Transportation Lead Time For Purchasing and Distribution

This document explains the settings for transportation lead time. Transportation lead time is the time it takes to ship the goods from the supplier to the buyer's final address.

Transportation lead time is used for purchased and distributed items, not for manufactured items.

For each transportation method you can define a transportation lead time. For example, truck and train ship a delivery from the supplier, so you define the lead time for the both transport methods.

Outcome

The transportation lead time is set depending on the delivery responsible type, defaulted delivery terms and the delivery method.

Transportation lead time is specified for purchased items via supplier's term of delivery and delivery method. For distributed items it is specified transportation timetable (ITTRDY/MITDRT).

Transportation Lead Time For Purchasing and Distribution is used

to define the time it takes to ship the goods from the supplier to the buyer's final address.
as a lead time component to calculate the total lead time per item/warehouse connection.

Before you start

Basic data for item and inventory management must have been set.
The 'Acquisition code' field in 'Item. Connect Warehouse' (MMS002) is set
Basic data for the supplier are set in 'Supplier. Open' (CRS620)
'Delivery term' and 'Delivery method' fields are specified in 'Supplier. Define Purchase & Financial' (CRS624).
The 'Delivery term' field is set in 'Delivery Term. Open' (CRS065)
The 'Delivery method' field is set in 'Delivery Method. Open' (CRS070)
For transportation lead time between warehouses, when using distribution orders, the distribution relation must have been defined in 'Distribution Relation. Open' (DPS001)
The 'Place of load' field in 'Place. Open' (MMS008) is set.

Follow these steps

Transportation lead time for purchasing (Acquisition code 2 in MMS002/E):
1. Start 'Supplier. Open' (CRS620), select option 13 which calls 'Supplier. Define Purchase & Financial' (CRS624).
2. In (CRS624), select option 14 which calls 'Supplier. Connect Transp Lead Times' (PPS010).
3. Fill in the fields on the B panel.
4. Enter the E panel and enter mandatory and significant data for transportation lead time for purchasing.
5. The total transportation lead time is displayed on the (MMS002/E) panel.
Transportation lead time for distribution between warehouses (Acquisition code 3 in MMS002/E):
1. Start 'Distribution Relation. Open' (DPS001). Fill in the 'Transportation time' field on the E panel.
2. The transportation lead time is displayed on the (MMS002/E) panel.

Parameters to set

Purchasing (Acquisition code = 2 in MMS002/E)


Program ID/ Panel	Field	This field indicates …
(PPS010/B)	Delivery terms	...the delivery term, which indicates when the responsibility for a delivery is transferred from the supplier to the customer. This calls 'Delivery Term. Open' (CRS065).
(PPS010/B)	Delivery method	...how the delivery is made.
(PPS010/B)	Place of load	… the transport lead time for this supplier and place of load.
(PPS010/E)	Goods responsibility	From 'Supplier. Open' (CRS620/B) option 13, calls 'Supplier. Define Purchase & Financial' (CRS624). From (CRS624) option 14 calls (PPS010/B) The transportation lead time depends on the goods responsibility type. If the buyer assumes liability when the goods leave the supplier's inventory (1) the total transportation lead time in (MMS002/E) will be Tr1+Tr2. If the buyer assumes liability when the goods are received at the buyers transport address (2) only Tr 2 will be included in the transportation lead time. If the buyer assumes liability when the goods are received at the buyer's final address (3), no transportation lead time will be included.
(PPS010/E)	Transportation lead time 1 (Tr 1)	...the number of workdays needed to transport from the supplier to the transport station (via terminal). Also indicates the number of workdays for order processing, from the time the purchase order is sent to the supplier until the goods are dispatched to the transport station (via terminal).
(PPS010/E)	Transportation lead-time 2 (Tr 2)	...the numbers of workdays needed from when the goods are sent from the transport station (via terminal) to the buyer's final address. Tr 1 plus Tr 2 gives the total transportation lead time, in workdays, from when the purchase order is sent to the supplier until the goods are received at the final address.

Distribution between two warehouses (Acquisition code = 3 in MMS002/E)


Program ID/ Panel	Field	This field indicates …
(DPS001/E)	Transportation time	...the numbers of workdays calculate as necessary to transport items between two warehouses.