Decentralised WM With Non SAP 3PL

[guy1]

Hi All,

I have searched the forums / knowledge base but up to now my queries remain.

We have an upcoming S/4HANA deployment where distribution and warehousing will be managed via a 3PL. The 3PL will be using their own warehouse management software.

So the question is how best to interface?

I'm interested in using decentralised WM, as I like the security of having the linked slocs completely locked down - ie goods movements can only happen via an inbound or outbound delivery that is automatically created and 'sent' to the 3PL. But what are the pros & cons of doing it this way? I've heard that the technical complexity outweighs any benefits?

Obviously there is no BAPI at the receiving WM system, so what would actually be sent? Does the SAP system create idoc messages via the BAPI and send them....and then these are mapped into the 3PL WMS?

In the past I've seen idoc messages sent to 3PLs via output determination in the outbound delivery. This is ok, but it seems like a really 'loose' way of doing things. I mean, whats stopping someone cancelling an outbound delivery that the 3PL are half way through picking. And whats stopping someone adjusting the IM stock in SAP and therefore creating an inconsistency?

Any hints or tips in this area greatly appreciated.

Thanks

Guy

[DominikTylczyn · Accepted solution]

Hello guy1

I can think of two options to integrate a 3rd party non-SAP managed warehouse with SAP ERP / S4HANA. I'd call them:

• loose integration
• tight integration

Loose integration

Here you use Delivery Interface functionality of LE-SHP, i.e. WHSORD "Warehouse order to internal warehouse" and WHSCON "Warehouse verification from internal warehouse" IDoc messages. Inbound and outbound deliveries are created / planned in ERP and sent to the external warehouse with WHSORD. After they are processed the confirmation is sent back with WHSCON. WHSORD is generated with output determination on the delivery header - WSOR output type. Here, delivery processing / changes are not blocked in ERP once the delivery is sent to the external warehouse (that's why I call it loose integration). Only delivery related material movement types are planned in SAP ERP. Any other material movements are initiated in the external warehouse and reported back to SAP ERP with MBGMCR IDoc messages or with GoodsMovement.CreateFromData BAPI.

Tight integration

Here you use LE-IDW "integrated decentralized warehouse" interface - SAP Help Decentralized Warehouse Management (LE-IDW). Any movement type initiated in SAP ERP is sent to the external warehouse as a delivery document. The external warehouse processes deliveries and sends confirmations back to SAP ERP. The delivery related communication is with the following BAPIs:

• InboundDelivery.SaveReplica
• InboundDelivery.ConfirmDecentral
• OutboundDelivery.SaveReplica
• OutboundDelivery.ConfirmDecentral

Additionally material movements initiated in the external warehouse e.g. physical inventory adjustments are reported to SAP ERP with GoodsMovement.CreateFromData BAPI calls or MBGMCR IDoc messages. Here a delivery is locked for changes once it's distributed to the warehouse, thus tight integration.

I can't give you this or that recommendation as both scenarios are sound, have their pros&cons. You just need to evaluate how tightly you want to integrate your external warehouse. I've used both in real life scenarios and they just work.

Additionally you might want to synchronize master data from SAP ERP to the external warehouse system:

• material master - MATMAS IDoc message
• batch master - BATMAS IDoc message
• vendor master - CREMAS IDoc message
• customer master - DEBMAS IDoc message

Change pointers and ALE message reduction can be used here to replicate only changes relevant to the external warehouse.

Whichever integration flavor you choose, SAP ERP needs to communicate to the external warehouse. SAP will talk IDoc/BAPI typically over RFC calls. The external warehouse will talk whatever messages the software is capable of. Thus you need to link them together. The options are numerous and you should choose the one that is aligned with your company integration strategy, e.g.

• SAP PI/PO
• SAP Cloud Platform Integration (i.e. integration middleware in the cloud)
• any 3rd party integration middleware like Mulesoft, BizTalk.

If your company doesn't have any clearly defined integration strategy and is not favoring any integration middleware you might have a look at SAP connectors offering. SAP provides libraries to implement RFC/IDoc/BAPI communications in Java, .NET, C/C++. This way the communication capabilities can be implemented from scratch and integrated directly with the external warehouse management software.

Last but not least, consider using SAP Business Connector to implement data mappings and establish the communication. SAP BC is free for SAP customers and it's a really great tool - been there, done that.

Best regards

Dominik Tylczynski

[guy1 · Accepted solution]

Thank you Dominik, this is excellent information! I really like the naming of those 2 option - "Loose" and "Tight" - this will help I'm sure when we start having those detailed discussions.

Another question related to both loose and tight integration - in addition to receiving a PGI message from the 3PL, would it be possible to receive a pick confirmation and a pack confirmation message. So that the delivery is updated in the central system prior to PGI. If the delivery is updated with packing inf then, for export orders for example, this would allow someone to generate all the required paperwork.

How would this work? I don't see any PICKCONF or PACKCONF type message in the delivery interface....

Regards

Guy

[DominikTylczyn · Accepted solution]

Hi guy1

I'm glad to help. Up voting and accepting the answer would be a nice token of appreciation.

BR, Dominik

[DominikTylczyn]

Hello guy1

Picking and packing information can be reported back to a delivery in both scenarios either with WHSCON IDoc or ConfirmDecentral BAPI.

Best regards

Dominik Tylczynski