In Focus

The SAP ® Logistics Execution System

Powerful, integrated support for your warehouse and
transportation management processes
Comprehensive, user-friendly, Coordinating the many different tasks, people In other words, you require an IT environment
and technical resources associated with running a that helps you build and maintain highly efficient
future-proof warehouse and transporting goods has never end-to-end processes spanning all aspects of your
Now there is an integrated, future- been simple. Yet warehouse and transportation warehouse and transportation operations, from
processes are a vital part of the supply chain, and your supplier or production plant via your forward-
proof answer to the challenges
essential to creating a responsive and efficient ing agent to your endcustomer and from your
of warehouse and transportation business organization. In recent years, the pressure forklift driver via your warehouse administrator to
management: the SAP Logistics and complexity of the tasks involved have been your financial controller. An integrated environment
increasing at a rapid pace: globalization, mergers, that enables you to plan and monitor activities
Execution System (SAP LES). fiercely competitive markets, an ever greater with pinpoint precision, provides customers with
SAP LES is much more than just emphasis on customer service, and the emergence instant answers to their questions, and identifies
of new technologies such as the Web. ways of improving profitability. There is now a
powerful functionality – it is a
solution available that offers you the integration,
Against this background, you need to streamline
comprehensive, user-friendly performance and flexibility required to turn this
your operations, drive down costs and make the
solution that guarantees free vision into reality – The SAP Logistics Execution
most of opportunities for additional revenue. You
System.
flow of information, efficient need instant access to accurate figures on current
inventories, the arrival of deliveries and the The SAP Logistics Execution System is part of
end-to-end processes and produc- availability of resources such as trucks and storage SAP’s unique Supply Chain Management initia-
tive use of new technologies. And space. And you need to make the most of tech- tive, and helps you forge strong yet flexible links
nologies such as radio frequency devices, the between the processes of production, procure-
it is backed by the services and
Internet and the Global Positioning System (GPS). ment, storage, distribution, transportation, sales
support of the world leader in and service. It helps keep customers happy,
enterprise solutions technology, staff productive and decision-makers informed. It
means functionality tailored to your precise needs
SAP. in warehouses and distribution centers, in load
control centers and transportation planning
offices, in customer service and accounting. And
it means real-time data for decision-making,
simulation and planning.

From the world leader in

enterprise software
The SAP Logistics Execution System benefits
from SAP’s expertise in robust client-server
software, exemplified by the success of R/3®,
and from SAP’s awareness of the real-world
needs of diverse companies in many industries.

R
Build time-saving bridges to other
business processes Greater flexibility, efficiency and transparency
A key advantage of the SAP LES over stand-alone
applications is the ease with which it links up ■ Support for all users, from forklift driver to warehouse/
with other processes, such as production plan- transportation manager to executive decision-makers
ning, purchasing, sales and financials and control-
ling, even data warehousing tools such as SAP ■ Seamless integration with ERP systems (both SAP and non-SAP)
Business Information Warehouse. It is inherently and with planning and optimization applications
open – to SAP and non-SAP Enterprise Resource
Planning (ERP) systems. At the same time, the ■ Optimize the flow of goods and information across your enterprise
close technological relationship between the
SAP Logistics Execution System and R/3 lends ■ Achieve a competitive advantage through excellent customer service
itself to the creation of an environment that
and cost-effective processes
goes far beyond warehouse and transportation
management. By bridging the gaps between ■ Combine warehouse and transportation management processes
individual functions and processes, you can
significantly increase efficiency and productivity for greater efficiency and transparency
throughout your enterprise.

Software, support, service

The SAP Logistics Execution System offers you
powerful functionality tailored to the tasks of
warehouse and transportation management,
and it offers much, much more besides. It not
only supports individual parts of your business
operations, it supports entire processes from end
to end. Within a single environment, you can
execute orders with suppliers or production plants,
plan for the arrival of goods, for their correct
storage, rapid further distribution and delivery of
the right quantity and quality to the customer.
The SAP Logistics Execution System helps you
manage your human resources, warehouse, plant
and equipment, and your financial assets. It
allows you to exchange data with customers and
suppliers, to place applications on the Web, and
to integrate legacy or third-party applications.
It is a holistic solution, and one which can be
geared precisely to your processes, to your
operations, and to your strategic goals. Moreover,
it is a solution that can grow with your changing
requirements, and with the emergence of new
technologies – backed by the global service,
support and development resources of SAP.
Warehouse Management picking, full counts, and support for all the
major physical inventory methods. Adjustments
System for discrepancies in bins, with simultaneous and
therefore consistent changes to inventory
Effective support for inbound management, can be made with ease.
processes
Inbound processes are of increasing significance Rich functionality for outbound
when it comes to ensuring smooth-running, cost- processes
effective logistics. The SAP Logistics Execution
For outbound processes, you can select sales
System includes powerful functionality for inbound
orders, stock transfer orders or production orders
processes, keeping you fully in the picture with to manage batches, for instance selecting the
due for delivery with point-and-click simplicity.
regard to incoming materials and helping you to appropriate batch for a specific production process
Sales orders for the same ship-to party can be
avoid costly mix-ups and mistakes. It supports the or based on expiration date. You can also differ-
combined to optimize delivery or large orders can
efficient management and monitoring of orders entiate between types of stock, for instance
be split. These tasks are performed automatically
placed with suppliers, including the planning and vendor consignment stock, your own stock, stock
for you in background mode, or, should you
scheduling of pick-ups, and the receipt of deliveries. that is unrestricted or in quality control. There is
prefer, manually.
SAP LES helps you to rapidly identify incoming no need for specific activities on the part of
goods, and the corresponding purchase order or warehouse personnel; the system keeps track The SAP Logistics Execution System also helps
Advanced Shipping Notification (ASN). It is also and selects the right stock for you. you carry out the necessary checks on outbound
possible to streamline goods receipt using infor- goods. You can perform ATP checks, or verify
mation on pallets provided by suppliers. There are Physical inventory control requirements have been fulfilled for foreign trade,
also time-saving links to quality management i.e. to ensure the existence of a letter of credit.
With the SAP Logistics Execution System, you
processes, with automatic prompting of appropri- You can also carry out credit limit checks to find
can manage stock belonging to many different
ate quality control measures. SAP LES also helps out about a customer’s credit history well before
companies (using company codes), from or to
streamline the receipt process by assigning gates, the goods are delivered.
diverse production plants and held at various
doors and time slots for incoming trucks.
storage locations. You can view stock from a It is possible to optimize the picking process by
Once goods have arrived, you can accurately variety of angles, including overviews, lists of using wave-based picking, creating work packag-
implement the putaway strategy that suits your stocks in particular bins or of stock belonging to es that correspond to warehouse capacity. Further
organization. You can, for example, opt for the specific organizational units. The SAP Logistics capabilities include two-step picking for greater
next empty bin, a fixed bin, or for bulk storage. Execution System provides rich functionality for efficiency when preparing deliveries for diverse
You can apply differing strategies for fast and many aspects of physical inventory control, customers and cross-docking for rapid transfer to
slow-moving goods, and optimize the storage including cycle counting, empty-bin checks during the staging area.
location in accordance with the next picking cycle.
You can also deal with hazardous goods, e.g.
by assigning materials and bins to hazardous
materials classes, and by placing incoming
hazmats in the appropriate storage area.

Accurate storage and facility

management
The SAP Logistics Execution System allows you
to achieve an unparalleled degree of transparency
and flexibility in storage management. Functions
can be tailored to your precise warehouse configu-
ration, and you can model very simple or even
extremely complex warehouses with great accuracy.
You can organize storage bins randomly or
employ fixed-bin assignment. It is also possible
 Transportation Management
System
The SAP Logistics Execution System helps you
manage multi-modal shipments with ease and
effectiveness. It treats transport as an integral
part of your supply chain, and allows you to
optimize transportation plans and execute all
transport moves. You can optimize the utilization
of resources and keep a close eye on costs and
profitability.

Integrated shipment scheduling and

routing
With the SAP Logistics Execution System, you
The SAP Logistics Execution System allows you can create schedule and route plans with great
monitor gives due warning of processes that
to define sophisticated rules for packing, and to speed and accuracy. These allow you to provide a
have not been finished on time or that are still
automate the packing process itself. You can reliable service to your customers, and ensure you
incomplete. Using this tool, the supervisor can
set limits on volume and weights, preventing make the most economical, most profitable use
drill down to the process itself and analyze the
potentially expensive mistakes being made. of available transportation resources. You can
situation in detail and then initiate the right
plan shipments manually or automatically using
response. In fact, the SAP Logistics Execution
When it comes to actually loading the goods, rule-based selection and definition of shipments.
the synchronization links provided by the System includes extensive reporting and analysis
You can also incorporate shipment optimization
capabilities. Decision-makers can use standard
SAP Logistics Execution System between trans- software from SAP partners using open interfaces.
reports or trigger ad hoc queries. Many types of
portation and warehouse management processes
mean tangible benefits. You can be sure of analysis are supported, from ABC analysis of
Routing
loading the right goods onto the right truck at the warehouse movements to overviews of delivered
goods per region, etc. By means of user-friendly point-and-click functions,
right time. You can create shipping documentation,
you can specify the preferred mode of transport,
such as delivery notes or bills of lading, and send
an ASN to your customer.
Warehouse technology such as by rail or by truck. You can even specify
the preferred service agent for each and every
Stand-alone component stage of transportation, and determine the right
Value-added services
The SAP Logistics Execution System is not tied to transportation route for each shipment.
In today’s fiercely competitive environment,
an SAP environment, and can be operated as a
value-added services are essential to profitability
stand-alone component for distribution centers, Tendering/communications with
and customer satisfaction. Support is provided for
if neccessary. service agents
a variety of such services, including special types
of packaging, customized or one-time labeling. Support for new technology as it emerges The SAP Logistics Execution System is based on
The SAP Logistics Execution System also equips a rich pool of master data on all key aspects of
SAP has developed, and continues to develop, your business process, such as partners and
you for the particular needs of hazardous
support for the latest and best in warehouse resources. With this solid information platform in
materials, e.g. allowing you to include prescribed
technology, as and when it emerges. This now place, you can, for instance, confidently assign
specifications in printed shipping documents.
includes direct radio frequency capabilities, the right carrier to the right shipment, and deter-
Planning and monitoring enabling your workforce to capture data on-the- mine the right route for that shipment.
spot for greater accuracy and productivity. The
SAP LES gives the warehouse supervisor an Warehouse Management System also has certified SAP has consistently been at the leading edge of
overview of the expected workload and the interfaces for time-saving data exchange with communications technology, and already allows
capacities at the earliest possible point in time. warehouse equipment such as automatic storage you to capture and transfer data through time-
This allows him to reschedule staff assignment or and retrieval systems (ASRS), pick-to-light saving methods such as EDI and the Internet. You
to hire temporary staff. The warehouse alert systems and other state-of-the-art technologies. can web-enable practically any aspect of your
solution, for instance to allow carriers to enter Foreign Trade Features such as break-even weight calculations
data on delivery dates, or to obtain further infor- and identification of the most competitive price
The SAP Logistics Execution System includes full
mation on orders. for your customers ensure that you keep a
support for cross-border activities, allowing
healthy bottom line. You can compare various
automatic printout of essential documents, such
Shipment processing support types of freight and define minimum freight
as shipping papers, bills of lading, manifest
You can check the status of shipments at any values.
documents and even bar-coded labels. Moreover,
time, and take immediate action when and where as part of an R/3 environment, you can take You can also simulate freight charges from within
it’s required – thanks to the integrated nature of advantage of multi-lingual, multi-currency, multi- a sales order to give your customer immediate
SAP LES functionality. This ranges from check-in company support for all processes. In addition, feedback on the likely cost, and invoice your
at the gate, to unloading and loading activities at SAP LES enables you to exchange data with customer on the basis of actual rather than
the dock, to check-out at departure. customs authorities using the Automated Export estimated freight costs.
System (AES).
Shipment tracking
SAP LES keeps you fully informed of the current Freight cost management
status of transportation, allowing you to respond The SAP Logistics Execution System offers support
to customer inquiries and to spot problems or for all aspects of freight cost management.
delays before they become acute. SAP is also It allows comprehensive costing, automated
developing support for GPS-based tracking to give self-billing, and efficient settlement of payments
you the precise location of trucks and ships down for service agents. It is closely linked to financial
to a matter of yards. and controlling functions, ensuring that accounts
are correct and consistent. The system enables
Available to promise you enter and manage freight tariffs, surcharges,
As part of its SCM initiative, SAP has developed discounts and the specific provisions of individual
a powerful available-to-promise component. freight agreements. The calculation of freight
This functionality has been incorporated into the costs is flexible in nature, and can be based on
SAP Logistics Execution System, so you can weight, volume, distance, mode of transport,
identify whether and by what means you can freight class, or even customer-specific agreements,
fulfil your customers’ preferred delivery dates. etc. Calculation can be made using one dimension
You can see whether you can meet customer (e.g. weight) or multiple dimensions (e.g. dis-
needs using existing inventories, or whether you tance and weight).
will need to make additional purchases or issue
production orders.

Transportation information network

The SAP Logistics Execution System provides a
wide range of user-friendly monitoring and
reporting features. You can call up overviews with
point-and-click simplicity or delve into the details
using breakdown methods and other data
manipulation techniques. You can compare actual
costs, delivery times and other parameters with
your original plans, and evaluate the performance
of various links in your particular process chain,
such as individual service agents. You can also
model your transportation operations on easily
comprehensible network diagrams.
 Benefits of SAP’s industry-driven forwarding agents. It can also be adapted on Technology and Service
approach the fly according to new customer requirements,
SAP LES is an independent component. It is
changes in your business organization or the
SAP operates Industry Business Units (IBUs) fully integrated with the R/3 System via open
emergence of innovative technologies.
dedicated to researching the true needs of standard interfaces. However, SAP is not only a
particular groups of customers, and developing software provider: We also offer an extensive
The SAP Logistics Execution System
the corresponding software, services and support. range of services and support centering around
means greater transparency AcceleratedSAP (ASAP) – SAP’s all-in-one solution
SAP LES is not a one-size-fits-all package, but a
flexible solution that takes advantage of the As a highly integrated, user-friendly environment, for rapid implementation and ongoing optimiza-
input from SAP’s IBUs, development partners and the SAP Logistics Execution System provides an tion of SAP solutions. SAP’s Service & Support
customers. The result is a wide range of industry- overview of all key activities, allows you to track program includes preventive system checks,
specific functions that can be added to SAP LES progress and positions of goods in transit, to data conversions, remote archiving and system

50 025 930 (9812/01) © including screen shots by SAP AG. SAP and R/3 are registered trademarks of SAP AG. All other products mentioned are registered or unregistered trademarks of their respective companies.
in accordance with your specific industry, business monitor the status of orders, and to act on the upgrades. We provide expert organizational and
processes and strategic goals. insight gained. It also provides links to other technical consulting from the planning phase of
business applications, and includes powerful your project right through to its execution, as
The SAP Logistics Execution System analysis and reporting tools for decision-makers. well as in-depth training, and 24-hour support.
means greater efficiency SAP Development, SAP Consulting and SAP
Efficiency throughout your entire
Optimize space utilization in your warehouse, Services are certified in accordance with the
supply chain ISO 9001 international quality standard.
increase productivity through effective coordina-
tion of people and resources, schedule and route The SAP Logistics Execution System is part of SAP software is also the first packaged enterprise
transportation for low cost and high revenue, and SAP’s SCM initiative, providing powerful, state-of- application software to receive “Ergonomics
minimize the errors that so often plague pick-ups the-art support for the processes involved in approved” certification for the international
and deliveries. warehouse and transportation management. It is standards ISO 9241 and ISO 13407.
comprehensive, integrated and open. It is easy
Interested? Then call or write us.
The SAP Logistics Execution System to implement, and adapt.
means greater flexibility And it is also much more than just software. It is
a complete solution, backed by carefully selected
It is a solution that can be geared to many
partners and the services and support of SAP, one
different business scenarios, and includes support
of the world leading IT players.
for the involvement of third parties such as

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