The document discusses batch expiration date management in SAP MRP/MPS, highlighting the gaps in standard SAP functionalities related to managing inventory expiration. It presents a solution by IT Sapiens that dynamically considers expiration dates in inventory planning and offers real-time visibility of expiring batches, ensuring net requirements are accurately calculated. The solution is scalable, integrates with standard SAP configurations, and aims to enhance supply chain processes across various industries.

1. Batch Expiration Date Management in
SAP MRP/MPSSAP MRP/MPS
&
M t i l Ob lMaterial Obsolescence
• SAP ECC 6 0• SAP ECC 6.0
Solution BriefSolution Brief

2. Index
Synopsis11
Batch Expiration Date Mgmt in MRP/MPS
Requirements
22
IT Sapiens’ Solution Features33
S l ti M it55
Solution Demo44
Solution Merits55
Our Value Proposition66
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
Questions ?77
p
1

3. Synopsis11
 Standard SAP MRP/MPS Functionality in all R/3 and ECC versions:
 MRP considers inventory stock categories at a material level, based on the
configuration of the MRP related availability checking ruleconfiguration of the MRP related availability checking rule
 For a material, per stock category (unrestricted, blocked, quality,
returns) MRP considers the cumulative inventory of batches,
irrespective of the expiration date of respective batchesirrespective of the expiration date of respective batches
 It is expected that when batches expire out into the future, the system
should recognize the batch expiration date and decrement the
availability of the stock such that a planned order/pur.reqn could be
suggested for internal/external procurement vis-a-vis a requirement/issue.
This is a GAP in SAP.
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
2

4. Batch Expiration Date Mgmt in MRP/MPS Requirements22
 Industry Requirements for Batch Expiration Date Mgmt in MRP/MPS:
 For Regular Stock items, Customer Stock items, Subcontractor Stock
Items, Vendor Consignment Stock Items, Project Stock itemsItems, Vendor Consignment Stock Items, Project Stock items
 If a material is batch managed and shelf life managed, MRP should
 during planning, dynamically take into consideration the
expiration date of balance batches in inventory after consumptionexpiration date of balance batches in inventory after consumption
 Calculate the inventory quantity of a batch (for all batches in
general) that will expire on the expiration date
 reduce the ‘net available material inventory’ per requirement
date, by the inventory of batches whose expiration date is less
than the requirement date of the requirement.
 The batch numbers of the expired batches and their quantities
should be displayed in the batch line (MRP Element) on the MRP
Results/Evaluation Screen and in Stock/Requirements ListsResults/Evaluation Screen and in Stock/Requirements Lists
 Material Obsolescence Reports should be based on Net Expiring Qty.
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
3

5. IT Sapiens’ Solution Features33
 Solution Excerpts:
 For Regular Stock, Customer Stock, Subcontractor Stock, Vendor
Consignment Stock and Project Stock materials, the Solution
 dynamically takes into consideration the expiration date of
balance batches in inventory after consumption
 Calculates the inventory quantity of a batch that will expire on they q y p
expiration date
 Reduces the ‘net available material inventory’ per requirement
date by the inventory of batches whose expiration date is lessdate, by the inventory of batches whose expiration date is less
than the requirement date of the requirement
 Expiring Batch numbers and their quantities are displayed in the batch
line (MRP Element) on the MRP Results/Evaluation Screen and the
Stock/Requirements List Screen
 Stock/Reqts List shows expiring batches even for Materials planned by
APO/SCM
 Functionality includes Materials planned by “Re-order Point Planning’ too
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
4

6. IT Sapiens’ Solution Features33
 Solution Excerpts:
 Functionality works with and without MRP Areas too
 Ability to run On-Demand MRP/MPS Runs “WITH Shelf Life Expiration
Date Planning (SLED)” and “WITHOUT Shelf Life Expiration Date Planning
(SLED)”
 Functionality can be activated by Plant and in combination with any other Functionality can be activated by Plant and in combination with any other
delimiters
 e.g. Plant, Material Type, Division
 Pl t M t i l T M t i l G e.g. Plant, Material Type, Material Group
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
5

7. IT Sapiens’ Solution Features33
 Solution Excerpts:
 Scope of SAP Transactions that the Solution works with is:
 MD01 – Total planning (Online) (MRP)
 MD02 – Single Item, Multi-level (MRP)
 MD03 – Single-Item, Single-Level (MRP)
 MD04 & MD07 – Stock/Requirements List
 MD05 & MD06– Individual and Collective Display of MRP List
 MD41 – Single Item Multi-level MPS
 MD42 – Single Item Single Level (MPS)
 MD43 – Single Item Interactive (MPS)
 MD50 – Single Item –Sales Order – (MRP)
 MDBT – Total planning (Background) (MRP)
 MDBS – Total planning (Background) (MPS)
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
6

8. Solution Demo – Material Batch Stock44
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
7

9. Solution Demo – MRP Run44
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
8

10. Solution Demo – MRP Run Results44
Regular Stock Expiring
Batches shown
Customer Stock segment
Expiring Batch shown
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
9

11. Solution Demo – MRP Run Results44
Subcontractor Stock SegmentSubcontractor Stock Segment
Expiring Batch shown
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
10

12. Solution Demo – MRP Evaluation List44
Regular Stock Expiring
Batches shown
Customer Stock segment
Expiring Batch shown
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
11

13. Solution Demo – MRP Evaluation List44
Subcontractor Stock Segment
Expiring Batch shown
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
12

14. Solution Demo – Stock/Requirements List44
Ability to run MRP:y
• with SLED Plng. OR
• without SLED Plng.
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
13

15. Solution Demo – Stock/Reqts List for Materials Planned in
APO/SCM44
Expiring Batches shown
even for Materials Planned
in APO/SCM/External
System
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
14

16. Solution Demo – Stock Requirements List
- Materials with Reorder Point Planning44
“Expiring Batches” – REAL
TIME Disposition on the time
scale
15 May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential

17. Solution Demo – Material Obsolescence Report44
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
16

18. Solution Demo – Material Obsolescence Report44
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
17

19. Solution Demo – Material Obsolescence Report44
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
18

20. Solution Merits55
 “Batch Expiration Date Mgmt in MRP/MPS” Merits:
 Real time net requirements planning taking into consideration Batch
expiration date / last ship date / next inspection date or any other date fromp p p y
the 6 additional Batch dates
 Standard SAP MRP/MPS configuration and master data leveraged
 Scalable to factor any ‘Batch characteristic’ driven Batch Inventory Scalable to factor any Batch characteristic driven Batch Inventory
consideration, e.g. Potency, Batch Statuses, Batch Usage decision,
Quality score, etc.
R li MRP ti i Pl d O d P h R Reliance on MRP suggestions viz. Planned Orders, Purchase Reqn,
instead of Custom “Point-in-time” reports
 Real time visibility of ‘Discounted Batch Inventory’ in MRP Lists,
Stock/Requirements List. Accurate Material Obsolescence Projections.
 Functionality can be activated/de-activated per Plant or any other
combinations of delimiters
 Functionality works with and without MRP Areas too
 NO SOURCE CODE MODIFICATION OF ANY KINDMay 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
19

21. Our Value Proposition66
 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, Food and
Beverage, Chemical and High-Tech Industry segments
 Experienced in Implementing cGMP compliant SAP Solutions for Regulated
Environments
 Very experienced consulting resource base with 12+ years experience and
deep cross-functional expertise
 Rich Knowledge base of custom solutions to address GAPs in most SAP
applications
 Ability to demonstrate end-state on Day 1 using in-house SAP Systems rich with:
 Pre-configured Solutions
 demo-able SAP Functionality
 Demo-able IT Sapiens custom solutions
 Framework to develop strawman solutions
 Our “Say-To Do” Ratio is 1:1
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
20

22. Questions ?77
 For more information…kindly contact
Vijay Pisipaty
Director-ERP Solutions & Consulting
IT Sapiens, Inc.
e-mail: vijay.pisipaty@itsapiens.com
May 27th 2014 © 2014 IT Sapiens, Inc.
Proprietary and Confidential
21