Logistics Execution (LE)

Let’s Talk!

    Overview

    Organizations across the world look forward to having streamlined logistics and sound inventory management. In the absence of any of these, there could be several problems within the functional framework of the business.

    This brings us to the significant aspect which is SAP LE. SAP LE full form is SAP Logistics Execution.

    SAP LE or SAP Logistics execution is a module of the SAP system. It is responsible for overseeing various elements of the logistics of the business. It is a module that lets companies have impeccable logistics functionalities. Logistics and timely order fulfillment go hand-in-hand. Therefore, companies across the globe strive to have a flawless supply chain and logistics. This in turn results in enhanced customer satisfaction.

    Thus, in the wake of SAP LE, organizations can have better visibility into their supply chain processes.

    In this post, we shall be looking at the three components of the LE SAP. These are as follows:

    Logistics execution comprises two parts or processes: Goods Receipt and Goods Issue.

    Logistics Execution (LE)

    Goods Receipt Process: This process concerns the goods pick up from the vendor and storing them in the company’s warehouse. This part is further subdivided into Warehouse management or LE-WM. We shall be learning about this in detail in further sections.

    Goods Issues Process: This process entails issuing and delivering goods to customers. This process is further segregated into two processes known as Shipping (LE-SHIP) and Transportation (LE-TRA).

    Inclusions of Module LE - Logistics Execution

    Logistics Execution (LE)

    As learned in the earlier paragraph, we shall take a closer look at the following:
     1. WM (also called LE-WM)
     2. Shipping (LE-SHP)
     3. Transportation (LE-TRA)

    Let’s take a closer look at each of these:

    1. WM (also called LE-WM): WM or LE-WM is the logistics execution warehouse management module. This module assists the companies in maintaining the existing inventory stock. Here are some of the operations that are fulfilled by this module:
    • Manage all goods movements
    • Manage receipts
    • Issue and stock transfer orders
    • Optimize the flow of goods
    1. Shipping (LE-SHIP): This part of the module helps business managers to monitor the due date for shipping. It also helps them create and process outbound deliveries. Other activities like picking and packing are also accomplished with this module. Moreover, the LE-SHIP module also helps create shipping documents. All kinds of activities related to shipments such as tracking shipments fall under this component of SAP-LE.
    2. Transportation (LE-TRA): This module refers to managing transportation. It also aims to help reduce the shipment costs. It is aimed at carrying out an efficient transportation process. There are diverse functions that are covered by this module. In a nutshell, the LE-TRA helps companies improve delivery reliability.

    The other functions that are fulfilled by the LE component and they are:

    • Transportation planning
    • Freight Cost calculation
    • Carrier selection
    • Service agent selection
    • Route determination
    • Transportation analytics
    • Integration and coordination with other SAP modules

    Things to Consider while Implementation

    Logistics Execution (LE)

    Any implementation needs a thorough evaluation of the existing system. The existing set of functionalities must be assessed in order to judge the requirements for implementation.

    Here are some of the key points that businesses can be mindful of while implementing. 

    Let’s take a look:

    Business process: Understand the exact requirements of your company. Hold meetings with your core team members to know their thoughts.

    Configuration and customization: There are various sets of functionalities that are offered by the SAP system. After understanding what your business needs, analyze what will be the configuration.

    Training material: You must take into account the fact of training your staff at the time of implementation. Providing essential educational material will ensure that the users are well-trained. This will eventually lead to the maximum utilization of the system. Furthermore, you can covey the expected outcomes of the implementation. Knowing how to operate will empower the users for an optimal application.

    Besides these, you may also consider some other crucial elements, which include the following:

    • Stakeholder engagement
    • Testing and quality assurance
    • Data migration
    Logistics Execution (LE)

    How BPX will help implement?

    Logistics Execution (LE) - How will BPX help Implement

    We have learned how Logistics Execution module of SAP can be of immense help. Companies need to implement it for an immaculate transportation and logistics functionality. It may be not be as easy to implement SAP LE as it seems. This is where the expertise of BPX comes forth.

     In this section, we shall discover how Business Process Experts can facilitate the implementation. Here are the steps incorporated in the process: 

    1. As-Is Process (mention list of processes within each module): This is evidently the first stage in which the BPX team collaborates with the stakeholders. With a detailed discussion and elaborate details, the BPX team documents the As-is process. BPX takes this as an opportunity to learn about the shortcomings and pain points of the business. Any inefficiencies are noted in the existing procedures.

    2. Business Blueprint (Gap-Fit & To-be)/ SAP functional specification document: After understanding the as-is conditions, the BPX team defines a Gap-fit analysis. The desired to-be process is chalked out. All these requirements are considered for aligning with SAP functionalities.

    3. Master Data Migration/ Item Master Configuration: Businesses have a basic requirement which is in the form of Master data. Master data includes multiple variables such as customer data, vendor data, and so on. This data must be updated to the new system from the legacy system. Here is when the BPX team plays a pivotal role. With an aim to restore the relevant data with integrity, they draft meticulous strategies.

    The team assists business managers with data cleansing and validation. They also involve with activities like setting up attributes. In other words, the entire configuration is planned and incorporated.

    4. System Configuration / Realization (as per To-Be) along with customization:  Setting up system configurations is unique to each business. These are based on the desired to-be process of the company. Along with implementing SAP best practices, BPX ensures an efficient system configuration and realization.

    Each module needs to be understood and worked on in a detailed manner. Also, the team ascertains complete customization by understanding the unique requirements.

    5. UAT: BPX team connects with the business managers or users to learn about the UAT or user acceptance testing scenarios. This step is significant as it highlights the test cases based on the to-be process.

    Here, at this stage, BPX provides guidance at each level. The team also seeks to resolve all issues that are recognized during the testing stage.

    6. Go-Live Preparation (update as per feedback during UAT): UAT stage provides a lot of opportunities for the BPX team to collect feedback. With a competent implementation team, BPX works towards resolving gaps.

    The system, although, set up may need refinement. Configurations may need some adjustments. And therefore, the BPX team comes together to bring alive a dynamic system that is ready for use.

    7. Go-Live: the go-live event is much looked forward to by all concerned. With the utmost dedication, the BPX team paves the way for a smooth transition to the live system.

    8. After Go-Live Support: Even after the system has gone live and is ready to use, there may be certain queries and doubts. The team makes the necessary explanations and offers to address issues seamlessly.

    Having learned about the elaborate process, we understand that the BPX team leaves no stone unturned when it comes to effective system implementation.

    FAQs

    This section takes us through some of the most commonly asked questions regarding logistics execution in SAP SD.

    SAP LE is the logistics execution module of the SAP system. This module of SAP is accountable for the efficient logistics, shipping, and warehouse management of a business. It is of utmost importance for organizations to take care of these components of their business. These components are essential for driving excellent customer care.

    The different logistics execution topics in SAP include the following:

    • Shipping and transportation
    • Outbound delivery
    • Picking
    • Packing
    • Transportation
    • Goods Receipt
    • Inventory Management

    SAP LE-TRA stands for SAP LE Transportation.

    While both help in the management of transportation, SAP TM is much advanced than SAP LE-TRA.

    Here are some key differences between SAP LE-TRA and SAP TM:

    SAP LE-TRA

    SAP TM

    This comes under LE goods issue process.

    It is an independent application.

    It does not provide forecasting functions.

    It provides advanced analysis.

    Not integrated with SAP S/4 HANA.

    It is an embedded feature of SAP S/4 HANA.

    It offers limited functionality.

    It offers a comprehensive functionality set.

    Let’s Talk!

      Logistics Execution (LE) - Things to Consider while Implementation