Exceptions in Early Warning System Notify Your Team of Lead-Time Errors

  • by Martin Murray, Senior IT Specialist, IBM
  • December 1, 2006
SAP Early Warning System, a function within Logistics Information System, can enhance your company’s supply chain monitoring capabilities. Learn how to set it up and create exceptions that can alert your team members to possible problems, such as production delays.
Key Concept
An exception is a user-defined query on the data in an information structure in which the system compares the data against user-defined characteristics and values to determine weaknesses in the supply chain. When the system executes an exception, it identifies an exceeded threshold or an established trend. This exception informs supply chain management of current or future logistical issues.
Early Warning System (EWS), a supply chain tool, can identify a trend that otherwise may have gone unnoticed. It can produce results in only a few minutes without expensive ABAP programming.

Industries use EWS for a variety of reasons. For example, a manufacturer of air conditioning units might have a system that alerts the manufacturing department when it identifies an increase in orders for the same repair parts from service centers in a certain region. This trend could indicate that the units had a defective part when they left the plant or that the part does not perform to vendor specifications.

I’ll explain how EWS works and describe the best way to set it up, using the example of an exception that informs supply chain management if production lead times exceed normal operational limits. This is a problem that can affect the ability to ship finished goods to customers on time.

Martin Murray

Martin Murray is the author of the SAP Press bestseller SAP MM: Functionality and Technical Configuration. His new book Understanding the SAP Logistics Information System is due out in February 2007. Martin is employed by IBM in Orange County, California, and has implemented MM and WM at projects throughout the world.

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