplier through MD07. I then review my planning situation to see if I'm happy with my planning. Do I have any issues with lot size, lead times, or safety stock? Are there any open past due PO's? Do I have any exception messages that suggest we're falling behind to demand? Once I've got comfortable with what's pending for this supplier, I am ready to go shopping. Now, I could convert individual requisitions right from here. See this release date column. This tells me the date I should convert the requisition. I don't want to release a requisition too early because it limits flexibility if there are changes in demand. I don't want to miss a release date because I want to be giving the supplier the necessary lead time. This is true Goldilocks moment, we want to get it just right. Now, if I didn't want to go through and convert these one at a time, and I don't, one of my other options is simply to go shopping. Let's head over to ME21N, and let's look for purchase requisitions for the supplier and for the appropriate release date. This is going to create a work list for me. I can now take the requisitions and place them in the shopping cart. This is my favorite part. Now all the details from the requisition will flow in from me and auto-populate onto the PO. As you're getting used to this process and working away from manually entering the supplier, dates, quantities, or even price, you may find missing information or incorrect information, and that's okay. Just stop, take a moment and fix the input to correct the output. Next time it will be correct for you. One of the most common mistakes we see people make with purchase orders is the price or price per. We don't want to have to manually enter that information if we don't have to. Setting a rule in place certainly helps though. You can use the search functionality that we just tried here to pull all of the requisitions you're responsible for by the release date. Make sure to look for the requisitions that are missing, the supplier so you can fix that master data and don't miss the buy. ME57 is also great for identifying and correcting missing source data. If there's a lot, fix the data for 5 to 10 today, the pile will get smaller. Now, let's say we need to make a change to this PO. Maybe we need to update all of the dates. We can quickly do this with a fast change. If you look here, there are many options that are eligible for fast change. We simply select the change we need to make and we're able to apply that value to the selected items. Before we wrap up today, I did also want to mention another major helper to the procurement process, outline agreements. We have the ability to set contracts up and then call those contracts with discrete PO's. No need to create PO's for large quantities. We also have scheduling arrangements that allow MRP to create delivery schedules across time, so our supply is time for when we need it. Both allow us to give us the supplier anticipated volume with easy maintenance and excellent reporting. Thanks for shopping with me. The order acknowledgement really is a great tool to get closer to your suppliers and encourage a proactive exchange of information. The showstopper for a lot of teams is if they're just getting started and the volume seems impossible to keep up with. It doesn't have to be. There are lots of ways to get this information loaded into the system, and a pilot program supported by the manual maintenance will help the team see the value in the effort. Then you can optimize the process with your suppliers, broaden the program and make it efficient. Let's keep the communication flowing with the effective use of order acknowledgements. Thank you, Jen. You know, we work with buyers all the time that are experts at their functional areas, but struggle with the tactical aspects of execution. Walkthroughs like these just help make life easier and helps the team really focus on the good stuff and the spend analysis, the supplier quality, and obviously, good old performance and strategic sourcing. It doesn't have to be hard and dare I say, even fun. Hey folks, if you're looking for more fun areas to go and explore, please feel free to use the AI, they may have some recommendations too.

DM; P2P; PTM

MD04; MM02

The best way to learn is by doing, so welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, Martin here, and in this video we'll be taking a deeper dive into safety stock. Now in today's video, when we say safety stock, we are referring to static safety stock maintained in the material master. This is the flavor of safety stock most commonly used and therefore most familiar to most MRP controllers. It's one of the key decisions that needs to be regularly reviewed, and those discussions and approvals tend to be a cross functional in nature. Kristie, how about you tell us more about safety stock and specifically the static safety stock that we just called out. Kristie: Well, Martin, it seems that this is a high area of interest for folks. So what we're going to do today is take a deeper dive. Now, there are two major areas of discussion around safety stock. The first is what flavor is it, static or dynamic or safety type? Which one is best for [00:01:00] which planning situations and how do you determine a good value? And then the second is what the safety stock is actually going to do and how it should be thought about in the planning results. In this video, we are going to be focused on the latter. You've determined a value and now you're going to see how the system is going to respond. SAP has some options for us here and I'm going to get in and show you. What, where and how those options may play out. We will also touch on what a static safety stock might be a good fit for and some situations where it may not be a good fit. And lastly, what a good cadence of review might look like depending on what season of planning the business you're in. Let's get into it. All right, let's go in and take a look at the planning situation for this material with some safety stock on it, and what you'll see here is that we have an exception message 96, and if I double click on it it's going to give me the definition down here. So it says stock fallen below safety stock level, and we can [00:02:00] clearly see that. So our available quantity on hand right now is 87 pieces, and we have a safety stock of 100 pieces. That leaves our available stock balance at negative 13 pieces. Safety stock comes off the top, so it's the very first thing that MRP is going to plan for, it's the very first demand that it's going to see. ~Okay? And so,~ From here, it's going to go out and plan the rest of the month for us and start to get our replenishment in order. So the static safety stock needs to be looked at regularly, that's the very first thing that we want to make sure that we're mindful of. We don't want to change it too often, but we do want to make sure that we're going through and we're reviewing our safety stocks on at least a quarterly basis and dealing with any outliers. ~okay? And that is becomes very, very important. ~And then if there's a major forecast change, or if an item switches to a different point in the product life cycle, then we also would want to be able to go in and look at that and review it at that point as well. ~Okay,~ So some things that we want to consider as we're thinking [00:03:00] through our safety stock value, and I'm just going to go ahead and navigate here and remind you of where this lives, so it lives on the MRP2 view, and you'll see it right down here, ~okay,~ and we have the option of defining the safety stock level ourself or using an MRP type in conjunction with a service level that we're trying to achieve and having SAP go in and calculate that value for us. ~Okay,~ And that's a very interesting way to go about things, but most organizations are calculating this in some way either ~um,~ outside the system using another tool, and in some rare cases also using that feature in SAP that most people don't know about. So we'll have another video to explain that, but when we're thinking about safety stock and reviewing it, any changes, significant changes, in our lead time, in our minimum order quantity, in our lot sizing procedure, variability, new customers or structural changes to our forecast or in our product life cycle would cause us to want to go in and [00:04:00] review this, and you can see we've got this set right now just so it's really easy for us to see what's happening with the planning, which is the planned delivery time of 0 and in house production of 0 as well. So let me go back over here and we can see that this is also lot for lot with a minimum lot size of 3 and we do have a planning time fence out there of 7 just to park that demand out at the end of it. The other option that you have when it comes to your safety stock is you can make a decision on how much of this safety stock is considered available to planning. Now, as a general rule, you want to keep this as simple and as straightforward as possible and so most cases, your safety stock value that you see here is not going to be available to MRP, meaning that we want to honor the full 100 pieces. But you do have the ability to dampen the noise a little bit and let's say your safety stock is a 100 pieces, [00:05:00] you actually could change that so that it is considering a different value and i'm going to show that to you just so you can see what it looks like. I'll go to environment and change material and what we're doing here is we're actually controlling this by our MRP group. So let me go in and choose a different one here, I believe this one will do it and save And then right here from my navigation profile, let's actually switch that over. I'm going to switch to navigation profile, that's going to let me quickly go in and do the things that I need to do, which is going to include running MRP. So I'll go ahead and do that and save. Thank you very much for saving that, and now I've got my hotkey to go directly to MD02. It's going to let me run MRP. Go ahead and run that. And so the other thing that we can do is we can look at our periodic totals, which will help us to see how long that safety stock is actually going to last. So let me go ahead and [00:06:00] refresh. Okay. And what this actually is doing now, you'll see the values have changed over here. So it's letting me use some of that safety stock. I'll change it back here in just a moment so that you can see that again. So you'll see here we're swinging negative, we've got negative 69 pieces and when we come back here to our next replenishment, you'll see that we're able to actually go in and consume some of the safety stock, and what we've set it to is allow it to use 50 percent of that safety stock in planning. So that's an extreme level just so that you're able to see it today, but in general, ~first of all, I'll~ start first and foremost with being able to, ~um,~ have that safety stock stay clean and not use it in MRP, meaning you're not allowed to dip into that 100 pieces, you want to get that warning message immediately, get the exception message, and get the replenishment plans. But if for whatever reason you are in a position where you need to actually dampen that noise, you've gotten really good at keeping your safety [00:07:00] stock up to date, you're feeling confident with it, then you can actually choose to adjust the percentage ~of, um,~ of what it is that can actually be considered in planning, so, it's an ~alternate, um,~ alternate option there for you. What I wanted to show you also is this periodic total. So, we can actually come in here and see, let's look at our months, so we can see what our demand is over the next couple of months and that is going to help us to know how much we're covering with that safety stock. So, maybe that 100 pieces is way too high based on what it is that we are currently using. And you'll see here ~that~ that 100 pieces actually lasts us quite a long time, so this would be a good candidate for review, and bringing that back down, think about the class of the product and the variability. So your ~A, B, C, ~A, B, C and X, Y, Z, ~um,~ so your importance of that product and then the variability and how volatile it is to help you figure out how much coverage you're going to want. So a couple of different options for you there in terms of being able [00:08:00] to use that safety stock and set it up appropriately with a good cadence of review. Again, make sure that you don't change it too frequently, like if you're changing it every month, that is too often unless you are in ~you know,~ a very fast turning industry. And try to take a look at it based on ~you know,~ your own seasonality and review. And then make sure that you are triggering it with events like product life cycle management, reviewing to see what your usage looks like, and keeping an eye on those lead times and lot sizes to make sure ~that ~that safety stock still makes sense. Okay, so in summary, today we've taken a deeper dive into static safety stock and what the rules around it mean to our planning results? We still definitely have our floaties on on this topic and we could spend days actually workshopping it. However, we hope that this gives you a little more insight into the reaction of the system and the options for how safety stock can be used in the planning and availability checking. Remember that because it is static, it does not automatically change with the seasons, the [00:09:00] life cycles, or the changes in business dynamics. We are in control and we need a good cadence of review and adjustment that is exception based and at a frequency that makes sense. Back over to you, Martin, to bring us home. Martin: Once again, thank you Kristie. Brilliant. This is a hot topic and I don't see that changing anytime soon, frankly. Safety stock can be such an asset if planned well. I like the options and reminders we talked through today and hopefully that will support everyone with good reminders as they go into their next cycle of review. Choosing where you want to invest working capital, time, space and materials is a key decision in the planning process in any business that's a supply chain oriented. So folks, if you want to know more about this video and others, please check out our other catalogs and of course, if you have a particular question submit it below.

DM; P2P; PTM

MD04; MM02

Welcome folks, Martin here, and welcome to the service that unlocks and reveals the hidden value in your SAP system. In this video, we'll be discussing one of the least well understood buffering techniques. It's called safety time. Now, so far, we've been talking about quantity buffers, but in this video, we're going to be focusing on time buffering. Let me make one point clear, though. Safety time is still an impact on working capital. You're holding the inventory in stock for longer than necessary to protect against volatility and variability and while both static and dynamic stock is primarily focused on protecting against changes in demand and we're often ongoing, safety time is focused on protecting against variability in supply and should be a temporary measure while the root cause of that constraint of performance issue is worked on. I know there's a lot there and a lot said so we want to get into the details of this, Kristie, tell us how to use [00:01:00] safety time effectively. Kristie: Sure thing Martin. Of the safety options, this is the one that causes the most confusion. Your point on working capital? I have a vivid memory of sitting across from my team when I was new to the organization. They were absolutely insistent that safety time was no big deal. They had it on every item because it's not safety stock and therefore it was low risk and less impactful. So, let's test that hypothesis. Let's go into SAP and try out some different safety time settings and let's look at some of the different results. What are the actual impacts for working capital? What do we actually risk? And why are we saying this should typically be a temporary measure while the root cause is addressed? I think the only way to effectively address this is to jump in and learn together by doing. Let's do it. Safety time. I think that this is one of the most interesting safety features available to us ~um,~ on the ERP side for [00:02:00] SAP and I'm excited to talk to you a little bit more about that and actually show you in the system today. So you'll see here, I've removed all other safety stock that's going on and now we're going to actually try to introduce some safety time and as a reminder, we want to use safety time really in specific situations, they should be ~um,~ event driven, short term, maybe we're working with a supplier and ~um, you know,~ we're going through an improvement activity with them. So we want them to actually see that it's due earlier, but still maintain the lead time and then be protected on the back end because we actually have buffered. So ~let's,~ let's look at this and see what it actually is doing. So the first thing I'm going to do is go to environment and I'm going to go in and I'm going to change this material and if we look here, not a whole lot going on, I'm just going to keep this really simple and easy to see. So I've wiped out most of the other planning~ um, different planning ~parameters so that we can focus purely on the safety time. So I'm going to come down here and [00:03:00] there's a couple of different settings. The first is the safety time indicator and you have a choice, so if it's blank, no matter what else you have populated, it is ignoring your safety time. So this has to be set in order for it to be MRP relevant and then one is if we want to just use safety time for our independent requirements. So things like our planned independent requirements, our customer orders, those kinds of things, deliveries. Or if we want to use it for our all of our requirements, meaning also considering dependent requirements that are coming through. So in this case, we're going to go ahead and say, yep, use it for everything, that's just fine. So now that we've turned it on, okay, think about that as turning it on, now we need to decide how much coverage we need. ~Okay,~ So let's take the example of you're working with a supplier, they're having some trouble, you've gone through and you've run your lead time reports, you've done some ~um,~ looking at what it is that they're actually delivering to you [00:04:00] based on your purchase order date versus your goods receipt date, and you're finding that their lead time is maybe ~it's~ 19 days and they're actually delivering in ~like~ 25 days. So let's go ahead and say ~Okay, ~that's 6 days, let's give them 7 just ~to,~ to help. And so you've got a specific improvement initiative, you're working hard with that supplier, you want to maintain your lead time while still keeping you safe. So this is going to tell the supplier you need it 7 days earlier, but you're still going to give them their stated 19 day lead time, but you're actually going to be allowing for it to take up to 19 plus 7 days in this case. Now we have zero lead time on here right now, so I'm going to go ahead and hit save. And what we're going to see is we're going to see all of our requirements actually change by about 7 days. Okay, so we just saw here, we've got some start and [00:05:00] release dates that are coming in and what I'm going to do is I'm going to click this little button that says switch on safety time, and what I want you to keep an eye on is this requirement for 325. Okay, see this guy here 325, 6 pieces. I'm going to hit safety time and this one for 4/1 here is for 55 pieces. ~ All right, ~So, now what we'll see is that thing for 325, that independent requirement has gone actually to 314. And we had another requirement out there for 5 pieces and it actually went to 321. Okay, now let me turn it back off, there you go. See your 6 pieces moved out and if I scroll down just a little bit, there's your 5 pieces. So it's doing that offset and it's basing that on the factory calendar. So let's go back in here. I'm going to show you something else that's really cool. And if you're not sure how it's doing that math, then just [00:06:00] come down here ~and you can always do, here you go, and it will, ~you can always do F1, and you'll see here safety time is in work days. Okay, so based on your factory calendar. So 7 days could be 7 calendar days, if your work calendar is for 7 days a week, in this case, it's 5 days because my work calendar is actually 5 days. ~ ~And then the other thing that is here that is really helpful is this is called a safety time period profile. So let's think about when you have a particular situation that only lasts for a couple of weeks, and I'm thinking here that the big example is Chinese New Year. So perhaps you are working with your suppliers in China and you want to actually offset just for the period around Chinese New Year and actually have your requirements pulled forward. You could set up a safety time period profile that only lasts for that particular period of time. And we'll do [00:07:00] something like bring all your requirements in two weeks early to help you navigate that. I can't tell you how many times I've gone through and had to manually manipulate that to get it to be two weeks early. So this is a great way to explore that as well. Now this is a little piece of configuration, you go in and you set up the profile and then you'll have profiles to select from when you click on this little drop down here. Okay, so you see here, there's one here called dynamic safety time, and this is set up for just one little period of time, and it will do the offsetting. So that is another great option if you're looking for a way to accommodate some sort of periodic adjustment. Maybe you have physical inventory every ~you know,~ December, July, or June, and you can actually schedule to have your deliveries coming in just a little bit early just for that particular period of time. Then you don't risk carrying a lot of additional inventory because ~you, um,~ you've got this ~just kind of~ turned on and you forget to turn it off. So, make sure ~that, um,~ you consider that as an [00:08:00] option. As well, be mindful of your work calendar and then consider whether you're using safety time just for your independent requirements or for everything. ~Sometimes when it is, I'll give you~ Another great example, candy season in Chicago, it's really hard to get trucks, so you need a little bit of extra lead time there. Sometimes there's congestion at the ports. ~So, um,~ You want to make sure that you're using this very ~Uh,~ specifically, ~so, ~and it's not something that becomes ~a,~ a time offset ~uh,~ that is ~always,~ always happening for you. You really want to be ~um,~ driven ~by,~ by purpose when you choose this. And then when you're using safety stock or coverage profiles, again, make sure that we don't stack ~on,~ on top of one another with quantity and time buffers, or we can find ourselves going It's carrying way too much inventory very quickly, so be very judicious with this and make sure that you're reviewing it on a regular basis. But there's some really great tools here for you in terms of being able to buffer that kind of time versus having to deal with quantity. And it also allows you to quickly see what's going on and which items are set up with safety time and you should have a good reason, a specific reason why you're using [00:09:00] that. So nice features there in terms of being able to go through and do that balance and bear in mind, you do not get an exception match since 96 with safety time you're only going to get that with your static safety stock. All righty, let's review what we explored together today. We went into the material master and tried a couple of different options for safety time. We ran MRP and we reviewed the results. And then we took a look into how to incorporate safety time into our review or not. We discussed the benefits and the challenges and we talked about how to think about safety time versus safety stock. And Martin, if I can make one more point. We've also seen organizations try to use all three techniques on the same part. Doing that is like saying Beetlejuice three times. I will appear in your office. And while it's awesome to use all three flavors of safety buffering across your organization, please choose and build a plan for that part and make sure it's a good, clean plan where everyone can [00:10:00] understand the results. Martin: That's an excellent point, Kristie. Thank you so much. So safety buffering is a commitment to resources and working capital right. We need to be very deliberate and transparent in which technique we're using and why in order to get the best value out of your inventory investment. So these conversations should typically take place cross functionally in a mature MRP environment and should be at the forefront of sharing information on what they are seeing and which part is the best choice for which particular product. So folks, if you want to know more about what particular parts and rules to use for your materials, please go ahead and check out our other videos and if you have a particular question in mind please submit it below.

MM; PP

MD04; MM03

Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, Martin here and in this video we're going to focus on key master data rules, lot size keys. Lot size keys define where the MRP will accumulate quantities and the timing of proposals for replenishment. And as we know, the best way to learn is by doing so Kristie tell us more about lot size keys. Oh, Martin, lot size keys are often misunderstood and commonly underutilized. This key master data field sets the stage for replenishment and there are great use cases for the different types of lot size keys. Today we will touch on. The different lot size keys. Review where to find this key information in SAP. And provide some tips on how to get more value out of this underutilized key rule to empower MRP. One of the key planning rules for our MRP run relates to our lot size keys and today I want to go through and show you where to find this in the material master and then talk you through a couple of the different options. So I'm starting here from my stock requirements list, of course, because this is where I spend most of my time as a planner or buyer and I'm actually just going to go in and take a look at this material. Now if I was just going to display, I would double click, but I think we're going to do a little bit of changing here, so I'm going to go to environment and say change material. and my lot size key lives on this very first MRP view. And there are really three different kinds of lot size keys, or categories of lot size keys, and I want to break them down for you. So the first is a static lot size key. So this is going to be things like a lot for lot order quantity. It's going to be things like replenish to a maximum stock level. These are the kinds of lot size keys that we will be using if we are going through and have a static way we want to replenish. Also things like fixed order quantity which is what this guy is set up as. So let's say, for example, you always have a truckload of product coming in. You're going to have a fixed lot size with a fixed order quantity and MRP is only going to give you proposals for that full truck, or half truck, or pallet, or tier, or layer, or whatever the case may be, but you know that you are only ever going to order and lots of that. So you may get multiple trucks for the same day but you're going to get a proposal, a replenishment proposal, for exactly that amount. Or you might have something like a lot for lot, and so it's going to look and see what that requirement looks like and if you need 2,000 units to supply production then it's going to look at that value and then you may have something like a rounding value or a minimum order quantity that is also going to go into play. So as soon as you see that you have a need for those 2,000 and you are required to order 2,200 it will follow those rules. So it will say, next proposal and then what is my MOQ and my rounding value. Another good example would be something like an HB, which is replenished to the maximum stock level. So maybe you're working with a min max, let's say for example, you are dealing with constrained storage, so maybe like a tank or a rail car or something, and you're going to say, okay, as soon as I hit X volume in that tank then I want to replenish to the max, I'm going to go ahead and fill it up. This is often used sometimes with giving signals to our VMI suppliers, they are managing that for you but it gives them a good idea of what your forward looking plan might look like. The next kind of lot sizing technique is a periodic lot size. So now we're gathering requirements. So we're going out and we're saying, I want to supply for that entire day. So I might have multiple requirements within that day, I'm going to produce a daily lot size, and again this can work with minimum order quantities, or rounding values, or maximum lot sizes, okay? So based on what those rules are for your supplier. Or I might be doing a weekly bucket, or a monthly bucket if it's a really, really low volume item and I'm only going to order it every once in a while, so those periodic lot sizes. Now, those generally will work in combination with what your planning cycle is, so how often you're placing those orders with your suppliers. And to protect against variability and volatility, we ideally want to place orders in the smallest quantity that is economically feasible and as often as possible. So really focusing on the richness of our mix to help mitigate the variability and volatility that we might be seeing in demand. So based on that ABC and XYZ classification or segmentation of your goods, that's going to help you to get the right assignment in place. The last type of lot size or last category of lot size would be something like an economic based lot size. So you might be running one of the statistical algorithms to help you to figure out what the most economical order quantity would be. Now that is a more advanced technique, so that means your master data is beautifully clean, we've got a high level of trust in MRP, and now we're ready to start allowing SAP to put some of those economic principles in play for us. So really more of an advanced technique once you've gone through the others. One other one I will highlight for you that is also a periodic lot size, this is PK. So let's say that you need to control your amount of goods coming in on a particular day or you need to divide what days particular suppliers are going to be delivering to you or you have a supplier that only delivers on a particular day. This is where you set up those planning calendars to say this supplier is delivering Monday, Wednesday, Friday, but never Tuesday, Thursday. You're able to go in and set up those kinds of calendars to help manage that influx of goods. This is also very effectively used for trying to balance out how you're receiving inbound goods across the week so you can manage your workforce or your dock doors and that will help play into what's happening with the warehouse. So oftentimes this is not richly populated in the material master and there is a huge opportunity to be able to use these different lot size keys. You will want to use each of the fields that are available to you to reflect the rules of your supplier. So for example, don't use a monthly lot size because your supplier has a higher MOQ. Think about your replenishment cycle, think about how often you're going to place your orders with your supplier, and then use your MOQs and your rounding values to reflect minimum order quantities and the rounding values associated with it. Your rounding values are really your container sizes, it helps to play into your price breaks you maintain in your price conditions, but that MOQ is the smallest amount that you would purchase and then you're going to use the amount of gathering, so if you're gathering a day or a week's requirements together in order to place that order with the supplier. So those are three different categories of lot size keys used in conjunction with several other settings in the material master in order to drive your planning, but this is a great way to go through and model your procurement strategy and start to work through these pieces together. It's also incredibly helpful as a planner, as you're setting up for manufacturing, you're going to tend more towards those EX lot sizes, or very small buckets of periodic lot sizes, if any periodic lot sizes at all. So, in summary we have covered. How applying a quality lot size key allows you to drive better plans for replenishment. Meet a variety of different business needs. And be set up for success with your suppliers, sister facilities, and the manufacturing floor. There is so much goodness in this topic that we will most certainly be back for further exploration in another video or three. Thank you Kristie. Driving synergy across the different rules for planning is the fun part. We can definitely put MRP to work for us and start to drive better results as we explore the options here. This is a key one for managing working capital and reducing manual interventions. So folks if you want to know more about how to use lot size keys or any other feature in SAP please feel free to check out our other video services, of course if you have a question please submit it below.

P2P; PTM

MD04; MD05; MD06; MD07

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we're going to specifically focus on the taking advantage of SAP's MRP exceptions. When used correctly MRP exceptions can help organizations be much more proactive in responding to supply chain disruptions, allowing the business to become more agile. Kristie, how about you take us through some of those specific examples to teach us how to be a more agile business? I've got some great tips and tricks for you today. MRP exceptions viewed via the exception monitor is a game changing feature when used correctly. And in this demonstration I'm going to focus on three key things. First of all, where and how do we find these exception message? I'll give you a tour of the exception message groups and what standard looks like. And then lastly, I'll cover off on MRP's job and the reason we receive these exception messages. So everyone knows that SAP is built for exception monitoring and we talked a little bit about the fact that there are tools in every functional area for exception monitoring. Whether you work in demand planning or demand management whether you're in order to cash or customer service, whether you're in the warehouse, production planning, there's all these different tools that help you with exception monitoring. But of course, the one that is most known to planners and buyers is the exception monitor. So we'll go in and we're going to take a look at this today through MD07. I could also look at my business of the day if I'm on ECC or I'm running standard MRP versus MRP live and MD06. And I'm just going to go ahead and pull up one of our plants here and take a look and I want to just talk a little bit about what an exception message actually is, and what it means, much like all of the other alerts that we would receive in life or doubt on the floor, like an and on alert, a stoplight, anything that pops up on our dashboard, the buzzer on the dryer, going off the beeper on the stove or the microwave, letting us know that something is happening. The purpose of the exception messages is to alert us to a situation, and what we can see here is that there are 8 different exception message groups, and they all mean different things. But the purpose is to let us know which materials need attention and to allow us to prioritize based on the severity of that exception message, which material we want to look at first. And if I click on this information icon here, it tells me a little bit more about each of the exception message groups. And so there's 46 total exception messages spread against 8 groups. They are grouped logically, and so you can take a look and see what your system says versus what you're seeing here, this is the standard setup for the exception messages, and they're grouped in a way that makes sense. So let's take for example exception message group 7 and exception message group 6. So these are the ones down here at the bottom. You can see here that exception message group 7 is all about exception messages that let us know that there's a misalignment of the dates or quantities of supply to meet that demand needs. So you're going to see here bringing process forward, pushing the process out, canceling the process, or we're behind and getting the process started, that's exception message 30's, exception message 6 lets us know that we've got a problem with either where we're storing the stock or based on the rules around how we're able to supply that demand, and so it's letting us know where we need to go through an explore those types of things, but they're grouped in a very logical way so that we're able to go through and address them. It's, really any type of alert when something is not happening as it's expected to, when there's a deviation from plan. So if you think about MRP, it has kind of two jobs. The first is determine what we need, how many we need, and buy when we need it. So seriously, fifth grade math, if not second grade math. Really, it's just the puts and takes on a large scale that we can't do just with Excel or another tool. So it's going through and it's actually addressing that constraint for us and processing all of that information through and exploding our BOM's. So that we get the right requirements at the right time with all the different considerations for the different rules around lead time, lot sizing, safety strategy, all of those good things. So it's going to do all that math for us, and then whenever that plan does not match up, it's not able to satisfy the demand based on the rules that we have in the system, or based on the firmness of the element, it's going to let us know by generating one of these exception messages, and that is going to help us to be able to go in and review our materials. But when we review our materials, when we're doing exception monitoring, it's not about resolving a particular exception message, it's about resolving the planning situation for that particular material. So as planners and buyers, that's what we're looking for, is to prioritize our materials for review and as long as we have them open, we want to be the right kind of lazy, we want to address the entire planning situation so that we do not have to go back and look at that material again. And that is the point and the purpose of the exception monitoring and management tools that you will see all the way throughout SAP is where we need to intervene, let the system do the heavy work for us, and then proactively manage the planning situations so that we're in a good place as we move forward through time, and we start to reduce the amount of exceptions and get to a place where it's manageable on a day-to-day basis. So in summary we have covered how MRP exceptions will allow you. First of all, proactively manage what's happening in the supply chain. Second, resolve an entire planning situation for a material by using the exception messages as a way to hone in on the materials that have the most severe planning situations. And lastly, develop a daily habit because we all know a good cadence of daily habits helps to keep the crazy away and the chaos at bay. Thanks Kristie. As always very insightful. Changing to an exception mind in organizations is critical in becoming world class. Proactively responding to these exceptions will allow us to be more agile and responsive. If you'd like to learn more about how to get the most of your SAP system please check out our other videos and if you can't find something you're looking for feel free to submit it below.

P2P; PTM

MD02; MD03; MD04; MD05; MD06; MD07

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin and in this video we're going to focus on how to interpret SAP's MRP run results. Often organizations ignore the MRP results since they don't understand how to interpret these results. However, when you understand how to read the tea leaves, this becomes a very powerful tool to set up your daily work. Kristie, take it away from here. Absolutely Martin. Reviewing our MRP run results provides a powerful feature when used correctly. Let's take a look at what happens after an MRP run, in this demonstration, I'm going to focus on three key things. First of all, MRP basics.,I'll provide a basic house tour. Second, the processing indicator and what it means when we check it. It's way more important than we typically will value it as. And lastly, a key exception that we need to be on the lookout for that commonly occurs in our MRP runs. Okay, so let's pretend for a moment as though it's the beginning of our day and we were coming in and we want to see what has happened overnight so that we can see what's going on with our MRP list and what the business of the day is. So we're going to go first MD06 and this is we're going to be able to see collectively the results of the latest, greatest MRP runs. I'm going to go ahead and do that, and while I'm working through bringing this up, just a note, we still would use MD07 or MD04, our stock requirements list throughout the day. This is to get the day started, so what is the most recent information? And when you come in here, you're going to enter most likely your plant and your MRP controller number if you have the extended selection criteria in place, then you're able to enter multiple plants or multiple MRP controllers or buy materials, so you get a lot more of that selection criteria. But if you're using just standard, regular old MD06, this is what you're going to see. And if you're on S/4 you may be doing something similar, except you're going to be doing this through MD07 if you're running MRP live. So you'll come in here and you'll enter your plant and MRP controller, in this case I just want to look, I'm going to look wide open, I just ran for this entire plant. So I'm going to, I'm going to bring the whole thing up today, but I just want to point out a little bit of the additional selection criteria when you're going in to review your results there's a couple of additional pieces of information if you want to be able to really hone in on the results from last night's run. And so you can actually come in here and you can put in your MRP date, so let's say your last good MRP review was last Thursday because you took Friday off and now it's Monday morning. You can put in a range of dates so that you're seeing all the MRP results for the MRP lists that were created in that period of time. So that can be really helpful if you're out for a period of time. Otherwise, as you're going through your week, if you're able to get through your exception messages on a daily basis, which I know for a lot of us that are getting started, probably sounds nearly impossible, but rest assured it is. When you're at a place where you're able to get through them on a daily basis, you can actually just run for the last day, which is awesome. The other thing that you can look at is the processing indicator, so you can look at just the things that have not been processed. So let's say you get started in the morning, and I know this would never happen, but you get interrupted for reasons, right, and you have to go attend to something else. If you're clicking that processing indicator then you can come back later in the day and just focus on the things that are not yet processed. Okay, but for me I've done nothing, I'm going to go ahead and just run this wide open, and this is going to bring in my total list. So I had about 1,100 materials that fell into the criteria of what I was looking for, and you can see now I'm in here and I've got my red, yellow, and green lights, which you cover at length and some other videos, but the other thing I can see here is my MRP date. So this is the date that this item was last run through MRP, so you can see I've got this one that was really recent. So if I'd used my dates to filter. I wouldn't see a lot of this old stuff, and there's an opportunity for you to go through and reorganize your old MRP list and just make this cleaner, and that's part of the process of just getting into the daily habit, but you're able to quickly, at a glance, see when the last time MRP was run. The other thing you can see here, this is that processing indicator I was talking about. So as you're going through and you're reviewing your materials, and I'll go in and pull a couple up in a second, you can actually click that processing indicator, that means I've reviewed this, I've cleaned up that entire planning situation, not a particular exception message, but the entire planning situation to the best of my ability, and there is nothing else that I can do with this material right now. Then you click the processing status that updates and then you will not see that if you filter it out at the beginning until the next time something changes. So the next time MRP is run on that item, the processing status will reset because there's new planning information and it's going to highlight that for you. The other thing that's going to happen as a result of this planning run is you're going to get updates to all of your statistics as well as any exception messages. So just as a reminder, there are a couple of exception messages that are going to show up for you here in your MRP list that will never show up for you in your stock requirements list or your collective use. So your MD07 or MD04, and the first is the exception message group 8's, those are the ones that tell us if we've had a termination in the process of running MRP. So that's MRP saying, hey, I tried, I did not complete my job and I'm letting you know about it beacuse I am like very trustworthy. And then the other thing you're going to see is there will be some of the exception message group 4's that will not show up for you because they are informational and related to the MRP run. So let me click on my binoculars here and I'm going to go ahead and update my statistics beacuse otherwise I'm just going to see the list of exception messages and no numbers and the MRP elements and no numbers. So I definitely want to be able to get that information so I can see here, here's some examples of what will not show up. So here's your exception message group 8, abnormal end of requirements planning, and then things that are directly related to the MRP run, like newly created proposals, order proposal has been changed, order proposal has been re-exploded. So those are new things that have happened as part of the MRP run, and it's going to let you know about this here. Everything else, aside from those informational messages and the exception message group 8, will show up for you in MD07, and so you're able to monitor and resolve for any master data issues, process integration issues or misalignment of the plan and be able to go in and action that and clean it up throughout your day. But this is very important so you can come in and make these adjustments. So very quickly here, let me just pick one at random, I'm going to pick my cancel processes and that I want to look at because I want to see if I have an opportunity to free up some capacity. I'm going to say find exceptions and what I really want to do here for you is just show you where that processing indicator shows up so you can see it right here. So once I've reviewed and I've done everything I possibly can to update this material, this one is obviously in need of housekeeping, it's got stuff from 2017. Once I've gone through and I've cleaned it up, then I can click that processing indicator, that way we know that we've addressed it for the day and it's also a really great metric if you are, say, in the leadership of your supply chain organization, you want to support your folks. Being able to see how much they're getting through in any given day in order to be able to make sure that they're getting the support that they need, you're able to come in and click on these processing indicators to get an idea of how that's going for them. So great tool and then it'll lets them step away and come back as a planner or buyer and address it as you're going throughout the day. So that's a little introduction to what you will see, as you're looking through the results of your MRP run and how you can identify what is new and recent, you can look at those informational messages and then particularly focus on any of those terminations to make sure that everything is looking good and you can manage and throttle what it is that you're seeing based on the MRP date, and also that processing indicator. So in summary we have covered how MRP run results allow you to. Get into the business of the day first thing we do every morning. Second, resolve planning situations with some view on the prioritization of those messages. And lastly, set the processing indicator to keep track of the progress as you clean up and address the planning situation. Thanks Kristie. Understanding the MRP results allow users the ability to identify and resolve planning inaccuracies proactively. Resulting in better production planning, procurement and inventory management. So if you want to learn more about how to get the most over the SAP system please check our video catalog and if you can't find a video you're looking for or have a burning question please submit it below.

PP; PTM

CR02

The best way to learn is by doing and welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we will focus on how to take advantage of a special feature called intervals and shifts. When used correctly intervals and shifts can enable organizations to improve quality of the capacity evaluations and resource utilization. Eacliffe, sounds like a pretty cool feature, how about you tell us more about it? Definitely Martin. Maintaining intervals and shift is a powerful feature when used correctly it allows capacity evaluation and finance scheduling functionality to work correctly. In this demonstration I'm going to focus on these three things. Identify the need to maintain intervals and shifts. How to maintain work center availability downtime to a shift level for a specific time period. And to validate the results using capacity load transaction. Here we are on the capacity planning transaction CM01, to appreciate how intervals and shifts influences available capacity. Individual and shifts are used to provide more specific definition of a day, in other words subdivided into shifts so do we have a one shift, two shift, or three shift operation. And it can also be used to define exceptions to what's considered a normal day, such as schedule, downtime et cetera. So I will demonstrate how to maintain the intervals and shifts using the work center change transaction CR02. But recognize that this step is exactly the same for resources, which in that case you'll use transaction CRC2 or even pooled capacity which is transaction CR12. So first we are focusing on this column which is available capacity, I'm going to come here, do a refresh just to ensure I am reflecting the current definition, and you can see that for capacity category 001, machine capacity looking at it in weekly buckets, it's 40 hours a week. Okay, so for this specific work center we are going to go into CR02 which I have sitting here in a different session. So here is transaction CR02, here is the work center, I'm going to go into the capacity screen and from there I'm going to drill down into the capacity category 001 machine capacity. So drill down in here and from here we will then go into intervals and shifts. So right now the way it's currently set up is that for the entire time horizon the day starts at 8, it finishes at 5 with a 1 hour break and this is giving 8 hours of capacity. So let's say that we want to reflect some downtime, for example what I will do is come along click on add an interval, we are going to specify the start time. So right now we are going to go into February, I'm going to pick the week of the 13th and basically say that that particular week is not available for production. So start from the 13th, I'm going to go from the 13th to the 17th. Notice that 18 19 is blue in color, the point is it's a 5 day work week based on the calendar, and therefore I just need to go to the 17th and there, that's the range I'm interested in. So length of cycle we can specify 1 or 7, if you specify 1 our settings apply for the entire date range. If we use 7, it gives us the ability to maintain different profile or availability on a daily basis. In this case, I just want to focus on the entire week, so I'm going to change this 7 to a 1 and I'm going to hit enter. Okay, so we get one line item here, and basically what I'm going to do is, this number of individual capacity, I'm going to say, look there is no capacity, I'm going to change this to zero, hit enter, and we can now see the capacity is down to 0, I'm going to click save and that is completed. So let's now go back into CM01, the capacity planning transaction. Fortunate for us there's a refresh transactions, I'm going to do a refresh and we can now see that available capacity for this particular week has now come down to 0. So if something gets scheduled in this particular week, week 7, that requirement will get compared to 0, it will then go red to tell us, hey, you are done, there's no capacity available, you need to take a corrective action. So take whatever production is sitting here and either produce it earlier or produce it later, thos are your choices. So let's go back into the change transaction again, CR02 and again I'm going to go back to the capacity tab, what I'm going to do this time is maintain a shift profile. So drill down into 001, again go into capacity, into the intervals and shifts, and let's pretend because there is no production going on maybe the following week I want to run an additional shift to compensate. So again, I'm going to click, let's add an interval and that interval is going to start after the 17th, so again we are in February, let's go to the 20th the Monday and again, we are going to go the Friday, so the 20th through to the 24th. I have a shift profile which is already maintained, so I'm going to come here, I am electing to use the PP shift profile, I'm going to hit enter and you could see it brought in this information where it's a 3 day, 3 shift operation, 8 hours available for each of the shifts, and that holds true from Monday through Friday of that particular week. I'm going to come click and save, we are going to go back into CM01 and verify our results, so come back here, again we're looking at machine capacity, do a refresh and we could see that the following week the available capacity is now 120 hours. So 8 hours a day, 3 shifts per day by 5 days, which equates to the available capacity of 120 hours. So in summary we have covered how to maintain intervals and shifts which allow you to. Maintain work center availability downtime to a shift level for a specific time period. Validate the results using capacity load transaction. And to trust the availability capacity used in the capacity evaluation process. Thanks Eacliffe, much appreciated. Using this feature improves the data and therefore allows the planner to make more informed decisions and improves overall operational performance. If you want to learn more about how to use this feature and other features in SAP please check our other videos and of course if you don't find what you're looking for please submit a suggestion.

PP; PTM

CR01; CR02

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin and in this video we will focus on how to take advantage of SAP's multiple capacities capability. When used correctly maintaining multiple capacities can help organizations manage the capacity utilization of multiple resources such as equipment or personnel in a much more effective and efficient manner. Tell us how to make the most out of SAP's multiple capacities capability Eacliffe. Sure Martin. Maintaining multiple capacities is a powerful feature when used correctly, it'll allow us to look at different type of capacities for a single work center. In this demonstration I'm going to focus on two things. How to assign and maintain different capacity categories for a single work center. And how to evaluate capacity for these different capacity categories. The intent here is to discuss working with multiple capacities for a work center. Let's look at an example of what I'm referring to by looking at the capacity planning transaction CM01. So here I have this single work center. We are going to take a look at the standard overview. Just aid with visibility I will change my settings to look at things in a monthly bucket and so here we can see that for this single work center, I have this capacity category of 001 machine and I have a second capacity category ZLB which is a pool labor group. So the point is, it is possible to define different categories of capacity for a single work center. What I'm going to do now is jump into the change transactions for work center and add an additional capacity category. So I have this session queued up here is the work center we are going to modify, we are going to go to the capacities tab and here this is where the existing capacity categories are defined and the goal is to add a third capacity category. So scroll down, got these icons, click under create capacity icon, and here I'm going to create one for labor. So the existing labor capacity we have, ZLB, this is for a pool capacity which is covered in a separate, session, but the point is that the labor force here is shared among more than one work center versus 002, this is direct labor, in other words any labor that's maintained in the routing is dedicated to this particular work center. So I'm going to use 002 maintain the formula for calculating the capacitor requirements. You have to come in here, do some added maintenance, and that maintenance can be, using a calendar. If you don't do the calendar then it picks it off the plant. I am going to change this to, starting at 8:00AM so when I hit enter it comes down to eight hours per day and this is a default I'm going to work with for now. I'm going to save this. We have now defined an additional capacity category. So with that, coming back to the capacity evaluation, let's see if we could do a simple refresh, and by simply doing a refresh, this third line showed up down here. So let's scroll down and confirm that new capacity category of 002 is now included and if there were any orders that had that capacity category, which it wouldn't have at first, because the point is we first have to maintain the master data, then we have to maintain the routings and then the third step was that when we then create plan orders, production orders, it would pick up this additional capacity category and it would populate this column, the requirements. Okay, so this is how we go about defining multiple capacities for a single work center. So in summary we have covered how to. Maintain multiple capacities, which allows us to assign and maintain different capacity categories for a single work center. And how to evaluate capacity for the different capacity categories. Thanks Eacliffe. I can see how this feature will help us optimize resources and increase our overall productivity while reducing waste and downtime. If you want to learn more about this and other topics in your SAP system please feel free to check out our video catalog and if you have a specific question feel free to log it below.

DM; IBP; OTC; P2P; PTM

MD04; MM03

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we will focus on how to take advantage of SAP's make to order capability. When planning strategy make to order is used properly it enables organizations to produce goods based on formal demand, ensuring that customs receive the products based on mutually agreed to lead times. Kristie, tell us a little bit more about make to order. Let me tell you a little more about make to order. Make to order is one of our categories of planning strategies. Planning strategies are a key rule in how the system or MRP will evaluate and respond to demand and to signal manufacturing. It is a powerful feature when used correctly and in this demonstration I'm going to focus on three key things. First of all, what make to order truly means. Second where we set the rule for SAP or MRP to follow. And thirdly, how it looks in our planning. All right let's talk about one of our other strategy choices. So if we say the easiest strategy choice to understand and the one that we probably are most commonly used to seeing is make to stock, the next most common is going to be make to order. So make to stock simply means that we are going to stock in advance of that demand or be in a position where we have supply available in advance of that customer demand or stock transfer order. In make to order now we are not even starting the replenishment process until we have that customer order on hand. This is very important. A lot of times we will say we are make to order when we are not, we are actually finished or assembled to order. Make to order means we do not have any of the components, the sub-assembly or the finished good in advance of that customer demand, we are going to respond and react only to firm demand in the system. The forecast does not come into play as we are getting ready to make that product. We are working only with firm demand. We're not stocking in advance, so no safety stock, no additional inventory is planned to be on that shelf. Our go ahead for manufacturing is the actual receipt of an actual firmed order. So if we look at this in SAP, let me just go ahead and back out of here and let's go over to our stock requirements list. And we're going to go ahead and pull up a material, this guy right here, and let's take a look and see what is happening. So you can see here, this is what is often the case and we should never, ever see, is inventory that is hanging out here that is not tied to a customer order. What we should be seeing is a pair between the customer order and the production that we are planning or the production that we have confirmed to produce. And then when we actually go through and we produce that inventory, it is going to tie directly back to that customer segment and this is one of the planning strategies for make to order. This is a planning strategy 20, which is going to tie these two things specifically together. So we can ee that our demand is discreet for that particular customer order, and that is why you see the 20 pieces here are not being used because they are not coming directly from a customer order that needs to be placed, so we would have to actually move that inventory into that customer segment in order for it to get drawn. We mentioned this just because this is very typical. People will say, organizations will say that they are make to order, but they are actually stocking in advance of the demand and the problem with that is that we don't draw the inventory through as we should. We need to make sure that if we assign a make to order strategy or we say we are make to order, that our clearance to go into manufacturing or into procurement is based on that customer order, that we are flowing that inventory back into that customer stock so that it can be pulled and assigned and shipped out the door in order to meet that customer's needs, and is allocated properly all the way through. So nothing is produced or procured in advance of that customer signal. So where you'll see this happen is going to be on the MRP 3 view and your material master. So if you come in here, you'll be able to see your different strategy groups get assigned. Okay? And so this is make to order production, and you can see make to order, no assembly order. So everything is going to be related directly to that customer order that we have received and we're doing everything based on that customer order. So common strategy, we want to make sure that we are honoring the intention of it and if we say that we are make to order, we are not replenishing or starting that process until the customer order is actually in hand. We're going to talk in another video about assemble to order and some of the benefits of that. So if you're going, eh, we say we're make to order, but we're still forecasting and driving components or sub assemblies. Watch the assemble to order and that will walk you through how that process is intended to work, but make to order strictly means we are waiting for that customer demand to come in and then we're reacting responsibly to it and that is our strategy group 20. So in summary we have covered how make to order allows you to. Pull your process through according to your actual customer demand. Control replenishment based purely on the customer's commitment. And develop lead times based on the total lead time of that product from soup to nuts. Thanks Kristie. Often used for low volume, high mix, or highly custom products, using this feature can really help us be more responsive to our customer demands and ultimately increase our bottom line. Once again, so if you are looking for more information on this particular topic or other topics in your SAP system please feel free to check out our other videos and of course if you have a question please submit it.

DM; IBP; OTC; P2P; PTM

MD04; MM03

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we will focus on how to take advantage of SAP's make to stock capability. When using the planning strategy make you stock effectively, it enables organizations to produce goods ahead of the formal demand and therefore shorten sales delivery lead times. So, Kristie, the flip side is also true, when we use make to stock ineffectively we will produce goods we don't need or sell. Tell us a little bit more about how we use this feature properly. I'd love to Martin. Planning strategies represent one of the most vital governing rules for MRP. Choosing make to stock is a powerful feature when it is used correctly and in this demonstration I'm going to focus on three key things. Number one, what it really means to be make to stock. Number two, where we set the planning strategy. And number three, how MRP is going to expect us to respond to a make to stock strategy. All right, let's talk a little bit about planning strategies. Specifically, let's talk about make to stock. So these are the planning strategies that many of us are probably most familiar with. And most particularly, planning strategy number 40, by far the most common out of all the planning strategies in a make to stock environment. Now, you also may see a planning strategy 52 or 63 out there, and we're actually going to talk a little bit more about those in some upcoming videos. But this is all about being in a position to service that customer demand as needed, and your demand program may be made up of a variety of things. So it could be your customer orders, it could be independent requirements in the form of forecast, it could be stock transfers that are pulling through to another location servicing a sister plant, it could be the dependent requirements that are flowing through from a BOM, so on your semi-finished or your raw materials. So this just means that you are stocking in anticipation of that demand. You're in a position where you're able to store inventory on the shelf. And let's look at an example of that in SAP, so let me pop over here and we'll take a look at one of our items. So you can see here, this is a pump, and for this particular item we are planning on stocking in advance of the demand signal. So that's how this is set up today, this is forecasted, the forecast type is a VSF, this is our ongoing anticipated pull for the customer, and we are planning on supplying that. The other thing, you'll notice that there is safety stock, we're planning on keeping some stock on the shelf as well. And so as we're gearing up for our production runs, you're going to see that they are set up to cover that safety stock and our forecast, even though we do not actually have an order from the customer yet. Okay, so we're positioning that stock in anticipation of those customer orders to come in and pull it forward. This is one of the most simple versions of how you might see a planning situation as it relates to a make to stock item and you can see we're going to continue to plan for that across time. So we're replenishing our safety stock and then we are covering our planned independent requirements, and if I pull this into a periodic view for you so that you're able to see what it looks like in time buckets, we look at this by month. You can see here you've got your planned independent requirements, your remaining balance to sell for those periods, and then you have your receipts to continue to replenish. And because we're in a hole right now for March, you can see that's where the majority of the receipts are coming back in, in order to get us back up to a positive, available to promise quantity. So we're anticipating that demand, we are planning for it, and our trigger to manufacturing in this case is allowed to be a forecast, and based on that forecast we'll make those commitments for manufacturing or for procurement. And we are able to control the horizon with which we're doing that, so we can use things like periods of adjustments to drop that forecast, and then of course our consumption profile so that we're seeing a clear demand signal, but we are going to make to stock in anticipation of that demand. So where are these settings? On the material master, if you go into display, you're going to navigate over to your MRP 3 view, and this is where you're going to see that strategy group show up as well as the consumption profiles for that particular forecast, and if I click in here you'll see all of the different options. I can click into strategy group and it will not only tell me the kind, but it's going to give you lots and lots of different options for what you can set up. So many of us use one or two in our operations today. You are not a make to stock or make to assemble or to order organization, a lot of cases you have materials that fall into each of those buckets, and so you want to apply the appropriate planning strategy for how you want that particular material to behave. So your raw materials don't require planning strategy, just your items where you are putting in a forecast or they are available to sell to a customer or to transfer to another facility are the ones where you would set that strategy in place. So in summary, we have covered how planning strategies or make to stock specifically will allow you to. A, stock in advance of the formal demand and be positioned for when that demand occurs. B, shorten lead times for our customers. And C, protect against volatility and variability that exceeds our ability to respond within the customer's tolerance time. And your point is well noted. This is the most commonly used planning strategy and we do run into trouble where we set all of our materials to make to stock. It's a good thing to have a plan for every part and determining the correct planning strategy is a great starting point. Thanks Kristie. A very effective planning strategy and can really help differentiate you from your competitors. However, has to be clear and be carefully used with clear intent. So if you would like to learn more about how to get the most of your SAP system please check out our other videos and of course if you can find a video to answer as burning question please submit a suggestion.

MM; PP

MD04; MEQ1

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin and in this video we will focus on how to use SAP's quota arrangements for managing capacity constraints and prioritizing across sources. This is a feature in SAP often underutilized and is very important. So often we create multiple material numbers to manage multiple sources, even when the form, fit, and function of the material is the same. In a previous video we discussed fair share rules, today, we're going to level up on another important opportunity with quota arrangements. So Kristie, tell us more about quota arrangements and this capability in SAP. Well, of course. I've got to say this is one of my favorite use cases for quota arrangements. In today's demo we're going to. Get into the system and see how setting up simple capacity rules can influence the volume split across our sources. We'll also talk about how to prioritize the allocation of volume from source to source. And lastly, what the MRP results will look like once we put those rules in place. All right, let's jump right in and let's take a look at how we can use quota arrangements to help us to manage some of our supplier capacity constraints. So what we want to do here is take a look at this MD04 screen. You can see I'm in the stock requirements list right now and I have an item that is set up on a quota arrangement and I can tell that because it says quota arrangement right here, this button appears as you set your quota arrangement up, and then also down below I also have my supplier split already in place, and you can see it's going back and forth between two different suppliers, supplier 1000 and supplier 5595. And what I want to do is I want to go in and I'm actually going to constrain supplier 1000, and I'm going to limit how much volume we can send to them over a period of time. And I'm going to do this so that we can see what would happen if we had a supplier that was able to, say, only supply a certain number of units and then you wanted your secondary supplier to provide the remaining volume, rather than just using a simple fair share rule. And if you're looking for information on a simple fair share rule you'll also find that, there's another video But if you come right in here, this is taking me directly to my quota arrangement, I'm going to go into the details, and you can see I've got this 50:50 split right now, and you can see the allocated quantity based on the volume that is out and available for the suppliers to replenish, and you can see that 5595 has a little bit more right now. Next up would be supplier 1000 and that's just because we need more demand to create that next replenishment proposal and net it out. So what I'm going to do here is I'm going to go in and actually change this to maintain and we're going to go all the way over to the right hand side so that we can get some additional options for how we can set this up. And what I'm going to do is I'm going to impose a maximum release quantity in here and I'm going to say, I'm going to keep it really simple and say this supplier can do a total of 1,000 units and then I'm going to say every week, and I'll set this to weekly buckets. You can see here I can choose between week, month, or if I was dealing with a production planning situation, I could even use a PP planning calendar to help me with that. And I'm going to go ahead and say save. I could also simulate right from there, but I think it's a little easier to see this if I just run MRP, so I'm going to go ahead and do that, before I do just take a look down here at the screen. It's not going to change this one because you can see the asterisk, that means that schedule line is firm, it's already been released to the supplier, so it's not going to make an adjustment there. But where we would expect to see it as we're going further out into the July timeframe. So I'll go ahead and run MD02 and let that happen, confirm my entries, and you'll see here that there's been some updates. You can see the planned order changes, purchase requisition changes, and schedule lines that have been changed, and I'll go ahead and click the green back arrow to take me right back into the stock requirements list. And because this is live, as of the moment I enter it, I'm going to hit the refresh button. It's going to bring the new information in and what you'll see is that it's actually controlling how much can be released to the supplier and it's going to let me know any time where I might be bumping up against more volume than what I can send through. So you'll see here there is an exception message that we actually are already over because of the other schedule lines that are in place. So because of that it's letting us know we need to purchase additional volume from our alternate source, in this case 5595. And as we look further down, you'll see restrictions, so it's not going to exceed that volume. So we've got 850 in here, and then if I page down a little bit more, you'll see the requirements across time. It's going to limit how much is going out to that particular supplier and always going to keep it under the quantity that we put in in a given week. So it's throttling that based on the maximum volume that we've told that particular supplier can handle based on the periods that we've entered. And so we could do that across every two weeks, we could do it across a month, we could easily do it across a quarter, and then go in and prioritize the suppliers accordingly. So if you're looking for a quick and easy way to cap the capacity for what you would want to send to a particular vendor and you're in a multi source environment, meaning you could either be procuring from multiple external suppliers, from multiple facilities within your own network, or across a combination of internal work centers and manufacturing and external supply. This is an effective way to just do a quick rough cut on how much you're sending through to that supplier in a particular period of time. A bit of an uncommon use for quote arrangements, but that is part of what it's designed to do is to help us to be able to control and throttle the maximum award volume to a particular supplier over a particular number of periods. So in summary, we have covered how using quota arrangements to manage capacity and priority across your sources will allow you to. Honor volume constraints that have been shared. See the results of post MRP runs. And note exceptions that may occur. And often we feel like we have to do this management offline. We are here to tell you that there are tools that will help you. Let's put SAP to work on the execution so that we can focus on the strategy. Wow, thank you, Kristie. SAP does love to follow rules. This is another great example of how keeping the system informed relieves a chunk of manual work and brings our sourcing strategy to life. So folks, if you want to learn more about how to get the most out of your SAP system please check out our other videos and of course if you have a question please submit it below.

P2P; WM

ME22N; MD04; ME2N

Hello to the curious, we are here to feed your appetite for change and improvement. Martin here, ready to dive in and explore how SAP can empower your processes. Today we're going to explore a situation that none of us love, but all experience, the need to send product back to our supplying partners. There are a few ways SAP can facilitate this for us and in this video we're going to start simply and explore the return to vendor PO. It's the most basic approach, and once in place we can continue to build from here and manage more complicated scenarios. Today we are Patrick with us, who has lived this life by supporting supplying partners and helping them improve. He's very data-centric and takes a very pragmatic approach, so I'm very keen to hear his introduction today and how to manage the returns to vendor process. Patrick, you seem like you have a lot of experience in this space. Take it away. I would love to. Martin. No one loves having to do this, but sometimes we do have goods we have to return. We've all been there. The product didn't meet spec, there's an issue with the quantity , it doesn't meet minimum shelf life requirements, or maybe you have an excellent and flexible partner who will help you mitigate excess inventory. Bottom line, supply chain stuff happens and it's a matter of when not if. So we want to be prepared for that and make it as easy as possible on us and our partners. As Martin alluded to, there are a variety of ways for how we can initiate the return, and today we're tackling it as if the buyer has been notified and is issuing the return. Last but not least, I'll point out some ways that we can keep an eye on the return and encourage progress. Since I hear the best way to learn is by doing, let's get into it. So off to SAP we go. Now a return to vendor facilitated via return to vendor PO looks really just like a normal PO. We'll see that this PO looks strikingly similar to any other PO and that's both a good and not so good thing. It's good because we understand it. It's easy to use and it falls within all the normal reporting structures that we use to working in that makes it easy to work with. And by the way, I didn't mention it, but I'm in the ME23N transaction. Unfortunately, the not so good piece also lies in the similarity. Sometimes it can be confusing or easy to miss that it's a return to vendor and to make that easier, let's look at some of the telltale signs that will clue us in that this is indeed a returns PO. So first of all let's acknowledge that this PO is very old, October, 2018. Unfortunately, this is not uncommon when it comes to less common processes like returning goods to a supplier. It should get a ton of focus because it is less common and there is a reason why you're returning these goods, so that could drive to a corrective action in the process, and at the very least, represents time and money that we don't want to have tied up. So, as I said at the header level, this is a standard PO, if we scroll over to the right though on the item level down here, in this case way over, we're going to see that it's a returns PO. And how do I know that? There's a little text checkbox next to the info record here, if I hover over it, you'll see that this is for returns item. That controls the rest of the process change. Now you can totally move this column over. Right, move it over to the left so it's closer for you to see. You can expand the width so it's harder to miss, I'm going to actually expand that column right now. Here you go, so you can see returns item. Do all that stuff and save this as a default view so that next time you can see that little checkbox. But let's go highlight a couple other ways to keep our eyes on these return PO's. We can also see this in our stock requirements list, so as you know, we're going to go navigate to MD04. All right, here we got our material number, I'm going to execute that, and one of the things I want to point out might stand out, might not, but if you look at the PO that we were just on, it actually has a negative quantity, so it has a -5. This is showing us that we plan to ship 5 pieces of this material back out to the vendor. So that's not something you'd normally see, right? With a purchase order, you usually see a positive value, like 1 piece, 9 pieces, those are regular PO's bringing product in. While this is a PO for 5 pieces getting shipped out. So MRP plans to send those 5 materials out and then replenish what's needed. We also have an exception message here letting us know, right, that this activity was supposed to already happen. Message 07 tells us the finished date is in the past, so that's another way to monitor and manage these and let us know if something is falling short in the process. But that's a little reactive. What else can we do? Well, we have other options. One great option is to put our list displays to work. We can use something like ME2N or ME80FN, to keep an eye on these PO's and track them through the process. So let's start with ME2N. So here, let's set up a variant that's going to include the characteristics that we want. So in this case, you could see I have a purchasing organization populated, I have a best scope of list, selection parameter of WE101 to show us the PO's that are still open for processing, my plant, all that normal stuff. But now we need to go find that little tickbox. So this is a little tricky, but let's give it a shot. We do this by adding a field from the dynamic selection criteria. That's the multicolor sort of traffic light looking thing up here, you could see it's popped up, dynamic selection. So I'm going to click on that. Now we've got two options. Our purchasing document, header and purchasing document item. As we saw on our ME23N transaction, we want to go down to the item level, and also like before where I have to scroll away, right, in this case, I'm going to have to just scroll down until I find that returns item flag. So bear with me while I do that. Okay, so I scrolled down and now I found my returns item. I'm actually just going to double click on that and it's popped up the dynamic selection over here, right? And what we're looking for is we're looking for returns item where we have an X. So if I've got an X here, I can now go and save this as a variant, and once I save it as a variant, I'll be able to look at my return to vendor PO's pretty easily. So I'm going to click save for this one, I'm going to save it with a variant name of our RTV, let's do that and as our description, we'll call it RT PO's. Okay. And let's save this and run it. Okay, so it's saved, let's go and execute and there we are, right? You see up on the screen, we've got our return to vendor PO so if we had more than one, unfortunately we just have this old one from October, 2018, the other ones would show up here, but now we can track the status and make sure that we get these PO's fully processed in a timely manner. Welcome back from the tour on how to recognize and create visibility around your return of vendor PO's. By using some of these techniques, it helps us to stay connected to the process. Monitor progress and watch for trends. If we have recurring issues, then that's a strong indication that there's an issue and we need to look deeper into what's happening and how we can set up the supplier for success in the future or look for better performing alternatives. Thanks for spending the time with me today. That's some great stuff. Patrick. Thanks so much. We need to commit to closing the loop on these processes. Yes, the PO is a good start, but we need to make sure the goods move and the credits come in as well as preventing issues from recurring in the future if the need to return becomes excessive. Thanks again, Patrick. Well, this was a good topic guys, there's plenty more on this PO processing side that you can check out on our video catalog. Otherwise, please submit your questions below.

OTC; P2P; PTM

MD04; MM03

Hello and welcome future supply chain experts. My name is Martin and today we're going to explore how you can tap into the untapped potential of your SAP system. Ready to dig in? Let's get going. In this video, we're going to address sometimes the contentious conversation that exists. Should I centralize my master data or decentralize my master data maintenance? So to answer this question, this vital question, we're going to tag Steven. Steven's inquiring minds want to know, should master data governance, control, and maintenance be centralized or decentralized? Take it away. Contentious conversation? The only way out is through. Now let's get into it. There are a couple of key highlights we're going to discuss today. The first is that we can use our views to set our rules. Since the views indicate not only the functional area that the data is closely aligned to, but also, the organizational impact. Second, proximity matters. The closer you are to that particular element of data, the more incentive you have to care about it. Lastly, we'll talk about how to govern responsibly even in a decentralized master data environment, by focusing on standardization, static versus dynamic data, and understanding the data definitions, use and impact. Well let's go in and take a look. When we say this is an often asked and often contentious question, well, that's an understatement. Nothing gets people fired up like master data. All right, all right, that's not entirely true. But here's the deal. When this conversation comes up as a big ticket governance topic, it does get people riled up. And we really love that. It's really important, critically important actually! But in the small day to day moments, it can practically become invisible. So let's make it visible. Because it's critically important. If we don't get the right rules in the system, good luck getting value out of it. These are basic building blocks, our chance to inform the system so it can provide recommendations that resonate. In effect, spending the time on master data is what allows the system to work for us. We're in the driver's seat of the quality and ease of our processes and ultimately the result of the system's proposals in critical functions like MRP, ATP, capacity evaluation and finite scheduling, procurement, effective use of the warehouse, and where, when, and how much we invest in our inventory to achieve our strategic objectives. The system is the single source of truth, so it's only logical we spend time getting it right. You likely noticed that I've spent our time scrolling through master data views. SAP has conveniently provided structure to help us decide what needs to be maintained centrally by experts, what would desirably be maintained locally by the folks closest to the information, and thus with the most reason to care. And even then, only with education. And then last but not least, maintained in a decentralized fashion but in collaboration with other groups. All master data objects in SAP are oriented to a hierarchy within the enterprise structure and have either a static or dynamic nature to them. Let's talk through some examples. Let's take for example the basic data view in the Material Master. This contains largely static data that, when changed, affects everyone. It's at the lowest level of specificity, as is the alternate master data. These are great candidates for centralized master data scrutiny and maintenance. And following on that thought, the same is true for material master creation and extension. Then we have things like the sales views, which are a combination of static, which contain rarely and purposefully changed master data, and more dynamic, which are regularly revisited and changed with intention master data. These views are still at a pretty high level and set in place a number of rules for how we will take care of a customer. Another example would be the quality management views, which control things like standards and quality inspection requirements. Certainly, neither last nor least, we have views like Purchasing, MRP 1 through 4, WM and many others that belong to a lower level of enterprise structure and also require frequent updates and changes. These are our best candidates for individual ownership, and sometimes individual ownership in collaboration with others. Think of safety stock or planning strategy as examples of where collaboration with a larger group might be needed. So as you're thinking through your master data strategy, think about smart allocation of responsibility based on familiarity, necessity, experience, and education. You want that maintenance to happen with a person who is the very closest to that particular process. Now, even with a well running master data program that allows for decentralization, it needs to be a closed loop process with the appropriate governance in place. Is our master data trustworthy? Is it driving quality decisions? Are we accountable and responsible for the quality, and happy to make adjustments where needed? All of these pieces come together to create a model that is set for success and drives the outcome we're all looking for. Well, thanks for joining me on the tour. A few reminders and highlights from our discussion. First, no matter your environment, there's always necessary oversight, and that oversight often manifests in education and collaboration. There are definite prerequisites to moving to a decentralized environment, but the payoff often shows up in drastically improved data quality, planning improvements and quality supply chain outcomes. Most importantly, granting some degree of autonomy for fields directly related to a functional area of responsibility, especially for the fields that require regular updates, allows people like customer service, planners, buyers, and warehouse personnel to be in the driver's seat of quality, refinement, and direct responsibility for results. Thank you, Steven. I love the reminders. The reminders are proximity, functionality, and areas of responsibility, accountability, and oversight. Wow, that's a lot. Okay folks, if you want to know more about this video and other videos, please check out our catalog, and if you have any specific questions for Steven or for the rest of our team, please submit it below.

OTC; DM

MD04; VA03; CO09

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we are going to focus on a feature in the sales order management toolkit called fixed quantity date flag. Now I've heard two competing schools of thought on whether we use this and how to use this particular field. Some organizations use it a lot and others avoid it completely. I think we need to demystify what this flag actually does. So Kristie, can you please clarify the purpose of this particular field for us? Oh, yes, I can Martin. This is one of those fields that causes a lot of confusion and like many other features in SAP, it does so because a lot of times we're looking for a single business rule setting that we can apply to everything, all the time. This is a situational field. It's a decision point and a tool in the toolkit that is situationally oriented. Let's go into SAP and demonstrate, and then I'll recap the thought process of where this can be useful and where it should be avoided. In this demo, I will walk through three key points. First, where to find the fixed date and quantity field. Second, the impact on the transfer of requirements to MRP and how this presents in the stock requirements list. And lastly, what happens when we try to run ATP or rescheduling with the fixed date and quantity field turned on? Alright, let's go look at this contentious topic actually in the system. And this is the fixed date and quantity flag. And I'm going to go ahead and go right into the sales order here. Let's just go find it. First of all. Let's know where it is and we're going to keep working on the same availability situation that we have been working on for the last couple videos. So you may have seen this guy already. This is our P-110. It's one of our phone cases, and let's just go in and let's run the availability check. Let's see what happens here. Okay. So, what we have been doing with this guy is we've been working on this partial delivery situation, so we've been working with 11 pieces on the 15th and 3 pieces on the 22nd. What I'm going to do here is I'm going to go ahead and select this by clicking on it, and I'm actually going to just go back in here. I want to take another look. You want to take a look at the item availability, and what I'm going to do is I'm actually going to come in here and choose this guy right here. This is a fixed date and quantity checkbox. It is a little teeny tiny checkbox with a great deal of power. So right now, if we look at our MD04 screen, our stock requirement screen, you're going to see that these 14 pieces are actually showing up for that earliest date. And what we're going to do is we're going to choose the fixed date and quantity flag, and that's going to take it and say, okay, we're making this promise for 11 pieces on the 15th and 3 pieces on the 22nd. We are not repromising this. We are going to stick to those dates. We're not going to work to improve them. This customer requires stability and wants to believe with integrity in the promise that we're making above any and all things, and we're not going to try to improve these dates. They have to stay the same. Now, this does not preclude something bad from happening on the supply side of the house. The machine breaks down, mold approval gets delayed, material is suddenly short, you get bad quality. Any and all of the complications that can happen on the supply side could still happen. That's the reality of the supply chain. So once we tick this box, it means that the system is no longer going to try to improve these dates or prioritize getting inventory to this order over other orders. It's going to try to just stick with the dates that we've put in here. So we have to monitor and make sure we're basically taking the wheel. We're saying, okay, no more ATP management system, we're going to handle this from now on, and we'll monitor and make sure that it's okay. The other thing, is that if this confirmed quantity was less than 14 pieces or it was nothing at all, as soon as we hit that fixed date quantity flag, the system's no longer trying to get inventory onto the order or improve the dates. So it is not going to keep trying to find additional inventory for us. So if it says 0, then it's stuck and it's not going to pick up any additional inventory. So we have to be really careful with great power, great responsibility here. This can be a great thing. It creates stability for the supply chain. You're not expediting unnecessarily. If you're not trying to improve the dates to those customers. Let's say you're delivering to a production line or a job site. Once you have those dates locked in, that's what they're counting on. They're shaping their activities based on what it is that you've confirmed back to them, then this can be very, very effective. Now let me show you what happens when we tick this and then we go into the stock requirements list. I'm going to go ahead and save I, all right, go in here , alright, and I'm going to go ahead and hit refresh. Now watch this guy, 14710, says 12/4 right now, and you'll see it disappeared and you'll see it's down here. So there's our 11 pieces on the 15th, and if I scroll a little bit further down, you're going to see the remaining balance on the 22nd, 3 pieces on the 22nd. Okay, so that is different now. The supply chain is no longer trying to expedite to get that inventory in sooner. It's not going to work to try to bring the materials that fall into producing this in sooner. It's going to allow everything to reschedule to those dates that we have chosen for the customer. And if I come over here, the other thing to know is when we go to run something like rescheduling or back order processing, now that order is no longer eligible for processing. See, this guy here, there's an X. That means that we are no longer allowed to do anything with this, we would have to go in and literally untick the tick box before we're able to move this around in terms of priority. The dates are just going to stick and stay the same. That's what we're marching to. So this is make a promise, keep that promise no longer overdriving the supply chain to improve those dates. So really important to know what this does. It can be very, very useful. But again, please make sure that your quantity confirmation is in place before you tick that. If you tick it when you have nothing confirmed against that particular line item, you will not improve the quality of that promise and you're not going to add additional inventory onto that order until you go in and you actually untick it because it is fixed date and quantity. So the quantity and the date will stick. Really powerful, really great tool, but very important. Now if you're curious about the screen, we'll have some additional videos that walk through backorder processing and rescheduling in the future. So as we've just witnessed, turning on this flag means that we have made a promise and we intend to keep that promise and we will be running the supply chain to that committed date rather than the customer's original requested date. We are making a promise and we commit to keeping this promise when we do this we're also taking this out of the ATP run, so the quantity and dates hold. And we need to be careful when we do this because when we turn it on and there's no committed quantity available, there is no automated rescheduling to bring that inventory onto the order. This is a very powerful tool and we want to make sure that we fully explore the roles before we try to apply it. Thank you, Kristie. It's very important that we think about what our goals are and then choose the right technique in the right situation. It's also clear that we need to be very aware that when we are using this flag, we are making a promise and striving to keep that promise. SAP will not reschedule that order, so it's very important that the promise made is a good one. If you want to learn more about this particular topic or any other topic, please feel free to actually look at our video content below.

PP; PTM

MCP5

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, I'm Martin and in this video we will focus on how to take advantage of SAP's material analysis capability. When we understand how to interpret some of these reports, we're able to have a clearer understanding of how well we are performing from a production perspective. In essence, manufacturing material performance reporting. Eacliffe that's a mouthful. How about you tell us more about it? For sure Martin. Material analysis is a powerful feature when used correctly to focus on improvements from a material perspective. In this demonstration I am going to focus on two things. One, provide an understanding of how material analysis report works. And two, identify which materials to focus on and apply critical thinking so we can understand and mitigate availability challenges. The intent here is to use transaction MCP5 to perform material analysis for produced materials. So here we are, going to the menu, it's logistics, production, shop floor control, shop floor information system, standard analysis, and here we have MCP5 material. So let's double click on that. I'm going to just expand this horizon going back so I can get some good data, going to hit execute, and I already have my key figures laid out to provide information in terms of plan versus actuals and then provide some other information from a material analysis perspective. So if I come here right now by default the information is brought in at the plant level, I can do a switch drill down, I can take a look at, let's see, MRP controller. So I have these different MRP controllers that's contributing to this overall content of this report. So the goal is to basically use this report to see how reliable our plan is against actuals or even our target against actuals. On the main screen I had just the plan versus actuals, here we can see the target which is really coming from the production order. Actually the emphasis is that is more likely on target versus actual versus plan, but it's still good to see it from a plant perspective because at the end of the day, ideally we want to see positive numbers saying, look, every time we schedule this material, we are getting it at least prior to when MRP said we needed it, versus if it's coming afterwards, it means we are not providing that inventory in a timely manner. Okay, so let's close this and we can see for the data that I retrieved we had 13 production orders. Let's do another switch drill down we're going to go to a material and here we can see that for each material how many production orders we have, what kind of timing are we dealing with in terms of, are we getting any inventory or any item late? These are what we would target first, so maybe if there was negative I would sort it in ascending order and when it's an ascending order it would then tell me there's a couple of materials here, or probably even this column more so, let's come to plan versus the start. So I'm going to sort this column here, so let's cancel the sorts, let's just sort under one column. Again, if we are not providing the produce item in a timely manner, those are the items we would zero in first. Why is it not being provided in a timely manner? Because it means that there's some kind of disruption that's going to happen. Is it a handoff of a semi-finished or finished goods for example, hence the finished product is not being impacted negatively? Or is it just the finished good not being done in time to hand off to either the warehouse for make the stock or to the customer if it's like an assemble to order or made to order situation we are dealing with. So that's the type of insight that we can gain from using a material analysis where we do have multiple, so we can take this one, we know two orders, was it both in the same year or not? We can do it two ways. We can either do a drill by and drill down by the month, for example, and in this case the two of them was run in the same month. The alternatives could have been if I came back here and I take that same item, I can then do a time series. Let's pick the key figure and then show the time series and then we can see, oh, okay so from this perspective it says, one was in April, one was in May. So broard approach is taking two different days to work with obviously, because one we said everything was in May, and the other one said, nope, it's actually split between, April and May. But the point is you can still see how things are trending and so forth from month to month, either way. This is the material analysis, again this is for produced materials and the goal and the point is that you can use this to ideally, there's all talk variances of zeros. So in summary, we have covered. Material analysis which allows you to provide an understanding of the material analysis report. And two, to identify which materials to focus on and apply critical thinking to try and understand how to mitigate availability challenges. Yeah. Thanks, Eacliffe, for sure, I can see using these reports and analytics can really help provide the users and managers with the information needed to make more informed decisions, identify the challenges, and improve operational outputs. So if you'd like to learn more about this and other topics in your SAP system, please feel free to check out our catalog and of course, if you have a specific question, please submit your suggestion.

WM

LS24; LS26; LX02; LX03

Welcome to the video service that unlocks and reveals the hidden value in your system. Hi, my name is Martin and in this video we're going to focus on how to quickly identify material locations in the warehouse. So, Steven, we know the best way to learn is by doing, show us how we can find these needles in a haystack. Certainly Martin. The biggest thing you want to move away from is tribal knowledge of warehouse workers "knowing" where they place materials in the warehouse versus utilizing SAP. Materials move often and are touched by many people. So it's critical to always utilize SAP. To identify where materials are located. In this video I'll demonstrate a few ways to quickly find material locations. In this video I'll quickly walk you through how do you locate a material in WM. We'll go through a couple transactions beginning with LS24. LS24, it's going to be your fastest way to find where a material is located in each storage band. So you'll need to enter your warehouse number, your material number, and then the plant which corresponds to that warehouse number. So once you have all three of these, just select enter. It then brings up your material, the description, and then all the bins in which that material is located. So you have storage type information here, below that you have which storage location each of these are tied into. So really you have all of your information of where this material is located. You then have the quantity that's available to these bins or that's consuming these bins here. So you could see that, you have all this quantity within these bins, and then you have a minus 73 here because this is in a production bin waiting to be consumed for production order. This is the default view, which is great, but if you want more information you can go ahead and click this little three staircase. What's shown on here is all this information on the left, but if you want any other information that speaks to you that you want, you can just simply start clicking, hit a single arrow, and then click copy or that check mark, it'll bring it over. So if any of this other information is relevant to your situation and you like it, you could go ahead and just save this as a personal variant to you so that way you don't have to go and click that staircase like we just did every single time. So LS24 is going to be your fastest way, it's a great transaction to quickly find where your material is located in each storage bin. Now the second one I'll just quickly I'll show you through because a lot of the WM users that say, well what is the difference between LS24 and LS26? LS26 is really for storage location and not WM. So I'll just quickly, I won't spend too much time here, but the same information is shown, you get your warehouse number, your material, and your plant, and just click enter. But you see it just kind of summarizes high level of where your inventory is located per storage type. So it's putting in subtotals now. I'm going to take that off so we can get a better picture and you can see here, here's my actual material number, my total pieces are here, and then it just provides which storage type and quantity that it's in. So it really doesn't give you that specific granular detail that WM does. So that's the difference between LS24 and LS26. In WM, we want LS24 and not 26. The final transaction is going to be LX02. LX02 is going to be all of your materials within your warehouse, so from a bin level. So I'm going to enter my warehouse number here, I'm going to click execute and it has your material, the description, your plant, all this information, but then finally your storage bin. So you could see there's a lot of materials here because this is every material within that warehouse, 361 in this case. But if I wanted to specify a specific material, just like LS24, you could just simply click the material header and you could filter and then you could just enter your material number there and then, same information, it brings your material number, the description, the bin, and all that available stock. With LX02 you probably get even more flexibility of the information that you could pull in. So using the same method you can bring in all this other information to be shown. So in this case, let's just do the double arrow, copy, and you could see all the different fields that it brought in. So again, same thing, you could save this as a variant so that way you don't have to enter it every single time. Two very, very powerful tools to use in different ways, LS24 and LX02. So, in summary we have covered. How to quickly identify where materials are located in SAP. Which allows anyone to be able to locate these materials and not just the person who put them away. Hey, once again thank you Steven. Excellent points on how we need to always be in SAP to find materials versus relying on tribal knowledge. Hey folks speaking of tribal knowledge, if you want to learn more about how to use SAP's system and actually get the most out of it please check out our other videos and of course if you have any suggestions for us please submit it below.

WM

LS41; LX40; LX41; LX42; LX43

Hey folks, we know the best way to learn is by doing so let's get into this video. My name is Martin, and specifically what we're going to talk about today is focusing on material staging for production. Spending a good portion of a career in a production environment, I can tell you firsthand how important it is to have the right materials in the right place at the right time. Steve, I know there is integration and handoff from the warehouse to the production floor, but it's often not known. Can you please tell us more about that? I would love to, Martin. Some organizations use WM solely for this integration alone. There are many options suited to specific business needs that WM offers in how and when materials are picked and or staged, when they should arrive at the production supply area, which we will cover in other videos. In addition to the other options, there are many standard reports to assist and identify potential staging disruptions, which are game changing if used correctly. So let's get into SAP where I'll demonstrate. The staging parameters. And a few reports that may greatly improve your warehouse production service levels. With staging materials for production, everything really starts in the control cycle. Control cycle, best transaction for that is going to be LS41. So we'll go into LS41, and what you'll do is you'll just populate your plant here to start with, we'll go ahead and run that just wide open by plant, execute. It lists all of your production supply areas, the materials that are assigned there, the plant, your warehouse number, storage type, all the good stuff. Whether or not it's a dynamic bin, and then really these are going to be your staging indicators, the things that trigger the way that materials are stored and brought over to your production supply area based on the production order release. So that's really where all this data lives here. So we'll start here with this LS41, you have your number of options of how you're staging again. Other good reports really from here, you could look at LX40. Transaction LX40, it's going to do a stock check against a specific production storage bin. If you know this data, if you know where you have materials in or a batch etc, if there's anything against it, it will bring back some data right here, there's no material number transferred. So it brought back blank. LX41 is another transaction here really to evaluate. So again, we'll run this wide open. What this transaction checks is what your status is and it shows in a traffic light symbol there of your production supply bin and if there's allocation or available stock against it. So in this case, it's all red. There's a production order open for there that's why the stock is negative because there's a degradation against these production supply areas there but really it's just a good way to show what's against that production supply area and what's open what picks are going to be there? So right now again, you have your negatives there all within this production supply area and all these materials there. So moving along, we're going to go to the next transaction right in order LX42. LX42 is really going to evaluate and if you run this wide open, it populates at a thousand, so let's narrow this down because that could take some time, we'll just go to 10. Really, this just shows kind of your statuses of orders. If you have a specific order, it's probably best to enter it there, but we're just going to narrow this down to 10 to have this thing run quickly and it just shows the overall status of is that production order closed, traffic symbol there again. So all of these have been released, they're okay, everything is good to go. The final transaction that we'll go through is going to be LX43, and LX43 just really does an ATP check against your plant and how your PSAs and the rules of how you're staging work, so we can run that wide open. There is my control cycles, everything is green, which means the configuration behind everything, all the control cycles is good to go. So that's really it on some of the transactions that you could use, but really you're going to live a lot in that LS41 where it identifies the materials and everything under those control cycles, and that's going to be your good starting point. Welcome back. In this demo. We've covered material staging data. And reports that can drastically improve your service levels. I hope you enjoyed this video and please tune into additional material staging videos that we have. Steve, that's excellent information, thank you so much. Especially when it comes to staging and those parameters and the reports, I know we are just scratching the surface with this particular topic. If you want to learn more about this topic and all the production related topics that we've been preaching about and talking about in the other videos, please feel free to reach out, otherwise please submit a recommendation down below.

OTC; PTM

MD04; VB11

Hey, everybody, Martin here. Does your organization struggle with product transitions, promotions, or managing substitutions? If so, you're not alone. These type of situations are often managed offline or in Excel. It's time that that changes. We don't want the stranded material, send a substitute material to a customer who won't accept it or forget to change a temporary substitution back to the material we want to be replenished. Today we have our great efficiency builder Ed. He's going to introduce us to a key but woefully underutilized feature in SAP called material determination that facilitates scenarios like material supersession. Ed, take it away. Thanks Martin. I'm a big fan of the simplicity and efficiency of material determination to support things like promos, material substitutions, or suppressions Material determination allows us to set up a series of materials in a chain. The system can then move from one material to the next to look for the next eligible material. We have the ability to control eligibility for substitution with both validity periods and key combinations. This could be as simple as material entered, or we can be a bit more specific and choose something like customer and material. This allows us to control when a substitution is allowed and which customers the new rule applies to. Let's get into SAP and take a look. Let's begin in the stock requirements list. Let's say we've just received news that the release date for the next evolution of this product is ready for release as of today, which is great news because we have more customer orders than we have inventory and nothing left to come in. To make this fun, let's imagine that this is wine and we are moving from one vintage to the next. This is not a super premium wine where the vintage demands different market value. But we do want to track the change, use up our old inventory, and then move into the latest release once the old one is exhausted. This is a material super session. Super session simply means that we are replacing old with new, and the technique in SAP that we use to do this is called material determination. Here you can see the new part number, and this is the one we want to plan replenishment for going forward. Note that there are currently no customer orders sitting over here. Let's see if we can get SAP to help us reroute the customer orders over to this new release. We want everyone to have wine when they need it. Here we are in transaction VB11 where we create or set up our material determination chain note the key combinations button at the top. This is where we can select options like material entered or customer and material entered. We can can configure whatever key combinations might make sense for our business. Let's keep it simple today, and we'll go with material entered. Up next, we need to set our validity date. This is a great feature because it allows us to do a temporary rerouting of orders. For example, maybe you have a promotion coming up and you want to sell the special holiday edition for a fixed period of time, and then go back to the original material. And while today we're working with an immediate change, you could proactively set your release dates in place well in advance. Below the validity period, we have the opportunity to set a reason code for the material substitution. This helps us to track the reasons why we're shifting orders over time and in the main body here, we set our material entered and the material we want to progress orders to. As you can see, we can enter many materials at one time. So if you have a longer list of transitions, you could work a whole list at the same time. Once we have this entered, then we need to choose which material we should be running MRP against. In the case of a temporary substitution, you may want to continue to replenish the original material entered. For our scenario, we're going to choose the material number that represents our latest and of course, finest vintage. I'll save this, and then we'll go back over to MD04 for the original material entered. Now we'll run MRP. It'll ask us if we're sure, yep, we are. See here, there are some new results. Now let's go back to the stock requirements list. We will hit refresh and we can now see our list got a little shorter. And if we look at the new part, here we go. We can see that our orders have shifted over. Excellent. All new orders will shift to this new part number and this will be what we plan to replenish going forward. A couple of notes before we go back to the studio. First, EDI can be a bit tricky, so be sure to communicate and keep an eye out for any EDI issues Second. This was a very simple example of a very robust functionality in SAP. If you need to build out a longer chain or you're struggling with a key combination, don't hesitate to reach out to us. I was chatting with one of my fellow Revealians and she told me that when she was planning this was one of her favorite tools in SAP. Not only is it easy to use, but helped her make sure she was in compliance and also that she used the inventory to the best advantage of the company. It had measurable impacts on their inventory investment, for sure. Let's summarize today's chat. First material determination is much easier to maintain than manual entries. Put SAP to work for you. Second, we were able to set up the rules in ways that honor customer requirements. And finally, we get to choose which material should hold the requirements and be relevant for replenishment proposals from MRP. Very powerful, highly valuable. Thank you Ed. Most organizations have a use case that fits material determination perfectly, so thanks for that. It has the capacity for complexity, but can also be kept simple. There's so much opportunity here. Hey folks, we have a whole catalog of videos, and if you're looking for something really specific, just use our AI chatbot and ask your question.

WM

LX03

Hi, Martin here, and welcome to the video service that unlocks and reveals the hidden value in your system. In this video, we're going to focus on materials not turning in the warehouse. So, Steven, we know the best way to learn is by doing. Tell us how we're going to find these dusty old materials without actually walking the warehouse floor. Sure, Martin. Being able to systematically locate materials not turning in your warehouse is a game changer. Storage bin real estate is critical in a warehouse, and it is important to identify materials that are not turning or selling to have cross functional conversations as to why. In this demonstration, we will focus on using time in location feature to quickly identify these materials. If you're walking through your warehouse and you spot a material with dust on it, you should absolutely question why. There could be some strategic reasons why a material isn't turning such as you need that part or there's been a decision made to keep that for services down the road but in most cases there is most likely something wrong, either no material master or put away strategy, so it's all manual, it could just be incorrect rules or even outdated rules. Although the warehouse associates and team may not be directly responsible for material turns the buying and selling, it's critical because space is critical in the warehouse and every square inch, every volume, every bin adds up and counts, so you really want to manage your materials very well and you want good, healthy materials that are turning. You want those high velocity materials in there. So how do we find those materials or that data that we could potentially identify and partner with maybe the buyers planners who are responsible for bringing in and fulfilling our warehouse. So quickest way rather than going and just doing some spot checks around the warehouse by walking, just go into LX03. LX03 is going to be your overall bins in your warehouse. You could run it wide open with all the storage types in there, you can do only bins with stock. So if you ran this wide open, it's going to show you all the bins within that warehouse, whether there's materials in there or if they're empty. So in this case, let's just execute it and this is the default that's shown here. You just have your plant, your storage location, your storage type, so on and so forth. There is so much information in LX03. So I clicked on this staircase, which again shows you, I'll move this over here, all the information that's shown. But then on the right is everything that you can bring over in this view and the power of LX03 is you can save variants for specific things. So we want to just find those materials that are expiring. But the fifth one down is duration. So we want to highlight that and do a single click over, and there you go. So you could see, all right, these ones are empty. But then you have TiL and TiL simply time in location. So these are some pretty old materials. What I would do is go ahead and sort these descending so it brings the oldest to the top and you could just quickly see the quantity where they are what the material is and the time in location. So now you have a set of data where you can go and identify who's responsible for the material, such as the MRP controller, and say hey, this material has been sitting in the storage bin for X amount is that, did we know that, is there something that we could do about it, because I really need this bin for something else for something high turning. So there's just a quick way to find some materials that are not turning in your storage bins and in your warehouse. So in summary we have covered how to quickly identify materials not turning in your warehouse to provide data for strategic conversations. Thanks, Steven. That's great stuff and some powerful information to arm our warehouse folks to have strategic conversations. Speaking of strategic conversations, guys, if you want to see more about how to get the most out of your system, please check out our other videos and of course if you have a burning question, please submit it below.

PTM; P2P

MD04

[00:00:00] Welcome back, folks. Martin here. And today's the day we're taking a closer look at one of SAP's features that is so underutilized that it must be hidden. Well, we're here to walk you through value that's been hidden in plain sight. We're always looking for tools that highlight integration, good conversation and enable further data backed decision making. So many times the answer to a question that could be a great conversation is a side note, and I'll look into that. We believe that getting more of these conversations happening in the moment and in the room promotes integrated thinking and is more effective in problem solving. Monique, you are probably the queen of the brief, the promoter of the aha moment, and a huge believer in the importance of context. What is this tool? Tell us more about it. What are some of the things you can inspire us regarding this particular tool? Way to tee it up, Martin. [00:01:00] That was like a legit Paul Bettany in a Knight's Tale moment. And I love a good moment. So, okay, I'm going to rise to the occasion. So the question is, can we do it? This sometimes can give us a good idea of whether we are in a position to say yes or no, and why. It can help us to understand the impacts of changes and the ripple effect of our decisions. What it doesn't necessarily have is the insight for what cards we might be holding that will open up the door to the yes. Being able to use a tool like this to drive conversations. Gets us engaged in the room and thinking about solutions as a team and over time, this lets us recognize patterns and get to the outcomes more efficiently. So let's get into SAP and have a quick briefing on the anatomy of the order report and the good stuff we can get from it. So here we are again, friends, picking up from our home base, the stock requirements list. Imagine for a moment that we needed to reschedule an order to meet a pressing customer [00:02:00] need. If that's not currently our plan, there are a series of checks that we need to go through to evaluate the availability of capacity, labor, and materials. The job of a planner or scheduler is not an easy one. It's our job to balance service levels with inventory performance and efficiency. That can be a delicate puzzle that requires sometimes difficult conversations. But by the time the shop floor has a scheduled order that will be released and executed, we want to make sure all of our ducks are in a row. So how do we get started? We have a bunch of options. The order report is special because it's a quick validation in the room that can open up the conversation to problem solve and find solutions. Now, while we're talking, I'm doing a few things. First, I found an order that needs to be expedited. I've selected that order by clicking on it, and then I've clicked on the icon for the order report. This [00:03:00] has opened up a new section on my screen here, and I have options for how I might want to see this information. I like it at the top of the screen so I have more real estate to display the columns. And still have a good portion of the stock requirements list visible below to interact with. I can also control how much real estate on the screen this information is allowed to take up by setting a percentage in my user settings. Now this information is interactive. I can navigate to any of the materials we see here by double clicking. And their planning situation is going to display for me in the stock requirements list below. It's easy to jump between materials and take actions interactively. Refresh and see the impact in the order report. Now I want to highlight a couple of important features for you here. Consider them to be a few of my favorite things. First of all, we can see each of the levels of the BOM and what's needed to produce each. Then we can see the requirements date [00:04:00] compared with the current plan availability date. We'll also see the associated exception message and the date it needs to be rescheduled to in order to support this run. We can also see, and this is my favorite part, what kind of MRP element we are counting on here. Do we have an order in motion we can expedite, or is it just a planned MRP element like a planned order or purchase requisition? Do we have stock and may need to redeploy? This helps us to ask questions and seek out opportunities. Two other points to be made before we head back into the studio. First, this does not replace the full production plan and cycle of material availability checking, capacity evaluation, and finite scheduling, or calling a supplier to see what can be done, or working with the customer experience team to discuss priorities. But it helps to get the conversation started in the room and actions agreed upon. [00:05:00] This speeds up the conversation. Second, another great use for this tool is if you are working on your use of the exception messages in SAP, is to see the impact of realigning activities through the BOM. It can really help the team see how we can resolve several exception messages all at once. Now let's get back to the studio and wrap this baby up. I hope I was able to deliver some helpful context and a few aha moments in this walkthrough. I believe that was my end of the bargain after that great introduction today from Martin. So a couple of quick things before you go. This tool is a great jumping off point to explore not only can we do something, but should we? Many times when we're entering this conversation, it's because something hasn't gone to plan and we're looking to see if we can meet a need. Having the conversation cross functionally in the room promotes integrated thinking that can lead to a good decision on next action. Which may involve redeploying of [00:06:00] capacity, labor, or materials to meet an urgent need. And this helps to build a context for that question. Ah, all right, Monique. That was pretty good. And if this conversation sparked your interest, especially the points about evaluating options and impacts, you may want to check out another video that's coming soon about the companion of the audit report, and it's called the pegging report. Integrated system, integrated supply chains, that's what we're striving for. We need some collaboration to support that integration for sure. So once again, Monique, thanks a lot. So folks, if you want to learn more about this topic and the pegging report to come, you will see this in our video catalog. And of course, if you have some specific questions on these topics, feel free to submit it below.

PP; PTM

CM21; CM25

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we are going to focus on how to take advantage of SAP's midpoint scheduling capability. Midpoint scheduling can be great help to simplify the production planning process and help focus on the bottlenecks. Eacliffe, how about you tell us a bit more about midpoint scheduling? Sure Martin. Midpoint scheduling is a powerful feature when used correctly and in this demonstration I'm going to focus on three things. Explain the concept of midpoint scheduling. Show what settings are required to get midpoint scheduling to work. And demonstrate how midpoint scheduling process works. The intent here is to look at midpoint scheduling functionality that exists on the production planning, graphical planning board transaction, CM25. Midpoint scheduling is an approach a production planner can take to create a realistic production schedule when dealing with multiple operations. Basically involves focusing on a strategic or bottleneck equipment that's involved in the manufacturing run, which drives the scheduling of other work centers involved in making that item. So let's take a look at transaction CA02 to show what the routing would typically look like before we actually get into this functionality. So right now this is transaction CA02. We're going to go to an operation overview and what we can see here is that we have multiple operations involved in making this product and these are the different work centers which are involved in making that inventory. The goal is that when we schedule one of these work centers here, the other, in this case, the other three work centers will align from a scheduling perspective. Okay, let's go into transaction MD11 and create a plan order for this material. Okay, so this is our material it's in MRP area, 1000. Okay. let's do for quantity of 10,000 units and I'm going to pick a date of, let's see, do the drop down and we want it to finish, so right now it's February 13, let's move it to March 4. I'm going to hit enter to populate these dates. Notice there's only three tabs here. Basically that header tab, the assignment master data. I'm going to click the scheduling icon, I have a warning, get through that, click on scheduling a new tab detail scheduling got created and here we can see the different work centers involved and the start an end date for each one of these work centers to produce this item. Okay and it's these work centers that we are going to bring up on the planning board. So with that said I'm going to click and save and we now have this planned order, now let's go into transaction code CM25 which is the graphical planning board slash m CM25, I'm just going to pick a generic keyboard. See there are multiple options in terms of which profile we end up working with. I'm going to pick this one here, the two graph, green check. Okay, I do have a variant already defined, say get variant. I called mine V1. Okay, and by doing that it has now populated the different work centers of interest. So we can see this here and from here we are going to, we're interested in this case the focus is on machine capacity because we're scheduling the equipment, which are machines, in this case, and execute. So here we can see that we have multiple entries sitting available for scheduling. Anything that sits in this section in the pool section of the graphical planning board is what's available for scheduling. Anything which was scheduled already would be residing in this section up here. So, with that said, let me just adjust this a little bit, okay, so before we can do midpoint scheduling, what we are going to do is we are going to take a look at our settings. So we're going to go into our strategies and there's one setting which is specific to midpoint scheduling, it resides in this section, the dispatching control, so I'm going to scroll down and let's do this again. So we can see under dispatching control, we have this midpoint scheduling and that indicator is turned on. So with that said, the way this works is that any orders which are, or operations which are associated with these work centers, would be displayed here and in this case you could see we have two different orders, one ending in 533, and the other one ending in 534. So the question is, which one is crucial to how the line is scheduled? Instead of looking at Operation 10, let's assume that operation 30, the MB Work Center, is the one that has some challenges for us. So what we want to do is take that work center and we are going to schedule it. So let me dispatch it and you could see it is now sitting here. So here's another work center, another order for that same work center, I noticed it's overlap. So the point is that we have finite scheduling, in other words we could only run one at a time. If I took this one now and say dispatch it you could see it came to the end here. So because this moved out into the future, the point is it cannot run at the same time as this one. If I come to Operation 10, suddenly you could see Operation 10 is no longer aligned with 534, it's no longer in the same timing as 533. So, the point is that we have things sequenced in terms of who could run first, who could run second, and so forth. We can see that there's still a bit of overlap from a 10 perspective so based on the rule of the master data, we know that this has to move out a bit. So if I took this and I moved it out a bit, you could see this one now moved out. You could also see that these guys are now starting to move out. So there's a gap between, for operation 20, there's a bit of a gap, and for Operation 40 there's a bit of a gap, and you can see now looking at all of them there is no overlap. So from a scheduling perspective, the midpoint scheduling says, look when I moved something, for example if I took the previous order and I moved it, let's say moved it a little earlier, the other operations tag along automatically. Okay, so that's the whole point about midpoint scheduling is you pick that critical work center, you schedule that work center and once it is scheduled, so I can take this guy, hold the shift key down, take the other one and dispatch them both. Okay and now you can see they are up here scheduled together where we have the first one, the second one, this remain intact, and the point is because these operations are no longer overlapping, the schedule is now considered realistic. So that's the feature of midpoint scheduling on the graphical planning board so that we can reflect a realistic production schedule. So in summary we have covered midpoint scheduling which allows you. Perform scheduling using the graphical planning board. And how to maintain the settings to perform midpoint scheduling. Yeah, thanks Eacliffe. Much appreciate it. Using this feature can really help planners and schedulers optimize their order scheduling, and in doing so, of course, improve productivity. So if you'd like to learn more about how to get the most of the SAP system please check out our other videos and if you can't find a video to an answer to a burning question you may have, please submit a suggestion.

DM; IBP; P2P; PTM

MC.9; MD04

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we are going to provide an overview of the value of moving our organization from a push to a pull company. Now, what that really means is from a material point of view, are we pulling our materials through the supply chain or are we pushing them through the supply chain? I'm going to let Kristie explain that in a little more detail. Thanks, Martin. Moving from push to pull is a powerful strategy when used correctly. And in this demonstration, I'm going to focus on three key things. First of all, what are some of the reasons and techniques for why and how we would move from push to pull with an emphasis on decoupling techniques. Also, how would we analyze materials behavior to determine the truth of whether we are pushing or pulling? And lastly, what does that transition from push to pull look like? Stabilization, inventory optimization and responding to the signal. Moving from push to pull is such an important conversation. So, whether you are starting to receive information from your customer, so they're getting more integrated into the process, so you're getting a clear pull signal from them that's more reliable, you're starting to integrate that into your demand planning process through CPFR, or maybe even receiving scheduling agreements from that customer with firm free and tradeoff zones, or whether you're thinking about decoupling strategies. So how you're able to service many customers by going to an assembled to order model and just being in a good place to be able to supply depending on what it is that they're asking for in their final variation or you're thinking about decoupling because your signal at the end item is just not good and so you want to be able to position for pull and you're starting to pull through your supply network or your up and running on S/4, maybe you're exploring a DDMRP strategy, which is kind of the ultimate in pull. As you're thinking through these things and locating where your inventory in the appropriate places throughout the supply network, it's really good to be able to evaluate how you can shift from push to pull. But one of the things that's fundamental to doing that and one of the starting places is to just be able to go in and analyze the behavior of your materials. So I picked a material kind of at random here, and this is MC.9, and I'm just going to look and see what's been going on with this over the last year. So I've got a material and a plant in here, and I've got a period of evaluation that I'm going to look at, I'm going to look at it for the last year. Now, if I'm going from push to pull, I'm probably looking at smaller more finite pieces in order to be able to take cuts on what's going on. And immediately when I come in here it's going to give me some statistics so I'm getting some evaluated stock values, my current stock value, how many units I have on hand, my average, and then I can compare where I am for evaluated stock versus average. Wow, almost twice as much as what is normal for me, so it's going to be some good information for me to consider how many times I've issued the product, and then what, I'm looking at for patterns over the last year. But what I'm really interested in is if I come up here and I go to extras, there's this detailed info button, I can get a lot of, first of all statistics on what's going on, but I can also get some pictures. So the two things I'm most interested here right now are the key figures. Coming down here, I'm going to go ahead and pull based on total stock. And what it's going to do is pop up a bunch of information for me so I can see, what has been happening, my opening, my mean value, and my closing so I can see I'm actually growing an inventory on this particular item. I can see the last time it was consumed. What my average days of coverage is. So this is definitely, I'm pushing, I've got 394 days of coverage. I can see my current inventory turns, how many times I've stocked out. Very, very important as we're going from push to pull. We may make an intention to stock out if we're moving to make to order, but in general, we want to make sure we're working that slowly down, I can see my dead stock percentage and then I get just a little bit more information on what is going on. Now for those of us who like to look more at time series information I can also do that from here as well, so I can go to extras and then I'm going to go to detailed information and what I actually want, I could look at just more red line graph through stock level and look at total stock, but I want a little more information. I want to see how I've actually been planning this item, so I'm going to do my receipts versus issues diagram and I'm going to click on total stock. This is going to give me a little bit more information on what's been happening. So, you can see here, let me make this nice and big for you, so over time, over my period of evaluation, I can see the red line here and I can show on my legend. My red line is my stock balance so I can see my stock has started to go up a little bit and then my blue is my cumulative receipt quantity so I can see my supply pattern, how that's playing out and my green line is my cumulative issues quantity and what we can see here is that the patterns are very similar, but as we're looking at that accumulation, my issues is really lagging behind my receipts. And the bigger that gap gets, we can see it has a direct relation to what is going on with my stocking level, right? So as we see more blank space between the receipt and the issues, that's a time delay and I can see that my red line is graph is going up. So if I'm thinking about how I can get this back into control as I'm thinking about how I'm working through the behavior of this item, I want to start to get things just to be as stable and predictable from a supply perspective as I possibly can. And what that's going to allow me to do is as that becomes more predictable and stable, now I can start to reduce down how much inventory I am holding with less risk of stock out. So you can see at a very normalized pattern, we just recently started using it and then as that has happened now we're really starting to see this tick up in a big way. So I want to reduce that process deviation, it's going to help me get closer to, being in a position to pull rather than push and really start to bring that inventory safely down to a level that allows us to serve the customer within that customer's tolerance time. And that's a couple of the different ways that we can evaluate and look at information that will help us to go from push to pull. So in summary. We have covered how moving from push to pull allows you to position yourself for your customer's demand. Reduce inventory that is stagnant and stabilized supply. And decouple where necessary to protect and buffer against volatility and variability in demand. Oh, once again, thanks Kristie. Making this philosophical decision and allowing SAP to pull the materials through the supply chain can make such a difference to the business. If you want to learn more about this specific topic and others about your SAP system, please check out our video catalog, and if you have a specific question feel free to submit it below.

WM

LT10; LX02

The best way to learn is by doing and welcome to the video service that reveals and unlocks the hidden value in your system. Martin here, and in this video, we're going to focus on how to move materials in mass within your warehouse. Steven, tell us a little bit more about how to do that. Yes, Martin. Moving materials in mass truly can be a game changer for warehouse folks. This powerful capability can save a lot of time, but also it can create a lot of damage if not utilized correctly. In this video, I will demonstrate the use of this powerful tool and highlight the pros, cons, and when it may make sense to use. The most common way materials are moved in a warehouse are from system generated transfer orders, usually in the form of a goods receipt, a production staging, or an outbound pick. These are usually singular or specific transfer orders created from a material document or an integrated area within the supply chain. But what about moving materials in mass where there's no system generated documents? That is where transaction LT10 comes into use. This powerful tool has tremendous capability and streamlines moving materials from one storage bin to the other. So let's just jump straight into LT10 and I'll demonstrate how this transaction works. So a couple of things to point out. The first two things, a warehouse number is a required field. The storage type right below is going to be your origin storage type or where you want to move the materials from. You have the option to specify other details, a storage location, a material, et cetera. It then defaults in actual movement type. So in this case, we'll just go with a 999, a straight bin to bin, not tied to a material document. You then have three bubbles at the bottom, which display a quant so you can actually move a specific quant if there's mixed materials in that storage bin. You can actually do the same from a storage unit. So again, from a mixed storage perspective, if there are multiple storage units or different storage units, you could specify that storage unit and do a bin to bin. In this case, we're just going to use the storage bin transfer. What this will do, it's black and white from the standpoint, it will move all materials from one bin to the other. So if there are mixed storage, if you have mixed storage enabled in your warehouse, it will move all the materials that are in there from your origin bin to your destination bin. So let's just go ahead and execute this. I'll show you the next screen here. What you'll get is within my warehouse and storage type, it pulls up a number of options starting with the bin, the material, the stock, et cetera. You could pull in more fields if you would like but this is going to be your standard layout. These lock boxes over here are demonstrating that they are a lock, you cannot actually perform a bin to bin transfer. I just, I know there's an open material inventory counts. So, it's nice because the system is smart enough to know that there's a open inventory document so it won't allow you to do a bin to bin transfer because that would throw off your inventory. So those are going to be locked. You then see some check boxes right below, and these are the options that you have for bin to bins. First thing that I will point out, you see there's a gap here and then all these other ones are just singular boxes. Well, that gap is because there are two different material numbers in that same bin. So that's fine, let's go ahead and actually just move that. So all you do is you simply click the box, it selects and highlights both, you then want to go to this plus with the forklift, which is going to be your stock transfer in the foreground or where we want to move those materials to. So, again, you have some options here. You do have to pull in a actual storage type for your destination. So, in this case, we'll just show you the different variety or flavor. We just want to move it to 007, our pallet storage. If you leave it blank, like we're going to do so, it will actually use the system rules and go ahead, depending on your material master and your structure setup, it will automatically just place these two materials in a bin. So let's go ahead and just do that. I can even click this confirm immediately, and it will close out that transfer order. It's going to use that 999 movement type. I'm going to click copy and they both turn to green. You could refresh and they should drop off and let's just go ahead and see where those went. So I'm going to go and I'm going to open a new session, LX02. We moved it to storage type 007. So let's take a look, and there we go. You could see our two materials actually right there went to the same bin. So because of the material master and the setup, they actually consolidated both into the same bin. So it went both from the origin bin in that same bin to the destination bin in the same bin. So we will then just go ahead and click a singular, let's specify a bin here, click that. We're going to do the same thing, the plus foreground, same storage type, but let's pick a different bin, let's just go to 01-02 here, the one next to it, confirm immediately, went to green, it'll drop off, and go back to LX02, unfortunately you can't refresh, so we just have to go back and execute it once again, and there you go. It actually went to 01-02 or that bin that we specified. You can also straight from here, it doesn't have to be a different storage type so this last example, we will just move this material here into this bin and that same storage type. So we're just going to hit the plus once again, we're going to keep it in 001 and then we're going to specify 01-05-04. Okay, confirm immediately. All right, and then we'll refresh and there you go. They're both in that same bin. LT10 is a fantastic and very easy to use transaction, especially from the standpoint of you just confirm immediately and it moves materials. The transaction, the power that we displayed, the best practice would be to not use this on a daily basis or on your regular operation. You really want to utilize this transaction when you're doing warehouse projects, so in the past I've used these a lot from slotting. So we're moving materials around for the sake of finding the most optimal or that golden zone and we want to move all those materials from one bin to the other. It was a specific project. That's the form or fashion that you want to use it. Another way that I've used this in the past was we were doing an actual warehouse reconfiguration where we're moving racking around and we want to quickly do bin to bin transfers. This was going to be it. So. This is how you want to actually utilize that transaction and kind of those one off situations that will support any projects that you have. So with great power comes great responsibility and I would highly recommend you do not want to open this transaction up to just everyone. You want to ensure that this is only locked down to your trusted SAP users that are fully educated on the capability of this tool. So in summary, we have covered how moving materials in mass can save warehouse folks significant time, but if not done correctly can cause a lot of systematic damage within your warehouse. Thank you Steven. Wow, I can certainly see how this can save a lot of time for our warehouse project. Folks, if you want to learn more about warehouse management and any kind of capabilities in your SAP system check out our other videos and please submit any suggestions below.

MM; PP; SD

MD04; MD05

Best way to learn is by doing and so of course welcome to the video service that unlocks and reveals the hidden value in your SAP system. My name is Martin. In this video we will be discussing something called navigation profiles. Now, navigation profiles are typically a role based selection of transaction codes that are embedded in the top of the MRP stock requirements list and it makes for moving seamlessly between transactions as it relates to the planning process that we have to conduct. They aren't hard to set up, they do drive significant value, and profoundly important. So Kristie, show us where these navigation profiles exist and how to use them. Fantastic, Martin. I'd love to tell you more about this efficiency builder. Let's jump into the system and understand. What navigation profiles are. Where they live. And how they work. Now a navigation profile is a planner's best friend when they are properly configured for that role. Let's go take a look. Navigation profiles are one of those great tips or tricks that really help to enhance our experience when we're working in these cockpit transactions like MD04 and MD05, so the stock requirements list and the MRP list. And if you're not sure what a navigation profile is, it's when you see these little buttons that appear. Now there's a couple of different ways to make this happen. Navigation profiles are kind of hotkeys but the navigation profile is the standard way to be able to add transactions to the header of your screen and be able to navigate directly to them. So if I click on MD02, It's going to take me directly through for this particular material, in this particular MRP area, in this particular plant with my standard default values for single item, multi level MRP. Now, depending on your environment, it may make a lot more sense for you to be going to MD03, which is single item, single level MRP. But, it's very nice to be able to have these transactions listed here for us and I'm going to show you a couple of different ways for how you can get to and select your navigation profile. So the first option is under settings. And if you go to Settings and then down to Settings, you'll see here we've got a whole lot of different options for how to customize our experience in the stock requirements list and the MRP list. If you haven't started exploring in here, there's so many good things that can really help you with being able to get the most out of your experience. It just makes life a lot easier. This is all the usability stuff that helps to be able to get to a place where you're seeing your information exactly how you would like to see it. It really is helping you to make decisions and flow. One of those things is the navigation profile and if you've been through a transformation with us you probably will see one that has oVO in the description, that's what I have displayed here. And then if I click on this button right here to see the drop down list, what this is going to show me is all of the navigation profiles that are out there. So this is something you can have your IT department go out and configure for you so it appears in the list and it will appear for everyone. And when you come in here, and you can also default these, when you come in here you'll see a bunch of different options. So, right now I'm on the Optimization Profile for OVO. I could also go in and choose based on the type of role, or the type of experience that I'm looking for. So you can see here, I've got one for Buyer. Let's go ahead and click on that. And then when I choose this, it's going to come in here and I'm going to say save, if I wasn't sure I wanted to keep it, I could just hit continue, but I'll go ahead and hit save and it's going to say settings for my user have been saved. I'll go ahead and click continue and now you'll see up at the top, I have an entirely different list of transactions that I can move to that are really germane to the role that it is that I'm trying to perform. Some of us are planners and buyers, so we may want to flip across navigation profiles depending on what it is that we're trying to do, where we are in our daily cadence of activities. So we might want to be able to quickly navigate to these other transactions. And there are so many different ways to move directly from MD05 and MD04 to other parts of the system. We know we have these elements here that we're able to move through. We know also that we have all the different options under Go To as well as under Environment and all of these things are related to the work that we're trying to do. So the other thing that you can do here, we went to Settings, Settings and selected Navigation Profile. You can also use this Navigation Profile button right here. And so if you come in here, you can choose Assign, and it's going to take you right back into that screen, and you can select a different option to help you with the process. I'm going to go here and just go to a third one, Profile for Planning, and again you can go out and explore these. and see what is the most useful to you. So simple little trick or tip that can make things much easier. And you can see I just picked one for planning and this is really oriented around more of the long term planning, going out and working with the forecast and those kinds of things. So again, depending on where you are, your area of responsibility, what you're working on at that particular point in the day, where you are in your daily, weekly, monthly cadence, you may want to use different navigation profiles to help you with that process. And the more you think about orienting it to your process and the types of transactions that you might want to seamlessly move to from your MD04 stock requirements list or MD05 MRP list can make a huge difference in the usability of these transactions and they're intended to be a cockpit and really help you with the end to end process. So this is another way that you can increase the value and make it easier to go out and do the things that you need to do. So today we learned a little bit about the navigation profile and how it can actually make our life easier. We explored some of the standard profiles as well as the ones we typically have for our transformation teams. We will focus on some of the key transactions that are most vital to their success. And lastly, we looked at how to choose a navigation profile and began actually working with it. Great stuff, thank you, Kristie, much appreciated. Navigation profiles are super powerful for planners and buyers and can really make life so much easier to just seamlessly kind of work around different environments and different transaction codes. So guys, if you want to know more about this video service and anything else please check out our catalog. And of course if you have a burning suggestion or question please submit it below.

DM; IBP; P2P; PTM

MD04; MD05; MD06; MD07

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we are going to focus on how to find needles in the proverbial SAP haystack. Given the breadth and depth of SAP, sometimes it can be difficult to know where to start. If we just focus on the vital few things we can quickly uncover where the biggest differences can be made. Kristie, how about you help us figure out where these needles/problems potentially exist? Absolutely Martin. Let me give you the tour. Needles in haystacks via the exception monitors provide a powerful capability when used correctly and in this demonstration I'm going to focus on three ways to identify these needles in the haystack. First of all, we can use red lights to help us. Second days of forward coverage. And lastly, using the exception messages to help us identify these needles in the haystack. Let's take a look. Do you ever feel like you come into your exception monitor and you're looking for a needle in a haystack? Usually feels that way when you're first getting started, and sometimes when we have a lot of volatility or variability and the situation gets away from us a little bit, it can feel like it then too. So you're definitely not alone, I certainly have felt that way. So how do we find these supply situations that are the most urgent? I'm going to give you a couple of different ways to do that. So the first one is the one that we're likely really familiar with, and that's our red lights here. So when we have a red light, it means we're at risk of service level degradation. It means that we do not have enough inventory as of this moment in time to cover our current or past due demand. And you can see here we actually get a calculation that says how far in the hole we are. So that's one of the ways we can know which items need the most support in order to be able to recover. And then we can also see if we have a recovery plan currently in place based on what's going on in this first receipt days of supply and your second receipt days of supply. There's another video that walks through examples of how those calculations are made, but that will help you also to know where you want to focus your time and attention. So particularly on the ones that don't have a recovery plan in place. So we're not seeing any improvement in the days of supply after the first receipt days of supply. Alright, so then the other way that you can do it is you can come into the binoculars and we can look for some exception messages. Always update your statistics, you can see I've got a lot of different materials that I've pulled in here and I'm going to go ahead and update those statistics because as we go through the day things are changing. So I want to make sure that I have the most up to date information and I can work my exception monitor throughout the day. And as I'm moving forward in my day, I'm probably transitioning if I'm in ECC or I'm not yet running MRP live from MD06 to MD07, so I've got the current stock situation and I can come over here and I want to go to find exception messages. I'll come in here and I'm going to look to see which exception messages have me the most concerned. So, highlight here we've got one where we've got some items that have the stock fallen below safety stock level. So that message 96, I've got 4 occurrences of that. I also have a lot of reschedule ins, so those are items where my supply is due to come in later than what is needed. So beyond that mad date for the customer or beyond the forecasted demand for orders that have not yet filled in or beyond when it's needed for use in production or for stock transfer. Even more important or more critical than that are these, these 7 30's These are the ones where I know that I need to get this process in motion, I'm actually already behind. Unless I had a time machine, I would not be able to get the material here according to the current lead time. So my goal with these is to get my orders placed and then start to work through the process of moving them in within lead time if possible, and in order to do that, I might need to work some of my reschedule out or my cancel messages to free up time, space, materials capacity, room on containers, all of those good things that will allow me to create a hole to bring in these critical items. So I can use this to help me find those really critical supply situations and then start to work through them. There's also reporting an SAP that will help us with this. So some of our inventory analysis reports would let us go in and take a look to see where we've got that negative days of supply. So really helpful would be MC42 or MC43 to be able to go in and filter on negative days of supply and even work that near selection criteria in. As you're going into your exception monitor, you also have some of those filters. Let me go ahead and leave this overview, yep, that's fine, and I'm going to go ahead and scroll down to the bottom. You'll see here I'm using the extended selection criteria for MD07. This is also there for you on one of your tabs if you are just using regular old MD07, but this extended criteria is nice. I wish when I was a planner that I had known that this existed many, many years ago at the beginning in my career, I didn't find out until I'd been working with SAP for quite a while, and boy was this a game changer for me because I could look at multiple plants or specific material numbers altogether. It gave me lots of different ways to group and prioritize. So this is really helpful. But you can see down here in this range of coverage, you can actually pull in based on certain stock days of supplies, so you can work through your threshold. So for example, eliminating some of those positive 999 messages, really throttling to your inventory that you're currently managing through and then looking at your 999's as a seperate use case might be helpful, focusing on some of the recovery for your first receipt days of supply. So those are, in most cases, it's going to be the things that are scheduled to come in, so purchase orders, ship notifications, production orders, process orders, those kinds of things, firm stock transfers. So you can see how your pipeline is filling back up and what you're looking at in terms of recovery, that will also help you to prioritize. So really nice to have not only the exception messages, the red lights with those days of supply calculations sitting right next to them, but also some of the filtering on the front as you're entering into MD07 to be able to set some of these thresholds so you can focus on them as well as the inventory analysis reports. So things like MC42 or MC43, where you could go in and actually filter based on specific days of supply and that allows you to look at it not only from forward looking, so what you're predicting to use, but also backwards looking in terms of usage. So nice to have those different options in your back pocket. That'll help you to find those needles in the haystack so that you can move through and work through those exception messages and get those orders placed so you're in a good position for supply going forward. So in summary we have covered how using the exception monitor to find needles and haystacks allows you to. Focus on the materials in the most critical planning situations. Evaluate and resolve the supply and demand imbalances. And lastly, find materials with very specific planning situations. When we are first getting started with exception monitoring, it can feel completely overwhelming. In fact, you may feel like the data or exceptions are not real, rest assured life can be different. Too true Kristie. Thank you. Understanding how to get key insights from SAP allows you to narrow your focus and get the biggest impact from a few key actions. So if you want to learn more about doing that and other things around your SAP system please feel free to check out our video catalog. If you have a specific question that needs to be answered feel free to log it below.

WM

LL01

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, Martin here, in this video we're going to focus on the negative stocks within the Warehouse Activity Monitor. Steve, I know this is a big deal, why don't you tell us more about why negative stock is such a problem? Sure, Martin. Negative stocks within the warehouse activity monitor have surpassed the time allotment and are now deemed as critical and are creating a supply chain disruption. In this video we'll demonstrate. How to analyze this portion of the monitor. And review strategies to manage and take action upon. In this video, I'll demonstrate negative stocks in the warehouse activity monitor. So we'll go into LL01, which is the activity monitor. The required field here is going to be your warehouse number, mine defaulted to 001, so I'll go ahead and execute this. Negative stocks are going to be at the bottom of this report. You can then hone in and the interim storage types where negatives maybe listed there. So you have the option to include these in specific variants if you own that portion of the warehouse monitor, you could create ranges, so on and so forth. But what we're going to do here, just like many other users that use the activity monitor, we're just going to execute and get the holistic picture of everything. You can see I have 33 negative stocks. If I click this subfolder, it just breaks down the actual storage type in which they're in, both are interims. One is 999, one is 998. So we'll just go ahead and get the whole view here, the list. Unlike the other portions of the activity monitor, you cannot just create or convert the straight into a TO, a little more due diligence and research is needed because at this point, all we see is that there's a material, there could be a status in there, in this case there's a quality block on this one, we have the bin and the stock. So what you could do though, is select one, jump straight, if you click this transfer order for quant, that's where you're going to get your additional research. So in this case, you had your TO numbers associated to that. So if you just click on the TO number it jumps you straight there. So now you can see that it's in this interim trying to be put away from here. You don't want to do this just blindly, again you want to do your research because it will confirm it to this bin because you do have the option to do so here. You can confirm, you can cancel straight to this bin. In this case, what I would do I'll go to the header details, find the user, say what's going on, really you want to understand why these have exceeded that time parameter and why these are negative. So as we are working these, you have the option, just like the other reports, you can notate anything that's going on with these, but ultimately you want to balance these because these are all a negative, these are all issues that have exceeded that time parameter. So, in summary, we have covered. How negative stocks or supply chain disruptions push through the warehouse activity monitor and have surpassed the time allotment. These negative stocks are late and need to be quickly corrected. Thanks, Steve. I can certainly see why it is imperative to move as quickly as you can on these overdue negative stocks. Folks, if you want to learn more about WM and other areas within SAP and see how you can get the most out of it, please check out our other videos and of course if you have any questions please submit them below.

OTC; WM

VL10G; VL10BATCH; VL01N; VA02; VL10A-E

Greetings supply chain professionals. I am Martin, and today, we're on a mission to uncover the hidden value in your SAP system. So let's get started. In this video, we're going to explore one of the gateways from planning into execution. It's called the delivery due list. The delivery due list helps us to know what orders are ready to be moved into delivery so we can stay on time with execution and deal with any exception that may crop up. So Dave, I know we're all eager to know more. Tell us more what we need to know about a delivery due list. Hi Martin. Today's walkthrough, we're going to go over a few key things. First, we'll pull up a delivery due list so we all know where it is in SAP. And I'll also speak to where it falls into the process. Second, we'll talk about what it is or the purpose. And lastly, we'll highlight how it can be used to make the transition into logistics execution more effective. I think it's best we go and take a look. What is the delivery due list? Delivery due list is where we take sales orders that have a delivery date on them and we use the transaction to convert them into delivery document, which is the instruction for a warehouse to go and pick the product and ship it out to the customer. Deliveries can be created in a number of different ways, we can create them directly from a sales order VA02, and then use the delivery create button. We can create them manually using VL01N, and we have a number of alternatives to create a collective number of deliveries for a number of sales orders, and those options are VL10A for the header items, VL10C for the items, and VL10E for schedule line details. Likewise, we can create deliveries for STOs, for stock transport orders. In the same way, we have VL01N, or VL10B, or VL10D, and VL10F. These are all used to create the deliveries for stock transport orders. In addition to all of these options, we create deliveries via background jobs, and these can be set up in VL10BATCH. When we create delivery documents, the important parameters we need to know where we're shipping from, or for a range of shipping points. We need to know which plant we're shipping from? Are we going to create deliveries specific to a customer? Do we include overdue orders? Do we include documents not blocked for delivery, which are due today or possibly in the future. These are all decisions that the delivery create transaction can manage for us. Typically, the delivery is created on the date that the system calculates the material availability date. We derive the material availability date on a sales order through the process of ATP checks, and also MRP calculations. We have a number of recordings which speak specifically about how ATP works and what these MRP calculations are. For this demo, let's schedule a manual delivery create using the VL10G which does sales orders, and purchase orders, really stock transfer orders, right? We can do those simultaneously. I am showing you a list of the VL10 transactions, as you can see, there is a number. We're going to use Documents due for Delivery, which is the VL10G. This transaction covers all of the variations we have for STO's and purchase orders simultaneously. I have a variant that I've created. I'm going to pull up my variant, which is called VL10G, and in this variant, I have set up a delivery create range, which is automatically loaded. The delivery create range is doing dynamic dates for me, so I can eventually just put this into a background job and then let this run on a daily basis at its pre-determined time. If I run it here, you'll see that this runs quickly. I'm getting a really quick picture, everything in red is overdue, everything in yellow is almost overdue, everything in green means I'm creating it ahead of its delivery due date. These are important factors. We can modify the screen. We can add additional fields and columns to give you more details about the delivery create. I want to quickly take you through the batch job, the automating of this task, and we do that through the VL10BATCH transaction. VL10BATCH is pretty neat. I can take the variant I've just shown you, I can schedule it. I can set it periodic scheduling. I can say I want to run this on a daily basis and I'm done. This is going to run every day at the same time, 2200, 26 minutes, and it will run every day at this particular time. So what happens in the morning, I come in, I've got my deliveries they're being distributed to the correct location to the warehouse and they can go ahead and pick and schedule what needs to be picked for that particular day? Let's talk about the so what. Timing is everything. We want to make sure that we are making all of our hand offs from one functional area to the next on time so that we can then be on time to our customers. When we run the delivery due list, we get one last chance for review. Now, hopefully over time, we don't have to have that manual intervention and we can start to automate. But if we're early on in our journey to quality ATP, or if the master data is not quite right yet, there is a good opportunity to verify everything looks good and is ready to execute. Thank you, Dave. There's nothing worse than getting the inventory in the place only to fall down at the last moment when handing off to shipping. Timely, accurate and complete hand offs are essential. If you want to learn more about this video and other topics related to this, please check out our video catalog, and of course, if you have a burning question, please submit it below.

WM

LL01

Hi, Martin here and welcome to the video service that unlocks and reveals the hidden value in your SAP system. In this video we're going to focus on the open posting changes within the warehouse activity monitor. Hey, Steve and as you know the best way to learn is by doing so please tell us more about this particular feature. Not a problem, Martin. Open posting changes within the warehouse activity monitor have surpassed the time allotment and are now deemed as critical and are creating a supply chain disruption. In this video we will demonstrate. How to analyze this portion of the monitor. An review strategies to manage and take action on. So first we will go into LL01 which is the warehouse activity monitor. The default is you're going to enter your warehouse number, mine populated already so I'm going to click execute. You can see open posting changes is going to be the third thing down, so we have some options here where we can actually select and specify movement types for those open posting changes. So again, as I've mentioned in previous videos, you could save a variance if you would like, or you could just run right through the report here and we have five open posting changes. You can click the subfolder and it breaks down the actual movement type, so of the five, four of them are in the quality bucket and one is just posted, that 309 movement, to a general posting change movement. So, we'll collapse this and go back into them. Here you could see the ones that are in that quality hold right away because they have that queue that are represented right there. You also get additional information with the movement types, the storage types and then there's our one that we have that is not of quality hold. So, posting changes, as we know, there's something within the characteristic of this material that is changing. So in this bottom one, let's click in number 31, in this case, the material, the 309 movement is your general posting change. It's moving from this batch to a general batch. So the characteristic of this batch is going to change or needs to change, that's what's holding it up. So, it hadn't done so within the specific time parameter, which is why it's on the warehouse activity monitor. So within here too, as I mentioned in previous videos, you could click notes and really identify what is going on with these open posting changes. You want to absolutely investigate why are, they are still delayed, what is going on with them? Because from here too, just like the other videos and the transfer requirements, you can actually create a TO or the actual movement to clear this up and really confirm this transfer order straight from this posting change. So great functionality, great power here in that you can do this in mass, but really these have exceeded that time parameter, they need to be addressed because they're causing potential supply chain service disruptions. So, in summary we have covered how open posting changes are supply chain disruptions pushed through the warehouse activity monitor and have surpassed the time allotment. These posting changes are late. And need to be researched and quickly corrected. Thanks again, Steve, great information. Those are certainly some great pointers and strategies to quickly take action on those open posting changes. If you want to learn more about this and any other topic about how to maximize the use of SAP please check out our video catalog and of course, if you have a specific question please post them below.

PP; PTM

MCP1

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we are going to focus on how to take advantage of SAP's operational analytics. When used correctly operation analysis reports can provide real-time information about operations which enable organizations to better analyze operational data. Eacliffe, how about you take us into the bowels of this. My pleasure Martin. Operation analysis is a powerful feature when used correctly identifies how well a production order operation is performing against the scheduled commitments. In this demonstration I'm going to focus on three things. Provide an understanding of what insight the report provides at a production order operational level. How it goes about providing this insight on production order operation. And how to evaluate the production order operation performance. The intent here is to use transaction MCP1 to perform operation analysis of production orders. In this report the data is captured at a plant work center material order and operation level. This differs on the work center analysis because the fact that a work center can be used in more than one operation, the point is by using this LIS report we can say, okay, for this work center which operation are we seeing some form of deviation or data that's outside expectations. So let me run this transaction and what I'm going to do is quickly do a switch drill down and I'm actually going to bring it down to a work center level. So from here I'm going to take this target, target is how much execution time we expected versus actual, this is what came through confirmation. By sorting this in descending order I can see the worst contributing work center to this evaluation. In this case, because all these entries here are 0 it's telling me that a confirmation has not taken place as yet but we do have this one entry where confirmation was done and we will focus on this. So one thing that should be aware of these reports when we are working in unit of measure of days sometimes it doesn't make sense to add up the days and therefore what SAP does is it performs some averaging. So in this case we saw 10.1 days yet it only comes up to 0.2 on the header level and the question is why? Like I said SAP does averaging, we have multiple entries here, so we would take this number and divided by the number of work centers and that's what is being presented as an average on tap. So this really tells you to be somewhat cautious around the range of data that you do retrieve. So lets come here, I'm going to do a drill down by which means I'm going to ignore all these other work centers and just focus on this one here. So I select the line item, what I'm going to do is drill line by and then from network center I want to see which orders are involved with this entry or this particular work center. So green check and we can see we have several orders which is involved with this particular work center. I'm going to take this and I am now going to again, sort in descending order and now we see that dealing with some averaging and so forth, we can now see what's truly contributing and the averaging is decreasing. So what I'm now going to do is pick this particular order so from this work center we came to this one order. Only one order is contributing to this significant difference it should be one day yet in terms of execution time yet the actual is reflecting 7 26. So this would imply somehow we happened to pick an old order and did some recent posting against it which sends up a red flag to say, hey what's going on, did a user make an error or so forth in terms of how we managed to achieve this. But the key point is that we were able to identify that we did have an issue. We know exactly which order it belongs to. I'm going to do a drill down again and I'm going bring it down to an operation level. So from an operational level we could see that it was operation 10 within this order and that's where something was not done correctly and therefore we can now proceed and take corrective measure. Of course the key or the primary reason we actually go through this exercise is to say where do we have a breakdown in our supply chain process from a manufacturing perspective? The question would be is the one day correct versus the actuals, if we're getting actuals and it's completely different from the target that implies that we are not planning our production floor properly. Ideally what we would like to see is for any one of these key figures, be it execution time, queue time, etcera, they all should be aligned or closely aligned and only when they're closely aligned can we truly say that we're able to schedule our production, our floor properly and minimize the risk of any kind of disruption due to some kind of variance happening in terms of this is what I'm telling you to do versus this is what actually happened. So in summary we have covered how operational analysis allows you to. Appreciate the feedback the report is providing at an operation level of a production order. Identify which key figures to focus on in this report. And how to evaluate the production order operation performance. I can see when working on improving and optimizing the operations within the manufacturing process how these reports can be super helpful. If you'd like to know more about these kind of operational reports or other features within your SAP system please check out our other videos and of course if you have a specific question feel free to submit it at any time.

SD

VA01; VA02; VA03; CO09

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin and in this video we'll focus on options for how to confirm availability in a sales order. Pretty awesome right? I like the options and it's so common in SAP that we use the same business rules for all occasions even though our business behaviors may be completely different. Options give us the opportunity to use the right tool for the right job. So, let's get into it. Kristie, tell us about the options that we have to get this right. Certainly, Martin. I like options too, but I like them best when I've got a good idea of what to choose and when. So today we're going to take a dive into just a single screen in SAP and walk through. The results of an availability check. And which confirmation scenario we might choose. And for what reason and when. I'm excited, so let's jump into SAP. Okay, so now let's go in and take a look at what happens when your customer calls or emails and they are working with you on availability situation for an order. So you're in there and you're interactively running it, or maybe you have seen through some sales order monitoring that you maybe have a problem with an order and you want to go in and either prioritize or just run ATP in an interactive fashion and see what is going on. So I'm going to do that, I'm going to choose this order here and I'm going to go ahead and double click and come into it. Now this is using a very generous ATP check, it's assuming really good quality information around this material and when you're getting started you're probably going to do this with a little bit more reservation. Meaning you're not going to be checking all the way out against planned orders. But for the purposes of this demonstration, this is going to let us go in and take a look at whatever different options are. Now, if you're curious about how to get started with ATP, there's some other great videos that walk you through good starting places around checking against inventory and also against your scheduled production and scheduled inbound procurement. So, make sure you go take a look at those if you're trying to figure out where the best place is to get started. But here I want to focus with you on the confirmation screen, so I'm going to go ahead and choose this line item here. This is the 110. And I'm going to go ahead and run the availability check. And when this comes back, it's going to pop me into the availability control. So, these are my ATP results for this particular line item and here is where you really want to have either the rules for that customer well known or you're in with a conversation and you're trying to manage an exception. So you run the ATP check, it's happened in an interactive fashion, meaning I am in the sales order and I run it. Now I have a couple of different options that have come back. The first is if we were to have this available for the customer on the day that they are looking for, what quantity could we confirm, and we can see that we have nothing available. So if for that particular customer the date is the most important thing and if we do not have it by the date they are looking for we would need to cancel the order, or reject that particular line item in this case. Then, this is the option that we would choose. Hopefully that's not the case. Hopefully you've got some flexibility there or you can work with supply in order to meet their needs. So what would end up happening is that until the line item is rejected, that line item would remain open, it would just be unconfirmed, so it's going to show up as an abnormal condition. And then you would work that with the supply side of the house to see if you could meet that customer's needs. Now down below that is if the quantity is the most important thing and you need to know what the best date is in order to deliver all 14 of these pieces, then you would choose this one. It says we can have all 14 pieces delivered or available to ship, depending on what your conditions are, by the 22nd of December. And I can see that we may have another option, we might be allowed to do partial deliveries, so maybe we have multiple line items on the order that are going to ship at different times, or we may even be able to break that particular line item into multiple shipments. And if so, then we have the option to have 11 available on the 15th and then 3 additional available on the 22nd. And if that's the case, the customer will take whatever the quantity is that you can get for them as early and as soon as you can possibly get it, then this would be the delivery proposal. So you're proposing two different shipments. Now you could even make a decision to split that quantity in a different way and still be able to confirm it, so long as you didn't go above 11 in the first shipment and 3 in the second. So, here I can choose these by clicking on the green tick boxes, or I can come up here and choose complete delivery, which is this guy right here, the delivery proposal down here, or if I'm going to wait and see if I can get some more available by the date that they originally requested, then I would just simply hit continue and we'll try that availability check again, allow something like backorder processing or rescheduling to pick up and try to make that order happen based on the customer's need. So once I've chosen my option in this case I'm going to go ahead and say 11 and 3 on the 15th and the 22nd I'm going to go ahead and click on this green tick box, and I'm going to go ahead and save yes please and then the next thing I want to do, I'm not going to see any changes here watch me refresh the stock requirements list I won't see any changes here still shows up for me, I'm still trying to meet that very best date of the 4th. If we wanted to hold those dates that we just selected we would use something called the fixed date and quantity flag, which we'll cover off in another video but let's assume we're going to continue to try and improve those dates for the customer, then we're still going to work towards that December 4th date. What I'm going to do here is just flip over so that you can now see the availability overview and what you're going to see here is the 14 pieces for this particular custom order are showing up here. Okay, so 14 pieces required. 0 confirmed and we're at a negative 8 in terms of what it is that we need on the 4th of December. And if I double click here you can see the order that is referenced. Let's scroll down just a little bit and I just want to show you how it breaks apart and you'll see it here. So then on the 15th you can see we're actually confirming 23 pieces, but there was a sales order that was already previously confirmed for that date, so it's in line first. So 12 of those pieces are going to 14805, because that was confirmed before this guy was, this availability check was run after. Then 14710 gets 11 of those pieces. Now, if you're looking at that and going, well hang on, 14710 is an older order, we'll talk about that when we get into our rescheduling videos of how we actually can control and make sure that those documents get their shipments first. Then down below here you'll see the 3 pieces that are additional. Now if you saw this situation and you needed to clean it up for whatever reason, there's also other tools that will help you to do that, but we've chosen to split the shipment here, so 11 pieces on the 15th, 3 on the 22nd, and I can still see up here that I have 14 pieces that are not being satisfied on the date that they are originally intended. So, what's great about this is I can see I'm behind, I can see what my current proposal and recovery plan is like, and I can make some decisions on which order should get that quantity in when. So really good and powerful information here that lead on to additional actions and activities, but the most important part is making sure that you know what the best options are to satisfy that particular customer's needs by having that conversation with them or knowing what their rules are for how they like to receive inventory from you. Is it most important to get it all at one time? Is it most important that you hit the date? And if not, then it's not going to ship on that order or is it most important that you get as much to them as quickly as you possibly can and then ship the remaining balance as soon as it's available, and they will wait for it. Alright, so in summary, we have taken a tour through the confirmation screen on a sales order. And we have discussed several different options for managing the outcome of that check. We've discussed some use cases for each to paint a picture of how we might think about the customer experience and the flow of materials. And we've also discussed how different scenarios might change the supply side and how they work their magic, and how we would retain the right to revisit the situation if it does change and if the customer will allow it. So back over to you Martin, bring us home. Thanks a lot, Kristie. I imagine these choices may have been new to many people. It's good to know that we have these options to choose from and try to meet the customer needs and that there are rules or expectations that we can consider driving the right choices in that particular situation. So, if you want to learn more about this and other topics related to using SAP as effectively as possible, please check out our video catalog and of course if you have particular questions please submit it below.

PP; PTM

MCP3

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we are going to focus on how to take advantage of SAP's production order analysis reporting. In essence, this is how we manage the performance of our production orders, plan versus schedule versus actual. When used correctly order analysis can really help organizations make more informed decisions about their sales and operations strategies. Eacliffe, tell us more about that. Sure Martin. Order analysis is a powerful feature when used correctly to identify how well production orders are performing in keeping its commitment to the schedule. In this demonstration I'm going to focus on three things. Provide an understanding of what insight this report provides for the entire production order. How it goes about providing this insight on the production order performance. And how to evaluate the production order performance itself. The intent here is to use transaction MCP3 to perform production order analysis. The data in this report basically lies at a level of plant material order month. So let's go ahead and execute this transaction and by default we come in at a plant level. What we can then do is a switch drill down to determine things from a material perspective or an order perspective, probably makes more sense to go from a material perspective. So here we have the different materials that we manufacture, and the goal is to then say, okay, for these materials, let's take a look at some of the variances from a scheduling perspective. So we have T versus A, which is target versus actual, where the target is coming from a production order, actual would come from a confirmation. Just to double click on one of these rows or even the total, what you get is a listing of all the different options which are available within this report. We have plan versus actual P/A for deliveries, lead time, et cetera, we also have target versus actual. So the difference between plan and target is the fact that the dates or quantities associated with the plan is coming from a plan order versus the T, it means that timing, dates, quantities is coming from a production order while the actuals, the A in both circumstances is related to a confirmation. Someone did a confirmation, it could be the start of an order, et cetera. So here I put more emphasis on the target only because I know when I have a production order, it is scheduled and the question is, how well are we doing against a schedule, in terms of if we have like a positive numbers in terms of number of days, it basically implies that the production order has started early versus if there was a negative entry like for example here in this case, this is a quantity, it means that we assured, but if we have a negative entry in terms of days, it means that the production order has started late. So the goal is that we can take these reports or these key figures, we can sort them in ascending or descending to see, look who's starting really early, who's starting really late, why do we have a big variance in terms of plan versus target or plan versus actual, or more so target versus actual. When it's plan versus target, we recognize that we get the plan orders, we need to schedule it by scheduling it, we're changing the date, hence ideally we are producing that inventory earlier to meet the plan. If we are scheduling it after the planed dates, it means, hey, you are not providing that inventory in time. So again, this is some of the insight we can get from looking at these key figures to appreciate what is going on at an order level recognizing that we have other reports that can take these orders and break it down to a lower level, which would be at an operational level. For each operation are they starting on time, finishing on time, are we losing time from queue time and so forth? So it's good to start at an order level, get this kind of insight, and if we need to dig further, recognize we have other LIS reports to to use to aid with our analysis. So in summary we have covered order analysis which allows you to. Appreciate the feedback this report provides at a production order level. Identify which key figures to focus on when looking at this report. And to evaluate the production order performance itself. Thanks Eacliffe. Evaluating our production performance is critical in establishing how well we are doing in meeting the plan. Each variation to the plan is an opportunity to either improve our planning or our execution. If you'd like to learn more about how to get the most out of your SAP system please check our other videos and of course if you have a specific burning question please submit it below.

P2P

ME5A; MD04; ME53N; ME38; MCBZ

Hey there procurement professionals, I am Martin, and we're thrilled to have you join us as we work with you to help you set up your suppliers for success. In today's video, we're seeking to provide clarity around how you might provide a forecast to your supplier. Now I'll start by saying this, when you share information with your suppliers for the purposes of planning, it's very important that everyone's on the same page with how that information will be used and what your commercial obligations are or not. This is very important piece of conversation to have with them. Okay, folks, so let's hand this over to our ever diligent, Rutul. Rutul I'd love for you to walk our viewers through specifically how to use some of these tools and techniques that will actually allow them to successfully provide a forecast to one or two of their suppliers. Hello everyone. This is a common request and fortunately we have a few options to achieve the outcome we are looking for. Let's start with clarity on what sending a forecast really means. First things first, are you providing your supplier with your forecasted demand or their forecasted supply? These are two very different things. Most of the time, we would recommend sending their forecasted supply or your expected goods receipts. The good news is that we have a few options to get to this information and I'll walk you through three of those options today. Let's go in and take a look. All right, we talked about multiple ways where we can share the information with our suppliers about forecasted supplies or demand. Let's take a look at a few ways that we can see this information in SAP. First one we will go to is called transaction ME5A. This is a list of all purchase requisitions, they are not firm, by nature purchase requisitions are only a pre step for firm purchase orders. So we're going to take a look at this here in this transaction, where you can see all the different purchase requisitions for different criterias. We can put in purchase material, specific selection criteria, the vendor number. But what we are going to look at here right now is everything in the plant and then I am going to change the scope of list as a layout for ALV. I want to see this list in a little bit better format. So I'm going to put the plant as 1000, one of the plants that you want to look for and the scope of list. And when you click on execute, you have all of your purchase requisitions by material, sorted out that you can see and perhaps communicate to vendors in terms of forecasting. Please be careful here that purchase requisitions again are not firm requirements yet. Another way you can look at the purchase acquisitions is also through MD04. So we're going to go there. We have this material, we are looking for, 100-130. And then the material requirements list, stock requirements list shows everything from all the exceptions and the purchase requisitions, sales orders, reservations, those things. We can easily filter the information in this requirements list to say I only want to see receipts. So you click on this display filter and that standard display filter is showing only receipt. So you click on the SAP only receipts and here it tells you what your purchase requisitions are. You can see the number and you can see the date that is coming in. We can also navigate from here to purchase requisition itself and you can see the information about when it's supposed to be coming in, delivery date of July 8th 2024. That's when it's supposed to come in. So that's a couple of ways that you can see and communicate with your vendors on the forecasted supplies. Another way you can do if you have scheduling agreements in place, then you can see that information at the delivery schedule level. So we will go ahead and look at that. For that, we will navigate to transaction ME38 and enter the scheduling agreement number. Here it shows what the material number we are scheduling agreements for and then when you select the line and click on delivery schedule it will show you all the different delivery schedule for this material that is agreed upon with the vendor. Now you'll see one of the things that you want to see here in the scheduling agreements additional feature is in scheduling agreement is what they call the firm zone and trade off zone. What the firm zone means is that vendor can ship against those schedule lines and delivery lines that is communicated with them. Firm zone falls within certain time frame that vendors can without any further communication, it's ready to go, ready to be shipped versus there is also called trade off zone. And if the scheduled delivery lines fall under and mark as a trade off zone, that means there may still be room for changes to the delivery schedule for that. So that means vendor should not ship against that request yet until it goes into the firm zone. How do you know, or how does the system let you know which is firm zone versus the trade off zone? You'll see that each of these delivery lines has this indicator called firm zone versus trade off zone. Let's take a look at that. You'll notice that when the delivery line is indicated with 1, that indicator means firm zone, which means the suppliers can ship against this quantity requested for that material. If the delivery schedule line was marked with 2, that means they cannot, and they should not, ship against that request yet. All right. Now, there is another, scenario and another way that we can look at the past and even future goods receipt and goods issue information. For that, we will go to transaction MCBZ. You can put in the plant information and we will look at this material again We are going to expand the date period, that we are looking the data for so that we can see goods receipts and goods issues in the past or in the future. So we will go a couple months back and we will go all the way out to the next year. We're going to look from March of 2024 till August of 2025. We'll see what the goods receipt and goods issue picture looks like for this material. Now by default, it does not bring in that information. So we will bring in that additional information and we will look at goods issues, MRP, and goods receipt, MRP, and we will bring them over. Now standard SAP functionality, you can select this line and we can drill down by, and then we look at them by month and now you are looking at what your total goods receipt, and goods issue, projected goods issue and projected goods receipt for this material from March 2024 till August 2025. These are the projected goods issues that's already assigned, which is these are the projected goods receipt assigned and projected for this material. We can look at this graphically, we can select the two goods issue and goods receipt information that we want to look at and we can expand this view a little bit, and we can certainly also look at the options, configure the 2D options as lines and you can see the projected goods receipts and goods issue for this material. This will help you communicate with your vendors or for you to know how much is going to be issued and received and then contractually contact your vendors to make any adjustments that they need Excellent. So to wrap up our time together today, a few key reminders. First, sharing a forecast of your anticipated goods receipt plan with your supplier is meant to help them with the pre planning. Second, there needs to be upfront conversation and clarity around which signals you are sharing with them, and for what purposes? This leads us to the third and very important point, and Martin highlighted this earlier. It is very important that you align with your suppliers on what the commercial implications of acting on that signal in advance of a firm PO or a delivery schedule really means. Hey, thank you Rutul. Always a pleasure to hear your perspective on things, and walking through the options with you. I feel like there will be many more discussions to come out of this video. And I kind of look forward to part two. So once again, thank you. Hey folks, you're going to learn more about this topic or others and even part two, please feel free to check out the video catalog we have. If you have a specific question for us, feel free to submit it below.

DM; P2P; PTM

MD07; MD04; MIGO; ME01; MC$G; ME2N; ME33L; MEQ3

Hey folks, Martin here, and we are here today to talk about a real life supply chain challenge that one of our viewers submitted. What can SAP do when we are over capacity at a supplier? We are managing this currently with blanket orders in Excel today, and it's getting out of hand. What are the options in standard SAP? Wow, what a great question. If you are over capacity at a supplier, you're in a very risky situation, and that's made worse if you're manually managing it. Let's address this. The good news is we have a lot of tools in our toolkit to help us with this, and Steven is with me in the studio today to specifically answer some of these particular questions you have. How would you use SAP to help and over capacity at a supplier situation? Take it away, Steven. Well, that's no fun, Martin, as you say, that's never happy news, but I can take you through some practical blocking and tackling that I would do and explain how we could put SAP to work instead of relying on Excel. First, I've got some ideas on how SAP can help us if we're going over the capacity threshold at our supplier and how to identify the uncovered demand. Then I've got an interesting idea on how to identify other potential sources. Lastly, I'd like to highlight the difference in approach for a temporary versus persistent constraint at that supplier. Let's take a dive into SAP and take a look. We're headed to communication central in SAP MD07. This is where planning related exception messages live. This is one of the places where we can start to identify and unpack when we're falling short on supply. There are several exception messages that are designed to help us quickly get our arms around the materials that require attention. We can see a few examples in this list. An exception message 30 lets us know that we've uncovered demand within the lead time and we're already behind. An exception message 10 lets us know that our supply is coming in too late, and we need to see what we can do to fill that gap. An exception message 96 lets us know that we're under our safety stock target. Red lights let us know that we don't have sufficient supply for today's demand. These are some of the usual suspects, but let's take a look at a few more. Exception message 70 lets us know that we've exceeded the max release quantity on the quote arrangement. Did you know that you can control how much volume is released to a supplier over a particular period of time? We've got some great walkthroughs on how to work with quota arrangements. And when you're in here working with a materials planning situation, you may also see a warning message letting you know that you've exceeded the target quantity on the scheduling agreement if you have allocations in place, these are two really helpful messages to help manage those situations. So what do we do if we know we're struggling to keep up with the demand that a particular supplier? Well, first we'd want to check our source list for any additional qualified sources. Then I have a more interesting idea for you. How about using SAP spend analysis to find other potential sources? We could run the report for a longer term horizon, and then switch our drill down to the material group. What other suppliers are supporting similar materials? Are there other potential sources where we have existing relationships? Or is there an alternate source applying to a different plant in your network? SAP provides a ton of ways to slice and dice information from this single report. The next thing to consider is if this is a temporary or a persistent challenge. If it's temporary, you may be able to set up a contract for a fixed period of time to call off of. MRP will automatically record the purchasing volume for you if the master data is properly set up, allowing for ease of maintenance. You could also consider the use of scheduling agreements that reflect what the supplier has committed to you. This will invoke the aforementioned warning if the target quantity is exceeded in the MRP run. The tendency of many organizations that are experiencing a capacity constraint at a supplier is to issue a blanket PO. Blanket PO's are not a good solution. They limit the help MRP can give us in aligning the supply plan. We want to use these other tools in the toolkit to commercially commit to our suppliers and then set them up for success while still keeping our plans reasonable and realistic to our demand. Then of course, there's the quote arrangement and the ability to throttle how many units a single source can provide over a period of time. And then let us know with an exception message when that quota is exceeded. A challenging situation is even more difficult when you're forced to manage it offline. Let's move these rules into SAP and address the situation with clarity, precision, and support. All right people. We got our hands on some tools. Most of them aren't new, but applying them in the right way to the right situation is where the magic sometimes happens. And I think we had some of those good conversations today. As a reminder, we touched on contracts to support a shorter term allocation of volume to an alternate source. Contract acceptable in most cases, blanket order bad, almost always. Then we looked at scheduling agreements to provide better mid to long-term visibility to the constrained supplier with a firm zone to represent specific commitments. Lastly, we hit on quota arrangements and MRP to help us balance the volume. We've got videos on all of these tools individually that I'd love to encourage you to go and check out. Hey, Steven, much appreciated, that's awesome. You know, and the reality guys is that if the more visibility we have of our constraints and the alternatives we have to deal with them, the better. We just become more proficient. Hey folks, we have quite a few topics in this particular area, and if you can find the video in a video catalog, please use the AI chatbot, it'll recommend some for you.

P2P

MD04; ME22N; MD62

Hey there Reveal TV community. Welcome back, Martin here. Are you ready to tackle the noise and churn in your supply chain? If it feels like things are just changing and changing and changing again, it's time to stop that madness. I promise it's costing you. You're paying in customer satisfaction, supplier collaboration, and your team members are just fatigued. When this fully manifests, a common phrase you'll hear is "just tell me what you want me to do". That's the first sign that we're in real trouble. In this studio with me today, hailing all the way from the UK is Liam. Liam is on the front lines helping clients work through this churn every single day, so I'm sure he is got some ideas to share with us. Take it away, buddy. Thanks, Martin. No one enjoys constantly shifting dates, ever changing prices, and just general repeated adjustments to the POs. Most of the time we don't even know how bad it is. We make changes to POs for loads of reasons, but a common one is when we want to cancel, but we delay instead, and we do this over and over again. We also may have shifting priorities and has this ever happened to you? You end up rescheduling out only to reschedule in and then may be to reschedule out again. And we're probably getting really frustrated with MRP. So let's see where it hurts. Let's go jump into SAP. So we're going to look at this material right here as an example. Now first things to call out in terms of the planning scenario, we've got some quantity of inventory available, we have a higher safety stock than we have available, so we're already negative and we also have some forecast sitting at the beginning of the month. Now further on, MRP has generated some supply proposals and they've been converted into purchase orders. We have one satisfying, some near term demand. And with another out in early September to generate and look at the 1st of August requirements. Now what we can see here is we already have an exception message on it, which is saying, and that's the system telling us, Hey, can you please bring it in, in line with the requirement on the 1st of August? Now, here's the dilemma as a planner. We know we are towards the end of August already, it's now the 25th, and with the forecast sitting at the beginning of the month, we need to toss up whether or not that forecast is going to be consumed or realized in the remaining six days. What's the alternative? We spend a lot of time working with the supplier to try and expedite only for that material to not be required in these same quantities. So let's play that scenario out. If we handle this exception message exactly as it says right now, okay reschedule into the 1st, we can't bring material in in the past, so let's bring it in as quickly as we can and say maybe we can expedite it to the 27th. So let's add that in as a confirmation right here. It is an inbound delivery, we're going to do a thousand and the delivery date's going to be the 27th of the month. Continue through the warning messages and get to my main screen. Now, I've successfully rescheduled that in as early as we can. I've worked back and forth with the supplier. It's still giving me that same exception message because MRP wants it on the 1st, but we know that can't happen. Now, let's play my proposed scenario out. Now we're getting towards the end of the month and as expected, the forecast drops away because our demand team realize that it's not going to be hit. So if we make that change now, I'm going to take out that entry. Let's go ahead and save that and refresh the planning position. Now we've worked tirelessly to bring that through and we've actually got no exception message in the end. So if this was a true scenario to play out, we've worked back and forth with our supplier to try and manage that exception as best as we can, but in the end, it didn't matter because the forecast was there. This happens day in, day out with our procurement proposals based on those exception messages, and so that is the ongoing challenge of having to work backwards and forwards using those exception messages and balance the supply chain with our exceptions generated from MRP. If this seems crazy on our side, imagine what it feels like to our suppliers. We have to stop the churn of change. We have to stop the madness. Yes, POs will need updates. We need to make a meaningful change where it matters, but not just change for change sake. There's only so many times that supply can accommodate us, and if they don't trust our orders, we may not get the best service or our big asks answered. But most importantly, we need to look at why. What is going on in our planning situation that's causing this constant churn, and what can we do to create the stability we're all looking for? Thanks, Liam. You mentioned that the process fatigue of constant changes creates numbness or a lack of awareness of how many touches are required to get through the order cycle, that is worth reflecting on. So again, thanks for the insights. Hey folks, if you want to learn about how to deal with churn and other processes, please check out our video catalog, and if you're struggling to find something, our AI chatbot will be able to help.

P2P

ME55; ME28

Hello to all the supply chain aficionados out there, it's Martin here. And today we're highlighting a solution for control and compliance in SAP. Purchase requisition and purchase order release strategies. This approval process helps to ensure we've got the right governance in place before we send that purchase order out the door and commit to our suppliers. The release strategy behind the approval process needs to be properly designed to be practical, relevant, efficient, compliant, and resilient to the changes of the organization. To break this all down for us today is Sean. Sean, what are the essentials we need to have top of mind around the purchase requisition and purchase order release strategy? Thank you, Martin. So release strategies are meant to drive the right level of scrutiny on the purchase requisition before we commit to it. And we have several opportunities as we move through the procurement process to review and to approve. For example, indirect purchases may come via a purchase requisition that requires approval before a purchase order is generated, particularly if we will be going through an RFQ or an RFP to determine the best source of supply. Whereas a purchase requisition for a direct purchase that came via MRP may not require an approval because we've already approved the demand plan through the sales and operations planning process. Now, no matter what the process is, it's essential that the policy and the strategy makes sense, are meaningful and are fully aligned. So let's go into SAP and let's take a look. Let's go in and start with purchase requisitions. Do you review your requisitions for SAP or do they come to you for approval via email. Now, as a buyer or an MRP controller, it's helpful to monitor for past due releases. It's an easy loop in the process where things can get delayed. Especially ifyour approvers are not regularly in SAP, sometimes a bit of chasing is required. So in this transaction, I have loads of selection options to choose from. This ME55, which allows me to pull full lists. The only mandatory entry is the release code. And from here I can narrow the list in any way I wish to see the items that are relevant to the work I'm doing today. Okay, so let's run this. Here are a few things worth talking about. Firstly, we can quickly identify purchase requisitions that have a material number versus those that are free text or indirect purchasing PO's, spend PO's. The free text spend that should have meaningful material group assigned to it, and that material group should help set the requirements for approval before release, right? Secondly, we can also quickly identify purchase requisitions that do have material numbers that were manually entered. There's also good candidates for release strategy. We want to get MRP working to generate the lion share of our direct purchases and where it's not, that's worthy of scrutiny. Now, number three, we also have those purchase requisitions that have a material number that were generated by MRP. Now, the majority of these should not require approval, if, of course we have a sales and operations plan in place, and the proper master data rules. We want to work away from those approvals at execution and rather approve our demand and supporting plan for that supply through the sales and operations planning forums. So it's important to set the approval thresholds based on the type of purchase and also at the right stage. So for example, if we've been difficult to find a reliable source, a requisition may route to someone in strategic sourcing to review it and qualify that source before we place the purchase order. If on the other hand, we're just getting started with MPR, or we're maturing in our S&OP process, then we may have an approval at the purchase order stage for high dollar value items and they're at the beginning of their lifecycle. So those two options, either high value dollar value or may at the beginning or the end of their lifecycle. And we can see the list of purchase orders pending approval in this very similar list display right here. The release strategy for procurement can also apply to outline agreements such as a contract, which lessens the day-to-day approval process for PO's and calls off from the contract. The good news is that the process is robust, it's highly accommodating for complex business needs, but should flow, make sense, and of course be meaningful . Alright, so after that demo, let's now take a moment to acknowledge there are plenty of release strategies out there that do not drive any real scrutiny to the pending purchase. And I'd like to challenge you to take a good look at yours and make sure that what's flowing to leaders is meaningful. We don't want the important approval to get missed. In a sea of all these ticking the box approvals. Today, we talked a bit of how we would recommend approaching requisitions via MRP versus a person. We also recommended regular review of your strategies to make sure that you have the right levels of approval in place. Finally, folks, it's very important that leadership is brought into the strategy in a timely way to give the approvals and we ask the right questions to keep those approvals meaningful and productive. Thank you, sir. An important control to have in place with the right level of diligence. We want to focus on the things that require a check and approve and make the process an active one. Hey folks, if you are looking for more videos related to control and approval, please check out our video catalog and if you have a specific question for us, submit it below.

MM; PP; SD; DM

MD04; MD05

Hey folks, welcome to the video service that unlocks and reveals the hidden value in your SAP system. So we know the best way to learn by doing, so let's get cracking on this video. We're going to be discussing an effective feature available in MRP list and stock requirements list, and it's called the periodic totals. Yes, ladies and gentlemen, clicking on that green sigma button will take you to a place that's very useful. Kristie, tell us more about periodic totals. Well Martin, sometimes it's nice to take a peek at the forest and not just the trees. It can be a super useful way to look at what's happening at the day, week, or even month level. There's some great intel we can glean from these rolls up. But you don't have to take my word for it, we're going to go in and take a tour. We'll go see where to access the periodic totals. Review the information that lives there. And then provide some solid examples of where this functionality can be really helpful. Let's plant some seeds to get your minds churning. All right, let's get in and take a look around at periodic totals. You can see here I'm in the stock requirements list. Now you can get to this similarly in the MRP list as well for those of you who are still running classic MRP. But bear in mind your MRP list is static as of the last time the MRP run occurred versus your stock requirements list or MD04 is dynamic as of the moment that you entered it or when you last hit your refresh button. And this is the way that most of us are used to looking at our planning situation, right, so it's date by date, requirement by requirement, element by element. But sometimes it's really helpful, especially if you are having a conversation around a recovery situation or when you're expecting to be caught up in back and balance. If you just need to get a really quick rough cut look, it can be very helpful to roll this up to periodic totals. And the way that we do that is actually by clicking on this little guy right here. So see this little green sigma button? When I click on that, it's going to give me some different options for how I might want to look at this. Now I can go ahead and click on this, and here you'll see we've got these different options, so we can look at it day by day, so it's going to accumulate our forecast, planned independent requirements, our requirements, so our actual sales orders, deliveries, etc. And then our receipts, so what we plan to have in terms of replenishment and then it will calculate for us our available quantity, so what is it that we expect to have available in order to be able to serve the customer. And then over here, you're going to see the actual coverage which is what we intend to have in terms of the number of days of supply, so it's calculating that out for us. And we can look at this on a day by day, a week by week or a month by month basis. So I'm going to go ahead and switch over to the week accumulations that we can see that now it's getting a little easier to see right what those actual balances are and then I can even come up to month and what I love about week and month is that as we look at the planned independent requirements, we can start to think about that as our remaining available to sell so what do we expect to still have coming in, in terms of sales orders or deliveries or other customer requirements, stock transfer orders? What else is out there that is going to come in and consume that forecast that we need to adjust for? Or, if we're planning to that forecast, irrespective of our requirements, what is it that we still anticipate needing to serve? So, open balance remaining to sell, requirements that we have in hand. How much we are expecting to receive. So, you can see here, let's do the math, we are expecting to receive, we have 0 available right now, we have 6 pieces that we are expecting to receive, we have 2 pieces of requirements already on hand, so our balance at the end of the week is 4 pieces. Okay, and then if we come down here, same thing, no additional requirements for this week, we have 11 additional pieces planned to come in, so we have 15 pieces available. Coming down a little bit more, we have 17 pieces planned to go out the door, we have no more coming in, so 17 deducted from 15 gives us a negative 2, which gives us an actual coverage of a negative 14 here. And if you come down even a little bit further, now we have our expected available to sell for these weeks, so we're still expecting to get some additional demand in and again, we don't get caught up really until a few weeks from now. So assuming that today was week 43, really our first full recovery is not until week 51, and so this would be a planning situation that we can then go in and start to work. Now if you have dynamic safety stock or coverage profile in place, your view here will look different. You'll have some additional columns because you're trying to react and respond to that safety stock. In our case here, we do have a safety stock in place and I'll show you that in just a moment, I'll just flip over real quick here to seeing that accumulation by month, so you can see what your end of period balances should look like as you go through and out across the different months. And if you're ever not sure about what something means, you can come in here and you can hit your F1 key and it will bring up the definitions for you so that you can see very specifically what is going on here. So your actual range of coverage in this case is in days versus the other pieces of information that we are looking at are in units, and then you can read a little bit more to understand exactly how the system is calculating that for you. So again, that is going to be the F1 key on your keyboard. So the difference here is ATP quantity versus your days of coverage. Now to go back to what we're normally looking at here, all I have to do is click on the puzzle pieces, I'm going to switch to our individual lines and here again is that safety stock, so the 24 pieces that's netting out our current inventory on hand. So we are reliant on this additional production order for us to be able to supply and you'll see we also have some exception messages here that we need to take care of. But sometimes it's very helpful, especially if you have a very active product, to be able to quickly go in and do that roll up and look at it either accumulated at the day, week, or month level, and really depending on how your forecast split is happening that weekly or monthly can be very, very helpful in terms of seeing what your remaining balance available to sell is. It's also a good way if you're working with some of your counterparts, maybe in customer service or sales support, to be able to give them an idea of what that recovery period looks like and that also is accounting for your lead times. Okay everyone, now we're up to speed on this little piece of functionality that can be so helpful at getting a quick look at how supply is serving demand. We're all on the same page with where to find the periodic totals. What the options are for totaling the requirements, and receipts by period, and the expected available to promise for that period. We also chatted through some context around this information and when it can be the most useful. The hope is that this gives you enough information to start thinking through how we might use this piece of functionality in your day to day life. Back over to you Martin. Awesome, Kristie. I can see how periodic totals can be of help. An actual matter of fact, we probably have to take a step back every now and then and just kind of rise above the chaos of the day and kind of assess our problem to see if it's a persistent one. This in combination with forward looking green graphs can be actually very powerful. So once again, thank you and good stuff. So folks, if you want to know more about this and maybe even about the green graph I just mentioned, please check out our other videos and of course if you have a particular question please submit it below.

WM

MM02; LX04

Hey folks, welcome to the video service that reveals and unlocks the hidden value in your SAP system. Hi, Martin here. In this video, we're going to cover picking areas in warehouse and discuss how this feature can be used to strategically group or batch materials needed to be picked. Steve, I'm already thinking of the potential ways this might be helpful, but I'm sure you're going to show us a lot more. Take it away. Sure thing Martin. Think of picking areas as the twin to storage sections, but instead of being used to group materials for put away, picking areas are used to group materials for stock removal. The beauty of this feature is that it can be used in a variety of ways to improve efficiency, prevent injuries, and materials from being damaged. I'm personally a huge fan of picking areas and will touch on a few success stories in the demo and how I utilize them and the benefits that we received in our warehouse. I know the anticipation is probably killing you. So let's jump right into SAP where I'll demonstrate. How this works. Propose a few ideas on how you may use these in your environment. Picking areas are a special field, similar to a fixed bin status. So you would have to go into the material master, in this case, we'll just go to MM03. We'll go for a material 100-600 here. We're going to go to our two favorite WM tabs, WM1, WM2, and why I mean, it's similar to a fixed bin storage type is you have to enter the storage type here in order for that pick area field to be populated on the WM2 tab. So we'll go ahead and enter 001, and we'll go and enter D02 for this material. Okay it defaulted to my WM1 tab. The pick area for this part is actually going to live here, so because we entered storage type D02, here's our picking area field. So in this case this material is looking for a pick area, so a separate release by the storage type of D02. So that way we can queue it with anything to be picked for any specific reason, whether it's a heavy material, velocity, so on and so forth. Then on the actual bins, it's going to look for any of those materials that are eligible. So you could easily search for any pick areas, we'll go to LX02, we'll run LX02 wide open and a field that you're gonna have to bring in that you could see all the, it's actually towards the bottom here, you have your picking area, bring that over to our basic LX02 list, now it's going to be over to the right and you can see our last field here is by picking area, so you can do a sort of all the bins that are eligible by pick area. So in this case, there's 3 bins assigned to this pick area. So if these orders were picked, it will then queue these, this material 100-300, and it's going to release these separately based on this D02 picking area. So again, the best case is going to be if you have multiples of these or many parts in there that you want grouped separately. But the way to do it is going to be to identify those in a storage type, enter your storage type in your material master in the WM2 tab, and then that way those parts will be released and treated differently from a pick area perspective. Welcome back. In this demo. We've covered how picking areas work. And discussed a few different ways they can be used. I challenge you to utilize this functionality in some of the ways that I did, because the outcome and benefits are absolutely tremendous. Man, you've made me a fan too, Steve, thank you. What an excellent feature and great examples you covered in explaining how these work, and specifically how it worked for you in your warehouse. So folks, if you want to learn more about warehouse management or other features that SAP can provide for you to help you, please feel free to check out our other videos, and of course if you have a particular question or even a recommendation, please submit it below.

PP; PTM

MDVP

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin and in this video we will focus on how to take advantage of SAP's material availability checking for planned orders. When used correctly planned order material availability check help organizations do real-time checks on the availability of materials at the planned order level. From a production perspective this is the first time to really see if the materials you may need are available for future production runs. Eacliffe, why don't you tell us a little bit more about this availability checking for planned orders? Sure Martin. Planned orders ATP Check is a powerful feature when used correctly to determine if the preliminary schedule, let's say two to three weeks out into the future, has any component challenges. In this demonstration I'm going to focus on three things. Why perform planned order ATP check. The scope of check, which demand and supply elements we are taking into consideration when we do the ATP check for the planned orders. And how to perform the ATP check itself for each planned order. The intent here is to use transaction code MDVP to do a collective component ATP check to determine if you have sufficient components to fulfill the latest production schedule. The goal here is to allow only those planned orders with allocated components to be converted into production orders and eventually get released. You decide how far into the future you want to run this transaction for but I would expect it to occur at least days, if not weeks ahead of when you will be releasing or converting that planned order into a production order. So in this particular case, I'm going to run it for Plant 1000 for this material. Typically you would run this from a MRP controller, recognizing that when you are running ATP for the planned orders, you want to do it for all the materials you're responsible for rather than a specific material like I have here and the other key point is down here is where you can then control how far into the future you run this transaction for. So you can specify the date range and that's how you control how far you actually allocate components to the various planned orders you are responsible for. I'm going to run it wide open since I have a small subset of data. So let's execute and here we can see what we are seeing here is the results of running ATP before we can always come here and do a select all and run the ATP check and it will do everything in mass. This is exactly what I did before. What you can see is that the first order is confirmed at 100%. So the goal is to produce 5,000 and 5,000 we are able to do, versus if you come to the second row the intent is to do 12,000, we could do 11,393 which is 95% of the order and you can also see a status here in terms of where the tree represents ATP check was done and it was fully confirmed versus the two means. Yes, it was also done for the second row, but only a partial confirmation was achieved and then the remaining ATP check did run but none of them confirmed because of one or more missing components. Okay, so a couple of things, so what I'm going to do is come in here this planned order, I'm going to click and change order you could also do an ATP check from within a planned order, so instead of doing it a collective processing you could also do individual just in case you made a change to the date and or the timing. You can come in here and run this to see what the revised results are but the one thing I want you to see in here is that for each material there's something called a scope of check. So if I click on this icon, you could see that this check is zero one, this value is derived from the material master of the component. So in this case, here is the component raw material and it has this value assigned to it. So that's how it knows which option to pick and then it says checking rule PP, which in this case applies to the planned order, it says look, when I do an ATP check, for the planned order this is the rule to employ. This combination then derives this information in terms of, hey, which stock to take into consideration. You know, do I want to include safety stock? Typically that would be yes for raw material. So maybe we should have a different setting, for example that also includes safety stock. We may want to include quality stock, in other words, we receive the inventory, but it's still going through quality inspections so why not include that, and then we have these other objects over here, which is, hey, should I be looking at a purchase requisition? I mean, since it's a planned order that we are evaluating it typically it makes sense to include a requisition. But if this was a production order, for example, be it create or release, we would have a different check-in rule and that other check-in rule would exclude a requisition, it would pay more attention to like a firm object like a purchase order. So this is how we then start tightening up the rule as we progress from a planned order to a created production order, to a released production order. Let's come back and take a look at this particular planned order, so I'm going to select this, I'm going to display this order and here we can see one of the things I want to call out is the fact that we have a committed quantity of 5,000. So again this is another level of visibility when we run ATP check, yes, we can see it in that overview that we initially came from, but we can also come within the individual planned order and see how much are we committed for? If I take a look at the component list the required quantity is also listed here, but you can also see the commitment of the components so this is how much inventory has been allocated to this planned order. Okay versus if I came back to this other one here, this other order, and again, I take a look at this and I come to the component overview and here what we can see is, this is what we required this 7,320 this 6,120 but because of limited availability we could only produce the 11,343 and this is how much inventory is needed. So again once you get the proper rules in terms of the scope of check, if you employ that properly and you employ this process properly, doing this type of check in advance to creating a production order, it allows you to have those critical conversations to determine, do I truly need to move that production out or is there a way to expedite some of these components? And you could do this weeks in advance so that there is reduced number of changes to your revised production schedule. So in summary we have covered how planned order ATP Chart allows you to. Understand why we are performing an ATP check on planned orders. Understand the scope of check for the planned orders, basically, which inventory, supply and demand elements are we taking into consideration to perform the check. And how to actually perform the ATP check for planned orders. Thanks Eacliffe. Using this feature effectively can help tremendously in providing the planners with visibility into availability of materials for future production runs. If you want to learn more about ATP or material availability checking, or even other SAP features and functions please check out our video catalog and of course if you have a specific question feel free to submit it below.

PDP

MD04; MM02; MM03

Hey friends in procurement, Martin here. So I'm curious, do your purchase requisitions go through the full planning horizon or do you get purchase requisitions up through lead time and then planned orders after? Do you convert planned orders to requisitions and then requisitions to PO's, or are you getting your requisitions right at the time to set your supplier up for success? Well, that's what we're going to be talking about today. Liam is here to help us understand how MRP knows which element to produce and when. Take it away, Liam. Cheers, Martin. Now we're speaking my language. Let me explain. Today we're going to jump into SAP and look at what MRP is producing and why. Planned orders are up first, as they're often the first element that MRP will generate for us, particularly in the mid to longer term horizon. Then we'll talk purchase requisitions, which officially kick in the procurement cycle. And last but not least, we'll discuss procurement type and its impact on what MRP is doing as we go in and actually run MRP and unpack the results. And bonus, we'll look at one more very important setting that will help us get this right. I love a little tour, so let's dive into SAP, and take a look. So let's take a look at this material right here. As you can see in the near term, we have purchase requisitions created. As we look a bit further out into the medium to long term, we have planned orders created. Now, these have both been created by MRP. We can't see any firming on any of these items, so that means they're not manually created. But how does MRP know when to create a planned order versus when to create a purchase requisition? And the answer's simple. It's all to do with lead time. Now, MRP is very clever. It knows that in order for a purchase order to go out of the door, it first needs to be a requisition. And so in normal circumstances, the requisition will be created automatically on the day that the lead time begins. And that's because MRP assumes that once the purchase requisition is created, it can be converted to a purchase order and sent out the same day. Now in this example, we have something slightly different going on, and I'll show you where that is and what's affecting that. If I jump into the material master and I go to MRP 2 tab, it's all within the scheduling tab. Here we have our planned delivery time of 10 days and our goods receipt processing time of 1 day. So that means 11 days before we need to receive the item, MRP will automatically convert that purchase requisition from the planned order. Now we have another piece of information here, which is actually adding to that time, and it's all based in the schedule margin key. Now we have a 002 entry here. So let's see what that actually means. If I open up the selection criteria, it's going to show me the data that sits behind the entries available. And here we have our 002 tab or option, and the key column we're looking at is the opening period. The entry here shows also 002, and that equates to 2 days. So what we are telling MRP and the system to do is that give us 2 days prior to the beginning of the lead time to process that requisition. So MRP will create or automatically convert the planned order to a purchase requisition 2 days before the start of the lead time. This is useful for several reasons. It allows us to complete any approval activities. Maybe there's some additional sourcing or pricing checks that we need to do with our suppliers. But if we look at some of the other entries here, we have lots of other options as well. So if we think about the first option, 000, we have no opening period, and that means , at the very beginning of the lead time, MRP will convert that planned order into a purchase requisition automatically. Our next entry gives us a little bit more time. So here it's saying 10 days, and this might be if it's a new product, we need to source the supply from a specific supplier that we haven't introduced ourselves to yet, and we need to get pricing agreed terms and all of the other contractual obligations. And finally, we have a really long opening period, and this last entry, 090, that's given us 90 days ahead of the lead time, MRP will convert that planned order into a requisition. Now this fits another scenario where maybe you may need to open up a tender operation or it's for a large piece of work where very specialist materials are required. And that just gives us enough time to completely source price and build out that requisition so that at the beginning of the lead time, we are ready to convert it straight away into a purchase order and get it out the door to the supplier. Now, if I leave that as a 002 entry, I'm going to go back to my main screen, and that is why we have the planned orders out into October, and then in the near term for deliveries, at the beginning or second week of September, we have purchase requisitions. Now, that's not the only field that affects whether we get a planned order or a purchase requisition. There is one other field which is really important in determining how MRP creates its supply proposals, and that is the special procurement type. I have another material to show you where we have a very special procurement type selected. So if I open up the material master, go to MRP 2, here we have a procurement type X. Now if I open up the dropdowns, I'll show you the options that are available. If it's blank, there's no procurement, no sourcing. If we have an E, we're going to make that material in-house. If it's an F, we're going to buy it from an external source, either stock transport order, or from an external third party supplier. But here we have an X and so we're telling MRP and the system, hey, we can procure it in both ways. We can both make it internally and also procure it externally. So then how does MRP behave when it has this entry? And the answer is it creates planned orders for all supply proposals . Because we haven't told it a specific reason, whether we want to make it or buy it, it creates a planned order with a very special order type. And if we look at the option when we open up that specific element that we have here, we have both options to convert to production orders and process orders, or we can convert to purchasing related, order types as well, such as purchase requisitions. So here we are given the flexibility to convert either to an external supply or an internal manufacturing process. Welcome back. In today's walkthrough, we explored running MRP with a few different settings. The first was opening period, which controlled the horizon for purchase requisitions. Then we discussed how important the release date is in making sure our PO's are issued on time. We have some other videos on this topic, so be sure to check them out. And then we discussed the fun procurement types and influence of X on the MRP run for those of us who need to make and make slash buy decision on critical items that must be planned with extra care and contemplation. Aha, procurement type X. That's a good topic for a future video. I'd love to see how SAP can help us with that make or buy decision. Getting the right element at the right time so we can focus our work on decision making at the right stages clearly helps us set everyone up for success. Thanks again, Liam. Hey folks, if you want to know more about this or even that procurement type X that we talked about, please check out our video catalog and if you can find it, feel free to use the AI chatbot.

DM; IBP

MD04; MM03

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we're going to focus on something really important, and that is SAP's planning strategies capability. When used correctly, planning strategies can help organization optimize their production planning processes resulting in improved planning, accuracy, and reduced lead times. Kristie, a big topic for sure. How about you take it away? Guess what Martin? Planning strategies represent a powerful feature that will dictate how we will recognize and respond to demand and when used correctly truly help organizations properly balance the investment and capacity, resources, and materials to the demand, and in this demonstration I'm going to focus on three key things. First of all, what are our options for planning strategies and how does that selection look. Where can we find the planning strategy in SAP? And lastly, just a few tips for selecting the planning strategy that meets the needs of your business and the customer. So now what we want to do is go in and actually take a look at the list of planning strategies that are available to us. So where we're going to find this is in the material master. So you can see that I am in here, I'm under MM03 because I just intend to display and I've made my way over to the MRP 3 tab and then you can see that I'm going to come down here to this particular field. This tab is where most of the information around how we are going to respond to demand is going to live and one of the places where we're going to do that is through our planning strategy or our strategy group. So we need to go through for all of our materials and make a determination on whether we are make to stock, meaning we are stocking inventory in advance of receiving a sales order, whether we are make to order, which we're making our inventory and direct response to that particular sales order, or if we are an assemble or finished order means we're stocking at some level of the BOM but we are able to convert within the customer tolerance time. So you can see here that there is quite an extensive list of different planning strategies. In fact, it's difficult to believe that there would be a manufacturing scenario out there where we didn't have a planning strategy that could help us to get us to where we need to be. But as you're thinking about your demand program and how you're flowing information into the system, this is your point of control, so how am I going to react and respond to that demand? How do I remove risk from the demand signal that I'm experiencing and where can I count on that demand and produce even to something like our forecast or to an overall plan. So let's say for example, you were wanting to be in a position to only make to customer order. You might choose something like one of the planning strategies that say make to order production, so something like a 20. Perhaps you are more of a traditional make to stock environment, you might be using something like a strategy 40. If you were an assembled or finished to order, you might be working with a planning strategy 52, where you're stocking at one level of the BOM and then using your forecast in order to be in a position to quickly convert from those raw or semi-finished goods into the finished good all within customer lead time. Maybe you have a particular planning material and you're able to provide a forecast for that particular group but not for the individual and finished goods, you could tie them all together using a planning strategy 63 and even control which planning plan or production plan you're going to be using to divide that demand signal out. These strategy groups are so important, it's one of the two key master data fields that help us to get our plans in place for the material so that we know how we're going to react and respond. It's one of the key points of control and one of our best opportunities to ensure that our manufacturing strategy is in alignment with our customer needs. So as we think also about moving from a push to a pole model this is another area or lever we could focus in and try to make those improvements. But very long list here, you've got 79 options in this case. I'm sure a few less than that, just coming straight out of the box but there is a strategy group for just about any manufacturing scenario for how we want to react and respond to that demand. Definitely an area to explore and a lot of opportunities to work through these and know that it's not a selection just for your overall organization, but this is something that can be evaluated by product, family, or by other levels of the hierarchy and it's tied directly in to your go-to-market strategy. So typically underappreciated, usually folks are using only one or two. So really a lot of opportunity here to diversify your strategy and make sure that you're planning in the right way to meet your customer needs. So in summary we have covered how planning strategies will allow you to be able to. Strategically react and respond to demand. Control your response time to the customer. And empower MRP with the correct information on whether that material should be planned or replenished as make to stock, make to order or assemble or finish to order. Thanks Kristie, that's a big topic for sure. Using this feature allows for an improved picture of and response to demand forecasts, better production planning, and of course increased customer satisfaction. So if you want to learn more about planning strategies and other features in SAP please check our video catalog and if you can find what you're looking for feel free to submit a suggestion below.

PP; PTM

CM01; CM05; CM21; CM25

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, I am Martin, and in this video we will focus on how to take advantage of SAP's planning with infinite capacity capability. When used correctly planning with infinite capacity can help organizations by providing real time information about the capacity and utilization of production resource. Eacliffe how about you tell us a little bit more about infinite capacity planning? Sure Martin. Planning with infinite capacity is a powerful feature when used correctly to identify when manufactured inventory is truly needed. In this demonstration I'm going to focus on three things. One, acknowledge that MRP only takes inventory consideration into consideration and not capacity. Two, highlight the need to evaluate capacity and address any capacity overload situation. And three, understand the implications to component requirement timing when addressing overload situation. The intent here is to review the results from MRP to show that the results works on the premise of working with infinite capacity. So first we're looking at transaction MD04 the stock requirement list. Right now there's one supply element, this plan order, along with some demand elements. Basically we can see the projected inventory level is negative, so when I run MRP it will generate more planned orders. I intentionally kept this planned order here so that we can quickly drill into it, so I'm going to display this plan order, come to the detailed scheduling tab and here we can see work centers, CHEM_PK1 and CHEM_PK2. These are the two work centers the new planned orders will also work with and put capacity requirements against. We could see we have two capacity category 001 machine and ZLB. This one is also sharing 002 so two different type of labor, but from a finite scheduling perspective the emphasis is placed on 001. So with that said, let's take a quick look at, and just to show that there's nothing behind the scene I'm going to do a quick refresh, nothing has changed, so I'm going to go to CM01. So here we have capacity information, again this is the two work centers CHEM_PK1 and if I page down we will then see CHEM_PK2. So let's go back up to CHEM_PK1, we do see some capacity requirements, the point is that it's related to this one planned order and that planned order is the one that I showed on the previous screen, so 75464, if I come here you can see 75464. So that's where that capacity information is coming from. The other thing I want to show is if I go back to CM 01 capacity planning, so let's arrow back, I'm going to double click on this work center, we'll branch us to display mode of the work center, we are going to go to the capacity tab, capacity category 001, which is machine, double click on that and it's taking us to this field here, which says that we are allowed to do finite scheduling on this particular work center. The same holds true for CHEM_PK2again. Again come here, double click on the work center, go to the capacity tab, click on the 001 machine capacity and again we can see it's relevant for finite scheduling. Okay, so with that said, what we are going to do is I'm going to go back to this transaction, the stock requirement list, I have this option here to do single item multi-level, so let's schedule it, we want to make sure we are doing late time scheduling so recognizing that, hit enter. Okay, MRP ran for this finished good, I'm going to do a refresh here and now we see we have planned orders fulfilling the independent requirement. So let's come to the first forecast. Basically what happens is the forecast is for 8,000, 5,000 there was already a planned order, so within net difference is 3,000 so you can see the projected inventory is 0 after it gets consumed by the forecast. Likewise, we could then see there's a planned order for 12,000 to meet the requirement, but I also want you to pay attention to the timing. So here we can see the forecast is dated 3/13 so the supply is on 3/13. The demand here is for 3/20 so the supplier is on 3/20. In other words what has happened is the system or MRP did not take capacity in consideration, its primary and only focus is on meeting the timing of when is that inventory needed. So going back to the capacity planning, what I'm going to do here is I'm going to do a refresh, and by doing the refresh, we can now see from machine capacity we need a lot of additional machine time to meet the requirements of those planned orders. So here we can see look, current week there's only 32 hours left, and then 40, 40 versus 247, 227 . So that's for machine but we also see a similar situation with labor, we need not only a lot of machine time but a lot of labor. So even though we have the indicator set, and again, the focus is on capacity category 001, and it's set for finite scheduling at this point, when we run MRP it does not take capacity into consideration. It instead says, there's infinite capacity and then it leaves it up to the production planner to determine how this gets resolved. Does it get resolved by moving some of the production to another set of work centers or do we source it from another plant or do we go to a vendor? And if I drill down, we can see all the planned orders, so here's the original one 75464 and everything else is new planned orders generated by MRP, saying look, this is when we need to supply the inventory. How you go about achieving that, that's left up to the production planner. Okay, so this results, we would then move it to the next stage of production planning, which most likely involves a graphical planning board because it's there, we can do things like finite scheduling considering this is the current week, next week, and the week after. The only way that this can be achieved is by moving this into the future, which means we then miss the timing of fulfilling that independent requirement. So in summary we have covered how planning with infinite capacity allows you to. Decide when you want to manufacture inventory to fulfill inventory requirement rather than having an automated decision. Evaluate capacity and decide how to address each capacity overload situation. And to understand the implications to component requirement timing when addressing overload situation. Thanks Eacliffe. Using this feature enables more informed decisions about production planning to avoid potential disruptions for sure. So if you'd like to know more about this feature and other features in SAP please feel free to check out our other videos and if you have a question or a suggestion please feel free to submit it below.

DM; PTM

MD04; MM03

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we will focus on how to take advantage of SAP's planning with a planning material capability. When used correctly planning with a planning material can help organizations evaluate the quality of signal and plan at a right level to drive results. Kristie, I know that means a lot, how about you tell us a little bit more? Let me break it down for you Martin. Planning with a planning material is a powerful strategy when used correctly. What it allows us to do is group materials that share a demand stream together and allow the demand for that material to consume the forecasted requirements for the family. In this demonstration I am going to focus on three key things. First of all, where we maintain the master data that supports planning strategy 63 or planning with a planning material. Second, what a material that utilizes planning strategy 63 would look like. And lastly, how the materials that are set up to reference a planning material might be related to one another, or essentially the use case for planning strategy 60. Okay, before I show you this one in the system, I think it's important that I give you a little visual in the definition. So, planning with a planning material and without make to order planning strategy 63, you have to think about this one as a one to many relationship. So it allows you to be in a position to produce many different finished goods. Think about it, if you had a whole family of products that were related to one another, and you needed to tie it back to a single material where you were able to get enough signal to forecast. You may be forecasting that planning material to be in a position to produce a variety of different end items. So if you saw our previous video where we talked a little bit about assemble order, and we were walking through the different levels of BOM's that you could stock at, this is using those same principles, but in addition to that, you have one material where you're placing that signal and many different end items that you may be producing as a result that has some variance in the way that it's finally built out to the customer. Okay, and you get to choose the level of the bill of material, so it's got a common BOM. That level of bill of material that you want to stock at, so you're sending that demand signal through appropriately. This is very, very helpful when you have a lot of variants in terms of the end items, but you have some consistency in terms of the non-variable components that can be in there and consumed by those different end items. So let's do this now, let's go ahead and actually look in SAP and I'll show you where this is maintained. So this is our example here, and again, this is a planning material so customer orders will never come in against this item. It's just getting us set up to drive requirements to the materials that are associated with it. So this is 2087 aptly named planning material, and this is where we're controlling that flow. So we're entering our forecast here and it is generating a planned order, which is going to get transitioned over to the related materials. We're going to go to 2088, which is one of the end items that is related to this planning material, so you can see the dependent requirement, it's handing that demand over here. But nothing is going to happen until we actually have a customer order come in and then that is going to be what will actually drive this. So let me display for you, unless we are choosing to stock at the finished good level, but we can control the level at which we want to stock, let me display for you where these settings are made. And this is going to be on your MRP three view of the material master. And you'll see here we've got the planning strategy is set to 63. Our planning material is 2087 and our planning plant is 3000. So you can even use this across network if you need to, to be able to consolidate, but it's much easier to see the demand and supply generally in the same plant, so easier to plan with when you're first getting started, but as you go, you could start to make this very sophisticated. But then as we think through the bill of material that's related for the non-variable components, we're going to be driving from that in order to be able to convert this into the appropriate end item within that customer's tolerance time. So everything that is related to the replenishment with all the non-variable components is driven by that forecast on the planning material and we control the level of the BOM that we want to stock at and then this finished good as the customer orders are coming in, we'll start to see this tick away and we'll get those planned orders converted into production orders, and then everything made and produced and ready for that customer requirement. Okay, so very, very useful technique to help us to be able to get the demand signal at the right level and maintain flexibility as well as assurance of supply as we're passing those requirements down. So in summary, we have covered how planning with the planning material will allow you to. Think about how your materials are related and if we get a stronger signal when grouped together using a planning material. Maintain a forecast at the planning material level to support several different end items. And support cross location planning, referencing a planning plant. This planning strategy is very specific and may be a little hard to understand, but hopefully this helps to generate some interest and conversation around this helpful planning strategy. Thanks Kristie. This sounds like an excellent way to improve demand forecasting accuracy, signal better production plans and increase our customer satisfaction. So if you want to learn more about planning strategies and your SAP system please feel free to check out our other videos and of course if you have a burning question feel free to submit it below.

P2P; PTM; DM

MD04; MM03

Hey everyone, Martin here. And if you're all about maximizing the ROI in your SAP system, you've come to the right place. In this video, we're going to delve into how we can use the plant specific material status field in the Material Master to align the activities and materials eligible for to through its stages of the product lifecycle. This helps with everything from compliance to making sure that we have the opportunity to run the inventory down at the end. So Sean, I'd love for you to dive into this and tell us more about it. What are some of the key things we should know about the plant specific material status? This is a great topic, Martin, thank you very much. Now folks, the plant specific material status is highly configurable to your organizations needs. It's meant to associate what activities a material is eligible for and where it is in the product life cycle. And it creates for us a high level of visibility if you take time to think through the descriptions. This is how we can know if a material is cleared for takeoff. Or on restriction for planning, for replenishment, or for procurement. And most importantly, know that SAP follows rules and alerts, and if you're trying to perform that activity that a material is not eligible for, it's going to let you know. So let's go in and take a look. Today we're talking about plant specific material status. Now this will be a high level demo, but in doing so, a reminder that material statuses are configurable to the needs of the organization. And what they do is they tell us whether a material is subject to restrictions and what those restrictions are. So let's say there's a material under development or one that's about to be discontinued, we will more than likely need a way to restrict that material, which could be blocked for use in certain business activities by assigning statuses that direct how that's going to happen. So we're going to look inside of SAP as to how this takes place and we will take a look specifically at the material master MRP options . So let's get started and let's take a look at what it looks like in SAP. So here I have a material, what I'm going to do is I'm going to go to the material master and take a look, and you'll notice in this view, this is the MRP1 view, that there's a field here called material status. And so if I open that up, what I see are the restrictions that which have been applied from a material status point of view, and in this case, there are six of them. We see design, we see design and plan, use, phase out, obsolete, and then there's one to block our BOM header items as well. So those are the restrictions that are currently in place. Now, looking inside of that, just to get a view for setting the rules as we go, what we do is get a view behind the scenes as to what's happening inside of the configuration. So here's our material master, and I'm going to again take a look at what that looks like. And now I get the same six areas in terms of these descriptions that I see on the right hand side. This was the drop down, remember, from the material status piece that we saw in MRP 1. And if I wanted to look at what happens here, I can look under design. What are the details behind that? And this is an interesting piece because we spoke about blocking certain things or not allowing certain things to happen. So from a purchasing management point of view, what's the messaging we're going to get if we want to buy something or purchase something while it's in the design phase? And you'll notice there's a B, and if I just bring those dropdowns for you, there were three options. If it was blank, there'd be no message at all. It'd be go ahead, do as you need to. If it was an A, it would give me a message, a warning that would say, look this is still in the design phase, so here's a warning, you may not want to do this. Or as is currently the case, it's a B and that B says it's going to give me an error and it will not allow me to do any purchasing based on something that's still in the design phase. The same can be said for manufacturing. So if I come down to this piece of the puzzle under production, I'll notice here that I also have a B. So it's also going to block me, it's not going to allow me to do anything from a production point of view, it's going to hold back as far as that's concerned. And so these are really interesting and important pieces that this is where we set the rules that is going to help us guide. If I went into the use phase, if I look in the use, what I'm going to see is that it's all open. Once this material is in use, it's free, we can purchase, we can put out RFPs, we can do production, etc. So that's how the rule set works. By contrast, if we got down to an obsolete place and we look at what does the obsolete look like, I'm now going to just see that I've got this B everywhere. So whether it's purchasing, whether it's bills and materials, whether it's routings, whether it is the material requirements, whether it's production, the B is indicating to me, as I showed you earlier on, that it is going to give us an error message. In other words, it's going to block us from actually going down and continuing with that. So this is where the power of the material status comes into play in terms of creating restrictions and not allowing us to continue in that space because we've set up the rules, and we can see as we track back here through the configuration process, we're setting up the rules to say, please make sure that we actually block things at this stage of the puzzle, and we don't want to make it go forward as far as these are concerned. So that's the first area where we're able to put those restrictions in place. It's in terms of the material master inside of MRP. Okay folks, let's review the so what of this powerful field found in the MRP 1 tab of the material master. First of all, well constructed statuses show a clear progression that matches how a material might move through its lifecycle with some accommodation for things that could come up and that would require temporary restriction. The fields we're discussing today is at plant level, which can be helpful if status change and may need to be done differently by either plant or by country. Now most importantly, while this field is great to support reporting, it is an operational field that's meant to have teeth and assist the MRP controller in their planning and replenishment processes. And then the warehouse team in moving the inventory through the process. Thank you, Sean. This of course sounds super valuable and an opportunity that one of many organizations should spend time thinking through and getting right. So folks, as always, please check out our video catalog and if you have a specific comment, please submit it below.

P2P; PTM; DM

MC.9

Welcome to the ultimate guide to maximizing your SAP system. I'm Martin and today's video, we're going to help you unlock some of the functionalities you didn't even know existed. So shall we? Okay. In this video, we're going to take a look at some of the red line graphs and see what they can tell us about a material's history. I'm very pleased to say that we have a special treat today, none other than Sean Elliffe. He is a man that knows how to tell a story, so I cannot wait to hear him articulate some of the examples for us. Sean, take it away. Well Martin, we have action, we have adventure, we have surprises at every twist and turn and we are going to go in and see if these materials are predictable or if they're unpredictable. You know what the biggest surprise is? When we feel like an item is completely out of control and then we take a real look and find the consumption is actually pretty steady. So let's get in and take a look, see what the story is. I'll also highlight what we can and cannot determine from the visual that we're looking at. It's fun to imagine what the story may be, but we do not want to assume facts that are not actually evident. So let's go in and take a look. Welcome to the demo on predictability and unpredictability. Now, I ran my inventory report and found a few materials worth considering. I chose raw material and two finished goods and I based that on an analysis of key figures, such as the number of times that we've been issuing these materials over the period, against the average inventory value over the same period. Let's take a look graphically at these materials. So the first is then the raw material, let's start there and we're going to go and take a look at what does this look like graphically. And surprise! Look at that, wow! It really is a nice looking graph. You know what I'm going to do? I'm just going to change up the size of those lines a little bit so it is even clearer and we can what a wonderful looking graph, but what does this tell us? First, it looks like the activity is contained in a pretty consistent band. From the top to the bottom. If we look at all of these top to bottom, pretty consistent band, and we call that process deviation, and that consistency is the first good sign of predictability. The next thing we look at is what we call the consumption lines. Now, if you take these lines, the downward lines, all of these downward lines are consumption, where we are using material, consuming it, and looking at those, they actually look to be fairly parallel, pretty much parallel to one another, that's what they look like. And that parallel line between them gives us a second indication that we have a predictable material. Now there's some other indications in here, let's call them facts without evidence. We could call on what is our average inventory and it looks to be somewhere running through there close enough to about 30,000 kilograms. And what is the lowest point? So the lowest point over the period is this here, and that is known as our dead stock. And our dead stock here running around about. 13,000 kilos. Now, these are important pointers for inventory analysis and they're going to be covered in other videos. But let's look then at what is the final sign of predictability, and so for that let me come out of here and what I'm going to do now is I'm going to go to what's known as my receipts and issues diagram. Oh voila! Look at that. And what this is telling me is if I take a look at the receipts against the issues, and we'll open up the legend so we can see what that looks like. The green line are the accumulated issues and the blue line there are the accumulated receipts over time. And we're seeing two things here. One, they're tracking pretty close to one another. And that's a good sign where receipts and issues are very close and almost equal to one another. The second sign we see is that the line that they are tapering upwards is around about 45 degrees, and those two key pointers indicate predictability. So as a result, I would argue that this particular material has a high level of predictability and is really one that could go into an automation process quite easily, but a high level of predictability from that. Okay, let's take a look then at our second material, which is a finished good, and once again, we're going to go and take a look at the stock level and say, Oh, this looks a little different. And we'll do that same little trick that we looked at early on and change the width of those lines. All right, that gives us a much better picture. And so as we look at this and change that scale, the result is that we can see from the analysis, there's a large range and if I just give it to you off the top in terms of dollars this time instead of kilos, this high point here down to this low point here is a range of about $300,000 here to about $10,000 here at the low end and that is a significant process deviation from top to bottom and so at first glance that might look as being an unpredictable material because of this huge process deviation that we have. But it also raises some questions that require further evidence. Are we producing to plan? Are we changing constantly as we go ? Let's look at our lowest inventory point of the analysis, which is this one down here. It in fact, gives us a false sense of the read on deadstock, which as we go forward is actually climbing because as our averages go up and this space below, it's starting to show that deadstock is rising as we go. So we get these other nuances that we can start to look at. But looking at those instances, we also see lot sizes that are produced and if we look in this space here, we can see these lot sizes were pretty much consistent. There was another space there. Here's another space. And here's a third place where we're looking like they were running pretty consistently. And those consumption lines by the same token from our earlier conversation are showing some form of consistencies and there are some parallel dynamics against it. So once again, we want to go and say, okay I'm still not a hundred percent sure Let's go and do our final check then as to what that might look like and we're going to look again at our receipts and our issues diagram and what does that look like? Oh, well, look at that. So now if we put our legend in again, we start to see the green line is accumulated issues and the blue line is accumulated receipts. Now, we do start to see semblances of that 45 degree angle of the lines, which talks about predictability. But what we are seeing here is that once we look a bit further into it, we see that the gap between the two is getting wider. And that gap suggests that we are, in this case, bringing in way more than we are actually using. So our receipts are outstripping our issues. In and around that, we still have a good argument that there is predictability here that we can work with. And if we can take that predictability and optimize this material, I think we'd be in a good position. But I would argue in this case here that there is still a good semblance of predictability that we can see on this particular material. Okay, so with that said, let's go back and let's take a look at the final example that we have. And we'll follow the same process. Let's go down and take a look at what we have. Oh, this looks a bit higgledy piggledy, it looks like it's all over the show, right? So let's again, adjust that width so that we can see those lines a little bit more clearer. And what we also noticed is that we did have a stock out at a point here, but it's pretty difficult to start to see whether the downward lines are parallel with one another. And we start to get a sense that this is probably less predictable than we would otherwise think. We're also seeing that the process deviation from top to bottom is fairly wide, it's quite large, and so that noise suggests again that maybe not so good. Maybe it's not quite as predictable as we would imagine. And just looking at this particular graph, I would err on the side of saying, there's less predictability here than would otherwise be the case. So if we follow what we've done thus far, and we go back and we take a look at our receipts and our issues, once again, we get that issue. from a consumption point of view on the issues, that's the green line. There is a little bit of consistency. We can see some predictability with this material. The receipts seem to be all over the show and creating gaps between the two and therefore we're bringing in way more than we need but from a consumption point of view, it looks like that consumption is a lot more consistent. And so for us, the challenge is inconsistency on the supply side, which is the receipts but that needs to be tightened up for us to get to an optimized space at the end of the day. And so folks getting to grips with visibility on what is predictable and what is not will position us to better optimize our inventory and help our organizations as they go on the quest to free up working capital. What a fun demo. There's no doubt that a picture is worth a thousand words and being able to rally around a visual is immensely helpful to critical thinking and to problem solving. These graphs offer us an opportunity to be curious and investigate further to truly understand the story. And then when we're well armed, and particularly if we've had a surprise twist, and the material does have predictable consumption, We can focus on taking control and smoothing out the supply. Knowledge is power after all. So let's take the time to explore and understand. Thanks, Sean. Whenever someone says story, I always hope you're one of them to tell it. Thank you for helping us understand the opportunity in this feature and function. All right, folks, if you want to know more about this and hear more stories from Sean, please come back and check out our video catalog and of course, if you have a specific question feel free to submit it below.

P2P; PTM

MD04; ME22N

The best way to learn is by doing so, welcome everybody back to the video series that is not only going to unlock, it's going to expose you to some of the best features in SAP. Martin here. Now just wait a second. Who's trying to hit snooze on their exception? Uh oh. I really don't think I'm going to like this topic. We can't just hit snooze, can we, Liam? Take it away. Thanks Martin. I personally love a good snooze. Just five more minutes. We often get asked if we can clear an exception message and make it go away once we've reviewed it. Well, for those of you on ECC or running classic MRP and S/4, yes you can sort of do this, but even if you do, it doesn't go away, and this feature has gone away in our new S/4 world. MRP is relentless in trying to supply the demand. Demand is king and it'll shout at us if we're not aligned. So what we need to do is work the planning situation, and when we've done all that we can, we need to make a note. Let me show you what I'm talking about. Let's dive into SAP and take a look. So here we have a material with a couple of exception messages on it. Firstly, we have a safety stock violation, so we are already negative straight out the gate. But we still have some inventory there, so although we want to try and get out of there as quickly as possible, we still have some material on hand to fulfill some of our obligations. Nevertheless, MRP has done its job, it's proposed some supply proposals, and we've converted those into purchase orders. But guess what? They're still going to be behind. Mainly because of this demand, right in the 1st of the month, and so this purchase order is asking, Hey, can you bring it in earlier? And then secondly, we had this purchase order here, which is set for the 10th of September, but we actually need it today in line with our safety stock. Now, what's the options here? We can try and work with the supplier as much as possible, but guess what it looks like we already have. We have shipping notifications against these purchase orders, and if we have a look at those as well, they're down as inbound delivery confirmations, meaning that they are probably on the water in transit, or most certainly imminently on their way and cannot be changed. So we are pretty stuck right now and we cannot improve the planning situation in any way. Our first point of call really, is to work with our counterparts in a manufacturing department to try and navigate these demand elements that are now going to be overdue by a couple of weeks. Secondly, we can add a note. We've worked the situation as much as we can, and there's nothing else we can do to influence this anymore, apart from adding a note. So anybody looking this material again, gets an idea of what the situation is. And the way we add a note is specifically on an individual material and it's using the notes button attached. Once I have my notes here, I can add in a quick text. I'm going to write my username first, the date, and then my note. Tried to work with the supplier to improve the date, but the goods have already been goods issued. I'll go ahead and save that, and now if I green arrow back, we should see my note has appeared in this line here. All is well and good, and the next person that looks at this material will figure out that there is a note there. It's timestamped and username stamped, and they can see the further information there. So even though we couldn't do anything to improve the planning or supply situation for this material, what we could do is add a note and that adds up further information for future reference. Okay, confession time. We've had clients that have hidden exception messages. That's not even snoozing, that's hiding from the truth. We do want to have all of our exception messages active and when we have an exception message that we've dealt with but continues to linger, it's probably worth a relook to make sure nothing else has changed there and no other options we can pursue or colleagues we need to notify. It's important to revisit because if there is a new opportunity for improving that planning situation, which improves our service levels, we do not want to be caught snoozing. No, we do not. I know it can be tempting to snooze and move on when you see a message that can't be handled in that moment, but the power of exception message is in the awareness, the conversation, and the actions. It's all three, and unfortunately, it's a slippery slope of apathy. Let's rather get good relevant exceptions by driving the right rules and quality plans in SAP. Then we won't be so inclined to hit this snooze. Hey folks, exception management's a really critical topic and we actually have quite a lot of messages and videos on this. So please check out our catalog and of course, if you have a specific question that relates to this topic or others, submit it below.

MM

ME12; ME32K

Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, Martin here, and in this video we're going to focus on how to determine if that price break is really a good deal, using standard information for decision making directly in SAP. How do we know if we're really getting a good deal? As we know, the best way to learn is by doing so Kristie tell us how we're going to analyze the quality of that data in SAP to determine if that's a good deal or not. Oh boy, this is a great one. I had a friend in college who always bought a lot of what was on sale because he was actually always "saving money". Whether he needed that great deal item or not. Let me tell you, even canned goods eventually expire. Sometimes volume discounts make a ton of sense, and other times that seemingly good deal, well, it just really isn't a good deal. Now in terms of total cost, in today's demo. I am going to highlight a few key stats easily available in SAP to help evaluate the quality of that price break. How that price break should be maintained. And some options for potential negotiations to make that break work for you. So what happens when you get a quote back from your supplier and they are offering you some price breaks based on volume discounts? Well, we want to make sure that we have the opportunity to capitalize on that and at the same time we don't want to over purchase because what that can result in is dead stock, so inventory that is sitting there, not turning, not being used well in our process and sometimes even what we call slow moving or even excess or obsolete stock within your own organization based on your definitions. We don't want that. We do want to make sure though that we are taking full advantage of the pricing. So here's a couple of different options for you. First of all, I'm going to talk a little bit about what not to do. So oftentimes when we get price breaks back, the temptation is to do one of two things. It's to come in here and it's to set this minimum order quantity based on what you think that the best price is from your supplier. So let's say the supplier said, hey at 500 units you now get a lower price. You come in here and you go, okay, I think that you know $2.22 is really the most I would want to pay for this particular item. So I'm going to go ahead and set the minimum order quantity here. So what I do like about that is that you're providing a specific quantity. Never cover your lot sizes or your minimums that you're going for with periodic lot sizes. Meaning, if you think that your average usage per month is 1,200 units, don't set your lot size key to be a 4 week lot size because what if your demand changes? Then you're not getting, you're not necessarily achieving what it is that you were trying to from a discount perspective, and it's really hard to see and understand what that quantity is. So, make sure your minimums are your minimums. So, what is the smallest lot size that you would purchase from that supplier? And then also consider your rounding value, and then consider how frequently you have the opportunity to place orders and receive shipments from that supplier, and sometimes you may even have something like a fixed lot size that you're adhering to, or you could have a maximum lot size that you are adhering to. So make sure that we set this up properly. This section, this lot size data section is frequently underutilized, so make sure that you take advantage of that. The other thing is, if you are able to negotiate with your supplier so that you can get your volume discounts over time, another great alternative is an outline agreement. So something like a scheduling agreement or even a contract. So you can see here this is the same item, this flywheel and we have a contract that has been set up. What you'll note is as I select this item and I go into our item conditions, we have some conditions out here and you'll see here there's a little tick box that says scales. What this means is that there are price scales for this item. So there is a price per 1, but then there are also additional prices as we increase the quantities that we are procuring. And when we set this up, you can see here if I buy 1 I pay $45, if I buy 40 I pay $40, and if I buy 80 or more, then I'm getting $35. So I can go in here and manage this and you'll notice that the validity period here goes out quite a ways, but the contract has a validity period that goes through February 25th of 2023, so it's going to be governed by that overall document. What we want to make sure of is that then we are referencing this contract in our source list and every time we buy, it is looking here to see what those price breaks are so we're able to accumulate across time. Same thing with our scheduling agreements. We can also make sure that we are getting our price breaks there, and this allows us to bring in material at the rate that we need it and still accumulate our volumes so that we are able to get those price breaks where appropriate. So, as you're placing your orders, ensuring that you don't have to go and manually remember or key in, oh, this order is for 40, so it should be $40, or this order is for 120 and it should be $35. It will automatically reference the scales that are associated with the contract and every time you go in and you place that purchase order, it will read the correct value for you. So, this allows you to have multiple price breaks and be able to reference them accordingly as you are calling off those documents. And, there are a ton of different scale types that will allow you to model the price strategy that you're experiencing with your supplier, so you can get more creative with your negotiations so that you're able to go in and make that happen. So, really awesome ways to do this without just saying, I want to go for this economic order quantity and not be able to adjust that based on changes in your demand. If you are going to do something like that and enter an economic lot size in, you must review it regularly to ensure that that value still make sense, and the best way to do that is to look at what your consumption history has been through MC42 or look at your requirements going forward through MC43 and we cover those transactions in a variety of other videos. So, make sure it's a good deal, don't overpurchase and use outline agreements to help you to make sure that you're getting the right price based on those purchase orders each time you place an order with that supplier. So in summary, we have covered how to. Quality check the value of that volume discount. Properly planned for the discount. And some options or alternatives for how you might set the rules in place to capitalize on that quality buy without unplanned purchases or relying on manual intervention. Thank you, Kristie. No one wants to be your friend from university who took advantage of what turned out to be not such a good buy. But however, this is a serious concern. We want to negotiate great deals but we also want to make sure these deals work for us. Allowing SAP help to analyze and then apply the rules for those purchases is a huge help in making the right decisions in consideration of the total cost of ownership. So if you'd like to know more about this particular topic or any other topics in SAP about how to utilize SAP better, please feel free to check out the video library.

P2P

ME22N; MD04

Hi there, it's Martin again, and I'm quite curious to ask, how do you know if your suppliers have received your purchase order? How do you know if they've accepted the price, the delivery date, or even the terms? How do you know if they need to make a change to the date or quantity being delivered? For many of the folks we work with, the answer is quite simply, I got an email or I don't know. Some people even have robust collaboration tools that support this process that may or may not be able to flow the data back into SAP. Today, we want to explore how we can get better communication flowing with our suppliers and more timely information to our buyers so they can make a promise and keep a promise. Here to talk us through this one is one of our best communicators, Jen. Jen, can you help us understand how we can efficiently process acknowledgements and updates from our suppliers? Message received Martin. I'd love to help make the communication flow in SAP. Today we're going to look at the options for order acknowledgements. This is a supplier acknowledging that they have received and accepted the PO. We'll look at where this information is stored in a standard PO. We'll then talk about what happens if your supplier responds with a date change a change in quantity or even split shipment. You have options for how you can choose to use this information and whether you accept it or not. No matter what we do want to see the information in SAP, so we have the history of the updates, requests, and acceptances or denials. Let's jump right in. One of our strongest areas of focus on Reveal TV is setting ourselves and our partners up for success. Encouraging proactive communication with our suppliers, get the collaboration flowing. If we've written a PO with all the right rules in place, then most of the time our PO should be easily accepted. However, it would be good to know for sure and not to have to dig around in an email to confirm. So here we are, in ME229. This is a purchase order that we place with all the right rules in place, the supplier has come back and acknowledged the PO. An order acknowledgement is a type of PO confirmation. PO confirmations are configurable and use different types to suit different communications over the life of the PO line item. Some of us have very long lead times and a lot can happen in 90 or a 100 days. And yes, some of you have lead times that are much, much longer. Here's the basics. We send the PO to the supplier. The supplier acknowledges that it has been received and accepted. Great time marches on, the supplier has an update on availability. They send back a notice letting us know that we'll get part of the requested quantity on time, but part of it will be late by two weeks. We can record this update in SAP. See there. They can let us know when it's on its way to us through different confirmation types, and we can create an inbound delivery from that ASN. My friend Rutul made a video on that topic, check it out. So what happens if we get acknowledgement or notice of change that's different from what we ordered? Well, then we have some options. First of all, we need to decide if that supplier is reliable in the information they provided. If so, we could use a confirmation type that is MRP relevant. Meaning that the rest of the integrated team would know what the new date, and we get exceptions if the new date poses a problem, so we respond and work with the supplier. Let's go to MD04 and take a look. The great news is that supplier performance monitoring stays in place. We can still measure performance versus lead time, or we can choose to adjust our statistical date, and now we can also measure their performance to their confirmed date. They'll allow us to measure if they're both capable to supply and reliable to their promise. Now if you have a lot of lines to manage, you may want to consider how to load order acknowledgements into SAP. This can happen in a variety of ways. They can be delivered via collaboration portal or perhaps via a good old fashioned EDI. Or you could choose to use an upload tool with error handling. There are lots of good options to help get this done. No matter which option you pick, knowing your supplier has the ball and is running with it builds confidence in the way we support our customer. Let's create the visibility we need to make good decisions by having proactive communication channels in place. The order acknowledgement really is a great tool to get closer to your suppliers and encourage the proactive exchange of information. The showstopper for a lot of teams is if they're just getting started and the volume seems impossible to keep up with. It doesn't have to be. There are lots of ways to get this information loaded into the system, and a pilot program supported by the manual maintenance will help the team see the value in the effort. Then you can optimize a process with your suppliers, broaden the program and make it efficient. Let's keep the communication flowing with the effective use of order acknowledgements. Hey, thank you, Jen. Well communicated. No one wants to get to the delivery date and realize the supplier doesn't even have the order open on their end. And this functionality can also tie into other processes like reminders, exception monitoring for missing parts, late confirmations, or delivery advanced shipping notifications. All of these are powerful things that we need to consider. So folks, if you want to learn more about some of these things I just itemized and listed out, please check out our video catalog if you can't find them, ask the AI chatbot.

P2P

ME2M; ME22N

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin and in this video we're going to focus on how to take advantage of SAP's purchase order management capability. When used correctly, purchase order management can help an organization stay current on the status of open orders. This is critical for success when making promises to customers and of course to the manufacturing floor. Kristie, share with us some knowledge about that. Sure Martin. Purchase order management for overdue purchase orders is a powerful feature when used correctly and in this demonstration I'm going to focus on three things. First, how do we find overdue purchase orders? Second, what should we consider in how we should resolve these overdue purchase orders? And lastly, what is the value and impact to MRP when we are able to keep our dates up to date and what happens when we don't keep them up to date? Erosion of the quality of our planning. All right, let's go into the system and talk through some PO management. So in a couple of our other videos we've gone through how to find overdue MRP elements. So in this case, purchase orders through using the exception monitoring tools, so things like MD07 or MD06. In this case, we're actually going to go into a list display to identify purchase orders that are past due, and then we'll talk a little bit about some of the date maintenance that can go on in order to be able to help you to manage those purchase orders successfully. And it's really important to maintain your purchase orders with the correct dates because not only does MRP rely on that in order to balance supply and demand but so does ATP or available to promise both to the manufacturing floor, to your affiliate facilities and to your customer. And this is essential that we have the dates in the most correct or accurate fashion possible because without that, the system assumes, SAP will assume that it is coming in any day now it's very hopeful, it lives in a somewhat naive world so it believes any moment that's going to arrive. So our list displays for purchase orders are going to be found under the logistics, materials management, purchasing, purchase order, and then list display. And we may use a wide variety of options here, we could be using everything from an ME80FN to something like an ME2L, or ME2M, or ME2N. Okay and we're just going to go ahead and go in by material for the moment, and for the purposes of our evaluation today, I'm going to choose any purchase orders that have a material number on them, so not equal to blank, and our part of Plant 1000. I could then specify my purchasing group or my purchasing organization, or even a subset of documents here if I wanted to. But the most important selection here for us is really in the selection parameters. So if you look WE101, these are the items that are still open for goods receipt and it's notable that a purchase order can remain open for a variety of reasons even if it's not still eligible for delivery. But within the context of worrying about MRP and ensuring that we're in a good position there to be calculating the correct requirements plan and ATP to be able to promise accurately, we're looking specifically for items or purchase orders that still have open goods receipts, so that's going to be the WE101. Okay but these statuses in general are really helpful as you're going through and you're trying to evaluate different conditions of your purchase orders and making sure that we're taking good care of them and closing out the cycle. The other thing I'm going to do is I'm going to say, hey, I want to look at my purchase orders that are passed due by more than a week. So I'm going to go ahead and drop a date in here of 4/6 and then I'm going to go ahead and run this. And what this is doing is it's going out and it's identifying any purchase orders that have materials on them, so not free text POs, and anything where the dates are at least 7 days or more in the past. Okay, and this is going to bring me in at the line item level, I can then go into the delivery schedule and this is going to show me for every single line on the PO. Now for the purposes of this conversation, I'm going to turn some of this subtotaling off, so I'm going to go ahead and pull that out, and then I'm going to read you my sort sequence here once that comes up. Okay, so now you can see that I'm starting to get some date information so I can really see what's going on. So I've got my document date, I have the quantities that I'm dealing with here, and then I have also my delivery date and my statistical delivery date. Okay, these are very important, it's important to pay close attention to the difference. I'm going to actually sort this into sending order by document date, and I'm going to go ahead and just bring this out a little bit more and see if we can find a good example that we can go in and take a look at. And what I'm looking for here are some purchase orders that maybe need a little love and attention because they are still sitting out there open. You can see that in this case I've got a wide variety of document types. I have scheduling agreements, I have standard purchase orders, and I have stock transfers. You can see that in the type category, and what I want to do is just go ahead and go in and take a look at one of these just so we can see what's going on. So I'm going to select that line item, and I'm going to go up to go to, and I'll say purchasing document details and that's going to bridge me right into that purchase order. Okay and this is taking me directly to the delivery schedule tab, which is perfect, that's where we should start our conversation today. So my document date is the 22nd of February and my delivery date is the 3rd of March, and so is my statistical delivery date. Okay, so if I had a more accurate date from my supplier, then what I would want to do is go in and update my delivery date to reflect that, okay? That's the date that's going to be relevant for MRP and for ATP. So we are able to get a more accurate read, and that's going to allow manufacturing or the customer to be getting the correct dates as they're going through their planning process. The statistical delivery date is the one that we would use for evaluating performance. So all of our performance metrics would be here. So only in the case that we ask the supplier to move that date out for our own benefit, would we want to change that statistical date. Otherwise, that date should stay the same, and it's the delivery date that moves as we run into issues in the supply chain. As soon as we output the purchase order, that's when that statistical delivery date locks in. Otherwise, if we haven't sent it to the supplier, that's how SAP tries to be fair lets us know if we've actually sent it out to the supplier or not. If we have not output it, then it will continue to recalculate that statistical date based on the planned delivery time. Okay, so if you know your purchase order is going to be past due and you have a better date, or you are currently past due, and you need to give it your next best guess on when it's coming in, while you're working on confirming with the supplier, this is the field you'd want to enter is the delivery date. That's the one you want to update, and the statistical delivery date would stay the same. Now if something has happened and you are no longer expecting to receive more on this purchase order, it's closing out short, then you would want to make sure that you tick this delivery complete tick box. Okay, that's going to be very important. You would tick that and that lets us know we're not expecting to receive any more against this line. The last thing I wanted to show to you here though, is the confirmation. So if you're not currently using confirmations, this is another awesome opportunity. So a couple of things here. When the supplier receives the purchase order, they can acknowledge it and send that confirmation back. Okay, that can be received into SAP in a wide variety of ways. You can even be manually entered if your volume is low enough but there's a wide variety of ways for us to accept that information back in. When we have that, we can choose to make that confirmation relevant for MRP or not but we want to make sure that if that is the better quality information and it's the more accurate date and it's being tended to, well then we want to be able to use that so they can acknowledge it and that means that it's now on their books and they've acknowledged a date back for when they can facilitate delivery of goods. The other option is to allow them to also make changes so that acknowledgement would move based on as they're moving closer and closer to the date, if there are differences in when that delivery date is going to be. And then the third thing that we can do is we can actually have it move from the acknowledgement type AB for order confirmation to actual shipment notification, so an inbound delivery or an advanced shipment notification can be posted and then we'll see that actually change to an LA which lets us know that this is inbound. Now, what's really great about both of these is that we can actually expose that field also in MD04 so we're able to see the confirmation types progress as we move through the cycle of that purchase order. So a couple of different options there. So again, statistical delivery date stays static based on the planned delivery time unless you have asked the supplier to move that date out. The delivery date is relevant for MRP, and so you would modify that as you're getting new information from your supplier in order to be able to keep your planning current. Once you get to a point where you're mature enough to receive information back from your supplier, then instead of you modifying that delivery date, we start to use the confirmations both for order acknowledgement for changes or updates, and then also ultimately for that as a inbound delivery, which also helps us to reduce errors on the delivery processing at the dock and then if we know that we're receiving that purchase order short, we received all that we were going to receive, then we're going to go to that delivery tab and we're going to go ahead and close it out by clicking on the delivery complete indicator, rather than doing anything like deleting the line off of the purchase order because we want to make sure that we have the integrity of that document staying intact. So it's a little information for you on how to update your purchase orders and PO management and being able to use the list displays to get there. In addition to how we would use that for housekeeping through the exception monitor, if you check out the video how to clean up overdue purchase orders. So in summary, we have covered how purchase order management allows you to. Keep the transactional integrity of the system intact. Support quality replenishment, proposals, exception messages, and ATP checks so important for our customers. And lastly, stay in sync with our suppliers and suss out any problems sooner rather than later. Thanks Kristie. Staying in sync with when our suppliers will be delivering goods is critical to our success. Nothing is worse than finding that the supplier is missing an order or we've expedited an order to the manufacturing floor but are missing a key component. If you'd like to learn more about how to get the most of your SAP system please check out our other videos and if you can find the video you're looking for please submit a suggestion.

MM; PP

MD04; MEQ1

Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, Martin here and in this video we're going to focus on how we can use SAP's quota arrangement rules to manage transitions. I know this is a pain point for a lot of companies when they are getting started with quota arrangements. This feature in SAP allows a material planner or a buyer to introduce or retire sources, manage changes in volumes and commitments and support all those important transitions. So we know the best way to learn is by doing so Kristie tell us more about how to use SAP quota arrangements for transitions. Absolutely. I agree that this is a pain point that comes up again and again. Let's dive in and see if we can help make this functionality a little bit clearer. In today's demo, we will. Review active quota arrangements. Introduce a new source of supply. And adjust the rules. I'll also highlight a key field in the quota arrangement called quota base quantity that is oftentimes overlooked, and a key indicator that will help us to identify if we are experiencing a problem. It's all about getting to the right starting point. Okay, let's talk about how we can use SAP's quota arrangements to help us manage transitions from one supplier to another. You can see here we are in the MD04, the stock requirements list, and if we look at our planning situation we have a couple of different sources of supply that are out there where we are alternating back and forth between multiple sources. And you'll see here SAP is giving us recommendations on the quantity for each of these replenishment proposals as well as the dates that we need to start working on getting this information over to our suppliers. So our start or release date for when we need to actually be working through getting those schedule lines over if it's on a scheduling agreement or getting a purchase requisition turn into a purchase order. These are outside of our opening date so we're not late enough as of tomorrow this will actually turn into either a schedule line or into a purchase requisition depending on what we have out there. So what we want to do here is actually go in and we're going to introduce another supplier into our quota arrangement and you'll see because this item does have a quota arrangement it is up here as an option at the top of my screen. As soon as this has a quota arrangement available for it you will see that button appear. We're going to go ahead and click on this, it takes us through to our quota arrangement and I can double click on this line. Okay. And here you can see we have two different suppliers and we have a 50:50 split, so 11,000 going to the first supplier, and a little over 11,000 going to the second supplier. As soon as there's another demand element, it'll go to the first supplier, and it'll continue alternating back and forth, trying to keep that as in balance as possible, since we're using simplest rule in a quota arrangement which is just a percentage split. In our quota arrangements we can have a variety of sources, it could be a production line, it could be a specific production version, so a combination of that BOM and routing. It could also be a mixture of both internally sourced and externally sourced items or sources, and it could also be transferring from another location. So, one of the most confusing things about the way the quota arrangements work is that when you are transitioning or introducing a new supplier into the mix, a lot of times folks will add that and add the percentage split and then all of a sudden all of that volume is going to your new source of supply, and I'm going to show you today how to prevent that from happening. So first of all, if you're transitioning, if you're proving in a new supplier or you're starting to ramp one down, remember that you can use your fair share rules to help you with that. So you can put in whatever split you would like here in order to manage slowly across time that introduction or exit from the supplier. Remember as well that you have validity dates on your quota arrangement, so you can control that split over time, maybe you want to do a slow ramp down over a couple of months or a couple of quarters. You can go ahead and control that with the quota arrangement validity periods. When you're at a point, though, where you want to introduce a new supplier to the mix or start to remove an old supplier, the way that you would do that is actually to pay really close attention to this thing called the quota base quantity. That is where the calculation starts in terms of awarding business to the next source of supply. And so what we're going to do here is we're actually going to introduce a third source. We're going to start to dampen our, valuation on 5595, we're going to take them down to 25%, and we're going to introduce a third supplier into the mix for the last 25%. So I'm going to go to Quota Arrangement at the top and I can switch into Maintain from my view, and I only want to do that when I'm actually ready to make a change. It's really important SAP that you don't go in and just go in to change for change's sake, you want to make sure that that's really, a good reason. And I'm going to go ahead and put in my new supplier, which I think is 1472, and then I'm going to adjust my percentages, I'm going to go to 25 here, 1000 is going to stay at 50 and my first supplier is going to go down to 25 as well. I'll hit enter and I'm going to go ahead and click on the save button. Now I have the option also to simulate right from there, but for the purposes of today's demonstration, I'm going to go ahead and just run it through MRP. And we're going to keep a look at this time horizon, we know this is about where our lead time hits, so kind of from that July 31st and onward standpoint. So I'm going to go ahead and run and it's going to say, are you sure? Are you sure? Are you really, really sure? I am indeed sure. And you'll see we had some changes here, so there were some plan orders that were changed and then some schedule lines that were adjusted for our scheduling agreement. I'll come back here and remember that your stock requirements is live as of the time that you enter the transaction, so because we just ran MRP, we do need to hit refresh. So keep an eye right now on our vendors over here. I'll go ahead and click the refresh button and you'll see now we have introduced 1472 into the mix. What I want to do is go back to the quota arrangement and show you the results and so you'll see here we've had an adjustment. So we've got 6,000, 6,000, and just about 11,000. Now I can control where we start that math from by adjusting the quota base quantity, and sometimes that might be necessary. So if I was removing the first supplier altogether and I was just adding the third, I might need to adjust where we were counting from. So I might come in here and just even these out and say I want to start the new supplier from 10,000 and the old supplier from 10,000 and then have it award from there. So make sure you pay attention to this, if your numbers look off after your MRP run, this is where you want to want to make that adjustment because it's controlling where the start of that calculation is from. So if you have had that quota arrangement in place, you have activity against it, you definitely want to make sure that you adjust that quota base quantity and that will start to level things out. In this case, because we haven't had a whole lot of activity against this quota arrangement yet it's okay for us to start from zero. But if you've had activity against it, the quota base quantity is your key to being able to get your suppliers balanced and get the correct ratios. Just look at that allocated quantity, bring it over, use that as your base quantity to start from. So if you're taking it from 50% down to 25%, start your allocation quantity for the supplier you want to bring down to that 25% of the total volume. Start your 50% guy from 50% and then your newest entry is going to come in and it will start to pick up based on that quantity you started also at the 25 percent in order to be able to make sure that that is working for you. Okay, so a couple tips and tricks there to help you get started, but that's how you introduce a new supplier into quota arrangement and help to manage transitions. So in summary, we've discussed how. Care and feeding requirements for managing transitions from source to source can be clear in SAP. How we might adjust our volumes to ramp up or ramp down. And one of the most common pitfalls that comes up and commonly erodes the faith in the quality of planning. And how we can overcome this and be confident going forward. Thank you Kristie. Managing such a key component of the company's sourcing strategy is risky business, and since the purpose of source diversification is to reduce risk, we definitely want to do what we can to get those activities back into the system so SAP can do the heavy lifting for us. So once again folks if you want to know more about quota arrangements or any other features and functions in SAP please check out our videos and if you have a question please submit it below.

PTM; P2P

MD04; MM03; MEQ1

Hey everybody, Martin here with an episode of Reveal TV you won't want to miss. We're all living in a period of ever changing complexities on where we can get product from, who we can get the product to, what lines we need to run on, which materials we should have or use , you name it. Supply chain is always a puzzle. It's just a little extra challenging right now. Sometimes the best way to untangle a tricky problem is to start at the source, and that's where we're going to start today. Here to talk to us about a tool that can help you get your demand pointed to all the right sources is Nicole. Nicole, we've spoken about quota arrangements before to specifically help us with source allocation. Can you help us today figure out how to use quota arrangements to get to the internal sources of supply? Yes, I certainly can. Martin. Quota arrangements are there to apply rules to how we award business to different sources of supply. A source could be an outside supplier or a plant, or a specific production line, or even a production version. Quota arrangements can accommodate all of these, even including transfers. I think we'll kick it up a notch today though. We're going to set up a fairly complex quota and we're going to take it out for a spin. Let's dive into SAP and take a look. So our plan today is to create a beefy quota arrangement. We're going to go ahead and build it from scratch. Now, we're also going to assume that we have the prerequisite master data already in place. So for example, if a production version, source list, PIR, material, master, updates for quotas, et cetera, is required. We're assuming we've already done that. Stop and make no mistakes, there are quite a few data prerequisites for any type of source determination, internal or external. What you see here on the screen is the stock requirements list. Now, here's the scenario. This product has been going up, up, and up in volume. In fact, we just qualified it on a new, more efficient line. But we're not ready to move it to the new line completely just yet, because even the new production line is starting to fill up pretty fast. You see, we're one of the few domestic suppliers of this product, and now is a particularly good time to source domestically. So what we've done is set up a couple of production versions. We have one for the old line and one for the new line. We also have one for the old line, which contains a newly qualified material that we're hoping will make the old line more efficient. We have limited supply available of that new material though, so we can only produce so much per month with that alternative BOM. In addition to all of this, we also have a plant that we can draw from, but again, only a small percentage of our total requirements. So if we look here at the top of the screen, just a note that it looks pretty normal, I'm going to show you a change here in this location in just a moment. Now I can't wait to create this quota because I've been managing all of this in my spreadsheet and manually creating all of my orders. Yep, if you know, you know. Here we are on the first screen and the first thing we need to do is enter the material number and at a validity period. That's one of the nice things about this. Not only can you update a quota arrangement, you can also have a finite time for which these conditions will exist. You can also proactively set up the next set of rules to kick in at a future dates. Alright, first source, the old line production version using the old entrusted BOM. This is my steady Eddie. I'm going to say about 40% of the production volume should land here for now. Now let's consider the production version for the new line. Let's get that entered and let's make it 20% of the production volume. Okay? Now, for the old line with the new material that's in limited supply, we're going to put that in here as well and make it at 20% of the production volume. And last but not least, I want to include one of our sister plants as well. So that one will be a stock transfer from another plant, but also at 20%. Now let's look at the other fields here. The other field that I'm interested in for our new production line and our old line with a new material is a maximum release quantity. I'm going to add that for both of those options and for the new line, that'll be per week. I'm going to add a maximum release quantity for both of those and for the new line, that'll be a per week quantity, and for the old line with the new material, that'll be a per month quantity. So since this is pretty crazy, I'm also going to run a simulation and make sure that SAP is cool with all the data that I've just entered. And great, amazingly, it looks great. Now, if we go back to our stock requirements list and click the refresh button, we're going to see a new button appear at the top signaling that this material has a quota arrangement. And if we take a moment to run MRP, and confirm again, that we're really, really, really sure, we'll see we've got some changes. Let's return back to the stop requirements list one last time and see our handy work. If we scroll down, we can now see that we've got several sources of supply in play, all following the rules that we set in the quota arrangement. So let's go back to the studio. Whew. Now, that was a robust quota arrangement. Hopefully that triggered some thoughts on how you might put this useful feature into practice. Let us recap with a few highlights though, shall we? First, the quota arrangement is meant to take the proposals that resulted from the demand signal and the MRP run and route them to a specific source based on the rules in the quota arrangement. This can help us level, load or control the max volume sent to a particular source, and we also start to get some exception messages if the rules or restrictions we've put in place are violated, which can be very helpful. Hey, Nicole. Thank you very much. Insights for sure. Now if you're curious about other uses of these quota arrangements, or even more specifically the prerequisites to getting it set up properly, please check out our video catalog and if you have a specific question, submit it below.

PP; PTM

COHV

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, in this video we will focus on how to take advantage of SAP released order material availability check. When used correctly the released order material availability helps organizations by ensuring that we are making the right pre-flight checks to ensure that we are positioned for success on the manufacturing floor. So Eacliffe, how about you tell us a little bit more about this whole process around released order material availability checking. Sure Martin. Released order ATP check is a powerful feature when used correctly to validate that the manufacturing can proceed with executing a production schedule. In this demonstration I'm going to focus on three things. One, why perform another ATP check when releasing a production order? Two, the scope of check, which demand and supply elements are taken into consideration. And three, how to perform an ATP check for released production orders. The intent here is to use transaction COMAC to perform an ATP check an availability check of all components needed for production orders in a release status. The goal is to determine which orders can retain its current schedule dates versus identifying which ones need to be rescheduled out into the future due to one or more missing components. So let me go ahead and execute this transaction. And what we can see here is the production schedule where we have a couple of released production orders, which are currently active and then into the future there is a few production orders in a created status and further out into the future we have these planned orders. We can see that we have these statuses, so MANC status basically is telling us that for these production orders, an availability check has not been performed as yet. You could also bring up additional columns here to show how much been confirmed in terms of what you can make which will get populated once we do an ATP check. So I'm going to actually run the ATP check for everything here right now recognizing that we have a released orders, created orders and planned orders. Again, the rules in terms of how the ATP check is done will differ between released versus created versus planned orders due to configuration that was done ahead of time. So let me go ahead and I'm going to do mass processing. I'm going to execute and the ATP was carried out. I'm going to do refresh and we can see that the status did change to MACM, and this is telling me that confirmation has taken place. Okay, and we can see that these orders have been a 100% confirmed. So let's take one of these released orders and dive into it, and we are going to come to the component overview and the goal is that we can see that we have requirements, quantity, this is what we need for each one of the components, and the question is we can see the committed quantity, so the inventory for these components has now been reserved. What I also want to show you is, I'm going to come to this particular component and I'm actually going to, in fact let me come back I need to come in change mode, so I'm going to come back in this order in change mode, I'm going to come to, the first thing I want to call out is that look you can actually trigger an availability check, it says up here check material availability. So this is one area you can run it within the order. The other option is you can actually come to the component overview and here it's called component availability. It's unfortunate that SAP has used different labels depending on where you are within the transaction, but they are both performing the same task. So I'm going to select this item, I'm going to run the component check and the reason I want to do that is to show how the rules are applied depending on the status of the production order. So because it's a released production order, it's important to observe that the check-in rule, which is what we configured Y2 and the focus is that for when we are dealing with a released order, we literally just want to take the physical inventory into consideration. Things like purchase orders and planned orders we do not want to take these things into consideration. So if you can imagine how you would physically do this type of check. If somebody says, hey, go check and see if you have sufficient components by inspecting the warehouse, how you would perform that task should align with the rules that's defined within the check-in rule. And in this case, the goal is say, look because it's released, the inventory should physically be in the building hence only take a look at that. Okay, so I'm going to close this and again, you can see that the inventory is being confirmed just based on that inventory. So we are going to do continue and we will do a save. So in summary we have covered how released order ATP check allows you to. Understand which demand and supply elements are taken into consideration when the ATP check is performed. How to perform the ATP check for that released production order. And the fact that you can trust the ATP results your system provides for the released production order. Thanks Eacliffe. This seems like a critical step in the process to help support a successful run of the schedule. So if you'd like to know more about production runs, the material availability checking, or any other SAP feature and function please check out our video catalog and of course if you have a particular question please submit it below.

P2P; PTM

MD04; MM02

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we're going to focus on how to take advantage of SAP's reorder point planning. Now, reorder point planning is often considered kind of an old planning technique, but when properly deployed can really help automate the replenishment process for consistent low value, high turn items. Kristie, I know this is a near and dear topic to your heart, tell us more. I'd love to Martin. Reorder point planning is a powerful feature when you use correctly, this is one of the coupling strategies available in SAP and in this demonstration I'm going to focus on three key things. The first is the master data decisions required to support the reorder point planning process. The second is how MRP recognizes and responds to the plan for a material that is on reorder point. And lastly, how reorder point and safety stock differ and yet work together to provide an early warning system when our reorder points are at risk, this is especially important because it's very different from how we traditionally think of the role of safety stock. Alright, let's talk some basics of reorder point planning. So first and foremost, reorder point and safety stock are two totally different features of SAP and we're going to go ahead and show you how safety stock comes into play with reorder point but please note that they are different features with different purposes. We've got some videos out there that explain safety stock. We're going to talk about reorder point planning today, which is all about replenishing when you hit a certain stock level. And there are a couple of different kinds of reorder point planning techniques that are available to you in SAP. So this particular material, you'll notice that the stock requirements list looks really empty, and that is because this is on a manual reorder point. So I can see here, based on the MRP type, it's VB and that means that I'm running purely off of hitting a particular inventory level, like physically hitting that is what's going to trigger it. As soon as the system is showing that I've hit a particular level, then it will trigger replenishment and so you can see here there's a lot of different choices for reorder point planning. You're going to look in this when you get into the V's here, these are all your consumption based planning techniques and you have some that are based off of just hitting a particular stock level and others that are based off of projections in terms of external requirements. So something like an order reservation from production may also come into the reorder point calculation and the system is able also to calculate reorder points for you and adjust them. So those are also options as you get more advanced but this is the most basic, so this is just a manual reorder and I can see my settings here, I just click on this little button and what this is going to do is it's going to show me some of those key planning scenarios. So you can see here I've got a reorder point of 40, so as soon as that available quantity hits 40, it's going to trigger me to replenish. I'm using a lot sized technique of HB, so I'm replenishing to a maximum sock level. So when I hit that 40, I'm going to go ahead and place an order that will take me up to 160 and then I'll work my way back down and as soon as I hit 40, it's going to replenish again. So because I have 52 pieces in stock and to be able to show you some things here, I'm going to go ahead and start making some adjustments. I'm going to adjust my reorder point now from 40 up to 80. So I'll go into environment and I'm going to change material and to calculate my reorder point, I'm going to look at a variety of different factors, including how I've been consuming the material, what my lead time is, what my cadence of placing orders is with the supplier, all of those kinds of good things are going to help me come up with that correct reorder point. But let's say I've reevaluated and it should be 80, I'm going to go ahead and save this, and then right from here, I'm going to go ahead and run MRP. So note that I don't have any requirements right now. It's going to ask me if I'm sure I'm going to say yes, and you'll see I have a purchase requisition created. Now, for those of us who are buyers and planners, we're used to seeing like a full horizon of planning or requirements, and that's just not what you get with reorder point planning. So first it can be really, really scary, but this is a great technique to use when you have materials that are relatively low cost, have fairly consistent usage, and are relatively low lead time, like 21 days or less. I'm going to refresh this here and you'll see I now have a purchase requisition and that purchase requisition, because my lot size is replenished to the max stock level or an HB, it's taking me up to 160 pieces, so it's calculating the difference between my current available quantity, which is less than 80 and my replenished to stock level, which is 160, and that is driving how much it's proposing to purchase. Now you may also find you have reasons to use a fixed lot size or a lot for lot with a minimum order quantity or rounding value, but you definitely want to make sure that you have a value in there so that it's taking you up to the appropriate stock level. Now let me show you this other piece, this is the part that's always confusing and that is safety stock. I'm going to add a safety stock to this material and I'm just going to go with the static safety stock here because there's nothing for me to calculate dynamic off of in terms of forward consumption and my reorder point is 80, so I'm going to set my safety stock for 60 pieces. And if this was a material that was on deterministic planning or planning to the demand, that safety stock would drive additional replenishment would make that purchase requisition increase. Watch here though, it's not going to make any difference. You'll notice I now have an exception message. It's my early warning system that says, hey, not only are you below your reorder point, but you're below that number that you said, let me know because if I get below this number, I'm worried I'm not going to get my replenishment in time and I could be at risk of stock out. The safety stock becomes your early warning system, but it does not add to the quantity that you need. So I'm going to go ahead and run MD02 you'll see that there's no change in my procurement proposals as a result of that safety stock and that safety stock could be any value and it's not going to trigger anything additional on this manual reorder point planning without consideration of external requirements. So you'll see that adjustment here, there's nothing that has changed, it has not adjusted in any way based on the safety stock, it is simply giving me the exception message, but very effective to have that exception message as your early warning and help you make you feel much more comfortable in your reorder point calculation. If you're starting to see that a lot, you may need to revisit the reorder point number and then make sure that that item is being replenished on a regular basis and your lead time information is all correct. So that's how the basics of reorder point planning and reorder point planning with the safety stock work. So in summary, we have covered how reorder point planning will allow you to be able to. Decouple and protect materials to position for pull. Focus on materials with shorter lead times, lower dollar values, and a reliable and responsive supplier. And facilitate storage constraints via fill to max strategies. I've used this feature a lot for light replication or proving in a kanban work or managing constrained storage, like tanks or silos. It can be very, very helpful. Thanks Kristie. We consistently find that reorder point planning is underutilized, but it's such an awesome opportunity to let MRP do some of the heavy non-value added work for you. We want to reduce most of our human struggle hours, that's primarily our goal. So if you'd like to know more about other SAP features and functions please check out our video catalog and of course please submit any suggestions or comments below.

P2P; DM

MD04; MM02; MD02

Hello supply chain aficionados, Martin here and today, we're on a quest to unlock the hidden treasures within your SAP system. Ready to reveal its full potential? Let's jump right in. In this video, we want to take a deeper dive into the key differences between reorder point and safety stock. Many organizations struggle with where to use each one of these distinct techniques. Today, we strive to bring clarity to the definition and purpose of each. So Monique, what do we need to know about the difference between reorder point and safety stock? Definitely, Martin. Here's the good news. We have two really great techniques in our arsenal. And they can quite happily coexist. In today's demo. We're going to review the definition and application of both techniques. We'll talk a little bit about determining the value because that's one of the key differentiators in how we might think about each. And lastly, we'll highlight the types of exceptions an MRP controller should expect to get when using either or both options. So let's go in and take a look. Okay, so here we are friends. And I'm sure by now if you have watched many other episodes of Reveal TV, you know we're jumping right into SAP to get the party started. This is the stock requirements list. This is where an MRP controller lives. It is our news feed so we have what we need to manage the day. And as we can see here, what we need is to replenish our safety stock. We have a number of videos that speak to safety stock, but what we are discussing today is the difference between a safety stock and a reorder point. A safety stock is meant to protect against variability and volatility in demand. It needs to be reasonable to the volume we're expecting to sell and protect us against normal fluctuations. It is not meant to cover the outliers that happen once in a blue moon and we should only be dipping into it every now and again. A good safety stock is regularly reviewed and is not chosen in isolation. It needs to be a conversation with your counterparts and woven into your overall inventory plan and demand program. It's about how much additional coverage you want and over what period of time that needs to be covered and it can be static or dynamic. In this example, we're looking at static safety stock. Now let's go to the material with the reorder point attached to it. This material is now on a reorder point type that is manual with external requirements. If that's Greek to you, don't worry, we've got you and we'll explore that detail in another video. The purpose of a reorder point is that it becomes the mechanism for reordering. When I hit this number here, MRP is going to trigger replenishment. The makeup of the reorder point is based on the lead time of the product, includes any safety buffer, and either does or does not include external requirements. You may not have known you have options here. A lot of folk avoid reorder point planning because of the limited visibility, but know you truly have options. My friend Sean will tell you about that in another video. Now, the quantity for replenishment will be influenced by the lot size key and any other lot size information that influences quantity. Reorder point items are generally lower value items with shorter lead times and are sometimes space constrained as well. So here's what I want to do next. I want to add a safety stock back to this item so you can see how reorder points and safety stocks can work together. That's right, they are distinctly techniques that work together. But here's the thing, the safety stock is there as an alert only. It is a warning to us. Danger, Will Robinson. You are depleting that inventory faster than expected. You may need to expedite. And oh, by the way, if that's happening a lot, it's time to understand why and then come up with a plan to address any performance issues and logistics or at the supplier, confirmed orders are going out the door as expected, and there is not a process hiccup in planning. And where necessary, adjust the reorder point. They do require regular care and feeding. There is no set it and forget it here. And the good news is that SAP will not allow it, it's going to let us know, just like setting the safety stock, the reorder point is something that directly impacts your inventory plan. Okay, so now that the safety stock is set, let's run MRP. Here's the result page and you'll see nothing has changed. Now let's go back to the stock requirements list. See our safety stock? While it is driving an exception message, it's not driving replenishment. In reorder point planning, the safety stock is a warning system. It is always lower than the reorder point and is there to alert us when we need to hustle, intervene, review, or correct. Alrighty, everyone. Let me just highlight a few things before we end our conversation today. First, it's important to appreciate the distinction in definition and use case between the two techniques so we can deploy the techniques in the most effective way. This is important because they are both valuable and have a place in the toolkit. Lastly, I want to leave you with this. As I've explored new tools over the years, I've found that shifting from the theoretical to the practical speeds the journey along. So give it a try, and refine as you check your planning results. You are in control and that in itself is empowering. Thank you, Monique. I think it's a great call out, though, that when we're trying to solve big problems like this and try to help understand the differences between certain topics, it's good that we get together like this and actually share ideas and experiences with each other. That way, we get to the best solution. So, folks, if you want to know more about this topic or other related videos, please check out our catalog, and of course, if you have some suggestions for specific topics related to these or any others, feel free to submit it below.

DM; PTM; P2P

MD04; MD62; MD74; MD73

Hi there folks, Martin here and welcome to the only video series where you get to unlock the secrets and reveal the hidden magic behind your SAP system. Intrigued? Okay, let's stick around. Let's get into this. We're going to talk about a very important maintenance step that is part of the care and feeding that supports a healthy demand management program in SAP. The step is called reorganizing the forecast and this activity helps to keep the demand signal clean, clear, and under control. Steven, reorganizing a forecast is a really tough subject. Take it away and tell us more about it. I certainly can. We can all appreciate how challenging it can be to produce a reliable forecast. Particularly, to be the humans who manage that process. The forecast can be off in two ways, time and or quantity. There are a variety of tools in the toolkit to help manage this. One of them is by reorganizing the forecast on a regular cadence. It helps to address when we want to drop, keep, or roll forward the remaining forecast to sell into a future period. Reorganizing the forecast addresses the former, and today we'll look at some options. It's important to synchronize the watches, make sure this cleanup activity aligns well with your S&OP calendar. Let's venture in and take a look. To keep or not to keep? This is the question. Let's dive right in and take a look at this material in our stock requirements list. We can see here that we have an ongoing forecast that goes out in weekly buckets for the next three periods, and we can observe that the forecast goes back to the beginning of the month of April. We're midway through the month and then in monthly buckets for, let's scroll, 15 months after that. This allows for a total visibility horizon of 18 months. Now some of you may see your planned independent requirements. The MRP element that represents the consensus demand plan or the forecast that's been released for execution. Those PIRs might be neither weekly or monthly buckets and stay at that level for the full horizon. SAP is happy to take daily, weekly, or monthly buckets and is fine with mixing horizons. So you can differentiate where it matters most. Let's say, for example, you were managing a specific promotion, event, or planogram. You might enter a forecast for a very specific period of time and also give it its own requirement plan number. You'd watch that very carefully, and then as the orders came in, check to make sure the orders match the expected quantity. When the orders are all in, you might then go in and remove any unused balance because you know that temporary specific need demand was now fully received. How do you maintain that? Well, you may have an advanced planning solution where the reconciliation will happen and the reduced values will be loaded into SAP as a change. Or, you might maintain it manually, like we're showing here. Double clicking on the forecast line to be cleaned up. Then going into MD62 to lower the quantity to what has been received. But what happens if you have a lot to work through? Well, you might want to put SAP to work and reorganize that forecast. Let's head there now. We can see here that we have some nice, healthy selection criteria. We can choose a plant or multiple plants, material or multiple materials, and then get far more specific. In this case, we're going to specify the requirement plan number, and I'll go ahead and specify the key date. Please note the text here on the screen around for plants without a reorganization period. Because this is key for regular maintenance. And we'll revisit that option here in a moment. Now one of the things I really enjoy about this activity is we can run it in test mode. Let's do that so we can see the results. We can see here that we have some allocated quantities. These are the quantities that are soft pegged to the forecast as pending consumption. We will have SAP net to those quantities and not below so we can keep the demand pegged to the period it was planned for. When we take off test mode, it's going to go ahead and clean these up. So back to our original question, to keep or not to keep? As a part of our monthly S&OP cycle, we need to evaluate what we want to keep, leave open, or roll over, and in this consideration, we also need to think about our consumption modes and the number of days for both forward or backwards. We also don't want to have outdated forecasts hanging out getting old and moldy. Here are a few things to consider. First, set your conversation around drop or roll forward to occur as you go into the third week of the month. If we're rolling forward, the volume gets added to the next period or the period we expect it to come in if we have new information. Second, consider breaking your forecast down into weekly buckets and running the reorganization as a regularly scheduled batch job, dropping a week at a time instead of an entire month. And again, work this in conjunction with your consumption mode and period. Third, think about the communication and collaboration opportunities when transitioning from S&OP to S&OE to keep everyone aligned and moving in the right direction. We have the tools to make this easier. Fantastic! Now let's review some highlights. Reorganizing your forecast on a set cadence can help relieve that feeling of a monthly reset. It's that sentiment of a big change at the beginning of each month when the forecast drops. When this activity is synced well with the S&OP cycle, the changes become more predictable and can even be taken in bite sized adjustments throughout the month. Lastly, we like to keep the planning clean in SAP, and this particular tool helps to maintain a clean sweep so we know exactly where we are and what we're aiming for. Thanks Steven. Maintenance is very important to a healthy system. No one wants to waste precious time and resources working on an incomplete, overstated and outdated plan where we can help it. Great tips today. Thanks again. Team, if you want to know more about forecasting and other related topics, please check out our catalog. And of course, as always, submit your questions below.

P2P; PM

ME39; ME41; ME42

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, my name is Martin, and in this video we are going to focus on how to take advantage of SAP's request for quotes or proposals capability. The RFQ process in SAP allows the buyer to solicit bids from multiple suppliers and centralize that data collection right in SAP. It's a widely underutilized feature that when use correctly promotes flow through the procurement process and allows us to make strides in strategically managing our spend. Kristie, tell us more about this underutilized feature called RFQ. I would love to tell you more. Request for quotes or proposals is a powerful feature when used correctly and in this demonstration I'm going to focus on just three things. First, where this highly underutilized feature lives in SAP. Second, the basic structure of the process. And third, the advantages via integration of facilitating this process directly in SAP. All right, let's talk request for quotes in SAP. So a lot of us are not using this functionality, in fact very rarely do we see people going out and doing RFQ's. They may be doing it for some things around large commercial projects, capital buys, services sometimes. But even then, it's really lightly used and almost never do we actually see people using this for things that are actually inventory materials. And so I want to go through today and highlight what this actually looks like and some of the capabilities, and I'll tell you if you're in S/4 and you have Fiori, there's a lot of additional, cool stuff in that they've really reorganized how the data flow works in terms of how it's presented to you and when you try to do things like go in and rank your suppliers and do comparisons, you've got a lot of nice analytical features in the way that that's going to present information to you and how you actually select which supplier you want to award. So you have that to look forward to and we will do a video specifically on that to give you more of the flavor there. But I did want to just mention it because it gets, it gets pretty cool. I'm going to click on materials management here and go into purchasing, so then this is all going to be pretty familiar to us. So we've got our purchase orders information, we've got our purchase requisitions and our outline agreements, all those transaction codes down below that, hopefully we're using all three. Down below that we have our RFQ or quotation information. So I'm going to go ahead and open that up, this is where we do all of the RFQ and quotation work. And you'll see here we have two different folders, so, request for quotation is the actual RFQ and that process flow quotation is actually working through and managing those results as they're coming back in from the suppliers and being able to do that comparison and ranking so that you can make a decision on who you would like to award to. And it's really nice that you can compare multiple suppliers directly in SAP so you can make that determination. But let's go into the request for quota and I'll come in here and I'll show you what the beginning screen looks like for creation but then I'm going to actually go in and show you one that has already been started, so you can get an idea of what it looks like once you've got it going. So first of all, RFQ type it's going to be AN, it's going to be standard for you, language key is EN so if you want to present this in English, or you can set another language key just like you would on a purchase order, so that you're getting that translation if necessary. You've got your RFQ date, so the date that you're actually going to issue the RFQ, and then the quotation deadline. So when they need to have it back. If you have an internal reference for the RFQ number and you've allowed for that in your configuration, you can enter it. Otherwise, the system is just going to generate that document number for you, just like it would for a purchase requisition or purchase order. Mandatory, you're going to need to enter your purchase organization and your purchasing group, and then down below if you'd like to default any information in across all the line items on this request for quotation, you can enter these in and that will go ahead and add them appropriately for you. Now what's most exciting though, and where I really wanted to draw your attention is this. So first of all, if you have something where you are periodically quoting, so you need to send an RFQ out, and then you've got reasons why you need to quote that on a periodic basis, once a quarter, biannually annually, every 24 months, whatever the case may be, you can actually copy a prior RFQ and bring that over all the information so that you can send it out. If you're sending RFQs out to separate suppliers and you want to be able to copy and send a unique document to each supplier, you can do that here. The other thing that you can do is if you have a purchase requisition that's been submitted into your procurement department, and you need to convert that into an RFQ, you can do that and it will inherit all the information that's already been entered into the purchase requisition that's relevant for the quotation process. And then lastly, and I think is very exciting is you're able to actually do this from an outline agreement. So let's say that you have a contract or a scheduling agreement that is up for renewal, it's coming to the end of its validity period, you can go out and quote it by copying in a lot of that information directly into the RFQ. So that's super nice and that really helps that periodic flow and I think also if you're looking for a use case, for me, if I'm thinking about some of the challenges of working through those documents that should have very clear validity periods, this is one of the ways to help accommodate that whenever it is that we need to go out and we want to rebid or want to create a more competitive environment and go across a couple of different suupliers. So let me back out here and what we're going to do is we're actually going to go in now and take a look at one that is in flight and go in here, and I just want to give you a little bit of a better idea of what the bones look like once you're inside. So you'll see it looks very similar to a number of our other purchasing documents. So requisitions or even setting up the header level or item level of your scheduling agreements before you get into the delivery schedule. So you'll maintain a item category of appropriate, your material number if it is a material, and then if not, your free text will go into the short text field, which will be the description for what it is that you're looking for. You'll maintain your quantity and your unit of measure, your anticipated delivery date, and then any other information around material groups, plant storage, locations, or text, so you can maintain and attach different texts and information here to make it easy for your suppliers to understand what it is that they're quoting and actually go through the quotation process. And from here we can actually go in and start to look at a few other things. So you can attach a release strategy, so you want to prepare your quotation, but then you would actually like to have somebody review it before it goes out. You're able to invoke that release strategy here. You can come in here and you can actually set up the details around this item. So you've got your RFQ quantity. If you had different deadlines across the different items on the RFQ, you can set those up here, and then you can also set up any reminders to remind your suppliers of when this is due so that you're sending that information out to them on a regular basis. If your supplier has their own material number, you can maintain that reference here, and then if it's attached to a particular quotation or line item, you can also enter that information. In addition, you also have additional data, and so this is where you can maintain anything that is specific to how this item should be delivered to you. So something like planned delivery time, if you have specifics around weights and dims that might be helpful for the supplier, you can maintain that here as well as anything around any type of incoterms or any other things that you would want to negotiate in terms of how they're going to perceive this. And as you're tracking through your entire process end to end from RFQ all the way through the actual procurement cycle with final procurement document, then you can also maintain other information here that would help with that. So if you're maintaining the same batch number for example, and you want that to flow all the way through and you have a specific batch that's required, you can maintain that information. In addition to that, you can also associate a delivery schedule with your RFQ. So you're able to go in and and set that up across time. Now, generally speaking, you're not going to do that you're more than likely going to let MRP go ahead and provide that but if your supplier needs to see a rough forecast for what those volumes look like across time, in order to be able to produce that quote for you so you can see how the volume is broken down, then you have that capability. Most of the time you're going to be doing something like a validity period with an overall target quantity but in the cases where you have special commodity types or special services rendered where you need to be able to see that information in more detail, you are able to maintain that here. Okay, now lastly, and the one other thing I wanted to show you is just if we come in and we look at the kinds of selection you have in terms of ranking for being able to review your results, you can actually bring in results from several different suppliers and we'll go into the quotation segment here, and you can come in here to do price comparison and that is going to be under ME49, that's going to be the transaction code, and you can see here, you can bring in specific quotation numbers, you can bring in a collective RFQ if you've got multiple out there that you're trying to combine together, and you're able to come in and decide how you would like to see that ranking occur. So you can go through and review the different options so you can come in and take a look at what you want to include. So if you've got discounts or delivery costs, if you need to do any type of price calculation or determination in order to be able to see that landed cost, you're able to do that, and then it will come up with a simple ranking list and you can make your selection to be able to award that to your supplier. So very helpful in terms of being able to search and bring that information in and go through the process and we'll do another video around what it looks like to do that comparison in Fiori so that you can see how this process has continued to evolve and some of the new tools that are available. So, RFQ is very useful and you can see that they can fully integrate into your process if you think about your periodic reviews, trying to create that competitive environment without having to come up with a new document, being able to copy over, being able to reference contracts or outline agreements in order to be able to send those bids out and then be able to compare multiple suppliers to determine how you'd like to place that volume. So in summary, we have covered how requests for quotes or proposals allows you to be able to. Send requests and consolidate responses from suppliers all under one central document. Move from the RFQ stage through purchase and treat this as an integrated function positioned for pull. And lastly, supports reporting that is ripe for evaluation, especially when it comes to monitoring and managing supplier performance and figuring out how we can best set our partners up for success. Thanks Kristie. Using this feature automates and streamlines the procurement process, reducing the time and effort required to manage the process manually. Getting our procurement cycle started on the right foot pays dividends back to the organization over time. If you want to learn more about this feature and other features in SAP please feel free to check out our video log and of course if you have any specific questions or comments, please submit then below.

SD

V_V2

The best way to learn is by doing and welcome to the video service that unlocks and reveals the hidden value in your SAP system. Martin here, and in this video we're going to focus on analyzing the results of SAP's rescheduling tool. This powerful feature in SAP keeps sales order confirmations in alignment with updated availability based on go to market strategies, prioritizations and rules. With great power comes great responsibility. So Kristie, tell us a little bit about how do we actually apply these rescheduling tools and make sure that we can keep our promises. Well, Martin, it's actually pretty neat. When the rescheduling results are in, we can go in and see which orders improved, which ones declined, and which were unaffected. We can also navigate directly into the sales order and review more details there. The best part is that when we run rescheduling like this, interactively and in simulation mode, we gain a deeper understanding of what's happening and why, and we can validate the results. Are our rules working? Let's dive in and check it out. All right, so we're back in here taking a look at rescheduling. And again, this is something that may be running in the background for you. You're not even aware of it and you may or may not have access to it. First things first, I always recommend using this tool carefully and is an exception management tool, meaning you're really in here using this in an interactive fashion using simulations so you can go through and review the results and really making sure that you're fine tuning the way that you're placing your inventory onto your order. So this is really all about making the best match between the inventory that is available or coming available soon and is part of your ATP scope of check. And in marriage with how it is that you want to serve the customer or the market overall. So this is a very strategic tool and it's very tied to the way that you want to represent your products or services. So one of the things that we want to do here is once we've run it is we want to learn how to go in and analyze the results. Now we could spend days on this topic but what I'm going to do is just give you just a little basic orientation, so if this is running in the background, maybe being able to go in and take a look and see how it's prioritizing. I'm going to go ahead and just run it for one material and what this is going to do is this is going to pick all the sales orders that are out there that have this material on it and it's going to bring all the line items back, right? It's going to go through and evaluate the entire sales order. And I'm going to go ahead and I'm going to choose this guy right here, which we've been working on in a bunch of the video series, and I'm going to go ahead and click execute. Now this is running, it's running in simulation mode and you can see here it has brought back some results for me for this particular item. So this is P-110 and it's grabbed the sales orders that currently have unconfirmed quantities on them. Meaning we haven't been able to completely fulfill them, so these are the ones that need love and attention. And you can see here, this is the order quantity, so you're always going to see that first, this is the line item, sales document, line item, here's the quantity, and then this is the old date. You can see this guy is really, really, really old. And this is going to be the date that we have the first schedule line. So the promise date that we were able to give our last committed promise was on the 22nd of December, and we were able to confirm for 12 pieces. Now we have some new dates, we actually are able to improve this a little bit. If the customer is willing to take 2 shipments, we can actually get them 8 pieces on the 11th of December, so that's an improvement, and 4 pieces on the 22nd. Now, that means that this allows partial deliveries, our master data tells the system that that's okay, and so that's what it's proposing. So this is also a good example of needing to make sure that your rules are in a good spot, and we are able to be able to facilitate it. Now, some of you may be very lucky and you may have the ability to present this in an ALV grid, in which case you get some nice color coding that shows you either in pink or green what has improved or deteriorated. You can see that the reason we're able to get this improvement here is actually because we had some inventory that was previously confirmed against this particular sales order, and we have actually taken it away and reapplied it. So now we're actually moving these confirmations out. So these have gotten a little bit worse and they moved out to the 18th of December. So the system's gone through and it's reprioritized all of this information to try to give us some better dates here based on the priority or the rules that we have given it and this may be based on the date that the order was entered or the earliest schedule line date. It could be based on document number. It could be based on delivery priority. So, all other things being equal who has the better delivery priority? Who's supposed to get this first? And that might be based on the customer, or the region, or the tier of the market, or the industry, or any number of things that would help us. But yeah, this is the way you read it, so this is kind of learning to read through the top here. All of these different header rows which correspond to the different line items that you're seeing. And from here I can do a variety of things, I can actually go right into the sales order so I can double click on it. I can go to change documents. I can also navigate to VA05 to take a look and see what the sales order list looks like. And if I want to focus on improvements, I can click this button and it's going to show me just the improvements. And if I want to focus on the deterioration, I can click this and I'll see just the items that were deteriorated. So I've got the ability to come in here and really focus. So I may have a really large list that I'm working through and that will allow me to go in and take a look. Just a couple of other things here in terms of what is available to you up in the menu, because you're really able to go through and take a look. You can come in here and then say, go back to complete. Take you see back to the complete list, under edit, you can see that you can actually go in and take a look at the change document or any errors that were associated with the run, you can then go to environment and it will take you directly into the list of sales orders. So lots of things and places that you can navigate to from here, but really what you want to pay attention to is whether you like the results or not. So in this case I maybe don't like these results, and I'm not satisfied, with what it is that we're seeing here. So I may go back and say, nope, I don't want to apply that, or I want to change my rules, I think that it's not doing what I want it to do. It's not thinking about it the way I would want to think about it. So I want to go in and actually make an adjustment here. And you're able to do that. And again, you can run this for many materials at the same time, or you can run it wide open, just depends on what your rules are. Bear in mind though, if you have a material that is on delivery complete order, that as you go through and you rerun this, it could push the dates for the entire order as you're going through and making that change. So just make sure that you've got eyes on that, and you're really paying attention. But this is a great tool for making sure that your strategy is executed the way that you would like it to, and also for ensuring that as more inventory is available through that ATP scope of check, whether that is inventory that is incoming through scheduled production, or for stock transfer orders, or from procurement, or whether that inventory is restricted purely to what you physically have on hand, or in quality inspection, or your safety stock. As there's more quantity available, this is allowing you to rematch that supply and demand together in order to be able to make the best use of that inventory, okay? And if you don't want it to reschedule, then you're going to set your fixed date and quantity flag. There are some power and responsibility pieces that go with that as well. So if you're interested in that, we have another video around fixed date and quantity. So this is just a little teeny tiny taste of what's available in the rescheduling. If you've ever been wondering what's happening in the background, again, it's all about the strategy. So take a look at the strategy video to walk you through that. Give you a few ideas on how you prioritize, but you can go right back out, rerun this, and reprioritize that strategy to see what the results would be. It might help you to fine tune overall, but really encourage you to run this in interactive mode. Run it with the simulation turned on, see if you like it, and then make decisions based on that information. Really make sure you go through and understand. You know what, Martin? This topic is so deep, we could spend hours on it. Let me summarize what we've just walked through. The rules that govern rescheduling. Please see our other rescheduling content for more on this topic. We need to be very carefully thought through. The purpose of rescheduling is to make the best use of our available supply. So we want to make sure SAP is thinking a little bit more like we do. But we know that we will always need to take a look and refine. So running an interactive simulation lets us verify the results, adjust our rules, and understand the why and what SAP is doing. Pretty cool. Wow, that is actually pretty cool, Kristie. Thank you. I like the notion of spending the time up front to understand and adjust the rules, and continue to refine until satisfied with the results. A lot of times people think of engines like rescheduling as a something of a black box, but spending some time with the results and the interaction with the information takes a lot of the mystery away and builds confidence. So folks, if you want to know more about this topic or other standard SAP functionality please feel free to check out the videos above and if you have a question submit it below.

SD

V_V2

Hey, folks, the best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value. My name is Martin, and I want to focus on this video specifically on SAP's rescheduling tool. This is a great example of a rules based engine that is often underutilized and rarely optimized. It's meant to support the strategy of how we want to prioritize customer accounts, regions, tiers, and other go to market strategies. So Kristie, I know this is a massive topic, feel free to shed some light for us. Well, it's hard to know where to start here. I'm just kidding. We should start with the rules set. This is where we set our strategy in place. Now, the strategy and all the different ways we might think about it is a very deep into the pool situation. But what I'm going to do today is introduce everyone to some of the levers and toggles that can help us to dial in the results. Let's jump in and take a look at a few of the key settings. Okay. Big topic. Let's see if we can just get a little bit of information to get started. So this is rescheduling, it's V as in Victor underscore V as in Victor, 2. Very powerful transaction. Many of you may not have access to it, and oftentimes it's actually running in the background and you may not even be aware of it. But it is one of the most strategically oriented, sales order management tools that we have, and it is immensely powerful because it controls how we apply inventory to the sales order in conjunction with our ATP rules. So how we determine that scope of check and the particular checking rule for that particular stage in the sales order process. Okay, so this is really for sales orders and stock transfer orders, and it could include other documents that are part of your ATP check. You have the option to control it by material, and certainly when you are getting started with availability checking, and you're getting started with how to work through getting inventory onto your sales orders as more inventory becomes available or enters into that ATP check, so whether it's scheduled production or confirmed product in transfer or inventory or quality inspection or safety stock, wherever you are in your ATP journey. Every day as things happen and more inventory becomes available, you need a mechanism to help you to manage through those backorder situations where it wasn't able to confirm immediately, or in cases where you're trying to continuously improve those dates. And so this is the strategic tool for doing that and there is a lot to it. We could talk for days on this topic but let me give you just a brief overview and plant some seeds in terms of the types of things that you would want to think about. So first of all, you can run this by material. That is really important to know. Now when you select it by material, you're working all of the sales orders related to that material. So, all of those sales orders are going to go through, all of the availability situation for those items unless there's a fixed state and quantity flag set, are going to be re evaluated and you're going to work on trying to improve your delivery situation or availability situation for those sales documents as a whole. Now we also have the opportunity to include our stock transfers. So if promising to your sister facilities is very important to you, if you're conducting ATP checks on your stock transfers, which you do want to consider doing that as you start to get more mature with your availability checking process, because otherwise those documents get left behind. And then you have the opportunity to choose whether you're going to look at that at the line item level or at the schedule line level. So depending on if you're taking multiple shipments against those different transfer documents and what the kind of promising is that you're looking to do for them. So prioritizing either at the item level or the schedule line level. And then this next tick box is really important. This is around, do you want to look at Unconfirmed documents only, so basically saying I want to leave the things that are fully confirmed and happy alone and I'm going to look at things that are unconfirmed and bring them through and then lastly am I going to use a simulation so I can interact, which is highly recommended as you're getting started and you're trying to understand what this rule set does. Now, down here is really the big chunk of our rules. So, we want to prioritize how the system is going to bring these results back to us. So, are we going to prioritize the document category? So, what kind of sales document is this? Am I prioritizing sales documents first or stock transfer documents? So, facilitate, maybe you have product that's used in manufacturing and it's used at a sister facility, you've got a vertically oriented supply chain and it's also sold out the door to the customer, then maybe stock transfers become more important. It really just depends on the nature of your business, and these are all very important decisions to make. The next one is, where does delivery priority fit in? So if you have customer tiering, or you have regional priorities, where it's most important that you have good market representation across all the regions that you supply into. There could be any number of strategies for how you set your delivery priority. Maybe that is the most important thing, and then we go on from there. It could be by date, so it might be the date of creation, or it might be the date of the earliest schedule line. So a lot of times folks are doing this exclusively by date of creation, and one of the big conversations we have is around considering the use of the date of earliest schedule line. And it really depends on the overall hygiene of your sales order documents and how you view the promises that you're making to your customer. Then we have some considerations for document number and document item. So these again become kind of the tiebreaker. So assuming your document number, maybe the different number ranges have different meanings to you. Perhaps your document numbers is indicative of your oldest order, you always want to make sure that you are handling that first. Remember that you also have the sort by date of creation. So really, this delivery priority and the date piece, whether it's date of creation or earliest schedule line, oftentimes become the most overlooked and the most important pieces of information that we want to go after. And so it's really important for us to go through and set these priorities in place so that we know how to sort the documents and then that's the sequence in which we would conduct the availability check in order to try to get the best service to the customer. And by the way, this 1, 2, 3, 4, 5 is not necessarily how we would envision setting this up. You really have to go through and have some robust conversations and really think through how you would like to service the customer. It's not as simple as just going and choosing the top radio button and sending it 1 through 5. These are really important conversations around how you want the system to prioritize this. And if this is happening purely for you in the background, if it's happening multiple times a day, remember that when you run this, it's almost like shuffling the deck, right? It's going to go through and reapply all this stuff. So if you're in there and you're interacting with the sales order and you go through and maybe your customer service or your sales support team says , hey, I keep going in and setting this and then it keeps happening and it's shuffled and it's different from what I was expecting. Check to see if rescheduling is running in the background, it may be prioritizing things in a very different way from how you're going about it. And it's really important to go through and have those conversations and set this in place. This is usually a lot of effort to get this right, it's a lot of discussing where you want to go strategically, how you want to represent to the market , to your different customers, and ultimately this is a big question about how you want to serve overall. So in summary, we've reviewed. Some of the key decisions that drive the rules that then drive this rescheduling engine. We've talked about timing and cadence, and perhaps most importantly, that this is not a set it and forget it rule set. As the business changes and as our strategy evolves, we need to continue to revisit the rules and monitor the results to make sure that we're getting the best use of our inventory to meet our strategy. Thanks Kristie. Once again a big topic for sure. So the question that comes to mind is who do we want to be to the marketplace you serve? I think rescheduling really works best when we have clarity around articulating that answer. So again folks, if you want to learn more about this topic and others check out the rest of our video catalog and if you have a burning question please submit it below.

OTC; PTM; WM

MD04; BMBC; MB52; MB51; CO09; MMBE

Hey everyone, Martin here. Do you ever find that you have a batch of materials that deviates from the normal requirements for unrestricted use, but may be okay for specific use, or perhaps that batch may be reclaimed after it has been reworked? When we use batch management, we get an additional option beyond using blocked or quality inspection stock. It's called restricted use stock. Here to explain the principles of restricted use stock for us today is Monique. And who better to tell us about this than you? Go ahead, Monique. Take it away. Thanks, Martin. When batch management is in play, we have the ability to record a lot or a few characteristics about that batch of material or finished good. These characteristics allow us to get pretty sophisticated with things like batch searches, strategies and ATP. What we're talking about here is a broader classification of status. Today, I'm going to talk through the definition. Show you some of the reporting. And then talk about a key decision on how we factor restricted use stock in our planning. So let's dive in and take a look. And off to the races we go. Let's start with the definition by going back to the familiar, unrestricted used stock is our normal everyday bread and butter inventory that we count on as part of our supply plan. It's MRP relevant and is expected to be used. Quality inspection stock is on quality hold, pending inspection, but has a good chance to returning to unrestricted use. We're expecting to be able to use it and it also is very MRP relevant. Block stock is stock that is awaiting review and disposition and should not be MRP relevant for most organizations. We don't want to count on it. It may be returned to another stock category after rework or additional review. With batch management, we get to introduce another category in restricted use stock. Restricted use stock has been reviewed and we've decided it can be used in some way or for some requirements or at some percentage. Let's say for example, you had a batch of raw materials that did not quite meet specs. But you could introduce it to the process at a lower percentage of use. We believe we can use it, but with oversight. And the good news is that it shows up in all the reports we're familiar with. We see it with the golden cubes here in MD04. We can pass it through to MMBE and see it there. We can get a full account in MB52 across an entire plant if you'd like to, or be very specific in your selection. It shows up in many places, which makes reporting and identification easier. We can also use MB51 to track the transactions moving inventory in and out of restricted use and may even be able to pick up the reason for the move. As we know, there are two big rule engines in place in SAP, MRP and ATP. We get to make choices and configuration on how we consider different stock statuses for both. As you think about what restricted use means in your organization, you'll need to make a call on whether MRP should consider it in its planning. This is a key decision. Do you expect to return it to that inventory to use? Is it a valid source of supply if you could not get inventory and time from somewhere else? Or is this going to be a disposition decision that will be acted on quickly, but you expect to have a positive outcome? Those are all possible options for maintaining MRP relevancy. But if your use case for restricted stock is only to use in special cases that represent very little of your total demand, you may choose not to count on that stock for MRP. It's all about the rules. It always comes back to the rules. Much like stock that has been blocked or placed on quality hold, we need to keep our eyes on what's sitting in restricted use stock. Keeping proper accounting of status, specific batch characteristics and quantity is essential in creating the data integrity that we are looking for. We should have a regular cadence of reviews so that we use what we can and make timely. Yet sometimes difficult decisions around disposition of the rest. Much like block stock, restricted use stock has risks associated with it. If it's factored into MRP yet not eligible to support normal requirements, then we may under plan or overserve our demand. If it's not factored in but we do have some uses for it, we want to make sure we don't overproduce or over procure and we make use of it as soon as possible. These are important decisions. So again, Monique, thanks for the description. Hey folks. SAP has a lot of good uses and a lot of gotchas, so please make sure you understand what you're actually trying to implement. If you're not sure, feel free to submit a question below.

WM

LTOG; VL03N; LS24; LT24; LT21; LL01

The best way to learn is by doing so welcome to the video service that reveals and unlocks the hidden value in your SAP system. Hi, my name is Martin and in this video we're going to focus on returning inventory back to the warehouse that was already picked via an outbound delivery. Steve, that sounds a little bit like an oopsie feature. Where can you potentially correct a mistake or still have a chance to save a potential return before materials officially go out the door? Am I correct? It's hard for me to admit, Martin, but you're right. After a transfer order has already been confirmed to an outbound delivery. You still have the ability to reverse it before it gets post goods issued to the customer. This is helpful and can be used for a variety of reasons, such as if a material is damaged, if the customer changed their mind at the last minute, etc. So let's jump into SAP, where I'll demonstrate how to use this tool, which can almost make you go back in time. The first thing we'll do when returning inventory from an outbound delivery, is we'll jump straight into the warehouse activity monitor, we'll just identify a delivery that's out there for an example. So you can see I have one critical delivery, I'll double click, go into that delivery, it's showing that this has exceeded its time parameter. So I'm going to double click to drill in again, we'll take a look at the status overview to really tell us what's going on. What returning or T code LT0G will do is anytime that a delivery has been picked, this WM status represented in this delivery would be a C or a complete. If it's A, there's the picking where the TOs have not been generated, partially means that the TOs could be created, but not confirmed, so that's really the difference here, so for this outbound delivery, what we'll do is we'll go ahead and we'll go and generate the transfer orders. So I'm going to go ahead and just create these TOs in the background for this delivery. You can see the triangle or the status bar then changed to a yellow. So we'll go in there and we will actually confirm those TOs now. We'll go and look at LT24, just to double check, we know that material was a 100-300, I'm going to go and look for only open TOs and you can see here's my one for this outbound delivery in there. So there's a few different ways you can do this, I'm going to go ahead to my Transfer Order tab and I'm going to, we'll just confirm this in the background and boom, that TO has been confirmed. If I go back to my delivery if I back all the way out here, go back in, there shouldn't be anything there and then my status on my delivery should be picked. So if I went back in there and now you could see my Status Overview the WM status has now been changed to C. If I go to my Picking tab in my delivery, I have a picked quantity now that matches my delivery quantity of 15. Okay, so now this delivery has been picked. We're going to go ahead and reverse that pick, which is what this video is all about. So, we will go to transaction LT0G. LT0G then allows you to go back and return that inventory to stock. So, my delivery already populated there, my warehouse populated. I have a delivery view option, which will take and undo all the TOs for a specific delivery or, you can undo individual TO line items if you need to do that. So, in this case, there's only one line item, we'll just leave that one picked. The movement type will actually control what that movement type is to move it back to stock. So essentially, this is going to undo that status in the delivery and give you options to put it back in stock into the warehouse. So we'll go ahead and execute that and simply all you need to do is select this checkbox, which is calls for that delivery, here's my 15 and if you did the put away in the background, it'll simply just follow the rules that you have in the system and put it right back to this storage type and bin using a 999 reference. Probably the easiest way to go, if you want to go step by step, you have the option to do that in the foreground. So in this case, we just have that selected and we're just going to put away in the background. You could see it turned to green, which means that TO confirmed. Should have put that 15 back into this bin. So let's go ahead and do our double check. We'll go into LS 24, 100-300 already populated, we're going to put in our plant 1000 and boom, now the 15 has been added back to bin 01-01-B1 totaling a quantity of 50. As it followed the addition to stock put away strategy. Welcome back. In this demo we've covered. The use of LT0G and returning materials that have already been confirmed to an outbound delivery. This transaction has personally saved myself and our customers a lot of time and money from preventing reverse logistics. So I hope that you reap some of these same benefits and savings that work for me. Okay, thank you Steve, for sure. This is a good one. This is a great demo and I am absolutely in favor of using this tool to prevent costly reverse logistics. So folks, if you want to learn more about how to save money, use SAP better, please feel free to check out our video service and of course if you have a particular question feel free to submit it below.

PTM

MD04; CS02; MD02

Hey there, fellow supply chain superstars. We love getting questions from you. It helps us drive prioritization of our content, and today is one such video. Do you ever find that you're having trouble planning materials for the pace of production? Do you have particular materials that need to be delivered throughout the production run versus being a hundred percent available and in stock at the beginning of the production run? Well, we want your exceptions to mean something, and we don't want you to have to break down your delivery schedule manually. So who better to ask about this particular topic than Nicole? Nicole, this is an area that you are very familiar with. Why don't you share some more details on it? Hi Martin. This is such a great question. Anything we can do to make a planner or buyer's job easier, I'm in. SAP offers several tools that can help us refine the timing of requirements, and one such tool is called the distribution key. This is targeted for our longer runs of production where we may need to receive several deliveries of particular materials to properly feed manufacturing. Once this rule is in place, MRP understands what we're trying to do, and it splits the dependent requirement for that planned order. This then gives us a proper requirements date to align our deliveries to. It also helps us to get a more and meaningful material availability check based on our plan for replenishment. Let's get into SAP and take a look. Today we're going to talk about how we can use a distribution key within the bill of material in order to evenly spread a dependent requirement out over a period of time. As you can see in this example, I have a component and my stock requirements list is indicating that I need 20 million pieces of this component available on 04/10 for dependent demand. Now, that is a lot of material to use on a single day, especially if we look deeper at the dependent requirement, we can see that this planned production order is actually going to take place over a matter of years. Wouldn't it be easier if we were able to evenly distribute this dependent requirement over the period of time for the planned order? Well, we absolutely can, and we're going to do that by using the distribution key within the bill of material for the assembly. I'm going to navigate to the bill of material for the assembly, and I'm going to navigate to the line item details for the affected component, and I'm going to set a distribution key which will equally distribute that component over the dependent requirement. I'm going to save. Once the bill of material is saved, all I now need to do is rerun MRP for the assembly and re-explode that bill of material. Easy. Now, refreshing at this level is not going to show any improvement. However, if we navigate back to the component in question, we will see the dependent requirement coming from that assembly is now evenly distributed over the years of which that assembly is going to take place. This means instead of procuring a single incoming receipt of 20 million pieces, we can plan receipts across the time period that is intended for that planned production order, with just the click of one button. I love it when a good plan comes together. So let's go over a few key reminders. First, SAP and MRP in particular love rules. So the more rules that we know and can get into the system, the better MRP will do at giving us a reasonable plan for supply. Second, not only is this conversation around the right time, but also the right place. As we break down those requirements, we want to make sure we know the operation and the location where we'll be introducing that material into the process. And third, flow in parts productivity and manufacturing. Let's get the timing right so we can perform well and efficiently. Back over to you, Martin. Hey, thank you so much, Nicole. That was awesome. Love the walkthrough and I'll bet the Reveal TV folks and community love the idea of knowing how to use and align materials with the pace of production. So once again, thank you. Hey folks, if you can't find the video you're looking for and the AI is not giving you the recommendations you need, hey, please just submit the question below and we'll build some content for you.

PTM; P2P

MDVP; COOIS; COOIS-PI; CO24; CO09

Hey production planners and schedulers, Martin here. This is an interesting topic. Typically when we talk about freeing up inventory for orders, we're talking about sales orders. However, today is the day that it's time for the production side of the house to get their time in the sun. Today we're going to explore how to proactively assess material availability to make the best use of the limited materials. Our guide today is Tom. Tom's going to lead us down this path to show us how we can actually prioritize orders to free up materials. Take us away, Tom. When we build our production schedule and release it to the floor, we want to clear three hurdles. Labor, capacity, and material availability. Today, I want to walk through how to identify material shortages, and specifically materials with limited availability where you have some but not all of what you need. We'll look at the pegging of those constrained components to the planned production and see what the maximum is that we can make. And then I'll show you how to deallocate materials from one order and apply it to the order you want to make sure that you are able to produce. Let's go in and take a look. Today we're going to take a look at material availability checking inside of SAP. We will start at the beginning of the process by looking at material availability checking on planned orders. The transaction code we're looking for in SAP is MDVP. This is our collective availability check against planned orders. As we enter into MDVP, we can see there are lots of search criteria where we can sort what we're looking for to be more specific and not look at every possible planned order. So typically we're going to load a production plant that we're looking to check materials against. Hopefully we have an MRP controller that's specifically looking for their materials to check material availability for and I would also suggest using a date range, so we're not just running this wide open for every planned order in our horizon. As we limit our search criteria, we can execute , this will pull up all of our planned orders that match that search criteria we entered. As we can see here, we've got a yellow traffic light indicating that material availability has not been checked on these planned orders. So as we highlight select all, we can go in and now select what we would like SAP to do for checking our material availability. We also have the option here to firm our planned orders. Typically, if we're looking at a longer horizon, we would not want to firm planned orders as MRP then is unable to move or make changes to dates. If we're looking at a shorter horizon, firming that planned order can lock it in place and allow us to have a stable planning situation. So depending on the horizon you're looking at, you may or may not want to firm your orders. In this case, we're not going to firm these planned orders. Now as I execute this material availability check, we're going to see that the status lights change. So now we're going to see green lights for everything we have available and we can run, but we're also going to see red lights everywhere we have a material issue. By quickly looking at the screen, we see a few things. One, we can see that we have some orders that are partially committed. So this first order that we're missing materials on, we can commit to 2,205 of the order quantity of 2,625. This is letting us know that if we choose to, we can run a lower quantity against that order. So we can update the order, we can release that to production. The other thing that we'll see out here is a committed date. Whenever you see a committed date of 99/99/9999, that means that SAP does not see a supply element in the future to confirm against. So it has no date, it has nothing it can confirm against, there is no recovery date on that order. Typically you will not see that, you'll see the next PO date, or the next production order date, depending on what the supply element is that we're waiting for. But from time to time you will see it this way, saying that SAP cannot find a supply element. Now, going back to selecting all, we can select our missing parts, and we can filter just by those missing parts. This allows us to look at the entire list, very quickly, to see where our pain points are, and where we're missing materials. As we can see here, we have some recurring missing materials. The material 100-410 is missing on several orders within our availability check. We can also see that we've committed a partial quantity to a large order, which is leaving everything else short. In some instances, we may want to run a partial of the large order or, we may want to deallocate those materials from the large order and run the smaller orders instead. So as we walk down that path, let's go back , now we're going to unselect everything and I'm going to take that one order, that one large order that's committing all of those raw materials and I'm going to reset the availability on that one order. So, again, I'm just resetting the data, which will deallocate those orders and those materials so that will no longer be consuming those raw materials. Now I can click on some of the orders that were after that in my horizon and again, same process, I can come in here. It's going to reset, I want it to execute the availability this time , an ATP check , now those materials are committed to those new orders that we can run and we can fulfill completely. So as we look at MDVP, it's a powerful tool to not only let us know what we can run , how many we can run when we have partially available materials. But it will also allow us to deallocate those materials and reallocate those to other materials all at the planned order level. This is very important when we talk about giving the production a schedule they can actually execute and achieve. There are other tools in SAP that will also help with this function, like COHB, Collective Availability Checking, CO24 Availability. So there's many tools in SAP that do this, but MDVP starts it from the planned order level and lets us arrange things right from the beginning of the process. Dealing with limited material availability can be tricky and frustrating, and a lot of planners don't know that they can control where the materials are allocated. We have the ability to review proactively and choose where the use of those limited materials makes the most sense. It is very important that we're evaluating availability, using the right checking rules, so the signal is clear. And appropriate to the stage of the planning horizon. After all, our goal remains to deliver the shop floor a schedule that is actionable. We don't want to waste their time or energy, and we want to make sure we've got our customers needs at the heart of the decisions we're making on the use of limited components. I hope this helps. Hey, thank you Tom. There is so many considerations for a planner to work through and it's nice to see how SAP can make reviewing information easier. And then carry the decision through to execution. We want to make sure that we're setting up our partners for success as best we can and make the best use of our investments. So folks, if you want to learn more about how to maximize your investment in SAP, please check out our video catalog and of course, if you have a specific question for us, feel free to submit it below.

P2P; PTM

MD04; MM02; MD03; ME53N; ME13

Martin: Hi there reveal TV Community, Martin here. We are here with a video that was requested by one of our fellow consumers of Reveal TV. They submitted a request to help with the challenge they're facing to dynamically round the proposals for replenishments to make their inbound logistics and storage more efficient. We love getting these requests, how to solve business problems and challenges that you face. Here to help us with this specific topic is Jake. Jake, can you tell us more about rounding profiles in procurement? Jake: Certainly Martin. I expect most of us are very familiar with MOQ and rounding values that are used by MRP when producing proposals for replenishment. Rounding profiles allow us to take this one step further by applying logic to how we round and what value we round to. Today I am going to start off with the business challenge. Then we'll go in and define what a routing value is and how it influences MRPs proposal for replenishment and the subsequent documents. And then finally, I'll give you a quick rundown of where they're maintained. Let's go in and take a look. Sometimes our suppliers or logistic partners have rounding values that go beyond the straightforward static value. So let's explore how to answer this business challenge. Since we're discussing rounding profiles as part of our plan for replenishment, a good place for us to start is here in the stock requirements list. We can quickly review the planning situation for this material, and as you can see here, there is no rounding happening. Now, most of us are probably familiar with rules like fixed lot sizes, minimum and maximum order quantities or static rounding values. Static rounding values are straightforward and help to make sure that we're not ordering in partials where partials don't make sense. Let's say, for example, that this supplier shipped in boxes of 24, and then that was the smallest increment after we exceeded the MOQ that we could buy. It might make sense to then have a rounding value of 24. Or, let's say you had a make to stock item that was split from a monthly value to a weekly value. Now, that split might result in decimals, but you would never produce or purchase a partial unit, so your rounding value could be as simple as one. In either case, MRP will take those rules into account and apply them when generating proposals for replenishment. Here we can see the additional field for rounding profile. I'm going to add one here, then I'm going to save. Now, unlike a normal rounding value where you can enter any value you'd like, a rounding profile is configured. It's either configured with value thresholds, or it's configured with logic that rounds from one level to another. In fact, it can consider tolerances to decide whether to round up or down at all. There are some interesting options for you to set up your rounding profile. So, okay, let's save and go back to the stock requirements list. Now before I run MRP, let's make note of the current plan without any rounding. Good. Now let's run MRP. It's going to ask me if I'm sure, and I'm going to say yes. I can see here that there have been some changes to my plan, and that's good news. That's what we're after when we added that rounding profile. Now let's go back to stock requirements list and hit refresh. And we can see here the new updated quantities based on the rounding profile being invoked in the MRP run. Now this works for planned orders, purchase requisitions and delivery schedules, any supply proposal generated by MRP. Now, let's say you wanted to be more specific. You could also maintain the rounding profile on the purchase info record rather than in the material master differentiate where it matters and is impactful for you. Here's where you can find the field in the purchase info record. Since the PIR is more specific and assuming the source is relevant for MRP, it will take precedence over the material master. So thank you for following me through how rounding profiles can be effectively applied to the procurement process in SAP. Like most things in life, communication is key . Before we can add logic and reason to the system, we have to have a good handle on what the rules are for what we're trying to achieve. The good news with this particular feature is that it offers the opportunity to reduce the churn in the ordering process in an area where we may often be frequently intervening. Now that you have the basics of rounding profiles, the next job is to go identify good candidates that might benefit from this feature in SAP. Martin: Excellent. Jake, that's fantastic. My hope for all of you watching this today is that this sparks your curiosity on a feature you may not yet be using. Are you ready to round up to the next level? What is your business case for the type of functionality? We can't wait to hear how you apply this in your own business. And if you get stuck, please submit a question below or reach out to us. And folks, of course, if you are looking for more stories like this particular one, there is an entire video catalog on how to use our procurement features.

OTC; PTM; WM

MM02; VA02; MD04

Hello fellow SAP explorers Martin here, and I'm looking forward to exploring a feature in SAP that has a strong value proposition, but also comes with some recommendations to avoid potential pitfalls. We are going to be introducing rounding profiles for SAP orders. This can be a highly effective tool for efficiencies, policy adherence, and outbound logistics management. However, like many other features that adjust an order from original entry, there are some cautions, particularly when it comes to customer schedule agreements and orders sent via EDI. The good news is that we have Jake here to tell us more about it. He is the perfect candidate to explain exactly what rounding profiles might be able to do for our organization and help us manage ourselves orders more efficiently, specifically up and downstream impacts. Jake, take it away. Thank you, Martin. I would like to start with some of the whys. What are some examples of business challenges that might necessitate the use of a rounding profile at sales order entry? And then I'll walk through the definition. What are rounding profiles and how do they work? We'll also see in how they're maintained in SAP while we're walking through the system, I also point out some of the watch outs so that our audience is informed and ready to think through how and where rounding profiles might be useful to them. So let's go in and take a look. Alright, so let's dive in. What are some of the reasons why you might consider the use of rounding profiles? Well, a recent client use case was related to outbound logistics. They were responsible for delivering the goods to their customers, and for the larger customers, it made sense to invoke rounding profile to round to the next logical unit of delivery. So in their case, it was the next tier or layer in the pallet. For another business, it was alignment with the way they set their pricing to their customer. There could be any number of good qualifying use cases. Like most good rules in SAP, the business needs to carefully consider and clearly define them. A rounding profile requires configuration, so you don't want to go too crazy and bombard IT with requests, but rather start small and differentiate where it matters. Now one of the nice things about a rounding profile for customer orders is they can be quite specific. In fact, as you can see here. It can actually be defined in the CMIR, so you could in fact have different rules applied or not applied to different customers depending on the business need, so long as rounding is allowed in the customer master, or if you wanted to apply it to everyone except those who don't allow rounding via the tick box in the customer master, you could simply maintain the profile in the material master. If you're using a dynamic rounding profile, then you may be referencing additional master data, like alternative units of measure, so those will need to be in place and accurate. Let's say for now that we do not want to use a dynamic rounding profile, we'll keep it simple and round up to the next threshold here. We enter the sales order at whatever value the customer initially requests. When we hit enter, see here, the rounding profile's invoked and we get a dialogue box with information on the adjustment that's just occurred. Now, let's change the value again and see it adjust the rounding. This is great when you're directly interacting with a customer or you have a portal that's capable of sharing this information. However, proceed with caution on EDI orders to make sure that there are not errors or discrepancies. If we do have EDI customers for which this would not be appropriate, then flagging them as ineligible for rounding and the customer master may help. Then make sure they're meeting the agreed thresholds by putting the correct rules in place on their end. It's possible to make this work and have it work well, but it does require extra collaboration, some testing and error handling for EDI customers. Still a nice tool that can provide strong value. So welcome back from the demo as we highlighted today, rounding profiles at sales order entry can be very helpful in managing through several common business challenges. We also highlighted that while sometimes helpful. They like any feature that changes key order data after order entry require clear communication and expectations with our customers and our business partners. If there are differences between the PO, the sales order, the invoice, we have to work to resolve those differences efficiently. And lastly, we want to make sure the system's up to date with our latest agreements and that we're keeping SAP well-informed and clean. Much appreciate that, Jake. There's some really important advantages and key considerations in the tidy execution of this process. I really look forward to hearing from the business community what they think about how they can be able to use this specifically in their space. We've had a few good success stories recently on this topic, and I'm so glad to be continuing this conversation. So folks, if you have more stories on this particular use of this particular feature, please submit it below, we'd love to hear about it. Or if you just have a question, feel free to submit it below.

OTC; WM; P2P; PTM; DM

MD04; VA03

Hello there SAP aficionados, Martin here. I'm coming to you today with another topic that we hope will help move you closer to your business objectives around service levels, making and keeping a promise and delivering on time and in full. SAP provides us with loads of opportunities to effectively plan for the time it takes to execute certain activities and shipping time to our customers or between facilities is no exception. This is efficiently managed through a function called route determination. Today, we are fortunate to have Jason with us in the studio, ready to help us and understand more about this key piece of functionality. Jason, tell us more about what we need to know about route determination. Hey Martin, like many topics, this is one I expect we'll see featured in more than one installment of Reveal TV. Today, I hope to provide the basics and get everyone thinking about how to further leverage this key feature in today's demo. I'm going to cover three things. First, we need to cover off on the definition so we're all speaking the same language. Then I want to show you where we see the route determination and a sales order or stock transport order. And lastly, I want you to see the results. Let's put SAP to work and see what happens when we apply the route to the order. Let's go in and take a look. You know what? Sometimes we just don't set ourselves up for success. We miss opportunities to let SAP in on how we conduct our business, and the result is we end up working harder than we need to and feel like we're serving SAP rather than the other way around. Here we are in a stock requirements list. See this sales order here? The date that we see is the MAD date, or the material availability date, also known as the date that we're shooting for so that our customer doesn't get MAD at us. This also applies to the components we need to manufacture and stock transfers that we're sending to other facilities. It's an important date. It's basically the sales order gateway into the supply chain. The MAD date is fed by the PGI date, plus some other get ready to ship times. That PGI time is fed by our logistics arrangement with our customer. If we're planning the shipping, then we can invoke the feature we're here to discuss today. To make sure that we have the right PGI, otherwise known as post goods issue date, or the date that it leaves our facility. When we're planning and prioritizing and expediting and carrying inventory, every day counts. And when we're there trying to achieve excellent reliability with our customers, every day matters. To get those dates roughly right, we need to know our mode of transportation and where we're shipping to. Based on the options we have, SAP can determine a route for our sales order or stock transfer orders and get the rest of the dates in alignment. Let's look a little closer on this sales order. On the shipping tab here, we can see that it has a route and if I drill down a little further, into the schedule lines, I can bring up this shipping tab. So the route has driven many of these things. For today, you can see how we plan this order, and we can see our transit time driving the PGI time, and then the pick, pack, and load driving material availability date, or the date that we're trying to hit an MD04. Now, if we weren't accounting for this shipping time, guess what would happen? We'd lose two days of our lead time and already be behind in our planning. We may need to manually intervene, which would cause a lot of churn, but with route determination in place, we're able to properly account for that time and give ourselves a fighting chance in reliably making and keeping that promise. I really hope this was helpful for you. Today was the basics and I look forward to coming back to this topic and taking it to the next level. Here's a couple of reminders before we go. Route determination benefits the customer by setting the appropriate timeline of activities up for the order to reach its destination on time. This is key to getting us to the correct PGI date. Which takes us to the correct MAD date, which is truly the gateway into supply planning. Lastly, when planning your routes, we recommend starting simply with a few different transportation modes and geographic zones that allow you to differentiate where it matters most. Hey, thank you Jason. Supply chains operate based on dates and quantities. With improved clarity of signal, it helps all of us improve and promise with integrity. Appreciate the walkthrough. Thank you, Jason. Hey folks, if you want to know more about route determination or other ways to improve your customer service to your clients and customers, hey, please check out our video catalogs. If you have a specific question that relates to this topic or others, feel free to submit it below.

PTM

MD04; VA03; MM02; CO09

Hey everybody, Martin here, and it is math day here at Reveal TV Studios. Have you ever wondered how SAP comes up with lead times for out of stock or make to order product? Well, there's a number of different considerations. It may be looking at scheduled production, it may be considering just a stock on hand, or not providing a date at all. Or it might be considering replenishment lead time or total replenishment lead time. Wait, there's two replenishment lead times to consider. Okay, this is probably as clear as mud for most of you. So let's get into this. Today we have Nicole. Nicole tell us the difference between these two lead times and which one to use is the best for the situation we're in. Hi Martin. Don't worry, we've got this. First I'm going to clear up a common point of confusion around total replenishment lead time, which is not calculated by SAP. Then I'm going to explain how SAP calculates replenishment lead time based on in-house production time. And lastly, how it can calculate your replenishment lead time based on lot size, dependent lead time. It may sound complicated, but all we're doing today is a simple addition. Let's dive into SAP and take a look. We're going to keep this very real and very simple today, guys. I'm just going to walk through where the fields that matter live in SAP and explain how they will be used in the calculation. So I've got a sales order queued up and we'll run ATP to see these changes. Let's start by looking at the MRP 3 view. Most people fall into one of two camps. They either think that SAP is going to calculate a total replenishment lead time by exploding the bill of material and then finding the longest lead time component and then adding everything together. Or they fall into the camp that thinks SAP doesn't do any kind of calculation in the background at all. But here's the facts. SAP will only calculate a replenishment lead time. SAP will not calculate a total replenishment lead time, so there is no BOM explosion and there is no accumulation of lead times that occurs at any point when it comes to determining the total replenishment lead time. And when you put a value in this total replenishment lead time field, that serves as a manual override to the calculation that SAP would do in the background during ATP or scheduling functions. I'm going to put a value of 7 days in here and save, and then return back to the stock requirements list. You see here that I now have a line that reflects the total replenishment lead time. Now let's get into my sales order. My availability check includes stock and replenishment lead time. Let's check availability. Okay, and it says 7 days from now. Now, total replenishment lead time is on the MRP 3 view, but it is not quantity specific. I could put in a million pieces and it would come back with the same confirmation date. And this along with many other reasons is why it may not make sense to include replenishment lead time in your availability check, but that's a different topic for a different day. Let's get back to the math by heading back to the Material master. I'm going to take the total replenishment lead time value out of the material master. Now SAP knows it has to do the math for me and it can do it one of two ways. SAP's first choice for calculating the lead time is going to use the most specific data available, and that data is stored here on the work scheduling tab of the material master.If I have maintained data within the lot size dependent lead time section, then SAP will do the math based on the minimum allowable lot size to support this order. That's a little complicated for the video to demonstrate, but this is going to simulate the runtime in much the same way we would calculate dates for a planned order. If this lot size dependent data is not maintained, then SAP's next choice is to use the data available for the simple calculation. And in this case, SAP will use the in-house production time, which is maintained on the MRP 2 tab and adds it to the goods receipt processing time, which is also on the MRP 2 tab. In this case, it's going to add up to a lead time of 5 days, which will be applied regardless of the order quantity. Let's save. And now let's back out. We're going to take a look at our sales order again, and we're going to rerun the ATP check and we can see we get a newly confirmed date that's two days earlier. So let's review. TRLT or total replenishment lead time is manually maintained and manually calculated, and it will override the default SAP calculation logic. Lot size dependent lead time reads the information from the work scheduling tab and calculates a lead time based on the lot size. And last, but not least, calculations from the MRP 2 view, SAP will add the in-house production time to the goods receipt processing time in order to determine the replenishment lead time for the material. See, it's really not so complicated after all. These are key master data fields that we use all the time for planning. The key is just knowing which ones are being invoked and when. Today we looked at how SAP does the math in the background for replenishment lead time. This really is the tip of the iceberg on this topic though. The bigger question is where and how should replenishment or total replenishment lead time be used in your availability checks? And that conversation is for a different day. A few reminders in the meantime. If you are using replenishment lead time in your checks, you'll want to let SAP calculate the lead time for most stock items, and you'll need to manually populate TRLT from make items to capture the full lead time of those long lead time components. Other than that, the manual override in TRLT should really be used in exceptional situations and should be temporary when possible, and of course requires regular review. Okay, Nicole, so it isn't just A plus B equals C. It's not just the math that's getting us all knotted, it's sometimes actually the quality of the data we are feeding it. This was very helpful. Thank you. Hey folks, if you want to learn more about, uh, replenishment lead times or just lead times, generally speaking, we actually have quite a lot of videos on that, please check out our video catalog.

P2P; PTM

MD04; MM02

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we're going to focus on the basic setup of SAP safety stock capability. When used correctly, setting and managing safety stock can help organizations maintain stock levels to ensure they have the inventory available to meet customer demand and reduce the likelihood of stock outs. Kristie, this is a feature that can really be misplaced and misunderstood and misused. How about you share a little bit with us? Let me see if I can take some of that risk out Martin. We all know what safety stock is, but let's dig into some of the basic principles of safety stock, which provides a powerful capability when used correctly and in this demonstration, we're going to focus on three primary things. First of all, where do we find the safety stock settings in SAP and what are the different flavors of safety stock that we have available? How does MRP react and respond to safety stock in planning? And a few tips for how we might get this right. All right, let's go take a look at some of these safety stock settings. So you can see here I've gone to the material master, I'm in MM03 because I don't plan on making any changes today, so I'm in display mode and I've gone to the MRP 2 view and then I've scrolled down just a little bit until I got to the bottom where we can see the net requirements calculation. This is where our safety stock settings lie and we talked a little bit about the purpose of safety stock to protect us against volatility and variability. Any types of process breakdowns or variants to plan that safety stock is going to provide us with a cushion. And the other thing to know about the safety stock is that if you think about how inventory gets pulled out or accounted for in our planning safety stock comes right off the top. So it is the highest priority because it means if we are dipping into that inventory that something has gone differently than how we plan. So SAP's going to try to get us to a place where we've are going to replenish that as soon as possible. So it's really important that that safety stock value is really meaningful and that we're getting the performance that we're looking for out it. So you can see here there's three different kinds of time or quantity buffers, and I'm just going to walk you through the settings briefly. There'll be some more videos that go into each of these in detail, but the first one is the static safety stock value, and that's probably what you're used to seeing and you're most familiar with. So this is a value that is either set manually, meaning we looked at the material and analyzed it, looked at future forecasted consumption, past history, how our inventory levels have been performing, and you know, really adapting or adjusting for any volatility or variability in the plan. So we put that value in here. Otherwise we might be going through some sort of safety stock modeling or calculation, or we may be having SAP help us to be able to drive this safety stock value. We want to do that, it's a couple of different complimentary settings, but one of them is a service level percentage. So we set our target service level, we have to go in and set some things around MRP type, other master data settings that are complimentary and a little bit of configuration. With that in place, yes, safety stock can be generated by SAP and that's a question we get asked fairly regularly is, is whether SAP can help us to come up with that value and the answer to that is yes. The next kind of safety stock is down here under this coverage profile, so range of coverage or dynamic safety stock and what this does is it allows us to set a target value for how many days on hand we would like to maintain and then it also lets us set a range for what we would like to consider to develop that target value. So we want to come up with an average day's usage, that ADU calculation, and then that allows us to set up a profile that says something like, hey, I'd like to have five days on hand, that's my target. I'd like that to be based on looking out over a horizon of X number of days or weeks, calculate my average daily usage, and then continue to update this. So where our static safety stock values require us to do regular reviews on a cadence to ensure that we've got the correct static values set for that material. The range of coverage or coverage profile is a little bit more forgiving because it's going to move with that demand signal. So as we're using things or we're changing what that forward looking plan looks like, it's going to handle that and move with it. Now, the downside of range of coverage or coverage profiles is that when we do have outliers those big drops or increases in the plan do play out in the way that we're replenishing and so we have to keep an eye on that, and that's going to show up through our exception monitoring to help us understand what's going on there. The last kind of safety stock or flavor of safety stock is a time buffer, and that's called safety time and what this does is, is adjusts when something is needed. So let's say for example, I had 200 pieces that I needed two weeks from now. I could have a safety time in here where it says I want to be covered for an additional week. So instead of that 200 pieces being due in two weeks time, it's actually going to be due in one week's time for the safety time basically gives me an extra week in case something unusual happens. So while safety stock static and range of coverage, or coverage profiles, dynamic, those are for ongoing use. Safety time is really meant to be used for a very specific purpose. So let's say we have a supplier that is struggling, we're working through some transportation issues, you know, ongoing issues at the port, whatever some of those bigger concerns may be in the supply chain, we can use safety time to help offset that. Let's say you had a lead time improvement project with your supplier and they've been struggling to deliver to you, you might have something like my stated lead time is 24 days, that's what I want to have on the purchase order, that's how much time the supplier gets from the date the purchase order is issued until it's received but because that supplier has been underperforming, I'm going to actually have that requirement due in a little bit earlier. So what I actually need in 36 days time, it's going to show the supplier that they have a 24 day lead time, but it's really coming in 12 days early in order to give me that additional buffer. We would want that in there as a temporary measure and we would want to be measuring that and working our way out of it. You also have the option with safety time to consider what you would like to have included in that. So if you look here under your safety time indicator, there are a couple of different options. So it can be for all of your requirements or it can be for just your independent requirements, you're able to set that appropriately in order to be able to buffer serve for some of those constraints. So as we're living in more of a, you know, VUCA world ever increasing, it seems like this is the opportunity for us to help manage through some of that volatility and be in a good position to be able to service the customer. So, three different techniques available to us all located here in your material master under MM02 and we'll start to explore how those impact our planning and some in our future videos. So in summary, we have covered how safety stock will allow you to have. The appropriate shock absorbers in place to weather the storm and protect against variability and volatility. To measure the performance of the inventory and what we're building or holding as it relates to being able to serve our customers, whether they be internal or external. And receive that bat signal when we've dipped below and want to recover before we actually stock out. Thanks Kristie. Using this feature facilitates a supply chain stability and increases our opportunity to deliver on time and in full to our customers without carrying unreasonable amounts of inventory. Very important to review and improve on a regular basis. Okay, so if you'd like to know more about this and other features in the SAP system please feel free to check out our video catalog and of course please submit any questions.

DM; IBP; P2P; PTM

MC42; MC43; MD04; MM03

The best way to learn is by doing. Welcome to the video service that actually unlocks and reveals a hidden value in your SAP system. Hi, my name is Martin, and in this video we are going to focus on how to take advantage of SAP safety stock level management capability. When used correctly, setting the right safety stock level can help organizations establish more efficient and effective inventory management processes to meet our customer demands, and of course avoid stockouts. This is a foundational feature to manage through volatility and variability. So, Kristie, tell us how we know when you've got the right level of safety. I will do that Martin. Let the healthy debate begin, setting the correct safety stock level has a profound positive impact when set correctly and can cause massive problems when it's not. It must be reviewed regularly and in this demonstration I'm going to focus on three things to help us get it right. First, the options for setting your static safety stock level in SAP. How to evaluate a material safety stock level versus consumption. And how to evaluate whether we are following the signal based on the settings that we have in place. So do we even consider our safety stock as important? So how much safety stock is the right amount? Pretty common question and an ongoing struggle for anyone who is buying or planning to make sure that we have the right amount of inventory to help protect us against variability and volatility while not covering for every possible outlier that could occur. So how do you know if your safety stock is performing or not? So you can see in this case here, I have a material that has 500 pieces in safety stock. Safety stock is priority demand, it's our early warning system, so the moment that we fall below that safety stock level, we are going to get an alert and exception message 96, it's going to tell us that we need to get this resolved as quickly as possible, and it's going to show up as an expedite request in order to be able to get that safety stock back into a good position. So it comes out first. It comes out first before any other demand. So when we place that there, there's a lot of importance that surrounds safety stock. Okay, so we went through principles in another video, but I'll just quickly remind you here where this information sits. So if we double click on the material, it's going to take us into the Material Master and the MRP views. MRP2 is where we're setting that safety stock value. So you can see it sitting right here. So we can either manually calculate this, we can calculate this through any type of third party or offline models and maintain it here. We can have SAP calculate it for us by setting some master data in place around MRP types and enabling the right features in order to be able to generate the safety stock level based on our service level percentage. So there's a lot of different ways for us to get the static value in here, but when we say safety stock, we are talking about a static value. So in this case, the safety stock that has been chosen is 500 pieces. So I'm really curious about how long does 500 pieces last us? And so I'm going to go ahead and just go into period totals here and I'm going to look at kind of, if we look across the month, how much do we use in a month? And you can see here that we use quite a lot, so it's quite variable. So we've got our planned independent requirements and our requirements stacked together represent the total demand for the month. So it looks like we've got between 6 and 7,000 pieces that we are typically moving through and we are setting a safety stock of about 500 pieces. So it's a very tiny safety stock versus what the ongoing requirements are. So that's probably the first thing of note, is that it represents a very small number of days of supply. So the other thing I can look at here is I can look at the historical performance of this, so this is my red line graph, it's looking backwards in time and you can see that we had some stockouts that occurred, right? We don't ever want to see that getting down to zero, but then recently as we came into January there's a significant uptick, right? So we've moved the stock level up and since then, since we did that large goods receipt, we've been sitting at a little bit less than 3,600, that's been our low point so we're way exceeding our safety stock level which should be what we're coming down to and then replenishing above, we're way exceeding that, which is down here in the 500 range. So there's definitely an opportunity to look and see what is going on with the planning situation here. But either way, that 500, if we look at the variability in demand, so if we ignore some of the larger ones and we look at the more normalized variation, we can see that there are swings that are easily three times that amount, that are happening in terms of our demand fall off, so how we're actually issuing inventory out the door. So one other thing that we could do here is we can actually take a look and see what our average daily usage looks like. So let me go ahead and pull us into a transaction that will allow us to see that. And this is already defaulted, so over the last three months how much have we been using? And I'm going to go ahead and pull into this report and it's going to ask me what plant, because I foolishly didn't put it in, so there you go, that's an example of what not to do. Let's put in our plant number here and it's going to be US07, I'm going to go ahead and choose that and then I'm going to go ahead and execute this. And so what this is telling me is it's telling me how much coverage I have right now, so I have 24 days on hand and I'm going to go into double line which is going to give me a little bit more information. And so I can see my average usage per day is 223 pieces, my safety stock is 500, so realistically I'm only holding about two days worth of inventory in that safety stock. So now I should really go through and consider whether that is reasonable and realistic based on the lead time for this product and based on the variability that we're seeing. So not every outlier, but what do those normal deviations look like if we look at the consumption pattern? And then I can also compare this around what we're going to be using in the future so I can run the same report forward looking. So this was MC42. I could also run MC43, and that would tell me my daily usage going forward. That in combination with my lead time would give me a good sanity check to see if that safety stock is doing what we need it to do. And then as I get closer to that safety stock level, as we start to bleed off of some of that excess inventory that we have stocked up now, we can start to evaluate whether that safety stock is performing well for us. So this is a couple of different ways that we can look at that static safety stock value and make sure that we're investing in the right areas and that we have enough on hand to make a meaningful difference because we want to make sure that safety stock is really performing for us. So in summary, we have covered. How setting effective safety stock levels will allow you to have an early warning system when demand pulls ahead of supply. Evaluate on an ongoing basis that safety stock is performing as expected. And to look for opportunities to reduce the investment in our inventory on some materials and increase it in others where we're going to get the most bang for our buck. Thank you, Kristie. I don't think it's possible to overstate the importance of getting this right. Too little and we suffer ongoing misses to our internal and external customers. Too much and we reduce the flexibility by committing unnecessary resources, time, labor, materials, space, and of course working capital, which reduces our flexibility and overall success. Okay, so if you'd like to know more about safety stock, safety stock levels, and other MRP settings and just general SAP features and functions please check out our video catalog and if you have any questions specifically related to any of these please feel free to submit them below.

P2P

MD04; ME22N; ME32K

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video we're going to focus on how to take advantage of SAP's scaled pricing capability. When used correctly scaled pricing can help organizations to replicate price breaks from their suppliers into SAP. It improves data quality and flow of information and it reduces the opportunity for errors. Kristie, I know this is a topic you like, tell us more. I would love to Martin. Scaled pricing is a powerful feature when used correctly and in this demonstration I'm going to focus on three primary things. First of all, our options for where we can maintain pricing scales. Second, how they differ from the MOQ rounding values that we are using to drive MRP. And lastly, how the price scales activate in our purchasing document. Scaled pricing is an underutilized feature in SAP and there are a lot more options for how to integrate them into your overall strategy than what a lot of folks might think of right out of the gate. So let's dive in and see what some of those options are. Okay, let's go in and take a look at price scales. So one thing I want to say before we dig into what this looks like in SAP is just to remember, that your price breaks and your lot sizing techniques and your minimum order quantities and your rounding values are related, but they are not the same thing. Oftentimes price scales are not reflected in the system, and that's because we don't think that SAP can handle the logic for how we have our pricing set up, and so what we end up doing is we just say, okay, this is the economic order quantity, I'm going to have all my planning work to this quantity, and the problem is that as your demand changes or business conditions change, what you might perceive as a good price break may not be the best in terms of your total cost of ownership. And so what you really want to do is you want to have price breaks in the system to be able to take advantage of those cost breaks, but have your minimum order quantity be your legitimate minimum order quantity and then think about the lot sizing techniques in the rounding values that work with how you're logistically moving product, how often you're placing your orders, how long you want to cover in terms of days, weeks, or months, with that particular order, and then let your price breaks work independent from that so as you're actually going in and you're creating your purchasing documents, you're grouping materials, or you're grouping quantities together over a period of time and allowing you to take advantage of those different cost breaks. So we can set up scaled pricing in a variety of ways and today I'm going to show you the simplest which is just a quantity scale, and you're able to set this up most commonly in your purchase info record, also in outline agreements, so things like your contracts, which is what we're showing today, or a scheduling agreement as well. And all of our price conditions will have very specific validity periods associated with them, and that's very importnat, and we're going to go in and we're going to actually adjust this guy right here. So I'm going to go ahead and click on this line and then I'm going to go to price conditions and anytime I am adjusting my price conditions I do want to create a new validity period for that. This one is already reflecting today's date, so we are good to go, you don't want to overwrite you always want to create a new one. Okay, and I'm going to go ahead and select this line, now to get to scales you can see I've got a tick box right here that means that there are quantity scales that are out there and available to either add or adjust those, I'm going to click on the scale button, I could also have gone to go to and then added scales in, and I'm going to actually go in and set up my price breaks here. So you can see I've already decided I'm doing a quantity scale and I'm going to come in and make some adjustments. So if I buy one piece, one piece is going to give me a $45 price. Let's say I buy 40 pieces, and that's going to take me down to $40, and let's say I buy 80 pieces, and that is going to take me down to $35. Now most often with our quantity scales, those are going to be related to reducing the amount of setups or changeovers and might be related to some of the logistics costs, like freight is built into our piece price and it's not a separate item. All of those kinds of one time charges that are related to our procurement, that's where we're most commonly going to see the strongest price breaks. Now, sometimes that's also just a function of getting a better deal based on quantity, but a lot of times it's tied into the actual manufacturing process. We want to think through that and use that as a negotiation technique. Now this is a quantity scale, which is the simplest form of scaling, but you can see in here there's a ton of different options, and this is the tip of the iceberg in terms of how we can actually develop our pricing in order to get the right price onto our documents. But you can see we can do quantity or value. We can even do things by weight or size. So as you're thinking through logistics, you can also see that you've got things around periodic, so, days, weeks, those kinds of things, distance, there's a lot of different options here in terms of how we can set that up. And this is, again, tip of the iceberg in terms of how we can actually determine what that price should be. So once I have this in here, I'm going to go ahead and hit save, and then I always, always want to just double check. So I'm going to pop right back in, I'm going to select my line item, I'm going to go back to my price conditions and I'm just going to just triple check and make sure that everything looks the way that I'm expecting it to. Go right back into my scales and I can see here all of my different price techniques. So this is great. Now I know that I've got some conditions set up, and so anytime I am issuing a purchase order that is tied to this contract, I am going to see those price conditions are going to be honored as a part of that process. So let's actually go through and let's try to convert one of our purchase requisitions to a purchase order. So go back to the main menu I'm going to go to MD04, this is the best place for me to see what is happening from a planning perspective, refresh, and I'm going to go ahead and try to convert this purchase requisition into a purchase order and we will see how we are looking. ​ Okay. It's one of my favorite things to do in SAP, I get to go shopping, so I'm going to go ahead and grab this requisition and I'm going to drop it into my shopping cart. Okay, and it knows I'm ordering 60 pieces and I can come over here to my conditions and I can see what is actually happening with my pricing. And I can see if we remember if we ordered one piece then we were going to be paying $45 and then we set up some discounts from there so that we could actually get that price break automatically determined for us on the purchase order, and if I'm ever unsure, I can always click on this analysis button and it's going to tell me exactly how my pricing was determined. So that I can see what is actually happening in that price determination, and it'll tell me everything that has been looked at as it's gone through and flown through that condition record so that I can see exactly what's happening. And so when we say it's robust all of this is what is telling us that these are all the different pieces that can come into play in terms of being able to get that price onto our purchase order. And if there's been an update and it's eligible for this purchasing document based on my update techniques, I can actually come in here as well and I can actually redo my pricing or re carry out my price procedure and it will allow me to go through and see what is actually happening with the pricing and it will re-reference all that information to ensure that we have the correct price on the purchase order. Okay? So very important, very helpful information to have in terms of being able to come in here and see what is going on, but scaled pricing is very easy and we want to make sure that we are getting that set up so that we have good, repeatable, sustainable pricing on our purchase orders without having to manually intervene and adjust. So, in summary we have covered how scaled pricing allows you to. Be able to ensure the correct price is being applied without having to manually intervene. Have a symbiotic relationship with MRP and PO automation. And save time and effort by focusing on the upfront setup of pricing structure rather than managing every transaction every time, this helps our buyers rise above the order and make time to focus on negotiations and other sourcing related activities. Brilliant, thank you Kristie. I can see how this would be helpful. So many buyers find themselves mainly adjusting either lot sizes or pricing on a document by document basis. How incredible would it be to let SAP help us with this? Between our lot size strategy and our scale pricing, there seems to be a great opportunity to let SAP do a lot of the heavy lifting for us once we provide them with the right rules. If you'd like to learn more about this topic and other topics to relate to SAP please feel free to check out our video catalog and of course if you have any concerns or questions submit them below.

MM

ME32L; ME38; MD04

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, Martin here, and in this video we will focus on two key features in SAP schedule agreements, zones and creation profiles. These key features in SAP offer support for common requests from suppliers. The zones help us to manage signals and agree to activities, and creation profiles cover a lot, but more specifically include the ability to aggregate information across time. Kristie, why don't you tell us more about these schedule agreements capabilities? Definitely. As you alluded to, there's a lot going on here, so we're going to hone in on a couple of key points. Firstly, we'll cover off on the zones. The definition of firm and trade off zones offer great signaling capabilities to our suppliers and another level of negotiation for our buyers. Really cool. Then we'll talk about creation profiles and the level of aggregation so that suppliers get the right level of detail at the right time. Think of this as relevant information at relevant time ranges. I'll also show where this information is maintained in the scheduling agreement. Let's go into SAP and check it out. I am so excited to show you this functionality in SAP. Scheduling agreements are a great tool to strategically manage our sources of supply and to be able to provide them with good information and one of the most underappreciated features of scheduling agreements is our ability to differentiate between the different zones. So if you think about firm, slushy, and free zones. It's a similar concept here and what I want to walk you through today is where this information is stored and also the impact that it can have as we're trying to set boundaries with our suppliers for what activities are happening when while endeavoring to share more information with them especially when it comes to our outlook on what we would be expecting to supplier our forecasted quantities. So you'll see here I'm in ME33L and I'm just going to go look at this particular scheduling agreement and when I come in here, you'll see I just have this single material set up and I want to go in and take a look at some of the details. So you'll see here this additional data, this is where a lot of the master data for this particular scheduling agreement is stored, and this particular scheduling agreement is an LPA. So there's three types. There's an LP, an LPA, and an LU, this happens to be an LPA. But you can set these zones on any of the types of scheduling agreements. You'll see here, the first scheduling control piece is called a firm zone. And then you also have something called a trade off zone, and then everything beyond that is the free zone. So think firm, slushy, and free. And what this does is it provides a really amazing opportunity to have an agreement with our suppliers on what specifically each of these zones mean and it allows us to also print this information on our outputs and incorporate that into the actual documents that we're sending to the suppliers when we're allowing them to see our delivery schedule. So for example, firm zone to you may mean okay to ship or okay to produce, depending on what kind of lead times we're dealing with and what kind of commodity we're dealing with. The second one, the trade off zone, this may mean okay to commit capacity, okay to purchase raw materials, or this may be your go ahead for production. Again, depending on what kind of relationship you have with those suppliers, what kinds of goods or services you are procuring from them. And then the last piece is the relationship with MRP. So what is MRP allowed to change? Is it allowed to adjust within the trade off zone, or is the trade off zone going to stay exactly as it is and it's just going to adjust outside of that. Now, most of the time, your firm zone is exactly what it says, it's firm, no adjustments by MRP. Trade off zone depends on what this means to you commercially and how you have that conversation with your supplier. You may want to provide that to them as an outlook, but they may know that there's going to be slight shifts in those dates or quantities. So you need to make that decision based on those conversations and what the relationship is with your supplier and whether they're holding inventory for you or not. The second option here or opportunity within the scheduling agreement that I wanted to highlight for you is something called a creation profile. And this is very cool because it has a lot of different settings that control the way that we share information with our supplier. For example, if we're working with an LPA scheduling agreement, we can do a just in time delivery schedule and then a forecasted delivery schedule, we actually provide two separate documents to the supplier, we can do two separate outputs for them to be able to see what's happening, and we can control the way in which we issue those changes. Another really awesome opportunity here are the aggregation horizons. So maybe in the near term you want to be able to provide your suppliers with information in daily buckets, in the midterm you would like to have weekly buckets, and in the long term you actually want to roll that up to month. This is a great way to share information with your suppliers based on the relevant information at relevant ranges and how accurate you are able to be from the near term out to the long term. This also sets the tone for those conversations around what that data should be used for in their planning processes. This is a great way to be able to set this up and share that information with the suppliers in a way that is easily consumable by them and so that they understand what the data means. So this aggregation level, the way in which we choose to create releases or changes to the scheduling agreement and the firm and trade off zones are great communication avenues to be able to adjust the way that we're having conversations with our suppliers and share information so the right activities are happening at the right time. This does require a little bit of configuration and a lot of business rules discussion, as well as setting up your outputs to show the correct information, but a super valuable tool in terms of being able to make your strategic sourcing strategies a reality and easily executable and monitorable directly within SAP. So in summary, we have covered how these key features in the scheduling agreement will. Allow you to be clear in your communication with the supplier on what those signals mean. Provide suppliers with broader outlooks while still restricting your commercial obligations. And set the supplier up for success and reduce churn through aggregation. Thank you Kristie. The more we help our suppliers the better positioned our suppliers are to help us. These sound like valuable options to enrich the conversation with suppliers. So folks if you want to know more about how to get the best out of your SAP system please check out our other videos and of course if you have a burning question please submit it below.

P2P; PTM

MD04; MM03; MC40; MC41

Hi, supply chain friends, Martin here, and in today's video we're not just scratching the surface, we're going to deep dive and unlock and reveal the hidden value in your SAP system. Ready for this journey? Okay, let's get going. In this video, we're going to explore the ABC indicator and how to put it to best use. So Monique, why don't you tell us a bit about what to do about the ABC indicator and how best to use it in our supply chain. Well, Martin, when I was running my warehouse I used the ABC indicator to drive our cycle count program. It is one of the tools that supports grouping and segmentation to drive focus and attention based on the use, importance, or velocity of that particular material. Now there are actually two ABC indicators. The one I mentioned that relates to warehouse ops and the one that I used was the MRP 1 tab. SAP can actually help us to set or determine values for either, but today I am going to focus on the one in the MRP view, which is used for material selection, reporting, and analysis. Many people are unaware that SAP does this, so I'm looking forward to this one. So let's dig in. Now, I mentioned that there are two ABC indicators. The one folks tend to be most familiar with is the one that drives the cycle count program. But have you ever noticed that there is also one on the MRP 1 view? Let's go take a look. I'm going to go into the material master for this guide by double clicking on the material number. Here we go, and you can see this is the field. Now this field, unlike the other ABC indicator that controls the cycle counting program, this one is for informational and reporting purposes only. It's very powerful information and we can use it in a number of ways for decision making and cadence of activities in particular. It requires a regular review and maintenance. Now, did you know that SAP can help you both evaluate and update the ABC indicator? Yeah, it's pretty awesome, and you actually have two options for how to review and determine what that ABC indicator should be. You can look at either usage or requirements. So, backwards based on historical consumption, or forward looking based on expected future volumes. Let's head over here and take a look. The techniques around setting and utilizing the ABC indicator are part of grouping and prioritization. As we look at this selection screen, it will guide us through the thought process, but we have some decisions to make. First, what does our pool of evaluation look like when we go into the set indicator? Are we looking based on the velocity in one particular plant? Or are we accumulating across multiple plants? So do we want to see the performance or importance at the material level or the material plant level? Secondly, what kind of time horizon do we want to look at? And this also contributes to the cadence of review. We need to think about the nature of the business we're in. Is it seasonal? Do our products have long or short life cycles? Is it different based on the type of material, product, family, etc? You do want to be careful with this next one. Materials, the evaluation is performed on the plants and items that are chosen. So when you limit the pool, you are nominating materials for ABC based only on the plants and materials in scope. Be careful with this and make sure you explore with curiosity to make sure your pool is a good one. The next important decision is around the analysis strategy. An ABC indicator is meant to convey the importance of that material. How does your organization define important? And how does this relate to how you intended to use this information to drive focus in planning and execution of the supply chain? The most common selection is the top option here, percent. Percent of either requirement or usage depending on whether you're performing your evaluation via MC40 Past Historical Consumption or Usage or MC41 Future Plan Requirements. They both have their advantages. I like options so I will often run both and compare notes. I'm particularly looking for items that are in transition and sometimes I'll even catch an anomaly in consumption or forecast that I can reach out and ask a question about. So like the cooking shows, I know going to pull the finished cake out of the oven and show it to you because it takes time for this to run . What SAP has done is analyze the information based on what we selected and here are the results. You can see that some are the same and some have changes. I can go through and select some ones I'd like to change. See here. And I can execute that change. I can also process the entire list. With great power comes great responsibility, so please make sure you like it before you buy it. This is a good starting point to get a first pass at what the ABC should be. There will be materials that you will want to set differently for business reasons, life cycle, or pieces of the puzzle that SAP just does not have the visibility to. Work on that, but in the meantime, manage those as an exception and play with some of the different analysis options. There's a great opportunity to be curious and I hope you'll go explore. Welcome back. So I'm glad you were able to explore the system with me today. Let's get to a few of the so whats. First, the ABC indicator can help drive focus and attention, especially as we think through our planning activities. Second, it does require regular but not excessive frequent revisits. Think about the way your business runs throughout the course of a year and think through when a revisit might be right for you. Lastly, this is a good data point to factor in as we're thinking about our investment in inventory, contracts, labor, and capacity. When the chips are down, this can be a good additional data point to help break the ties and make sound decisions. Wow Monique, the ABC Indicator is a really nice feature because it's available in a lot of the reporting and analytic tools. And it's valuable to see what SAP can help us do to both review and update these values. Thanks again for those insights. If you want to learn more about how to get the most out of your SAP system, please check out our other video catalogs and of course, if you have a specific question, or even just a suggestion or comment, please feel free to submit it below.

DM; OTC; P2P; PTM; WM

SAP GUI

Hey everyone, Martin here. There are so many places to go in SAP. How can we make it easier to navigate our daily tasks? With so many options, how can we drive focus on the transactions we use every day and not forget the ones that we use a little less frequently? Today we're going to talk about using favorites, and here with a few of our favorite tips is Jason. Now fair warning. One of these tips may make you want hours of your life back. It's one of those you don't know what you don't know moments. It's okay, we're fixing it right now. Take it away, Jason. We get asked all the time about how to set a new team member up for success in SAP, and there are a lot of different pieces to think through. For today's example though, we're going to use favorites to help a new person mark the transactions as they learn their new processes. Now there are options for how to do this, and we're going to demonstrate two of them today. The first is finding and adding a favorite. The second is how to download a list of favorites from an existing team member and upload them for the new person. Then we're going to talk a little bit about how to organize your favorites to make them follow the daily, weekly, and monthly cadence of activities easily. Let's dive in and take a look. So as with most things SAP, there are about 37 different ways to add a favorite. Okay, maybe not that many, but there are several, and we'll go through most of them in this session. I'm going to start by adding from the menu path. So I'm going to expand this. I want to find, create purchase orders. I'm going to keep expanding down through the menus, and I'm going to get to create, so here's my transaction Code ME21N. I'm going to click on that, single click, and now I have a few options. I can right click and say add to favorites. I can use the menu path up here where it says Favorites in the add, or the quickest way is probably just to click this button that says Add to Favorites with the star. So I do that, and as you can see, it pops this up into the Favorites folder. That's option one. It's a little clunky. Option two is from within a transaction itself. So, I’m going to go to MB52 to look up some warehouse stock, and from within here, I can go to System, User Profile and Expand Favorites. And it's not obvious that anything happened, but when I go back to the main menu, you can see that now , that's in my list of favorites. So that's option number two. Finally, we're going to use the tried and true drag and drop method. You know, that works everywhere, right? But don't tell anyone, here's a bonus tip. I'm going to show you how to find your transaction code quickly within the tree. So, first thing I'm going to do here is I'm going to go up here to the binoculars and type in MMBE and hit Find. What's going to happen here, queue the jeopardy music, it's going to take a minute... Look, it took me right to it. How cool is that? And then from there, I'm going to hold down my left mouse key on it and I'm just going to drag it. Drag, drag, drag, drag, drag, and bam. There it's, so now I've got it in my folder . So that's pretty slick. Nice and easy. Now you can probably imagine that things will get a little bit cluttered if we keep on this path. So, next step is we're going to show how to quickly take these favorites and move them over to another SAP environment. So whether that be a test system that you need to work in, or if you want to share your favorites with a colleague. So very simply, we're going to go to Favorites, we're going to say Download to PC and it'going to be just like downloading anything in SAP. I'm going to go ahead and say, export, put this on the desktop to make it simple. Export, click through my Allow, and now I have it. Next thing I'm going to do is jump over to my other SAP system, and you'll see here that there are no favorites in this one. So I'll go ahead and say, Upload from PC. I'll find my export file and I'll hit Open, hit Allow, and bam. There you go, my favorites are now in this other system. So you can see that it's really quick and easy to share these with other people. Keep that in mind. You could even set up a standard that everybody gets. Save that on one computer and then just quickly upload that as you're setting up a new user when you hire new people or someone changes into a new job. All right, so now that we've done this, we also have an option of what if I want to delete. So again, multiple options. I can highlight the transaction in favorites. I can use the little star button to delete favorites. I can go up to Favorites, Delete, or I can right click say Delete Favorites. And there's also the option to just hit the Delete button on your keyboard and it's gone. Alright, so now that we've done this, you can imagine it's probably going to get a little bit cluttered in here if we just start going crazy, adding transaction codes. So the next thing we're going to about is how we can organize this a little bit more. So much like in any type system like this, like windows or something, we can add folders. So up here, I'm going to just say, let's see, go to here and I'm going to say Insert Folder. So within my favorites, I'm going to call it Jason's Stuff because that's nice and crisp. And then within that folder, I'm going to add some more folders. So I'm going to right click here, I'm going to say insert folder and let's just say, we'll call it Exceptions, and then I'm going to add another folder here, so you can get creative with this if you want to, I'm going to call it Procurement, hopefully I spelled that right. And then I'm going to do one more, call it Inventory. And I don't really like that sequence, so I'm going to drag this down, just respond, oops, I put that in the folder. I don’t want to do that. There we go now I’m in the right folder. OK, so, as you might imagine, I can then click and drag some of these. So I'm going to go ahead and drag this guy up into the procurement folder, and now he lives there. And since this is an inventory transaction, I'll pull this up here and drop it in the inventory folder. Pretty cool. Now I want to add another transaction, I'm going to go here in this folder, I'm going to right click and I'm going to say, Insert Transaction and I'm going go ZMD07, bam. That's in there now. And I’m going to add one more, let’s add MD04, those are fairly common when we're looking at exceptions, so we'll do that. Then down here, maybe I want to add MC.9, we’ll add MC42, these are some of my favorites, and we'll add NC 50 in case we want to look at that stuff. Maybe up here well, I'm not just doing PO's, I might need to create a requisition, so we'll drop that in there. Maybe, let's see, maybe to N in case I want to report on my PO's. Oops, I hit the wrong button, I made that a folder, that's no good. So let's go ahead and kill that and we'll start over. By the way, I just hit the Delete button on that to delete that folder. And now we'll make this a transaction ME2N and we're good to go. Alright, so you can see this. You can sequence these things if you want to, so maybe I want to put my report down at the bottom. You can just click and drag and move it. Maybe I want to have a different sequence here, so I want MC.9 to be up at the top. So we'll just drag and drop these guys around a little bit. You can set these up in a sequence so you can get very creative here with these. There's very much flexibility within the structure. And I'm going to show you one last thing, and I might get in trouble for this, but you can actually change the name of these things. So like here with create purchase requisition, you can say something like, let's see here, where's money let's say Change Favorites and I'm going to say, Do this first!!! See, now I know that I do that first. We can go down here, to my exceptions, because this is super important, we know this. You must do this every day before coffee!!! All right? So no mistaking this. You hire a new person, they shouldn't have any question about what they're supposed to do and when they should do it, so get creative with your folder structures and remember that you can always download and upload. Hopefully this gives you, a good idea of how to use favorites effectively and seriously don't tell anybody about that last tip, I don't want to get in trouble. Favorites are a great place to start when onboarding a new team member. We can set them up for success by driving a consistent focus across people with similar roles. By organizing our favorites, we can quickly map the transactions that we use to our processes for completing our work on a regular cadence of activities. Now as great as favorites are I want to encourage you to stay curious and continue to explore all that SAP has to offer. I knew this was going to be a favorite, thank you Jason. First of all, having a consistent, well established workspace sets a team up for success. No question. And second, I love the trick you showed on how to upload and download favorites from one person to another. That's great. Thank you, sir. Hey folks, there's actually quite a lot of these little favorites, tips and tricks that we can be using. Please check out our video catalog if you're looking for others, or ask the AI chatbot, I'm sure it'll have some ideas for you.

WM

LX02; LX27

The best way to learn is by doing and welcome to the video service that unlocks and reveals the hidden value in your SAP system. In this video we're going to focus on shelf life expiration date capability in warehouse. Steven, this is a big deal for many companies, how about you tell us a little bit more about how to deal with shelf life management? Absolutely Martin. Managing shelf life expiration dates in your warehouse is no easy task. WM has built specific stock removal or picking strategies that automatically direct you to the material or batch that will be expiring first. This allows you to maintain FIFO principles and minimize expiring materials. The most critical thing warehouse folks must do is pick the batch called upon from SAP rather than picking another just because it may be easier or closer. In this video I will demonstrate. A few tools. And best practices to help warehouse staff identify and manage SLED materials and materials that have surpassed their expiration dates. Many organizations and warehouses have materials that expire. There's many different strategies and really ways that you can manage your shelf lives within your organization, your supply chain, and SAP is certainly capable of helping utilize and really manage those shelf lifes. So one of the first transactions that we'll display here is going to be LX27 which is the SLED, which is shelf life expiration date control list. There's two required fields here, it could be your warehouse number which has shelf lives. The second is going to be down here in the number of days remaining in your shelf life. You can see below that there's two bubbles that are populated there. The first is total remaining shelf life, which accommodates for your transit time or your transportation time, such as your goods receipt time. It takes into consideration the overall picture outside of the warehouse, which is awesome. The second one below that is just simply, hey, it's expired in the warehouse, you need to get it out now before it actually expires and doesn't take into consideration some of those lead times. So in this case, at the very least, we want to enter one day okay, and we'll just go ahead and let this run. What this shows, you get a traffic light, and it simply means, this material has expired by a lot in this case, it's June 2023, so almost 5,500 days, thankfully this is just a test system and not real materials. You could see, it actually gives you the amount of days, the number of when this actually expired, so back in 2008, you can also see the total quantity and the storage bin and where it's at. So that's going to be very key is to know where it's at. But one of the things that it's missing, because when we're talking shelf lifes, we're also talking in potentially batches, right, which makes sense. If you're dealing with shelf lifes for materials that expire, you want to be able to identify which batch it was on to be able to trace it back for a lot of quality issues. So you don't see that here now, however so one of my clients asked, can we get the batch on this, absolutely, which I would highly recommend. What you could simply do is you can click these three staircases from this current layout and it just simply shows you your material, your plant, so on and so forth up there. You want to click item and then there's some additional fields there. So we'll just bring in storage unit and batch, highlight both of those, bring them over, they drop to the bottom there, go ahead and click copy and there you go. It now brings in the batch. So that's Tcode LX27, it's a very nice display of traffic lights. So we touched on red, obviously these have expired. If you had a yellow, it would mean, hey, maybe it's expiring in your warehouse in the WM environment, but not the total shelf life, so that would be a yellow. And then your green obviously means that you're in line or you're not in the potential of expiring yet. Another way to find this, if you do have shelf lifes, is just simply through Tcode LX02. So if you go into LX02, you can see all of your material listed in your warehouse and one of the fields that you can bring in, which is the last one here, is SLED or best by date. And it's just very nice here because, you could do some sorts, so if you have many different shelf lives within your warehouse you could just get all that same information here and it'll sort ascending, descending, however you want to have it displayed. The overall theme here is SAP will absolutely point you in the direction of your SLED, your shelf lifes, it has the stock removal strategy of picking by SLED or your oldest shelf life, right? So you don't risk picking materials that are just produced. So it'll point you to that batch, the one that's going to expire first. The system is only as good as your setup. Now, I can't emphasize that enough. If your material, if you're working in an environment such as like a floor stack area and working with shelf lifes, you want to be able to access that material from the back, because if you're going to continue to pile materials in the front, SAP will point you to that batch all day long, it'll point you to the bin, but you want to set your warehouse staff up for success in order to quickly access that batch and or material that's going to be expiring first. I've seen often too many times a lot of workarounds where it will propose that batch, that shelf life and the warehouse workers, just simply, out of bad practices, don't want to move six pallets in order to get to that one in the back, so they've worked around the system and just picked the one in the front. You really want to be disciplined when working with shelf lifes, utilize SAP, be disciplined to the process, and really pick that shelf life which is going to be expiring first. So, in summary we have covered how managing shelf life expiration dates are no easy task. But there are many tools and strategies to leverage in SAP. That enable us to manage and work proactively with expiring shelf life dates. Hey, once again Steve thank you very much. Fantastic stuff here and some great strategies shared on how to leverage SAP to assist within the management of shelf life. Folks again if you want to learn more about how to get the most out of your SAP system please check out our videos and of course if you have a suggestion or a question for us please submit it below.

DM; MM; PP; SD

MD06; MD07

Hey, folks, Martin here and in today's video we're going to be talking a lot about whether we should be using MD06 or MD07. So welcome to the video service that unlocks and reveals the hidden value in your system. Let's get cracking. So in this particular case we're going to look at whether an MRP controller planner or buyer should be using an MRP list, i. e. MD06 or a stock requirements list, i. e. MD07. It's a pretty common question, and the answer is both. This is one of the many situations where it truly is not an or, but rather an and. And it really helps with the day to day planning. Kristie, I know this is a common topic that comes up all the time, why don't you share some more details on this? Yes, I would love to. Both of these are fantastic transactions, and they are absolutely essential to a planner and buyer's life. They have a ton of similarities, but they also have some key differences. The best way to explain is to go in and take a look, but spoiler alert, and most of you have probably already noticed this. The MRP list is static, as of the last MRP run, great for managing the business of the day and for troubleshooting when something looks off. The stock requirements list is dynamic, it's alive, and it's keeping pace with the activities of the day. Also, as the names imply, the MRP list is only relevant for the materials that ran through MRP, and the stock requirements list exists for all of our materials. Both are very valuable, so let's go in and do a side by side comparison. Such a common question, do I use MD06, which is the MRP list, or do I use MD07, which is the stock requirements list. Let's go through some of the differences between the two, and I'm going to specifically focus on when we go in and we're seeing the exception monitor and so I'm going to point out some of the key differences to you. So the first one is that the MRP list is static as of the last MRP run. So as things are happening with your materials, they get planning file entries, and that tells the system that something has changed and it's time to go out and run MRP. And on a regular cadence, you may be running across your entire planning book, either on a weekly or monthly level, and going through and making sure that everything gets the opportunity to run through MRP. But in general, most of the time, you're going to see that you have different MRP dates out here for different materials, and you can see that clearly. So every piece of information that we see here is static as of that last MRP run. And if you have any challenges with your discontinuation process, very often you'll see older materials that are hanging out here with really old MRP dates where they haven't been pushed to the process in a while. Now this is a test environment, so you're going to see all kinds of different information. But we're just going to do a compare and contrast here. So, this is MD06, and I'm going to flip screens so that you can see MD07, I'll tell you we're going to go through the differences so that you can see on the screen what those are, but to make it really easy for you to tell which one I'm looking at, MD06 doesn't have any materials highlighted. MD07 I've highlighted some materials just so it's really obvious as we're going through here which one we're looking at. The other thing you can do is look down here in the lower right hand corner of the screen if it ends in 7. This is MD07, the stock requirements list exception monitor and if you look at this one, it says MD06, this is for the MRP list. So a couple of telltale signs that you are in and you are working with the MRP list, and this is also one of the big advantages, is first of all, you'll see the MRP date. We do not have this column in MD07 because it is dynamic. It is live as of the moment you enter the transaction, and the reason you see that little refresh button in MD07 is because it's as of the moment you go into the transaction. So you can go in and you can refresh right from there to make sure that everything is up to date or you'll get a queue to update your statistics. So it's collecting that data and information. But the other thing that you're going to see in MD06 or the MRP list is your ability to set the processing indicator. So as you are going through your morning ritual of reviewing your exception messages and cleaning up your planning results, as you're doing that, when you go through and you pull this in and you're working through your list you have the option to go in and click on the processing indicator. When you set this, then the rest of the day, when you go to run your MRP list, you can choose to exclude the items that you have already worked on. So this is for our folks who are either running classic MRP or are still on ECC. You no longer get an MRP list if you're running MRP live. So that is really powerful and important because it also lets you know how far you're making it into your day. And I don't know about you, but you know, there's interruptions all the time. So it's nice to be able to go, oh, yep, click, click. I've gone through and I've looked at that one and then I'm not going to see that come off until the next time that item runs through MRP, which means that there's been a change. Okay, so it will come back off though the next time that it runs through MRP. So you see here, we don't have those things. So that's one of the ways that we can tell that we are in MD07. A couple of other things you're going to see here is you're going to see your stock information and then you're going to see your forward days of coverage, or your receipt days of supply, as well as your exception messages. So if I come back over here to MD06, yep, same thing, I've got some master data elements, I have my inventory information, and then I have my stock days of supply with my forward coverage based on different parameters. There's a whole other couple videos on that to explain how to work with those because they're very, very powerful when they're set up correctly. And the next door to that is my exception messages. So here's the big question. Which one should I be working with? And the answer is both. You actually want to start your day with the business of the day. So you want to work with your MRP list first. What has changed since you went home last night? What is going on that needs attention today? Where are those new messages? And you're going to note that one of the big differences we'll see here is we're going to see a different group of exception messages available to us. So I'm going to tell us to go ahead and update our statistics. You always want to say yes, otherwise you're just going to get a gray screen, it's going to show you all of the different elements and all the different exceptions with no counts. And what you're going to see is we have some exception messages here that do not show up in MD07 because they're related to the MRP run. And those are going to sit in group 4 and group 8, okay? And really when you run your group 8s, instead of selecting it here, you want to actually choose it and find the materials and then choose that exception message group. All the rest of your exception messages, you're better to find them from here. But you're going to see things like newly created, an order proposal has been changed, an order proposal re exploded. You're not going to see any of those in your stock requirements list. You will see scheduling master data inconsistent though because that goes beyond the MRP run, that is a planning problem, so you're going to see that information over there as well. So it's really, if MRP isn't able to run, and it's information like, hey, hey, I'm just letting you know something changed and I want to let you know about it because it's really important because you gave me a job to do and I'm trying to get it done. So MRP is really good about communicating that to you and sharing that information. So let me flip over to the other screen and let's look at the same thing there. So I'm going to go to get into my binoculars and you're going to even see that the counts are going to be different. If I've filtered my MRP list based on a particular date range that it's run, I'll see some things there. So again, find an exceptions and you're going to see the list here is much shorter. We don't see the 8. We don't see the exception message group 4s. And those other three exception message numbers that tell us about what the MRP run was doing, because this is what is going on with this material active as of now. And the list in general is a bit shorter because this is the MRP list might have some things in there that are outdated if we haven't adjusted it based on the run date or if we haven't run any type of reorganization on the MRP list in a while. So, again, if your discontinuation process, if you put materials away and they're not clean, then the MRP list can start to look really, really messy and there's definitely an opportunity to go in and clean that up. And that typically, once you've got a good process in place, you're no longer creating that problem. Going through and doing that cleanup can be a big effort, but it's well worth it because it gets all the clutter out and the things that you're looking at are way more powerful to the buyer, planner, MRP controller that's working with it. So you're going to see a different group of exceptions here. So start your day with the MRP list, go through your materials, get your exception monitoring done, get queued up, make sure that you know what the planning results look like. If you're not happy with them, adjust your business rules and your master data to get good results and then let it roll. And then throughout the day when you're having conversations with folks, then you really want to be over here in the stock requirements list working on those materials. And whether you're doing that collectively coming through the screen that we're looking at right now or whether you're going in and you're choosing an individual material. So this is going to give us a work list or we could be working on an individual material. We can continue to add materials throughout the day to this list just by entering them in and then hitting, the refresh button. We are going to be able to generate that list. So live in the stock requirements list. Bring the work of the day, the problems of the day, the opportunities of the day to the forefront by looking at the MRP list so you know what has changed. That's your business of the day to work through first and then move over into the stock requirements list for the rest of your day to be able to continue to drive value. Excellent, welcome back. This is a great discussion and I love the good conversations we are having. We have more than one tool in our toolkit that supports our planning and as material planners, we definitely need to be using both of these tools on a daily basis. Today we jumped into SAP and did a side by side comparison between the stock requirements list and the MRP list. We compared and contrasted them and added some context on where each could be used. We also highlighted the order of attack, so using the MRP list to gather the business of the day and then moving on to the stock requirements list to help resolve particular situation as the day goes on. Both are invaluable and an MRP controller should have a home base for the work that we do in both of these transactions, right in SAP. Thank you Kristie, great differentiation. This is the workspace and there is so much capability right at our fingertips. We definitely need more conversation on both of these particular features but that's a good starting place for now. So folks, if you want to know more about this and see some more advanced videos on these particular topics, please check out our catalog and of course if you have a particular question or a need please submit it below.

DM; P2P; PTM

MD07

The best way to learn is by doing, so welcome to the video service that unlocks and reveals the hidden value in your SAP system. Martin here, and in this video, we'll be responding to a very important question about the exception monitor. Here's what it is. So, green means good, right? So, we've heard that so many times. Green means go. It's an interesting one, but I'd have to say that the answer is maybe sometimes. It may be good, but it also may not be good necessarily. And I know Kristie is going to take us away and tell us more about it. Kristie, tell us why we think green may or may not be a good thing. Krisite: You bet you Martin. The traffic lights in the exception monitor offer great insight into the stage of supply of our materials and the best part is how it's visual and we can catch it at a glance. Today we're going to go in and take a look at some examples of. Green lights and, we'll, let you in the audience be the judge of [00:01:00] whether a green light means good. We'll take a look at some healthy and some not so healthy green lights. We'll also review how to see if you have more red, yellow, or green lights, and how to know which green light needs some love. Away we go! So we've been taught our whole lives that red means stop, or sometimes bad, yellow means caution, and green means good. And in many cases, that is true, however in the exception monitor it is only sometimes true. So, here I am in MD07, I could be here either through MD06 or MD07. But I wanted the latest, greatest point of view on what is going on with our stock. And in this case ~um,~ what I want to talk about today are the green lights. But as a quick reminder, our red lights are the items that are at risk of service level degradation, where we don't have enough stock as of today to be able to cover our demand. The yellows are the ones that are in balance, but we need to continue to action them accordingly. And then the green ones are simply the [00:02:00] items that have a positive days of supply, and if you're ever not sure, you can always come to this Define Traffic Light button and click on it, and it's going to tell you ~what~ what will flag as a red, yellow, and green? And don't forget, not only do you have your current days on hand, but then you also have something called first receipt and second receipt. And what this does is it runs very similarly to an ATP check, you choose what portion of the pipeline is included in each of these. So whether it's incoming purchase orders or planned receipts, all of that good stuff. So there's a whole separate video on this you can go check out, but just know that that's out there too in terms of being able to see whether those red, yellow, and green lines make sense. Okay, and this is the SAP default, and if you click on basic setting, it will always restore it for you if you see something different here. But where this becomes really important is if we're looking at our green lights, anytime we see it drift into this 999.9, what that means is that there is more stock on hand than any of the demand that SAP has visibility to. [00:03:00] So if you don't have your demand loaded into the system, you may be seeing this a lot. Or, if you do have your demand loaded into the system, you have discontinued the item, ~um,~ but not wiped out all of the stock, then all of the stock has been relieved from your supply chain, then you may see it here. And, you could also see this ~um,~ if you are just replenishing way, way above what you're expecting to see. ~Um,~ And here, you've got your days on hand. So, this is 10 in this case, so we can see this item is plan to use the 600,000 pieces in the next 10 days. That's about how long it's going to last and down below, that 558 is going to last us about 30 days. Okay, so that may be very, very good. That might be very healthy for your supply chain, and those might be great numbers. But you do want to take a look at your green lights in conjunction with at least the stock days of supply. And then you can start to look further out once you understand how these are configured for your particular business. But definitely paying attention to this is very helpful. The other thing is you might consider is this an A, B, or [00:04:00] C class item? And based on that, if you have some rough inventory targets, you could use that to double check and make sure that it makes sense. And you could even do things like use the document evaluation reports for looking at range of coverage based on historical usage or future projected usage and get a good idea of how long that stock is meant to last. You can even run it for anything over ~um,~ X number of days and ABC classifications so that you can go in and see whether you're meeting those targets. And if you're not, then what you would want to do is you would want to come in and start to look at things like your minimum order quantity. You would want to take a look and see what's going on from a safety stock or a coverage profile. You can see that information here, maybe what's going on with your reorder point, okay? And that information is going to really help you to understand what is going on and how you can correct that situation. If you do find that you're overstocking, either based on your stock position now or after you start to receive your next round of goods in from your suppliers. So, super helpful to make sure that that [00:05:00] working capital is staying at the right level and just making sure that we go in and we take a look at this, and again, looking at your lights in conjunction with your current days on hand, how long that is meant to last you based on the visibility to the current demand. And if you don't trust that number then go over to document evaluation and take a look at your range of coverage, and again, you can break that down based on your ABC classification and start to get a good idea of whether that coverage actually makes sense for you, and then that is going to tell you whether green means good. And the conclusion is, green lights are not always good, but they are generally less urgent to act on than red lights, where we know that we're at risk of service level degradation as of today. Today we saw some good examples of. Good, not so good, and really not so good around healthy green lights. We talked through some options for identification and also some options for how we might resolve them. It's important that the supply chain has tension in it in order to make sure that we're in balance and taking a [00:06:00] deeper look into green light status definitely helps us to maintain that control. Thanks Martin. Martin: Thank you Kristie, love that. We love to think that green is always a go. So many things can factor into an unhealthy green light material status. Where are we in the product's life cycle? Our rules, our behaviors matching or not matching, our inventory policies and our cadence for review. We need to keep our pulse on this and make sure that we're maximizing the quality of our inventory investment. This is really a good one and we really appreciate the question. So thank you. So if you have more questions, please submit them below and we'll try and answer that and of course there are other videos that may be giving you more details around this.

DM

MD61; MD04

Hey there Reveal TV viewers, Martin here. Did you know that right in SAP demand management, you have the ability to store a separate special cause forecast. One of the most common questions we get asked on a topic of forecasting is, is it possible to reflect promos, upside forecasts or even just key customer forecasts is a separate entry line. You can, that way you can actually monitor your demand plan and make adjustments where appropriate. Here to take us through this work is Mike. Mike, what can you tell us more about this special cause forecast? Hey Martin. First, let's be super clear. What we're talking about is extra visibility through demand management in SAP. These are features embedded in standard SAP functionality. SAP is not an advanced planning solution, but a lot of organizations are very surprised by the capabilities they already own. Today we're going to focus on creating and maintaining a special cause forecast in demand management via the requirement plan, and we'll also walk through the settings and thought process on whether that special cause forecast should be actively transferring requirements or not. Let's get in there and take a look. So here we are in SAP's demand management, where the plan independent requirements are created. This is MD61 for those of you keeping score back home. Now, I bet a lot of you are familiar with this transaction, but you may be used to entering a forecast by material. Today we're going to be doing something a little bit different. We're going to associate this forecast with the requirements plan number. You can see here that we have two options and we're going to focus on the regular requirements plan today. Check this out. The requirement plan can be whatever is meaningful to you. Let's say Kroger is a customer and is collaborating on what their demand is going to look like. Maybe that plan's name is Kroger, or let's say it's for Kroger, but it's for a planogram, or maybe it's for a Kroger store set in 2025. It could be anything. Think of it as a logical way to be able to pull up and review the information. You also need to enter a plan. So let's do that, and this is super cool. You could also enter an MRP area more on that in a future video. We can control our forecast version and our time horizon and time buckets here as well by entering the time horizon and whether it should be in monthly, weekly, or another bucket. Once we've made those entries, let's hit enter. Okay, so here we can see that we can enter multiple materials and the forecast will be able to be grouped under the same requirement plan, which gives us excellent visibility right here in demand management. I am going to enter three materials for this promo plan. I'm separating them because if Molly, from marketing calls that she sometimes does, I want to be able to pull up this promo quickly and adjust it if I need to. The other thing I would like to see, this has a separate demand line in the stock requirements list, so I know that this is special demand. That way I can pay close attention to it. If it's event driven, then I know it's especially time sensitive. Although I do love all my demand kids the same , it also lets me easily see if we've got something in the past due and unconsumed so I can consult with my partners and decide if we should roll the unconsumed demand forward and see if it's still coming or to close it out. This is important care and feeding. Let me go back and show you one more thing. Let's say your customer gives you a forecast and you don't quite believe it. You could keep your demand plan and have these stored under a unique requirements plan number. You then can say, I believe the normal forecast, so it's going to MRP, and this is one from the customer that's all under this requirements plan number? I don't believe so, I'm not going to make it active. I just want it for quick reference and check for feasibility. This is a great example of commonly used series of transactions in SAP that may not be fully utilized. This is serious opportunity to get curious and explore. What would it mean to you if you could be on the phone with the key account and be able to pull up all the forecasts that has been loaded for them or be able to respond when you get a team's message from marketing that one of the promos isn't performing well and another was overperforming. And be able to make those changes quickly and easily. SAP is providing us with an opportunity for excellent visibility. As we talked about today there is care and feeding involved. For example, we have to make decisions on whether to carry or drop demand. Being able to do something like pull up the same promo from last year. That's awesome. And last but not least, being able to control which requirements transfer and drive replenishment and which do not is a game changer. Thank you, Mike. I just love that we're in control of what we execute to and obviously the conversations we are having to drive results. Very nice, thanks again. Hey folks, we actually have quite a few videos on forecasting and demand management. If you can't find it, use the AI chatbot and if you have a specific question for us, please feel free to submit it below.

P2P; PM

MC$G

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi Martin here, and in this video I want to focus on how to take advantage of SAP's spend analysis capabilities. When use correctly spend analysis can provide organizations with a comprehensive view of the spending patterns and enables identifying opportunities of cost savings as well as process improvements. This is one of the strategic capabilities available in SAP that helps us rise above the individual transactions and hone in on those opportunities. Kristie, how would you take us through a demo on this? You bet you Martin. Spend analysis is a powerful feature when you use correctly and in this demonstration we're going to focus on three primary things. First, we'll dive into spend analysis and explore some of the key figures that are available. Second, we'll take a look at how you use spend analysis tool to dice and slice and create tops list based on different characteristics. And lastly, we'll explore how spend analysis can help us to identify anomalies that's close and near and dear to my heart. All right, so one of the best ways that we can enable our sourcing strategy is to be able to go in and do some spend analysis and I think a lot of folks don't even know that this is here. So this is MC$G and it is my favorite transaction for going through and evaluating our spend with our suppliers, and you can see that this is a report that has a lot of different information in it. So in this case, we have it sorted by supplier. We are seeing our purchase order value over a period of time, so this is our last six months, this is the value of purchase orders that we've placed with each of these suppliers. It has our goods receipt value so this is how much we have received from those suppliers during those same six months and then it has our invoice amount, so it will have how much we have been invoiced over the last six months. And so depending on your terms and your lead time, you will see differences here because it's based on what of those activities has occurred over the last six months. One of my favorite things about the spend analysis is it also helps us to catch anomalies. So when we take this down to the material level, which I'll show you in just a moment, we can evaluate our purchase order price versus our invoice price. Now again, terms will cause some variation here but let's say that you've just gone through and you've done a quarterly or yearly update on your pricing and you want to make sure that you don't have any pricing issues. Maybe you've made a fat finger and you've added an additional zero, it happens all the time. You can catch that in your purchase order price, so you'll see something that is really outside the normal, you'll see it in your roll up of your purchase order value. So when you know that you've had a recent price change, you can use this to help you to detect anomalies and how that pricing has been loaded. The other thing that you can do, because there's lots and lots of key figures available to you, is you can come in here and you can see how you're progressing in terms of how you're using the more strategic pieces of the procurement suite. So contracts, quota arrangements, scheduling agreements, requests for proposals or quotations, all have entries here, and you can pull those in to see how you're using them, what the number of occurrences are during that same time period and evaluate how those particular pieces are getting adopted. So we can see here we have 39 contract items and I'm going to sort that in descending order, and so I can see which suppliers have contracts that'll let me see the suppliers. I can then go in and I can explore, I can drill in to see from here, I can explore what is going on from a material standpoint or material group, plant purchase organization or month. So I can see the month that those were issued in or the materials that they were issued against and that allows me to explore a little bit more of what's happening. And probably most important is just being able to do the general spend analysis. I'm going to back out here. These are our suppliers, I'm going to sort this by purchase order value, so the suppliers that we've had the most activity with are going to come up to the and then I can even go in here and do a tops list. So the top, however many. So I need to select the key figure I'm looking for, click on the top number, and I could do my top 10 or my top 20, and I can start to really take a look and see how my spend is spreading. Especially when we talk about doing something like material group, that'll let you see how effective your material group classifications are, think about grouping and prioritization and being able to get that signal, that's really important. One other important call out here is that you also want to take a look and see what's going on in terms of your free spend. So I'm going to go in here and just come in again. I'll show you what this looks like from the very beginning. You'll notice that this is coming in at the material level and you can see here that I have 5.5 million of my 16 million over the period of evaluation has no material number associated with it. So that's a free text PO so it's largely untracked spend, so as much as we can, we want to classify this. So the next level down for that would be to drill into that particular spend category. So watch the 5.5 million when I do this, I'm going to click on it and I'm going to say, okay, tell me the split out by material group. So you can see now I'm looking at just that 5.5 million dollars and I can see the split by material group. So I'm going to go ahead and again and sort and descending order, and I can start to see if I've got good buckets here that will allow me to get a signal in terms of being able to evaluate in my spend. And then I can come in here and I can drill in further to see what suppliers were involved. I'm going to do that and here's all my suppliers. Now again, I can sort descending order and I can run a tops list if I wanted to, bring that up to the top, and now I want to look at it by month. Now this is free text, a lot of times these purchase orders are for services and there's just one big PO but we'll see what we get here so I can drill down again. Again, I might be looking for anomalies or how my spend is flowing going by month. Okay, and now I can sort this in ascending order and I can start to chart this across time, so I can come in here to assign series graphic and I could actually look at my PO versus my goods receipt versus my invoice just to kind of see how everything is tracking and look at this across time. And then I can look for how those things are stacking up or where I have terms, I would expect to see some differences and I can start to see how the flow of my invoice that has been issued versus my goods receipt versus my purchase orders are lining up. So it really need to be able to do that and map it and start to get some signal out of the spend. We could spend hours talking about this, there's so much fun stuff in here that's really helpful to the process, but this is your spend analysis report an MC$G and lots of good stuff for you here in terms of being able to evaluate how that spend is slowing and also to detect anomalies in the process as you go. So in summary, we have covered how spend analysis allows you to. Be able to evaluate spend and trends over time. Detect anomalies and spend patterns, pricing and terms. And evaluate how we're doing with making smart use of RFQ's, quota arrangements and outline agreements. All really important stuff. Thanks Kristie. Through spend analysis we have an amazing ability to surface opportunities to manage our spend, refine our strategy, and ensure that our buyers have the tools they need to be successful day to day. So if you'd like to learn more about other features and functions in SAP please feel free to check out our other videos and of course if you have any further suggestions feel free to submit them below.

PTM; P2P

MD04; CM05

Hey there folks, Martin here. One of your guides to making the most out of your SAP system. Whether you're a beginner or a seasoned pro, today's video is designed to reveal functionalities that might just be a game changer for you. Let's dive right into it. In this video, Jake is going to introduce us to some tips and tricks for decision making when we find ourselves spoiled for choice and have to decide whether we will be making, buying, or transferring. Jake, this is an interesting topic, something you're very familiar with. Take it away. Definitely, Martin. The decision point on whether to make or buy is a classic. Today, we're also suggesting that it could be make, buy, or transfer. So when you're planning a material, the primary responsibility is in deciding how to supply the demand in the most effective way possible. So in today's introduction, I'm going to focus on a few key things. First, is the procurement key. This is the master data element that indicates that there is a choice to be made. Next, we'll talk about the different options that might be available. And then lastly, we'll highlight a few ideas on how to define the rules that guide that decision making. So let's go in and take a look. So here we are in everyone's favorite transaction to support critical planning decisions. MD04 or the stock requirement list. As a planner, we have a ton of different responsibilities when it comes to making sure that our materials are living out their best and most productive lives. And one of the most critical is determining how we're going to supply the demands. MRP gives us proposals for replenishment and exceptions for when we're out of balance. Most of the time these proposals have a clear source and MRP knows this based on the rules or the master data in the system. However, sometimes we have flexibility and while we do have a preferred source, we also have options. This helps to reduce risk in the process and provides for some flexibility. If we have an item that can be either made or procured, we'll have a special procurement type in place, look, we can see that right here. E is for internally produced and F is for externally sourced. We also have an option for X, which lets us know that this item can be either internally procured or externally sourced. A choice may be baked into the MRP run via a quota arrangement if we have some splits that we want to facilitate. That's great when that can happen as we see here. However, sometimes we have to make the decision. Let's imagine, for example, that demand suddenly goes up and the next plan's replenishment is from the supplier. They're not going to be able to expedite, so now we would want to look and see if we can transfer from another plant that has a less immediate need, or produce if we have the capacity and the components on hand. Now the opposite could also be true. Maybe we find ourselves overcapacity and we need to find some relief. That may be a great opportunity to do some cross plant rebalancing or get some capacity relief by deploying some of the replenishment requests out to the supplier. This is a great proactive activity that should be part of the midterm planning and the supply review or as a lead time intervention as part of the S&OE cycle. So a few tips. Make sure your picture in SAP is up to date and clear as possible. Look at your capacity overloads via CM05 and look for those opportunities to backfill for production. Understand the response time from the suppliers, or even the subcontractors, and review placement across the supply network to help each other out when the times get tough. It's really great to have choices, and I hope this opens up the conversation for future exploration. It's a real privilege to be in the driver's seat for planning, but it's not easy. And choices are awesome, but can also add complexity to the planning process. So it's really important that we can have the information we need, on tap in order to make smart and efficient choices. I love the flexibility that comes with a multi source environment and knowing that we can provide relief to whichever source is struggling is an awesome advantage. Thanks, Jake. That was amazing. Breaking it down like that. That was perfect. Thank you. So folks, if you want to know more about that topic, please check out our video catalog. And of course, if you have a specific question, our chatbot will be able to help.

WM

LS41; LP11

Hey folks, we know the best way to learn is by doing, so let's get right into it. My name is Martin, and today we're going to focus on specifically how and what are the options for staging materials from the warehouse to the production floor by using staging crates parts indicator. Wow, that's a mouthful. Steve, why don't you tell us a little bit more about it. I can only imagine that this option for materials or stored in crates may be best suited for specific industries. Is that correct? Exactly, Martin. Crate parts are typically small materials with large quantities, such as nuts and bolts, and are staged near the assembly line. These materials are typically consumed and even ordered in bulk. The big call out with crate parts is that quantity is predefined in the control cycle and requested independent or manually from existing production and process orders. Next, we'll go into SAP. Where I'll demonstrate how crate parts are defined in the control cycle. And how the replenishment process works. With staging crate parts, we'll first identify some of those PSAs and within the control cycle that have indicator 2 and or the crate parts. So we'll go into LS41 to identify some of those. Really, you can go about that a couple of ways. You can enter your plant here, obviously of 1000 for our demo, but if you knew your specific staging indicator, you could just select those and only those would come back. So in this case, we'll do just two of our crate parts. Go ahead and execute that and it lists all of our production supply areas, the materials that are in there, and you can see the indicator is actually a 2 there, there's our crate part. Now to kind of see the bones behind all these and what those quantities are, if you just double click to any of these here or single click, it then brings up the number of kanbans and quantities. Number of kanbans is really just the number of containers, so this is saying, hey there's 2 containers, each of those containers has a quantity of 20. So as we know these replenishments will be independent of a production order, it's really meant just for those production floor associates needing more bulk container, they would then request one. In order to do that, so this is the guts behind it, we'll stick with this material, to now replen, you'll have an LP11 here. So LP11 is going to be staging for specific crate parts. You can go ahead here, you can do this in the background or in the foreground. Once you enter your material, and we'll do a 100-300, and we'll go ahead and just execute this in the background and the plan date of today, this supply area, everything matches. I'm going to go ahead and hit enter, okay and the WM staging was then saved, you can see here. What that is going to do is then create an actual transfer requirement. So we'll go in for that same part, we'll go into LB11. LB11 is just to display the transfer requirements. Okay, and go ahead and enter and you can see it then created our open quantities for replenishing our kanban. It then references the actual PSA or that, and it has our movement type 319. Then we can go about and we can actually go from here and create these into TOs and have these go into the background for them to actual stage to that PSA. It then created that transfer order here from our transfer requirement, so I'm going to go in here and then all we simply have to do is then confirm that TO when it said 350, you go ahead there, I'm going to hit enter and there it is, it has our 100-300 going and replenishing from and to these actual production supply areas for a total quantity of 20. Go ahead and enter that, the transfer order has been created and we can go ahead and verify that in LS24, okay. And here we go right here it's got our decrement of 23 within our production supply area.Welcome back. In this demo. We've covered staging crate parts for production and process orders. Demonstrated how the replenishment takes place. This is one of the few staging options, so please tune into the other videos for staging to explore the best options and solution for your specific situation. Nice job, Steve, that was awesome. I'm actually very excited to continue to unpack the different staging options that are available in WM. So folks, if you want to learn more about what else is available in SAP in the Warehouse Management module, please check out the other videos, and of course if you just have a burning question, feel free to submit it below.

WM

LS41; LP12

Hey folks, welcome to the video service that unlocks and reveals the hidden value in your system. We know the best way to learn is by doing, so let's get going. In this particular video, we're going to focus on the options for staging materials for production with release order parts. So Steve, I know from the title, I am guessing the orders are staged upon releasing the production order or process orders. Is that right? In a way, they are, Martin. Release order part indicator is used to request materials that are needed in several production or process orders. Unlike crate parts, the quantity may vary or be inconsistent, therefore it's not predefined in the control cycle, as different production lines or work centers may require varying quantities. This is also one of the more efficient staging indicators as you are picking from the storage bin once and staging or dropping these materials in different production supply areas. So let's jump into SAP where I'll demonstrate how release order parts work for staging to production. Release order parts, what we'll do is we'll go into LS41 to identify these in our control cycle, we're going to go into plant 1000, we'll go and we'll enter our warehouse 001, and then we can go into our material staging indicator, and we're going to look for our release order parts. Go ahead and execute this, and this will just simply bring back all of the materials that are eligible to be released from a release order part perspective, meaning you'll release them, they're independent of your actual production order, there's going to be a requirement out there, but until we actually replenish this, that's when it'll trigger that TRTO movement to bring it over, you'll do one swoop though, of the required quantity for all production orders that are required for those materials, and then you drop it at the individual PSA. So that's how it's really different than PIC part, is you're grabbing that material once, and then it's going to look at all the requirements and then stage them individually at each production supply area that has any requirements out there. So to do that, if there's any out there, we'll enter a new session here and that replenishment aspect will be LP12. So LP12 pre populated our plant and then you would enter your supply area that's eligible for a release order pick, you can see there, 1310. It's then going to ask for the actual plan date of when that TR should be created. You have the option to create a TO automatically if you have that configuration set up, and then in this case, you would just simply hit your material staging or enter, and you can then enter any production orders if you had them at that point. It would trigger those TRs for those replens. So it's a little bit how the staging works for release order parts. Welcome back. In this demo, we've covered the use of release order parts. Discussed some of the benefits behind the indicator. And demonstrated how this works from release to staging at the production supply area. Thanks, Steve. I can certainly see the benefits for this staging indicator, especially from the standpoint of the time saving it can provide. So folks, if you want to learn more about SAP and other transactions that can save you time as well, please check out our other videos, and of course, if you have a specific question feel free to submit it below.

SD; MM; PP

MD04; CO09

Hey folks the best way to learn is by doing so. Welcome to the video service that unlocks and reveals the hidden value in your system. Hi, my name is Martin, in this video, we're going to focus on SAP's available to promise scope of check, and we're starting with what the requirements are to promise against what you have. I'd imagine I'd be preaching to the choir if I rattled off a stats related to being able to provide a quality promise to our customer. Being able to make a reliable and keep a promise to the customer in some areas is a right play and a competitive differentiator. So Kristie, without further ado how would you take us there? Thanks Martin. Today's topic might be a little bit controversial. Why of course you should be able to promise against what you have. Why would you not be able to do that? Sadly, the reason is that some of us do not have reliable inventory, let alone confirmed schedules for replenishment. If you are in this boat, not to worry. We're going to walk through what you need to do about it. So let's get into SAP. Let's explore the setup for the scope of check. Let's talk through the qualifiers for extending it, and let's understand the impacts. The most important thing is to be very honest about where you are, where you want to go, and why. This will lead you to the how and that's the doing that needs to be done before moving along. So today we're going to go in and look at some of the details around what we call a stage one scope of check. And what this is, the rules that we are putting in place to do our availability check to be able to make that promise to the customer and in this case the very starting stage of that is being able to promise against what we have. So that would be our inventory and you may be sitting there going, why are we even talking about whether we can promise against inventory or not, and that's because in order to be able to make a promise against inventory you have to have a degree of confidence that what the system says that you have is indeed what you have. So, if you don't have timely transactions, if you are not passing your cycle counts, or you're not doing them at all, there may be some cases where you have material that's just ineligible for even checking against what it says that you have, and that would be the first place to start to be on your journey to being able to get quality ATP is just simply starting with being able to promise against the inventory that you have. And, if you think about it, as we go through and we're making these promises, it's really the gateway to all the subsequent processes in the supply chain, right? Once we've made that promise to the customer, we want to make sure that we are moving towards trying to achieve it. And so, we've got a variety of videos in this series that talk through different stages of ATP and what the different requirements are and how we get further along in that journey. And so think about this as the very first one, so if you're getting started your ability to be able to promise against the inventory that you do have. Now, it's also really important to note that as you go through the process of making promises to your customer, that there are going to be a variety of times that you are going through and you're conducting that availability check. So sales orders first entered as you're going through, you're making changes to that order, if you're running rescheduling, in the background as a batch job, if you are going to move that sales order from sales order into delivery, then you're checking and potentially with a different rule set all together because there's two things that work together, it's the scope of check, which is what we're going to take a look at today and then the checking role which says based on what stage we are in the process, we would want to have different rules that apply. So let me give you the most simple example, so let's say that you're moving from sales order into a delivery. At the time that you're checking your sales order, you may allow it to check against something like production orders. That would be against scheduled, that would be a stage 2 check. If you were moving into delivery, you might say, Okay, well now that I'm moving into delivery, I want to make sure that I actually have that inventory on hand. So, you're actually restricting that check further because you're starting to put more things in motion. So, the first piece of information to your customer was a commitment, but it was data and information. The second time, you're actually coordinating physical activities. So, now you really want to make sure that before you start to commit that inventory fully to that delivery, that it is in fact on hand and ready to go. So, different process steps, different availability checks as you go through. So, if you're wondering where the availability check lives, a couple of different places in the material master, but we'll focus here today on MRP3, and you'll see that this lives in the same place where you're setting your planning strategy, which we know is how the system is going to react and respond to the demand signal, as well as your availability check down at the bottom. So this is the type of availability check that is in place. And what we're going to do here is we're going to go in and do the availability overview. So I also could have gotten to that right from the stock requirements list, I simply could have gone up and gone into the availability overview and I can get to that under the environment menu. But I can also just go directly in here to CO09, and in this case for my checking rule, I'm going to look at it based on the sales document, and I'm going to go ahead and pop in here, and so what this is going to tell me is what we have currently out there, and then what has been confirmed. And I can go in here and I can look at my scope of check and start to understand what we're checking against. And in this case, this is a very broad scope of check. It's very, very mature. And I'm going to break it down now for you into what this would look like if you were doing a stage one or kind of an inventory only. This means that I trust the inventory that I have on hand, but I'm a little less confident with anything that might be beyond that horizon. And you can see that our end of lead time here is 12/11, today is 11/27, so just about two weeks out into the future is what we're seeing, and you can see we have a total of 25 pieces coming in based on the production orders that we have out there with 19 pieces going out, but we also have zero stock on hand. So let me show you what it would look like if we were doing a scope of check that considered just inventory only. Okay, so if we think about this, so if you've not seen this before, these are the rules that apply to your scope of check, and you'll see the availability check up here. This is related to the scope of check that we're pulling, this is what we're seeing here, it's a rule set that is going to create the inclusions and exclusions for what we are going to account for in the ATP check. And then the checking rule, so when this is applied, in this case for a sales order versus a delivery, or if it was on the production side at the time that we do a planned order versus a production order create versus a production order release. As we move further and further along that cycle, we're going to want to restrict those rules a little bit more. So if we were counting only on our inventory, what we're going to see is a lot of population over here in the stock overview, and what these tick boxes are for the things that we want to include or exclude. For example, if we had high degree of confidence that our inventory was in pretty good shape, then we're going to allow for checking against inventory, and we might include our safety stock, we would generally recommend that, and then we can start to consider if it's stock in transfer, so maybe you have a sister facility that's really close by, inventory counts are pretty good, you can count on that coming in on time, and you might include stock in transfer, or you might include your quality inspection stock. So if you've got a good amount of reliability in your quality inspection process, and you know that those things are releasing timely, and everybody is going through and reviewing them, then you might be able to include quality inspection stock. Now, think about these as being in order, so for example, if you didn't include quality inspection stock and that was part of your process after goods receipt, then you wouldn't want to include anything in the scheduled horizon, like a production order or a purchase order that was coming in. So that's just a side note, it's very, very important. And then these next two include block stock or include restricted use stock. Just as a reminder, block stock in SAP terms is anticipated to not be available for use, so it's generally not going to be included. Okay, and so these are the things that fall into kind of the inventory that we have on hand, and then as we come over here, we see a combination of in and outward movements, and so in our next video about stage two, I'm going to talk through the incoming pieces, but we also want to consider outgoing, so for example, if you have a sales order, we're doing a sales order availability check. We definitely want to include deliveries because they already have stock that's associated with them and likely also sales requirements, so anything that is out there we've already promised against another sales document, we don't want to double dip on that. So those are the kinds of things that you would include, so if you're starting with the stage one, you're likely going to see include safety stock, possibly include quality inspection stock, that's the one you really want to consider, and then over here, you would likely include sales requirements and deliveries in order to make sure that you're fully accounting for what you have outbound as well. So the screen is a little confusing if you're not used to it because it is both in and outward movements but if you really think through the different descriptions here, or if you go any further explore the field, you will see additional information. We'll also have another video that will walk through the replenishment lead time, so stay tuned on that, but that is if you are making a promise against your replenishment lead time, let's say for example, you were in an environment where you really couldn't count on your stock, lead time was the better information for you, that was your only option that might be something that you consider if you're on an extended lead time situation where you've got a particular bottleneck or capacity constraint that you're working through and you're on an extended lead time, then that may also come into play for you as well. So, couple of different options there, but again, starting with what you actually have is the first step in trying to be able to make that and keep that promise. So when that order comes in, you might be accepting the requested delivery date. You might have an estimated ship date in mind based on your overall market stated lead time and then you're actually making that confirmation for go ahead as soon as that inventory is either in quality inspection or has been fully released into unrestricted stock. Welcome back. In this demo, we covered a few important things. First, the difference between making and keeping a promise. Second, what the ATP scope of check looks like. And third, a few of the variations on the most basic scope of check options and how the system reacts to them. It's a journey, and this is simply Step 1. Thanks, Kristie. ATP is an exercise of honesty, integrity, and commitment. It's also an ongoing journey that needs to begin with basics and then grow from there. There's no question this is a hot topic with a lot of differential considerations. Thank you for getting the conversation going, Kristie. Hey folks, if you want to learn more about this topic, ATP, or any other topic related to your customer service, please check out our other videos and of course if you have a particular question, feel free to submit it below.

SD; MM; PP

MD04; CO09

Welcome to the video service that unlocks and reveals the hidden value in your system. Hi, my name is Martin and we know the best way to learn is by doing so let's get into it. This video, we're going to focus on SAP's available to promise or ATP scope of check. So Kristie, we have introduced Step 1 already. If we were to sum it up, it was about promising against material you already have. Are you now going to explain to us the next step, which is promising against what we have scheduled? Why, yes I am, Martin. In this demo we're going to go back to the scope of check and look at some examples. Of what we would consider scheduled items. We're going to discuss whether we should or should not include them. And also how the system will react if we do. The integrity here is essential, we don't want to just make a promise we want to feel confident that we can keep it. Alright, I think we're ready for step 2 in our availability check. So if we think about available to promise as being the gateway into all the subsequent things that we try to do in the supply chain in order to satisfy that customer demand, what comes together to allow us to make a quality ATP check are all of these different pieces of this integrated diagram, right? So we have the requirements that we may be pre planning to so things like our forecast or orders, and then we are constantly getting new orders, and when we do that we're going out based on a rule set making a determination on what kind of promise we can provide to the customer. And it's not only what, but it's when, right? So we have to be at a certain point in our supply process before we're going to make that promise to the customer. So they may get some sort of estimated confirmation or acknowledgement up front, and then eventually they're going to get the actual full confirmation once we've hit that point. So just like if you were to go and try to place an order with Amazon and maybe they don't have enough units in stock, and so it gives you an estimated date or it acknowledges your order and then later fulfills the remaining information about when you're going to receive it. So in step one or stage one, we talk through inventory. So being able to promise against what you actually have. So that means that you have timely transactions, you've got good quality, robust cycle counting programs, you've looked at these materials and they're in pretty good shape, so you're ready to promise against what you have. Now we're going to talk about going a little bit further out into what we would consider some of the scheduled horizons, so things that we have on schedule. So that might be things that are externally procured and you're in a buy sell situation, these may be items from your supplier that have either been acknowledged by them or are in transit or on purchase order, it could be stock transfer orders or confirmed stock transfer orders, and it can be production, so it might be your production orders that are ready to rock and roll out on the manufacturing floor. So those are some of the things that we start to consider once we're into step 2 or stage 2. Now this is a big deal, getting there is an enormous accomplishment, it means your exception messages are relatively under control, you've got good housekeeping, you've got a good segment of materials we can go through and you can start to promise a little further out. You're doing capacity evaluation and leveling, you've got a finite schedule that's moving to the manufacturing floor. It's been through its pre flight checks so you know that you have material available, labor and capacity, and you're planning that really well and you're also sequencing it in a way that allows the manufacturing floor to go out and actually execute that schedule. So it's reasonable, realistic, and actionable. And at that point, when you have good schedule adherence and those activities are working harmoniously together, now we're at a good place where we can start to make those promises. And a lot of that is making sure also that you have the correct data or business rules in the system that match your business behaviors. So when we think about the anatomy of an availability check and we spoke a little bit about this in our last video. So if you haven't watched it yet, go back and watch the step one video where we talk about promising against inventory, we talk about the progression. So as you move from sales order into delivery, you will have a different level of finiteness in terms of what it is that you might want to consider. So once you get into deliveries you probably are at a place where you're checking to make sure you actually have that inventory on hand, you got stock and transfer from another facility, it's through quality inspection, whatever the case may be. But based on that level of confidence, because you're physically doing things with that product you're going to have a more stringent availability check versus a sales order. You still want to be really careful you're making a promise that you can keep and you're not making the promise until you're at a good level of confidence that you can keep it. But you have a little bit more room because really what you're flowing is information you're preparing to be able to execute that shipment versus the actual physical movement of the loading and pickpack process and transportation planning. And so there's a couple of different things that come together to form the scope of check, and that's the checking rule, so the stage of the process that you're in. So sales order or delivery or planned order versus production order create versus production order release and then the check in group that has been identified in the material master. Those two things, so the stage of the process and then the rule set that's been assigned, come together to build your scope of check. And in that, it's a list of inclusions and exclusions that help you to get to what is available to promise. And so that's both things that are coming in and things that are planned to go out like sales orders and deliveries that are already created and out there in existence. And so we're going to go back in and look at our availability overview here. So I switched materials on, I picked a different one this time, but I am going to go in and take another look at the scope of check and give you a little bit more explanation. Now, again, the scope of check I'm about to show you is very, very broad, it's assuming a very high level of maturity in the process and what I'm going to highlight for you here are some examples of what we would consider to be the scheduled horizon and how you should think about that. So, this particular material, so the end of lead time, it goes all the way out to the 25th of January, so that's almost two months out. You can see that we're planning on receiving 39 pieces between what we have already in place and what we have coming in on our next couple of planned orders. We also have 41 pieces that are expected to go out, 23 of those have been confirmed, so you can see we have a deficit here that we're trying to accommodate. So there's a portion of our total demand that we don't have any supply in place to cover that, that is going to pass the availability check. So you can see whether it's been confirmed or not right here. So this first order, all 15 pieces, the second order of the 5, only 2 have been confirmed and on the third order of the 21 only 6 have been confirmed. And we'll go through why that is in another video where we talk about the different options for confirmation. But what I'm going to do here is just pop into the scope of checks, if you've never taken a look at this, great opportunity for you to do that, and you'll see here there's all of these different considerations. And so when we were talking last time about inventory, we were talking over here on the stock overview, and we said typically you're going to include safety stock in that and then the next one to really consider are these two right here, stock and transfer. So if you have a high degree of confidence that those transactions are happening on a timely basis, that once something shows as in transfer, it's going to arrive at your facility in good time and in good accuracy. Same thing with quality inspection. If something is going into quality inspection, do you have a great deal of confidence that it's typically going to go off of quality inspection at the time you're expecting it to do so, and that the result of that quality inspection is generally pretty good. So those are some of the things that you would think through on the inventory side. That was a very quick recap of a longer conversation from a previous video. Once we come over here, now we're in more of the proposal stage, and I'm going to talk through some of the elements around schedules. So these are both your inward and your outward movements, and so if you come down here to this little section, reservations, dependent requirements, sales requirements, deliveries. For example, these are things that are other commitments that you might be making. So at the time of sales order create, you might do things like include delivery and sales requirements, depending on your environment that might also include reservations. When you get further along and you're in delivery, you may drop the sales requirements because that might span a very long period of time, maybe you've got sales orders out there for the next three months and deliveries out there for the next two weeks. So you want to be able to prioritize those requirements. You might drop sales requirements and just count deliveries. So considerations for what counts against your available balance for your outbound goods movements. And then we also have the piece where we want to start to think through what kinds of inbound we would want to include. And so this is going to be things like our purchase orders. It's going to be things like our production orders. And you'll see that there are different options for these based on the different level of firmness. So if we look here, you have the option. to either exclude production orders altogether, to take all production orders into account regardless of whether they're in create or release status, or to take only released production orders into account. So for example, a released production order is one that has been pre flight checked. So it has material, capacity, and labor available. It's been finitely scheduled, so it's been sequenced appropriately, and you have good schedule adherence, meaning that the production is likely to finish on time and move through the process at a quantity that is what the production order was requiring. So, those are the things that you would think about if you want to think about release. Now, if you're a little bit more confident, you could trust that the production order that was out there that had not been through all those processes, maybe it's in created status, but you've got really good adherence to the schedule, and even before you hit release status, you know that you're setting yourself up for success. You've got some materials that would be eligible there, then you can go a little bit further out and think about those production orders for inclusion. So similar thought process comes with purchase orders. So, what level of firmness does your purchase order need to be at before you would consider including it in your ATP check, and so you're going to want to look at what is going on with those suppliers and then be able to make a determination on how confident you are whether those purchase orders are going to arrive on time. So, really important to think through the different releases, levels of your production, and then also to think through how reliable those suppliers are for your procurement and whether you've accounted for lead times in all the right places. And the more your confidence builds in that, then the more likely you are to be able to go past just the inventory that you have on hand and now out into the schedule horizon where we really start to think through what it is that we have confidence in. And again, like all of our other master data settings, this is really around grouping and prioritizing, understanding how well that supply is under control, and how well our daily habits are working in terms of being able to use that cadence to keep the crazy chaos at bay and make sure that we're moving through the process in a good fashion. So step one with ATP, promising against what you have. Step two is being able to take a look at some of your scheduled elements like purchase orders that are out there with suppliers, the good deal of accuracy, stock transfers across facilities where you have a high degree of confidence, and production orders either in create or release status starting with release first and then working your way back into created. And if you can do that you're well on your way to a quality availability check where you can make and keep a promise. Whew! Okay, that was a challenging one to wrap up because there is so much to talk about, but the most important thing is being really honest on how predictable and stable the supply is. Today we explored a little bit of the scope of check. Got a good picture of what's considered scheduled. And discussed how we can be sure of whether we've got a fighting chance of including these items in the scope of check to make a promise that we can keep. Yeah, amazing, Kristie, thank you so much. Every client wants to know how to get here and be confident in what they are promising. So folks, if you want to learn more about ATP, scope of check, or be able to improve your customer service, check out our other videos and of course if you have a particular question submit it below.

WM

MM02; LX04

Hey folks, the best way to learn is by doing so welcome to the video service that unlocks and reveals the hidden value in your SAP system. Martin here, and today we will focus on the stock removal strategy M, which utilizes control and rounding quantity functionality. Steve, I know that control and rounding quantity is used in other areas within the supply chain. But is this feature and function in the warehouse the same thing? It absolutely is, Martin. This is one of a few stock removal or picking strategies that we used in the warehouse that I was running. This is an excellent strategy for faster velocity materials. Where SAP will automatically control and propose which bin to remove stock from, based on the quantity being called upon. The intention is to prevent your fixed bin from running low, and saves you a potential replenishment. So let's jump into SAP, where I'll demonstrate how this strategy works and show the required material master data. In this video, we'll cover stock removal strategy M or according to quantity. We've touched on some of these aspects in different videos, but really what we'll talk about is when to use this. I personally use this when I was managing a warehouse in a distribution center, and it is actually perfect for that. If you are in a high velocity type of building or environment, and really you have different picking modules or picking avenues per your materials. You also really need to know your carton quantity, your pallet quantity, and each's. So if you have all that and you meet that criteria, according to quantity might be your go to. So first we'll go into LX04 actually, and I'll just show you, it doesn't have to be a fixed bin per se. But I'm going to go into LX04, look at this storage type D02, look at the details behind it, and you can see, my removal strategy is set to M, or large, small quantities. And really, all that means is it's going to respect the control quantity and look for rounding quantities. My putaway strategy, however, is add to existing. So that's D02, but it's going to utilize additional information. So we'll talk about now the material master and that means, so I'll go into MM02, our default material that we've been using 100-600. We'll plug in WM1, WM2. Since this stock removal strategy is asking for specific materials, our, additional information, the control and rounding quantity. You have to enter that storage type here, similar to the fixed bin videos that we've touched on. So I'll enter D02. Without that, again, you wouldn't get this additional tab, this box here with this information. So really the way, according to quantity or the stock removal M strategy works is it looks at these two things. Control quantity, which we've again touched on in the fix bin videos and replen videos because one of the replenishments looks for control quantity threshold, but then it looks for this grounding quantity. So the difference really again, control quantity is going to look and set a threshold of plus or minus a certain quantity for a pick. And if it is below that, it will pick from that storage type. If it is above it, it will bypass it to a different rounding quantity. However, it will always pick in those increments of the quantity that you define. So really, if you know your carton quantities or like interpacks, you'd want to define that there. So the way we used this strategy in our warehouse, which was excellent, we had three different picking modules, as I mentioned, a mezzanine, which had a conveyor system running through it, which was really for your each's or kind of your your smaller picks. We then had case so bulk of our warehouse right in the middle was all racking where we pick case quantities or carton quantities. And then we had a floor stack area for kind of the bulk or the larger quantities of that. So if you have a pick come in, how do you define where it picks from based on the quantity? That's exactly using this strategy. So the way that we set this up is you would use those three storage types in a sequence. So your first storage type that you would do is just go here in your control quantity, and you want to define if you know your carton quantity, let's say it's 25, you'd want to do one less than that. So anything of 24 or less than a carton will drive from this first storage type. Our second storage type that we would define in our sequence in, let's say, now that we knew our palette quantities, so we knew that our carton is 25, and so we'll put in 25 as the carton quantity, and now our pallet quantity, let's say is a 100, so there's 4 cases of 25 on a pallet. You want to do again, one less than that. So we would do 99 here as our second storage type in sequence. And what this will do is since we would have saved our control quantity of less than a carton on the first sequence, any picks less than that carton will drive from that first storage type. So in our real life example that I went through was the mezzanine. It would drive all picks less than a carton there. The second sequence, if an order dropped for 25 or greater, 25, really up to a pallet quantity, it would then pick from the rack or in this case, so it would pick in increments of 25. So the strategy behind this is you don't want to break pack and that's really one of the biggest advantages of using this, is now you're reducing all that processing time, the cutting open the boxes and picking this, because it's going to round always and pick in increments of 25. And then again, you're controlled quantity of 99. And your third and final that you would do, no need for a control quantity there, right? Simply all you would do here is you would enter your rounding quantity as 100 or cases. And in this case, we were the hub of the Midwest, so we did a lot of transferring to other distribution centers. So this was fantastic because we would do all of our buying into our distribution center and then redistribute it back out via an STO. But the system then automatically, in those STOs would be in large quantities, would just pick those based on these palettes So that's an excellent use case and way to use this strategy for picking, if you have this type of environment. Welcome back. In this demo, you've covered how. Stock removal M, which uses a control and rounding quantity works. What master data is required. And some possible scenarios on when this may be used. Thanks Steve. I certainly see a lot of value with this picking strategy and how it proactively saves us replenishment from occurring and of course keeps your primary bins full and healthy. If we can do more of that and learn more about that in other videos, please check out our catalog. And of course, if you have a specific question or suggestion, please submit it below.

P2P

MD04; ME22N

Howdy supply chain enthusiasts, Martin here. And today we're on a mission to uncover hidden value in your SAP system. So buckle up and let's get started. In this video, we're going to discuss one of the most valuable communication and collaboration tools that SAP has to offer. Supplier Confirmations Order Acknowledgement. Kelly, I know this is a hot topic. Please tell us more about this and why specifically is it so important? You bet, Martin. This is a key capability in SAP that is often underutilized. but can really change the game in the quality of the information that supports MRP and ATP, and it does not have to be difficult to set up or maintain. You're probably getting a lot of this information already. In today's demo, we're going to highlight. How this first step in supplier provided confirmations, the order acknowledgement, allows us to know that the message has been received. Passes the baton to the supplier to provide updates if the situation changes on their end. And allows SAP to stay informed of those changes. Let's go in and take a look. I love this topic because it is all about creating visibility and getting everyone, including SAP, on the same page so we can plan well, make smart decisions, and manage exceptions. Communication is key and the order acknowledgement is the first past communication with the supplier. The first thing we want to do is determine what kind of confirmation we would expect to see from our supplier. We would set that rule with the confirmation control key. This is master data that can be set in several different records in SAP and it tells us what kind of confirmation steps we expect to take a PO through before receiving the goods. You can see here, we're in the stock requirements list. Right from this screen, I can see that we have a few PO lines that look different from the others. Do you see this reference here to a shipping notification? This PO has changed status because there is a confirmation from the supplier. Let's go in and take a look at that. Here's the PO in question and it's automatically taken us to the line item we were just looking at. You can see here that there is a tab called confirmations. In this tab, we can see the confirmation control key. This is going to tell us what the types of confirmations are that we expect to see as the PO lives out. It might be expected to receive an acknowledgement from the supplier that they have the PO in hand and will deliver as requested. Or, on a different date than requested. In which case, we might get the exception message, so we're alerted that the date provided does not align with the current needs. That's great! Then we can have that conversation if needed. The supplier may confirm but may need to break the shipment into two different dates. We can handle that right from the confirmation as well and we don't have to go in and create new lines on the PO. We have a need and they've provided a delivery schedule. Sometimes, especially on longer lead time POs, something will happen either on our end or the supplier's end, and they may need to confirm back a change to their prior commitment. Even if this is bad news, we want to know about it, and our exception monitoring will help us know the size of the problem or if the change is going to be okay. Over time, the back and forth with the supplier may become richer and you may choose other types of communication requirements like advanced shipment notifications. That's very helpful for knowing where the supplier is in the process. So you can know what options you have when you need to request the supplier's increase on an order, decrease an order, speed the delivery up, or slow the delivery down. If it's already on its way, that's a very different conversation than if it's not even due to leave the building for two weeks. Knowing where we are in the process and when we expect those communications to happen is key. We then have another level of collaboration that helps us to know if we're ahead or behind, or if the message was simply not received. So how do you get started? Select suppliers that you are regularly engaged with and who are sending you this type of information today, even if it's via email. The information can get into the SAP through manual maintenance. It sounds like a lot, but if you're regularly maintaining dates anyways, this may work for you. You could use an upload tool and some basic SAP list reporting to create an easy way to communicate your order book to your suppliers. Allow them to send it back and then upload it. Or, there are standard EDI protocols that can be used if your supplier uses EDI or a portal. Start small for big gains and just keep growing over time. So let's bring this home with a few key takeaways. The use of confirmations and specifically order acknowledgements supports collaboration. Through two way communication. And creates the visibility for MRP controller, MRP, and ATP. Back to you, Martin. Cool stuff. Thank you, Kelly. Getting this communication out of your email and into the system is a fantastic step forward in supporting the speed and the quality of data necessary to compete in today's market. So, thank you. So folks, if you're curious about this and other related topics, please check out our video catalog. And of course, if you have a burning question or suggestion, please submit it below.

IBP; P2P

MC$8

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, I'm Martin, and in this video we're going to focus on how to take advantage of SAP's supplier in full reliability capability. So when used correctly supplier in full reliability reports will help an organization improve supplier performance by monitoring the reliability of their suppliers delivery quantity commitment. This is all about in full portion of the on-time in full KPI. So Kristie, tell me more. For sure Martin. Supplier in full reliability is a powerful feature when it's used correctly. We often focus on the on time, but neglect the in full. In this demonstration we're going to focus on three things. How this reporting tool is set up to reflect the rules of the business for quantity thresholds. How we can control and define the period of evaluation and drill down to look at trends versus outliers. And where it may be helpful to look at our delivery tolerances to help reduce noise and then focus on our areas of improvement when the quantity deviations are truly meaningful. So there's a variety of ways that we can look at our supplier performance in SAP and we're going to be exploring a number of those in our upcoming videos. But this one is really focused around the in full component of on time and in full. So if you think about it from the standpoint of is the supplier reliable in terms of how they are delivering the quantities that we are requesting from them? So in this report, there's a number of key figures that are available to us. So you'll see here we have our suppliers going down the left hand side of the screen, and then over here we have these key figures. These are our quantity variances, and these are defined at the purchase organization level. So you'll set your quantity tolerances there, and then as you are receiving against the purchase order, it's going to go ahead and start bucketing those for you, and so the middle one is typically your exact quantity. So in this case we set up our tolerances to be 10% under or 10% over. So if the supplier is within that, then it's going to show up for us in this middle column here. That's the good column. Next to that, if we move to the left, this means that they are under-delivering, and in this case it's 10 to 20%, and then over further to the left is the next category, which is under-delivering by 20 or more percent. Same thing over here to the right, now they're over-delivering by 10 to 20% and we're over-delivering by more than 20%. So the other thing that this does is it helps us to really fine tune our tolerances and our tolerances really should be done by different commodity types. So as you're working through and you understand what the agreements are with your suppliers, but also looking at the industry information so you know what the typical under and over delivery tolerances are by commodity, that can really help. And why is this important? Because you do not want to get that phone call every time the purchase order hits the receiving doc that they're delayed in receiving it in because of a quantity variance that falls within standard. However, you absolutely do want that call if it's something that needs to be caught at the dock and so you can have the conversation with the supplier. So we want to alert on the things that are important and differentiate where it matters and not on the things that are within the acceptable tolerance range. It also reduces the lifting on the purchase order to go in and close out. So let's do a little something here. Let's go ahead and sort this, I'm going to sort in descending order, so this is going to bring to the top the highest number where we have been really under-delivering on our purchase orders. And then I can start to drill in and see what's happening. So this is at the supplier level right now. So what happened with the supplier that they had 93 occurrences. I can then drill down either by material group, by plant or purchase organization, by the supplier's country of origin, which could be really important or by month. And so I'm going to go ahead and break this out by month, we're looking at about a six month range here, and I could see, oh, all of this, every single one of those occurrences, something happened specifically in September. And then I could drill in here to see what materials or material groups were involved and go in here and grab the materials. And I can see it was all on one particular material. So now I have some information where I can go through and either go, oh yeah, that thing happened in September I am aware of what happened that's been resolved, we haven't had any recurrences, that's good, I'm checking to make sure that it's staying steady. Or it's been happening a lot, I've got several occurrences spanning several different months or several different materials. Now I want to go in and have a conversation with the supplier. The other thing that's great about this report is that it flows to your buyer negotiation sheet, which is really helpful for having those periodic meetings with your suppliers to talk about on time and in full performance, price performance, all of those different things. So very helpful, and you can look at that both from a supplier perspective as well as a material perspective. We'll take a look at our on time portion of this in another demo, so make sure you keep an eye out for that and I hope this was helpful. So, in summary we have covered how supplier in full reliability allows you to be able to. Have productive conversations with your suppliers on their performance and opportunities for improvement. What can we do to support their success? How do we know where we may need to take action to protect against variability and volatility? And lastly, the capabilities to drill down to evaluate outliers versus ongoing trends that really need addressing. Thanks Kristie. It sounds like it's all about communication and collaboration. If we can identify where we're struggling we can work together to improve, I love that. Okay, so if you'd like to hear more about this feature and other features in SAP please feel free to check out our other videos and if you have a specific video request feel free to submit it below.

IBP; P2P

MC$6

The best way to learn is by doing. Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Hi, I am Martin, and in this video we're going to focus on how to take advantage of SAP's supplier on-time delivery capability. So when used correctly, supplier on-time delivery reliability can help organizations track supply performance and collaborate effectively to improve that performance. This is evaluating the on-time portion of the on-time in full KPI and is so critical to an organization's success in planning effectively with their suppliers. Okay, so Kristie, I know this is a KPI that's near and dear to your heart, tell us more. I'd love to Martin. Supplier on time delivery reliability is a powerful feature when you use correctly, and in this demonstration we're going to focus on three key things. First, how we can set up meaningful thresholds that drive performance improvements. Second, the intelligence that comes from drilling down or evaluating trends across time. And third, how to open conversations with our suppliers to collaborate for improvement. There are a variety of ways for us to track our supplier performance in SAP, and this is one of the reports that will help us with that. So if you think about supplier performance for on time and in full, this is the on time report to help us understand what is happening. So this is MC$6, is the report that you would be after and you can come in here and you can run it by a variety of different selection criteria, by country of origin, by supplier, purchase organization, or plant, and then for a date range. And what it's going to produce for you is this little grid that lets you know how these suppliers are performing over that period of time, based on the delivery date tolerances that you've defined. And so once you've defined your delivery date tolerances and you're starting to receive information into these buckets, then you can rename these columns to reflect that. So I can tell you that this middle column here is typically what you would consider to be on time with whatever tolerances that you have set up, and then this might be a certain number of days early, and then beyond that. So let's say that this was 3 days early and then this was anything greater than 5 days early. Same thing over here, 3 days late, anything greater than 5 days late, and you're able to start to drill down and see what is happening. So let's take, for example, let's grab some of our suppliers that have been struggling with being a little bit late and I'm going to sort this in descending order so it pops everything up to the top, and I can come in here and actually start to drill down and see what's happening. So this particular supplier you'll see is actually a little all over the place, right? So they're very little in terms of being on time, but they've got quite a bit on both of the outer ranges. So then you can start to think through what could help that supplier to be able to improve their performance. The other thing that it will help us to do is evaluate our lead time performance and see if there are any adjustments that we need to make. So it's very important for us to be able to hold our suppliers accountable to their stated lead time, but it's also very important for us to plan according to the reality of when it is that they're going to deliver. So we'll have some other conversations around how to accomplish that in terms of your master data but what we can do right here is we can actually drill down and see where this problem is occurring. So I can go for this particular supplier and say, okay, how did they look across the month? Was there one particular month that they were struggling with or were there several, drill down by month, okay and so I can see the spread here. So really no deliveries yet this month and then if I look at the periods of evaluation spanning back across time, there are definitely some months that had more challenges than others. So the majority, for example, of the lates that fell into that mid-range happened in September of 2022, so something may have happened there. The other thing we can do is use this to help make sure that our processes are going well on the dock, that we're receiving things in, in a timely fashion, that our goods receipt information is accurate, real time and up to date, and that we're judging our suppliers fairly in terms of what we set out and expectations for them. So if I was curious what happened in the month of September, I could even go into this month and then I could drill down a little bit more. So when every time you're drilling down, you're looking a little further, a little deeper into that particular drawer, and I could go into material or I could go into supplier country of origin. I could even go in just by material group and start to work my way through what is actually happening. So just out of curiosity, let's see how many materials were involved in this. I'll choose material and let it roll and then I can see, oh, there was one particular material where we were having issues and that's going to explain the majority of it. So now I can think about what happened, understand if that was an outlier or an isolated incident, and then really focus on the trends. So things that are recurring month over a month, or where there's a variety of materials that are involved to see how we can help that supplier to be able to improve their performance. This will also flow through to your buyer negotiation sheet, which is great for periodic review in terms of on time and in full performance, as well as price performance, and you can look at that both from a supplier and a material level. So really good and helpful information to have when you're having those periodic meetings with your suppliers. So in summary, we have covered how supplier on time delivery reliability allows us to. Improve performance through collaboration. Identify where intervening measures are needed or necess. And define what on time means to our organization. There are so many tools out there for supplier scorecarding. The value of this analytical tool is that it's available right here in SAP anytime we wish to look at it, and by populating these structures with the definitions that are meaningful for our particular business and enables another valuable tool, the buyer negotiation sheet. Thank you Kristie. Using this feature opens a door for productive collaboration with our suppliers. Through this collaboration, we get miles closer to aligning our plans, schedules, and actual delivery. That's harmony for everyone. If you'd like to know more about this particular topic and another one that Kristie mentioned around buy negotiation sheets, there are many videos on this. Please feel free to go check out our video catalog and if you have any other suggestions feel free to submit them below.

P2P; PTM; DM

MC.9

Hello and welcome, future supply chain experts. My name is Martin, and today we're going to explore how we can tap into the untapped potential of your SAP system. Really dig deep. Okay, let's get going. In this video, we're going to be discussing a literal application of digging deep into your SAP data. There are two key features that are prevalent in many of the reporting analytic tools. Switch drilldown, and drilldown by. We have Jake in the house to support this today's conversation. So Jake, tell us more about these two powerful tools and what we can learn from them. Hey Martin, listen. It's all about organizing our data for easy review. But when to use switch, drilldown versus when to use drilldown by can be confusing at first. So as you say, the best way to learn is by doing, and in this case, we find it just takes a little bit of practice. The best way to gain some experience is to think through a real life question that you're trying to answer and then explore the different cuts on the data to surface the insights that you need. So let's go in and take a look. All right, welcome to this Reveal TV segment where we're talking briefly about using the switch drilldown and drilldown by functions in SAP. So let's go. First, we're in SAP and we arrive at a transaction where switch drilldown and drilldown by are available to use. For this example, let's use the MC.9 transaction. So we've entered in our selection criteria for analysis, such as the plant or plants in the date range, keeping in mind that this can be refined even further to what may be relevant to you or your team. One thing I love about SAP is how well we're able to refine these data sets. Next, we need to choose our starting point if it's different than the default, and that's switch drilldown. As with most things in SAP, there are multiple ways to get there. You can either get to switch drilldown in the top menu under View, or you can click this button. Now most of these buttons aren't labeled, so just hover your mouse to see what they do. Luckily for us, this one's conveniently spelled out for us. So let's say we want to begin at the plant level. So we click in the plant radio button, and then green check. This will list the plants for which we want to analyze one of our key figures, and those are the figures across the top. Now that we've chosen our starting point, I want to talk briefly about a question I often hear. If you remember, we had a date range in our selection criteria, and it's important to note that the numbers you see in the key figures are the sum of those dates for each plant during this chosen analysis period. So if this were your business, you might look at this start point and think, wow why are these numbers so high? And that's why. In the same manner, if we were to use date as a starting point, we would see the sum of all plants for each date in our selected range. So now let's utilize the drilldown by function. Like I said earlier, there's more than one way to arrive there. You can either click in the view menu or if you hover here, you see the drilldown by button. Let me demonstrate a common error here. You must choose a characteristic value in order to proceed. And those are these top level starting points. In this case, it's the plants. If we click the drilldown by button, you'll see a red error message if you miss this step. So now then, let's go deeper into one of these characteristics. Click in the field, click the drilldown by button, we're going to choose Month to look at the information over this time period. From here, we can slice and dice the criteria in a bunch of different ways, but we've chosen a plant, we've gone to the date, and now we see the data laid out over this date range. It's really great for spotting inventory or usage trends over time. As always, walk yourself through some real world scenarios in your business and share what you discover. You're not going to hurt anything by, going through these data sets and drilling down further into different areas. You're going to further refine your data and see what's going on? I'll end this by saying that we can find switch drilldown and drilldown by all over SAP. It's available in financial accounting, it's available in purchase to pay using, for example, transaction ME80FN, it's available in sales and distribution, which is OTC, it's available in order to cash in transaction VA05, it's available in plan to make, for example, transaction COOIS. So now when you see the switch dial down button from now on, you'll know what to do. Take a dive and be curious. So that's a little sneak peek or reminder on these powerful tools that help us organize our data to achieve insights. Some parting words of advice though. Go in and be curious. This is very safe functionality to explore. Just make sure that you're clear on what it is that you're trying to answer and the level of data that you're using to answer that question. Lastly, show and share. Get more eyes on what it is that you're doing and chat it through with your friends and colleagues. They may even have an idea or see something interesting that you can explore together. Thank you, Jake. That's personally a tool I actually use quite often. Something that helps me be able to drilldown into the actual answers to the key questions they may have. Very valuable. Thanks again, Jake. So folks, if you want to know more about these key features, feel free to check out our video catalog and of course, if you have a specific question, feel free to use our video chatbot, it will recommend some videos for you.

P2P; LOG; OTC

MM03; MD04; ME13; ME01

Martin: Hey folks, Martin, here we are in the midst of a quickly changing landscape when it comes to these tariffs. It's a lot to keep up with, let alone fully consume, and come up with a solid game plan for your business. It's tough. What we thought we'd do today is help with a quick list of practical tips to keep SAP up to date with all these dynamic adjustments . As an SAP community, we're all in this together and the more we can share about how we are coping, the better for each one of us. We need a beacon and who better to guide us and ground us than Sean? So Sean, guide us through this process, teach us what SAP can do to help us deal with these dynamic changes every single day. Sean: Thanks Martin, a timely topic of course. So well, folks, it certainly is storming out there. So many changes in such a short period of time. Today we want to focus on some of the key features in SAP that can help us. Let's walk through three pieces. The first is, let's talk about master data. Very key for keeping us compliant and setting us up for success. Second, let's discuss the changing of the sources of supply for those of us trying to move our business from one place to another. And last, but certainly not least. Let's discuss whether and how we might account for those changes in pricing to our customers. Now, some of you may have TM and or GTS in place, and that opens the door to a lot more functionality. Today's walkthrough is for those who may not have access to those tools. Let's get into SAP and brainstorm. Before we dive in, here are some ideas around actions. Let's review the master data that must be in place to ensure we're recording everything as we should, so that we are compliant as a business. Now, there are two key master data elements that provide the foundation. The first is the HTS code, and this lives inside of the material master. HTS it stands for harmonized tariff schedule, and it sets out the tariff rates by category for all goods imported into the United States. And similarly, most goods traded worldwide also follow a harmonized schedule. The second critical piece of master data is the country of origin. Now, country of origin can be maintained in the material master as we see here, or it can be in the purchase info record if it varies by source and can subsequently be maintained by a batch number in cases where there is more than one country of origin in play. In that case, the batch lets you track the country of origin, where it went, and on which order as well. So both of these pieces of master data, the HTS code and the country of origin should always be well maintained in order to meet regulatory reporting and compliance standards. You may also have some other customer restrictions on which they will accept or some other commercial agreements that need to be part of it. So with that, let's get us started now. Now many of our viewers are currently working on transitioning source from one country to another, and we know that's proved difficult as the tariff rates are continuing to change and evolve and will continue to do so as negotiations unfold or as our world leaders respond. In many cases it's not as easy as finding a US source. There's just some materials that are not readily available in the US and others that are much more costly to produce tariffs or no tariffs. If you have a transition in mind, therefore, SAP can help manage the timing of the transition from one supplier to another. The source list is a great tool for supplier qualification, control and timing and can be coupled with quota arrangements and outline agreements to help strategically manage the volume splits. Not only does this help with transitions, but it can also help with temporary, additional and alternative sources. And here we can see an example as we see it here on the screen. If you have a country of origin requirement for customers or in manufacturing, that's when you want that extra layer of batch management assignment to help manage those more complex environments. Now, let's think if you're changing source and want to go to an entirely new material number, you can use tools like material determination for incoming orders to push orders to the new part number or to split customer volume by country of origin. And this is handy in particular for use up scenarios, so you want to use things up and finish them out, it's very helpful in that regard. As things continue to shift and change, you're likely to experience shifting demand patterns. So be sure to update your demand plan with the best outlook you have and get that forecast into SAP where appropriate. In that regard, then pay close attention to your forecast performance and opening remaining items to sell that you've got already in your pipeline. Now we're onto the tricky one. How will these changes affect our customers? If you're considering a change, please just bear in mind, that you do not have to make a fixed price increase. You could consider a temporary surcharge that's easy to maintain or determine with solid price procedures. And that's going to be the subject of some further conversations. So folks, as we've taken a bit of a tour around SAP, I hope we've sparked your curiosity. I think it's safe to say that you'll be seeing more on this topic with deeper dives in the future. To recap a few critical points from our time together today. Maintaining the proper master data helps us to meet regulatory and compliance requirements. Now is a very good time to double check your work and make sure that you have the proper HTS code and country of origin on all of your products. This is always critical whether or not we're going through a round of tariff changes or not. And then really dig into how we can have SAP help you . From price conditions, to a reasonable approach to transitioning from one source to another, to really digging into the puts and takes of your demand plan. We can put SAP to work and managing the churn, quietening the chaos, and navigating the changes. Much more to come on this subject, folks. Good luck. Martin: Wow, Sean. Thank you. That was super comprehensive. So folks, if you are struggling to keep up or are managing some of these pieces Sean just walked through outside of SAP, I'd encourage you to phone a friend at Reveal and just ask some questions. We know that this is a challenge for many of us right now. Hey, folks, if you want to know more about this topic in particular or just other areas that you can use SAP to become more agile, please check out our video catalog or use our AI chatbot to find specific videos for you.

P2P; LOG; OTC

MM03; MD04; ME13; ME01

Hey folks, Martin here. We are in the midst of a quickly changing landscape when it comes to these tariffs. It's a lot to keep up with, let alone fully consume and come up with a solid game plan for your business. It's tough. What we thought we'd do today is help with a quick list of practical tips to keep SAP up to date with all these dynamic adjustments. As an SAP community, we're all in this together, and the more we can share about how we are coping, the better for each one of us. We need a beacon, and who better to guide us and ground us than Sean? So Sean, guide us through this process, teach us what SAP can do to help us deal with these dynamic changes every single day. Thanks Martin, a timely topic of course. So well, folks, it certainly is storming out there. So many changes in such a short period of time. Today we want to focus on some of the key features in SAP that can help us. Let's walk through three pieces. The first is, let's talk about master data. Very key for keeping us compliant and setting us up for success. Second, let's discuss the changing of the sources of supply for those of us trying to move our business from one place to another. And last, but certainly not least. Let's discuss whether and how we might account for those changes in pricing to our customers. Now, some of you may have TM and or GTS in place, and that opens the door to a lot more functionality. Today's walkthrough is for those who may not have access to those tools. Let's get into SAP and brainstorm. Before we dive in, here are some ideas around actions. Let's review the master data that must be in place to ensure we're recording everything as we should, so that we are compliant as a business. Now, there are two key master data elements that provide the foundation. The first is the HTS code, and this lives inside of the material master. HTS, it stands for harmonized tariff schedule, and it sets out the tariff rates by category for all goods imported into the United States. And similarly, most goods traded worldwide also follow a harmonized schedule. The second critical piece of master data is the country of origin. Now country of origin can be maintained in the material master as we see here, or it can be in the purchase info record if it varies by source and can subsequently be maintained by a batch number in cases where there is more than one country of origin in play. In that case, the batch lets you track the country of origin, where it went and on which order as well. So both of these pieces of master data, the HT S code and the country of origin should always be well maintained in order to meet regulatory reporting and compliance standards. You may also have some other customer restrictions on which they will accept or some other commercial agreements that need to be part of it. So with that, let's get us started now. Now many of our viewers are currently working on transitioning source from one country to another, and we know that's proved difficult as the tariff rates are continuing to change and evolve and will continue to do so as negotiations unfold or as our world leaders respond . In many cases, it's not as easy as finding a US source. There's just some materials that are not readily available in the US and others that are much more costly to produce tariffs or no tariffs. If you have a transition in mind therefore, SAP can help manage the timing of the transition from one supplier to another. The source list is a great tool for supplier qualification, control and timing and can be coupled with quota arrangements and outline agreements to help strategically manage volume splits. Not only is this going to help or does this help with transitions, but it can also help with temporary, additional and alternative sources. And here we can see an example as we see it here on the screen. If you have a country of origin requirements for customers or in manufacturing, that's when you want that extra layer of batch management assignment to help manage those more complex environments. Now, let's see if you are changing source and want to go to an entirely new material number, you can use tools like material determination for incoming orders, to push orders to the new part number or to split customer volume by country of origin. And this is handy in particular for use up scenarios. We want to use things up and finish them out, it's very helpful in that regard. As things do continue to shift and change, you are likely to experience shifting demand patterns, so be sure to update your demand plan with the best outlook you have, and get that forecast into SAP where appropriate. In that regard, then pay close attention to your forecast performance and opening remaining items to sell that you've got already in your pipeline. Now we're on to the tricky one. How will these changes affect our customers? If you're considering a change, please just bear in mind that you do not have to make a fixed price increase. You could consider a temporary surcharge that's easy to maintain or determine with solid price procedures, and that's going to be the subject of some further conversations. So folks, as we've taken a bit of a tour around SAP, I hope we've sparked your curiosity. I think it's safe to say that you'll be seeing more on this topic with deeper dives in the future. To recap a few critical points from our time together today. Maintaining the proper master data helps us to meet regulatory and compliance requirements. Now is a very good time to double check your work and make sure that you have the proper HTS code and country of origin on all of your products. This is always critical whether or not we're going through a round of tariff changes or not. And then really dig into how we can have SAP help you, from price conditions to a reasonable approach to transitioning from one source to another, to really digging into the puts and takes of your demand plan. We can put SAP to work and managing the churn, quietening the chaos and navigating the changes. Much more to come on this subject, folks. Good luck. Wow, Sean. Thank you. That was super comprehensive. So folks, if you are struggling to keep up or are managing some of these pieces Sean just walked through outside of SAP, I'd encourage you to phone a friend at Reveal and just ask some questions. We know that this is a challenge for many of us right now. Hey folks, if you want to know more about this topic in particular or just other areas that you can use SAP to become more agile, please check out our video catalog or use our AI chatbot to find specific videos for you.

QM; PTM; P2P; OTC; WM

MD04; MMBE; MB52

Hey there, welcome back Reveal TV community. Martin here. Today we're going to talk about the topic that no one really wants to talk about. Today we'll be discussing how to clean out the proverbial SAP junk drawer, also known as blocked stock. Now blocked stock in SAP is pretty straightforward, but we regularly see unconventional uses of this important stock status, leading to unnecessary exposure, tie up in working capital, and incorrect planning and promising to the customer. The bottom line of blocked stock is this it's an intermediary status that requires decision making and action. Here to add a little bit more context and clarity on this topic is Jayden. Jayden, why don't you tell us a little bit more about the better use of blocked stock and where to use it appropriately. Hey Martin, thanks for having me. So there's two things we need to keep in mind about blocked stock. First, it's a valid status that indicates that we do not expect to be able to use that product without another action occurring. By standard definition, it's not meant to be valid for use or relevant for planning. Second, if we don't stay on top of it, it can quickly build up and because it's not expected to be usable material, that can result in financial exposure in terms of over procurement or production. The thing with blocked stock is that it has a tendency to sit and we don't want that to happen. We want to use this status with its standard definition and rules and then make decisions that are followed with action. So let's go in and take a look. Here we are in SAP. I'm going to walk through a couple of transactions today. You can see where I am at by looking at the transaction code in the lower right hand corner of my screen. First, I'm going to head to MB52. This is a great transaction to see our perpetual inventory, and we can see loads of good statistics from here. This is one of the most commonly used transactions for inventory management, so many of you are probably familiar with MB52. It's a good one. Okay, now we're going to sort by materials that have blocked stock associated with them. Martin mentioned that we are making this video today because we've recently answered questions for a few organizations that have redefined the stock status. What I want to point out to you here is that there are so many options for how to classify our stock status and each has its own definition and rule set. We would recommend using blocked stock as it is intended. Do you have a situation that just doesn't allow for that? You can always reach out to us. We have a good material here and let's head over to the stock requirement list to take a closer look. Here we are in MD04 and we can see that we have the golden cubes up here in the corner. This means that we have stock and classifications other than unrestricted. By clicking on the cubes, I get a pop up that tells me what's in the blocked stock. We can see here that we have unrestricted, quality inspection, blocked, and several other options. Blocked stock is not meant to be relevant for planning use or promising. There is a clear difference between quality inspection, which is expected to have a positive outcome. It is expected to be available for the use in the future, and often has a date associated with it for the release of that lot. Blocked stock is assumed to require an action before being made available for use, such as rework or not to become available at all and require disposition. Let's go back to the golden cubes one more time. I want to show you one more place that is often helpful. From here, or from the Goto menu, We can click on the stock statistics, and that will take us to MMBE for more detailed information on this material, including things like batch number, storage location, MRP area, and many others. When we think about blocked stock, it is really intended to be a short term stopover. We want to keep an eye on the aging, so looking at something like MB51 to see how long that stock has been sitting is also very useful. From there, we can track the material movements and see where the stock came from, who worked on it, and how long it's been hanging out there. This, in addition to value and criticality, can help us get to the decisions flowing because the inventory, while in blocked, is definitely not. Blocked stock is an interim step. It's a white point. And sometimes, when we don't focus on keeping it moving, it can become a junk drawer. This is not where a cycle count write off from three months ago should be sitting for further verification. This is not where material that has failed inspection with no plan for rework should live. This is not where non conforming materials you intended to return to your supplier 18 months ago should still be sitting. We need to keep it moving through regular review and consistent monitoring. Blocked stock is a deviation from plan, schedule and actionable. If the blocked stock is reintroduced into the process, that is also an unexpected action, even if it's a positive one. So let's keep an eye on the blocked stock process and make sure that the decisions are constantly flowing and the actions are being realized as a result. Thanks, Jayden. I really appreciate you kind of weighing in on this and kind of sharing the topic of blocked stock and bringing some key insights to the table. So thanks. This is inventory that is not performing for you, folks. We know it's hard to say goodbye, but don't shy away from disposing it if that's really what's needed. And make sure we're communicating cross functionally with our partners in procurement, manufacturing, quality, engineering, warehousing ops, and of course, finance. You'll find what you need to make the right decisions for your organization. Hey folks, I know this is a hot topic so feel free to use our chatbot and you'll get a recommendation for other videos that are relevant to this particular topic of inventory planning.

P2P; PTM

MD04; MD03

Hey there supply chain enthusiasts, Martin here with a topic to help you tackle a beast of a challenge. SAP offers a variety of ways to tackle variability, volatility, and disruptions in the supply chain. From conventional static safety stock, to dynamic ranges of coverage, to safety time, they all have their place and purpose. And so long as you're not stacking them on the same material, all have a place in the planner's toolkit. But did you know that we also have something called dynamic or time period dependent safety time? This is an opportunity worthy of conversation. Hey Sam, I know you're here to talk us through time period dependent safety time and some of the ways it could be useful. Please help us understand what exactly it is and how we could use it. Yep Martin, it's a good question. We're always going to be dealing with challenges in the supply chain. The question is, what we can do to provide practical protection and risk mitigation without sacrificing inventory performance. So, we want to protect, but not be overprotective, and one of the things we need to consider specifically with safety time is that there are rules for when it should and should not be used. First and foremost, it should be specific in purpose and intended to be a temporary solution. With time dependent safety time, we can go a step further, and when we want to apply it, pre plan for a known temporary constraint, and then return it to normal. It does require a bit of setup and configuration, so think of this as a pre planned events or known time dependent constraints. And for those of us on S/4 and living in the Fiori world, there's an app for that that makes things easier. This is the beauty of solution for some of our most beastly challenges. Let's dive into SAP and explore, I'm excited to give you the tour. Let's go to homebase. Here we are in the stock requirements list and we're looking at a material that has had some challenges in consistent delivery. It currently does have some safety time in place. I'm going to go into the Material Master, head to the MRP2 tab, and scroll down a little bit. These are the current safety time settings. Having safety time in place means we want to follow the demand and not add additional inventory on shelf. But we want the inventory to appear to be due earlier. Now, we may be protecting against variability in demand, in which case we want it on the shelf early because we're not confident in the timing of the demand but we don't want to bring in more than what the demand plant states. Or, we have a process performance issue that we're trying to address. We know it may be late and we're working to improve the performance with that supplier. Safety time should be here for a specific reason and should be intended to be temporary. We can put a note in the material memo for what, why, and how long. The other thing we can do here in the stock requirements list is that we can toggle the safety time on and off to understand the impacts. Speaking of impacts, sometimes we know we've got a tricky situation coming up. Think port congestion at peak times, holiday season, Chinese New Year, things we would proactively go in and try to plan around or pull orders forward for. Well, when we do that, A, it's a beast of a job because we have to do all that manually or get creative, which can be risky, and B, MRP doesn't know why we're doing what we're doing and we get a ton of exception messages. Now, whenever we change key master data, which includes all safety stock , we're going to get some exception messages. There's always a transition period. But you don't want your exceptions firing up and telling you to delay something you've intentionally sped up because you need safety time in place. That is counterproductive. Now, you can see as we've been talking, I've been adding in time dependent safety time. And the beauty of that is that going to plan for a temporary beast of a challenge and then return planning to normal after it's through. It's candy season in Chicago and we can't get trucks. So, I've set this for November 5th to December 5th. Let's run MRP just to get a nice, refreshed line of sight on planning. Yes, yes, I'm sure. Run, baby, run. Okay, good job, MRP. Now, I'm going to go back to the stock requirements list , and let's take a moment to toggle safety time on and off. There we go. Hopefully a new trick to add to your toolkit. We live for aha moments and contemplative looks around here. I really hope this gives you some ideas around how to keep the system and the planning engine that is MRP up to speed on known periods of challenge. It is no fun having to go in and manually manipulate dates or expedite a process off cycle. This gives us an opportunity to plan in advance and meet the challenges in a more elegant way. After all, in supply chain, all we truly have to work with for planning is quantity and time. Hey Sam, thank you so much. I'm a big proponent of MRP running with a full deck of insight. So this is an interesting tool to add to the toolkit. It's a different way to rise to a common challenge. So thank you. Good stuff. Hey folks, if you are looking for some more details on this topic or others, feel free to use the chatbot to recommend some videos for you.

DM; P2P; PTM

MD04; MM03; MD02

Welcome to the video service that unlocks and reveals the hidden value in your SAP system. Martin here, and in this video, we're going to discuss the plan that follows the demand. Hmm, I'm not sure what to make of that. Don't all plans follow the demand, Steven? Clearly not. Take it away. Tell us more. You bet, Martin. SAP offers two broad categories of planning. Consumption based planning, so things like reorder point planning, consumption based forecasting, etc. And another category called deterministic planning. In deterministic planning, we're following the demand program and responding to that demand program following the rules of our planning strategy. This may include sales orders, stock transfers, forecasts, requirements that support our subcontractors or our own manufacturing. This is the type of planning that most of us are most familiar with. So today we're going to go in and take a look at how MRP follows the demand to determine what we need, how many we need, where we need it, and when. We'll also explore a couple of different MRP types, look at the results, and lastly we'll show how a top level change on the sellable goods affects the plan for a component. Now let's dive in and take a look. Now let's go look at this plan that follows the demand. This is the world that most of us live in. We have a demand program that can be made up of several different requirements, and we're having MRP respond to that demand to plan our replenishment. In essence, this is the point of MRP, to supply the demand. So here we are in our stock requirements list. We can see that this material has a forecast or planned independent requirement, and that it also has a plan for replenishment. Every time the stock level dips down too far, there's a response to try and supply. This is the plan that follows the demand. Now there are many master data rules that fuel the MRP engine, but two of the big heroes are the MRP type and the planning strategy or strategy group. Let's go look at the material master and find these fields. The first is MRP type. The MRP types fall into really two categories with many options in each. The first are what we refer to as deterministic planning, aka, the ones that tell MRP it's okay to follow that demand. The second fall into the category of consumption based planning. You have the option to plan based on history or consumption or future requirements. Let's stop by the MRP 3 tab now. This is where we'll see the strategy group that contains the planning strategy. This controls how we respond to or supply the demand. We could be make to stock, make to order, or assemble to order. There are lots of colors in this coloring box as well. Plenty of options to choose from, and we could get really deep into that pool. But the point for today is simply that they work together to produce the results. Now that we have some orientation, I want us to experiment a little bit. Let's do this. Let's go back to the plan and let's change it. We're going to go in and manually adjust the forecast for the purpose of this experiment. Just one period, nothing too crazy, but let's put in a big enough number that we can see the cascade of the results. All right, cool. Now let's run MRP. Yes, yes, we're sure. It's okay to follow that demand. Now let's look at the results. We can see here that a whole bunch of things happened. We have multiple requirement changes because the demand transferred throughout the BOM and then the supply plan was adjusted in response. Let's go look. So here's our top level finished good that we just adjusted and this is one of the materials that goes into making that top level item. This happens to be a phone case and the component is the plastic resin. When the plan follows the demand, and if the component also has an MRP type that supports following the demand, you have a fully linked and very responsive plan. Sometimes that's great, and sometimes it poses some real challenges. If you'd like to hear more about how to address some of those challenges, we have a series of videos coming that start with the word decoupling. Well, welcome back. I want to leave you with a few highlights about the plan that follows the demand. First, it's highly responsive to the latest information. Second, the supporting master data for planning is paramount. And lastly, as we all know, a squeaky clean system is foundational to allowing MRP and ATP to perform well. Let's get it right so we can plan with integrity and make promises we can keep. Thanks, Steven. Leaning into exploring the different options for how we plan exploring how data integrity and proper data rules actually matter and work together to produce the results we're looking for is definitely worth the undertaking. Hey folks, if you want to learn more about this topic and other forecast based topics, please check out our video catalog. And if you have any specific questions, submit it below.

P2P; PTM

ME2ON

Hey everyone, Martin here. And every once in a while, we have a transaction to share that surprises a lot of folks. And today we're talking about the evolution of the subcontracting stock monitor. This new version, which adds finesse and utility to raw functionality. I'm so excited to introduce Rutul to you, who will walk us through why this transaction is sometimes not present, and will share some of the key differences between both versions of the subcontracting stock monitor. Rutul, love to have you here today, take us away. Hello, Martin. Yes, I really like this new version of an always powerful, but not always flexible transaction. It's an excellent evolution. This transaction is the new place to be. People will like it much better and it has all the same fundamental elements. This is still a strong cockpit transaction. And it's great for supporting and achieving process adherence. Let's go in and take a look. Okay, I am in the subcontracting cockpit transaction ME2ON. I am going to run this transaction for my plant 3000. You could do that for multiple plants, or a single plant, or a vendor. You can choose how you want to run it. For this one, I am going to run for plant 3000 , click execute and right from the get go, it's a very different look and very different, feel from the subcontracting monitor. It's much better, much cleaner, and easy on eyes, right? But it also has a lot of additional information. So, first of all I am going to expand this line item here, and you will see that in addition to the material information and stock information and overage, where we are short, it also tells me the PO number. So, in cockpit monitor you do not have that information. Now, it also hassame functionality as monitor, but it has even more. You can still create deliveries, do post course issue, delete, reservation, stock overview, go to stock requirements screen that's also there in the monitor. But one of the cool things is that now you have PO number, a line item number, and so on as well. In this transaction, you can select a particular PO line item, and actually when you create delivery, click on create delivery, now you have, hey, you have this information already filled out. But the additional functionality here is that you can change your movement types, you can change your plant, storage location, shipping point. Those pieces of information you can change and make a decision on whether we need to change that or not, and then create before creating delivery. What it will also do is that it will tie this delivery directly into the PO,for the purchase order line item history. So now you can directly, quickly take a look at it, right? Then, you can also change your layouts, for example, if you are running for multiple plants, you can change the layout let's look at how you can do sort order. In a sort order, I want to look at my plant summation at the plant level and then I want to have the plant, the vendor, and the material. So I'm going to select the summation level subtotals as plant, I'm going select it, and I'm going to move it on top. So now you'll see the subtotals at the plant level, then the vendor level, and then at the material level. I'm going to click OK, and then you can have that. Then in addition, you can do the refresh list quickly. So if you are in this transaction for a while and you are taking a lot of different decisions and a lot of different actions, you want to refresh the data so that it actually refreshes the information for you as the other members are also making decisions and making changes you have the most up to date information as well. You can also go to the stock requirement list. Just like the monitor, you have your stock requirement list, all the information is already passed from the cockpit to the stock requirement list and now you are in your stock requirement list transaction . Okay, You can go to the stock overview, so the material number 2156, stock overview, and now you have 2156, the plant is 3000, and then how much quantity do you have on order, in unrestricted use, you have that information directly. you also have post codes issue capability, just like the other one. You can select, again, it will allow you to change the information, if you need to, and make the decision on the fly, rather than the fixed information that you have in the stock subcontracting monitor. Alright, these are some of the key differences. Cockpit transactions are all encompassing transactions that will allow you to do much more things than the subcontracting monitor. Welcome back. This new version of the subcontracting stock monitor. Really packs a punch. It acts as a single source of truth. Helps keep us on track, and closes the loop on the entire process. That's good stuff, Rutul, thank you so much. Subcontracting is a valuable and much needed opportunity for many organizations. So much so that we're actually releasing a whole series of videos to support this specific conversation. Thank you again for sharing your thoughts and experience with us today Rutul. So folks, if you want to learn more about the subcontractor monitor and this whole series of videos we're going to have around this, just check out our video catalog. Of course, you can always use the chatbot for any kind of help you need.