Merchandise Distribution 


General information on Merchandise Distribution


Merchandise Distribution functions enable you to manage all the steps in the distribution process from planning to shipping as smoothly and efficiently as possible. Merchandise can be cross-docked in the distribution center, enabling you to move goods faster through the warehouse and thus reduce the cost of storing and processing the goods.

Planning merchandise distribution using a collective purchase order

You can plan merchandise distribution using a collective purchase order. A collective purchase order is made up of a selection of issue documents (warehouse orders and/or sales orders) in which all items relevant for a vendor have been determined and aggregated for each material and vendor. Distribution data is kept in the system for each collective purchase order.

Using collective purchase orders is an easy method of grouping together all the recipient requirements that exist in the system in the form of warehouse orders or sales orders in the one purchase order for a vendor (pull-method). The distribution data the system keeps enables you to then coordinate and monitor the distribution of the goods among the recipients.

When collective purchase orders are generated for sales orders, the sales order is blocked with a blocking reason. The blocking reason you use can be entered in Customizing in the step Plant Profiles for Merchandise Distribution .

Make sure that the following Customizing settings are made for the blocking reason:

Integration of Merchandise Distribution and Allocation

If you use allocation tables to plan the movement of merchandise from a vendor to a distribution center and then to a store, the system keeps distribution data on this. This data is then used to adjust the distribution after the goods have been received and to coordinate how the merchandise is distributed in the distribution center.

Once follow-on documents have been generated for an allocation table, the planning phase is complete. All the processes that follow are run in the same way as if you had planned using a collective purchase order.

Distributing merchandise

In distributing merchandise, the distribution center moves merchandise from the goods receipt area to the goods issue area. At goods receipt, a reference is created to the distribution data in the system. You can bring the distribution data into line with the quantities actually delivered either manually or have the system do it for you automatically. The system then generates follow-on documents for picking and shipping, or changes existing documents. You can also trigger subsequent processing manually or have the system do it for you automatically.

The following processing methods are available for distributing merchandise in the distribution center:

You are advised to set up different storage locations for each processing method you use for receiving goods in a plant. You can define default values for the storage locations in Customizing. Please read the IMG section Storage location determination.

Change system parameters in customizing

Please read the IMG section