Transportation and Shipping

SD2003 - SD Transportation &

Shipment v 1.0

SD Transportation & Shipment

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SD Transportation & Shipment

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Purpose

Transportation and Shipment are the essential elements in

the logistics chain. It affects both incoming and outgoing

goods.

Effective transportation planning, ensure that shipments are

dispatched without delay and arrive on schedule.

Use

The transportation function can handle planning and processing of

outbound shipments (also inbound shipments) , thus, control and

monitor the entire process from warehouse to the customer’s site.

In shipping processing, all delivery procedure decisions can be made

at the start of the process by

1. Taking into account general business agreements with your customer 2. Recording special material requests

3. Defining shipping conditions in the sales order

The result is an efficient and largely automatic shipping process in

which manual changes are only necessary under certain

Challenges

Delivering on customer commitments, are increasingly critical to

revenue, profitability and customer loyalty, for the transportation and

logistics providers. This is especially true in environments where

competition is intense, costs are rising and margins are dwindling.

By deploying workforce management technology such as

sophisticated dispatch, scheduling, mobile, and GPS solutions,

implementing ERP packages, leading companies around the world

are dramatically improving service capabilities, competitive

SD Transportation & Shipment

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Transportation Process Overview

.

Post Goods Issue

Create Output of Deliv ery List

Create Output for packing List Billing Document TRANSPORTATION PROCESS Confirm Transfer Order

Transportation Planning Point

•

Transportation planning point consists of a group of employees responsible

for organizing transportation activities

•

Each shipment is assigned to a specific transportation planning point for

transportation planning and shipment completion

•

The transportation planning point is assigned to a company code, but

Prerequisites for Transportation

For a delivery to be relevant for transportation , the pre-requisites are as

follows:

 The delivery type must be flagged as relevant for transportation in

Customizing.

 All the Outbound deliveries must contain a route.

 The routes of the deliveries must be flagged as relevant for

transportation in Customizing.

 The transportation blocking reason in the delivery header must be

blank.

Shipping Process Overview

Shipping processing include:

 Monitoring of deadlines for reference documents due for shipping (eg, customer orders and PO)  Creating and processing outbound deliveries

 Monitoring goods availability

 Monitoring capacity situation in the warehouse

 Support for picking (with link to the Warehouse Management System)  Packing the delivery

 Printing and transmitting shipping documents  Processing goods issue

 Controlling through overviews of:

- deliveries currently in process - activities still to be performed

Goods  Issue Shipping Document Packing Picking

Shipping relevant functions

Shipping Point Determination Route Determination

Scheduling

Shipping Point

Monitoring Shipping due date Creating the Delivery

Shipment Types

 Individual Shipment

An individual shipment can have more than one delivery , one point of departure , one destination and only one mode of transport

• Collective Shipment

A collective shipment can have more than one delivery ,multiple points of departure , many destinations but only one mode of transport

 Transportation chain

A transportation chain can have more than one delivery ,multiple points of departure , many destinations and multiple modes of transport

Shipping point Mumbai Customer Kolkata Shipping point Mumbai Customer Kolkata Customer Nagpur Delivery 1 Delivery 2 Delivery 1 Shipping point Nagpur Customer Chennai Port of Departure Mumbai Port of Destination Chennai

Shipment Document

The shipping document is the central element of transportation planning & shipment

completion. It contains all the information necessary for carrying out transportation.

We can use shipment documents to:

 Combine deliveries into one inbound or outbound shipment

 Specify shipment stages

 Legs

 Border crossing points

 Load transfer points

 Assign goods to handling units

 Assign service agents

 Specify planned transportation deadlines

 Record actual transportation deadlines

 Specify output required for transportation (such as shipping papers or EDI

messages)

Freight Code Determination

Determining the freight code is carried out in two steps:

Step 1

• Automatic freight code determination uses the following criteria:

• Country of origin

• Shipping type (truck, rail, etc.)

• Forwarding agent (forwarding agent freight group in the vendor

master)

If an external transportation planning system is being used, then the

freight code set can also be defined by the route.

Step 2

• Automatic freight code determination uses the following criteria:

• Freight code set

• Material (material freight group in the material master)

• This allows you to determine the freight codes of all materials in a

shipment.

Creation of Shipments

Shipments can be created by choosing deliveries according to certain selection criteria

and then assign them to the new shipment.

Collective shipment are made to move goods from one or more points of departure to

one or more destinations. Separate document types deal with inbound and outbound

shipments.

You can use shipment documents to:

 Combine deliveries into one inbound or outbound shipment

 Specify shipment stages

Legs

Border crossing points

Load transfer points

 Assign goods to handling units

 Assign service agents

 Specify planned transportation deadlines

 Record actual transportation deadlines

Define transport-relevant texts

 Specify output required for transportation (such as shipping papers or EDI messages)

Deliv ery # ---- ---- ---- ---- ---- ---- ---- ---- Deliv ery # ---- ---- ---- ---- ---- ---- ---- ---- Deliv ery # ---- ---- ---- ---- ---- ---- ---- ---- Deliv ery # ---- ---- ---- ---- ---- ---- ---- ---- Deliv ery # ---- ---- ---- ---- ---- ---- ---- ----

Automatic Leg Determination

Importation characteristics for Automatic leg determination are :

Point of departure

Destination point

Service agent

Shipping type

Leg indicator

Shipment cost relevance for the leg.

Depending on the shipment type, the leg will be automatically

determined as soon as overall status of shipment changes to

“Planning completed”

Shipment Stages & Partners For Shipment Stages

Stages contain information about the geographical factors for a shipment. Shipment

stages can include:

Legs

A beginning point and end point is defined. For example, you can define main, preliminary,

and subsequent legs.

Load transfer points

The point where a shipment is unloaded from one means of transport and loaded onto

another.

Border crossing points

The point where a shipment crosses the border.

In a leg, the partner is the forwarding agent

at a load transfer point, it is the load transfer service

provider,

and at a border crossing point, it is the customs agent.

Stages of Shipment Border crossing point A B Partner: Forwarding agent

Border crossing point A

Partner: Customs Broker

Borde r crossing point A

Packing for Shipments

Packing is the process of assigning delivery items to shipping materials.

This produces shipping units, which can then have more shipping materials

added for packing.

In the standard system, two output types are set up for printing:

- Packing list (at delivery level)

- Shipping label (at shipping unit level)

Outbound Delivery

---

---

---

---

Pallet 1

Pallet 2

Container 1

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Text Determination For Shipment

The text determination procedures contain all the text types that can be maintained in

a text object .

The attributes of the text determination procedure vary for customer or document text

objects.

We can determine whether the text should be copied or referenced. For document

text determination procedures you we also specify whether a

1. Text should be obligatory (incompletion log)

2. Text should be determined automatically

Text Object belongs to ?

Document --- --- --- Customer

Output Determination For Shipments

We can set requirements to determine whether an output should be created, who will receive it, and which transmission medium should be used. The information that influences output

determination is stored as master data, in the form of condition records.

Packing List PL00 Shipping Order SA00 Material Tag WA00 Delivery Note Quality Certificate LQCA, LQCB Shipping Label 0001 Fright List LL00 Outbound Shipping Notification LAVA Example of Output types in Shipping Output Transmission Media Printer EDI SAP office Telex External

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Menu Path For Shipping & Transportation -

Configuration

SPRO  SAP Reference IMG Logistic Execution Shipping SPRO  SAP Reference IMG Logistic Execution Transportation

Shipping Point & Goods Receiving Point

Determination - Configuration

Define Shipping Conditions

Define Loading Groups

Assign Shipping Point

IMG Logistic Execution Shipping Shipping Point and Goods Receiving Point Determination

Shipping condition is a strategy for delivery, where, the system proposes the fastest shipping point and route.

Define Rule for Determination of Shipping

Point - Configuration

Assign Shipping Points IMG Logistic Execution Shipping  Basic Shipping Functions 

Define Rule for Determination of Shipping Point

Shipping Point is determined by Shipping Conditions, Loading Group and Plant . Delivery Type should be specified with Shipping point Rule

Define Routes - Configuration

Define Modes of Transport

Define Shipping Types

IMG Logistic Execution Shipping Basic Shipping Functions  Routes  Define Routes

Mode of Transport is a medium, by means by which cargo is transported, such as rail, road, air, or ship. A mode of transport used for goods entering a customs territory.

Transportation Connection Points -

Configuration

Define Routes and Stages

IMG Logistic Execution Shipping Basic Shipping Functions  Routes  Define Routes

A connection point can be one of the following:  an airport

 a border crossing  a railway station

Text Determination - Configuration

Select a text object and define the rules for text determination for this object.

Define the permitted Text Types for every text object. Define the Access Sequences.

Route Determination

– Configuration

Define Transportation Zones

_{Define Transportation Groups}

Maintain Route Determination

Shipments - Configuration

Maintain Transportation Relevance

Define Shipment Types - Configuration

Shipment types contain all the essential

control features for the shipment

document.

Default values, such as selection variant,

weight unit, output type

Transportation processing type, service

level and so on.

Control specifications for the partner,

output and text determination

procedures

IMG Logistic Execution Transportation  Basic Transportation Functions  Shipments  Define Shipment Types

Maintain Transportation Planning Point

IMG Logistic Execution Transportation  Basic Transportation Functions  Route  Define Routes

An organizational unit in Logistics for planning and processing transportation activities.

It organizes the responsibilities in a company according to, shipment type, mode of transport.

Defining Shipping Types

In this activity, you define the shipping types in combination with the mode of

transport.

The shipping types can include the following:

 Truck

 Truck with trailer

 Plane

 Ship

IMG Logistic Execution Transportation  Basic Transportation Functions  Route  Define Routes  Define Shipping Types

Shipment Execution And Monitoring

The Shipment monitor gives an overview, grouped by status, time, and date,

as to how much workload exists. In this way, the transportation planner can

react quickly to situations and also have a complete overview of the overall

status of all shipments.

Logistics Execution  Transportation  Transportation Planning  Lists and Logs

Create Master Data

Create Customer Master data

Logistics  Sales & Distribution  Master Data  Business Partners  Customer  Create 

The customer master is where the goods will be delivered and transport to from

the transportation point of view.

Create Vendor Master Data

Logistics  Material Management  Purchasing  Master Data  Vendor  Central  Create

Vendor master is the business partner who may provide transportation service

and is the business partner with whom the final transportation cost will be settled

in G82.

Creating Transportation Condition Records

Logistics  Logistic Execution Master data  Transportation Shipment cost  Prices 

Transportation condition records are the combination of the forwarding agency and condition type. Normally, it stipulates the detailed pricing information, such as how much it will cost for this forwarding agency to transport a certain weight of the goods.

Create Transfer Order

A transfer order is an instruction to move materials from a source storage bin to a destination storage bin within a warehouse complex.

Transfer orders include the following information:

 Material number  Quantity to be moved

Confirm Transfer Order

By confirming the transfer order, we verify the quantities removed from the warehouse.

During confirmation, it is possible to report differences in quantities. We can record the cause for the difference in the system by entering a difference indicator.

As soon as confirmation is complete, the status of the WM activities is set to 'C', regardless of the confirmed quantity. Only the pick quantity affects the picking status.

Create Loading Group Via

Delivery Monitor

Add Deliveries To The Shipment

Automatic Leg Determination

Depending on the shipment type, the leg will be automatically determined as

soon as overall status of shipment changes to “Planning completed”

The deliveries need to be assigned to the stages (Default assignment is in sort

order of the deliveries). This sorting can be manually changed.

Post Goods Issue For Shipments

Choose Logistics Execution Outbound Process  Goods Issue for Outbound Delivery 

Post Goods Issue  Collective Processing Via Outbound Delivery Monitor.

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VL01N Create Delivery wrt Sales Order

LT01 Create Transfer Order

LT12 Confirm Transfer Order

HUPAST Picking & Packing

VL06L Create Loading Group via Delivery monitor

VT01n Create Shipment

VL02N Post Goods Issue

VL71 Create Delivery output

VL74 Create output for Packing List

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Billing methods

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Various billing methods are used in the shipping industry, including:

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Freight on Board (FOB): free on board and means that the exporter delivers the

goods at the specified location. Example, FOB Kunming Airport (the exporter

delivers the goods at Kunming airport).

•

Cost and Freight (C&F,CFR, CNF): With no insurance. The exporter pays the

ocean shipping/air freight costs to the specified location. Example, C&F Los

Angeles (the exporter pays the ocean shipping/air freight costs to Los

Angeles).

•

Cost, Insurance, and Freight (CIF): Insurance, and Freight are all paid by the

exporter to the specified location. Example, CIF Los Angeles (the exporter pays

the ocean shipping/air freight costs to Los Angeles including the insurance).