Introduction:

Supplier Managed Inventory (SMI) in Supply Network Collaboration (SNC) is helping the customer to collaborate with their reliable and long term key vendors in terms of replenishment planning and purchase order collaboration, which in turn transfer some of the key responsibilities to vendors in the planning segment for replenishment planning

This document will elaborate the key components required to integrate SNC Supplier managed inventory with ECC in terms of Master data and customization.

Architecture and Process Flow in Supplier Managed Inventory:


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“PI” is extensively used as a middleware between customer ECC, SNC and Vendor ERP, SNC


Process Steps in Supplier Managed Inventory:


1.) Stock and Demand for a predefined horizon to SNC on a scheduled basis to support replenishment planning on the supplier side.

2.) Suppliers log on to SNC to view stock data and demand (in case of Web UI) or receive in their ERP in case of B2B connection.

3.) Create/Update Replenishment Order in SNC and Purchase Orders in ECC.

4.) Review/Transmit Purchase Order Information in ECC.

5.) Create ASN and cancel ASN in SNC.

6.) Retrieve ASN and complete Goods Receipt Process in ECC, in case of ASN cancel delete inbound delivery.


Why this integration is required:


1.) Inventory reduction in Customer side.

2.) Planning/purchasing can concentrate on other strategy task instead of doing routine task.

3.) Close integration with Supplier that enhance high integrity and responsibility.

4.) Completely Nil paperwork as purchase orders, shipping details are directly available in C-folder.


Since, SNC SMI is a vanilla product from SAP, it is having its own advantages over conventional customized solution like vendor managed inventory and other similar customized solution.


Master data and Transactional data in ECC side:

Organization data such as plant, Master data such as Material master, Vendor master, Info record, Approved manufacturer Part list (AMPL), Transactional data such as Contract, Scheduling agreement can be sent to SNC via core interface (CIF) by activating and processing integration model by using the following transaction codes,

1.) CFM1 – Create integration model

2.) CFM2 – Activate/Deactivate integration model

3.) CFM6 – Change integration model (Only for master data changes)

The following field level changes are required for each master data,

Material Master:

1.) Remove any type of MRP from MRP type in the MRP1 view

2.) Change the Lot size to “HB” in the MRP1 view.

3.) Maintain an entry in the field “Maximum stock level “ in the MRP1 view for Maximum.

4.) Maintain an entry in the field “Safety Stock “ in the MRP2 view for Minimum.


Point 3 and 4 depends on the stock data determination in SNC

5.) Maintain an entry in the field strategy group in the MRP3 view (either 10 or 40)


Vendor Master:


1.) Change the vendor master – Updating the POD relevant field with the value “A”

2.) Make an order entry check in purchasing org.data in the vendor master MK02 t.code

Customization settings in ECC:

1.) SMI PO document type


SMI process is required new Purchase order document type to differentiate from the usual procurement. The new PO document type need external number range set up in order to create a Purchase order from SNC. The following item categories can be assigned to SMI Purchase order type


1.) Standard ( ) 2.) consignment (K).

No purchase requisition document type is linked to this SMI PO document type


IMG—>Materials Management—->Purchasing—->Purchase Order—->Define Document Types


2.) SMI PO number range key and assign to SMI PO document type


New external number range key “XX” needs to be created and assigned to SMI purchase order document type.

IMG—>Materials Management—->Purchasing—->Purchase Order—->Define Document Types


3.) Confirmation control key for SMI


For SMI process, new confirmation control key “ZXXX” is required and it will create inbound delivery automatically when the ASN is received through Idoc from SNC. Also this “ZXXX” confirmation control key is “Always POD relevant”. Once the Goods receipt is completed for the corresponding Inbound delivery, ECC will send POD to SNC.

This confirmation control key is assigned to the confirmation category “LA” and it is relevant to “MRP”, “GR” and “GR assignment”


IMG—->Materials Management—->Purchasing—->Confirmations—->Set Up Confirmation Control


4.) Contract document type for SMI contracts (Optional)


New contract document type (ZXXX – SMI-Qty. contract) is required in case there are other contracts are available for different process. This contract document type needs to be assigned to Item categories standard ( ) and consignment (K).


IMG—->Materials Management—->Purchasing—->Contract—->Define Document Types


5.) PO output type for SMI Purchase orders


For SNC SMI process the following output types are required,

1.) ZXXX – SMI PO to C folder

2.) ZYYY – SMI PO update to SNC

ZXXX output type will be used for sending SMI PO PDf to SNC C folder

ZYYY output type will be used to update SNC once the SMI Purchase order is getting created in ECC.

Both are set up for both create and change SMI Purchase orders (Fine tune control)

Both ZXXX and ZYYY output types are assigned to access sequence.

IMG—->Materials Management—->Purchasing—->Messages—->Output Control—->Message Types—->Define Message Types for Purchase Order


Define Partner roles for Purchase order:


For the output type ZXXX and ZYYY the partner roles are needs to be configured, VN and LS

IMG—->Materials Management—->Purchasing—->Messages—->Output Control—->Partner Roles per Message Type—->Define Partner Roles for Purchase Order


Define Message Schema for ZXXX & ZYYY PO message types

New output types (message types) ZXXX and ZYYY are assigned to the procedure “RMBEF1”

New requirement key “9XX” needs to be configured and assigned to the message type (condition type) ZXXX and ZYYY respectively which in turn assigned to the procedure. This requirement key is used to identify the SNC system and related update.


IMG—->Materials Management—->Purchasing—->Messages—->Output Control—->Message Determination Schemas—->Define Message Schema for Purchase Order


6.) Define Texts for Purchase Order


Text for document item (item text) needs to be configured for the SMI Purchase order document type. It is required for operation 2 (change), document type (ZXXX), object (EKPO), Text id (F01)


IMG—->Materials Management—->Purchasing—->Messages—->Texts for Messages—->Define Texts for Purchase Order


7.) Requirement Key config (Routine) for SMI related PO output


Requirement key (routine)  “9XX” is required and needs to be assigned to the Purchase order output condition type (message type) under procedure.


IMG—->Materials Management—->Purchasing—->Messages—->Output Control—->Maintain Requirements for Message Control


8.) Vendor master POD relevant field setting visible for account group “XX01” (In case the POD field is not visibile in Vendor master)


The POD relevant field is set to optional entry for the account group by using the below configuration path. It needs to be maintained for the account group “XX01”, General data —-> Control segment


IMG—->Financial Accounting—->Accounts Receivable and Accounts Payable—->Vendor Accounts—->Master Data—->Preparations for Creating Vendor Master Data—->Define Account Groups with Screen Layout (Vendors)


In addition to the above, the POD relevant field is set to optional entry for the  transaction activity by using the below configuration path. It is required to for Activity (Vendors) transaction based as per below in General data —-> Control segment


Create vendor (Purchasing)

Change vendor (Purchasing)

Display vendor (Purchasing)

Create Vendor (Centrally)

Change vendor (centrally)

Display vendor (centrally)


IMG—->Financial Accounting—->Accounts Receivable and Accounts Payable—->Vendor Accounts—->Master Data—->Preparations for Creating Vendor Master Data—->Define Screen Layout per Activity (Vendors)


9.) Vendor master “Order entry by Vendor” setting visible for account group “XX01”


The “Order entry by vendor” field is set to optional entry for the account group by using the below configuration path. It is required for the account group “XX01”, General data —-> Control segment


IMG—->Financial Accounting—->Accounts Receivable and Accounts Payable—->Vendor Accounts—->Master Data—->Preparations for Creating Vendor Master Data—->Define Account Groups with Screen Layout (Vendors)


In addition to the above, the “Order entry by vendor” field is set to optional entry for the transaction activity by using the below configuration path. It is required for Activity (Vendors) transaction based as per below in General data —-> Control segment


Create vendor (Purchasing)

Change vendor (Purchasing)

Display vendor (Purchasing)

Create Vendor (Centrally)

Change vendor (centrally)

Display vendor (centrally)


IMG—->Financial Accounting—->Accounts Receivable and Accounts Payable—->Vendor Accounts—->Master Data—->Preparations for Creating Vendor Master Data—->Define Screen Layout per Activity (Vendors)


10.) Output type (OPOD) for Inbound delivery


Once the Goods receipt is completed for SMI Purchase orders, there is a requirement to trigger proof of delivery to SNC from Inbound delivery. For this, output type “OPOD – POD Confirmation” needs to be created and assigned to the Inbound delivery output procedure.


OPOD output type needs to be assigned to the access sequence “delivery type” and assigned to the medium “EDI” , program “RSNASTED” and form routine “EDI_PROCESSING”. The partner function LS is assigned to this output.


IMG—->Materials Management—->Purchasing—->Messages—->Output Control—->Message Types—->Define Output Types for Inbound Delivery


Define Message Schema for Inbound delivery:


Output type OPOD needs to be assigned to the procedure “E10001”

Requirement key  (routine) “17” needs to be assigned to the output type “OPOD” which in turn assigned to the procedure “E10001”


IMG—->Materials Management—->Purchasing—->Messages—->Output Control—->Message Determination Schemas—->Define Message Schemas for Inbound Delivery


11.) Configure Global Shipping Data – For Inbound delivery document flow update


For Inbound delivery document update and to update the goods movement status after Goods receipt is created against Inbound delivery, setting is required to maintain by using the following path. It is a Client level setting.


IMG—->Logistics Execution—->Shipping—->Basic Shipping Functions—->Configure Global Shipping Data MRP Types


12.) Inbound delivery item category link for POD relevant


Inbound delivery item category “ELN” is set for “X” – “POD relevant” and “V” – “Fully-Automated POD Processing” by using the below configuration path


IMG—->Logistics Execution—->Shipping—->Deliveries—->Proof of Delivery—->Set POD-Relevance Depending on Delivery Item Category


13.) MRP type for SMI


MRP type “X1”  (SMI Material planning) is required for SMI Process.  It is configured as a external planning. Remove all the internal planning parameters from the SMI MRP type and mark only external planning.


IMG—->Materials Management—->Consumption-Based Planning—->Master Data—->Check MRP Types


14.) WVM7 configuration


In SMI process, the SMI purchase order is getting created automatically from the replenishment order from SNC. In order to create SMI purchase order automatically in ECC there are certain parameters such as SMI Purchase order document type, Purchase organization, Purchase group, vendor, Plant needs to be maintained in a central table in ECC by using WVM7 transaction code.


15.) Core Interface (CIF) Master data changes – CFC9, BF11


CFC9: To send master data (material, vendor and customer) changes to SNC through CIF, by using the CFC9 transaction code “1 – ALE Change Transfer, Periodic”  setting needs to be done.


BF11: Chang pointer is set for the following


ND-APO – New Dimension PlugIn APO

NDI – New Dimension Integration


16.) BD54 – Define Logical Systems


The following logical systems are required for SNC interface

1.) XSNCXXX0X0 SNC Acceptance System

2.) XSNCYYY0Y0 SNC Development System

3.) XSNCZZZ0Z0 SNC Production System

Conclusion

In order to understand the complete SMI process, the above high level explanation is the first step to start and in case of any queries and clarifications requesting the aspirant consultants to contact the author without any hesitation. Further, one can leverage the topics available in help.sap

Supplier Managed Inventory for SNC-ERP Integration – Logistics – SAP Library

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Mohamed Hasan Rifaie M,  a Lead SAP consultant, an employee of Larsen & Toubro Infotech Ltd. He has overall 15 years of experience, out of which around 9 years in SAP Consulting (P2P, SRM, SCM & WM). He has business experience in various industries like Manufacturing, Electro mechanical Construction and Process industries as a Procurement Executive.

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