Stock Transport Order Exceptions No Longer a Problem with This Technique

  • by Rajen Iyer, Cofounder and CTO, Krypt, Inc.
  • September 1, 2003
As companies increasingly turn to international networks to manage production, sales, and distribution, they depend on R/3 MM's Stock Transport Order (STO) to support volume transactions across plants. However, STO has limited capability to deal with exceptions such as an expedited replenishment. The author describes a workaround that will allow STO to more easily handle exceptions.

Stock transport orders are a type of purchase order within the R/3 Material Management (MM) module. They are used primarily for stock replenishment in a company's different network sites through regular planning and procurement processes. However, you might have a business need that forces you to expedite the normal process for faster sourcing and shipment.

This presents a problem, because stock transport orders do not easily handle exceptions like an order expedite. To do so, the stock transport order would have to create deliveries according to material availability and then determine the transportation route and carrier. Unfortunately, MM and Inventory Management (IM) do not support changing the shipping information on a transport order after it has been entered into the system. The stock transport order can have only a default delivery priority and shipping point based on the default shipping condition and loading group.

The delivery priority ranks the urgency of the order. The shipping point represents the area of the company that processes shipment, or the organizational logistics unit that carries out the shipping process. The shipping condition states the strategy for getting the goods to a destination, and the loading group represents the equipment needed to load the goods. All are represented in R/3 by numerical codes, as shown in the Shipping Point Determination screen (Figure 1), accessible via transaction code OVL2. Consequently, this default shipping condition determines the route used to transport the stock. Figure 2 shows the resulting route configuration table (transaction code SPRO).

I will show you how to change the default shipping information via a user exit at the time of transport-order creation. This functionality allows you to change shipping-related data based
on a given business requirement, giving you the ability to:

  • Handle exceptions for expedited replenishments
  • Set up a priority transport order at the time of creation
  • Manage shipment and deliveries separately
  • Select the appropriate route when the transport orders are created to reduce transportation cost
  • Better manage stock transport orders

Rajen Iyer

Rajen Iyer is the cofounder and CTO at Krypt, Inc. Rajen has written several in-depth, best practice articles, white papers, patents, and best-selling books on SAP Logistics and SAP Global Trade Services, including Effective SAP SD and Implementing SAP BusinessObjects Global Trade Services. He is also an invited speaker at industry conferences.

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