Sales Scheduling Agreement with Consignment (4LZ)

Customer Consignment is a specific logistics business where the supplier maintains a stock of material at a customer’s location. Consignment goods are stored at the customer location but owned by your company. The customer isn’t obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can return consignment goods that aren’t required.

Consignment offers the partners several advantages. Customers store the consignment goods at their own warehouses. Customers can access the goods in the consignment warehouse at any time. They’re billed for the actual quantity taken when they’re removed from the warehouse.

Goods that aren’t required can be returned from the consignment stock to the central warehouse.

In some cases, goods are returned to the customer consignment stock after the consignment issue has already taken place.

This scope item uses scheduling agreements that can be run with or without an external service provider.

Key Process Steps Covered

• Fill up:
  • Create scheduling agreements for consignment
  • Monitor inbound forecast delivery schedule
  • Monitor material coverage
  • Order schedule lines due for delivery
  • Pick outbound delivery
  • Pack outbound deliveries
  • Post goods receipt

• Issue:
  • Create consignment issue order
  • Post goods issue
  • Create billing documents
• Pick-up:
  • Create consignment pick-up order with reference to scheduling agreement
  • Receive goods from ESP/customer
  • Post goods receipt
• Return:
  • Create consignment return order
  • Post goods receipt
  • Create billing documents

Benefits

• Save costs on inventory for consignor
• Restock as inventory sells – beneficial for both parties
• Save time for consignor
• Use the consignment stock to generate product exposure (especially new or unknown products) for their customers

Where is Sales Scheduling Agreement with Consignment(4LZ) being used?

This Scope item is used in the following way:

• As a core function of Order and Contract Management within Sales Scope Item Group

Process flow of Sales Scheduling Agreement with Consignment (4LZ)

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• Best Practices of SAP Analytics Cloud *2
• Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

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