Order fulfillment and delivery are critical components of the supply chain, directly influencing customer satisfaction, operational efficiency, and business profitability. In the context of SAP SCM (Supply Chain Management), these processes are streamlined and integrated through various modules and functionalities, ensuring a seamless end-to-end supply chain execution.
Order fulfillment refers to the complete process from receiving a customer order to delivering the product to the end customer. It includes:
Delivery, as part of the fulfillment process, deals with the actual movement of goods from the warehouse to the customer, including logistics planning, carrier selection, and transportation execution.
SAP SCM provides a robust framework to manage order fulfillment and delivery through integration with various modules:
Sales orders are created in the SD module. The system checks product availability using ATP (Available to Promise) functionality in SAP APO or S/4HANA.
Once the order is confirmed, a delivery document is generated. This is the basis for warehouse processing and logistics execution.
The delivery is transferred to SAP EWM or WM, where items are picked and packed according to warehouse rules and availability.
Once packed, a goods issue is posted. This updates inventory levels and marks the order as shipped in the system.
If integrated with SAP TM, the system plans the transport, selects carriers, and generates shipping instructions.
The delivery status is updated once the goods reach the customer. This can trigger billing processes and customer notifications.
SAP SCM allows tight integration between planning, execution, and analytics, which enables:
Order fulfillment and delivery are crucial in the success of a modern supply chain. With SAP SCM, organizations gain a powerful, integrated platform to optimize these processes. From order receipt to final delivery, SAP provides the tools needed to execute efficiently, reduce costs, and deliver superior customer experiences.