Yeterday we covered the master data part of it , so today we will try to
venture more into the transactional side of things, I’ll walk you through how
key data points like Purchase Orders, Stock Transport Orders (STOs), Inbound
Deliveries, and Goods Adjustments contribute to the ecosystem& how Each
of these data streams plays a critical role & connects to the broader
objectives of MFP framework .
1. Purchase Orders (PO)
Key Data Points in PO
PO Number: Unique identifier for tracking the purchase order.
Ship-from Location: The supplier or vendor location where goods are
sourced.
Ship-to Location: Receiving warehouse or store for the goods.
Article Variant: SKU or product code for the items being ordered.
Quantity Requested: Total quantity ordered by the buyer.
Quantity Confirmed & Shipped: The confirmed and shipped
quantity by the vendor, which reflects availability.
Unit of Measure (UOM): Measurement unit for the ordered goods,
such as PCE (Piece).
Delivery Date (Scheduled/Actual): Planned vs. actual delivery
timelines for goods, crucial for financial planning.
Landed Cost of PO Item: The total cost, including procurement,
transportation, and handling costs.
Net Price of PO Item: Price agreed with the supplier excluding landed
costs.
Retail (MSRP) Amount of PO Item: Manufacturer's suggested retail
price.
Currency: Indicates the financial denomination for costs and prices.
How PO Data Contributes to MFP
Firstly for PO which helps in calculating procurement costs,
including moving average prices (MAP) and standard prices
which provides planners with insights into the cost structure of
merchandise.
Data about quantities, articles, and delivery dates ensures that
merchandise is aligned with demand forecasts in different locations
contributing to the overall Stock Allocation Planning
Vendor Management: Tracking delivery adherence through
scheduled vs. actual delivery dates.
Currency Conversion: Ensures accurate financial reporting in
receiving site currencies.
2. Stock Transport Orders (STOs)
Key Data Points in STO
Article Number: Identifies the product being transferred.
Receiving Site: Destination of goods (store, warehouse, or
distribution center).
Supplying Site: Source of goods (warehouse or another store).
Posting Date: Date the STO transaction is posted in SAP.
Quantity: Total quantity of goods being transferred.
Net Price: Price of the article variant in the STO.
MSRP (ZRRP): Retail price suggested for the article variant.
Currency: Indicates the financial denomination for STO.
How STO Data Contributes to MFP
Inter-Site Inventory Movement: STOs show how inventory is
redistributed across warehouses and stores based on demand. This
supports:
o Optimizing inventory levels.
o Reducing overstock and stockouts at specific locations.
Cost Analysis: The net price and MSRP from STOs help in
determining margins and profitability for redistributed stock.
Planning by Location: STOs enable location-based inventory
planning in BlueYonder MFP, ensuring accurate financial forecasts and
stock availability.
Date Dependencies: The posting date affects timelines for stock
movements, aiding in aligning replenishment cycles.
3. Inbound Deliveries
Key Data Points in Inbound Deliveries
Delivery Number: Unique identifier for the delivery document.
Reference Document (PO, STO): Links the inbound delivery to its
corresponding PO or STO.
Article Variant: SKU or product code for the delivered goods.
Quantity: Total quantity of goods received.
Unit of Measure (UOM): Measurement unit of the goods delivered.
Posting Date: Date goods are posted in the system as received.
How Inbound Delivery Data Contributes to MFP
Inventory Updates: Provides visibility into stock availability at
receiving sites.
Stock Valuation: Quantities received contribute to MAP updates,
ensuring accurate cost calculation.
Order Fulfillment Tracking: Links to POs and STOs ensure that
financial planners can track order completion rates and delays.
Lead Time Analysis: Helps in identifying supplier and logistics
efficiency, which can impact merchandise availability for financial
planning.
4. Goods Adjustments
Key Data Points in Goods Adjustments
Article Variant: SKU or product being adjusted.
Movements Inbound to Site: Indicates the stock being added to a
specific site (not STO-related).
SAP Inventory Movement Code: Represents the type of adjustment:
o Write-offs for damaged goods.
o Shrinkage for lost inventory.
Posting Date: Date when the adjustment is recorded.
Quantity: The amount being adjusted in or out of inventory.
Currency: Value of the adjusted goods.
How Goods Adjustment Data Contributes to MFP
Accurate Stock Visibility: Goods adjustments (e.g., write-offs,
shrinkage) ensure inventory discrepancies are accounted in for
financial planning.
Cost Accuracy: Adjustments impact MAP calculations, affecting
financial metrics like margins.
Waste Management: Write-offs provide insights into inventory
losses, helping planners optimize procurement and replenishment
strategies.
Financial Reporting: Adjustment data feeds into BlueYonder MFP
KPIs, such as shrinkage rates and inventory write-down costs.
Key Activities in the BlueYonder MFP Project
Integration: Ensure SAP FMS sends data for POs, STOs, Inbound
Deliveries, and Goods Adjustments in the correct format.
Transformation: Map data fields correctly into BlueYonder's schema,
ensuring proper calculation of KPIs like MAP, standard price, and
inventory reconciliation.
Validation: Test the data flow for completeness, accuracy, and
consistency to ensure planners have the correct inputs for decision-
making.
Data Quality: Focus on accurate master data management, such as
currency conversions, article variant identification, and unit of measure
consistency.
Dependencies and Challenges
Master Data Quality: Article variants, valuation types, and stock
locations must be accurate to prevent errors in calculations.
Real-Time Updates: Data latency between SAP and BlueYonder can
impact real-time decision-making.
Data Volume: Large data volumes require robust ETL pipelines to
ensure performance and accuracy.
By ensuring accurate and timely data across these processes, BlueYonder
MFP can provide precise financial forecasting, inventory planning, and
profitability analysis, driving smarter merchandising decisions.