SAP-for-Manufacturing | Procurement | Inventory Management
Manufacturing environments often require flexible procurement strategies to meet diverse operational needs. SAP supports this flexibility through Special Procurement Types — procurement methods designed for specific scenarios beyond standard purchasing or production processes. Understanding these procurement types helps manufacturers optimize inventory management, reduce costs, and improve responsiveness.
Special Procurement Types in SAP define alternative methods for sourcing materials based on specific business requirements. These types influence how materials are planned, procured, and consumed within production or stock.
Common special procurement scenarios include subcontracting, consignment stock, stock transfer, and direct procurement for production orders.
In subcontracting, manufacturers send raw materials or components to an external vendor who performs specific operations (e.g., assembly or processing) and returns the finished product. SAP handles:
This process reduces in-house workload while leveraging vendor expertise.
Consignment stock refers to materials stored at the manufacturer’s site but owned by the supplier until used. Benefits include:
Stock transfer involves moving materials between plants or storage locations within the organization. SAP supports:
Stock transfer helps balance inventory levels across multiple sites.
Here, components are procured directly for a specific production order, bypassing standard inventory stock. This is useful when:
SAP links purchase orders directly to production orders, improving traceability.
In third-party procurement, a vendor ships goods directly to the customer on behalf of the manufacturer. SAP manages:
This reduces inventory handling and logistics costs.
Special procurement types are configured at the material master level within the MRP 2 view, specifying:
Proper configuration ensures MRP plans material requirements correctly, triggering appropriate procurement processes.
| Benefit | Description |
|---|---|
| Flexibility | Tailor procurement to specific operational needs |
| Cost Efficiency | Optimize inventory carrying costs and reduce waste |
| Improved Supply Chain | Leverage external vendors and inter-plant logistics effectively |
| Enhanced Transparency | Clear tracking of materials and procurement flows |
| Better Planning | Accurate MRP results reflecting real-world procurement scenarios |
An electronics manufacturer used subcontracting to outsource PCB assembly. By configuring procurement type 30:
Special Procurement Types in SAP provide manufacturers with the tools needed to handle complex sourcing scenarios efficiently. By leveraging these options, organizations can customize their procurement strategies, improve supply chain agility, and reduce operational costs.
Understanding and implementing the right special procurement types is key to optimizing manufacturing operations in today’s dynamic market environment.