Logistics Execution (LE)
This is the component, which controls as well as manages the movement of goods or services in a company. Additionally, logistics execution ensures transportation of materials between the firms (Tompkins, 2005). Movements of services or goods involves the outbound processing or management of sending goods to customers and corresponding inbound management of receiving products from vendors, as well as organizing plus monitoring the movement of materials (Tompkins, 2005).
Logistics execution from the perspective of architecture is categorized into areas of inbound delivery processing that entails receiving products from the vendor as well as storing within the warehouse of a firm. Logistics execution from the architecture view involves warehouse management that entails supporting stock transfer or transportation, picking, as well as packing. Additionally, logistics execution covers outbound delivery processing that involves picking the products and transporting to the consumers or customers (Ray, 2011). Transport management is an area that is also covered in logistics execution, and it entails supporting inbound as well as outbound shipment processes. Ordinarily, logistics execution is started by processing a purchase order in MM or processing of sales order in SD (Ray, 2011). The inventory is normally part of MM. The processes of logistics execution are integrated with management of inventory that keeps the real inventory (Ray, 2011).
The integrated architecture can be with SAP ERP and SAP business suite. The integration of logistics execution with MM and SD can be through database integration. Logistics execution is started by SD to execute the process of order fulfillment for a transaction order, specifically the delivery processing. Outbound delivery document, in this scenario is established referencing the transaction order. An inbound delivery is established upon receipt of products by a firm concerning the purchase and initiates products receipt dispensation in MM (Ray, 2011).
LE integration can also be done with SAP transaction suite. SAP may be linked to the management of warehouse part of logistics execution to offer extra warehouse management roles within the situations of ASN (advanced shipment notification), assignment of work, as well as picking bin determination (Tompkins, 2005). Deliveries are established within logistics execution as well as moved to SAP EWM by the use of queued RFC. The success of logistics execution depends on a well managed work force that can overcome any challenge. What are some of the challenges of logistics execution?
Ray, R. (2011). Enterprise resource planning. New Delhi: TATA McGraw Hill Education.
Tompkins, J. A. (2005). Logistics and manufacturing outsourcing: Harness your core competencies. Raleigh, NC: Tompkins Press.