When and How to Map the Merge-in-Transit Process to Your SAP System

  • by Trilokesh Satpathy, PMP, Consultant, Infosys Technologies Limited
  • December 1, 2005
More and more companies are using merge-in-transit (MIT) to reduce the cycle time of orders and decrease costs. See how to design and map the MIT process in your SAP system.
Key Concept
Global sourcing from multiple vendors often requires consolidation of packages from several vendors into a single shipment to the customer. Merge in transit (MIT) does this using a merge point just before the shipments reach the customer. The merge point holds the delivery until all order components are received. The order is then sent to the customer as one shipment.
Global companies that outsource the manufacturing of product components are increasingly turning to the merge-in-transit (MIT) process. Using the MIT process, a computer manufacturer, for example, sources the peripheral components (speakers, monitors, printers) that complete one customer order from various original equipment manufacturers (OEMs) or vendors located around the world. The components are delivered as one shipment to the customer as soon as the order is placed, and little stock is held in the supply chain.

I’ll describe the MIT process and compare it to three other delivery methods for multiple components — hub shipment, arrive together, and drop shipment. If you are familiar with the process, you may want to skip to the section, “SAP Processing Cycle for MIT,” in which I show how to map MIT in SAP. MIT works in R/3 through the Materials Management (MM) module. You can use this process in any SAP release, including ECC 5.0.

Trilokesh Satpathy

Trilokesh Satpathy, PMP, is a consultant with Infosys Technologies Limited with more than six years of SAP consulting experience spanning automobile and computer manufacturing companies. He holds a bachelor’s degree in mechanical engineering and a post-graduate degree in business management.

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