The document outlines IT Sapiens' solution for customer-specific product reservations in SAP environments, particularly for make-to-stock products. It addresses the limitations of standard SAP functionality in managing inventory for high-demand, low-supply items and offers workarounds that have arisen in the industry. The solution features include allowing reservations at the material or batch level without impacting material requirements planning, thereby improving sales order processing efficiency.

1. Sales Order Processing
ithwith
Customer Specific Product Reservations
ffor
Make to Stock Products
• ECC 6.0
• S/4 HANA
Solution Brief
• S/4 HANA
Solution Brief

2. Index
Synopsis11
Customer Specific Product Reservation22
Requirements
IT Sapiens’ Solution Features33
Solution Process Flow – Sales Order
Acquistion
44
Solution Demo – Sales Order55
Acquistion
Solution Process Flow – Back Order
Processing (Optional Feature)
66
S l i D B k O d P i
Solution Merits88
l
Solution Demo – Back Order Processing
(Optional Feature)
77
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Questions ?10101010
Our Value Proposition99

3. Synopsis11
 Standard SAP functionality in all R/3 & ECC versions during Order Acquisition:
 Sales Order confirmation for Make-to-Stock Products is a result of
Available-to-Promise checks, on first come first served basis
 For Make-to-Stock Products which are High in Demand and Low in Supply:
 There DOES NOT exist an ability to Exclusively Allocate / Reserve
Inventory for specific customers in anticipation of Sales OrdersInventory for specific customers in anticipation of Sales Orders
 Product Allocation functionality does not help reserve Material or Material
Batches in Inventory to specific customers
S l O d ATP h k h l fi S l O d Li It b t d Sales Order ATP checks, help confirm Sales Order Line Items, but does
not have ability to execute Customer Specific Inventory ATP checks
 Lack of Customer specific Product Reservation functionality has led to use
of following Workarounds, in Industry:
 Move Inventory to Storage Locations which are not in Sales Order
 Specify Storage Location in Sales Order Line Item
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 Manually move stock to Storage Location in Sales Order and run ATP
(Contd…)

4. Synopsis11
 Standard SAP functionality in all R/3 & ECC versions during Order Acquisition:
 Workarounds that involve Inventory moves have resulted in:
 Undesirable Transfer Requirements or Posting Changes inq g g
Warehouses connected to Inventory Storage Locations
 Processing of Open Transfer Requirements or Posting Changes could
result in:result in:
 Breaking high rack full pallets
 Increased toll in warehouse physical moves depending on
St T ’ “Mi d St ” tiStorage Type’s “Mixed Storage” properties
 Unprocessed Warehouse Posting Changes leading to Risk of Physical
Inventory Documents not be cleared in MM-Inventory Management
 e.g. MM-Inventory Management stock is in storage location
different from Storage Location Warehouse Quant (since Posting
Change was not processed)
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5. Customer Specific Product Reservation/Allocation
Requirements22
 Industry Requirements for Customer Specific Stock Reservation:
 For Regular Stock Items (i.e. not Make-to-Order Items)
 Need ability to designate Material / Products that are to be subjected toy g j
Customer Specific Product Reservation
 Need ability to create Customer Specific Product Reservation at
Material or Material-Batch levelMaterial or Material Batch level
 Need ability to view Customer Reservations in Stock / Reqts List
 Need ability for Customer Specific Product Reservations to not be
id d d d l t i M t i l R i t Pl iconsidered as demand elements in Material Requirements Planning
(MRP) / Master Production Scheduling runs (MPS)
 During Sales Order Acquisition:
 System should identify Materials low in supply and high in demand
 System should check for all Customer Reservations and
determine net ATP quantities for the ordering customer
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6. Customer Specific Stock Reservation/Allocation Requirements22
 Industry Requirements for Customer Specific Product Reservation:
 For Regular Stock Items (i.e. not Make-to-Order Items)
 At the end of the Sales Order creation / change / deletion, systemg y
should decrement / offset the Customer Specific Product Reservation
by the confirmed quantities
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7. IT Sapiens’ Solution Features33
 Solution Excerpts:
 For Regular Stock Items:
 Provides ability to designate Material / Products as Customer Specific
Product Reservation relevant
 Provides ability to create “Customer Specific” Product Reservation at
Material or Material-Batch levelMaterial or Material Batch level
 “Customer Specific” Reservation visible in Stock / Reqts. List
 Customer Specific Reservation, though a demand element, DOES
NOT IMPACT Pl i (MRP/MPS) D li i tNOT IMPACT Planning (MRP/MPS), Delivery processing, etc.
 Net ATP quantities in ATP check during Sales Order Confirmation
considers all open Customer Specific Product Reservations
 “Customer Specific” Reservation decremented with Sales Order
Confirmations
 Option to control Backorder Processing too, to check for “Customer
6
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Specific” Reservation
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8. Solution Process Flow – Customer Specific Reservation44
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(Contd…)

9. Solution Process Flow – Customer Specific Reservation44
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(Contd…)

10. Solution Process Flow – Customer Specific Reservation44
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(Contd…)

11. Demo – Material Master Maintenance55
 Process:
 Material relevant to “Customer Specific Reservation” (i.e. high in demand but low in supply)
10
(Contd…)
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12. Demo – Customer Reservation Creation55
 Process:
 “Customer Specific Reservation” is created
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(…Contd…)

13. Demo – Stock / Reqts prior to Order Acquisition55
 Process:
 Stock / Reqts List prior to Order Acquisition
 Shows Material Reservation for Customer # 100000 for 1,000 units
 Shows Material Reservation for Customer # 300000 for 1 600 units Shows Material Reservation for Customer # 300000 for 1,600 units
 Shows NO Material Reservation for Customer # 400000
12
(…Contd…)
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14. Demo – Sales Order Acquisition for Customer WITHOUT
Reservation
55
 Process:
 Sales Order Acquisition for Customer # 400000 who has NO reservations
 The reservation for Customer 100000 for 1,000 units and Customer 300000 for 1,600 units has
reduced the net ATP qty to 0 unitsreduced the net ATP qty to 0 units
13 (…Contd…)
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15. Demo – Sales Order Acquisition for Customer WITHOUT
Reservation
55
 Process:
 Sales Order Acquisition for Customer # 400000 who has NO reservations
 The reservation for Customer 100000 for 1,000 units and Customer 300000 for 1,600 units has
reduced the net ATP qty to 0 unitsreduced the net ATP qty to 0 units
14 (…Contd…)
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16. Demo – Sales Order Acquisition for Customer WITHOUT
Reservation
55
 Process:
 Scope of ATP Check includes “Customer Specific Reservation”
 Scope of ATP Check includes “Check without RLT” (P.S.: not a requirement for the solution)
15 (…Contd…)
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17. Demo – Sales Order Acquisition – Availability Overview55
 Process:
 Availability Overview (Txn CO09)
 Customer Specific Reservations are PASSIVE to Txn CO09 and CO06
16 (…Contd…)
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18. Demo – Sales Order Acquisition for Customer with
Reservation
55
 Process:
 Sales Order Acquisition for Customer # 100000 who has Reservations
 The reservation for Customer 300000 for 1,600 units has reduced the net ATP qty to 1,000 units
17 (…Contd…)
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19. Demo – Sales Order Acquisition for Customer with
Reservation
55
 Process:
 Order qty is 1,000 units, BUT Confirmation against stock is for 900 units
 The reservation for Customer 300000 for 1.700 units has reduced the net ATP qty to 900
unitsunits
18 (…Contd…)
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20. Demo – Sales Order Acquisition for Customer with
Reservation
55
 Process:
 Scope of ATP Check includes “Customer Specific Reservation”
 Scope of ATP Check includes “Check without RLT” (P.S.: not a requirement for the solution)
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(…Contd…)

21. Demo – Sales Order Acquisition for Customer with
Reservation
55
 Process:
 Sales Order qty of 1,100 units is ONLY Confirmed for net ATP qty of 1,000 units, since other
customer reservations of 1,600 units, was holding the inventory
 Customer Reservation of 1 000 units was offset / decremented by 1 000 units of confirmed qty Customer Reservation of 1,000 units was offset / decremented by 1,000 units of confirmed qty
20 (…Contd…)
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22. Demo – Stock / Reqts after Sales Order Acquisition55
 Process:
 Stock / Reqts List after Order Acquisition
 Does NOT show CLOSED (Consumed) Material Reservation for Customer # 100000 for
1000 units1000 units
21
(…Contd…)
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23. Demo – Sales Order Deletion55
 Process:
 Sales Order Deletion
 Customer Reservation, IF NOT CLOSED is appropriately reversed
 In this case of Sales Order Deletion Customer Reservation is re-opened In this case of Sales Order Deletion, Customer Reservation is re-opened
22
(…Contd…)
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24. Demo – Sales Order Acquisition for Customer without
Reservation
55
 Process:
 For Customer WITHOUT “Customer Specific Reservation”
 OPTIONS available:
 Option 1 Option 1
 NO Order Confirmation during Sales Order Acquisition
 Option 2 
 Order Confirmation is restricted to the limit of balance ATP quantity based on:
 SAP Standard ATP Scope of Checking based on ATP Rule shown below:
23 (…Contd…)
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25. Solution Process Flow – Customer Specific Reservation
during Backorder Processing (OPTIONAL Feature)66
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26. Demo – Backorder Processing (OPTIONAL Feature)77
 Process:
 Check during Backorder Processing if Item is relevant to “Customer Specific Reservation”
 Check during Backorder Processing if Open “Customer Specific Reservation” exists
25 (..Contd…)
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27. Demo – Backorder Processing (OPTIONAL Feature)77
 Process:
 Check during Backorder Processing if Item is relevant to “Customer Specific Reservation”
 Check during Backorder Processing if Open “Customer Specific Reservation” exists
26 (..Contd…)
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28. Demo – Backorder Processing (OPTIONAL Feature)77
 Process:
 Check during Backorder Processing if Item is relevant to “Customer Specific Reservation”
 Error during Backorder Processing if NO Open “Customer Specific Reservation” exists
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29. Demo – Backorder Processing after Customer Reservation
Creation (OPTIONAL Feature)
77
 Process:
 Backorder Processing allowed since “Customer Specific Reservation” exists
28 (Contd…)
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(…Contd…)

30. Demo – Customer Reservation updated after Backorder
Processing (OPTIONAL Feature)
7777
 Process:
 Upon saving Backorder Processing “Customer Specific Reservation” is decremented
 Stock / Reqts List does not show Customer Reservation if it is consumed
29 (…Contd)
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31. Solution Merits88
 “Customer Specific Stock Reservation” Merits:
 Provides ability to disable ‘Sales Order Confirmation on first come first
served basis’, specially suited for Products high in demand and low in, p y g
supply
 Provides ability to reserve Inventory for specific customers in anticipation
of Sales Orders without changes to existing stockof Sales Orders, without changes to existing stock
 Unlike Product Allocation functionality, no additional master data need to
be maintained
U lik P d t All ti C t S ifi P d t R ti b Unlike Product Allocation, Customer Specific Product Reservations can be
maintained at a Material Batch level
 Unlike Product Allocation, Customer Specific Product Reservations can be
considered in ATP checks in other modules
 Customer Specific Product Reservations are decremented / consumed /
offset with Sales Order Item confirmations
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 NO SOURCE CODE MODIFICATIONS OF ANY KIND
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32. Our Value Proposition99
 Reduced TCO, Highest First Pass Yield and Highest Quality from:
 Strong expertise in providing end-to-end Supply Chain Solutions
 Strong Expertise implementing SAP, enriching Business processes and
alleviating GAPs in SAP, for Life Sciences, Consumer Products, Chemical and
High-Tech Industry segments
 Very experienced consulting resource base with 10+ years experience andy p g y p
deep cross-functional expertise
 Rich Knowledge base of custom solutions to address GAPs in most SAP
applicationspp
 Ability to demonstrate end-state on Day 1 using in-house SAP Systems rich
with:
 Pre-configured SolutionsPre configured Solutions
 demo-able “Value Add” and “GAP Alleviating” SAP Functionality
 Demo-able IT Sapiens custom solutions
 Framework to develop strawman solutions
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 Framework to develop strawman solutions
 Our “Say-To Do” Ratio is 1:1
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33. Questions ?10101010
 For more information…kindly contact
Vijay Pisipaty
Director-ERP Solutions & Consulting
IT Sapiens, Inc.
e-mail: vijay.pisipaty@itsapiens.com
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