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Physical Inventory

BUSINESS BLUEPRINT PROCESS DOCUMENT



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List of Abbreviations...............................................................................................................................3
................................................................................................................................................................3
1.Mission Statement ...........................................................................................................................4
2.Objectives.........................................................................................................................................4
3.Expectation.......................................................................................................................................4
4.Key Performance n!icators............................................................................................................."
".#escription......................................................................................................................................."
$.Specia% &onsi!erations.....................................................................................................................$
'.So%(tion in SAP................................................................................................................................$
).*(siness Process +%o,.....................................................................................................................-
-..aps................................................................................................................................................1/
1/.0or1aro(n! So%(tions..................................................................................................................1/
11.&2an3es to Existin3 Processes.....................................................................................................1/
12.4eportin3 4e5(irements...............................................................................................................1/
13.A(t2ori6ation 4e5(irements........................................................................................................11
14.Mi3ration 4e5(irements...............................................................................................................11
1".&(stomi6ation 4e5(irement.........................................................................................................11
1$.*enefits.........................................................................................................................................11
1'.7rainin3 8ee!s.............................................................................................................................12
1). +ee!bac1 +orm.........................................................................................................................12

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List of Abbreviations
Acronys Descri!tion
LSP Laboratory Supply Points
SLOC Storage Location
SAP Systems Applications and Products in !ata Processing
SC" Supply Chain "anagement
#P$ #ey Performance $ndicator
"$S "anagement $nformation System
%O$ %eturn on $n&estment
C'S(O")% Customer
PO Purchase order
SO Sales Order
P% Purchase %e*uisition

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"# Mission Stateent
$# Ob%ectives
CO"PA+, wants to transform business processes by implementing SAP Supply Chain
"odules to reduce the processing times of administrati&e tas-s and to -eep full data records
a&ailable for near real time reporting. $mplementing SAP according to best industry
practices resulting into timely decisions with the help of real time data and a&oiding any
delay in reporting. (his in turn will ma-e all areas of SC" administration &ery effecti&e and
competent in the business en&ironment. !etailed &isibility of &arious aspects of the Supply
Chain should enable higher efficiency and robustness.
CO"PA+, wants to perform physical in&entory periodically as per the agreed norm. (he
physical in&entory process would enable accurate *uantity of stoc- chec- inside the
warehouse. Physical *uantity &ersus boo- &alue *uantity would be matched after the
physical in&entory process. (his would ensure &isibility of accurate in&entory &alue for
management sta-eholders and other interested parties.
&# E'!ectation
/ollowing are the e0pectations of CO"PA+, team1
!e&elopment of $( system based on SAP to enable capturing of actual counted *uantity of
materials after the physical in&entory count.
Ability to count materials as per the actual bin where the material is located.
!e&elopment of a robust system &alidation process which should eliminate the margin of
error associated with human inter&ention / manual processing. (his will drastically reduce the
time associated with the manual handling of paper documents (hus reducing the o&erall
Supply chain costs.
Online data update of all the transactions happening across the Supply Chain.

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3isibility of stoc-s commitments and re*uirements in real time so that an ad&ance planning
can be done to minimi4e lead time eliminate stoc- outs and appropriately control the capital
bloc-ed as $n&entories and positi&ely influencing the %O$.
Automation of all $n&entory and 5arehousing processes by adopting SAP 6est Practices in
applicable areas.
/unnelling of data to pro&ide the #P$ based reporting through the dashboards created for the
processes.
'sing standard reports for "$S and for arri&ing at management decisions.
(# )ey Perforance In*icators
!ifference in boo- &s. physical *uantity
A6C Classification of materials based on usage or
re*uirements
+# Descri!tion
+#" Stoc,s of Material at -ee*er .areho/se
As per the agreement with C'S(O")% CO"PA+, is re*uired to maintain the stoc-s of certain
materials at the C'S(O")% premises. (his stoc-ing is done in the 7/eeder 5arehouse8. All
re*uirements for these materials are catered to from the /eeder 5arehouse only. A separate area
ad9oining the 5arehouse is meant for recei&ing the deli&eries from 3endors and to dispatch the
outbound shipments to the re*uesters or LSPs. (his area is called 7!oc-8. All the material is stored
at the doc-.
+#$ Catalo0/e Non Stoc, aterial
"aterials which are present in the /isher Catalogue hosted on the Sci:uest mar-et place but are
not stoc-ed at the C'S(O")% premises will be treated under the scenario 7Catalogue +on Stoc-8.
+#& Proc/reent an* Distrib/tion
/or ordering the items that are not stoc-ed in CO"PA+, warehousing comple0 a separate
Purchase Order will be raised by the researchers. Since CO"PA+, is the only supplier for
C'S(O")% this Purchase order will be raised on CO"PA+,. A sales order will be created in the

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CO"PA+, system for this purpose. Since the material is not co&ered in the list of Stoc-able items a
procurement re*uirement will be triggered. (his re*uirement will then be con&erted into a Purchase
Order and sent to the 3endor. A separate intimation will be sent to the freight forwarder to facilitate
the pic-ing of the goods from the 3endors place and deli&ering it to CO"PA+,. At goods receipt
the material will be housed in the doc-ing area of the warehouse. <oods will then be deli&ered to the
Scientist/researcher who generated the re*uirement. A proof of deli&ery will be established before
the $n&oice is sent to C'S(O")% for the material deli&ered.
Se&eral categories of materials are handled using this process. All materials such as Chemicals
<lassware )*uipments $nstruments and Consumables that are not stored as ready stoc-s will be
procured and distributed through the "odus operandi described in the subse*uent sections.
1# S!ecial Consi*erations
(he following will be considered in the system configuration1
SAP standard functionality will be used for all actions li-e creation of physical in&entory
document enter count %ecount 3alidate recounted *uantity and in&entory ad9ustments.
A smart form needs to be de&eloped to print in&entory count document.
(he system should be able to handle recount of a material or bin and enter the re
counted *uantity if warehouse controller is not satisfied with count result initially.
Once physical counted *uanity is entered in system and &alidated in&entory
ad9ustment functionality to change the physical count *uanity into actual in&entory
*uantity.
2# Sol/tion in SAP
CO"PA+,8s re*uirement for Physical $n&entory Process is being met by employing the SAP
standard processes of Physical $n&entory using SAP warehouse management system.
(he (ransaction list as deri&ed from SAP best = practices is gi&en below
o L$>1? Create in&entory document
o L$>2? Print $n&entory document
o L$11+? )nter Count :uantity
o L$12+? $nitiate recount

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o L$11+? )nter $n&entory Count
o L$2>? Clear $n&entory differences at 5" le&el
o L$21? Clear $n&entory differences at $" le&el
.
(he process flow in&ol&ed will impact the following modules in SAP1
5arehouse "anagement System1 5"
/inance 1 /$
2#" Enter!rise Str/ct/re Eleents
)nterprise Structure elements for this process include the following1
2#"#" .areho/se

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/ollowing 5arehouse will be impacted1
5arehouse !escription
1>>
CO"PA+, /eeder 5arehouse
2#$ Process -lo3 Ste!s
Physical in&entory process will be carried out periodically. (o initiate the process physical in&entory
document will be created in system. (his document will be created for indi&idual storage types and
bins.
1. Create physical in&entory document? (his document to be created by warehouse controller to
initiate physical in&entory count.
2. Print count sheet1 $n&entory document to be printed. (his will contain material number
description storage type storage bin description etc.
3. )nter $n&entory Count1 Once in&entory count is done for material counted *uantity will be entered
in the system.
2. $nitiate recount1 $f the de&iation between physical in&entory count and system stoc- is too high
the warehouse controller can decide to initiate re count for the physical in&entory document.
;. )nter $n&entory Count1 %ecounted *uantity will be entered in the system.
@. Clear in&entory at 5arehouse management le&el1 Once recounted *uantity is finalised the
difference *uantity is cleared at warehouse management le&el.
A. Clear $n&entory at $n&entory "anagement le&el1 After in&entory document is cleared at 5" le&el
Clearing at $" le&el is initiated. Once documents are cleared at $" le&el the &aluation of stoc- is
changed to the counted stoc- &alue.

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4# B/siness Process -lo3
4#" Creation of Physical Inventory Doc/ent
Physical in&entory process will be carried out in the warehouse. Continuous physical in&entory
process to be used for the same. 5arehouse controller to perform physical in&entory process by
selecting storage types and storage bins in a particular se*uence in warehouse. (he process will be
initiated by creating a physical in&entory document.
Storage types and storage bins inside storage types can be selected for physical in&entory. Once
the in&entory document is created no goods mo&ement will be allowed for that storage bin. All
putaway and pic-s will be bloc-ed for that storage bin.
4#$ Print o/t of Co/nt Sheet 5 Physical Inventory Doc/ent6
Physical in&entory document will be printed in warehouse. (his document will contain material
number description position in storage type bin. (he system stoc- *uantity for the material will not
be printed. (his is to a&oid manipulation of counted *uantity by warehouse cler-. (he count sheet
will be gi&en to the warehouse cler- to begin physical counting acti&ity.
4#&# Enter Inventory Co/nt
Once stoc- *uantity is counted for materials as entered in count sheet the warehouse personnel will
write counted *uantity in the count sheet. At the end of count for all materials as gi&en in count
sheet warehouse personnel will enter the counted *uantity in system. (he system will pro&ide
de&iation percentage from entered *uantity to the system *uantity.
4#(# Initiate Inventory reco/nt
$f the de&iation percentage is &ery high from system stoc- *uantity warehouse controller can ta-e
decision to recount the materials. Ce will create another in&entory document and print count sheet to
perform physical in&entory process once again.
4#+# Clear Inventory at 3areho/se ana0eent level

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Once physical in&entory is performed and counted *uantity entered in the system is &erified and
&alidated the counted *uanity will be the new system *uantity. (his will be done once the physical
in&entory document is cleared at warehouse le&el. (he difference *uantity between earlier system
*uantity and new *ty is stored at difference storage type in system EStorage type DDDF. (he stoc-
*uantity and &alue at $n&entory management le&el is still not changed.
4#1 Clear Inventory at Inventory ana0eent level
(he stoc- *uantity and &alue will be changed at in&entory management le&el after this step. Once
this step is performed the difference *ty E*ty in storage type DDDF is completely remo&ed from the
system and the stoc- at bin becomes the actual *uanity in the system. (he &alue of in&entory is also
changed based on the new in&entory *uantity.
7# 8a!s
+ot Applicable
"9# .or,aro/n* Sol/tions
+ot Applicable.
""# Chan0es to E'istin0 Processes
+one
"$# Re!ortin0 Re:/ireents

All standard reports
LG1A !ifferent list of open $n&entory
documents
LG1B !ifference Statistics per Storage

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(ype
LG2; $n&entory Status
LG3; !isplay Phy. $n&entory documents
LG3@ !isplay $n&entory history
L$1; )&aluation of :uant $n&entory
""6) Stoc- O&er&iew
"6;2 !isplay 5arehouse stoc- of
"aterials
"&# A/thori;ation Re:/ireents
Authori4ation re*uirements may &ary as per re*uirements.
"(# Mi0ration Re:/ireents
+ot Applicable
"+# C/stoi;ation Re:/ireent
Continuous in&entory will be acti&ated in respecti&e storage types
"1# Benefits
6eing based on the standard SAP functionality many benefits can be drawn1
o (he process draws strength from the SAP 6est practices which are accepted world o&er as a
reference.
o 'pto bin le&el of physical in&entory counting enables similarity between real warehouse and SAP
warehouse system.

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o All documents are lin-ed and updated real time to pro&ide accurate information about physical
in&entory status.
o $ntegrated modular functionalities pro&iding seamless flow of data and information across the
landscape.
o Stoc- information at bin le&el pro&ides complete accuracy of in&entory status.
o $t helps in the identification and determination of changes as and when re*uired for better
planning and monitoring of stoc-s and sales.
o Process #P$s can be monitored in near real time by the management which can ser&e as basis
for Strategy !esign and !eployment.
"2# Trainin0 Nee*s
(raining to -ey users and end users will be pro&ided on the following transactions1
Creation of Physical $n&entory document L$>1+LG1@
Print $n&entory !ocument = L$>2
)nter Count Sheet 1 L$11+
$nitiate %ecount 1 L$12+
Clear in&entory at 5"1 L$2>
Clear $n&entory at $"1 L$2>
"4# -ee*bac, -or

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