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Transportation Management with SAP LES

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12<br />

Shipment<br />

At this point, you must note the following terms: Shipments are carried out to transport<br />

goods from your enterprise or warehouse to the ship-to party, whereas transport requests<br />

(from Warehouse Manager [WM] or lean WM) are used for shipments <strong>with</strong>in the warehouse.<br />

I recommend adopting this terminology. In the shipment document, shipment<br />

is mapped. I have also come across the terms forwarding instruction or shipping order.<br />

These also refer to the shipment document. You must therefore differentiate between<br />

shipment and transport request.<br />

12.1.1 Shipment Document Tasks<br />

Often, and particularly in larger enterprises, the departments that process delivery<br />

documents and shipment documents are separated. Figure 12.1 illustrates typical<br />

tasks that must be carried out to implement shipments.<br />

For example, if the forwarding agent has not yet been determined (because the<br />

customer has not defined a specific forwarding agent), the MRP controller must<br />

find a suitable forwarding agent. He must know in advance the shipping quantity<br />

and when the goods are supposed to be collected and shipped. Forwarding companies<br />

usually calculate loading meters or weight, in rare cases also volume (very<br />

often for air freights if, in comparison, the volume is higher than the weight). The<br />

deadlines must also be taken into account, in particular the date when the ship-to<br />

party must receive the material.<br />

In many cases, enterprises conclude outline agreements <strong>with</strong> forwarding agents.<br />

Pending shipments are increasingly shipped via Electronic Data Interchange (EDI)<br />

to the forwarding agent. This EDI output contains all information required by the<br />

forwarding company to implement on-time shipments and prepare the labeling of<br />

trucks or containers for possible shipment of dangerous goods.<br />

Some shipments are not forwarded to the ship-to party directly, but to load transfer<br />

points or cross-docking stations first. For this purpose, the routes may have to<br />

be adjusted and legs determined. MRP and implementation of a shipment may<br />

be more complex if materials are shipped via sea freight or air freight. Customs<br />

offices, ports of departure (either sea port or airport), and ports of destination must<br />

be considered in leg planning.<br />

384<br />

© 2014 by Galileo Press Inc., Boston (MA)

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