When do we use shipment (shipment document) in SAP?

[Former Member]

Hi Gurus,

When do we use shipment in SAP? Is it a reduntant process after delivery?

Thanks,

Paul

[Former Member]

hipment is the document that is going to be created to combine single or no of deliveries and carry out shipment and transportation process, there are different types of shipments are there, i.e individual shipment, collective shipment(milk-run), and process chain,

depending up on the departure points and destination points, as well as deliveries, and mode of transports these documents are going to be created.

[Former Member]

I would like to add to the numerous pertinent mails on this aspect. Shipment deals with transportation from the factory to the final destination whereas delivery is the process that takes place at the factory, Delivery is internal w.r.t the factory. Shipment is external.

Now the aspects of planning the route and the costs and handling of the consignmentm takes place in shipment. Even the units here are different compared to the delivery.

Within SCM this forms the single most important activity and companies like Federal exprese and the like thrive only on this. For most industries maybe its a small aspect of their business but it increases in scope if there are multiple legs and multimodal methods of transport and multiple destinations and combinations ...

regds

Jude

[Former Member]

>

> Hi Gurus,

>

> When do we use shipment in SAP? Is it a reduntant process after delivery?

>

> Thanks,

>

> Paul

Hi Paul,

When we create a delivery we just issue the goods from plant (the process of releasing the goods from storage location) we only release the goods from plant but not physically deliver it;

As long as the customer is going to pick up the goods from you plant its fine.

But not always would the customer gets his deliveries picked up from the seller. In fact it is a usual practice for the seller to deliver the goods right to the customers Door Step.

To enable this we need to carry the goods to customer door step.

Now as should happen logically if a truck is going from point A to point B to deliver Customer X for say delivery number 999. we would like to combine all other deliveries (say delivery 999, 123, 567 all are due from Route A to B) which are due for the path A to B this reduces cost.

So Shipment ABC will contain Delivery 999, 123, 567 in this case and we end up physically delivering the goods.

The process of combining the deliveries in such a manner is what is contained by Shipment Document.

Again if transport is done for Bulk it is called Bulk Shipment for Packed it is called SD Shipment and so on.

But nevertheless the Shipment Document contains the Deliveries which have to be delivered to the customer.

Hope it clarifies to some extent.

Reward if helpful

Regards

Abhishek Swarup

Kindly go through this Blog for Technical Details

/people/abhishek.swarup/blog/2008/01/05/creating-td-shipments

[former_member204513]

Hi Jhon,

When the company is involving in the transportation activities ,these are the two thinngs involved in the transportation.

1.Shippment process.

2.Shippment cost settlement process.

1.The shippment document is one of the important element in the shippment process. The shippment document will be create with reference of Delivery doc.

The system will allow you to create shippment document for the delivery before PGI and after picking completion.

The shippment document containes the all necessary data which is helpfull to carry out transportation planning.

Ex:- What is route, what is the carrier,what is mode of the transport,distence of the route,what are the stages in that route..etc.

The shippment cost document will be created with the reference of shippment document.

Based on the shippment cost document the amount will be settled to the carrier or transporter.

I hope it will help you,

Thanks,

Murali.

[Former Member]

Shipment is used only if transportation is activated, once transportation is activated ie (transporting of the goods is also taken care of by the same company and the company has its own transportation system). Further shipment types, shipment docs come into picture like individual shipment, collective shipment, transportation chain

[Former Member]

hi,

The shipping document is the central element of transportation planning and shipment completion. It contains all the information necessary for carrying out transportation.

for example when you have a set of deliveries being dispatched from the same point and also need to reach the same destination with a single mode of transport its better you combine those deliveries. This is business need is identified in SAP as an individual shipment. Similary the system supports collective shipment(several departure points/destinations, but single mode of transport) and a transportation chain(multiple mode of transport).

regards

sadhu kishore

[Former Member]

hai paul,

shipment is the document that is going to be created to combine single or no of deliveries and carry out shipment and transportation process, there are different types of shipments are there, i.e individual shipment, collective shipment(milk-run), and process chain,

depending up on the departure points and destination points, as well as deliveries, and mode of transports these documents are going to be created.