SAP Logistics Execution (LE) Overview

The SAP Logistics Execution (LE) is used to map the logistical processes of a company. It covers the entire supply chain process - vendor, warehouse, production , distribution & customer. SAP Logistics Execution (LE)  comprise of:

1- Inbound process in which goods are collected from the vendor and placed in storage in a warehouse.

2- Outbound process in which the goods are removed from storage and delivered to the end customer.

3- Internal warehouse processes for example posting changes, stock transfers , WM inventory etc.

4- Transportation process which includes inbound and outbound shipments and the calculation , settlement of shipment costs. 

SAP Logistics Execution System (LES) is an integral part of the supply chain. SAP Logistics Execution System (LES)  can be integrated into an SAP R/3 System as well as with SAP APO, SAP BW etc.

The logistics process can be subdivided into the following main processes: Sales Order [SO]Processing for GI [goods issue] and Ordering (PO processing) for GR [goods receipt].
 
SAP Logistics Execution (LES) represents the link between the Sales and Purchase processes [SD and MM]. The link between the various components in the supply chain with the addition of LES is as follows:

Information about material requirements is passed on to MRP [Material Requirement Planning] component in MM from Sales orders. Then these requirements are passed on to internal or external procurement where these requirements are processed by Procurement or Production components in Production Planning [PP] . 
The Inventory Management component (IM) processes [GR] goods receipts, [GI] goods issues, reservations, posting changes, & stock transfers to make required stock available in the warehouse. 
 
The Warehouse Management system (WMS) processes the warehouse stock movements. From there the logistics movement is processed in the Shipping component. Finally the process is completed in the Billing component. The Billing component is integrated with internal Accounting [CO] and external accounting [FI]. In Invoice Verification, the "Value flow" is updated.

SAP Logistics Execution System (LES) 
consists of Delivery Processing, Warehouse Management, Transportation in the SAP modules.  The Warehouse Management (WM) system is integrated with Inventory Management[MM], Inventory samples [QM], Delivery processing [SD] and wages [HR].

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