3pl BBP MM 2003 Version 1.0

AS IS Document
3 PROJECT “QUEST”
[Implementation of SAP ERP ECC 6.0 by PRISM INFORMATICS LTD for HAYLEYS ADVANTIS]
Sign-off on Business Blue Print
Version – 1.0
Materials Management – Third Party Logistics (3PL)
Mr. Krishan Tennekoon Mr. Sreedharan Gopal

Mr. Tissa Fernando Mr. Jay Rana
MM Functional Head MM Consultants
Hayleys Advantis Prism Informatics
Mr. Arul Murugan

Mr. Maazud Marzook Project Manager
Project Manager Prism Informatics
Hayleys Advantis
ASIS Document – Materials Management Page 1 of 107

AS IS Document
Introduction: Description of the company.
Hayleys Advantis Limited – (ADV) is the holding company of the transportation interests of the Hayleys Group. Counting over 50 years of expertise in
transport and logistics, the Group today controls a truly international network offering comprehensive, Integrated end-to-end Logistics Solutions to clients;
from packing personal effects to involvement in national infrastructural projects to the global movement of cargo. In its service offering, Hayleys Advantis is
intent on going beyond the traditional borders of business to reach new horizons through innovation and excellence. The Group posted a Rs. 4.7 billion
turnover for the Financial Year of 2010-11.
Third Party Logistics
Warehousing and Distribution

We are a leader in 3PL services with modern multi user warehousing and distribution facilities in South Asia covering over 1.3 million sq. ft. of global
warehousing space in addition to managing third party facilities.
By focusing on People, Processes & Technology, we have defined the concept of “intelligent logistics” that would target quantum improvements in your
Logistics and Supply Chain Execution. Our logistics solutions would synchronize your supply chain for effective demand and supply co-ordination, integration
and execution.
Transportation and Haulage
We are specialists in transport and haulage operations. We undertake challenges in transportation including empty & laden containers and liquids in bulk,
with port documentation if required. Our fleet comprises of skeleton and flatbed type 20 and 40 foot trailers and heavy lift low-bed trailers. We perform
seamless operations and offer our clients unmatched convenience and choice.
Projects & Inland Logistics
Large, complex infrastructure programs are filled with unique challenges. Hayleys Advantis, through its Projects and Inland Logistics Division, is able to

AS IS Document
offer a complete end to end solution to guide these projects from end to end of the supply chain.
We house expertise and experience that has amassed through 50 years of operations and our team can boast of successful achievements in a notable
number of projects in the highways and road development sector, bridges and causeways sector, sea and air port sector, power and energy sector and
projects related to the Water Board.
A global service provider with over a thousand employees, Hayleys Advantis has the necessary skills and expertise to offer solutions to virtually any kind of
project logistics, customizing its offering to meet each client’s needs.
Contract Warehouse & Production Line Logistics Management

Logiwiz strength of providing warehouse management services goes beyond the 4 walls of the warehouse with Logiwiz providing contract warehouse
management & manufacturing logistics services to clients from outside locations & client owned facilities. Presently Logiwiz provides manufacturing logistics
services to Chevron Lubricants at their plant at Kolonnawa and for Nestle Lanka at their factory at Pannala, and has also deployed people, processes &
systems to manage warehousing & distribution activities for Unilever Sri Lanka from their factory premises at Grand Pass & Sapugaskanda.
Logistics Support & Value Added Services

Moving beyond pure warehouse management and transport logistics, Logiwiz have today established itself as an ‘end to end integrator’ for logistics services
by providing value added services and logistics support services to its clients. The service scope covers services such as supplier coordination & material
call off functions, pre-retails services (packing, kitting, part assembly, product quality checking etc), site handling for specialized cargo (electronic
equipment, plant and machinery etc), export/ import coordination (customs operations & freight solutions) etc.

AS IS Document
Introduction of Business Blue-Print:
It may not be possible to decide the realization possibility of all Business requirements on the SAP ECC 6.0 system immediately and hence the following
legend is being followed for describing the statuses:
Status of To-Be Business

Status Description
Process
A-Possible Can be implemented on SAP ECC 6.0
B-Possible with workaround Can be implemented on SAP ECC 6.0 through indirect means
C-Possible with ABAP Can be implemented on SAP ECC 6.0 through ABAP/4 development
D-Possible with ABAP (But Can be implemented on SAP ECC 6.0 through ABAP/4 development but system performance may be
performance issue) effected
E-Not possible without Major

Cannot be implemented on SAP ECC 6.0 without major system modification
Modification
Possibility of implementation will be explored in the development environment. Cannot be confirmed at
F-Open for exploration
this stage
G-Not possible Cannot be implemented on SAP ECC 6.0
Cannot be implemented because it is not part of the scope defined in the “Software Services Agreement”
H-Not in Scope
between PRISM INFOMATICS LTD. and HAYLEYS ADVANTIS LTD.

AS IS Document
The To-Be business process realization is dependent on the following aspects:

 Scope of services described in the Software Services Agreement signed by HAYLEYS ADVANTIS LTD. and PRISM INFOMATICS LTD.
 Scope of functionality described in the Software Services Agreement mentioned above.
 Capabilities and Limitations of SAP ECC 6.0
 As-Is Business Knowledge Transfer from HAYLEYS ADVANTIS LTD. Project Team members
 Business Requirements defined by the HAYLEYS ADVANTIS LTD. Project Team members
 This Business Blue Print document is for the following Company codes:
Company
Code Description
1400 Logiwiz Limited
1401 Logiwiz NW (Pvt) Limited

AS IS Document
The To-Be business process realization is dependent on the following aspects:
 Scope of services described in the Software Services Agreement signed by HAYLEYS ADVANTIS. and PRISM INFORMATICS LTD.
 Scope of functionality described in the Software Services Agreement mentioned above.
 Capabilities and Limitations of SAP ECC 6.0
 As-Is Business Knowledge Transfer from HAYLEYS ADVANTIS. Project Team members
 Business Requirements defined by the HAYLEYS ADVANTIS. Project Team members
HAYLEYS ADVANTIS. Accepts that the decision to accept the ‘To-Be’ Business Processes is completely its own and not influenced by PRISM INFORMATICS
LTD. shall not be responsible for the business consequences on HAYLEYS ADVANTIS. after the realization and usage of the processes being suggested
here.
HAYLEYS ADVANTIS. Shall indemnify PRISM INFORMATICS LTD. from all responsibilities for any other business consequences during the framing of the To-
Be Business processes, or at any time during or after the realization / implementation of these processes on SAP ERP system or while using the system.
Module ID Module
1 Finance
2 Controlling
3 Sales & Distribution
4 Materials Management
5 Plant Maintenance
6 Document Management System

AS IS Document

AS IS Document
Text Legend
Contents
Colour of Text Significance
Page
Explanation of Terms and Instructions Numbers
# Topic
Start End
Explanation from HAYLEYS ADVANTIS.
Material / Services Range and Procurement
4.1
Types
Explanation from PRISM Informatics Ltd.
4.2 Enterprise Structure
Issues yet to be addressed by HAYLEYS ADVANTIS.
4.3 Material Types
4.4 Department Structure
4.5 Business Processes
4.6 Integration Points
4.7 Print Outputs
4.8 Reports
4.9 Users List

AS IS Document
4 Materials/Services Coverage & Different Types of Procurement:

Procurement of Material and Services vary between.
1. Services.
2. Supplies
3. Construction Repairs

AS IS Document
4.2 Enterprise Structure

Company Codes
Current New
Justification / Purpose of the Organizational Unit
Code Description Code Description
LWL Logiwiz Limited 1400 Logiwiz Limited

Pl refer FI BBP for justification
LNW Logiwiz NW Pvt Ltd 1401 Logiwiz NW Pvt Ltd
Plants
Current New
LWL – Kelaniya LWKP LWL – Kelaniya LWL – Kelaniya warehouse
LWL- Sapugaskanda LWSP LWL-Sapugaskanda LWL- Sapugaskanda warehouse
LWL-Nugape LWNP LWL-Nugape LWL-Nugape warehouse
LWL-CTC- Kandy (Client

Premises)
LWL-CTC – Colombo (CP) Customer premises are not plants in the Logiwiz organization
structure.
LWL-Unilever-Grandpass (CP)
LWL-Unilever- Horana (CP)
LWL- Biyagama LWBP LWL-Biyagama LWL- Biyagama warehouse

Customer premises are not plants in the Logiwiz organization
LWL- Unilever – Lindel
structure

AS IS Document
LWL-Thulhiriya LWTP LWL-Thulhiriya LWL-Thulhiriya warehouse
LWL- Ja-Ela LWJP LWL- Ja-Ela LWL- Ja-Ela warehouse

LWL-Pannala (CP)
structure
LNW- Kelaniya LNKP LWNW-Kelaniya LNW- Kelaniya warehouse
LNW-Thulhiriya LNTP LWNW-Thulhiriya LNW-Thulhiriya warehouse
LNW- Ja-Ela LNJP LWNW- Ja-Ela LNW- Ja-Ela warehouse
LNW-Avissavella (CP)
structure
LNW-Pannala (CP)
LWL MIT – Sedhawatta MTSW LWL MIT – Sedhawatta LWL MIT – Sedhawatta warehouse
LWL MIT- Seeduwa MTSU LWL MIT- Seeduwa LWL MIT- Seeduwa plant warehouse
LWL MIT - Wellampitiya1 MTWP LWL MIT - Wellampitiya1 LWL MIT - Wellampitiya1 plant warehouse
LWL MIT - Pethiyagoda MTPG LWL MIT - Pethiyagoda LWL MIT – Pethiyagoda warehouse
COMPANY CODE
It is the smallest Organizational unit for which can have an independent accounting department within external accounting. Legal entity
-It is having balance sheets, Profit & Loss accounting required by the law
-Represented by 4 digit alphanumeric key.
PLANT
Is an organizational logistic unit that structures the enterprise from the perspective of operational unit from where all the activities are been carried
out.
-It can be a branch office/ Central delivery ware house/ HQ/ Maintenance Plant.
-Represented by 4 digit alphanumeric key

AS IS Document
NOTE – STORAGE LOCATION

Is an Organizational unit that allows the differentiation of material stocks within the Plant.
-Inventory management on quantity basis is carried out at storage location level.
Storage Locations
Current New
LWL/LNW Kelaniya Admin. Record
1001 Admin. Record Room
Room
LWL/LNW Kelaniya Maintenance
1002 Maintenance Store Room
Store Room
Separate storage locations would be maintained for different
LWL MIT –Wellampitiya Packing
1003 Packing Material Stores material types / groups for easy identification.
Material Stores
1004 Scrap Storage Location
 Above mentioned Kelaniya Admin. Record Room and Kelaniya Maintenance Store Room are common locations used for both LWL and LNW
 At present LWL MIT – Wellampitiya Packing Material Stores is specific for MIT SBU.
NOTE – PURCHASE ORGANIZATION
Is an organizational level that negotiates conditions of purchase with Vendors for one or more plants.
-It is legally responsible for completing purchasing contracts
PURCHASING GROUPS
-Is the key for buyer or group of buyers responsible for certain specific purchasing activities

AS IS Document
Purchasing Organization
Current New
Central Purchasing 1000 Advantis Local purchasing org Centralised Purchasing for Advantis for local and import
Site Level Purchasing purchasing
(Site level Purchases are not Advantis Import purchasing
linked with Central purchasing) 2000
org
Purchase Group
Current New
Central Purchasing Unit (through
PAM Packing Material Procurement group for packing material
Head of Procurement)
Site Level Purchasing Unit

ENS Engineering Spares Procurement group for engineering spares
(through Cluster Head)
CON Consumables Procurement group for consumables
CAP Asset Procurement group for asset

AS IS Document

AS IS Document
4.3 Material/Service Types
As Is
No.
Material Type Assignm
Total Group1 Group2
ent Logic1 Logic2 Group 3 length Logic3
Length length length
(Ext /
Int)
Labour -
Pl refer 4.5.1.1 ( Material
(Skilled/Unskilled/Te
Master maintenance)
mp)
Transport-
(Registered/Temp.)
Spares
Fixed
Assets(Furniture/Equi
pment)
Warehouses (Fixed
Term/Temp)
Pest
Controlling(General
Pest Control/Termite
Control/Other)
Packing
Material(Bubble
wrap, Shrink wrap,
Gum tapes,
corrugated....etc...

AS IS Document
and other )
Promotional items
(Caps, T-shirts,
Ornaments...etc....
and other)
Safety Equipment &

Services (Shoes,
Mask,
Vest....etc...and
other)
Plant Repairs
Uniforms (T-shits,
bottoms, overhauls,
caps, ...etc...and
others
ICT Products &

Services (Computers,
Laptops, PABX
systems, phones,
mobile phones,
servers,
monitors ..etc...and
others)
Treated Wooden
Pallets (Temp, DC
racking....etc..and
other)
MHE’s (Forklifts,

AS IS Document
Hand Pallet trucks,

Powered Pallets
Trucks, Reach
trucks....etc...andoth
ers)
General Hardware
(paint, wood,
steel...etc..and
others)
Security
(Fixed,Temp)
Cleaning/Janitorial
and other (Tea
service, Fixed ,
Temp)
Stationary &
Consumables (office
stationary, toners,
cartridges...etc...and
others)
Note:
The above Material, Service types are applicable for all LWL and LNW UBU’s
SAP to Propose Best Practice

AS IS Document
4.4 Department Structure

(A) Supply Department (Purchase department)
Ans:
1. All Central purchase activities are managed / routed though Head of Procurement, Procurement is a function under Finance and reports to Financial
Controller under the company structure.
2. Site specific Purchases are made by site head, under guidance of the Cluster Head/SBU Head. Responsibility is with the Cluster Head/SBU Head.
(B) Inventory Department (Stores Department)
Ans: There is no central stores department. Items purchased are received and inventory is managed by the respective functions/department. We do not
keep inventories of items purchased except for Safety Shoes, T-shirts, Promotional Items, stationary items and packing material. All operational items
are requested as per the requirement. If min. Order commitments are above requested quantities they will kept in stock until there is a need in future.
MIT SBU will have their own inventory for Packing Material and other respective items on a need basis.

AS IS Document

AS IS Document
4.5 Business Processes
Process
Process Description
Id
4.5.1 Master Data Maintenance
4.5.1.1 Material Master Maintenance
4.5.1.2 Service Master Maintenance
4.5.1.3 Categories of Vendor Master
4.5.1.4 Purchasing Info Records
4.5.1.5 Source List
4.5.1.6 Maintain Vendor Evaluation Criteria
Maintenance of Conditions for Procuring
4.5.1.7
Materials/Services
4.5.1.7.1 Prices
4.5.1.7.2 Discounts
4.5.1.7.3 Transportation Cost
4.5.1.7.4 Tax Code
4.5.1.7.5 Import Conditions (If applicable)
4.5.1.7.6 Local Conditions
4.5.1.7.7 Payment Terms
4.5.1.7.8 Inco Terms (Delivery Terms)
4.5.1.7.9 Unit Of Measurement
4.5.2 Materials Requirement Planning

4.5.3 Procurement Process
4.5.3.1 Purchase Requisition
4.5.3.2 Approval of Purchase Requisition

AS IS Document
4.5.3.3 Request for Quotation

4.5.3.4 Approval of Request for Quotation
4.5.3.5 Quotation
4.5.3.6 Purchase Order Creation
4.5.3.7 Purchase Order Approval
4.5.4 Goods Receipt/Transfer Posting
4.5.4.1 Goods Receipt of Incoming Materials
4.5.4.2 Goods Transfer from one Plant to another Plant
4.5.4.3 Goods Receipt(Service Entry Sheet) against Service Orders
4.5.4.4 Goods Transfer / Returned back to vendor

Goods (Material)Receipt / Services Procured Without
4.5.4.5
Purchase Order
4.5.5 Goods Issue
4.5.5.1 Goods Issue – Material
4.5.5.2 Goods Issue – Consumables
4.5.5.3 Goods Issue - Capital Items
4.5.6 Scrap Handling
4.5.7 Logistics Invoice Verification
4.5.7.1 Entry of Vendor’s Invoice
4.5.8 Physical Inventory Verification
4.5.9 Business process
4.5.9.1 Procure-to-Pay
4.5.9.2 Import Purchase Process

AS IS Document
4.5.9.3 Business Process - Asset Purchase

AS IS Document
4.5.1 Master Data Maintenance
AS-IS Business Process Suggested Business Process
Material master data- Logic and approving authority SAP ERP 6.0 provides functionality for maintaining the following master data:
Ans: All materials are requested as per the description sent by the requesting
1. Materials
department. Material code clarification is not available at present.
2. Services
3. Vendors
Vendor master data- Logic and approving authority 4. Purchasing Info Records
1. Explain Present Process in-detail with process flow charts /
relevant formats / policies & procedures, if any.
Ans: 1.) N/A at present as there is No system. Supplier registrations are
completed for Labour & Transporters through annual contracts.
2.) Vendor master data is entered manually on to an Excel sheet as and
when the requirement arises,
3.) Depending on the relevant data requested the company and
submitted by the vendor, the approving of same is made by Head of
Procurement.
(Ex. Business registration, EPF/ETF registration, workman’s compensation
insurance, National ID copy, VAT/NBT/S-VAT registration certificate copies,
Company profile, sample test reports, credit terms and any relevant
documents depending on the requirement under each vendor category of
Services, Suppliers, Construction and repairs).
4.) At present vendor details are being recorded in Excel under each
category (process to be completed for all categories).

AS IS Document
2. Limitations in the present process

Ans: 1.) No system to capture/retrieve all vendor data at present.
3. Proposed requirements (Process/Formats/Others)

Ans: 1.) on successful completion of the selection criteria for vendors (under
each vendor category), the system should capture all relevant vendor master
details and should be able to retrieve same.

AS IS Document
4.5.1.1 Material Master Maintenance

Categories of material (material group)
Material Type
1. Explain Present Process in-detail with process flow charts / Materials with the same basic attributes are grouped together and assigned to
relevant formats / policies & procedures, if any. a material type.
Ans: 1.) Materials are categorised as follows,
This allows managing different materials in a uniform manner in
accordance with your company's requirements.
 Stationary & Consumables
SAP ERP 6.0 Standard Material types can be used for all the materials. For
 Material Handling Equipment (MHE’s) example
 Spare Parts
1. Packing Materials
 Fixed Assets (Furniture & equipment, items to be capitalised) 2. Engineering & Spares
 Treated Wooden Pallet Suppliers 3. Consumables and
 ICT Products (Information, Communication & Technology) 4. Service
 Uniforms (T-shirts, Caps...)

 Packing Material (Bubble wrap, Gum tapes, corrugated ) The material type also decides –
 General Hardware
•Whether the material number can be assigned internally or externally
 Promotional Products

AS IS Document
 Safety Equipment •Which screens appear and in what sequence which departmental data you
may need to enter.
Ans: As there is no system, materials are recorded under description sent by Material Master
the requesting department or commonly used name Every Item number is unique in SAP which can be up to 18 characters in length.
Material description will be maximum 40 characters in length and additional
material description can be incorporated in material text.
Ans :
Material master consist of following views :
 Material clarification should cover all purchase products
Basic Data :
 SAP to propose best practice.
Item Number -18 Digits
Item description -40 characters
Base unit of measure
Material group
Old material number – for searching the material
Sales Data :
Sales organisation
Distribution channel
Division
Sales unit of measure
Tax classification
Purchasing :
Order unit of measure
Purchasing group
Batch management

AS IS Document
GR processing time ,
Purchase Order text :

Where we can maintain long text of material.
General Plant data/Storage :

Plant
Storage location
shelf life
Accounting :
Valuation class
Price control – standard or moving average
Price unit.
Costing :
Profit centre,
Do not cost
Overhead groups
Material group :
Key that you use to group together several materials or services with the same
attributes, and to assign them to a particular material group.
Material groups are maintained in order to meet the analysis & reporting
requirements as well for searching material master records.
Material will be grouped according to their characteristics maintained and 4 digit

AS IS Document
codes will be provided as required.
For Eg:-
Material Type – Consumables can be grouped as
1. Stationary
2. Promotional Materials
3. Uniforms ETC.
Services can be grouped together as
1. Storage
2. Transport
3. Labour.
Procedural Understanding in SAP :
a) Searching of material will be as per standard SAP practice. Unique material

code will be there for each material.
b) System will not automatically remove / disable non transaction material after
certain period. This will be done by manually.
We can block material for transaction by sap standard functionality of material
master basic data1 x-Plant material status manually.
c) Systematic Item code will be generated as per standard functionality.
e) SAP is user friendly system for viewing / searching of item in material
master.
Gaps: A (NO GAP)

AS IS Document
TO-BE Material type and Number Ranges:
Material Type SAP Material Type

Ext / Int From To Max. Length
Packing Materials VERP Internal 10000000 19999999 18

Engg. Material/ Spare
ERSA Internal 20000000 29999999 18
Parts
Consumables LAN Internal 30000000 39999999 18
Service DIEN Internal 40000000 44999999 18

AS IS Document

AS IS Document
4.5.1.2 Sub Process Scope: Service Master Maintenance
AS-IS Business Process(Different type of services need to mention) Suggested Business Process
Specify services for the contracts: Service masters shall be maintained for various Services with Description,
1. Explain Present Process in-detail with process flow charts / Category and Unit of Measure using the Master Data.
Following critical information shall be maintained in the service master record:
 Ans:- Services are categorised as follows,
 Labour Contractors 1.Service Number
 Transporters Maximum 18 digit unique identification to the service.
 Pest Controllers 2.Service Category

 Warehouse Suppliers Which describes the Broad Classification of the Service like,
1. Logistics
 Cleaning/ Janitorial Suppliers
2. Ware Housing
 Security Services And whether a service is an internal service
 Fire Fighting & Safety Equipment Services or a service to be procured externally, or services performed for third parties.
 Printing Servicers
3.Service Description
 Office Equipment Suppliers on Rent which describes the service in brief
 Electrical/ carpentry/ Paint / Plumbing Examples of Services for which Master records shall be created in LOGIWIZ &
 AC/Generator Services LOGIWIZ NW
 Steel & Stainless Steel Fabricators Sub service can be
1. Transportation by 1 ton Vehicle
 Catering / Canteen Services 2. Transportation by VAN etc.
 Ex. 1.) Labour – on successful completion of the supplier registration 40 character to maintain the description.
Additional description of the service activity can be maintained in the additional
annual agreements will be signed with Labour contractors.
text.
 Check list doc’s for registration are –
 ID Copy of owner/partners 1. Base Unit of measure
2. Conversion of Units
 Company Business registration 3. Valuation class
 EPF/ETF registration 4. Tax Indicator

AS IS Document
 Workman compensation insurance for the relevant period (annual)

 VAT, NBT, S-VAT registration
Gaps: A (NO GAP)
 Income tax registration details (for sole proprietors)
 2.) Transporters - on successful completion of the supplier registration
annual agreements will be signed with Transporters.

 Check list doc’s for registration are –
 As mentioned under the category of labour there will be relevant list of
documents to submit by transporters prior to registering signing
agreements with same.
 Registered Transporter details will be communicated to Transport Manager
and Operations at each site and they will liaise with them regarding site
requirements (Ex. No. of Lorry’s/Vehicles required for a specific site)

Ans:- As there is no system, Services are recorded under description sent by
the requesting department or commonly used name.

Ans:-
 Material clarification should cover all services procured

AS IS Document

AS IS Document

AS IS Document
4.5.1.3 Vendor Master
AS-IS Business Process Vendor Account group :

(Need to specify the categories of vendor Eg.-internal, external, Vendor account group has controlling functions. It is used to categorise the
foreign, local) vendors. Similar vendors in nature are grouped together.
Ans: 1.) Internal : Group Company (Advantis, Hayleys) Vendor number range will be internal and different for different vendor
2.) External : Foreign, Local Groups as per the requirement. The Number Ranges for all the vendor
Account groups will be different. Those are shown below with the interval
Above two categories can further divide in to L Service Providers, Suppliers, and range in the Vendor Account Groups.
Construction & Repairs.

Vendor master has the following account groups.
Ans: 1.) Service Providers Sr. Account Description No. No.
Labour Contractors No Group Range Range
Transporters From To.
Pest Controllers 1 ZLOC Hayleys-Local 100000 199999
Warehouse Suppliers Vendors
Cleaning/ Janitorial Suppliers ZIMP
2 Hayleys-Import 200000 299999
Security Services Vendors
Fire Fighting & Safety Equipment Services
3 ZSRF Hayleys- 300000 399999
Printing Servicers Service Vendor
Office Equipment Suppliers on Rent Foreign
Electrical/ carpentry/ Paint / Plumbing
4 ZSRL Hayleys- 400000 499999
AC/Generator Services Service Vendor
Steel & Stainless Steel Fabricators Local
Catering / Canteen Services 5 ZHAL Hayleys Inter- 500000 599999
Company

AS IS Document
2.) Supplies Vendor

Office Stationary 6 ZONE One Time 600000 699999
Material Handling equipment & Spare Parts Vendor
Treated Wooden Pallet Suppliers
7 ZGOV Government 700000 799999
Office Furniture & Equipment
Vendors
Computer Stationary & Accessories
Uniforms (T-shirts, Caps...) Number Ranges are indicative only
Packing Material (Bubble wrap, Gum tapes)
General Hardware Vendor master :
Vendor Master Data shall be maintained at the following levels:
3.) Construction Repairs General Data:
Civil Construction The general data includes such information as the
vendors address
Electrical Work
Search Term
Aluminium Fabrication & Glass work Telephone number
Steel fabrication Contact person
Language of communication
email address
2. Limitations in the present process Telephone No.
Ans: All present and past suppliers are not registered under above Mobile No.
Fax No.
categories. Labour and transport supplier details on record (Excel), others are
being recorded at present.
Company Code Data:
3. Proposed requirements (Process/Formats/Others) Reconciliation account
Ans: All suppliers / vendors to be categorized under the above clarification Withholding Tax
and to have a unique identification code including all relevant data.
Purchase Organisation Data:
Order Currency
Terms of payment
Inco terms
Schema group-The schema group mentioned in the vendor master is useful in
determination of pricing procedures.

AS IS Document
Gaps: A (NO GAP)

AS IS Document

AS IS Document
4.5.1.4 Purchase Info Records
AS-IS Business Process : Suggested Business Process

It’s basically Vendor – Material Combination. Purchasing Info records will be based on vendor – material details for various
At present there are no records types of procurement like standard, sub-contracting, pipeline, consignment etc.
Please specify item wise vendor selection with examples. These details shall be maintained for a Plant and Purchasing
Ans: Ex:1.) Service Providers Organization.
Tasma International Manpower Suppliers Pvt Ltd – Labour Contractor
Details like Prices & other conditions, under and over delivery tolerances, are
DMK Distributors & Transporters – Transporter stored in these records. The information in the latest purchasing info record for
Suren Cooke Agencies Co Pvt Ltd – Pest Controler a combination of vendor and material for that purchasing organization
and plant shall always be defaulted when creating a Purchase Order.
2.) Supplies Tolerance limit can be maintained in material master or Purchasing info records.
PIR Creation shall be done when a purchasing info record doesn’t exist already
for a vendor – material combination for a purchasing organization and plant.
Monara Steel – General Hardware
EDM Packaging – Packing material Manual Update can be done when there are changes in the values of
Ibrahim Jaferjee – Treated Wooden Pallet Suppliers the Purchasing Info Records. Automatic Updating /creation is also possible
at the time of creation of Quotation, Purchase Order for those records that
already exist.
3.) Construction & Repairs
Inco terms and Payment Terms will be Captured from the Vendor master data
Automatically while creating Info record.
K T Industries – Steel fabricators
Purchase info records will also generate automatic PO in case of cash purchase
Pathumka Construction - Civil Construction
wherein cash vendor and material combination would generate a PO after GR
of the material.
Business Requirement
Ans:
Authorization for creation of Vendor Master is controlled via transaction code
1.) To maintain a registered(frequent suppliers)/Qualifying supplier authorization.
list(suppliers who are eligible to supply at the time of registered suppliers are
unable to supply)
Agreements will be maintained in the system with validity period, through

AS IS Document
2.) To have a category of Temp. Suppliers to be entered for one-off which expiry dates could be tracked.
requirements – Purchases of smaller values or as per special requirement.
3.) Authority of new suppliers being entered in to the system to be made only GAP:A (NO GAP)
by Head of Procurement or Head of Finance.
4.) Triggering of an agreement expiry dates automatically from the

system to inform vendors.

AS IS Document
4.5.1.5 Source List (List of approved suppliers )

Provide list of approved suppliers:
1. Explain Present Process in-detail with process flow charts / Source list (List of vendors for a material) can be maintained in the system
relevant formats / policies & procedures, if any. with validity period. It may be made necessary to include possible vendors of a
Ans: material in the source list before the material can be ordered. Source list can
be used to block certain vendors of a material or service.
.
Other category vendor details are to be recorded on a Excel data sheet as
indicated above for the Labour contractors and Transporters. .
Ans: Supplier details are entered manually on to an Excel sheet. All categories
are not completed.
Ans:
 To maintain a registered, Qualifying and temporary supplier list

AS IS Document
GAP:A (NO GAP)
4.5.1.6 Maintain Vendor Evaluation Criteria
What is the vendor evaluation strategy explaining in brief provide Vendor Evaluation helps to select sources of supply and facilitate the continual
sample format: monitoring of existing supply relationships. It provides you with accurate
1. Explain Present Process in-detail with process flow charts / information on prices, and terms of payment and delivery. By evaluating
relevant formats / policies & procedures, if any. vendors, you can improve your enterprise's competitiveness.
Ans: New evaluation strategy to be developed for the quality affected areas as Vendor Evaluation is completely integrated with Materials Management. This
a starting point. means that information such as delivery dates, prices, and quantities can be
taken from purchase orders. Also details about goods receipt are accessed
 Labour contractors
from Inventory Management.
supply vs required on of heads
Scores and Criteria
labour turnover
SAP System offers a scoring range from 1 to 100 points, which is used to
documentation
measure the performance of your vendors on the basis of five main criteria.
services provided by the supervisor
You can determine and compare the performance of your vendors by reference
payment on time (workers & statutory dues) to their overall scores.
Records / Information The criteria are as below :
Contingency supply  Price
Quality of workers provided  Quality
etc....  Delivery

AS IS Document
 Transporters These criteria serve as a basis for evaluating vendors from whom you procure
quality of vehicles supplied materials.
+ on time delivery Vendor Evaluation System ensures that evaluation of vendors is objective,
since all vendors are assessed according to uniform criteria and the scores are
+ on time reporting
computed automatically. In this way, subjective impressions and judgments
+ submission of documents on time
can be largely eliminated.
+ etc...
To create a detailed evaluation, each main criterion can be divided into several
 Warehouse Suppliers sub criteria.
 Pest Controllers The standard system provides you with certain sub criteria, which suffice as a
 Pallet Suppliers basis for evaluation.
+ quality of product
+ on time delivery Analyses
+ Price The results of vendor evaluation are displayed in the form of analyses. For
+ etc... example, you can generate ranking lists of the best vendors according to their
overall scores or ranking lists for specific materials.
 Packing material Suppliers
The criteria for Logiwiz to evaluate the material vendors are-
+ quality of product
+ on time delivery  Price
+ Price  Delivery ( On time delivery and quantity reliability)
+ Product quality certification The criteria for evaluating the Logiwiz service vendors are
+ etc...  Quality of service
2. Limitations in the present process  Timeliness of service
Ans: Present processes to be corrected The material vendor evaluation will be fully automatic while the service vendor
3. Proposed requirements (Process/Formats/Others) evaluation will be semi automatic.
Ans: SAP to propose best practice.
Gaps: A (NO GAP)

.

AS IS Document
4.5.1.7 Sub-Process Scope: Maintenance of Conditions for Procuring Materials/Services
4.5.1.7.1 Prices
How you will arise gross price of material with different taxation & This component enables you to store pricing stipulations agreed with the
Bifurcation(Local/import material) vendor (such as applicable discounts or surcharges, or stipulations regarding
the payment of freight costs) in the system. You can enter these conditions in
quotations and info records. You also have the option of entering general
Ans: when requesting quotation we will request the tax breakdown to be
conditions at vendor level. The system then applies the conditions in
indicated separately.
determining the price in purchase orders (POs). You can enter further
conditions in the PO itself, Pricing conditions shall be maintained in the
purchasing info records or in the header or item level as applicable at the time
Ans: of PO creation.
 The supplier will indicate the applicable taxes and relevant conditions

AS IS Document
(exchange rate fluctuations). PO can be amended as per required changes (Including Taxes).
 For imports the final price cost will depend Relevant Taxes, Bank Charges,
Exchange rates, Port charges, Clearing charges and other charges Gaps: A (NO GAP)
applicable until the item is delivered to your site.

Ans: When invoicing some suppliers calculate NBT in two different ways. Which
will only be identified at the time of receiving the invoice.
Ans: Have an option to make changes on the PO if changes are to be made on
tax calculations as per supplier invoice.
4.5.1.7.2 Discounts

If any additional information then mention(Item/ overall) In
percentage/Amount: The discounts and surcharge shall be customized and the same can be
1. Explain Present Process in-detail with process flow charts / maintained at the time of preparing the purchasing document.
relevant formats / policies & procedures, if any. Discount conditions shall be created on basis of % and absolute basis.
Ans : Similarly surcharge condition shall be created applicable on % and absolute
amount basis.
 Discount offered will be indicated on the initial quotation
Generally Logiwiz discuss the Discounts already with the Vendor at the time of
 Some discounts may be offered after negotiations are being finalized
Quotation and the same Price can be used at the time of Purchase Orders.

AS IS Document
and a amended quote will be sent including the discount. The Condition type for discounts will be used as shown below:
1. Percentage Basis
 Some suppliers will offer a discount over the phone for the initial quote
2. Absolute basis
and the adjustment in price will be mentioned in the PO. The same
value tally with final Invoice Value.
 When urgent orders placed with initial quotation received, there
instances where the supplier has offered a discount at the time of
Invoicing which not indicated in PO.
 Discounts are received on % basis and absolute value.
2. Limitations in the present process Gaps: A (NO GAP)
Ans:
Ans:
 Have an option to make changes on the PO if changes are to be made
on tax calculations as per supplier invoice.
4.5.1.7.3 Transportation Cost

Transportation Cost are the cost while procuring the material
Explain in details about Transportation Cost for the material which is been The Planned cost are the cost which are known at the time of PO and it is
procured: included while creation of PO.
1. Explain Present Process in-detail with process flow charts / The other scenario where transport costs are not known at the time of PO will

AS IS Document
relevant formats / policies & procedures, if any. be handled as an unplanned delivery cost in Purchasing. This will be liable to
Ans: Transport cost will be included in the total invoice value or it will be the forwarder. The local cost will be included in the price of material.
mentioned as a separate cost. In case of Import Purchase, Freight cost is separately paid to the Forwarder.
2. Limitations in the present process This will be handled as the unplanned delivery cost in SAP and
Ans: The Freight conditions used will be:
3. Proposed requirements (Process/Formats/Others) Calculated on % Basis
Ans : Calculated on Value Basis
 If transport cost is not included in the invoice or it has been invoiced
separately to have the option to amend the PO accordingly
Gaps: A (NO GAP)
4.5.1.7.4 Tax Code
Suggested Business Process

AS-IS Business Process

AS IS Document
Specify different tax code with percentage: Tax code will be maintained in the system for various taxes, which will be
determined during Purchase Order Creation. The tax values are maintained as
percentages with the help of tax code.
Pl refer FI document 1.4.1.4 for detail.
Ans:
 2% NBT – Nation Building Tax (vendors calculate NBT in two ways…2%

or 2.04%) – (Non recoverable cost)
 12% VAT- Value Added Tax – (Recoverable cost)
 S-VAT – Suspended Value Added Tax
 If supplier is VAT registered, they have submit S-VAT invoices under
LNW.
Ans:- the method of calculation is no mentioned in the quotations sent by
vendors Gaps: A (NO GAP)
Ans:
 Options to indicate NBT on two different ways on the PO.
 Option to modify any Tax codes to suit country Tax policies.

AS IS Document
4.5.1.7.5 Import Conditions

Specify the imports duty structure in details with currency. with example: The Conditions required for import payments shall be maintained in the
system,
 Ans: Process will be the same as for local Purchases Cost associated with import procurement shall be maintained in the system as
conditions that will be used in the purchase order.
 Duty payable are as follows,

 VAT
 CESS
 NBT
 Duty
 PAL
 Other relevant payments


 Currency
 USD
 Euro
 Sterling pound
 Japanese Yen
 Singapore Dollar

AS IS Document
Cost (Gross price) Main Vendor

Freight % wise Main Vendor/Freight Forwarder
Freight Value Wise Main Vendor/Freight Forwarder
Ans:
Insurance Main Vendor/Insurance Company
 All transactions are recorded manually Other import Charging Main Vendor
3. Proposed requirements (Process/Formats/Others) Custom Import Duty
Ans: Surcharge
Social Responsibility Levy
 SAP to propose best practice
Cess Levy Department of Customs
 All relevant details to captured under the PO and system.
Import Cess
Nation Building Levy
Computer charges
Ports and Airports Development
Ports and Airports Department
Levy
Terminal Handling charges Freight Forwarder/Clearing Agent
Security Charges at Discharge Freight Forwarder/Clearing Agent
Delivery Order Charges Freight Forwarder/Clearing Agent
Cleaning charges-Container Freight Forwarder/Clearing Agent
SLPA Freight Forwarder/Clearing Agent
Terminal Charges Freight Forwarder/Clearing Agent
Weighment Charges Freight Forwarder/Clearing Agent
Customs OT Freight Forwarder/Clearing Agent
Customs Examination fees Freight Forwarder/Clearing Agent
Container Ex fees Freight Forwarder/Clearing Agent
The Planned costs shall be booked in the same Purchase Order for which the
procurement is to be done. In cases where the Material Forwarding party is
different from the vendor on whom the PO is raised, there can be more than
One Vendor (in the form of Partners) in the Purchase Order.
Gaps: A (NO GAP)

AS IS Document
4.5.1.7.6 Local Conditions

Specify the local pricing condition in details with currency. with example
The Separate document type will be created for the Local purchase of
1. Explain Present Process in-detail with process flow charts / Materials.
relevant formats / policies & procedures, if any. There will unique Pricing condition defined for the Local purchase of Materials.
Ans: The Basic Conditions which will be Used by the HAYLEYS ADVANTIS in the Local
Purchase order Document type are:
 Payment will be made in LKR (Rs.) Sri Lankan Rupees
 Cash, Cheque, Bank Guarantees
Liable to the
 Payment of Taxes to suppliers is calculated as follows,
Condition Conditions Partners
 Sub total (excluding taxes) – Rs.1000.00
PB00/PBXX Cost (Gross price) Main Vendor
 2% NBT - Rs. 20.00
FR1 Freight % wise Main Vendor
 Sub total (including NBT) - Rs. 1020.00
FR2 Freight Value Wise Main Vendor
 12% NBT - Rs. 122.40
Other Charges Main Vendor
 Total Payable - Rs. 1142.40

These conditions will be used for purchase from local vendors for consumables,
 Some suppliers will calculate NBT in two ways.
packing material, spares, Tools and services.
 Charging of Taxes will be mentioned in their quotation. Some will only
charge VAT or there will be suppliers who will not charge taxes at all.
Gaps: A (NO GAP)

AS IS Document
 Limitations in the present process

Ans:
Ans:
 All relevant areas to be captured on the system
 SAP to propose best practice
4.5.1.7.7 Payment Terms

Payment Terms are for the Vendor:- Required payment terms will be maintained in the system.
Eg:- Credit Period for the Vendor S. Payment Terms
Payment Terms Description
No Code
1. Explain Present Process in-detail with process flow charts / 1 Due in 7 Days
relevant formats / policies & procedures, if any. 2 Due in 10 Days
 At the time of registering the supplier initial credit periods will be 3 Due in 14 Days
decided. 5 Due in 21 Days
 Credit periods may vary from supplier to supplier within the same 6 Due in 30 Days
category. 7 Due in 45 Days
 Starting from two weeks credit period it may be negotiated up to 90 8 Due in 60 Days
days (three months)
9 Due in 90 Days
10 Due in 120 Days
Ans: Present payment methods (advance payments to be informed)
11 Cash on Delivery
12 Payment in Advance
Ans:
13 20% Advance

AS IS Document
3. Proposed requirements (Process/Formats/Others) 14 40% Advance

Ans:
 Option to enter different credit period starting from 7 days (1 week).
 Credit period slabs Gaps: A (NO GAP)
 7 days credit
 14 days
 30 days
 45 days
 60 days
 75 days
 90 days
4.5.1.7.8 Inco Terms
Inco terms are defaulted from the vendor master or from the contract when a
1. Explain Present Process in-detail with process flow charts / source of supply is assigned to a purchase order. You can overwrite the
relevant formats / policies & procedures, if any. defaulted values manually.
Ans :
S. No Inco term Description
1 CIF COST, INSURANCE AND FREIGHT
 EXW – Ex works
2 FOB FREE ON BOARD
 CFR – Cost & freight
3 CFR COST AND FREIGHT
 FOB – Free on Board
4 EXW EX WORKS
 CIF – Cost, Insurance and Freight
5 FCA FREE CARRIER

AS IS Document
 DDU- Delivered Duty Unpaid

 DDP – Delivered Duty Paid
Ans:
 Very few import requirements
Ans:
 Ability to use all 11 Inco-terms defined in the Inco-terms 2010
including Inco-terms mentioned above.
 SAP to propose best Practice
4.5.1.7.9 Unit Of Measurement
1. Explain Present Process in-detail with process flow charts / You can define several different units of measure (stock keeping units) for each
relevant formats / policies & procedures, if any. material that are all taken into consideration.
Ans :
 Labour Base Unit of Measure
+ No. Of Heads
Quantities of warehouse materials (quants) are counted using the base unit of
+ Man-hours measure (UoM). Quantities in alternative units of measure are always converted

AS IS Document
+ One-off payments (to complete a specific job)

+ Piece rate to the base unit of measure for calculation purposes.
 Transport
Stock keeping Unit
+ Rate per KM
+ Pallet rate (fixed location/distance) The stockkeeping unit is synonymous with the base unit of measure. In the SAP
+ Pallet rate km System, the term "base unit of measure" is more commonly used.
+ Rate per KM (with min. commitment, ex.100 kms) + (additional rate
Unit of Issue
per KM after 100km)
+ Rate per vehicle category for a particular distance (Rs.1000/-for a 1
The unit of issue (UoI) is a unit of measure generally used in Inventory
Ton lorry for 0-50 kms) Management for processing goods receipts and goods issues.
+Handling Rate per weight range
+ Handling Rate per weight per distance
+ Rate per vehicle type
As per requirement, you can define the UOM in the system.
+ Trip Rates per vehicle type
+ Per trip transfer rate at a location
+
 General
+Rate per piece (Nos, Kg, Lt, m, Yard )
+Total job rates (Rs.)
+ Sq.ft.
 Some of the charge codes

AS IS Document
Ans:
Ans: All above mentioned units of measurements are to be included and SAP to Though various services could be maintained under different categories,
propose best practice. maintaining different rates with multiple slabs as indicated in the attached
sheet cannot be catered via Standard SAP.
Salary for personnel – GAPS-H (Cannot be implemented with present

modules scope)
Transport rates -GAPS-F (Open for exploration)
4.5.2 MRP (Materials Requirement Planning)

Specify the details process of MRP with example.

AS IS Document
For Spares, packaging goods, tools and consumables reorder point will be
extensively used. In such as case a minimum stock level is maintained after
which the material is considered for planning. The ordering quantity is
considered on the basis of type of lot sizing procedure is used. For majority of
Ans:
Imported raw materials fixed lot or minimum order quantity is used.
 Grouping of requirements together is done manually
Result:
Ans: Unavailability of a proper system
After the planning run, the Material controller can check and edit the system
3. Proposed requirements (Process/Formats/Others) generated procurement proposals. Various evaluations are supported by the
Ans: SAP to propose best practice system.
Gaps: A (NO GAP)
4.5.3 Procurement Process

AS IS Document

Specify the business whole process of procurement starting from
Purchase Requisition to payment: External procurement in the MM System centers on a general cycle of activities.
Process Flow
The typical procurement cycle for a service or material consists of the following
phases:
Ans: See attached document.
• Determination of Requirements
Materials requirements are identified by the Inventory departments. You can
enter purchase requisitions yourself or It can be generated automatically by the
materials planning and control system explained under MRP heading.
2. Limitations in the present process • Source Determination

The Purchasing component helps you identify potential sources of supply based
Ans: There are variations against the activities are carried out against work
on past orders and existing longer-term purchase agreements. This speeds the
instructions set out in the attached Procurement manual.
process of creating requests for quotation (RFQs), which can be sent to
3. Proposed requirements (Process/Formats/Others) vendors.
Ans: SAP to communicate best practice.
• Vendor Selection and Comparison of Quotations
The system is capable of simulating pricing scenarios, allowing you to compare
a number of different quotations.
• Purchase Order Processing

The Purchasing system adopts information from the requisition and the
quotation to help you create a purchase order. As with purchase requisitions,
you can generate Purchase orders yourself or have the system generate them
automatically.
• Goods Receipt and Inventory Management

Inventory Department can confirm the receipt of goods simply by entering the
PO number. By specifying permissible tolerances, buyers can limit over- and

AS IS Document
under deliveries of ordered goods.
• Quality Inspection
Once the Goods Receipt is done and the materials for which quality Inspection
is required, the quality department will take the samples from the Goods
Logiwiz have received from external Vendors. In SAP Inspection lot will be
created automatically and while doing the Goods receipt and the Goods will be
moved to the Quality Inspection Stock. Once the Quality department will take
the usage decision on the Inspection lot and finally the stock will be moved to
Unrestricted Use Stock (Own Stock) for further use of materials.
In the absence of the Quality control module system provide features that are
manual to move the stocks in and out of the quality stock.
• Invoice Verification
The system supports the checking and matching of invoices. The accounts
payable clerk is notified of quantity and price variances because the system has
access to PO and goods receipt data. This speeds the process of auditing and
clearing invoices for payment.
• Procurement for Stock Versus Procurement for Direct Consumption

In the MM System, you procure either for stock or for direct consumption. You
can determine the purpose for which ordered materials are being procured in
the purchase order, for example. This section describes the differences between
procuring for stock and procuring for direct consumption in the MM System.
• Procurement for Stock

A stock material is a material that is kept in stock. Such materials are placed in
storage following a goods receipt. When goods are received by or issued from
stores or the warehouse, the stock on hand is increased or reduced by the
amount of the quantity received or issued.
When you order a material for stock, the system does not require an account
assignment. This is because the posting to the appropriate stock and

AS IS Document
consumption accounts occurs automatically after each goods movement (for

example, after a material is received by the stores or issued from stores).
Furthermore, the value and the quantity of the stocked material are updated in
the material master record.
To order a material for stock, the material must have a master record.
• Procurement for Direct Consumption

When you procure for direct consumption, you specify the consumption purpose
by entering an account assignment (for example, a cost centre) On goods
receipt, the material or service counts as having been consumed.
If a material is procured for direct consumption, the consumption accounts in
Financial Accounting are posted when the goods receipt is entered. The total
quantity and value of existing stocks of the material are not affected.
• Material Account Assignment

For each item of a purchasing document, you specify whether procurement is
for stock or for direct consumption. In a purchasing document, you can enter
items with or without account assignments.
If you order stock materials, the ordered material must have a material master
record. If you order Capital items, the ordered material may or may not have a
material master record.
Account assignments are possible for the following purchasing documents:
• Purchase requisitions
• Purchase orders
• Outline agreements
The Procurement process has various stages like Purchase Requisition, Request
for Quotation, Quotation, Purchase Order, Contract, Goods Receipt and Invoice
Verification.
Purchase requisition can be created for a given plant storage location, purchase
organization, material code and delivery date.
Request for Quotation can be created by giving the material code, Plant,

AS IS Document
Storage location, purchase organization, quotation deadline and requirement

date. Vendor prices can be maintained and price comparison can be made.
Gaps: A (NO GAP)

AS IS Document

AS IS Document
4.5.3.1 Sub-Process Scope: Purchase Requisition
1. Explain Present Process in-detail with process flow charts / The Purchase requisition will be raised in Logiwiz from the following
relevant formats / policies & procedures, if any. departments:
Ans: See attached document. 1. Purchase Requisition from Inventory Department
2. Purchase Requisition from other user Departments
Then after getting the Purchase Requisition, procurement department will

convert the same to the Purchase Order as per the requirement.
2. Limitations in the present process Important data in Purchase request:

Ans: Header data:
3. Proposed requirements (Process/Formats/Others) Header Text
Ans: SAP to communicate best practice. Item Overview
 Material / Service No.
 Quantity
 Requesting Plant
Item Detail
More details on the material
Gaps: A (NO GAP)

AS IS Document
4.5.3.2 Sub-Process Scope: Approval of Purchase Requisition
The Approval will be applicable for the packing / engineering materials based on
1. Explain Present Process in-detail with process flow charts / the type of material and the Value. Here, the Purchasing Groups will be
relevant formats / policies & procedures, if any. maintained as material types for the approval Process.
The Approval Process for purchase requisition will be at Item Level.
Ans:- See attached document
The various levels identified for each document will be controlled by
authorizations.
Packaging Materials:
The approval Process for Packaging material will be incorporated in SAP system
based on the type of materials for that the Purchasing Groups will be created.
 Procurement of goods and services are also made against budgets made The Levels of Approval for the Purchase Requisition of these materials in SAP
of different operations (goods and services budgeted under clients cost System will be as shown below:
model) these are not Capex purchases. These are budgeted under The approval Process could be 2 Level approvals as decided later.
operational expense budgets.
2. Limitations in the present process Consumables:
The approval process of Purchase requisition for Consumables
Ans:
The approval process should be incorporated by the Purchasing groups i.e. the
3. Proposed requirements (Process/Formats/Others) type of materials
Engineering Spares:
The approval Process could be 2 Level approvals as decided later.
Assets:
Purchase requisition is created by the procurement head and Approved by the

AS IS Document
head of department.
IT Goods:
User creates the Purchase requirement and the Dept. Head approves the
purchase requisition
Services:
Operational team creates the Purchase requirement and the Admin. Head
approves the purchase requisition
Gaps: A (NO GAP)

AS IS Document
4.5.3.3 Sub-Process Scope: Request for Quotation

RFP/RFQ process explain those process in details provide sample format
A request for quotation (RFQ) is an invitation extended to a vendor by a
1. Explain Present Process in-detail with process flow charts / purchasing organization to submit a quotation (bid) for the supply of materials
relevant formats / policies & procedures, if any. or performance of services. An RFQ consists of the RFQ header and the items.
RFQ can be referenced from the purchase requisition.
Ans: See attached document
RFQ header
Contains general information on the RFQ, such as the vendor’s address
Items Contain the total quantities and delivery dates for the materials or
services specified in the RFQ.
You use this component if you wish to manage and compare requests for
quotation (RFQs) issued to vendors and the quotations submitted by the latter
2. Limitations in the present process in response to them.
Ans: Taking Print out manually and faxing them to suppliers The tracking number will be used in each RFQ which will be required in the
RFQ’s to compare the quotations.
The number range for the document will be internal and as shown below
Ans: To e-mail/fax directly through the System.
SAP to communicate best practice. S. No Document Descriptio No. Range No. Range

AS IS Document
Type n From To
1 AN RFQ
The RFQ’s created in the SAP system can be downloaded and send via Email /
Fax
Gaps: A (NO GAP)
4.5.3.4 Sub-Process Scope: Approval of Request for Quotation
Specify the RFQ/ RFP Authorization process RFQ approval process will be of 2 levels where in the RFQ will be created by the
Purchase officer and then approved by the Head of Procurement

Gaps: A (NO GAP)
Ans: See attached document. Approval from Head of Procurement.
( Embed object not applicable here)

AS IS Document
Ans:
4.5.3.5 Sub-Process Scope: Quotation
Specify the Quotation Acquiring process : A quotation is an offer by a vendor to a purchasing organization regarding the
supply of materials or performance of services subject to specified conditions.
The RFQ and the quotation form is a single document. Prices and conditions
quoted by vendors are entered in the original RFQ. If you have issued an RFQ to
several vendors, you can have the system determine the most favorable
Ans: Quotations will be requested by procurement from Registered Suppliers,
quotation submitted and automatically generate letters of rejection to the
Qualifying Suppliers or Temporary Suppliers/ new Suppliers depending on the
unsuccessful bidders. You can also store the prices and terms of delivery from
requirement / request (purchase request) received.
certain quotations in an info record for future accessing.
A quotation is legally binding on the vendor for a certain period. The quotation is

AS IS Document
Quotations will be requested from suppliers using the attached format the vendor’s response to a request for quotation issued by a purchasing
communicated via Fax, E-mail and telephone. organization.
A quotation consists of items in which the total quantity and delivery date of an
offered material or service are specified. An item of a quotation may contain a
delivery schedule made up of a number of schedule lines in which the total
quantity is broken down into smaller quantities to be delivered on the specified
dates over a certain period.
An item of the procurement type External service contains a set of service
2. Limitations in the present process specifications. The latter can be hierarchically structured. The summary view of
Ans: Some suppliers do not have E-mail or Fax facilities and the requirement is such a hierarchical structure is referred to as an outline. The outline comprises a
communicated over the phone. number of levels, each representing a level of the service hierarchy. The
quantities of the quotation are set out in service lines, representing individual
jobs or activities
You can compare the prices from all quotations received as a result of a
Ans: SAP to propose best practice competitive bidding process using the price comparison list. The comparison list
ranks the quotations by item from lowest to highest price.
Prerequisites
Before you generate the price comparison list, you need to consider the
following:
If possible, each quotation should have pricing data for the same item. Only
then is the correct interpretation of the mean and total values possible.
If quotations 1 and 2 have pricing data for item 1, but quotation 3 only has price
information for item 2, then the system does not have enough information to
accurately compare the prices of all three quotations.
If a quotation is submitted in a foreign currency, the price is automatically
translated into the currency of the company code, which is determined by your
purchasing organization.
You should therefore make certain that up-to-date exchange rates are defined in
your system.
Mean/minimum value quotation
The price comparison list can also display a quotation reflecting the average or

AS IS Document
minimum value of all quotations. Select either the Mean or Minimum value
quotation field to see the quotation.
Price Computations Select the appropriate field to specify which of the following
should be taken into account in determining the comparison price:
– Cash discount
– Delivery costs
– Effective price
The Quotations are not mandatory for any Procurement Cycle. This can be used
whenever required by Logiwiz according to the requirements.
Gaps: A (NO GAP)
4.5.3.6 Sub-Process Scope: Purchase Order Creation

Purchase order against the one indent/multiple:
How will you arrive the purchase order value and explain in details A purchase order is a formal request or instruction from a purchasing
deliveries and payments terms: organization to a vendor or a plant to supply or provide a certain quantity of
goods or services at or by a certain point in time.

AS IS Document
1. Explain Present Process in-detail with process flow charts / A purchase order (PO) consists of a document header and a number of items.
relevant formats / policies & procedures, if any. The information shown in the header relates to the entire PO. For example, the
terms of payment and the delivery terms are defined in the header.
Ans: See attached document.
A procurement type is defined for each of the document items. The following
procurement types exist:
• Local
• Import
• External Service
• Stock transfer and intercompany transfer
2. Limitations in the present process Delivery of the total quantity of material (or performance of the total volume of
Ans: services) specified in a purchase order item can be spread over a certain period
in a delivery schedule, consisting of lines indicating the individual quantities with
their corresponding planned delivery dates.
Ans: SAP to communicate best practice. An item of the procurement type "external service" contains a set of service
specifications. The order quantities are set out in service lines, representing
individual jobs or activities. Value limits are specified instead of service lines for
services or work that initially cannot be specified precisely.
Conditions
Conditions can apply at various levels:
• To the entire purchase order
• At item level, to the material to be supplied or to the set of service
specifications in the case of services
Account Assignment
Costs can be apportioned among various Controlling objects via the account
assignment.
PO History
The transactions following on from a purchase order are documented in the PO
history on an item-specific basis.
Partner Roles
Instead of the vendor as the order recipient, other business partners can appear
in various partner roles (e.g. goods supplier or invoicing party).

AS IS Document
Plant
In the purchase order, each item is defined for a certain plant. Each plant
belongs to a company code, to which the vendor’s (creditor’s) invoice is directed.
Texts
You can enter text in a purchase order directly or change texts that are
suggested by the system. There are two kinds of text:
• Header text: applies to the entire document
• Item text: applies only to the relevant item
Types of Purchase Orders

Purchase Order Types for Logiwiz (HAYLEYS ADVANTIS) will be created as below
• Local PO
• Imports PO
• Services Order
• Assets PO
• Stock Transfer Order (Intra-Company)
• Stock Transfer Order (Inter-Company )
• Return Purchase Order
Local products PO
This Document type covers all the domestic Purchase of Packing, Engineering,
Consumables and stationary Items.
Import products PO
This Document type covers all the Import Purchase of Raw, Packing and
Engineering Materials.
Services Order
This Document type will cover all type of External Service Procurement.
Assets PO
Assets Purchase order Document type will cover all the Purchase of Capex
Items.
Stock Transfer Order (Intra-Company)

AS IS Document
Stock Transfer Order (Inter-Company) will be used in case of stock transfer from
one plant to another.
Stock Transfer Order (Inter-Company Code)
Stock Transfer Order (Intra-Company Code) will be used in case of stock
transfer from one Company code to another.
Return Purchase order
Return purchase order will be used for returning the rejected material to vendor.
S. Document
No Type Description No. Range From No. Range To
1 Local PO
2 Import PO
3 Services Order
4 Assets PO
Stock Transfer Order
5 (Inter-Company)
Stock Transfer Order
(Intra-Company
6 Code)
Return Purchase
7 order
Gaps: A (NO GAP)

AS IS Document
4.5.3.7 Sub-Process Scope: Purchase Order Approval

Provide in details of purchase approval process:
Release Strategy shall be incorporated for release of Purchase Orders as per
1. Explain Present Process in-detail with process flow charts / type of material/ service and the value of purchase. The Approval will be
relevant formats / policies & procedures, if any. applicable for the Packing / Engineering materials based on the type of material
and the Value.
Ans: on receipt of approval to proceed with relevant purchase, PO’s are
For the approval process Purchasing Groups are the type of materials.
placed by the Head of Procurement.
Approval of Purchase Order will be made in SAP system. The Approval Process
 There are different authority levels to approve purchases.
will happen at the header level for Purchase orders.
The various levels identified for each document will be controlled by
authorizations.
Engineering spares/Packaging Materials/Consumable

2. Limitations in the present process The Purchasing Groups will be maintained as Consumables, Spares and Capital
Ans: Different authority levels to approve purchases are not clearly defined items.
and it is currently being reviewed.
The Levels of Approval for these materials in SAP System will be as shown
below:
Ans: Online approval for PO’s Approvers of the Document:
SAP to recommend best practice. Desig1 -> Desig2
The approval Process could be 2 Level approvals as mentioned above.
Assets:
Purchasing officer -> Purchasing Head -> Managing Director or AGM
Services:

AS IS Document
Purchasing officer -> IT Manager -> Purchase Head-> MD or AGM
Gaps: A (NO GAP)
4.5.4 Goods Receipt/Transfer posting
Suggested Business Process

A goods receipt leads to an increase in inventory. In Logiwiz the Goods receipt
will be done for the following movements of the stocks:
 Goods Receipt with respect to Purchase Order
 Goods Receipt for Initial Entry Stock
 Goods receipt without Purchase Orders
 Other Goods Receipts
The transfer Posting also be done in Logiwiz for the stock transfers for the
various Purposes as shown below:
 Transfer posting Plant to Plant
 Transfer posting Storage Location to Storage Location
 Transfer posting Material to Material
 Transfer posting Company code to Other company code
Gaps: A (NO GAP)

AS IS Document
4.5.4.1 Sub-Process Scope: Goods Receipt of Incoming Materials
1. Explain Present Process in-detail with process flow charts / The purchase order is not only the document with which the purchasing
relevant formats / policies & procedures, if any. department orders goods from the vendor; it is also an important planning and
Ans: tracking tool for the following departments: Purchasing, Material Requirements
1. As per the initial requirement and description mentioned and Planning (MRP), Inventory Management, and Invoice Verification. To receive
quantity mentioned on PO the receiver will confirm the receipt of goods/service the material in System the Goods receipt will be done.
via e-mail. This will be considered as the GRN and will attached with the Purchase order covers all type of purchase orders like Import purchase orders,
Invoice, PO and other relevant documents to make payments for supplier. Local PO, Stock Transfer Orders, and Service Orders etc.
Other goods receipts include initial entry of stock balances, external goods
2. Sometimes the confirmation goods receipt will be confirmed on
receipts without a purchase order etc.
the invoice itself by the relevant receiver. This will be confirmed by the Cluster
If a material is delivered for a purchase order, it is important for all of the
Head/Functional Head to proceed further with payments.
departments involved that the goods receipt entry in the system references this
purchase order or order, for the following reasons:
2. Limitations in the present process. Goods receiving can check whether the delivery actually corresponds to the
Ans: Purchase order.
 Confirmation of Goods receipts are passed on to finance with other The system can propose data from the purchase order during entry of the
relevant payment documents and a record same is not maintained goods receipt (for example, the material ordered, its quantity, and so on). This
within Procurement. simplifies both data entry and checking (over deliveries and under deliveries).
The delivery is marked in the purchase order history. This allows the Purchasing
Proposed requirements (Process/Formats/Others)
department to monitor the purchase order history and initiate reminder
Ans: SAP to propose Best Practice.
procedures in the event of a late delivery.

AS IS Document
The vendor invoice is checked against the ordered quantity (purchase order
Quantity) and the delivered quantity (Goods receipt Quantity).
The goods valuation is done on the basis of the purchase order price or the
invoice price.
Gaps: A (NO GAP)
4.5.4.2 Sub-Process Scope: Goods Transfer from one Plant to another Plant
1. Explain Present Process in-detail with process flow charts / Stock transport order will be created by the requesting plant. These requests
relevant formats / policies & procedures, if any. will be fulfilled by sending the goods against the order. The requesting plant
Ans: will do the receipt of goods against the order.
 At present the goods transfer from Plant to Plant is communicated via For packing material transfers between company codes, the transfer will be at
mail and it will be informed to Finance to make necessary changes in base price with NBT and VAT applicable.
transferring of cost.
 When goods are purchased it is delivered to Kelaniya and then transferred Conditions Description
to other sites
1 Basic Price
 Also there are instances where delivery of items are delivered directly to
2 %VAT
the relevant site (delivery location will be specified on the PO).
3 %NBT
 At times there will be intercompany transactions from LWL to LNW or vice
versa at book value or purchase cost.
Ans:

AS IS Document
Ans; : SAP to propose Best Practice.
4.5.4.3 Sub-Process Scope: Goods Receipt against Service Orders(Service Entry Sheet)

How service acceptance happens & it’s details
Explain in details service acceptance against contracts order & provide Service Orders shall be created with taking reference of the Service Purchase
the format: requisition for services and Service entry sheets shall be created for the quantity
of Service received.
Part service of the total quantity of service mentioned in the PO can be received
and Invoice verification shall be done for the invoice raised by the service vendor
based on the service entry sheet created.
Ans:
The Service Entry Sheet will be done for the quantity –
 As per the initial requirement and description mentioned mentioned on 1. Partially received
PO the receiver will confirm the services received as per the requirement 2. Completely received
via e-mail. This will be considered as the confirmation and it will attached
with the Invoice, PO and other relevant documents to make payments for
supplier. Once the Service Entry Sheet is created the authorized person need to accept
the work done by the Vendor in Service Entry Sheet Acceptance.
 Sometimes the confirmation services received will be confirmed on the When the Service Entry Sheet Acceptance is saved a Material Document will be

AS IS Document
invoice itself by the relevant receiver. This will be confirmed by the generated in the Background along with Service Entry Sheet Number and
Cluster Head/Functional Head to proceed further with payments. Accounting entries will be passed for the receipt of Services.
The Entry will be to debit relevant expense account and to credit GR / IR
2. Limitations in the present process account, for the cost involved.
Ans: Then Finally based on the Service Entry Sheet number, the invoice Verification
will be done.
 Confirmation of Services received are passed on to finance with other
relevant payment documents and a record of same is not maintained
within Procurement. Gaps: A (NO GAP)

Ans: SAP to propose best practice
4.5.4.4 Sub-Process Scope: Returns to vendor

If its applicable then Specify: If you want to return delivered goods to the vendor for some reason (for
example, due to poor quality or because they are damaged), you can use this
function to return the goods, even if you have already posted the goods
receipt.
Ans:
Process 1 : If LIV (Logistics invoice verification) and Payment to
 If items delivered do not confirm with specification mentioned on the PO
Vendor is already done
or quotation, the goods will be returned vendor.
1. In this case the Return purchase order will be created. A new Document
 If vendor is unable supply as per our requirement will communicate to
type will be used for the different number Range of the Purchase orders for
supplier that the order placed is cancelled and a new order (new PO
the returns. The return PO Indicator will be selected for the return process.
No.) will be placed with another vendor.

AS IS Document
 We are looking at possibilities of carrying out Vendor managed inventory 2. Goods Receipt will be done with reference to the Return Purchase Order.
of some items in our locations.(Ex. Safety shoes to kept under vendor The system will create the return material document for the Return
managed inventory system and it to be invoiced as and when the Purchase Order. System will automatically select the Movement type 161 for
requirement arises. the Return Purposes.
2. Limitations in the present process 3. Now Based on the Return delivery a Credit Memo will also be raised with
Ans: reference to the returns Purchase order and will be sent back to the Vendors
for the values of the Stock to be returned to vendor.
Process 2 : If LIV (Logistics Invoice Verification) and Payment to
vendor is not done
1. The Old Material Document reference will be taken to create a Return
Delivery.
2. The System will determine the Movement type automatically for the return
delivery. A material document will be generated after saving the return
Delivery which will be sent with the Delivery for the Returns.
3. A credit Memo will be raised with reference to the Original Purchase Order.
Vendor consignment ( vendor managed inventory)
Vendor cconsignment process in SAP is handled through item category in
purchasing document and the prerequisites/steps for consignment process to
work shall be maintained in the system.
Gaps: A (NO GAP)
4.5.4.5 Goods (Material)Receipt / Services Procured Without Purchase Order

Please specify the instances in details :
In Logiwiz the Goods Receipt will be done without Purchase Order in case of
1. Explain Present Process in-detail with process flow charts / urgent operational requirements. Goods receipt will be done for which PO has
not been created. The material document will be created once the GR Posted.
In this case, during GR the System will capture the price from Info record
Ans: maintained for the material and Vendor Combination.

AS IS Document
 There are goods and services being obtained at site level without PO from Gaps: A (NO GAP)
central Procurement.
 Reasons for are ,
+ Urgent operational requirements to be fulfilled.
+ Low value purchases
 These urgent requirements will be approved by the Cluster Head / SBU
Head.
 Relevant invoices will be recommended by the site head, cluster head,
and SBU Head to process the payment through Finance.
 Payments for same will be made via Cash (ATF) at time of purchase or
payment via cheque on completion of job or goods received.
Ans:
4.5.5 Goods Issue
4.5.5.1Goods Issue

Specify the goods issue process in details with example:
1. Explain Present Process in-detail with process flow charts / Using Goods Issue component, one can post a material withdrawal or a

AS IS Document
relevant formats / policies & procedures, if any. material issue. A goods issue leads to a reduction in warehouse stock. Goods
issue can be with or without reference to the document.
Ans:
Standard SAP system allows goods issue with reference to document against
 At present operations do keep stock of items as they order on for the
• Reservation
requirement to be used for the particular operation.
• Maintenance order
 Admin. Dept. is maintain stocks of T-shirts, safety shoes, stationeries, • Internal order
consumables and promotional items.
 These are issued to relevant clusters, sites, functions depending of the
approved request received to Admin. Dept. Following are the effects of Goods issue in the system;
 Maintenance Dept. will hold a few maintenance items to carry out daily • Material document is created
maintenance work. Issues will be made as per the requirements arise. • Accounting document is created
• Stock update
• Update of G/L accounts
Ans: Records are maintained by the Admin. dept as there is no inventory
• Consumption update
management system for internal stocks.
• Reservation update
• Order update
Ans: SAP to propose best practice. Reservation
The purpose of a reservation is to ensure that a material will be available when
it is needed. It also serves to simplify and accelerate the goods issue process
and prepare the tasks at the point of goods issue.
SAP System supports manual and automatic reservations. Manual reservations
are entered directly by the user. Automatic reservations are generated
automatically by the System.
For Eg:-
The type of automatic reservations which will be used in Logiwiz:
Reservations for maintenance orders:
When an order is created, the components from the Store are reserved
automatically. You cannot manually process automatic reservations. For
example, it is not possible to change reservations for an order directly. You
have to change the components in the order. The system then updates the

AS IS Document
reservation automatically.
Gaps: A (NO GAP)

AS IS Document
4.5.5.2 Goods Issue - Consumables

Specify the process in details with example:
Pls Refer – 4.5.5.1
Ans: Same as indicated above under Goods issue – 4.5.5.1
Ans:


AS IS Document
4.5.5.3 Goods Receipt - Capital Items

1. Explain Present Process in-detail with process flow charts / Fixed assets (capital items) are capitalised during GRN.
Ans: Capital Purchases will be directly delivered to the relevant location and Transfer of capital items are facilitated in the system.
confirmation will be obtained for same.
 Relevant asset code stickers will be pasted at the time of receiving the
capital item at relevant location.
Detail has been covered in FI module document.
 If Capital items are transferred from one location to another it will
communicated to Finance to update their records.
 CapEx purchases are to be checked against the budget and relevant
balance calculations on budget to be made on same. Gaps: A (NO GAP)
Ans:

AS IS Document
4.5.6 Scrap Handling

1. Explain Present Process in-detail with process flow charts / The material in the system which cannot be used for the intended purpose
relevant formats / policies & procedures, if any. due to various reasons or any other purpose will be maintained as scrap in the
Ans: system.
 Functional Head/Cluster Head to inform Procurement & Finance of details In case Scrap material is received as By-product during various stages of
relating to the scrap items maintenance, it will be directly received in the respective storage location and
can be subsequently used for Scrap Sale and sales process will be covered in
 Finance to confirm that the existing book value is nil and necessary
Sales and Distribution Module.
approval will have to be obtained for disposing of scrap.
 Depending on the value of the items (estimate) to dispose accordingly
(through Scrap buyers.
 High value items to be advertised in the papers.

Ans:


AS IS Document
4.5.7 Logistics Invoice Verification

The Invoice Verification involves the following processes:
1. Explain Present Process in-detail with process flow charts / 1. Invoice
relevant formats / policies & procedures, if any. 2. Credit Memo
Ans: For Labour payments the contractors will be submit their Invoices direct 3. Subsequent Debit
to Finance department by 3rd of each month.
4. Subsequent Credit
Contractors would be paid up to 75% of the invoice value as an
Invoice is used when the payment is to be made to the vendor.
advance payment by the 9th of each month. The balance will be paid
As a result of Invoice Verification Vendor account will be credited and the
by the 20th of the same month
GR/IR account will be debited.
At this point, the tax element also will be appropriately accounted.
Logiwiz sites will maintain details of attendance and communicate it through a
Credit memo is used for materials returned back to the vendor. During
Job card to finance to cross check with the Invoice and proceed with
invoice verification the system shall display the materials returned back to the
payments. This will include all relevant details of attendance of workers of
vendor for which deductions will be made.
each Manpower Contractor at each site.
Subsequent debit shall be used for transactions where the Original invoice
has already been cleared and a subsequent invoice has been raised by the
Job card will include all supporting data. (Ex: Biometric reports, manual data
vendor for materials already sent. Example: Rate change with retrospective
recorded or both) –
effect.
Subsequent Credit shall be used when any deduction/ penalty is to be levied

AS IS Document
 Job card is approved by Site Head/Cluster Head/ SBU Head. on the vendor.
There are 3 options that can be used for Invoice Verification.
2.) Transport Payments made in the same way as above and they will be 1. Goods / Service Item
paid the full invoice value by 15th of the following month. 2. Delivery Costs
3. Goods/Service Item + Delivery costs
3.) For general payments the Invoice, PO and the confirmation of receipt Based on the Goods/Service and delivery vendors, the option shall be
of goods or service and along with the approval for the purchase will be selected. For Advance payments – expenses are to be booked as Prepaid
sent to Finance to proceed with payment to supplier, Expenses in FI and CO & then payment has to make time to time after
4.) Transport data is captured by operations through the information intimation by Purchase department.
entered through different tracking methods relevant to respective
operation.
Gaps: A (NO GAP)

Ans:
 Information included in the job cards are calculated manually.
 There are considerable delays in the process.

Ans:
 Entering of data into tracking formats (Excel sheets) to be included in the
new SAP system. This should be accommodated in the system to avoid
duplication of entering data when providing information’s for other
applications (Ex. Invoicing to clients).
 SAP to propose best Practice. Entering data into different tracking Excel
sheets to be captured in SAP system.

AS IS Document
4.5.7.1 Sub-Process Scope: Entry of Vendors’ Invoice

Local Vendor
1. Explain Present Process in-detail with process flow charts / Local vendor invoice shall be entered with reference to Purchase Order. More
relevant formats / policies & procedures, if any. than one purchase order can also be processed at one time for one vendor. If
Ans: : 1.) Labour Payments required the vendor can be changed from the original vendor to whom the
payment is to be done. If any Invoice verification has been done for any GR
 Labour contractors will be submit their Invoices direct to Finance
for a PO, the quantity for this GR will not appear in the list. In case where the
department by 3rd of each month.
freight vendor is different, only those entries related to the delivery costs will
 Contractors would be paid up to 75% of the invoice value as an advance
be chosen for the payments to this vendor. It is also possible to raise credit
payment by the 9th of each month. The balance will be paid by the 20th
memo against the goods returned to the vendor. In case of Subsequent
of the same month.
debit/credit to be made to the vendor account, (reasons can be change of
rates for previous supplies made, etc), the entries are made using the Invoice

AS IS Document
 Logiwiz sites will maintain details of attendance and communicate it Verification.

through a Job card to finance to cross check with the Invoice value and Unplanned delivery costs are costs which are not known at the time of
proceed with payments. This will include all relevant details of attendance creation of purchase orders and these are charged in the invoice sent by the
(normal wage, OT, Double OT) of workers of each Manpower Contractor vendor.
at each site including their management fee invoice will include EPF,ETF
Import Vendor
statutory charges which calculated on the basic salary of workers.
Imports invoice verification is different from the normal invoice verification. In
Import PO the Custom duties and other conditions are maintained as delivery
 Job card will include all supporting data. (Ex: Biometric reports, manual condition types hence the Invoice verification for the Custom duty part is to
data recorded or both) – be done first before the GR is done. Invoice verification is done for the
Purchase Order. In this case No GR based Invoice verification is possible (This
 Job card is approved by Site Head/Cluster Head/ SBU Head. is specific to Imports only).
Fright Charges: Sometime the freight charges can be paid to a different
Vendor (Freight Forwarder) than the Main Vendor.
Insurance Company: In Some Cases the Insurance company do insurance
for Logiwiz in case of Import process, So a different Vendor Payment
Required.
2.) Transport Payments made in the same as above and they will be paid CID/PAL/SUR/SRL/ED/CESS/BTT/NBT: All the Custom duties are paid to
the full invoice value 15th of the following month. the Department of Customs or Port authority levy.
Documentation Charges: In some case everything is handled by the
Clearing Agent, so a separate Invoice Booking will be done.
LC Charges/ Bank Charges: The Separate Invoice booking for Bank
Charges and the LC charges will be done in system.
The Planned delivery cost will be assigned in the Import Purchase order.
3.) For general payments the Invoice, PO and the confirmation of receipt
of goods or service and along with the approval for the purchase will be Gaps: A (NO GAP)
sent to Finance to proceed with payment to supplier,
4.) All invoices received at operational sites will be checked,

AS IS Document
recommended and authorized for payment by Executive, Cluster Head

and SBU Head.
5.) General Payment invoices are checked against the PO, confirmation of
goods received via mail (GRN) to proceed with payments.
6.)Finance will make payments to vendors through the Transtec
accounting system

Ans: 1.) Information included in the job cards are calculated manually.

Ans: SAP to propose best practice
4.5.8 Physical Inventory Verification

Specify the process in detail with example:
The Physical Inventory will be done on SAP System for Logiwiz. Physical
inventory on storage location level is the process of counting materials in your
storage location, whether these stocks are your own materials or special
stocks.

AS IS Document
Ans: Inventory is maintained on Excel formats and will be checked against The Physical Inventory Process will be done as shown below:
physical availability and confirmed. Prepare physical inventory
Physical Inventory document will be created in System and the materials will
2. Limitations in the present process be selected for the inventory counting.
Ans: Activate Inventory Record
3. Proposed requirements (Process/Formats/Others) When this step is completed, all storage locations are blocked and ready to be
Ans: SAP to propose best practice counted. When the inventory document is activated, the items within the
specific storage locations that are to be counted are blocked.
Processes Physical Inventory Count
The warehouse worker goes to the storage location where the items are
stored and counts the stock. When this step is completed, all inventory
balances counted by the user are updated in the count document, but the
Physical Inventory balance has not yet been changed. They can run a
difference list.
Initiate Difference
When the counts have all been entered for an inventory document, you need
to check whether differences exist.
Clear Differences in Values and Quantities
Clearing difference in Inventory Management means that you are ready to
create inventory adjustments and accept the fiscal gain or loss in any
difference that has been reported. At the same time you are unblocking the
items within the storage location for new movements. Clearing differences in
Inventory Management creates an accounting document in the financial
system that references the Physical Inventory document.
When this step is completed, all inventory balances are updated in the system
and the appropriate accounting documents are created
Gaps: A (NO GAP)

AS IS Document

AS IS Document

AS IS Document
4.5.10 Business Process
4.5.10.1 Procure to Pay

Material & Service Procurement
relevant formats / policies & procedures, if any. 1. The Requirements will be raised by the inventory Department.
Ans: 1.) Labour Payments 2. If stock is available in the warehouse then the material is issued to the
packing lines. If Stock is not available then the Store Keeper will raise the
 Registered Labour contractor details will be communicated to Admin. Dept.
Purchase Requisition.
and they will liaise with them regarding site requirements (Ex. No. of
Heads required for a specific site)
3. If it is an old material then the Point no. 6 will be followed further but if it
 For Labour payments the contractors will be submit their Invoices direct
is a new material then the Request for Quotations will be raised.
to Finance department by 3rd of each month.
 Contractors would be paid up to 75% of the invoice value as an advance
4. The Vendors will send their Quotations with the Prices.
payment by the 9th of each month. The balance will be paid by the 20th
of the same month
5. Price Comparison can be done in SAP system for all the Vendors.
 Logiwiz sites will maintain details of attendance and communicate it 6. Then the approval Process to be followed as shown in the Approval
through a Job card to finance to cross check with the Invoice and Process mentioned for Purchase Requisition. The approval process will be
proceed with payments. This will include all relevant details of attendance different as mentioned under Packaging material or Engineering Goods in
of workers of each Manpower Contractor at each site. Section ” 4.5.3.2 Sub-Process Scope: Approval of Purchase
Requisition”. Once the Document Approved then it will passed to the
 Job card will include all supporting data. (Ex: Biometric reports, manual Supply department.
data recorded or both) –
7. Then the Purchase Requisition is converted into the Purchase Order by
 Job card is approved by Site Head/Cluster Head/ SBU Head.

AS IS Document
supply department.
2.) Transport Payments made in the same way as above and they will be
paid the full invoice value 15th of the following month. 8. Then the Approval process will be followed for Raw, Packaging and others
as mentioned in “4.5.3.7 Sub-Process Scope: Purchase Order
3. For general payments the Invoice, PO and the confirmation of receipt
Approval”.
of goods or service and along with the approval for the purchase will be
sent to Finance to proceed with payment to supplier,
9. Purchase order is sent to the Vendor after mentioning the terms and
conditions.
3.) For some purchases the full payment is made upfront or at the time
of delivery or collection.
10. Vendor will send the Goods to the Logiwiz.
4.) Some suppliers may request an advance Payment along with the PO.
11. The Goods Receipt will be done with reference to the Purchase Order. A
5.) Up to 50% advance payment is recommended and further will be material Document will be generated in the System for the Proof of Goods
issued on a special approval. receipt.
6.) When advance payments are made to suppliers it will be made under
the advance payment account. At the time of making the balance 12. If material is accepted then the Stock will be transferred to the
payment the advance account will settle accordingly. unrestricted use stock. If it is rejected then returned back to the supplier
with the cancelled documents required with the return delivery
7.) There are occasions where we purchase goods and services as per
Finance department will do the invoice verification based on the Purchase
special request made by the client. And they will be charged/invoiced back
order/Service Entry Sheet and finally do the payment to the Vendor. The
to back at the same rate or by adding a margin of profit for the service
Accounting Document will be generated and the accounting Entries will be
provided (this will be a cost recovery from client).
updated in Finance. The amount for which Invoice verification is done will be a
payable amount to the Vendor.
Ans:

Ans: 1.) to capture the above requirement on new system
2.) % of advance payment to be requested to be included in the system.
When making advance payments the option of Taxes to be calculated for the
advance amount should be included.

AS IS Document
3.) SAP to propose best practice.
For Labour and transport services, purchase order will be created for the
quantity of services performed and invoicing will be entered based on this
document. The quantity of services performed will be calculated outside the
system.
Advance payments are supported for a purchasing document which can be

settled during final invoice entry.
Gaps: A (NO GAP)

AS IS Document

AS IS Document
4.5.10.2 Import Purchase Process

Explain in details:
relevant formats / policies & procedures, if any. 1. The Requirements will be raised by the Production Department for the
Ans: Production of Finished Goods. The Requirements will be sent to the
Inventory department in form of Production Order.
 Initial Purchase request to be sent by the requesting department.
2. If stock is available in the warehouse then the material is issued to the
 Process will be same as for Local Purchases. Production Lines against the Production Order. If the stock goes below
 Payments will be made as per negotiated terms with supplier. Reorder Level Store keeper creates the purchase requisition.
 Clearance and actual delivery of goods will be handled by one of the group
companies 3. Then the approval Process to be followed as shown in the Approval Process
mentioned for Purchase Requisition. The approval process will be different
as mentioned under Packaging material or Engineering Goods in Section
”4.5.3.2 Sub-Process Scope: Approval of Purchase Requisition”.
Once the Document Approved then it will passed to the Supply department.

4. Then the Purchasing department will enter the required quantities in one
Ans: Import Purchase Order and taking care of the Lead time for the material
3. Proposed requirements (Process/Formats/Others) availability.
Ans: SAP to propose best Practice.
5. Then the Approval process will be followed for Raw, Packaging and Assets
as mentioned in “4.5.3.7 Sub-Process Scope: Purchase Order
Approval”.
6. Purchase order is sent to the Vendor after mentioning the terms and
conditions.

AS IS Document
7. Vendor will send the Goods to the Air Post/Sea Port.
8. Then all the Custom duties to be paid to the Government.
9. The Vendor will send the goods at the Sea/Air Port.

10 .Now against the Documents against payment the following Documents are
required –
A. Invoice
B. Packing List
C. Bill of Lading
D. Other Certificate required (e.g. country of Origin)
11. The Goods Receipt will be done with reference to the Purchase Order. A
material Document will be generated in the System for the Proof of Goods
receipt.
12. If material is accepted then the Stock will be transferred to the unrestricted
use stock. If it is rejected then returned back to the supplier with the
cancelled documents required with the return delivery.
13. Finance department will do the invoice verification based on the Purchase
order/Service Entry Sheet and finally do the payment to the Vendor. The
Accounting Document will be generated and the accounting Entries will be
updated in Finance. The amount for which Invoice verification is done will
be a payable amount to the Vendor.
Gaps: A (NO GAP)

AS IS Document

AS IS Document
4.5.10.5 Business Process - Asset Purchase
AS-IS Business Process

Specify in details: Suggested Business Process
1. Explain Present Process in-detail with process flow charts / A separate Document type will be created for the Assets Purchase for Logiwiz.
relevant formats / policies & procedures, if any. Assets masters will be used for the procurement Processes. Materials will not
Ans: be created in the SAP System but the Material Description will be used in the
Material description field. The Business Process that may be followed in the
 On receipt of a duly completed purchase request with the relevant
SAP is as explained below:
documents for asset purchases will be carried out as per normal
Procurement Process. 1. The Requirements will be received by the Head of procurement and these
are passed to head of department for approval through requisition.
 Capital Budget form will be an additional support document relevant to
Asset Purchases. 2. After approval by head of department, the Purchase requisition will be
converted to a purchase order by the head of procurement and approval
 Depending of the nature of the Asset Purchase, Asset Codes sticker will be
will be obtained from the /General Manager/Managing director/COM
pasted on delivery to site. This process is carried out manually.
member before sending this to the vendor.
3. While converting the Purchase Requisition into the purchase orders an
Asset code will be assigned in the Purchase order.
4. Purchase order will be sent to the Vendors for the Delivery of Goods.
5. Vendor will send the Goods (Assets/Capital Items) to the Logiwiz.
6. Goods receipt will be done after doing the manual Inspection of the Asset
Items. A material document will be created in the SAP System.
7. Then Logistics Invoice Verification will be done in the Sap System to check
Ans: Duly filled Purchase Request / Capital Expenditure forms are not sent to
whether Vendor has delivered the goods with the price and Quantity
Procurement Dept.
mentioned in the Purchase order.
8. Finally Payment will be done to the Vendor by the Finance department.
 Capex items to be identified separately in the system
 Identification of assets purchased as per location
 SAP to propose industry Best practice
Gaps: A (NO GAP)

AS IS Document

AS IS Document
4.6 Integration Points :
 All procurement activities are completed manually due to unavailability of a system. All activities should be integrated.
 Procurement activities will be completely integrated with Finance, and will have the follow on data
 To obtain online approval for all processes including approval from the mobile phone.
 Approval process for purchasing documents will be done through SAP system only.
 End-users to allow data entry through windows and it to be intergraded throughout the system.
 Data entry by users will be updated in the system on real time basis.

AS IS Document
4.7 All purchase/stores/contracts formats presently used: submit current pre-printed format :
 GRN’s are confirmed by E-mail

AS IS Document
4.8 Reports: The following reports are required by HAYLEYS GROUP for MIS in same/new formats.
Pending Purchase request for a period

Pending PO report for a period including part
completed PO’s.
Pending payment report for goods already delivered
and confirmed.
4.8.1 Purchase Items/Services purchased as per value range

Reports SAP to propose best practice and relevant report
options available in the system
Reports on Inter group company transactions (order SAP standard reports cater to all the report requirements.
to GRN, Invoice login to payment, Category wise
reports, site wise reports)
Material / Services purchased category wise reports
Stock report of inventory items at each location

Identification of re-order level for Inventory items
SAP to propose best practice and relevant report
options available in the system
4.8.2 Inventory
Management

AS IS Document
4.9 Users
A list of users is illustrated below:
Key User
Sr. No. Key User Name Company Email ID Mobile No.

krishan.tennekoon@logiwiz.com
Krishan Tennekoon LWL 077-2106269
sujan.rajaratne@logiwiz.com
Sujan Rajaratne LWL 077-3033524
vasantha.batuwitage@mitcargo.com
Vasantha Batuwitage MIT 077-3033936

3pl BBP MM 2003 Version 1.0

Uploaded by

Copyright:

Available Formats

You might also like

3pl BBP MM 2003 Version 1.0

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

3pl BBP MM 2003 Version 1.0

Uploaded by

Copyright:

Available Formats

AS IS Document

Sign-off on Business Blue Print

Materials Management – Third Party Logistics (3PL)

Mr. Krishan Tennekoon Mr. Sreedharan Gopal

Mr. Arul Murugan

ASIS Document – Materials Management Page 1 of 107

Introduction: Description of the company.

Third Party Logistics

Warehousing and Distribution

Transportation and Haulage

Projects & Inland Logistics

ASIS Document – Materials Management Page 2 of 107

Contract Warehouse & Production Line Logistics Management

Logistics Support & Value Added Services

ASIS Document – Materials Management Page 3 of 107

Introduction of Business Blue-Print:

Status of To-Be Business

E-Not possible without Major

G-Not possible Cannot be implemented on SAP ECC 6.0

ASIS Document – Materials Management Page 4 of 107

The To-Be business process realization is dependent on the following aspects:

1400 Logiwiz Limited

1401 Logiwiz NW (Pvt) Limited

ASIS Document – Materials Management Page 5 of 107

The To-Be business process realization is dependent on the following aspects:

3 Sales & Distribution

6 Document Management System

ASIS Document – Materials Management Page 6 of 107

ASIS Document – Materials Management Page 7 of 107

4.4 Department Structure

4.5 Business Processes

4.6 Integration Points

4.7 Print Outputs

4.9 Users List

ASIS Document – Materials Management Page 8 of 107

4 Materials/Services Coverage & Different Types of Procurement:

ASIS Document – Materials Management Page 9 of 107

4.2 Enterprise Structure

LWL Logiwiz Limited 1400 Logiwiz Limited

LWL – Kelaniya LWKP LWL – Kelaniya LWL – Kelaniya warehouse

LWL- Sapugaskanda LWSP LWL-Sapugaskanda LWL- Sapugaskanda warehouse

LWL-Nugape LWNP LWL-Nugape LWL-Nugape warehouse

LWL-CTC- Kandy (Client

LWL-Unilever- Horana (CP)

LWL- Biyagama LWBP LWL-Biyagama LWL- Biyagama warehouse

ASIS Document – Materials Management Page 10 of 107

LWL-Thulhiriya LWTP LWL-Thulhiriya LWL-Thulhiriya warehouse

LWL- Ja-Ela LWJP LWL- Ja-Ela LWL- Ja-Ela warehouse

LNW-Thulhiriya LNTP LWNW-Thulhiriya LNW-Thulhiriya warehouse

LNW- Ja-Ela LNJP LWNW- Ja-Ela LNW- Ja-Ela warehouse

ASIS Document – Materials Management Page 11 of 107

NOTE – STORAGE LOCATION

ASIS Document – Materials Management Page 12 of 107

Site Level Purchasing Unit

CON Consumables Procurement group for consumables

CAP Asset Procurement group for asset

ASIS Document – Materials Management Page 13 of 107

ASIS Document – Materials Management Page 14 of 107