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Author's profile photo Ravi Yadav

Cost Optimization with Real Time Stock Status Update from SAP to MES


This document provides an overview of cost optimization through real time stock status update of raw materials from SAP to MES (Manufacturing Execution Systems), stock status in MES is referred by production floor personnel before consuming the stock in production.


Automation of production process and effective inventory management are two important factors in manufacturing industry. These two factors have high cost proportion in supply chain and this can be optimized in various ways. In a scenario where stock status of warehouse managed inventory is referred in MES before consumption in production, real time stock status information flow from SAP to MES leads to low cost and high quality of finished goods.   


To overcome this challenge SAP IDoc interface can be designed to send real time inventory and stock status report from SAP to MES. This interface would send records of relevant Transfer Order items to MES system at time of transfer order creation through IDocs. This will update the inventory and status of stock available in MES for production consumption.

Integrated Solution Approach:

IDoc triggering functionality is enabled through standard SAP configuration and it is further enhanced to control the field values passing to external system through ABAP development. Data between two systems is transferred through SAP IDocs. IDoc triggered through standard SAP configuration is having standard segments which store transfer order header and item data. You can add additional segment to pass field not available in standard segment.

            Any external system referred in production needs information of initial inventory created in SAP and any further change in stock status. Standard SAP configuration controls IDoc trigger functionality for relevant inventory movement types.

System Landscape:

SAP NetWeaver provides the seamless integration to support the communication between different systems through IDocs. Below diagram explains basic system integration model:

Sys Lands.PNG

As explained above, there is unidirectional information flow between SAP and MES through standard SAP IDocs.

Below two business process flows depict IDoc interface design for inventory creation and stock status change with different filter criteria.

Inventory Creation:

Real time stock availability report provides better visibility of inventory in stock for consumption which leads to low stock level and high cost saving. Standard SAP provides option to control the data transfer with parameters like warehouse number, source storage type, destination storage type and movement type. For any additional control parameters enhancement needs to be done in existing program. Below business process flow explains the interface design for transmitting inventory creation information from SAP to MES with different control parameters:

Inventory Creation.PNG

ABAP enhancement is required to restrict IDoc transmission specific to warehouse and material type in scope  . For inventory creation, configuration can be maintained in OMKY to include storage type and movement type in scope. Once the GR document is posted IDoc gets triggered at the time of Transfer Order creation and same information is passed to MES system.

Stock Status Change:

As shop floor personnel refers the stock status in MES system without the visibility of current status of material inventory on shop floor there is risk of consuming rejected inventory in production.

            Transmission of real time stock status information enable the supervisor to use the inventory with correct stock status and reduce the number of defective products. Below business process flow explains the interface design for stock status change information transmission from SAP to MES with different control parameters:

Stock Status Change.PNG

Configuration to trigger IDoc would be done in OMKY where you can maintain source and destination storage types, relevant inventory movement types for stock status change and destination system. All other parameters can be controlled through ABAP enhancement.

On production floor organizations use MES system and initial stock status information is stored in SAP. In such a close integrated production scenario transferring real time data is always important and challenging. This interface helps to transfer the real time stock status information from SAP to MES that increase the quality and reduce the cost of manufactured goods.

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      Author's profile photo Amala Srinivasa Rao
      Amala Srinivasa Rao

      Nice explanation Dear 😆

      Author's profile photo Deepak P.
      Deepak P.

      Very nice document!

      Author's profile photo Ravi Yadav
      Ravi Yadav
      Blog Post Author