Below is an example of how a company might implement the ALE concept.

This compound scenario consists of three ALE-communicating application systems as follows:

• In the company head office, a reference system is implemented for master data and control data. The applications Accounting, Human Resources, Central Purchasing and Sales Planning are run here. At the same time, it is used as an intercompany information system for Logistics.

• In the production plants, R/3 is used as a local sales and operations planning system (SOP) and as a production planning and control system (PPC). Local purchasing and inventory management are also carried out using R/3.

• In the sales agencies, R/3 handles the sale, dispatch, inventory management, and purchasing of trading goods.