Location and Logistics Area Volume Considerations for SAP Business ByDesign
Location and logistics area setup (location layout) is one of the most important steps during Business ByDesign go-live. For an efficient and optimal system performance, it is necessary to understand the volume aspects as well during this setup.
In this blog, I discuss some recommendations which have been observed to help customers stay out of performance bottle-necks after their setup.
Typical places where performance issues are observed:
- Confirmation or creation of Logistics/Production Task.
- On Edit of Location Layout.
- On opening of Post Goods Receipt screen.
Please note, the blog is aimed at the volume aspects of the setup.
The location and location layout concept enables you to design a detailed model of your company’s supply chain. The Location represents an external view of your company that helps you to communicate with your business partner. The location layout on the other hand represents an internal view of your company’s structure. This layout is represented by a hierarchical structure of logistics areas (also referred to as : LOA’s). You can centrally maintain the layouts of the different sites and locations within your company.
In general it is possible to move LOA’s within the site and re-arrange them after the layout setup is complete. However, as per observations, in cases where the recommendations are not followed, the system might become too overloaded to be able to support the move of LOA’s. The only way out then would be to setup a new site (in the system) and move the operations there.
- Complex location layouts would be those, having more than 1000 logistics areas in a site/location.
- Such layouts are to be modelled as hierarchical structures consisting of a site with one or more locations below it, and for each of these locations, there can be one or more levels of logistics areas below.
- Recommendation is not to have more than 5000 logistics areas under a site. Also, these must be set up as per further recommendations given below.
- Although the site can have the role ‘Storage Location’, it is recommended that one of the following approaches are followed:
- Maintain multiple storage locations under the site, set up logistics areas under each storage location, no more than 1000 under each (refer picture below).
- Maintain one storage location under the site, and have a hierarchy of logistics area under the same. Do not go beyond 1000 logistics area under each top-level logistics area. (refer picture below).
- Most optimal would be to have to multiple storage locations and a hierarchy of logistics area under each storage location (refer picture below).
- Recommendation is to not go beyond 10 Storage Locations under one site.
- Note: Do not create all the logistics areas directly under the storage location.
- Create the material flow rules for hierarchy of logistics areas.
- Create the material flow rules at the Site Level for different Storage Locations inside the site with the same search strategy.
- In the Warehouse Model, change the logistics area proposal setting to “When Task is created”.
- Use the automated run in Outbound Logistics Work Center to create Warehouse Request & Task from Delivery Proposal (if your business permits the same).
Consider a use case where you need to setup around 3500 logistics areas under a site.
As per the recommendations above, the layout could be created in any of the following ways. These would be the correct ways to set it up.
As per 4.a: Maintain multiple storage locations under the site, set up logistics areas under each storage location.
As per 4.b. Maintain one storage location under the site, and have a hierarchy of logistics area under the same.
As per 4.c. Multiple storage locations and a hierarchy of logistics area under each storage location.
Note: the following setup is not recommended. Do not maintain all your logistics areas directly under the site or one storage location.
Tips to maintain material flow rules:
- Select the desired Location (Supply Chain Design Master Data Work Center): Edit.
- Navigate to tab: Material Flow.
- Select ‘Advanced-Rule’.
- Maintain the source & destination rules as recommended above.
Hope this blog has been helpful.