Contract Packager Inbound 
Purpose
A contract packager or contract processor (CP) is a service provider who mainly supports the inbound process. A CP offers services such as packaging or reworking of materials. In the ERP system, every CP is represented by one or more storage locations.
To handle contract packaging for service parts, the inbound process is enhanced to:
· Ship goods from the supplier to a CP for processing
· Transfer the packed or reworked materials from a CP to the warehouse that purchased these goods
The processes that involve CP are not limited only to those between the supplier and the entry point (EP). Any internal stock transfer between the plants may require the CP processing.
When a particular CP cannot process the required packaging or has no capacity available, then the receiving goods can be redirected to another CP.
The following figure illustrates these business processes
Implementation Considerations
You have maintained the basic settings for CP in Customizing.
For more information, choose Customizing for Logistics Execution under Service Parts Management (SPM) ® Contract Packager Inbound (SPM) ® Basic Settings for CP
Integration
Business scenarios for CP involve the following systems:
· SAP ECC 6.00
· SAP CRM (ordering system)
· SAP SCM-APO (planning system)
· SAP SCM-EWM (execution system)
· SAP ICH (supplier portal)
The systems are integrated using the existing interfaces, BAPIs and IDocs.
Features
The contract packager provides:
· Materials requirement planning(MRP) area master data
Constraints
CP does not support business scenarios based on purchase order, purchasing contract and third-party order processing (TPOP).