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SAP SD · LessonBy , SAP Trainer, 13 yrs · Published · SAP S/4HANA 2023 · all levels

Shipping

Shipping in SD covers the processes around getting goods to the customer, delivery processing, picking, packing, goods issue and transportation handover. It is the execution layer of outbound logistics within SD.

Quick answer

Shipping integrates SD with warehouse management (picking), inventory/finance (goods issue), and transportation management (freight).

Key takeaways
  • Shipping manages the physical dispatch: creating and processing deliveries, picking and packing the goods, posting goods issue, and…
  • Shipping point: where deliveries are processed.
  • Picking & packing (integrating WM/EWM, handling units).
  • Watch out: Shipping-point configuration errors, wrong delivery processing.

What shipping covers

Shipping manages the physical dispatch: creating and processing deliveries, picking and packing the goods, posting goods issue, and handing over to transportation. Shipping points (organizational units) determine where and how deliveries are processed, and route determination helps plan how goods reach the customer.

Key elements

  • Shipping point: where deliveries are processed.
  • Picking & packing (integrating WM/EWM, handling units).
  • Goods issue completing dispatch.
  • Route & transportation handover (to TM where used).

Integration

Shipping integrates SD with warehouse management (picking), inventory/finance (goods issue), and transportation management (freight). It turns the delivery document into physical movement of goods, and its efficiency directly affects customer service and delivery performance.

Common pitfalls

  • Shipping-point configuration errors, wrong delivery processing.
  • Picking bottlenecks delaying dispatch.
  • Goods issue not posted, incomplete shipping.

Practice challenge

+0 XPStreak ×0
Question 1 of 3
Which statement is true of Shipping?

Frequently asked questions

What does the term Shipping refer to in SAP?
Shipping in SD covers the processes around getting goods to the customer, delivery processing, picking, packing, goods issue and transportation handover. It is the execution layer of outbound logistics within SD.
What else is worth knowing about Shipping?
Shipping integrates SD with warehouse management (picking), inventory/finance (goods issue), and transportation management (freight).
What is the practical takeaway on Shipping?
Shipping manages the physical dispatch: creating and processing deliveries, picking and packing the goods, posting goods issue, and handing over to transportation.
What tends to go wrong with Shipping?
Shipping-point configuration errors, wrong delivery processing. Picking bottlenecks delaying dispatch. Goods issue not posted, incomplete shipping.
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