Integrated consignment process and consolidation opportunities

One of the key advantages of having professional shipping functionality of SAP S/4HANA Supply Chain for Transportation Management (embedded TM) is the ability to consolidate inbound and outbound movements. Previous blog focused on the opportunity and benefits of consolidating inbound and outbound movements in MM subcontracting process. Similarly, there are processes in SD (sales and distribution) area where we can consolidate/combine inbound & outbound movements. This blog focuses on one such scenario – integrated customer consignment process with embedded TM.

Customer consignment is the process of keeping the stock at customer premises, and until the customer consumes or sells it, it will be a part of the seller. The customer is not obliged to pay for these goods, until it is removed from the consignment stock. Since consignment stocks still form part of valuated stock, one must manage this stock in the system. However, consignment stock must be:

• • Managed separately from the rest of your stock, so that we are aware of the stock which is stored at the customer location

• • Managed separately for each customer