Utilize E-Driven KANBAN to resolve “SHIJI” External procurement

Solution overview

During the delivery of SAP KANBAN solution to the Japan automobile OEM and their suppliers who running KANBAN for the external procurement, you will facing one of common word call as “SHIJI” procurements looks like SAP Standard PO procurement, but that have almost same futures with KANBAN procurement such as perform procurement based on agreement and need issue period forecast and perform goods receive with KANBAN Items in same truck unloading and so on.

so, it always makes confusions for the consultant to select best SAP solution for fulfillment.

what is the client requirements 

In Japan automobile OEM and their Suppliers who running KANBAN for external procurement, it is not all of items using KANBAN for external procurement, but they also have another procurement type called as “SHIJI”, the “SHIJI” procurement also depends on the long term agreements before replenishment execution, and also need issue monthly forecast to the suppliers which totally same as with KANBAN procurement, but during delivery execution, there are no physical KANBAN Card issue to suppliers for replenishment, instead, they will issue a delivery slips or tag which can be attached to the cargo that contains procured items. after then the warehouse administer will perform goods receive against delivery slips and tag information.

Simply, if you did requirement analysis and adopt Standard PO procurement, then the forecast part would be a big challenge to achieve, because you will not have agreement to update delivery schedules to summarize period forecast and release, but you can fulfill output delivery slips and tags from PO and goods receive against PO.

on the other side, if you adopt KANBAN procurement for “SHIJI”, then All of forecast part is fit for requirements, but because there is no physical KANBAN issue to supplier during the replenishment, so the execution part became a big gap to fulfill requirement.

Delivered solution 

SAP have E-Driven KANBAN can perfectly meet the requirement for the client requirement which you don’t have physical KANBAN issue to supplier, but you can perform as KANBAN procurement process include period forecast process.

1. Create Schedule agreement same as KANBAN procurement

PSA%20as%20KANBAN%20Procurement

PSA as KANBAN Procurement

2. Forecast process from schedule agreement

FRC%20Release%20to%20Suppliers

FRC Release to Supplier

3 .Create E-Driven KANBAN for “SHIJI”

E-Driven%20KANBAN%20for%20Control%20Cycle

E-Driven KANBAN for Control Cycle

4. Issue summarized JIT Call for E-Driven KANBAN

Summarized%20JIT%20Call%20Creation

Summarized JIT Call Creation

5. Goods Receiving against summarized JIT Call or KANBAN ID

Goods%20Receive%20against%20Summarized%20JIT%20Call

Goods Receive against Summarized JIT Call

Conclusion 

Stands on client perspective the “SHIJI” procurement which has both of KANBAN and PO futures during the external procurement, SAP E-Driven KANBAN looks like perfect solution to fit that so far. 

welcome any of your comments and query. 

Regards,

LJ