Issue

Batch is globally used in Syensqo to track and trace the movements for homogenous partial quantities of required materials/products. 

However, in Composite Materials business, batch is also used to track and trace the movements for individual material items in some scenarios. This KDD is to assess the option of using SAP serial number to handle the relevant scenarios. 

Recommendation

Introduce Serial Number (SN) concept and use SN to manage, track and trace the movements for the individual item rather than using batch number. 

Background & Context

In the following 2 scenarios, batch number is used to track and trace the movements for individual materials.

1). Sublot Scenario

For example, a Process Order is created in SAP to make the Master Roll, which is a piece of carbon fabric of 1 meter wide x 100 meters long. A SAP batch number, for example MROLL1, is generated and assigned to the Master Roll. Later, another Process Order is created to consume Master Roll (MROLL1) and produces 5 separate pieces. Each is 20 CM wide and 100 meters long. Then another 5 SAP batch numbers are generated to identify each of the sublots: MROLL10001, MROLL10002, ... , MROLL10005. 

2). Non-Sublot Scenario 

In another case, for example, 500 liters of a liquid adhesive (bulk finished goods) is produced with SAP batch BATCH1. It's been packed in 5 liter cans (packed finished goods). In total, there are 100 cans of  the adhesive in BATCH1. Business may number each individual cans by using unique numbers related to adhesive BATCH1, eg. BATCH1001 for can#1, BATCH1002 for can#2, etc. Those unique numbers look like sub-batch numbers, but they will only be used to physically identify the cans. They are not SAP batch numbers and are not stored in SAP currently. So those sub-batch numbers cannot be used for tracking or tracing. In other words, business can't track & trace each individual cans in SAP at the moment.

Business will print the Master and/or Sub Batch depending on the requirement. Batch numbers are limited to 10 characters. Most are 6+4 or 6+3, but other schemes are also possible.

Assumptions

1. Business needs to track & trace the relevant materials at the individual item level.
2. Master Roll and Sublot Rolls use different material numbers.
3. Bulk finished goods and related packed finished goods use different material numbers. 

Constraints

1. SAP standard serialization numbering doesn't reflect the relevant Batch numbering. 
2. Some standard Fiori Apps don't support serial number feature, for example F1061 Transfer Stock - In Plant. In this case, classic GUI transaction MIGO will be required. (Refer to SAP Notes# 3459964)

   https://userapps.support.sap.com/sap/support/knowledge/en/3459964

3. QM inspection at serial number level in conjunction with EWM is NOT (yet) supported in S/4HANA. 

Impacts

1. Impacts on Processes

• To perform relevant material transactions, such as goods receipt and stock transfer, user need to not only specify batch number but as well as serial numbers for all the relevant individual materials.
• Since serial number doesn't directly reflect the batch numbering, user won't be able to tell the batch number by relevant serial number. (However, since batch can be configured as mandatory for the relevant serialized material, batch number will be also associated with relevant serial numbers.) 

2. Impacts on Other Domains

1). WM/EWM

When moving serialized material (meaning, material with serial number) in and out warehouse, user also needs to specify the relevant serial numbers.

2). Data and Migration

• New data object is introduced: Serial Number
• Data Uploading: Serial Numbers need to be added when uploading the relevant stocks (Stock-on-Hand) or legacy transactions from legacy SAP ECC systems.     

3. Impacts on Developments

Developments may be required to:

• Enhance the standard Fiori Apps to support the serial number features.
• Build the visual connection between the batch numbering and serial numbering.       

4. Impacts on Interfaces

If serialized materials are transacted in 3PLs (Third Party Logistics) or other TPAs (Third Party Applications), such as Neptune and Weighbridge, serial number information will need to be communicated in the relevant interfaces.  

5. Impacts on Change Management

Additional training is required for serial number management functionalities. 

Business Rules

Potential business rule if adopt Serial Number management:

- Serial number will be activated for the materials requiring track & trace at individual item level.

Options considered

List the options (viable options or alternatives) you considered. These often require a longer explanation with diagrams, or references to other documents (links are best, but attachments are also possible). Use enough detail to adequately explain what you considered so that a project or business stakeholder reviewing this decision will not come back and ask "did you think about...?"; this leads to loss of credibility and questioning of other decisions. This section also helps ensure that you considered enough suitable alternatives rather than just copy/pasting SAP's recommendations.

Option A: Introduce Serial Number (SN) with Batch Management

With this option, during goods receipts from production, relevant SNs (Serial Numbers) will be generated and assigned to each of the material items. SN and relevant Batch number should be printed on the label with the scannable barcode to streamline the downstream transactions such as stock transfer, stock take, picking/packing and goods issue etc.  

1. Sublot Scenario

For the above Sublot scenario, with introducing SN, the Sublot Rolls will be received into the same batch number as the one for Master Roll, and with serial numbers generated for each of the Sublot rolls.

Note: a development may be required to force receiving Sublot Rolls with Master Roll batch number. Otherwise, discipline will need to be established to follow the batch rule. 

2. Non-Sublot Scenario 

Similarly, for the above Non-Sublot scenario, packed FG (Finished Goods) will be received using the bulk FG (eg. 500L liquid adhesives) batch number, and serial numbers will be generated for each of the packed FGs (eg. 5L cans).

Option B: Replicate AS-IS Batch Logic 

With this option, different batch numbers will be generated for either Master Roll or Bulk FG, as well as each of the individual FG items. Development will be required to maintain the numbering link between the original batch and the subsequent batches.

1. Sublot Scenario

For the above Master Roll example:

2. Non-Sublot Scenario 

For the above liquid adhesives example:

Evaluation

Outline why you selected a position. The best format could be a pro/con table (sample below), but is up to you as the author. You must consider complexity, feasibility, cost/effort to implement, but also ongoing operational impact and cost. You must consider the program principles and explain any deviations in detail. This is probably as important as the decision itself.

Pro's and Con's 

	Option A (SN + Batch)	Option B (Batch Only)
Standardization	Pro's Standard SAP solution In standard SAP S/4HANA, serial number is used to uniquely identify a specific item. So no extra effort required to develop a process to generate the required tracking number and embedded into the subsequent transactions.     System matches with physical activity In reality, Sublot Rolls and Master Roll should be the same batch of material but in different sizes, and similar to bulk and packed liquid adhesives. So by using Batch & SN combination, SAP system matches with physical activity.	Con's Non-Standard SAP solution In standard SAP S/4HANA, batch number is used to track groups of items with unique number and common characteristics. So to utilize the batch number for individual tracking, either discipline or development is required to guarantee the batch number generation for each of the items rather than one batch for the whole goods receipt quantity.  System not reflect physical activity It's a workaround solution by assigning different batch numbers to the same batch of material, eg. either Sublot Rolls or Packed Liquid Adhesives. And in this case, SAP system does not match with the physical activity.
Traceability	Pro Con	Con
Change Management	Pro	Con
Future Proof

See also

Insert links and references to other documents which are relevant when trying to understand this decision and its implications. Other decisions are often impacted, so it's good to list them here with links. Attachments are also possible but dangerous as they are static documents and not updated by their authors.

Change log

Workflow history