Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

5 tips for sap material master buyer and planner functions

2,960 views

Published on

On January 31, 2014 SAP Material Master – A Practical Guide author Matt Johnson shared his top 5 tips for buyer and planner functions in SAP Material Master.
Topics discussed included::
Key buyer and planner concepts in SAP Material Master
How to leverage buying power on economies of scale
Benefits of the automatic reordering mrp types

Published in: Technology
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (Unlimited) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/qURD } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/qURD } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/qURD } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/qURD } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/qURD } ......................................................................................................................... Download doc Ebook here { https://soo.gd/qURD } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THIS can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THIS is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THIS Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THIS the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THIS Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THAT BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download Full EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download Full doc Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download doc Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book that can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer that is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story That Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths that Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THAT BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download Full EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download Full doc Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download doc Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book that can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer that is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story That Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths that Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (Unlimited) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... Download Full EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ACCESS WEBSITE for All Ebooks ......................................................................................................................... Download Full PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... Download EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... Download doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

5 tips for sap material master buyer and planner functions

  1. 1. 5 Tips for Planners and Buyers in SAP Material Management Matt Johnson Martin-Baker America, Inc. © 2014 ERP Corp. All rights reserved.
  2. 2. Introduction • • • • 3 Material buyers and planners are at the front line of materials management SAP provides the necessary tools to allow buyers and planners to make a significant impact on lowering the cost of goods sold This is accomplished by properly managing the SAP Material Master and supporting functions Here are 5 tips that will help you succeed!
  3. 3. But first….. a question for the attendees! • 4 How many of you have authorization to make changes to the material master?
  4. 4. 5 Great Materials Management Tips • • • 5 Buyers • Tip #1 PO Unit of Measure Conversion – Economies of Scale • Tip #2 Quota Arrangements – Split Material Sourcing Planners • Tip #3 Reorder Point Planning – Lead Time Reduction • Tip #4 Lot Sizing – Accurate Cost Estimates Team Environment • Tip #5 Materials Management as a Team
  5. 5. Buyers: Tip #1 Buying on Economies of Scale • • • 6 The Order Unit field is used to buy materials in UoM that differ from the Base UoM A great tool for buying in bulk to reduce inventory costs Set the Order Unit field in the Material Master to your supplier’s UoM where price breaks are given
  6. 6. Buyers: Tip #1 Buying on Economies of Scale (cont.) • • 7 A conversion factor between the Base UoM and the Order UoM must be set Upon entering any alternative unit of measure, like the Order UoM, a pop-up screen will appear for you to complete the conversion factor
  7. 7. 5 Great Materials Management Tips • • • 8 Buyers • Tip #1 PO Unit of Measure Conversion – Economies of Scale • Tip #2 Quota Arrangements – Split Material Sourcing Planners • Tip #3 Reorder Point Planning – Lead Time Reduction • Tip #4 Lot Sizing – Accurate Cost Estimates Team Environment • Tip #5 Materials Management as a Team
  8. 8. Buyers: Tip #2 Split Material Sourcing • • • 9 A quota arrangement is a way of allocating work among several sources of supply for the same material You must select which business processes are to be considered for quota arrangements in the Purchasing screen of the Material Master (for example: planned orders and purchase requisitions) You must also maintain a source list of vendors to be included in the quota arrangement
  9. 9. Buyers: Tip #2 Split Material Sourcing (cont.) • • 10 In the quota arrangement, you must define the percentage to be allocated to each vendor There are refinements available to customize lot sizing
  10. 10. Buyer / Planner Question • 11 How many of you are performing a joint buyer / planner role?
  11. 11. 5 Great Materials Management Tips • • • 12 Buyers • Tip #1 PO Unit of Measure Conversion – Economies of Scale • Tip #2 Quota Arrangements – Split Material Sourcing Planners • Tip #3 Reorder Point Planning – Lead Time Reduction • Tip #4 Lot Sizing – Accurate Cost Estimates Team Environment • Tip #5 Materials Management as a Team
  12. 12. Planners: Tip #3 Lead time reduction • • • 13 Reorder point planning is a method of ensuring continuous inventory supply You must use one of the Reorder point planning MRP Types in the MRP 1 screen of the material master If you are using a manual reorder point, you must calculate your reorder point based on consumption during the vendor’s lead time
  13. 13. Planners: Tip #3 Lead time reduction (cont.) • 14 There are two significant benefits to reorder point planning • 1) You can reduce the overall lead time of an assembly by placing long lead time components of the critical path on reorder point planning • 2) By placing common hardware, such as nuts, bolts and rivets on reorder point planning, and allowing production technicians to make material reservations from inventory, you will provide employee empowerment to the shop floor
  14. 14. 5 Great Materials Management Tips • • • 15 Buyers • Tip #1 PO Unit of Measure Conversion – Economies of Scale • Tip #2 Quota Arrangements – Split Material Sourcing Planners • Tip #3 Reorder Point Planning – Lead Time Reduction • Tip #4 Lot Sizing – Accurate Cost Estimates Team Environment • Tip #5 Materials Management as a Team
  15. 15. Planners: Tip #4 Accurate Costing • • • 16 The costing lot size, defined in the Costing 1 screen of the Material Master, is the lot size used as a basis for your cost estimates Setting this lot size equal to your normal production lot size will help you to provide accurate cost estimates This is particularly critical when using standard setup times in your production routers
  16. 16. 5 Great Materials Management Tips • • • 17 Buyers • Tip #1 PO Unit of Measure Conversion – Economies of Scale • Tip #2 Quota Arrangements – Split Material Sourcing Planners • Tip #3 Reorder Point Planning – Lead Time Reduction • Tip #4 Lot Sizing – Accurate Cost Estimates Team Environment • Tip #5 Materials Management as a Team
  17. 17. Buyers / Planners: Tip #5 Teamwork • • • • 18 The SAP Material Master requires inputs from both buyers and planners Make sure that responsibilities are clearly defined Educate one another on the various settings for each party’s responsibilities Communicate openly with each other, as well as inventory control personnel, on Material Master settings and activities
  18. 18. Buyers / Planners: Tip #5 Teamwork (cont.) • • • 19 Example: The planned delivery time is maintained in the MRP 2 screen This screen is traditionally maintained by a material planner However, I recommend that buyers maintain the planned delivery time field, as they are more in sync with lead times in the vendor source list
  19. 19. Five Key Ideas • • • • • 20 Material buyers should use a PO unit of measure that is aligned with the most economic lot size that is available or allowed Quota arrangements facilitate long term and strategic partnerships at the buyer level Reorder point planning is an excellent source for lead time reduction and employee empowerment Aligning procurement and production lot sizes with costing lot sizes will help to make cost estimates more accurate and meaningful Team work is critical amongst buyer / planner / inventory management roles
  20. 20. A gift for the attendees • • • 21 All attendees of today’s webinar are entitled to a $5 voucher towards my book, SAP Material Master – A Practical Guide Please visit the following link: https://www.createspace.com/4548187 Apply the discount code: DBSM3T3M to receive $5 off of your purchase
  21. 21. Resources • 22 Matthew Johnson, SAP Material Master – A Practical Guide (Espresso Tutorials, 2013). • ISBN-10: 1-4943-1859-8 ISBN-13: 978-1-4943-1859-8 • www.amazon.com/SAP-Material-Master-PracticalGuide/dp/1494318598/ref=sr_1_1?ie=UTF8&qid=1388430123& sr=8-1&keywords=sap+material+master • www.amazon.com/SAP-Material-Master-Practical-Guideebook/dp/B00H8SPI8G/ref=sr_1_2?ie=UTF8&qid=1388430419 &sr=8-2&keywords=sap+material+master
  22. 22. Questions • • Now: • Ask questions now for immediate answers Later: • mjohnson122@verizon.net Q&A 23
  23. 23. Disclaimer SAP®, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP® products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. ERP Corp is neither owned nor controlled by SAP.

×