Next-generation Just-In-Time Supply to Customer | Part 3
Just-in-time / just-in-sequence processing is important to the automotive industry. In my third blog, I will focus on the supply to the customer process and how the next-generation JIT Supply to Customer solution in SAP S/4HANA helps.
Let me recap what we learned from my earlier blogs: With line-side storage being the most expensive storage space for most companies, manufacturers need to keep minimal inventory levels on the production line. Therefore, suppliers are requested to deliver smaller quantities of components multiple times a day via just-in-time and just-in-sequence call-offs.
Next-generation Just-in-Time and Just-in-Sequence Supply to Customer in SAP S/4HANA ensures that components and modules required for manufacturing or assembling at the customer site are delivered in the required quantity and at the necessary time.
The solution covers the end-to-end process for both inbound summarized JIT calls (JIT calls) and inbound sequenced JIT calls (JIS calls). It is available in both SAP S/4HANA Cloud and SAP S/4HANA. The operations covered include, for example, receiving call-offs with subsequent component group determination for modules or assemblies, packing in sequence, and a new, state-of-the-art delivery confirmation process.
Now let us take a closer look at the solution
The solution offers enhanced usability due to native Fiori apps. An overview page for the JIT Planner and analytical apps such as the Stock Availability Analysis and the Demand Analysis increase transparency and visibility into the stock situation and into demand deviations. In addition, the solution provides comprehensive monitoring apps so that the planner can move from a reactive to a proactive working mode.
The flexible action control enables customers to adjust the processing of JIT calls to their needs, introduce their own actions (process steps) through extensibility, interlink multiple actions with or without intermediate status updates and to add logic to JIT actions provided by SAP through extensibility.
A capability I would like to highlight is the new delivery confirmation process. It provides significant improvements compared to our traditional solution.
The next-generation JIT/JIS solution supports collective delivery confirmations with access to multiple JIT calls. To support ‘pay by consumption’, which is a standard procedure in Automotive, the delivery confirmation handling has been enhanced with a consignment process:
- When the components or modules are shipped to the customer, a consignment stock fill-up is posted to reflect that while the goods were physically shipped and are visible as consignment stock at the respective customer, they still belong to the supplier.
- As soon as a delivery confirmation from a customer has been received (indicating that the parts were consumed), the delivery confirmation items are matched automatically with what has been delivered to the customer. During matching, the delivery confirmation items are released, triggering the consignment issue process.
- As part of the consignment issue process, an outbound delivery is created and posted goods issue, reducing the consignment stock to the customer. This outbound delivery is the basis for billing or self-billing.
- Finally, the customer sends out self-billing invoices based on the delivery confirmations.
It is important to mention that the next-generation JIT/JIS solution is fully integrated into the SAP Self-Billing Cockpit in SAP’s industry cloud.
The delivery confirmation process can be activated on the JIT customer supply control level, depending on the combination of customer, customer supply area, plant, and component group material. In addition, it can be specified whether and how reorders are included in the delivery confirmation process.
Packaging group specification / packing groups
Another highlight is the packaging group specification for JIS processing. It defines the packaging material and the slots for a component group material/module to be packed (for example, to represent slots in racks).
The packaging group specification is the foundation for the creation of packing groups for JIS calls. Based on the sequence number, the component groups/modules are assigned to a slot within the packing group, depending on the withdrawal sequence.
In case of sequence number changes, the slots are re-allocated automatically if the packing groups are not released yet for production or packing.
Multi-level packing, as well as separate packing for reorder JIT calls, can be handled as well.
To support this process, we created two new Fiori apps:
- The Fiori app Just-in-Time Packaging Group Specification enables you to create and maintain the packaging group specification, including packaging material, a total number of slots, group of slots, and slot IDs. You can also assign the component group material/module and the lower-level packaging specification via this app.
- The Manage JIT Delivery Sequence Groups app allows for creating and editing groups of component group materials packed and delivered in sequence. You can specify number settings for unique number intervals per packing level and that are separated by packing for normal and reorder JIT calls and assign component group materials/modules by JIT customer supply controls.
Apart from the capabilities mentioned above, the solution provides high flexibility in component group/module determination either through rules-based component group determination (based on the business rules capabilities of SAP Business Technology Platform) or via BAdI.
Also, for summarized JIT calls, we provide integration to SAP Extended Warehouse Management embedded in SAP S/4HANA.
Finally, we have enhanced the solution with RPA processing for increased automation.
I hope you enjoyed the read. Stay tuned for more in the coming months.
For more information, please refer to the following documents: Solution Summary, SAP S/4HANA 2021, and the online help on JIT/JIS Supply to Customer.
For the setup of a first prototype, please check out the Quick Start Service for JIS processes in SAP S/4HANA.
Simone Finger, SAP Industry Business Unit Automotive
A big thank you goes to André Nuglisch, Product Management Discrete Industries, and Julia Ponzini, Industries and Customer Advisory GTM, for their support on this blog.
Dear Simone san,
Thank you for providing such a helpful summarization.
Currently we've been trying to implement Next-Gen JIT/JIS process based on SAP Best Practice building block 2EM.
Please let me confirm below :
Any configuration documents for S2C have been provided by SAP?
Also, how we can implement the Consignment process in the JIS/JIT process?
(I can't find how the consignment process can be integrated with JIT process yet.)
thanks a lot for your interest in our solution.
Let me answer your second question first: the consignment process can be carried out in conjunction with the delivery confirmation process as described above.
A consignment issue notification can also be treated as a final delivery confirmation.
Please contact me directly if you you need to understand this process in more detail.
A configuration guide is not available, but the documentation has been enhanced under the section Configuration.
Hello Simone san,
Thank you very much for your prompt reply with the reference and allowance for me to ask you for the detail!
Could you tell me how I can contact to you directly?
I tried but couldn't find contact.
Above document link some how do not work for me.
I get directed to below link :- https://help.sap.com/docs/page-not-found?url=https%3A%2F%2Fhelp.sap.com%2Fdocs%2FPRODUCT_ID%2F84dbf30eedb4450983dc3d1c81b71996%2Fbb8cc89be15e44d3abbe35a399904b3c.html%3Fstate%3DDRAFT%26version%3D2111.500%26locale%3Den-US
Can you share any blog which covers the configuration guide.
Also extensibility guide is only useful if we want custom field to be transferred to EWM. Is my understanding is correct?
thanks for your interest in our solution.
The link to the Configuration section is updated accordingly.
As for your second remark, please be aware that this blog addresses the Supply to Customer process. I assume this comment is related to the one you posted in the JIT S2P blog comment section, which I will address there.
First many thanks for your sharing, it is really impressive solution for Automotive industry.
do you have any solution process test screens or demonstration material especially for supply to customer by JIS which we can take reference for further explore ?
I need know which sap fields and what configuration that can be fit for customer requirements before implementation .
We do have several demos ready which can be used in case you have access to our demo store:
Please search for next-generation JIT and you will find demos covering both JIT solutions (S2C and S2P). For S2C we have an online JIS demo for your use and an offline JIT demo.
In case you do not have access to the Demo Store, please let me know and we can see how I can support you.
Really appreciate for your information.
I had access to the Demo store and find JIT off-line demo which is demo number 18226, but not for JIS online demo. could you let me know which Demo number is for JIS ?
18226 is the JIS online demo.
Yes, thanks a lot for your checking.
after checking those documents and I get another one question for you.
as mentioned JIT/JIS scenario those looks only available for Fiori tiles, not have SAP GUI transaction for achievement, also there are few of fields could not find in SAP GUI traditional transaction such as JIT1, JITM,JITV as so on,
so if client running summary JIT and JIS solution in current SAP environment, how we migrate to this solution? I am really confused now .
we have two JIT/JIS solutions in parallel for the processing of inbound JIT/JIS messages in both SAP S/4HANA and SAP S/4HANA Cloud, private edition.
The so-called next-generation JIT Supply-to-Customer solution has end-to-end Fiori apps and has lots of improvements compared to the classical solution:
You can use both inbound JIT/JIS solutions in parallel, e.g. you can use the next-generation solution for a new plant or a new line in order to benefit from the great developments we have made in the last couple of years.
In SAP S/4HANA Cloud (public), only the next-generation JIT/JIS solution is available.
Hope this helps you. Please let me know if I can help you further.
Very thanks for your helpful information.
looks like it is not only simply upgraded solution, but like full model change which we need explore more for how we bring this solution to customer .
Appreciate again for your quick response.
Can the next generation JIT/JIS Supply to Customer solution be used with discreet manufacturing? Does the next generation JIT/JIS Supply to Customer require a delivery be created before sequentially picking of a pallet in EWM?
if your first question is about an integration into shop floor manufacturing using production orders, the answer is No at the moment. A significant majority of our customer base is fine with an integration into repetitive manufacturing.
An integration into EWM indeed would require the creation of an outbound delivery as prerequisite for picking in EWM. That is basically how EWM supports an outbound process.
I have thoroughly read your very interesting blogs on the new generation of JIT calls.
I would like to ask you a few questions:
Scenario: external replenishment, where the supplier is another Plant in same client (same company or different company).
Thanks in advance,
thanks for your feedback on the blogs, good to hear you liked them!
To answer your questions:
1 You are right, the receiving plant would use S2P and the delivering plant S2C.
2. This is possible, but then the production process would not be used via the JIT call and you would need stock on hand.
I'm following your blog and recently tested the best practice scope item 55F (S2C) in our S/4HANA cloud tenant.
I would also like to ask you a few questions for the following scenario: Manufacturing based on forecast, final picking and packing in EWM based on sequenced JIT call
Thanks in advance.