Companies transporting goods among their own warehouses, plants or distribution centers can maintain complete visibility...
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
of goods movement with stock transport order, a feature of SAP Materials Management (MM). Stock transport order is a special procurement type that a warehouse supervisor uses to transfer a company's goods from one warehouse or plant to another.
The warehouse supervisor creates a stock transport order in the SAP system and maintains details of the plant supplying the goods, the goods' transfer quantity and the receiving plant. The supplying plant's warehouse supervisor issues the goods with reference to the stock transport order. The issued goods are shown in transit (see Figure 1) until they reach their destination. Once the goods reach the receiving plant, the warehouse supervisor accepts receipt of the goods with reference to the same stock transport order. This ensures three-dimensional goods' visibility -- from issuance, in transit, to receipt.
Figure 1 shows the stock in transit for material 400-300 for stock transport order 4500017351. Here, the supplying plant code is 1100 and the receiving plant code is 1400. Because material 400-300 (two PCs) is in transit, the system shows this information, thereby helping the company keep track of its goods.
In some companies, a stock transport requisition precedes a stock transport order. A stock transport requisition, a request from the receiving plant for the goods required, is sent to the supplying plant. The warehouse supervisor converts the stock transport requisition into a stock transport order.
Using a stock transport order ensures that transportation and other allied costs, such as goods' loading or unloading charges, are covered. In such a business scenario, the company engages a freight vendor to transport goods between two plants and pays the freight vendor. The freight charges become part of a material's cost. For example, a material in one plant is valuated at $100. When transported to another plant, its value becomes $110 to account for $10 in transportation costs.
Using SAP MM quota arrangement for supply chain management
How to reduce data clutter with SAP Configurable Materials
Prevent supply chain issues with SAP EWS
Dig Deeper on SAP MM
Related Q&A from Jawad Akhtar
SAP Supplier Relationship Management-Master Data Management Catalog can help simplify cataloging tasks required to excel in today's complicated ...continue reading
Using available planning tools in SAP SCM and taking on a demand-driven mindset will help companies more adequately address modern customers' demands...continue reading
Setting up demand-driven metrics and using analytics to monitor them can provide benefits such as helping to reduce working capital commitments and ...continue reading
Have a question for an expert?
Please add a title for your question
Get answers from a TechTarget expert on whatever's puzzling you.