Day in the life of a Material Buyer – 6 -Managing Excess/Obsolete inventory

Purpose: The purpose of this blog post is to bring the real-life day-to-day scenarios of a material buyer based on my own domain experience as a material buyer. These blog posts are mainly for material buyers (end users), however, new MM consultants can also get benefited by knowing the buyer’s role better.

This is the sixth blog post of the series – Day in the  Life of a material buyer. Please go through the previous blog posts to understand other activities of the buyer.

High-level activities on managing Excess/ Obsolete inventory are as below.

–Review and take action on excess Inventory

–Review and take action on obsolete Inventory

–Validate excess and obsolete reports.

SAP tools and Tcodes

–Material Requirements Planning – MRP List (see Shortage)

    • MD06 – MRP List – Find PO Exceptions (Reschedule Out or Cancel for avoiding excess inventory).
    • Z*report – Purchase Order Exception List Report (Reschedule Out or Cancel).Display MRP exception list for a purchasing group. Filter by exception Messages 15 (Reschedule Out) or 20 (Cancel Process). In standard, you have to use MD06,7 to filter out these messages. They are not user-friendly, hence create your own report to read the POs only with exception message 10/20/15, etc from MD04, and for the same check BAPI_MATERIAL_STOCK_REQ_LIST or FM: MD_STOCK_REQUIREMENTS_LIST_API.

–Standard List & Reports

–Logistics Information System (LIS) Reports (You may customize the Tcodes for additional inputs or output)

      • MC50 – Analyze Dead Stock
      • MC46 – Analyze Slow-Moving Items
      • MCBV – Analyze: Lot Size, Safety Stock, Safety Stock Buffer, Stock at Receipt
      • MC47 – Excess Inventory Report

I will cover these Tcodes and new Fiori apps in detail in some other blog, for now just know that lot of transactions are available to carry out this task by buyers.

Your feedback would help me to keep going to more such blog posts in the future.