Modern companies recognize the importance of a leaner materials management system and better information flow between business partners involved in ordering, delivering, and receiving materials. In the component supplier industry, in particular, a new procedure is being used to streamline business processes: the Material Information System (MAIS).

In the MAIS procedure, the customer transmits information to the component supplier and forwarding agent in a pick-up sheet (similar to a just-in-time delivery schedule). The information in this sheet details the materials required and the date on which the customer’s forwarding agent is scheduled to "pick up" the materials at the supplier location.

Delivery order processing in the R/3 System has been designed for component suppliers and is based on the MAIS procedure. In delivery order processing, the pick-up sheet is entered into the R/3 System and processed as a delivery order.

Delivery order processing has been designed to optimize shipping control by providing:

• An efficient source of information for the customer, component supplier, and forwarding agent
• A simple process for ordering and receiving materials from the component supplier
• A secure basis for planning

A special sales document and scheduling agreement have been designed for delivery order processing. Delivery orders are delivered and billed in the standard way.

Electronic Data Interchange (EDI) plays an important role in delivery order processing.

There are no Customizing settings specific to delivery order processing.

The following functions are not supported in delivery order processing:

• Engineering changes
• External service agent processing

Because of the high volume of quantities managed in KANBAN, we recommend you do not use KANBAN with delivery order processing.