ECC 5.

0 Instructor Manual
SAP WM Overview to Logistics Execution

Table of Contents

Course Content............................................................................................................................... 2
Course Goals.................................................................................................................................. 3
Logistics Execution Process Overview........................................................................................... 4
Logistics Execution Integration Process......................................................................................... 5
Logistics Execution Elements......................................................................................................... 6
WM Processes in LE...................................................................................................................... 7
Overview to Logistics Execution - Review......................................................................................8
 ECC 5.0 Instructor Manual
SAP WM Overview to Logistics Execution

Course Content

o We will be covering various Warehouse Management functions in different Units as

mentioned on the screen.
 ECC 5.0 Instructor Manual
SAP WM Overview to Logistics Execution

Course Goals
 ECC 5.0 Instructor Manual
SAP WM Overview to Logistics Execution

Logistics Execution Process Overview

Logistics Execution Components

o The Logistics Execution component (LE) integrates a company's logistics processes.
The component covers the entire process chain - from the vendor, internal
warehouse, production site, and distribution center right through to the customer.
LE processes include:
o Inbound process - the goods are collected from the vendor and placed in storage in a
company warehouse.
o Outbound process - the goods are removed from storage, and delivered to the
customer.
o Internal warehouse processes such as posting changes, stock transfers, inventory,
and so on.
o Transportation process - inbound and outbound shipments, as well as the calculation
and settlement of shipment costs
 ECC 5.0 Instructor Manual
SAP WM Overview to Logistics Execution

Logistics Execution Integration Process

Evolution of Logistics Execution

o As of version 4.5 , Warehouse Management, Shipping and Transportation functions
are brought together to form one central component called Logistics Execution.
LES in Supply Chain
o Logistics Execution System is an integral part of the supply chain. It forms the basis
for logistics processing, and provides a link between planning, optimizing, and actually
working through business processes
 ECC 5.0 Instructor Manual
SAP WM Overview to Logistics Execution

Logistics Execution Elements

LES Elements
o Warehouse Management: Takes care of controlling and monitoring the actual goods
movement within the companys storage facilities.
o Shipping: Shipping is an important part of the logistics chain in which guaranteed
customer service and distribution planning support play major roles
o Transportation: This element of LES handle planning and processing for both inbound
and outbound shipments.
 ECC 5.0 Instructor Manual
SAP WM Overview to Logistics Execution

WM Processes in LE

Role of LE
o Sales order processing is handled mainly by the SD component (Sales and
Distribution), whereas ordering is processed in the MM component (Materials
Management). SAP Logistics Execution (LE) represents the link between the two
processes.
Inbound Process
o When inbound process involves the ASN creation before GR posting, the Transfer
Order is created first and then GR posting happens. In other words WM Postings
happen before IM postings here.
o When inbound process dont involve ASN creation before GR posting, the GR
Creation initiates the creation of a transfer requirement followed by other WM
transactions. In other words, IM Postings happen before WM Postings here
Outbound Process
o For Outbound Delivery IM transactions are posted later
 ECC 5.0 Instructor Manual
SAP WM Overview to Logistics Execution

o For all other Goods Issue postings (e.g. GI to Cost center, production etc), IM
transaction is posted first followed by WM Postings

Overview to Logistics Execution - Review