![]() If a component required for a product’s assembly is available in another plant, the system automatically requests withdrawal of the requisite component from the plant holding the component. It is also possible to incorporate the cost of transporting materials between two plants. The system shows the material in transit until it arrives at the receiving plant. When an inter-plant transfer, or stock transfer, occurs, the supplying plant issues the material to another plant. This shortens the effort and time it takes to complete the end-to-end procurement process. ![]() For direct procurement, which refers to procuring materials used for production, the system automatically creates a procurement proposal (a purchase requisition) as soon as the business user creates a production order. When materials move from one production step to the next, without involving unnecessary additional steps (i.e., issuance and receipt of goods) at the end of every production step, the system directly and automatically transfers materials between two production steps.ĭirect procurement. For the grouping of components that are an integral part of a product, but aren’t consumed in the production process, the system automatically suggests assembly components that are then packed or assembled together.ĭirect production. Let’s look at some of the available special procurement types that materials planners can use not only to improve business efficiencies but also to streamline logistics and supply chain operations: Fortunately, an SAP system offers better options for managing special procurement types than the business processes of traditional production, procurement or inventory management. Planners face an enormous challenge: seeing how the current SAP ERP system supports the changed or new business processes.
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