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Business Processes – SAP Inventory Management, Warehouse Management and Transportation- Business Processes Requirement Gathering

Dear Experts –

This blog will be more useful for New consultants and Consultants in other module let’s say MM, IM, WM, SD,PM, QM to know what is happening inside PP module and how difficult and how interesting scenarios available in PP module;. One more thing without proper business Process requirement Gathering we cannot make success in client projects and We cannot reach their expectations. it is more important to get their thinking and requirement and we need to analyze – whether it is possible to map in SAP or not or really requires Z-customization or do we need really interfaces and many other factors are decided based on exact business process/requirement Gathering. we have several models to collect the client business Process and here in one traditional methodology is Questionnaire pattern.

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We need to give our sincere Thanks to SAP- because SAP had given their recommendation and suggestions for a consultant -“how to collect the business Process requirement from users..

Please refer below links

very beautiful document by SAP-

https://docuri.com/download/project_59c1e915f581710b286d02bf_pdf

https://gbeaubouef.wordpress.com/tag/sap-requirements/

 

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Tools for effective SAP requirement Gathering  https://www.liquidplanner.com/blog/7-tools-to-gather-better-software-requirements/

http://www3.cis.gsu.edu/dtruex/courses/CIS8670/Lectures-pdf/ERPRequrementsMngt.pdf  (Georgia state university)

I hope the Questionnaire Document will be more useful for New consultants to understand the Client business Process and area we need to find the Gap and solution to fix the Gap.

1.   Inventory Management, Warehouse Management and Transportation

 

Questions:

 

Q:   1) Who owns the inventory? To whom are the costs of managing the inventory allocated?

 

A:

 

 

Q:   2) At which level do you valuate material (for example, company level, plant level)?

 

A:

 

 

Q:   3) Where do you want to be able to analyze the inventory balance sheet?

 

A:

 

 

Q:   4) How does material move between plants?

 

A:

 

 

Q:   5) Do you use pallet identification for production supply?

 

A:

 

 

Q:   6) Do you use picking and packaging functions with scanners (radio frequency)?

 

A:

 

 

Q:   7) Do you prepare raw materials for a production order on a scale and do you have to ensure that exactly this material combination is used in the order?

 

A:

 

1.1. Goods Movements

1.1.1.  Reservation

1.1.1.1.   Reservation Processing

 

Questions:

 

Q:   1) Will you maintain specific material reservations (for sales, for production) for your stock materials?

 

A:

 

 

Q:   2) How far in advance are materials to be allowed to be reserved?

 

A:

 

 

Q:   3) In which cases would you want to use manual reservations?

 

A:

 

 

Q:   4) How long after the reservation date are open reservations canceled?

 

A:

 

1.1.2.  Inbound Shipments

1.1.2.1.   Transportation Planning and Processing

 

Questions:

 

Q:   1) Do you plan transportation yourself?

 

A:

 

 

Q:   2) Do you use any third-party transportation systems?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Describe your transportation handling in detail.

 

A:

 

 

Q:   4) What carriers do you use to transport goods?

 

A:

 

 

Q:   5) How do you select your carriers?

 

A:

 

 

Q:   6) How do you create shipments?

 

A:

 

 

Q:   7) Do you have Individual and/or Collective Shipments?

 

A:

 

 

Q:   8) Do you use one mode of transport per route or a combination of modes per route, e.g. road, rail, sea?

 

A:

 

 

Q:   9) Do you need leg determination?

 

A:

 

 

Q:   10) List all documents required to complete the transportation process.

 

A:

 

 

Q:   11) Do you record the progress of the shipment?

 

A:

 

 

Q:   12) If so, which ones?

 

A:

 

 

Q:   13) Is freight charged to the customers or is it absorbed by the company?

 

A:

 

 

Q:   14) Do you need to be able to enter your actual transportation data at a later point in time (for example, time taken, distance travelled)?

 

A:

 

 

Q:   15) How do you determine shipment costs (for example, kilometers, volume)?

 

A:

 

 

Q:   16) How do you carry out settlement accounting with the external carrier?

 

A:

 

 

Q:   17) Do you charge stores for the costs of using your own vehicles?

 

A:

 

 

Q:   18) Do you handle several deliveries for different ship-to parties in one single shipment?

 

A:

 

 

Q:   19) According to which criteria do you group deliveries for one shipment?

 

A:

 

 

Q:   20) Do you have your own vehicles or do you use external carriers?

 

A:

 

 

Q:   21) What do you use as a basis for scheduling your vehicles or the vehicles of your external carrier?

 

A:

 

 

Q:   22) How do you respond to capacity constraints? Describe the contractual conditions.

 

A:

 

 

Q:   23) Do you require shipment documents for physically transporting the merchandise? If so, what form of document (e.g. paper, EDI)?

 

A:

 

 

Q:   24) What information do these documents contain?

 

A:

 

1.1.2.2.   Shipment Cost Calculation and Settlement

 

Questions:

 

Q:   1) Is freight charged to the customer or does the company absorb the cost?

 

A:

 

 

Q:   2) How do you calculate your freight costs (freight pricing procedure)?

 

A:

 

 

Q:   3) Are you using multi-dimensional scales for freight calculation?

 

A:

 

 

Q:   4) How do you post your freight costs to accounting?

 

A:

 

 

Q:   5) Do you verify invoices for your forwarding agents? If so, which rules do you use?

 

A:

 

1.1.3.  Outbound Shipments

1.1.3.1.   Transportation Planning and Processing

 

Questions:

 

Q:   1) Do you plan transportation yourself?

 

A:

 

 

Q:   2) Do you use any third-party transportation systems?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Describe your transportation handling in detail.

 

A:

 

 

Q:   4) What carriers do you use to transport goods?

 

A:

 

 

Q:   5) How do you select your carriers?

 

A:

 

 

Q:   6) How do you create shipments?

 

A:

 

 

Q:   7) Do you have Individual and/or Collective Shipments?

 

A:

 

 

Q:   8) Do you use one mode of transport per route or a combination of modes per route, e.g. road, rail, sea?

 

A:

 

 

Q:   9) Do you need leg determination?

 

A:

 

 

Q:   10) List all documents required to complete the transportation process.

 

A:

 

 

Q:   11) Do you record the progress of the shipment?

 

A:

 

 

Q:   12) If so, which ones?

 

A:

 

 

Q:   13) Is freight charged to the customers or is it absorbed by the company?

 

A:

 

 

Q:   14) Do you need to be able to enter your actual transportation data at a later point in time (for example, time taken, distance travelled)?

 

A:

 

 

Q:   15) How do you determine shipment costs (for example, kilometers, volume)?

 

A:

 

 

Q:   16) How do you carry out settlement accounting with the external carrier?

 

A:

 

 

Q:   17) Do you charge stores for the costs of using your own vehicles?

 

A:

 

 

Q:   18) Do you handle several deliveries for different ship-to parties in one single shipment?

 

A:

 

 

Q:   19) According to which criteria do you group deliveries for one shipment?

 

A:

 

 

Q:   20) Do you have your own vehicles or do you use external carriers?

 

A:

 

 

Q:   21) What do you use as a basis for scheduling your vehicles or the vehicles of your external carrier?

 

A:

 

 

Q:   22) How do you respond to capacity constraints? Describe the contractual conditions.

 

A:

 

 

Q:   23) Do you require shipment documents for physically transporting the merchandise? If so, what form of document (e.g. paper, EDI)?

 

A:

 

 

Q:   24) What information do these documents contain?

 

A:

 

1.1.3.2.   Shipment Cost Calculation and Settlement

 

Questions:

 

Q:   1) Is freight charged to the customer or does the company absorb the cost?

 

A:

 

 

Q:   2) How do you calculate your freight costs (freight pricing procedure)?

 

A:

 

 

Q:   3) Are you using multi-dimensional scales for freight calculation?

 

A:

 

 

Q:   4) How do you post your freight costs to accounting?

 

A:

 

 

Q:   5) Do you verify invoices for your forwarding agents? If so, which rules do you use?

 

A:

 

1.1.4.  Goods Accepted

1.1.4.1.   Posting Change WM

 

Questions:

 

Q:   1) Do you use transfer orders to implement transfer postings with respect to consignment material?

 

A:

 

 

Q:   2) Which movement types will you use for posting changes?

 

A:

 

Q:   3) What type of documentation (forms) is to be generated in the case of transfer postings?

 

A:

 

 

Q:   4) Who is to be informed of a transfer posting? How is this person to be informed?

 

A:

 

1.1.4.2.   Putaway Processing

 

Questions:

 

Q:   1) Are pallets managed in the system with a unique number?

 

A:      [  ]Yes

[  ]No

 

 

Q:   2) Are materials posted to quality inspection after goods receipt, or are they in unrestricted-use stock?

 

A:

 

Q:   3) Can goods be issued directly from the goods receipt area?

 

A:      [  ]Yes

[  ]No

 

 

Q:   4) Do you post your materials to “blocked stock”?

 

A:      [  ]Yes

[  ]No

 

 

Q:   5) Do you post your materials to return delivery stock?

 

A:      [  ]Yes

[  ]No

 

 

Q:   6) Describe the individual steps from external goods receipt to final placement in storage (putaway).

 

A:

 

 

Q:   7) Do you have capacity limits for your storage bins, for example, weight, volume…?

 

 

Explanation:  Index for storage bin structure Index for storage bin structure

 

A:      [  ]Yes

[  ]No

 

 

Q:   8) Is a transfer requirement to be generated automatically at the time of a goods receipt with reference?

 

A:

 

 

Q:   9) For which goods movements are transfer orders to be created automatically?

 

A:

 

 

Q:   10) What kind of form (printout) do you need for stock putaways (GR slip, transfer order form, sticker, etc.)?

 

A:

 

 

Q:   11) Is procured material pending inspection posted to stock or does it remain in the goods receipt storage area? What happens with the samples: – Keep in GR area – post to stock – move to inspection area?

 

 

Explanation:  Will procured material pending inspection be placed into permanent storage or remain in the goods receipt storage area? What happens with the sample: – Keep in GR area – place into warehouse – move to inspection area?

 

A:

 

 

Q:   12) Which parameters determine your putaway strategies?

 

 

Explanation:  Storage type search

 

A:

 

 

Q:   13) Do you print the stock placement (putaway) document when the transfer order is created?

 

A:      [  ]Yes

[  ]No

 

 

Q:   14) Are transfer orders confirmed manually or automatically?

 

A:

 

 

Q:   15) Please list the storage types that will have placement confirmation.

 

A:

 

 

Q:   16) Does your legacy system automatically determine the storage bin in which to place the materials? Is this done manually?

 

A:

 

 

Q:   17) Who is notified of a stock putaway? How is this person notified?

 

A:

 

 

Q:   18) Will you maintain placement strategies (for example, storage types, storage sections, storage bins) for your stock materials?

 

A:

 

 

Q:   19) How many storage bins do you have per storage type?

 

A:

 

 

Q:   20) How many stock putaways (items) do you have per day?

 

A:

 

 

Q:   21) Do you receive consignment stock from vendors?

 

A:      [  ]Yes

[  ]No

 

 

Q:   22) Do you receive articles that have batch or serial numbers from vendors?

 

A:

 

 

Q:   23) Do you create a pre-allocation of your materials within warehouse management?

 

A:      [  ]Yes

[  ]No

 

 

Q:   24) Do you group together your pick list for multiple processing for a particular shipping point, route, pick date, stock placement, stock removal?

 

A:

 

 

Q:   25) Do you receive materials with batch or serial numbers from vendors?

 

A:

 

1.1.4.3.   Return Delivery

 

Questions:

 

Q:   1) Will you be required to retain costs for material that is inspected as a result of a stock purge?

 

A:      [  ]Yes

[  ]No

 

 

Q:   2) Will you create action plans/tasks for this defective material?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Do you enter data (for example, defects, characteristic results, specific findings) on the defective material found in the stockroom or on the shop floor?

 

A:      [  ]Yes

[  ]No

 

 

Q:   4) Do you have to inspect/re-inspect defective material found in your stockroom or on the production floor?

 

A:      [  ]Yes

[  ]No

 

 

Q:   5) Which documentation should accompany the goods that are returned to the vendor?

 

A:

 

 

Q:   6) Describe the handling of inspection lots where the usage decision has determined that they are to be rejected and returned to the vendor.

 

A:

 

1.1.4.4.   Goods Receipt Processing

 

Questions:

 

Q:   1) The material stock balances shown in your legacy system are to be transferred to the R/3 System. Will the stocks be valuated at the prices specified in the R/3  e total value of the former system be taken over?

 

A:

 

 

Q:   2) If you do not use the R/3 Purchasing functionality, describe the process of receiving goods from a vendor.

 

A:

 

 

Q:   3) If you do not use production orders of the R/3 System, describe the process of receiving goods from production.

 

A:

 

 

Q:   4) Should the person who posts a goods receipt be able to use a different account assignment than the one specified via the automatic account determination process?

 

A:

 

 

Q:   5) Is the automatic account determination process defined by Financial Accounting? If not, who is responsible within Logistics?

 

A:

 

1.1.5.  Stck Transfers / Trans. Pstngs

1.1.5.1.   Two-Step Stock Transfer

 

Questions:

 

Q:   1) Do you want to transport goods receipts to more than one physical storage facility?

 

A:

 

1.1.5.2.   One-Step Stock Transfer

 

Questions:

 

Q:   1) In the case of stock transfers, do you wish the material to be immediately available at the receiving plant?

 

A:      [  ]Yes

[  ]No

 

1.1.5.3.   Confirmation

 

Questions:

 

Q:   1) Are to-bin transfer orders confirmed separately or automatically by the system?

 

A:

 

 

Q:   2) How much time elapses between delivery of the goods and their inspection, and between inspection and the arrival of the goods at their final destination?         the destination bin.

 

A:

 

 

Q:   3) How are the picking results confirmed?

 

A:

 

 

Q:   4) Which data is confirmed (e.g. actual time, transport equipment used)?

 

A:

 

 

Q:   5) Do you want to confirm the quantities involved in when stock is placed into or taken out of storage manually or automatically?

 

A:

 

1.1.5.4.   Difference Processing

 

Questions:

 

Q:   1) Do you inform the vendor of differences in your favor arising at the time of goods receipt?

 

A:

 

 

Q:   2) Is the vendor supplied with a special document confirming the merchandise received (or signature on corrected delivery note)?

 

A:

 

 

Q:   3) How do you handle stock differences that are noticed either at the time of transfer order confirmation or continuous inventory based on bin-to-bin transfer?

 

A:

 

1.1.5.5.   WM Stock Transfer

 

Questions:

 

Q:   1) Do you create transfer requirements or transfer orders for consignment material?

 

A:

 

 

Q:   2) Do you use storage-bin-to-storage-bin stock transfers?

 

A:      [  ]Yes

[  ]No

 

1.1.6.  Goods Issue

1.1.6.1.   Stock Removal Processing

 

Questions:

 

Q:   1) Do you maintain removal strategies (for example, storage types, storage sections, storage bins)?

 

A:

 

 

Q:   2) Will you carry out multiple removals of stock from storage at one time?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Which of these stock removal strategies are used for internal procurement?

 

A:

 

Q:   4) Do you currently create deliveries for internal procurement of materials from plant to plant?

 

A:      [  ]Yes

[  ]No

 

 

Q:   5) Which picking strategies do you use?

 

A:

 

 

Q:   6) Upon what does the your choice of strategy depend (only in the case of several different strategies)?

 

A:

 

 

Q:   7) On which parameters does the storage bin search process depend when items are removed from storage (e.g. article, type of movement, etc.)?

 

A:

 

 

Q:   8) Do you carry out complete pallet removals and subsequent return transfers? If so, to which location is the merchandise returned?

 

 

Explanation:  Withdrawal of whole pallet = requirement to remove all stock

 

A:

 

 

Q:   9) Which documents are generated, at which times, and with which information, when stock is taken out of storage?

 

A:

 

 

Q:   10) Do you confirm the stock removal?

 

A:

 

 

Q:   11) Will you maintain picking strategies?

 

A:

 

1.1.6.2.   Goods Issue Processing

 

Questions:

 

Q:   1) How much time elapses between the actual goods issue and its posting in the system?

 

 

Explanation:  Info on process steps.

 

A:

 

 

Q:   2) Is the posting made online or in batch mode?

 

 

Explanation:  Steps in system

 

A:

 

 

Q:   3) Are deliveries posted individually or for each group of goods issues?

 

 

Explanation:  Steps in system

 

A:

 

 

Q:   4) Which documents are generated in conjunction with this posting and what information do they contain?

 

 

Explanation:  1-step goods issue in which the GR at the receiving site is posted simultaneously to the GI at the DC. simultaneously to the GI at the DC.

 

A:

 

1.1.6.3.   Stock Removal Processing

 

Questions:

 

Q:   1) Do you maintain removal strategies (for example, storage types, storage sections, storage bins)?

 

A:

 

 

Q:   2) Will you carry out multiple removals of stock from storage at one time?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Which of these stock removal strategies are used for internal procurement?

 

A:

 

Q:   4) Do you currently create deliveries for internal procurement of materials from plant to plant?

 

A:      [  ]Yes

[  ]No

 

 

Q:   5) Which picking strategies do you use?

 

A:

 

 

Q:   6) Upon what does the your choice of strategy depend (only in the case of several different strategies)?

 

A:

 

 

Q:   7) On which parameters does the storage bin search process depend when items are removed from storage (e.g. article, type of movement, etc.)?

 

A:

 

 

Q:   8) Do you carry out complete pallet removals and subsequent return transfers? If so, to which location is the merchandise returned?

 

 

Explanation:  Withdrawal of whole pallet = requirement to remove all stock

 

A:

 

 

Q:   9) Which documents are generated, at which times, and with which information, when stock is taken out of storage?

 

A:

 

 

Q:   10) Do you confirm the stock removal?

 

A:

 

 

Q:   11) Will you maintain picking strategies?

 

A:

 

 

1.2. Physical Inventory & Cycle Counting

1.2.1.  Physical Inventory

1.2.1.1.   Specification of Cycle Counting Phys. Inv.

 

Questions:

 

Q:   1) Which materials do you count in cycles?

 

A:

 

 

Q:   2) Describe the cycle counting intervals. Specify plant, material, and interval.

 

A:

 

 

Q:   3) How are the ABC indicators to be assigned? – based on material consumption/usage – based on material requirements – manually – other, please describe.

 

A:

 

1.2.1.2.   Cycle Counting Phys. Inv. Preparation

 

Questions:

 

Q:   1) Do you block the relevant stock during the physical inventory count?

 

 

Explanation:  Setting of flag when creating physical inventory Setting of flag when creating physical inventory

 

A:      [  ]Yes

[  ]No

 

 

Q:   2) Do you conduct a physical inventory for:

 

A:

 

Q:   3) Which types of physical inventory do you wish to use to count the materials in your warehouses/stores?

 

 

Explanation:  Linkage via ALE may be necessary Linkage via ALE may be necessary

 

A:

1.2.1.3.   Determination of Scope for Periodic and Continuous Inventory

 

Questions:

 

Q:   1) Do you block the relevant stock during the physical inventory count?

 

 

Explanation:  Setting of flag when creating physical inventory Setting of flag when creating physical inventory

 

A:      [  ]Yes

[  ]No

 

 

Q:   2) Do you conduct a physical inventory for:

 

A:

 

Q:   3) Which types of physical inventory do you wish to use to count the materials in your warehouses/stores?

 

 

Explanation:  Linkage via ALE may be necessary Linkage via ALE may be necessary

 

A:

1.2.1.4.   Definition of Scope of Periodic Inventory

 

Questions:

 

Q:   1) Which types of physical inventory do you wish to use to count the materials in your warehouses/stores?

 

 

Explanation:  Linkage via ALE may be necessary Linkage via ALE may be necessary

 

A:

1.2.1.5.   Sample Processing

 

Questions:

 

Q:   1) For which assortment/material groups do you use the sample-based physical inventory?

 

A:

 

 

Q:   2) At what level do you analyze the results of inventory sampling (merchandise category, layout, etc.)

 

A:

 

 

Q:   3) Will you use random sample profiles when carrying out physical inventories of materials?

 

A:

 

1.2.1.6.   Printout of Physical Inventory Document

 

Questions:

 

Q:   1) How are physical inventory documents to be printed out?

 

A:

 

 

Q:   2) Are bar codes to be printed out on the physical inventory document?

 

A:

 

1.2.1.7.   Inventory Count

 

Questions:

 

Q:   1) How do you carry out the physical inventory count (e.g. manually, using bar code scanners)?

 

A:

 

1.2.1.8.   Physical Inventory Analysis

 

Questions:

 

Q:   1) Are physical inventory differences aggregated at material group level?

 

A:

 

 

Q:   2) Do you allow physical inventory tolerances? Specify these tolerances.

 

A:

 

1.2.1.9.   Post Inventory Differences

 

Questions:

 

Q:   1) Who is responsible for posting physical inventory differences? Specify the persons responsible and the maximum differences allowed.

 

A:

 

1.2.2.  WM Inventory

1.2.2.1.   Storage Type Block

 

Questions:

 

Q:   1) Do you block any storage types for the purposes of physical inventory? Name the storage types that are to be blocked.

 

A:

 

 

Q:   2) Choose the movement types you wish to block!

 

A:

1.2.2.2.   Continuous Inventory WM

 

Questions:

 

Q:   1) What are the triggers for a continuous inventory?

 

A:

 

 

Q:   2) Do you carry out a continuous inventory in your warehouses/stores via zero stock check?

 

A:

 

1.2.2.3.   Annual Inventory WM

 

Questions:

 

Q:   1) Are goods movements blocked in full or in part in your warehouses/warehouse areas for the duration of the annual inventory?

 

A:

 

 

Q:   2) Under what conditions are inventory entry and the stock placement process linked in your warehouses/warehouse areas?

 

A:

 

 

Q:   3) Which inventory method do you use during stock placement?

 

A:

 

 

Q:   4) When do you conduct your annual physical inventory ?

 

A:

 

1.2.2.4.   Cycle Counting WM

 

Questions:

 

Q:   1) Should the cycle-counting procedure be supported in your warehouses/stores?

 

A:

 

 

Q:   2) Which materials do you count in cycles?

 

A:

 

 

Q:   3) Describe the cycle counting intervals. Specify plant, material, and interval.

 

A:

 

 

Q:   4) How is the ABC indicator to be assigned to the materials?

 

A:

1.2.2.5.   Print Inventory List

 

Questions:

 

Q:   1) Which count procedure do you use for your branches to ensure that inventory data is recorded in full?

 

A:

 

 

Q:   2) How do you carry out your physical inventory count? (e.g. manually, using bar code scanners

 

A:

 

 

Q:   3) How many document items (each quant and storage bin counts as one item) do you have in your physical inventory document?

 

A:

 

1.2.2.6.   Enter Count Results

 

Questions:

 

Q:   1) Will you record the results of the physical inventory manually or electronically (e.g. barcode scanner, radio-supported)?

 

A:

 

1.2.2.7.   Start Inventory Recount

 

Questions:

 

Q:   1) Are recounts executed? If yes, which deviation tolerances have you set?

 

A:

 

1.2.2.8.   Clear Differences WM

 

Questions:

 

Q:   1) How do you take account of conditions requiring subsequent (end-of-period) settlement in your accounting system?

 

A:

 

1.3. Decentralized Warehouse Management

1.3.1.  Inbound Shipments

1.3.1.1.   Transportation Planning and Processing

 

Questions:

 

Q:   1) Do you plan transportation yourself?

 

A:

 

 

Q:   2) Do you use any third-party transportation systems?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Describe your transportation handling in detail.

 

A:

 

 

Q:   4) What carriers do you use to transport goods?

 

A:

 

 

Q:   5) How do you select your carriers?

 

A:

 

 

Q:   6) How do you create shipments?

 

A:

 

 

Q:   7) Do you have Individual and/or Collective Shipments?

 

A:

 

 

Q:   8) Do you use one mode of transport per route or a combination of modes per route, e.g. road, rail, sea?

 

A:

 

 

Q:   9) Do you need leg determination?

 

A:

 

 

Q:   10) List all documents required to complete the transportation process.

 

A:

 

 

Q:   11) Do you record the progress of the shipment?

 

A:

 

 

Q:   12) If so, which ones?

 

A:

 

 

Q:   13) Is freight charged to the customers or is it absorbed by the company?

 

A:

 

 

Q:   14) Do you need to be able to enter your actual transportation data at a later point in time (for example, time taken, distance travelled)?

 

A:

 

 

Q:   15) How do you determine shipment costs (for example, kilometers, volume)?

 

A:

 

 

Q:   16) How do you carry out settlement accounting with the external carrier?

 

A:

 

 

Q:   17) Do you charge stores for the costs of using your own vehicles?

 

A:

 

 

Q:   18) Do you handle several deliveries for different ship-to parties in one single shipment?

 

A:

 

 

Q:   19) According to which criteria do you group deliveries for one shipment?

 

A:

 

 

Q:   20) Do you have your own vehicles or do you use external carriers?

 

A:

 

 

Q:   21) What do you use as a basis for scheduling your vehicles or the vehicles of your external carrier?

 

A:

 

 

Q:   22) How do you respond to capacity constraints? Describe the contractual conditions.

 

A:

 

 

Q:   23) Do you require shipment documents for physically transporting the merchandise? If so, what form of document (e.g. paper, EDI)?

 

A:

 

 

Q:   24) What information do these documents contain?

 

A:

 

1.3.1.2.   Shipment Cost Calculation and Settlement

 

Questions:

 

Q:   1) Is freight charged to the customer or does the company absorb the cost?

 

A:

 

 

Q:   2) How do you calculate your freight costs (freight pricing procedure)?

 

A:

 

 

Q:   3) Are you using multi-dimensional scales for freight calculation?

 

A:

 

 

Q:   4) How do you post your freight costs to accounting?

 

A:

 

 

Q:   5) Do you verify invoices for your forwarding agents? If so, which rules do you use?

 

A:

 

1.3.2.  Outbound Shipments

1.3.2.1.   Transportation Planning and Processing

 

Questions:

 

Q:   1) Do you plan transportation yourself?

 

A:

 

 

Q:   2) Do you use any third-party transportation systems?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Describe your transportation handling in detail.

 

A:

 

 

Q:   4) What carriers do you use to transport goods?

 

A:

 

 

Q:   5) How do you select your carriers?

 

A:

 

 

Q:   6) How do you create shipments?

 

A:

 

 

Q:   7) Do you have Individual and/or Collective Shipments?

 

A:

 

 

Q:   8) Do you use one mode of transport per route or a combination of modes per route, e.g. road, rail, sea?

 

A:

 

 

Q:   9) Do you need leg determination?

 

A:

 

 

Q:   10) List all documents required to complete the transportation process.

 

A:

 

 

Q:   11) Do you record the progress of the shipment?

 

A:

 

 

Q:   12) If so, which ones?

 

A:

 

 

Q:   13) Is freight charged to the customers or is it absorbed by the company?

 

A:

 

 

Q:   14) Do you need to be able to enter your actual transportation data at a later point in time (for example, time taken, distance travelled)?

 

A:

 

 

Q:   15) How do you determine shipment costs (for example, kilometers, volume)?

 

A:

 

 

Q:   16) How do you carry out settlement accounting with the external carrier?

 

A:

 

 

Q:   17) Do you charge stores for the costs of using your own vehicles?

 

A:

 

 

Q:   18) Do you handle several deliveries for different ship-to parties in one single shipment?

 

A:

 

 

Q:   19) According to which criteria do you group deliveries for one shipment?

 

A:

 

 

Q:   20) Do you have your own vehicles or do you use external carriers?

 

A:

 

 

Q:   21) What do you use as a basis for scheduling your vehicles or the vehicles of your external carrier?

 

A:

 

 

Q:   22) How do you respond to capacity constraints? Describe the contractual conditions.

 

A:

 

 

Q:   23) Do you require shipment documents for physically transporting the merchandise? If so, what form of document (e.g. paper, EDI)?

 

A:

 

 

Q:   24) What information do these documents contain?

 

A:

 

1.3.2.2.   Shipment Cost Calculation and Settlement

 

Questions:

 

Q:   1) Is freight charged to the customer or does the company absorb the cost?

 

A:

 

 

Q:   2) How do you calculate your freight costs (freight pricing procedure)?

 

A:

 

 

Q:   3) Are you using multi-dimensional scales for freight calculation?

 

A:

 

 

Q:   4) How do you post your freight costs to accounting?

 

A:

 

 

Q:   5) Do you verify invoices for your forwarding agents? If so, which rules do you use?

 

A:

 

1.3.3.  Stck Transfers / Trans. Pstngs

1.3.3.1.   Stock Removal Processing

 

Questions:

 

Q:   1) Do you maintain removal strategies (for example, storage types, storage sections, storage bins)?

 

A:

 

 

Q:   2) Will you carry out multiple removals of stock from storage at one time?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Which of these stock removal strategies are used for internal procurement?

 

A:

 

Q:   4) Do you currently create deliveries for internal procurement of materials from plant to plant?

 

A:      [  ]Yes

[  ]No

 

 

Q:   5) Which picking strategies do you use?

 

A:

 

 

Q:   6) Upon what does the your choice of strategy depend (only in the case of several different strategies)?

 

A:

 

 

Q:   7) On which parameters does the storage bin search process depend when items are removed from storage (e.g. article, type of movement, etc.)?

 

A:

 

 

Q:   8) Do you carry out complete pallet removals and subsequent return transfers? If so, to which location is the merchandise returned?

 

 

Explanation:  Withdrawal of whole pallet = requirement to remove all stock

 

A:

 

 

Q:   9) Which documents are generated, at which times, and with which information, when stock is taken out of storage?

 

A:

 

 

Q:   10) Do you confirm the stock removal?

 

A:

 

 

Q:   11) Will you maintain picking strategies?

 

A:

 

1.3.3.2.   WM Stock Transfer

 

Questions:

 

Q:   1) Do you create transfer requirements or transfer orders for consignment material?

 

A:

 

 

Q:   2) Do you use storage-bin-to-storage-bin stock transfers?

 

A:      [  ]Yes

[  ]No

 

1.3.4.  WM Inventory

1.3.4.1.   Storage Type Block

 

Questions:

 

Q:   1) Do you block any storage types for the purposes of physical inventory? Name the storage types that are to be blocked.

 

A:

 

 

Q:   2) Choose the movement types you wish to block!

 

A:

1.3.4.2.   Continuous Inventory WM

 

Questions:

 

Q:   1) What are the triggers for a continuous inventory?

 

A:

 

 

Q:   2) Do you carry out a continuous inventory in your warehouses/stores via zero stock check?

 

A:

 

1.3.4.3.   Annual Inventory WM

 

Questions:

 

Q:   1) Are goods movements blocked in full or in part in your warehouses/warehouse areas for the duration of the annual inventory?

 

A:

 

 

Q:   2) Under what conditions are inventory entry and the stock placement process linked in your warehouses/warehouse areas?

 

A:

 

 

Q:   3) Which inventory method do you use during stock placement?

 

A:

 

 

Q:   4) When do you conduct your annual physical inventory ?

 

A:

 

1.3.4.4.   Cycle Counting WM

 

Questions:

 

Q:   1) Should the cycle-counting procedure be supported in your warehouses/stores?

 

A:

 

 

Q:   2) Which materials do you count in cycles?

 

A:

 

 

Q:   3) Describe the cycle counting intervals. Specify plant, material, and interval.

 

A:

 

 

Q:   4) How is the ABC indicator to be assigned to the materials?

 

A:

1.3.4.5.   Print Inventory List

 

Questions:

 

Q:   1) Which count procedure do you use for your branches to ensure that inventory data is recorded in full?

 

A:

 

 

Q:   2) How do you carry out your physical inventory count? (e.g. manually, using bar code scanners

 

A:

 

 

Q:   3) How many document items (each quant and storage bin counts as one item) do you have in your physical inventory document?

 

A:

 

1.3.4.6.   Enter Count Results

 

Questions:

 

Q:   1) Will you record the results of the physical inventory manually or electronically (e.g. barcode scanner, radio-supported)?

 

A:

 

1.3.4.7.   Start Inventory Recount

 

Questions:

 

Q:   1) Are recounts executed? If yes, which deviation tolerances have you set?

 

A:

 

1.3.4.8.   Clear Differences WM

 

Questions:

 

Q:   1) How do you take account of conditions requiring subsequent (end-of-period) settlement in your accounting system?

 

A:

 

1.3.5.  Goods Receipt

1.3.5.1.   Posting Change WM

 

Questions:

 

Q:   1) Do you use transfer orders to implement transfer postings with respect to consignment material?

 

A:

 

 

Q:   2) Which movement types will you use for posting changes?

 

A:

 

Q:   3) What type of documentation (forms) is to be generated in the case of transfer postings?

 

A:

 

 

Q:   4) Who is to be informed of a transfer posting? How is this person to be informed?

 

A:

 

1.3.5.2.   Confirmation

 

Questions:

 

Q:   1) Are to-bin transfer orders confirmed separately or automatically by the system?

 

A:

 

 

Q:   2) How much time elapses between delivery of the goods and their inspection, and between inspection and the arrival of the goods at their final destination?         the destination bin.

 

A:

 

 

Q:   3) How are the picking results confirmed?

 

A:

 

 

Q:   4) Which data is confirmed (e.g. actual time, transport equipment used)?

 

A:

 

 

Q:   5) Do you want to confirm the quantities involved in when stock is placed into or taken out of storage manually or automatically?

 

A:

 

1.3.5.3.   Difference Processing

 

Questions:

 

Q:   1) Do you inform the vendor of differences in your favor arising at the time of goods receipt?

 

A:

 

 

Q:   2) Is the vendor supplied with a special document confirming the merchandise received (or signature on corrected delivery note)?

 

A:

 

 

Q:   3) How do you handle stock differences that are noticed either at the time of transfer order confirmation or continuous inventory based on bin-to-bin transfer?

 

A:

 

1.3.5.4.   Putaway Processing

 

Questions:

 

Q:   1) Are pallets managed in the system with a unique number?

 

A:      [  ]Yes

[  ]No

 

 

Q:   2) Are materials posted to quality inspection after goods receipt, or are they in unrestricted-use stock?

 

A:

 

Q:   3) Can goods be issued directly from the goods receipt area?

 

A:      [  ]Yes

[  ]No

 

 

Q:   4) Do you post your materials to “blocked stock”?

 

A:      [  ]Yes

[  ]No

 

 

Q:   5) Do you post your materials to return delivery stock?

 

A:      [  ]Yes

[  ]No

 

 

Q:   6) Describe the individual steps from external goods receipt to final placement in storage (putaway).

 

A:

 

 

Q:   7) Do you have capacity limits for your storage bins, for example, weight, volume…?

 

 

Explanation:  Index for storage bin structure Index for storage bin structure

 

A:      [  ]Yes

[  ]No

 

 

Q:   8) Is a transfer requirement to be generated automatically at the time of a goods receipt with reference?

 

A:

 

 

Q:   9) For which goods movements are transfer orders to be created automatically?

 

A:

 

 

Q:   10) What kind of form (printout) do you need for stock putaways (GR slip, transfer order form, sticker, etc.)?

 

A:

 

 

Q:   11) Is procured material pending inspection posted to stock or does it remain in the goods receipt storage area? What happens with the samples: – Keep in GR area – post to stock – move to inspection area?

 

 

Explanation:  Will procured material pending inspection be placed into permanent storage or remain in the goods receipt storage area? What happens with the sample: – Keep in GR area – place into warehouse – move to inspection area?

 

A:

 

 

Q:   12) Which parameters determine your putaway strategies?

 

 

Explanation:  Storage type search

 

A:

 

 

Q:   13) Do you print the stock placement (putaway) document when the transfer order is created?

 

A:      [  ]Yes

[  ]No

 

 

Q:   14) Are transfer orders confirmed manually or automatically?

 

A:

 

 

Q:   15) Please list the storage types that will have placement confirmation.

 

A:

 

 

Q:   16) Does your legacy system automatically determine the storage bin in which to place the materials? Is this done manually?

 

A:

 

 

Q:   17) Who is notified of a stock putaway? How is this person notified?

 

A:

 

 

Q:   18) Will you maintain placement strategies (for example, storage types, storage sections, storage bins) for your stock materials?

 

A:

 

 

Q:   19) How many storage bins do you have per storage type?

 

A:

 

 

Q:   20) How many stock putaways (items) do you have per day?

 

A:

 

 

Q:   21) Do you receive consignment stock from vendors?

 

A:      [  ]Yes

[  ]No

 

 

Q:   22) Do you receive articles that have batch or serial numbers from vendors?

 

A:

 

 

Q:   23) Do you create a pre-allocation of your materials within warehouse management?

 

A:      [  ]Yes

[  ]No

 

 

Q:   24) Do you group together your pick list for multiple processing for a particular shipping point, route, pick date, stock placement, stock removal?

 

A:

 

 

Q:   25) Do you receive materials with batch or serial numbers from vendors?

 

A:

 

1.3.5.5.   Return Delivery

 

Questions:

 

Q:   1) Will you be required to retain costs for material that is inspected as a result of a stock purge?

 

A:      [  ]Yes

[  ]No

 

 

Q:   2) Will you create action plans/tasks for this defective material?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Do you enter data (for example, defects, characteristic results, specific findings) on the defective material found in the stockroom or on the shop floor?

 

A:      [  ]Yes

[  ]No

 

 

Q:   4) Do you have to inspect/re-inspect defective material found in your stockroom or on the production floor?

 

A:      [  ]Yes

[  ]No

 

 

Q:   5) Which documentation should accompany the goods that are returned to the vendor?

 

A:

 

 

Q:   6) Describe the handling of inspection lots where the usage decision has determined that they are to be rejected and returned to the vendor.

 

A:

 

1.3.6.  Goods Issue

1.3.6.1.   Stock Removal Processing

 

Questions:

 

Q:   1) Do you maintain removal strategies (for example, storage types, storage sections, storage bins)?

 

A:

 

 

Q:   2) Will you carry out multiple removals of stock from storage at one time?

 

A:      [  ]Yes

[  ]No

 

 

Q:   3) Which of these stock removal strategies are used for internal procurement?

 

A:

 

Q:   4) Do you currently create deliveries for internal procurement of materials from plant to plant?

 

A:      [  ]Yes

[  ]No

 

 

Q:   5) Which picking strategies do you use?

 

A:

 

 

Q:   6) Upon what does the your choice of strategy depend (only in the case of several different strategies)?

 

A:

 

 

Q:   7) On which parameters does the storage bin search process depend when items are removed from storage (e.g. article, type of movement, etc.)?

 

A:

 

 

Q:   8) Do you carry out complete pallet removals and subsequent return transfers? If so, to which location is the merchandise returned?

 

 

Explanation:  Withdrawal of whole pallet = requirement to remove all stock

 

A:

 

 

Q:   9) Which documents are generated, at which times, and with which information, when stock is taken out of storage?

 

A:

 

 

Q:   10) Do you confirm the stock removal?

 

A:

 

 

Q:   11) Will you maintain picking strategies?

 

A:

I hope Questions framed here will be more useful and helps to understand the Client Business Process.

Thanking you.

Please refer my previous blog for SAP WM MM IM.

https://people.sap.com/shivakkumar.geethavenkatesan79

 

 

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