Inventory Management, Storage, and Transportation (SAP Library - Process Flow Hierarchy)

Inventory Management, Storage, and Transportation

Definition

The Inventory Management, Storage, and Transportation enterprise area deals with the following tasks:

Management of material stocks on a quantity and value basis
Planning, entry, and documentation of all goods movements
Carrying out the physical inventory
Defining and managing complex warehousing structures
Optimizing the material flow using advanced stock placement and picking procedures
Processing goods receipts, goods issues, and stock transfers quickly and easily
Supporting warehouse activities as a decentralized Warehouse Management System

Use

Goods Movement processes enable you to perform goods movements independently of the business processes in Production or Sales and Distribution. This guarantees optimum use of warehouse capacity and that materials are staged to meet requirements.

Physical inventory of material stocks is required by law in many countries and includes physical inventory at storage location level and storage bin level.

Decentralized Warehouse Management describes the SAP Warehouse Management System (WMS) as a separate, decentralized system that is operated independently of a central Enterprise Resource Planning System (ERP System).