SAP SD Tutorials: sales Kitting with EWM

Product kitting, also called product bundling in some software systems, is an inventory management term that refers to the process of combining single items into one unit for sale. When a kitted item is purchased, the inventory system automatically links each single item to the sale. Goods sold both by the piece and as part of as a set, subscription box products, and products assembled on order all are examples of kitting in action.

SAP has provided the functionality in the EWM to use the kitting process.

Two processes are supported in the SAP EWM which are as described below . 

Kit to Order:

Here the process flow begins with ERP/CRM sales order. Kits are built dynamically based on customer order requirements. Once the order is received the availability check gets triggered for the kit components. At times some of the kit components might be used in multiple kit assemblies. The availability check helps to identify the shortage of component stock immediately.

Steps:

1. Automatic creation of outbound delivery order in EWM from sales order
2. Automatic creation of kit order
3. Picking and staging of kit products
4. Building of kit in work center as per kit order
5. Moving final kit product to staging area
6. Posting goods issue

Advantages

• Reduce inventory cost by storing kit component and assembled kits just before delivery
• Respond quickly and economically to increased retailer demand for custom kits

Kit to Stock:
In this Kitting process kits are pre-built to be stocked as an individual SKU. The availability check is triggered when the kit stock level falls below the defined MBQ. Kit to stock can be initiated through ERP production order or EWM kit order.

Steps:

1. Create kit order for kitting
2. Automatic creation of outbound delivery
3. Order for picking kit components
4. Automatic creation of inbound delivery to put away the final kit product
5. Picking kit components in RF
6. Assemble kit as per kit order
7. Put away the kit into stock in RF
8. Posting for goods issue for kit parts and goods receipt for final kit

Reverse Kitting: 
When there is a demand to deliver kit components individually, the kits are disassembled into their components. The process of disassembling of a kit into its components is known as reverse kitting. It can only be initiated with EWM kit order. Once the disassembling is complete the kit components are put away in the warehouse stock.

Steps:

1. Create kit order for reverse kitting
2. Automatic creation of outbound delivery order for picking kit product
3. Automatic creation of inbound delivery to put away the components
4. Picking kit product
5. Disassembling kit product using kit order
6. Put away the kit product into warehouse stock
7. Posting of goods issue for kit product and goods receipt for components

Advantages

• Helps to speed up the subsequent customer order fulfillment processing

EWM supports kit-building both on an order-related and anonymous basis for the inventory as well as the dissolution of existing kits into its components. The kit can be integrated with other SAP systems (SAP ERP and SAP CRM) or EWM-internally.