External delivery concepts
How to efficiently map complex delivery processes in SAP
The automotive industry is increasingly demanding complex supply models such as VMI, EDL or drop shipments from its suppliers. These processes entail more responsibility, but also considerable operational challenges. The SAP standard quickly reaches its limits: A lack of automation, a lack of transparency and a high level of manual effort are the result. With the right add-ons, however, these external delivery processes can be mapped consistently, error-free and efficiently in SAP.
What was once limited to a few major customers is now becoming the standard across all industries: OEMs and Tier 1 customers are optimizing their own inventories and shifting stock levels and scheduling responsibility to the supply chain. For you as a supplier, this means a growing number of customers with individual requirements for VMI, EDL with consignment or third-party processes - and thus increasing operational complexity with simultaneous cost pressure.
External delivery concepts Vendor Managed Inventory (VMI), cooperation with external service providers (EDL) and drop shipments are no longer the exception, but are being explicitly requested by more and more customers. These terms refer to different inventory management and delivery models that have one thing in common: The classic order-delivery-invoice logic is being broken up. Instead, you as a supplier take on more responsibility - be it for scheduling, for inventory management in the customer's warehouse or for managing intermediate suppliers.
What is the problem with external delivery concepts in the SAP standard?
SAP systems are generally capable of mapping some of these processes - but only to a limited extent and with considerable gaps. The SAP standard was primarily developed for direct delivery processes with orders. As soon as more complex models such as VMI, EDL or drop shipments with delivery schedules come into play, important functions are missing:
between you, your suppliers and your customers
on stocks, goods movements and progress figures
for VMI parameters such as minimum and maximum stock levels
in the processing of EDI messages, stock notifications and shipping notifications in the third-party process
for automatic validation of data and differences
The result: you have to carry out numerous process steps manually, which cost time, are prone to errors and take away the transparency you need for efficient control.
Do you know these challenges?
If you process external delivery concepts in the SAP standard, problems will always occur.
High manual effort
Lack of transparency regarding goods movements
Complex triangular relationships
Error-prone data processing
No automated disposition
Automotive industry: external delivery concepts are the standard here
In the automotive industry, these supply models are usually assumed by the car manufacturers. Suppliers must then ensure that the processes and systems function smoothly and correctly. The requirements are diverse:
(EDI, portals, e-mail) depending on the customer
on minimum/maximum quantities, ranges and delivery rhythms
that differ from the physical delivery
that deviate from the standard and require special processes (e.g. credit note procedure, drop shipment, EDL consignment)
Without properly set up IT systems, data quickly gets mixed up: stocks do not match call-offs, shipping notifications cannot be assigned correctly and invoicing becomes problematic. The administrative effort is considerable - and error-prone.
When are our add-ons the right solution for you?
Suppliers in the automotive industry
You are a supplier in the automotive industry and work with several customers who expect processing via framework agreements.
Complex delivery processes
They have to handle complex delivery processes with delivery schedules, cumulative quantities and delayed transfers of ownership.
Regularly overloaded
Your order management and scheduling are regularly overloaded because manually checking and processing all incoming messages is too time-consuming.
Lack of monitoring
You are unhappy about the lack of monitoring and analysis functions in your SAP system and have no transparency about your stocks and goods movements.
Frequent manual rework
All too often you have to rework manually if important data is missing in the standard system, is not automatically transferred or differences occur.
WSW Add-ons: How to efficiently map external delivery processes in SAP!
Our add-ons SPEEDI and JUNIQ close the gaps in the SAP standard and enable you to handle your external delivery processes consistently, automatically and transparently. In the following, we will show you how we optimize the three most important delivery models - drop shipment, EDL and VMI - for you.
Our process solutions for smooth processes
Your benefits with our add-ons
How you benefit from smooth delivery processes
End-to-end automation
From stock reporting to scheduling and invoicing - all process steps are automated. You save time, reduce errors and gain capacity for value-adding activities.
Full transparency of all goods movements
Dashboards and monitors show you in real time which stocks are held by external service providers, which quantities are in transit, which call-offs are open and where bottlenecks may be imminent. You have a complete overview at all times.
Intelligent test routines and validation
Automatic comparisons between customer call-offs, stock notifications and deliveries ensure that differences are recognized and highlighted immediately. You can quickly track missing or incorrect notifications.
Flexible adaptation to individual customer requirements
Every customer has different requirements for VMI parameters, EDI formats or billing models. Our add-ons can be configured flexibly and scale easily with the number of your customers.
Seamless integration into your SAP landscape
Our add-ons integrate fully into your existing SAP environment and use standard SAP functions wherever possible. You remain compatible with SAP updates and benefit from continuous further developments.
Fast implementation and return on investment
Compared to complex in-house developments, our add-ons are implemented much faster, the costs are more calculable and we take care of the maintenance. The investment pays off quickly: Fewer errors, faster processes and more satisfied customers are the result.
Do you need support? Let us help you!
Drop shipments: Automated processing from delivery call-off to invoice
Problems with the SAP standard
- The SAP standard only maps the third-party process for individual orders; processing via delivery call-offs is problematic
- A complete transfer of data to suppliers is not planned
- There are problems with correct shipping notifications, maintenance of cumulative quantities and invoicing (also by credit note procedure)
Functions of our solution
- Correct, smooth and automated data transfer between you, your supplier and your customer
- Comparison of delivery call-offs, deliveries and cumulative quantities
- Fully automatic and complete posting of shipping notifications, cumulative quantities, etc. in the third-party delivery process
- Support for combinations of drop shipments and consignment warehouses or external service providers
Advantages with WSW add-ons
- Efficient handling and processing of your processes from delivery call-off to invoicing
- Transparency and security regarding correct billing and data in your systems
- Automation of otherwise time-consuming manual processes
EDL: Full transparency about external service providers
Problems with the SAP standard
- Delivery processing with the help of an external service provider (EDL) is only supported to a limited extent and offers no transparency in the SAP standard
- There is hardly any information and data flow from the EDL to you: no goods receipt report, no stock report, no damage and loss report; only a delivery notification and an outbound delivery report are possible
Functions of our solution
- Visualization of the entire process with status icons
- Automated checks and highlighting of differences between the EDL data and the data in your system
- Tracking missing or incorrect messages - important for stocktaking!
Advantages with WSW add-ons
- Transparency thanks to monitors for all goods movements
- Security and transparency across all your deliveries by linking the individual documents with the help of numerous check routines
- Automation of all data flows between your systems and your EDL
VMI: Intelligent replenishment control directly in SAP
Problems with the SAP standard
- With VMI (Vendor Managed Inventory), the supplier is responsible for its customer's stocks. Minimum and maximum quantities (or ranges) are agreed with the customer. Replenishment quantities must be determined independently
- The SAP standard does not support VMI processing
Functions of our solution
- Mapping of the agreement and existing information (preview quantities, stock information) directly in SAP
- Possible definition of your own replenishment strategy
- Calculation and visualization of replenishment quantities
- Additional integration of external service providers (EDL) possible
Advantages with WSW add-ons
- Reduction of inventories, reduction of storage space at customers and suppliers
- Improving delivery capability and avoiding "out of stock" situations
- Avoidance of cost-intensive special trips
- Better response to order fluctuations
- Cost-effective batch sizes or reduction in the returns rate
