Optimizing Reverse Logistics with SAP ERP

Optimizing Reverse Logistics with SAP ERP

2010
978-1-59229-325-4
311

Product Details

This is the book you need to master reverse logistics. You’ll learn how to configure and use SAP ERP to optimize reverse logistics practices, particularly returns, repairs, and refurbishment. And with the step-by-step instructions, real-world examples, and tips provided throughout, you’ll find many ways to streamline your processes and make your business perform more efficiently. This is the book that will ensure you’re getting the most out of the reverse logistics tools in SAP ERP.

Basic Principles of Reverse Logistics
Explore what reverse logistics is and how it can help you develop a more efficient and cost-effective business.

Reverse Logistics Functionalities
Get a thorough understanding of the various reverse logistics processes, and learn how they are executed within SAP ERP.

SAP ERP Configuration
Learn how to customize SAP ERP for reverse logistics to work for your needs.

Finance in Reverse Logistics
Learn how to recapture value for reverse logistics with accounting and valuation in SAP.

Real-World Examples and Tips
Use the insider tips provided throughout to find solutions to your own reverse logistics issues.

Highlights

· Reverse Logistics Overview
· Returns Processing
· Rework & Refurbishment
· Customer Paid Repair
· Warranty Claims Processing
· Serial Number and Batch Management
· Finance in Reverse Logistics
· Equipment Master Management

The Author

Srivathsan Narayanan has been working as an SAP consultant for over 11 years, primarily in the logistics area. He has worked on SAP implementations that have enabled the SAP process for both forward and reverse logistics. He is an expert in reverse logistics and has presented at various SCM conferences.

Table of Contents

... Preface ... 11


... Introduction ... 15 

1 ... Reverse Logistics ... 17 
1.1 ... Definition of Reverse Logistics ... 17 
1.2 ... Business Processes in Reverse Logistics and SAP ... 18 
1.2.1 ... Engineering/Design ... 19 
1.2.2 ... Order Management ... 23 
1.2.3 ... Planning ... 31 
1.2.4 ... Procurement/Purchasing ... 34 
1.2.5 ... Warehousing ... 37 
1.2.6 ... Shipping and Transportation ... 40 
1.2.7 ... Quality ... 42 
1.2.8 ... Finance ... 43 
1.2.9 ... Foreign Trade ... 45 
1.2.10 ... Service Management ... 46 
1.3 ... Summary ... 49

2 ... Returns ... 51 
2.1 ... Internal Returns ... 51 
2.1.1 ... Service Notification and Service Orders ... 52 
2.2 ... External Returns ... 64 
2.2.1 ... Define Order Reasons ... 67 
2.2.2 ... Item Category ... 69 
2.2.3 ... Movement Type ... 75 
2.2.4 ... Incompletion Procedure ... 77 
2.2.5 ... Movement Type Definition ... 79 
2.3 ... Returns Receipt and Processing ... 93 
2.3.1 ... Receipt ... 93 
2.3.2 ... Returns Receiving ... 105 
2.3.3 ... Warehouse Processing ... 106 
2.3.4 ... Parts Segregation and Identification ... 108 
2.3.5 ... Quality Management ... 109 
2.4 ... Summary ... 112

3 ... Refurbishment ... 113 
3.1 ... Internal Repair ... 113 
3.1.1 ... Cleaning a Product ... 116 
3.1.2 ... Disassembly ... 121 
3.1.3 ... Repair ... 123 
3.2 ... External Repair ... 124 
3.2.1 ... Products Returned from Service Engineers ... 127 
3.3 ... Organization Impact on Refurbishment Processes ... 132 
3.3.1 ... Order Administration ... 133 
3.3.2 ... Planning ... 134 
3.3.3 ... Procurement in Internal and External Repair ... 139 
3.4 ... Summary ... 147

4 ... Customer Paid Repair ... 149 
4.1 ... Customer Paid Repair ... 149 
4.1.1 ... Business Process of Customer Paid Repair ... 149 
4.2 ... SAP Processes for Customer Paid Repair ... 153 
4.2.1 ... Repair Procedure and Repair Actions ... 168 
4.3 ... Repair Cost ... 172 
4.4 ... Enhancements in the Customer Paid Repair Process ... 176 
4.5 ... Summary ... 176

5 ... Warranty Claim Processing ... 177 
5.1 ... What A Warranty Claim Is ... 177 
5.2 ... Warranty Claim Document in SAP ... 179 
5.2.1 ... Integration for Master Data ... 179 
5.2.2 ... Warranty Objects ... 182 
5.2.3 ... Warranty Recovery ... 189 
5.3 ... Control Data Definition in Customizing ... 201 
5.3.1 ... Actions ... 201 
5.4 ... Validation/Substitution Rules (VSRs) ... 207 
5.5 ... Summary ... 210

6 ... Serial Number Management in Reverse Logistics ... 213 
6.1 ... Serial Numbers ... 214 
6.1.1 ... Serial Number Profile ... 216 
6.2 ... Equipment Master ... 227 
6.3 ... Warranty Recovery Using the Serial Number/Equipment Master ... 229 
6.4 ... Serial Numbers and Inventory Data ... 235 
6.5 ... Serial Number Linking in Warehouse Management ... 236 
6.6 ... Serializing and Unserializing Processes in SAP ERP ... 238 
6.7 ... History in the Serial Number Record ... 243 
6.8 ... Special Serial Number Functions ... 245 
6.9 ... Batch Management ... 247 
6.9.1 ... Specifying the Batch Level and Activating Batch Status Management ... 248 
6.9.2 ... Creating New Batches ... 249 
6.9.3 ... Performing Batch Valuation ... 250 
6.9.4 ... Batch Determination and Batch Check ... 255 
6.10 ... Summary ... 263

7 ... Finance in Reverse Logistics ... 265 
7.1 ... Credit and Debit Memos ... 265 
7.1.1 ... Sales Process – Credit and Debit ... 267 
7.1.2 ... Invoice Correction ... 269 
7.1.3 ... Inventory Movement ... 270 
7.1.4 ... Inventory Posting and Accounting ... 276 
7.1.5 ... Returns: Pricing ... 280 
7.2 ... Summary ... 284 
7.3 ... Contributor ... 284

8 ... Conclusion ... 285 
8.1 ... What You’ve Learned ... 285 
8.1.1 ... Cycle Time ... 286 
8.1.2 ... Cost of Performing Reverse Logistics ... 287 
8.1.3 ... Elimination of Waste and Automation ... 288 
8.1.4 ... User Experience ... 288 
8.1.5 ... Identification and Segregation of Material for Reverse Logistics ... 289 
8.1.6 ... Accounting in Reverse Logistics ... 290 
8.2 ... Organizational Impact on Reverse Logistics ... 291 
8.2.1 ... Order Management ... 291 
8.2.2 ... Planning ... 292 
8.2.3 ... Logistics ... 292 
8.3 ... Additional Resources ... 294 
8.4 ... Reverse Logistics with SAP in the Future ... 294

... The Author ... 297 

... Index ... 299