Collective Order: Direct production of Sub-assemblies and Its Integration to EWM
In some of the production process, Sub-Assemblies once produced, are not putawayed in warehouse, they are directly consumed from manufacturing line without entering into warehouse. The sub-assemblies are latter consumed to superior orders or FGs on which it is supposed to be consumed.
Collective Order-Direct production gives gives business a leverage to minimize unnecessary touch to warehouse activity. This blog gives an overview how ‘Collective Order’ can be integrated to SAP EWM S/4 HANA.
The manufacturing order of final FG is created, 2 orders are created, 1 for Sub-Assembly and 1 for Higher assembly
The raw materials inside Sub-Assembly will follow the staging process from warehouse to PSA ( Delivery based Model)
At time of production order confirmation, the Raw material will be consumed from PSA and Sub-assembly will be produced
In Superior-Order, the sub assembly will directly be consumed and it will never part of inventory, hence no Inbound delivery.
You can check in Sub-Assembly order whether production of sub-assembly has happened or not.
–>Now, the final FG product is relevant for packing and Putaway into warehouse, hence, it will be triggered from EWM through RFUI. HU will be triggered based on Packspec.
Now, conduct putaway by HU and final FG is sent to warehouse.
This process suits to business who dont want to inventorize the sub-assembly.
Thanks for reading!