Collaboration with external service providers (EDL) poses particular challenges for many companies. While direct deliveries to customers can be easily mapped in SAP, the EDL concept requires additional process steps and interfaces. But does the management of these complex supply chains really have to be associated with manual effort? The answer is clear: no - with the right automation, EDL processes in SAP can be handled seamlessly and without rework.
In the EDL model (external service provider), the supplier does not deliver its goods directly to the customer, but to an intermediary logistics service provider. This usually operates a warehouse and takes care of further distribution. This concept is particularly widespread in the automotive industry and other just-in-time sectors, as it creates flexibility in delivery and optimizes logistics.
The typical process from the supplier's point of view is as follows: First, the supplier receives orders or call-offs from the customer that relate to the EDL warehouse. The goods are then delivered to the external service provider's warehouse. The external service provider reports the goods receipt, carries out an inventory posting and regularly transmits its current stock levels back to the supplier. The supplier plans its replenishment based on the call-offs from the customer and the stock reports from the EDL.
The EDL model is often specified by the customer and therefore deviates from the usual direct delivery call-off process. The biggest challenge lies in the additional interface to the service provider. Although the supplier continues to receive call-offs from the customer, it is also dependent on the data quality and reporting frequency of the EDL. The external service provider's stock reports must be compared with the customer's call-offs to enable precise replenishment planning. This triangular relationship requires careful coordination and reliable information flows from two directions.
In SAP, this traditionally means manual data maintenance, reconciliation of stock notifications with call-offs, creation of consolidation orders and constant monitoring of delivery quantities. The administrative effort is considerable - and error-prone.
There are two main information flows to the supplier in the EDL process: the call-offs from the customer and the stock reports from the external service provider. The stock notifications are typically sent electronically via EDI, web portals or APIs. However, simply transmitting the data is not enough - it must also be processed automatically in SAP and compared with the customer call-offs.
Modern automation solutions can read and process EDI messages, Excel files or portal downloads directly in SAP. Stock notifications are automatically compared with open call-offs, delivery requirements are determined and stocks are updated in the system. The transfer of ownership, which in the EDL concept usually takes place when stock is withdrawn, can also be mapped automatically.
The good news is that EDL processes in SAP can now be automated without the need for costly in-house developments. In the past, many companies have developed individual programs to map their EDL processes. However, these self-programmed solutions have considerable disadvantages: high maintenance costs for SAP updates, a lack of expertise when employees change and a constant need for adaptation when processes change.
SAP add-ons offer a much more efficient alternative here. They integrate seamlessly into the existing SAP landscape and use standard SAP functions wherever possible. All relevant SAP modules - from MM to SD to FI - are integrated without time-consuming customizing. In contrast to in-house developments, add-ons are maintained by the manufacturer, are automatically adapted to SAP updates and benefit from continuous further development.
In concrete terms, this means that stock reports from the EDL are automatically imported and compared with customer call-offs, scheduling runs are initiated, deliveries are created and invoices are posted without manual intervention. The automation takes over the validation of the data, checks plausibility and only triggers a manual workflow in the event of genuine exceptions. And all this without the risks and maintenance effort of in-house development.
Another advantage of automation is that it creates transparency in the complex triangular relationship. Dashboards and reporting functions show in real time which stocks are held by the external service provider, which call-offs from the customer are open and where bottlenecks may be imminent. This allows the supplier to act proactively instead of having to jump back and forth manually between customer call-offs and EDL stock reports.
The integration of all information flows is considerably simplified by automation: data from both sources - customer and EDL - is merged and enables precise replenishment control. This increases planning reliability throughout the entire supply chain.
The answer to the question in the title is clear: yes, EDL processes in SAP can run without manual rework. The automation of delivery processes with external service providers is now technically mature and makes economic sense. Companies benefit from reduced throughput times, higher data quality and lower process costs.
Those who still handle their EDL processes manually in SAP are wasting potential. Modern SAP add-ons offer the opportunity to efficiently manage the complex triangular relationship between supplier, external service provider and customer - while retaining full transparency and control. Compared to self-programmed solutions, they impress with low maintenance costs and continuous further development.
The investment in automation pays off quickly: Fewer errors, faster processes and more satisfied customers are the result.
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