Shelf Life of a product is the period for which it can be stored and consumed while ensuring quality and regulatory requirements are met. The shelf life of perishable food items, such as fresh fruits and vegetables, maybe only be a few days, while processed foods, such as canned or frozen foods, may have a shelf-life of several months or even years.
Similarly, pharmaceuticals and medical devices may have varying shelf-life lives depending on their formulation and storage requirements.
Therefore, Shelf-Life Planning is essential to any product development and manufacturing process. It ensures that products are safe, high-quality, and meet regulatory requirements throughout their shelf life. However, Shelf-Life Planning can be complex, and manufacturers may face several challenges in implementing an effective shelf-life plan. Product variability or variations in raw materials, packaging, processing, and storage conditions all impact the shelf-life of products. Meeting regulatory requirements, conducting expensive shelf-life testing, and navigating complex supply chains for such products pose several challenges for manufacturers.
Shelf-Life Planning was introduced as part of IBP release 2211 within the scope of Response & Supply planning. The pre-requisite to implement this functionality is to have a planning area based on SAP7F (Order-Based Planning Based on Flexible Master Data) and RTI integration enabled.
The functionality helps companies/industries to deal with perishable products such as Pharmaceuticals, Foods & Beverages, and Chemicals to name a few.
Some of the reasons why this is considered a critical feature are:
Here’s a detailed process flow of the solution
1) Product: This MDT has been enhanced to include 2 attributes: ‘Shelf-Life Planning Active’ and ‘Minimum Remaining Shelf Life
2) Location Product: This MDT has also been enhanced to include both shelf-life-related attributes as mentioned in Product MDT.
3) Transportation Lanes: RTI generates Transportation Lane based on Purchase Info Record and copies its value into this MDT, including the Remaining Shelf-Life information.
4) Production Data Structures: RTI generates PDS in IBP based on the Production version (combination of BOM and Master Recipe / Routing). Attribute of the PDS ‘Shelf Life of Planned Production’ gets populated based on MRSL maintained in S/4 material master.
1) Forecast: As shown below, there is a forecast requirement of 5 PC on 01.04.2023. MRSL requirement of this forecast is determined as 120 (Picked from S/4 material master). This means the supply element (existing one or new one generated) should have expiration date of at least 30.07.2023 (01.04.2023 + 120 days) or later.
2) Sales Order: As shown below, there is a Sales Order of qty 10 PC with material availability date (MAD) as 17.04.2023. MRSL requirement of this sales order is determined as 44 days (This is calculated as a difference between SLED of batch [31.05.2023] assigned and MAD [17.04.2023]). This means the supply element (existing one or new one generated) should have expiration date of at least 31.05.2023 (17.04.2023 + 44 days) or later to meet this sales order requirement.
3) Stock: RTI allows to integrate batch stock from S/4 to IBP. Similar, to other master data elements, it requires to generate & activate integration model for stocks.
With this data setup in place, as the next step performed the supply planning run based on Finite Heuristic planning engine.
To publish the planning results from IBP to S/4, we need to run the job in IBP based on the template ‘Real-Time Integration (Outbound)’.
Similarly, after integration PRs for “Raw material” are also synched both between IBP and S/4 as shown below:
Shelf-Life Planning is a critical aspect of any business that deals with perishable goods, and SAP IBP Response & Supply Planning provides an efficient solution for this process. With the help of ArchLynk's domain expertise and by leveraging SAP IBP's advanced capabilities, including real-time data analytics, predictive modeling, and scenario planning, businesses can optimize their inventory management and reduce waste, leading to increased profitability and customer satisfaction. ArchLynk's deep understanding of SAP IBP and their commitment to providing excellent customer service make them an ideal partner for any business looking to improve their shelf-life planning processes. To learn more Speak to an Expert.