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Manage Supply Shortage and Excess Supply with MRP Material Coverage Apps

Markus_Oertelt
Product and Topic Expert
Product and Topic Expert
4 weeks ago

Exciting news coming your way with Continues Feature Delivery SAP S/4HANA Cloud Public Edition 2402.2 release. Now you may manage supply shortage and excess supply with MRP Material Coverage Apps.  

What is the business case behind this innovation?

Companies want to avoid supply shortages or excess supply; therefore, they need to be able to reschedule receipt elements to an earlier date to prevent material shortages or to a later date, for example, if requirements are postponed. Furthermore, enterprises need to be able to cancel receipt elements if they are no longer required. 

How did we implement the rescheduling capabilities?

The following apps were enhanced to display information about the number of rescheduling proposals that are available for a material: 

  1. Monitor Material Coverage - Net Segments (F0247A)

  2. Monitor Material Coverage - Net and Individual Segments (F2101A)

When you perform a rescheduling check for a material, the system can automatically (when the app is started) determine and propose actions for MRP elements to make sure requirements can be covered as planned. The new filter possibilities and actions are described in detail below.

Let's start with the new filter possibility Reschedule Proposals within the MRP material coverage apps, which can be seen here: 

 Reschedule_1.jpg

The system automatically proposes the new rescheduling possibilities according to the issue that was detected for the receipt element: 

Reschedule_2.jpg

Let's look at the new cancel or rescheduling options. 

Cancel Process

The definition of the Cancel Process functionality is that you may displays the number of rescheduling proposals for MRP elements that should be cancelled based on the last rescheduling check (Cancel Process).

The use case is that based on the results of the latest rescheduling check, the system can propose to cancel MRP elements if they are no longer required. The results are displayed separately for each combination of material, plant, and MRP area. If more than one planning segment exists for a material, specific numbers are also displayed for each planning segment.

Let's look at one example: 

Reschedule_3.jpg

In this example, the system proposes that purchase order 4500006365 can be cancelled due to the fact, that this prevents a company of having too much stock on hand. If the mentioned purchase order would not be cancelled, then the stock would rise to 170 PC. This would be a lot of excess stock because our safety stock is equal to 20 PC. After pressing the Cancel Process button, the system asks the following: 

Reschedule_3.5.jpg

You rightly noticed that the Reschedule Out proposal for the purchase order 4500006364 is also an option, but here we focus on the Cancel Process and the Reschedule Out proposal will be explained below. 

Here is a second example: 

 Reschedule_4.jpg

In this second example, we see that purchase order 4500006368 has also a system cancel process proposal. The explanation here is also the same as in the first example. If this before mentioned purchase order would not be cancelled, then that would result in an excess stock of 30 PC on the 15th of April. Interesting in this example is, that the rescheduling proposal is giving a Reschedule In option for the purchase order on the 8th of April. This will be explained shortly as well. 

Reschedule In 

The definition is to display the number of rescheduling proposals for MRP elements that should be rescheduled to an earlier date based on the last rescheduling check (Reschedule In).

Here the use case is based on the results of the latest rescheduling check, the system can propose to reschedule MRP elements to an earlier date to make sure that all requirements can be covered as planned. The number of these proposals is displayed in this column.

The results are displayed separately for each combination of material, plant, and MRP area. If more than one planning segment exists for a material, specific numbers are also displayed for each planning segment.

Let's take a look at the Reschedule In proposals: 

Reschedule_5.jpg

Let's take a look at the material FIO-TSC-ACC0006 to see the proposed Reschedule In options: 

Reschedule_IN_NEW_UPDATE_1.jpg

As we can see, there are two customer orders resulting in a minus of 200 PC on the 19th of March. The first supply would arrive on the 8th of April with a quantity of only 30 PC. Therefore, the material planner decides that the supplier should deliver the purchase order 4500006371 from the 15.4.2024 with 180 PC earlier. We use the Reschedule In functionality for that: 

Reschedule_IN_NEW_UPDATE.jpg

By using the Reschedule In functionality, the purchase order will be changed to the 19th of March. The result is, that we will not face a total shortage of supply. 

As you, rightly noticed here as well, that this is combined with a Reschedule Out option. And this will be explained now. 

Reschedule Out

This functionality displays the number of rescheduling proposals for MRP elements that should be rescheduled to a later date based on the last rescheduling check (Reschedule Out).

Based on the results of the latest rescheduling check, the system can propose to reschedule MRP elements to a later date in order to make sure that all requirements can be covered as planned. 

The results are displayed separately for each combination of material, plant, and MRP area. If more than one planning segment exists for a material, specific numbers are also displayed for each planning segment.

Here, you can see that the system proposes for Reschedule Out suggestions: 

Reschedule_8.jpg

Let's take the material FIO-TSC-ACC0001 where we can see that we have three Reschedule Out proposals: 

Reschedule_9.jpg

The reason why the system gives us this proposal is that the first customer demand is on the 23rd of May. As the lead time of the supplier is short, we can lower our stock with delaying our purchase order until the 23rd of May: 

Reschedule_10.jpg

This will lower your inventory costs tremendously. 

Rescheduling Proposals integrated with MRP Change Requests 

The new rescheduling proposals are also tightly integrated with MRP Change Requests. This means that change requests for existing purchase order schedule lines based on the list of rescheduling proposals from MRP rescheduling checks can be send to suppliers using an external system to request a change of the quantity or delivery date for a purchase order schedule line. This ensures that material availability and customer requirements can be fulfilled. In the external system, suppliers can accept or reject the change request or send new proposals. 

Here is an example, with a Reschedule Out proposal. 

Reschedule_11.jpg

The purchase order 4500006364 will be Rescheduled Out to a later date in the future. 

Reschedule_12.jpg

After the material planner changed the Purchase Order the requirement lists give us a new status: 

Reschedule_13.jpg

The MRP change request can be seen in the Create MRP Change Requests app and further processed: 

Reschedule_14.jpg

Let's assume that the supplier can deliver on the requested date and accepts the MRP Change Request Proposal. After the acceptance, the material planner will see the following change in the stock requirements list: 

Reschedule_15.jpg

 

Enjoy the new rescheduling proposal capabilities! 

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Follow us on @SAP and #S4HANA, and myself on LinkedIn . 

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