This is my first SAP blog and this blog is a bit specific to the Upstream Oil Industry.
Purpose of this blog: This blog will give an overview of the pre-task or the important information – which can be considered – when a customer is planning to implement a logistics solution for an Upstream Oil Industry in SAP S/4HANA
SAP Remote Logistics Management(RLM) is one of solution which SAP offers – to manage the logistics process in Upstream Oil industry.
There are various factors, which needs to be considered in Upstream Oil Industry – when the materials are requested from offshore installation to base location, for example – strategies like – whether material is stockable at base location or whether it needs to supplied directly from supplier or whether requirement can be fulfilled from offshore installation itself etc.
However, SAP RLM is part of the SAP S/4HANA compatibility scope, which comes with limited usage rights. This means that you cannot use Remote Logistics Management (RLM) after the expiry of the compatibility pack licence and it’s up to each customer to decide when (based on which of the upcoming SAP S/4HANA releases) they want to implement the designated alternative functionality. There is an alternative functionality called “Field Logistics” in SAP S/4HANA.
- If a customer is planning to migrate from SAP ECC to SAP S/4HANA,
- If a customer is already in SAP S/4HANA with SAP RLM implemented and is planning to implement Field Logistics
- First and foremost, thing to consider here is that – there no direct conversion from Remote Logistics Management (RLM) to Field Logistics is possible and a new installation is required. Further details on this topic can be found in the SAP Note: 3046934
- Both the solutions are activated by activating the Business function i.e. For RLM, Business function REMOTE_LOGISTICS_MANAGEMENT_I needs to be activated and for Field Logistics, Business function FIELD_LOGISTICS_OP needs to be activated.
However, having both the business function activated in the single SAP instance can cause inconsistencies for example –
- RLM works with Warehouse Management mainly. FL works with EWM. It can create complications.
- RLM works with LE-TRA shipment. FL works with TM or API based integration with other solutions. This will create a major confusion if they remain in the same box
- FL and RLM integrate with certain common fields within modules like EAM which might trigger both FL and RLM processes for a maintenance order.
- Recommendation would be to use separate boxes for RLM and FL processes. Gradually migrate a specific set of plants (Note: Offshore installation & Base Supply are logically mapped). So RLM process remains in the current box and FL moves to a new box. There will be a need for a few FI, Inventory management and master data interfaces in the interim period.
3. Also, there are certain limitations in the Field Logistics solution(On premise version) which has been clearly explained in detailed in the SAP Note: 3232499.
Feel free to leave feedback/remarks or comments. I will try to deep dive in various process offered by Field Logistics in different scope IDs as mentioned below –
- Field Logistics Planning and Execution – Scope ID 40G
- Field Logistics Planning and Execution – Supplier Items – Scope ID 4AH
- Field Logistics Planning and Execution – Direct Procurement – Scope ID 5OM
- Field Logistics Planning and Execution – Containers and Voyages – Scope ID 6BA
Note: SAP Field Logistics can also be used in other industry sectors such as – Mining, Wind Turbines – where there is the concept of moving goods from Onshore Plant to offshore plant or vice vers based on certain strategies as stated above.