IT Sapiens provides a unique solution for "Customer Specific Shelf Life Planning" in SAP MRP/MPS

1. Customer Specific
f f
Shelf Life Expiration Planning
in
SAP ERP Classic MRP/MPS
SAP ERP Classic MRP/MPS
• ECC 6.0
• S/4 HANA
Solution Brief
S/4 HANA
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2. Index
Synopsis
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General SLED Planning in Classic MRP/MPS
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- Requirements
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Customer Specific SLED Planning in
Classic MRP/MPS - Requirements
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IT Sapiens’ Shelf Life Planning Solution Features
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T i ’ ifi h lf if
Solution Demo
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IT Sapiens’ Customer Specific Shelf Life
Planning Solution Features
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Solution Merits
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O V l P iti
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Questions ?
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Our Value Proposition
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3. Synopsis
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 Classic MRP/MPS Functionality in all SAP ERP versions(including S/4 HANA):
 MRP considers inventory stock categories at a material level, based on the
configuration of the MRP related availability checking rule
configuration 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 batches
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 ERP.
 Customer specific Shelf Life requirements in Sales Orders, are not
recognized during planning, and system nets inventory against
requirements on quantity basis i.e., Customer or Sales Order specific Shelf
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requirements on quantity basis i.e., Customer or Sales Order specific Shelf
Life Planning is also a GAP in SAP ERP.
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4. General Shelf Life Expiration Planning in MRP/MPS -
Requirements
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 Industry Requirements, in general, for SLED Planning in Classic MRP/MPS:
 For Regular Stock items, Customer Stock items, Subcontractor Stock Items,
Vendor Consignment Stock Items, Project Stock items which are batch
g j
managed and shelf life managed, MRP should during planning:
 dynamically take into consideration the expiration date of balance
batches in inventory after consumption
batches in inventory after consumption
 Calculate the inventory quantity of a batch (for all batches in general)
that will expire on the expiration date
d th ‘ t il bl t i l i t ’ i t d t b th
 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 Lists
q
 Material Obsolescence Reports should be based on Net Expiring Qty.
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5. Customer Specific Shelf Life Planning in MRP/MPS -
Requirements
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 Industry Requirements for Customer & Sales Order SLED Planning in Classic
MRP/MPS:
 For Regular Stock items which are batch managed and shelf life managed,
MRP should, during planning for Sales Order item with no batch assigned:
 dynamically check if a customer specific Shelf Life requirement exists
(i.e. a customer specific Batch condition record exists)
(i.e. a customer specific Batch condition record exists)
 should, during netting of requirement v/s stock, ignore/expire batches
whose shelf life does not meet the Sales Order item’s specific Shelf Life
requirements
requirements
 should dynamically trigger a suggestion (planned order or Pur.Req.) to
meet the ‘open net requirement’ quantity of Sales order item
 The batch numbers of the expired / ignored batches and their quantities
should be displayed in the batch line (MRP Element) on the MRP
Results/Evaluation Screen and in Stock/Requirements Lists
 Material Obsolescence Reports should be based on Net Expiring Qty.
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6. IT Sapiens’ Shelf Life Planning Solution Features
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 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 the
y q y p
expiration date
 Reduces the ‘net available material inventory’ per requirement date, by
the inventory of batches whose expiration date is less than the
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 or external systems, e.g. Manugistics, Logility, etc
 Functionality includes Materials planned by “Re-order Point Planning’ too
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7. IT Sapiens’ Shelf Life Planning Solution Features
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 Solution Excerpts:
 Functionality works with and without MRP Areas too
 Note: MRP Areas are mandatory for Storage Location level planning in
S/4 HANA
 Ability to run On-Demand MRP/MPS Runs “WITH Shelf Life Expiration Date
Planning (SLED)” and “WITHOUT Shelf Life Expiration Date Planning
Planning (SLED) and WITHOUT Shelf Life Expiration Date Planning
(SLED)”
 Functionality can be activated by Plant and in combination with any other
d li it
delimiters
 e.g. Plant, Material Type, Division
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8. IT Sapiens’ Shelf Life Planning Solution Features
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 Solution Excerpts:
 Scope of SAP S/4 and ECC 6.0 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)
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9. IT Sapiens’ Customer Specific Shelf Life Planning Solution
Features
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 Solution Excerpts:
 Requires foundation of baseline “IT Sapiens Shelf Life Planning Solution”
 Requires Batch determination in Sales & Distribution to be enabled
 Solution can only be activated in conjunction with baseline “IT Sapiens
Shelf Life Planning Solution”
 Sales Order SLED Planning activation requires baseline SLED Planning
g q g
solution to be active for Plant+Material Type+Division,
 During planning for Sales Order item with no batch assigned, the solution:
 dynamically checks if a customer specific Shelf Life requirement exists
 dynamically checks if a customer specific Shelf Life requirement exists
(i.e. a customer specific Batch condition record exists)
 During netting of requirement v/s stock, ignores/expires batches whose
shelf life does not meet the Sales Order item’s specific Shelf Life
requirements
 dynamically triggers a suggestion (planned order or Pur.Req.) to meet
the ‘open net requirement’ quantity of Sales order item
 Integrated with all transactions in scope of baseline Solution
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10. Solution Demo – Material Batch Stock
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11. Solution Demo – Material Batch Expiration Dates
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12. Solution Demo – SLED Planning Activation – Scenario 1
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 Baseline “IT Sapiens Shelf Life Planning Solution” – ACTIVE
 Sales Order SLED Planning Feature - INACTIVE
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13. Solution Demo –Stock/Requirements List after MRP Run
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 MRP was Run with following SLED Planning Activation settings:
 Baseline “IT Sapiens Shelf Life Planning Solution” – ACTIVE
 Sales Order SLED Planning Feature – INACTIVE
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 RESULT  Batches that DO NOT meet Customer SLED Reqt are not ignored
 Standard SAP functionality without IT Sapiens’ solution being Active
S l O d It
Sales Order Item
Customer Shelf Life Reqt
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14. Solution Demo – SLED Planning Activation – Scenario 2
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 Baseline “IT Sapiens Shelf Life Planning Solution” – ACTIVE
 Sales Order SLED Planning Feature - ACTIVE
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15. Solution Demo –MRP List after MRP Run
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 MRP was Run with following SLED Planning Activation settings:
 Baseline “IT Sapiens Shelf Life Planning Solution” – ACTIVE
 Sales Order SLED Planning Feature – ACTIVE
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 RESULT  Batches that DO NOT meet Customer SLED Reqt are ignored;
Planned orders are suggested by MRP to meet Sales Order requirement
Sales Order Item
Sales Order Item
Customer Shelf Life Reqt
Regular Stock “Net Qty” of
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Expiring Batches shown
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16. Solution Demo –Stock/Requirements List after MRP Run
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 MRP was Run with following SLED Planning Activation settings:
 Baseline “IT Sapiens Shelf Life Planning Solution” – ACTIVE
 Sales Order SLED Planning Feature – ACTIVE
g
 RESULT  Batches that DO NOT meet Customer SLED Reqt are ignored;
Planned orders are suggested by MRP to meet Sales Order requirement
Sales Order Item
Sales Order Item
Customer Shelf Life Reqt
Regular Stock “Net Qty” of
Expiring Batches shown
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Expiring Batches shown
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17. Solution Demo – Material Obsolescence Report
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18. Solution Demo – Material Obsolescence Report
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19. Solution Merits
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 “Shelf Life Planning in Classic MRP/MPS” Merits:
 Real time net requirements planning taking into consideration Batch
expiration date / last ship date / next inspection date or any other date from
p p p y
the 6 additional Batch dates
 Increased “Customer Service” from “automated reactive insights” during
planning for Sales Orders based on Customer specific SLED requirements
planning for Sales Orders based on Customer specific SLED requirements
 Standard SAP MRP/MPS configuration and master data leveraged
 Reliance on MRP suggestions viz. Planned Orders, Purchase Reqn,
i t d f C t “P i t i ti ” t
instead of Custom “Point-in-time” reports
 Real time visibility of ‘Discounted Batch Inventory’ in MRP Lists,
Stock/Requirements List. Accurate Material Obsolescence Projections
 Higher automation in SLED Planning as compared to IBP’s Alerts driven
SLED Planning
 Functionality can be activated/de-activated per Plant+Material Type+Division
y p yp
 Functionality works with and without MRP Areas too
 NO SOURCE CODE MODIFICATION OF ANY KIND
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20. Our Value Proposition
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 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 20+ 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
 Demonstratable IT Sapiens creative & disruptive solutions with cutting edge features
 Framework to develop strawman solutions
 Our “Say-To Do” Ratio is 1:1
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21. Questions ?
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 For more information…kindly contact
Vijay Pisipaty
Director-ERP Solutions & Consulting
IT Sapiens, Inc.
e-mail: vijay.pisipaty@itsapiens.com
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