Delivery call-offs and SAP

What you should should consider

In some industries, delivery call-offs are preferred to individual orders or purchase orders. This involves long-term agreements on purchase quantities. In this article, you can find out what suppliers need to bear in mind with this type of delivery and what problems SAP systems cause here.

What is a delivery call-off?

A Delivery call-off is an instrument in the procurement process that is used as part of long-term agreements such as delivery schedules or framework agreements. Higher-level contracts are concluded between suppliers and customers that define quantity and price agreements for a specific period. The delivery call-off concretizes these agreements by defining specific delivery dates and exact quantities to be called off within the specified period.

Reference report: Significant added value for HARMAN thanks to automated tolerance line check in SAP

Since 2005, HARMAN has been working with various SPEEDI-WSW Software solutions to optimize its supply processes, such as VMI replenishment control, demand and capacity planning, analysis of call-off behaviour and tolerance line checks. Specific OEM processes are also optimized with SPEEDI covered. All solutions are seamlessly integrated into the HARMAN SAP ERP system (ECC 6.0).

SAP offers comprehensive Functions for processing delivery call-offs:

Scheduling AgreementsCreation and management of scheduling agreements in the MM (Material Management) module for purchasing and SD (Sales and Distribution) for sales.
MonitoringFunctions for monitoring delivery quantities, deadlines and open call-offs.
IntegrationSeamless integration with other modules such as Production Planning (PP) and Warehouse Management (WM).
EDI supportElectronic data exchange with suppliers for call-offs and confirmations.

Disadvantages for suppliers when working with delivery call-offs:

Despite the advantages that delivery call-offs offer in terms of planning reliability, suppliers can also Disadvantages experience. A significant disadvantage is the Limited flexibility in production and delivery schedules, as they have to adhere to the specified call-off quantities and deadlines. Changes or cancelations at short notice calls by the customer can lead to Overproduction or unexpected stock levels which results in additional costs. The management of delivery call-offs can also increased administrative effort especially if the supplier's and customer's IT systems are not seamlessly integrated. Suppliers can also be involved in a Dependence on the customer what their Negotiating position weakened in future contract negotiations. Finally, there is a risk that Price changes on the market cannot be taken into account promptly in existing delivery schedules, resulting in Margin losses can lead to.

Problems with processing delivery schedules via EDI and IDocs in SAP

Despite the extensive functions, there are SAP ECC and S/4HANA Areas in which Functions for working with delivery schedules are missing or could be improved:

Additional dataNo processing of individual compilations of data sent by the customer via EDI in the recipient system.
TransparencyLimited overview for short-term changes or adjustments to call-offs, therefore usually too slow a response.

ReportingStandard reports do not always meet the requirements for detailed analyses of delivery call-offs and schedules.
User friendlinessThe user interface and user guidance could be designed more intuitively to increase efficiency.
Integration of third-party systemsChallenges in the integration of specialized supplier portals or external planning systems.

These gaps often require individual adaptations or the use of additional solutions in order to fully cover the specific requirements of a company.

Whitepaper: New functions for scheduling agreement management with SAP

How to work more easily with your SAP system

Are you spending too much time on monotonous SAP tasks in your scheduling agreement management? Manual data changes, complicated scheduling agreement adjustments and time-consuming processes are a daily burden on employees. This white paper shows you various ways in which you can optimize SAP systems with practical approaches.

Users and IT managers frequently encounter the following problems:

Complex setup and configurationThe implementation of EDI processes requires a detailed configuration of partner profiles, message types, assignments and process codes. This complexity can lead to errors if settings are not made correctly.
Data inconsistencies and mapping problemsDifferences in data structures or formats between your own SAP system and that of your business partner can lead to inconsistencies. Individual data mappings are often necessary to ensure that information is transferred and interpreted correctly.
Incorrect IDoc processingIDocs can fail during the transmission of delivery schedules due to syntax errors, missing mandatory fields or master data problems. Troubleshooting often requires special know-how and can be time-consuming.
Insufficient error notificationSAP may not provide proactive notification of EDI or IDoc errors by default. Without effective monitoring tools, problems can go unnoticed and affect business processes.
Lack of standardization between partnersDifferent EDI standards or versions between business partners can make integration more difficult. This leads to additional coordination effort and potential transmission errors.

Timing and synchronization problemsDelays in EDI transmission can lead to delivery call-offs not being processed on time. This affects the supply chain and can lead to bottlenecks or excess stock.
Limited flexibility for adjustmentsStandard IDoc types may not support all required business cases or special requirements. Customization often requires ABAP development and can be costly.
High maintenance costsEDI interfaces must be regularly maintained and updated, especially when business requirements or external standards change. This ties up resources and requires specialized knowledge.
Security risksElectronic transmission of sensitive data harbors security risks. Without appropriate encryption and security protocols, data can be intercepted or manipulated.
Training requirements for usersEffective use of EDI and IDocs requires users to be appropriately trained. A lack of knowledge can lead to operating errors and inefficient processes.

These problems can affect the efficiency and reliability of call-off processing. Companies must therefore ensure that they have the necessary resources and skills to overcome these challenges. This may include investing in additional tools, training or consulting services to optimize EDI and IDoc processes.