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Outbound Delivery Scheduling Processes in OTC

Introduction :

Whenever we create an Order (Sales Order, in this context), system performs an activity in the background, which is known as “Availability Check”. Here, system finds out “Plant”, because, “Availability Check is always “Plant & Material” Specific. This is due to the possibility that, certain materials/products are not manufactured or stored in some or all the Plants.

When an SO is created for X material for 100 Qty, the system in the background performs Av. Check & checks in that plant , whether 100 QTY of X material is available or not.

If available, system confirms that QTY & the delivery date, because, it is indeed possible that, the complete QTY may not be available, all the time.

Sometimes, out of 100 QTY, that particular plant may have only 50 QTY. Here, system confirms 50 QTY on the immediate date & the rest 50 QTY, on a future date.

This confirmation of QTY & confirmation of Delivery DATE (in a Sales Document) is called DELIVERY SCHEDULING.

This functionality could be well played with the system by OTC/SD Consultants/ Analysts.

The below parameters are considered by the system, when performing DELIVERY SCHEDULING.

  • PICK/PACK TIME : ( Maintained in ‘Shipping point” )

Time taken to pick a material from Storage location & pack it.

  • LOADING TIME : ( Maintained in “ Shipping Point” )

Time taken to do the process of loading goods into transportation mode (For e.g.: trucks) for dispatch

Practical Case:

Let’s assume, there’s a QTY of 100 material X available in one plant. (Manufacturing & Delivering Plant)

Customer placed an order on TODAY’S DATE i.e. 5th January; 2021 & asking for delivery on 7th January ;2021.

Though 100 QTY of material X is indeed available, this can’t be done.

Reason:

PICK/ PACK TIME is 3 Days & LOADING TIME is 2 Days

Meaning….PICK/PACK Time & LOADING Time itself is 3+2 = 5 Days & the time b/w TODAY’S DATE January 05th & Req .Delivery Date January 07th is 2 Days!

  • RLT : ( Replenishment Lead Time ) – Maintained in MMR; MRP-3 View

Time taken to manufacture a product. System considers RLT, if stock is not available.

  • If at any point of time, stock is NA in a plant, then system initiates TOR, i.e., it transfers the requirements ;MRP to PP & MM module to get the raw materials, manufacture the goods & keep the stock ready.
  • By the above, an approx. tentative date could be known, by which, the stock could be made ready.
  • For eg:, if RLT is maintained as 10 Days & customer places an order on January 05th.
  • On checking in the plant, stock is NA.
  • The order would be ready for DELIVERY on January 05th + 10Days

I.e.

On January 15th; DELVERY could be done.

  • TRANSIT TIME : ( Maintained in Route Determination)

 Time taken to deliver goods from Plant (Shipping Point ie Departure Zone of the Plant) to Customer (Transportation Zone)

  • TRANSPORTATION LEAD TIME : ( Maintained in Route Determination)

Time taken to arrange the mode of transportation (For e.g.: Truck), for dispatching the goods to customer

  • “Lead Time” indicates “ Buffer Time
  • Transportation modes may not be available immediately, always. So, time is to be considered.

NOTE:

 The above are the five KEY FACTORS considered by the system in doing DELIVERY SCHEDULING, which results in SCHEDULE LINES in an SO.

Options in DELIVERY SCHEDULING

 Backward Scheduling [Based on Customer Req. Delivery Date OR Material Staging ( available) date]

  • Forward Scheduling ( Always based on SO Creation Date/ Today’s Date )

PROCESS of DELIVERY SCHEDULING

Whenever an end-user creates an SO, firstly, system always performs “Backward Scheduling”.

If the above ‘fails’, then the system performs “Forward Scheduling”

Scenarios/ Processes, where “Backward Scheduling” fails:

  • If the ‘Proposed Date’ goes beyond ‘Today’s date’. ( WRT SO creation)

 

BUSINESS CASE STUDIES/ PROCESSES

Process 1:

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 

Stock QTY – 100 | Material X

Note: Stock QTY is always suggested to be checked using MD04 transaction.

SALES ORDER:

Material X
  QTY : 60

 

10th December (Say Today’s Date)                  | CRDD: 13th December

Material X
QTY : 40

 

                         PAST Date                                                                Fails

 

In this case,

Backward Scheduling fails, because, Proposed Date is beyond “Today’s Date” (10th December)

 

Practical Case:

 If 15th December falls on a weekend (or any holiday as per the relevant Factory Calendar), system proposes the very next day/date for delivery in the Schedule lines of SO.

NOTE: When Backward Scheduling fails, system determines two Schedule lines.

PS: In the above case, system ignored RLT because, full stock is available in the Plant.

Process 2:

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 Stock QTY – 100 | Material X 

Note: Stock QTY is always suggested to be checked using MD04 transaction.

SALES ORDER:

Material X
  QTY : 60

 

10th December (Say Today’s Date)                  | CRDD: 18th December

Material X
QTY : 40

 

                                                                                                                                  Successful                                                                                                                                                         

Process 3:

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 

Stock QTY – 100 | Material X

Note: Stock QTY is always suggested to be checked using MD04 transaction.

SALES ORDER:

 

Material X
  QTY : 60

 

 

Material X
QTY : 40

 

All the Stock 100 QTY is now consumed, as per the above two SOs.

Later,

10th December (Say Today’s Date)                  | CRDD: 20th December

Material X
QTY : 50

 

PS : In the above case, Backward Scheduling is fails. Then forward scheduling is done, as illustrated below :

 

Process 4:

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 

Stock QTY – 100 | Material X 

Note: Stock QTY is always suggested to be checked using MD04 transaction.

SALES ORDER:

 

Material X
  QTY : 60

 

Material X
QTY : 40

 

All the Stock 100 QTY is now consumed, as per the above two SOs.

Later,

10th December (Say Today’s Date)                  | CRDD: 30th December

Material X
QTY : 50

 

PS :  In the above case, Backward Scheduling is successful.

Process 5:

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 
Stock QTY – 130 | Material X

Note: Stock QTY is always suggested to be checked using MD04 transaction.

SALES ORDER:

Material X
  QTY : 60

 

Material X
QTY : 40

 

All the Stock 100 QTY is now consumed, as per the above two SOs.

Later,

10th December (Say Today’s Date)                  | CRDD: 20th December

Material X
QTY : 50

 

 

 

PS: The above relates to “Partial Deliveries”.

PREREQUISITE (for this case)

PARTIAL DELIVERY per Item “CHECKBOX must be activated for this customer in the CMR.

PS: If the above CHECKBOX is not activated in this case, the system drops the Backward Scheduling & confirms all the 50 QTY, in Forward Scheduling.

Process 6:

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 Stock QTY – 130 | Material X 

Note: Stock QTY is always suggested to be checked using MD04 transaction.

SALES ORDER:

 

Material X
  QTY : 60

 

Material X
QTY : 40

 

All the Stock 100 QTY is now consumed, as per the above two SOs.

Later,

10th December (Say Today’s Date)                  | CRDD: 14th December

Material X
QTY : 50

 

PS : In the above case, Backward Scheduling is failed.

Then,

System tries to confirm by Forward Scheduling.

Practical Case Possibility:

System may confirm only 30 QTY on the best possible date.  Assume 17th December.

The BALANCE 20 QTY is NA.

Now, the system considers RLT.

Here RLT is          10 Days.

So, 17th December + 10 Days = 27th December.

Hence, System confirms the balance 20 QTY on 27th December.  (Plus or minus WRT corresponding Factory Calendar)

Process 7:    (ONLY Complete Delivery) (Customer not accepting partial Delivery)

Prerequisite:

“Complete Delivery Reqd. by law” CHECKBOX must be activated in the CMR.

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 

Stock QTY – 130 | Material X

Note: Stock QTY is always suggested to be checked using MD04 transaction.

SALES ORDER:

Material X
  QTY : 60

 

Material X
QTY : 40

 

All the Stock 100 QTY is now consumed, as per the above two SOs.

Later,

12th December                   | CRDD: 20th December

Material X
QTY : 50

 

In the above case, 27th December is the best possible date, the system can confirm full QTY, based on Forward Scheduling.

Process 8:    (Switch OFF RLT)

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 Stock QTY – 130 | Material X

Note: Stock QTY is always suggested to be checked using MD04 transaction.

In OVZ9, for 01/02 (Av. Chk):

 

 

Due to the above, RLT 10 Days is IGNORED by the system.

SALES ORDER:

 

Material X
  QTY : 60

 

 

Material X
QTY : 40

 

Material X
QTY : 30

 

All the Stock 130 QTY is now consumed, as per the above two SOs.

Later,

12th December                   | CRDD: 20th December

Material X
QTY : 50

 

PS: If we check w/o RLT & stock is not available, system will NOT confirm QTYs.

Process 9:   

 

PICK/PACK Time LOADING Time RLT
3 Days 2 Days 10 Days

 Stock QTY – 160 | Material X

Note: Stock QTY is always suggested to be checked using MD04 transaction.

In OVZ9, for 01/02 (Av. Chk):

 

 

SALES ORDER:

 

Material X
  QTY : 60

 

Material X
QTY : 40

 

Material X
QTY : 30

Later,

12th December                   | CRDD: 20th December

Material X
QTY : 50

 

System confirms only 30 QTY (WRT Stock 160 QTY)

Process10:

 

PICK/PACK Time Loading Time RLT Transit Time Trans. Lead Time
3 Days 2 Days 10 Days 5 Days 7 Days

 

Stock QTY – 160 | Material X

Note: Stock QTY is always suggested to be checked using MD04 transaction

PS: RLT not considered here, as stock QTY is available.

SALES ORDER:

 

Material X
  QTY : 60

 

Material X
QTY : 40

 

Material X
QTY : 30

 

All the above three SO QTYs are confirmed. (130 QTY is consumed & 30 QTY available WRT Stock 160 QTY)

Later,

13th December                   | CRDD: 19th December

Material X
QTY : 30

 

NOTE: In the above case, as TLT is 7 Days, PICK/PACK Time is included in those 7 Days.

Process 11:

PICK/PACK Time Loading Time RLT Transit Time Trans. Lead Time
3 Days 2 Days 10 Days 5 Days 7 Days

 

Stock QTY – 160 | Material X

Note: Stock QTY is always suggested to be checked using MD04 transaction

PS: RLT not considered here, as stock QTY is available.

SALES ORDER:

Material X
  QTY : 60

 

Material X
QTY : 40

 

Material X
QTY : 60

 

All the above three SO QTYs are confirmed. (160 QTY consumed WRT Stock 160 QTY)

Later,

12th December                   | CRDD: 18th December

Material X
QTY : 50

 

 

In the above case, as stock is NA, system considered RLT 10 Days.

PS: TLT 7 Days is NOT Considered, as those 7 Days are included in (10+3) Days   (As we know, when transportation mode is needed)

NOTE:

If stock is not available, system would consider

Either RLT + PICK/PACK Time

Or

TLT

(Whichever is higher)

An example of one Practical Business Requirement:

“System should consider ONLY Backward Scheduling”.

If Backward Scheduling fails, system should NOT do Forward Scheduling for confirming quantities

Solution :

The below mentioned checkbox must be activated.

  • Checkbox ” Backwards” -corresponding to the relavant Sales Order Type in – Sales Documents : Types – Scheduling backend settings.

 

 

Conclusion

The above mentioned models cover all the DELIVERY SCHEDULING (OUTBOUND) PROCESSES in OTC ( Order To Cash ) stream.

 

Trust, the above is handy & useful. ________________________________________________________________________________

Warm Regards

Sumanth Gururaj

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