Inventory Transfers_introduction

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Slide 3

Recap on consignment
Any Stryker owned inventory that is at an account in the field.
Some examples of accounts include:
Customer
Repstock/Split accounts (IT)
Branch Stock (IH)
Scope of Slide
Global
Reason:
An important part of managing consigned inventory is knowing what you have on hand through views in SAP.
Some of our products are sold through the consignment process. This is when the product is stored at our branch location, a shared rep inventory location, or our customer’s location but is still owned by Stryker.
Consignment stock is stored at a specific consignment location and are billed as they consume product during medical procedures.
Sales Org: 1710
Distribution Channel: 10
Division: 70

Slide 4

Inventory Flow in SAP – Plant Level View
Plant 0050
Consignment Inventory
Plant 0046
(Bloomington–T&E)
Plant 0044
(Arlington–T&E)
Plant 0002
(CDC/Selzach Kits–JR and T&E )
Plant 0039
(Mahwah/FRC/VAS–JR)
Distribution Center Vs Consignment Plant
Consignment inventory is held within plant 0050 and remains there regardless of branch and account type
Warehouse inventory held within each CDC (Central Distribution Center) / DDC (Divisional Distribution Center) which have their own unique plant number. For example, the CDC in Bloomington for Upper Extremity product is plant 0044. This plant will send and receive consignment inventory from the field locations.
Key
🟢 Shipped Inventory – DDC sends inventory to the field increasing consignment
🔴 Return Inventory – Consignment account returns inventory to the DDC
Consignment Inventory
Consignment Inventory
Consignment Inventory
Consignment Inventory
Drop Off/ Pick up
Drop Off/ Pick up
Drop Off/ Pick up
Branch 1IH7274- Pittsburgh PA
National Loaners
IH7420-NL Mahwah
Customer 3
210505-Cooper Univ. Health Center
Customer 2
210746- UPMC Pinnacle Carlisle
Customer 1
210883- UPMC Pinnacle Health
IT3010- Pittsburgh
(Shared Rep)
Drop ship materials are separate from this and will be consigned out of plant 0003. This will be covered later in the course

Slide 6

Consignment order activities
Consignment Fill Up (ZKB)– An order type used to process a delivery of inventory to a consignment location. (STANDARD IMPLANTS ORDER)
Consignment Issue (ZKE)– An order type used to generate an invoice and issues product out of a consignment location. (BILL ONLY)
Consignment Pick Up (ZKA) – An order type used to process a return of inventory located at a consignment location back to the Distribution Center. (RETURNS)
There are 7 order types within SAP
The 5 major order types that are carried out in SAP that impact consignment.
Consignment Expense (ZKEM)– An order type used to expense consigned inventory to an internal house account by removing it from consignment stock.
Consignment Credit/Return (ZKR)– An order type used to credit a customer and return inventory to consignment.

Slide 7

Sales order activities
The 2 other order types that, while not impacting consignment stock, still support Field Inventory business processes.
Ship and Bill (ZOR)– An order type used to bill and deliver inventory to a customer.
Expense and Ship (ZHA) – An order type used to process a delivery of Inventory from the Distribution Center to a location and expense to an internal house account.

Slide 8

Introduction Consignment order activities
Stryker’s confidential information – for internal use only
Slide title for reference
Scope of Slide
Global
Plant: 0002
CDC1
ZKB Sales order (Consignment fill up)
Distribution Center
Plant: 0050
Customer: 210883
UPMC Pinnacle Hospital
Customer
Stryker Owned Inventory
When a ZKB order in SAP is processed, the distribution center will ship that product to a customer account. Stryker will maintain ownership of the product. This inventory is now considered consignment.
Consignment fill up Example:
Note: The ZKB can be used for both increases to order implants and instruments, as well as replenishments for usage from a surgical case.

Slide 9

Introduction Consignment order activities
Stryker’s confidential information – for internal use only
Slide title for reference
Scope of Slide
Global
ZKE Sales order (Bill Only)
Plant: 0050
Customer: 210883
UPMC Pinnacle Hospital
Stryker Owned
Customer Consigned
Ownership Transfer to Customer
When a ZKE order in SAP is processed, usage is entered to capture inventory implanted and purchased. Stryker will invoice the customer for the products used and ownership of inventory transfers from Stryker to the customer. The inventory is now considered customer sold.
Consignment Issue (Bill only) Example:
Customer Owned
No longer in inventory
Note: The ZKE is primarily used for implants consumed within a surgery out of consignment

Slide 10

Consignment process overview
Distribution Center ships inventory to customer and/or branch. Stryker maintains ownership.
Business creates
Consignment fill up order and delivery
Business creates consignment pick up order. SAP generates return delivery
Create consignment issue (Bill Only) order
Consignment Request
Bill Only
Return to DDC
Inventory Credit
Generate invoice
If customer credit is needed
If consignment stock is sold to customer
Create consignment return order referencing consignment issue (Bill Only) order
Return product to consignment location
Transfer ownership back to SYK
If inventory is not needed
Replenishment order
Transfer ownership of the sold inventory to customer
ZKB
ZKE
ZKR
ZKA
Distribution Center receives inventory
Note: While other order types exist, the ones mentioned above are the most commonly used to support business operations.

Slide 13

How inventory is added to the field
Inventory is added to the field using sales orders within SAP.
There are two methods listed below:
Primary Method: Consignment Request Tool (CRT)
Primary way to add inventory to the field
Used for both implants and instruments
Requests are reviewed and guided by Commercial Operations
Exception Method: Manual SAP Order
Alternative way to add inventory to the field
Used for both implants and instruments
Used for very specific business approved use cases
⚠️ Important: Manual SAP orders (ZKB) will be monitored and reported on to ensure business rules are followed. This method should only be used for approved exception scenarios.

Slide 14

What is CRT?
The Consignment Request Tool (CRT) is an internally built Power App used to request new consignment inventory, including implants and instruments. It serves as the front door for all consignment ordering activity initiated by local branch operations.
How the CRT Works
Branch teams submit consignment requests through the CRT
The tool pulls historical sales and usage data to support informed decisions
Commercial Operations reviews each request and recommends appropriate quantities
Once approved, the CRT populates a standardized order template, enabling accurate and efficient sales order creation in SAP
Why the CRT Matters
Controls consignment inventory placed in the field
Provides centralized oversight and governance of consignment orders
Enables data-driven quantity decisions, reducing excess and imbalance
Improves inventory management, consistency, and accountability
Prevents uncontrolled or ad-hoc ordering while still supporting field needs

Slide 15

Start a new CRT request for new consignment
Create new request
1
Request type (new kit, swap, Mako)
Customer / field site
Shipping instructions
Identify key details
2
Attach items and send request to Commercial Operations for approval.
Add items & submit
3
They provide recommendations and required approvals.
Comm. Ops review
4
You receive feedback; make any required changes.
Request updates
5
New consignment Inventory in CRT Process Flow
After approval, submit final CRT; Commercial Ops receives email and will upload template to SAP to create order.
Submit complete request
6

Slide 18

Create Order in SAP with CRT
After approval, submit final CRT; Commercial Ops receives email and will upload template to SAP to create order.
Submit complete request
6
An email is sent to the Commercial Operations Field Support team containing an SAP upload template, which is used to create the sales order directly in SAP.
Detailed instructions for using this template are covered in Module 4.

Slide 19

When to use CRT vs Manual SAP Orders (Recap)
New Customer Consignment Request
Additional Branch Stock
New Branch & Customer Kit Request
New MAKO robot placement requiring additional consignment
Instrumentation Components for Kit Build
New surgeon requests for inventory
Inventory Swaps
Trauma Inventory Agreement(if consigned to branch prior to customer ownership)
Instrument Replacement(this will be placed on a ZHA-expense order which will be covered in another section)
Additional Replenishment due to missed usage
Replacement for missing inventory
Patient Specific orders to include Prophecy & Blueprint
Human Tissue/3rd Party Supplier Inventory Request (Consignment drop ship)
Custom Implants & Instruments
National Loaners replacements for kitted inventory (National Loaner team only)
Consignment Request Tool (CRT)
Manual SAP Sales Order (ZKB)

Slide 21

Introduction to t-codes
In SAP, a Transaction Code (T-code) is a shortcut that allows users to quickly access a specific function or task within the system. Instead of navigating through multiple menu paths, users can enter a T-code in the command field to jump directly to the desired screen
Example:
T-code MB58 Display Consignment Inventory
T-code VA01 allows creating of a Sales Order.
Where to Enter a T-code:
In the SAP GUI, find the command field at the top (it usually starts with /n (for new page) or /o for new tab).
Type the T-code (e.g., /nMB58) and press Enter.
Prefix
Meaning
/n
Ends current transaction and starts a new one
/o
Opens a new tab with specified transaction
/i
Closes current tab
/nex
Closes all tabs (log off)

Slide 23

Manual SAP Order (ZKB) - Business scenarios
Additional Replenishment due to missed usage
Replacement for missing inventory
Patient Specific orders to include Prophecy & Blueprint
Human Tissue/3rd Party Supplier Inventory Request (Consignment drop ship)
Custom Implants & Instruments

Slide 24

Consignment fill up – customer (ZKB)
User creates the sales order using VA01.
Apply header information (Sold To, Ship-To, Customer Reference, Order Reason)
Add additional partner functions (Special stock partner, branch)
Enter materials and quantities
A consignment fill up order is used to create or enhance the customer’s consignment stock.
Here are the steps for a manual ZKB (consignment fill up) directly in SAP:
Check incompletion log and save order

Slide 26

Ship method definitions - Replenishments
SAP Code
Ship Method
Description
When to Use
Cost Ranking
01
Dom Next Day 8 AM (Overnight)
Delivers by 8:00 AM next business day.
For critical, high-priority orders needing early morning delivery.
1
02
Dom Next Day 10 AM (Overnight)
Delivers by 10:00 AM next business day.
For the majority of replenishments that require morning delivery.
This is the default shipping method for WebOps and works with order consolidation.
2
03
Dom Next Day 3 PM (Overnight)
Delivers by end of next business day (≈3 PM).
Standard overnight delivery for quick turnaround.
3
04
Dom 2nd Day 11 AM (Second Day)
Delivers by 11:00 AM on the second business day.
For important but not urgent shipments.
4
05
Dom 2nd Day (Second Day)
Delivers by end of second business day.
Cost-effective two-day shipping option.
5
06
Dom Express Economy (Third Day)
Delivers within three business days.
Cost-effective Three-day shipping option.
6
07
Hold for Pickup
Held at carrier facility for customer pickup.
When a sales rep prefers pickup or delivery isn’t possible.
N/A
20
Ground (Ground)
Standard ground shipping; 1–5 business days depending on distance.
Most cost-effective when there are no time constraints for delivery.
7
ZS
Saturday Overnight (Saturday)
Delivers Saturday by end of day.
For urgent weekend deliveries or Saturday commitments.
N/A

Slide 27

Document flow
The document flow can be used to view all documents, and its status, related to the sales order that are generated by the system after initial order entry.
Examples of documents found within the doc flow include:
Delivery documents
Return delivery documents
Goods issues
Invoices
Purchase order
Scope of Slide
Global

Slide 33

CRT Upload Template for SAP (ZOTCSOUPD)
Once final approval is received in CRT from Commercial Operations, an email containing the upload template (ZOTCSOUPD) is sent to the requester.
Email from CRT Contains:
CRT order number (CR #)
Attachment for ZOTCSOUPD upload template for SAP to create the order
Customer information: Sold to, Ship to, Special Stock partner
Materials and Quantities
Order Reason
Ordering Branch Partner
ZOTCSOUPD Upload Template

Slide 35

Common Errors when Uploading using ZOTCSOUPD
Incorrect customer
Check that the customer is active in SAP by reaching out to CDGO
Data mapping
SAP error message will instruct user what data needs review
Obsolete/incorrect material
Revise the request in CRT with different material
Product registration not present or up to date
Contact RAQA team for guidance
Large upload batch
Upload less than 100 orders at a time
Click here for the detailed FAQ

Slide 36

Note: Avoid OneDrive paths; they are typically long, using ~60-80 characters before project folders
ZOTCSOUPD: File path character limit
1. Deeply nested source file
2. SAP truncates file path
Critical: Character limit reached
The file name is cut off
3. Upload Fails
Issue: Hard character limit for the file path
Symptom: SAP “cuts off” the end of the file path
Solution: Save your templates to a “shallow” folder (e.g. Desktop)

Slide 37

List of sales orders report: VA05
The list of sales order report (VA05) allows you to view, filter and manage sales orders. It can also easily be exported to Excel for further analysis.
Use this report to see a list of orders by:
Sold-to
Material (part number)
Document (order) number
Purchase order
Division
User name - orders you entered
And more!
Scope of Slide
Global
Common uses for VA05 by inventory analysts
Research Bill-Only & Replenishment
Light analysis during cycle counts

Slide 40

ZHA Expense & Ship Introduction
Stryker’s confidential information – for internal use only
Plant: 0002
CDC1
ZHA Sales order (Expense & Ship)
Distribution Center
Branch: 7274 Pittsburgh PA
Field Site
Branch
Stryker Owned Inventory
ZHAs can only be processed in SAP
What is a ZHA order type?
It is used to process a delivery of inventory to a location and expense that inventory to an internal house account.
Note: The ZHA functions like a ZKB but does NOT consign the inventory to the customer. The inventory shipped on this order type is expensed upon shipment and therefore Stryker does NOT maintain ownership. The inventory will not be traceable after shipping is complete within SAP.
Stryker Owned
Inventory
Expensed
Inventory

Slide 41

ZHA business scenarios
The business scenarios listed below require the field to use a ZHA order type to ensure the correct financial handling of inventory.
Business Scenarios for ZHA:
Med Ed events such as T&E Labs
Instrument replacement for broken instrument
Instrument replacement for lost/missing instrument
Samples for Sales Team
Completing Incomplete Instrument Kit (in depth training covered in module 7)
Donations in Kind

Slide 42

IH account importance
The most important part of processing a ZHA order is to ensure the branch’s IH account is captured in the sold to within the Sales Order. In the example below Delaware Valley is the branch and the corresponding IH account is IH7060.
SAP Sales Order Header Information:
Why is the IH account important?
For all inventory shipped out on a ZHA, Stryker must expense inventory against the correct cost center to accurately capture the financial handling of the transaction. The IH account is important because it maps to a cost center where inventory can correctly be charged.

Slide 44

ZHA and Order Reasons
Order Reason determines financial treatment of the expense within a ZHA. Ensure to fill out the correct order reason for each business use case:
Order Type
Business Use Case
CRT vs Manual
Order Reason
ZHA
Order Missing Components for incomplete instrument kit (Instruments only)
Manual
ZKC - Kit Components
ZHA
Donations in Kind
Manual
ZBP - Donation
ZHA
Instrument Replacement (Instruments only)
Manual
ZBN - Replacement-Worn, Damaged
ZHA
Sample Implant or Instrument / Mobile T&E Labs using one-time ship to address
Manual
ZBT - Sample
ZHA
Lost or Missing Instruments (Instruments only)
CRT
ZBH - Replacement - Lost, Missing
ZHA
Instruments ordered to sell out of branch (not shipping directly to customer)
(Instruments only)
Manual
TOO – Transfer of Ownership
Note: The table to the right shows which General Ledger account each order reason posts to, helping you understand the resulting impact on the P&L statement.
Order Type
Order Reason(s)
GL Account
ZHA
ZBN / ZBH / TOO
Instrument Replacement
ZHA
ZBP
Donations
ZHA
All other order reasons
Sample Cost

Slide 45

What do the ZHA and ZKB order types have in common?
They are both expensing inventory and charging an internal house account
They are both consigning inventory to an account
They are both shipping inventory from a distribution center to a customer or branch location
They can both be initiated in WebOps and SAP

Slide 50

Consignment Transfer business scenarios
A Transfer is carried out systematically to move inventory from one location to another. This help with accurate and timely reporting for where the inventory is located.
Why do we transfer inventory?
Scenario
Branch to Branch
Delaware Valley is sending inventory to the Denver field site. (For long term use)
Branch to Customer
Delaware Valley is sending inventory to UPMC for surgery replenishment.
Customer to Branch
UPMC is reducing consignment inventory and returning to the branch.
Customer to IT-EXP Account
Product due to expire within customer consignment, returned to the branch for future scrap adjustment.
IT to Branch
Reducing sales regional inventory and returning to the branch.

Slide 51

Consignment Transfer Process
Systematically within SAP, the product must be transferred first into a virtual storage location before it is moved into the receiving account.
During a consignment transfer, the product is physically moved from one account to another.
Physical Movement
Systematic
Movement
Hospital Consignment Account
Hospital Consignment Account
Branch Consignment IH Account
Virtual Storage Location
Branch Consignment IH Account

Slide 52

Methods for processing Transfers in SAP
Method
T-Code
Movement Types
When to Use
Method 1
(Upload Template with SAP)
ZPTPINVLOC
997 & 998
Transfers greater than ~20 lines of data
Transacting Serialized Products
Transfers for Cycle Counts
Method 2
(Direct Entry in SAP)
MIGO
997 & 998
Transfers less than ~20 lines
Transacting Batch products (serialized is allowed but inefficient)
There are two methods to process the 997 and 998 movements for consignment transfers which have differences on when to use.

Slide 53

Consignment Transfer Process
998 movement type transfers consignment from the sending account to a virtual storage location
Inventory is transferred in and out of the virtual storage location 00KC.
997 movement type transfers consignment from the virtual storage location to the receiving account
00KC
Systematically within SAP, the product must be transferred first into a virtual storage location before it is moved into the receiving account.
Notice there are two different transactions to complete a transfer. These will be handled by an upload template using a t-code ZPTPINVLOC which processes the movements.
998 movement MUST be followed up by a 997. If these transactions are not completed in tandem, then this will create clean up activities which will impact the entire US field.
The user who initiates the 998 must complete the 997.
1
2

Slide 54

ZPTPINVLOC – Process Consignment Transfer
Method 1:
T-Code: ZPTPINVLOC
This method can be used to transfer a large amounts of inventory quickly using an upload template which is downloaded from SAP.
-Using 998 and 997 movement types for consignment transfer
Important! User must know what materials are serialized versus batch to fill out upload template correctly or SAP will return an error.

Slide 55

ZPTPINVLOC Transfer and Material Documents
Document Header Text should be used as a distinct field to identify the transfer and all contents later. It can be used as a unique value up to 5,000 lines.
Material Document (Shown as Message Text) Material documents are created in 500-line increments. Transfers with more than 500 lines will result in multiple material documents.

Slide 57

Keeping WebOps in Sync with SAP
There is no integration for transfers from SAP to WebOps. It is important to keep WebOps in sync with SAP to ensure accurate inventory management and billing.
To keep these two systems in sync, the user must process a transfer in WebOps if it’s done in SAP. The user must know the material, batch or serial, quantity and inventory locations to process the transfer successfully.
Note: Not all transfers processed in WebOps will warrant a transfer in SAP.
Example: Any capitalized instrument transfer from branch to customer will only be processed in WebOps

Slide 60

Using DataLoad
The data loader is an existing tool that allows users to upload large quantities of data to WebOps to perform various actions more conveniently.
Use cases:
Mass transfers
Receiving new inventory
For instructions on using DataLoad, consult your local subject matter expert.
DataLoad connects to WebOps by selecting the Transfer Edit tab from Chrome in the Window drop down. Ensure your cursor is in the Scan Items field of the WebOps Transfer screen.
1
2
3
1
2
3
5
4
5
4
Use the Blue Arrow button to execute the load
Define the data in the spreadsheet fields
Users can set various options and preferences as needed
Users can set time delays & timeouts

Slide 61

WebOps vs SAP - Kits and Individual Components
Transfers in SAP must be conducted at the individual piece level for all inventory.
There is no transferring of kits because there are no field kits to transfer
This only applies to billable materials (no instruments)
Transfers in WebOps should be conducted at the individual piece level for implants and kit level for implant, instrument or combo kits.

Slide 65

A consignment pick up order (ZKA) reduces consignment inventory levels by transacting the stock out of consignment and returning it to the appropriate distribution center (physically and systematically).
Consignment Return process overview (ZKA)
Branch Operations team identifies and separates inventory
Branch Operations creates return order in
SAP (ZKA Sales Order)
Branch Operations packs & ships inventory back to receiving Distribution Center include Delivery #, ZKA # with shipment
Distribution Center receives inventory and closes out the ZKA sales order in SAP
Inventory must be approved by the Divisional Operations teams to be returned to specific distribution centers.
Branch Ops processes plant transfer from 0050 to the receiving plant
(i.e., Mahwah)
and
WebOps (Transfer)

Slide 66

Plant 0050
Consignment Inventory
Consignment Account
Account: 210883
Consignment Return - SAP
Plant 0046
(Bloomington–T&E)
993 W
632
T-Code: VA01Order Type: ZKA
Distribution Center
Sloc: 0002
Consignment
Account
Account: 210883
T-Code: MIGO
Branch Operations processes return in
SAP (ZKA Sales Order) and
WebOps (Transfer)
1) Using T-Code MIGO, the inventory is transferred from plant 0050 to the returning distribution centers plant of 0046 (Bloomington – T&E) with a 993 W movement type
2) Using T-Code VA01 with order type ZKA. Delivery drops, and inventory is transacted out of consignment and back to the Distribution Center. SAP will use a 632 movement type once inventory is fully received from the sales order. The Branch will then ship the product back to the receiving DC.
1
Note: After this transaction the inventory remains in the consignment Account
2

Slide 67

Consignment Return - WebOps
Inventory Location
Delaware Valley RDC - IH7060 - RDC
Inventory Location
Account: 210883
Create Transfer
Update Inventory Item Status
Returned
Branch Operations processes return in
SAP (ZKA Sales Order) and
WebOps (Transfer)
1) Process inventory location transfer from returning inventory location to dedicated RDC Inventory Location
2) Update Status of inventory item part to Returned
1
2

Slide 68

DC locations and associated products
The three Distribution Centers that allow for returns are plant 0039, plant 0046 and plant 0044. Only approved products that ship out of these facilities are allowed to be returned.
Ensure products are returned to the correct distribution center
Plant 0050
Consignment Inventory
Plant 0002
CDC/Selzach Kits-JR and T&E
Plant 0039
Mahwah/FRC/VAS-JR
Plant 0046
Bloomington-T&E
Plant 0044
Arlington-T&E

Slide 69

Perform plant-to-plant transfers in SAP (MIGO 993W)
In this demonstration you will learn how to process a plant-to-plant transfer using the MIGO t-code (993 movement). This will set up the inventory to be returned on a ZKA order back to the approved distribution center.
This is the First step you'll take in the consignment return process.
Note: As a prerequisite, the user must have a list of the products in which they plan to return. This list would consist of material, batch or serial, consignment customer, quantity and returning plant. This information is available for extract within t-codes MB58 (batch) or IQ09 (serial).

Slide 71

Execute transfer from branch to DC in WebOps
In this demonstration you will see how to execute a consignment transfer in WebOps. Once this step is complete, the user can ship the product out. Ensure the ZKA number is labeled on the packing slip prior to shipping out to the DDC.
This is the Third step you'll take in the consignment return process. This is the final step in the process.

Slide 73

Advanced MIGO Functionality
In this demonstration you will see how to configure your personal MIGO transaction screen to improve efficiency.
You will see how to:
Predefine your plant
Personalize the grid layout
Copy cell contents to quickly populate additional rows
Delete unwanted lines
Hold documents for later

Slide 74

Create ZKA using ZOTCSOUPD Upload Template
In this Demo you will learn how to create a ZKA (consignment return order) using an upload template in SAP. This will be done by using the ZOTCSOUPD t-code.
T-code Naming convention breakdown:
Z - Custom
OTC - Order to Cash
SO - Sales Order
UPD - Update

Slide 77

Click to zoom
What is a Commercial Hold?
A commercial hold is a temporary suspension of the distribution of a medical device from a Stryker facility due to concerns about its quality, safety, or regulatory compliance. In the context of WebOps, you will have visibility to these holds through system notifications and indicators.
SAP is the source of truth for all commercial holds and feeds this information to WebOps to create a “product quality action alert”.
The three types of quality holds integrated to WebOps are:
Product hold (material level)
Batch hold (excludes batch 0)
Serial hold

Slide 80

Commercial hold vs. PFA
Commercial hold
Temporary
Unable to ship product for duration of the hold
Customer consignment stays at customer site
Branch stock moves to quarantine
Held products can be billed
May not be returned to a distribution center (DC)
PFA
Cannot be lifted
Requires product to be removed from the field and returned to a DC
Branch stock moves to quarantine and is then returned to DC
Cannot be transacted/billed
All products must be accounted for and returned for compliance

Slide 81

Handling products on hold
Can
Return inventory to the Distribution Center (DC) (ZKA)
Process Bill Only transactions for consumed product (ZKE)
Perform Cycle Counts
Submit Inventory Requests (ZKB)
Receiving inventory (manually or via ASN
Cannot
Assign or ship kits
Transfer consigned inventory (customer -> customer)
Fulfill new consignment or replenishment orders from DC
Add inventory to kit
What you can and cannot do with PH materials

Slide 82

How to quarantine a product
To prevent products on hold from being used in the field, WebOps allows users to quarantine inventory. The following process outlines how to initiate and manage a product quarantine in WebOps to ensure compliance and traceability.
Follow Procedural Document D00713 for exact process steps.
Click to expand screenshots

Slide 91

Order types and reversals
🟢 Increase Consignment Levels
🔴 Decrease Consignment Levels
🔵 No Change to Consignment Levels
Initial Transaction
When to use
Business Scenario
Reversal Transaction
When to use
Business Scenario
🟢 ZKB – Fill up
Ship inventory from distribution center to branch or customer consignment
Replenishment orders
New consignment placement
Branch shelf stock
Branch Kits
🔴ZKA – Pick up
Ship inventory back to distribution center from customer consignment
Return inventory to Distribution Center
Consignment returns
🔴ZKE – Issue
Bill customer for consignment inventory (from branch or customer consignment)
Bill-only
Sale of consignment inventory
🟢ZKR - Return
Credit customer and return inventory to branch or customer consignment
Credit of bill only
Returns inventory back to consignment
🔴ZKEM- Consignment expense
For specific expense scenarios charging against a desired IH account
Donations in kind
🟢ZKRM- Consignment expense reversal
Reversing an expense charge and crediting a desired IH account
Inventory return from donation
🔵ZHA – Expense CC
Branch ops places a sample order for shipment to customer, expensed to branch IH account
Ordering samples
Expensed on shipment
🔵ZHR – Credit CC
Customer returns sample inventory and branch IH account needs to be credited
Credit sample order

Slide 92

Batch managed vs. serialized overview
Batch-Managed Inventory
Definition: Tracks materials in groups or lots.
Use Case: Used when you want to track materials by production lot, expiration date, or quality.
Tracking Level: Inventory is tracked by batch number, not individual unit.
Example :Many implants and disposables are produced in large batches, so it's common for them to have duplicate batches/lots.
Serialized-Managed Inventory
Definition: Tracks each individual item with a unique serial number.
Use Case: Used for high-value, unique, or regulated items where individual tracking is critical.
Tracking Level: Inventory is tracked per item/unit.
Example: Human Tissue is tracked by unique serial numbers due to regulatory requirements for traceability.
Feature
Batch Management
Serial Number Management
Tracking Granularity
By group/lot (batch)
By individual item
Uniqueness
Batch number shared by many
Each item has unique number
Common Usage
Implants, Consumables, bulk products
Equipment, regulated items
Traceability
To batch level
To single-unit level
Use case example
JR primary knee implants
Trauma instrumentation kit
Note: The detail level provided varies per batch and serialized t-codes
Important: SAP will treat batch and serialized differently.

Slide 93

Non-sterile (Open) Trauma Products in SAP
Overview
Some trauma products are considered open (non-sterile). In SAP, these materials are managed as batch-controlled items and are tracked using a batch number of 0.
How Batch “0” Works
When non-sterile inventory are delivered to the branch, the manufactured lot code is replaced with batch number 0
This indicates the product is non-sterile and open
Where You’ll See This
T-Code: MB58 (and other on hand reports)
In Sales Orders where open trauma products are transacted (i.e., ZKE – bill only order)
Example
Material: 40-30120
Description: ASNIS MICRO CANN SCREW, 3.0 × 20 / 5MM
Batch: 0
Example of a set of open trauma screws from an Asnis III tray.

Slide 95

Introduction to t-codes
In SAP, a Transaction Code (T-code) is a shortcut that allows users to quickly access a specific function or task within the system. Instead of navigating through multiple menu paths, users can enter a T-code in the command field to jump directly to the desired screen
Example:
T-code MB58 Display Consignment Inventory
T-code VA03 allows viewing of a Sales Order.
Where to Enter a T-code:
In the SAP GUI, find the command field at the top (it usually starts with /n (for new page) or /o for new tab).
Type the T-code (e.g., /nMB58) and press Enter.
Prefix
Meaning
/n
Ends current transaction and starts a new one
/o
Opens a new tab with specified transaction
/i
Closes current tab
/nex
Closes all tabs (log off)

Slide 96

Commonly used T-codes to manage inventory
When working with sales orders in SAP, consider what you want to do:
View on hand Consignment Inventory Use MB58
View on hand DC Inventory Use MB52
View Historical Inventory Transactions Use MB51
View Stock Overview Use MMBE
View serialized Inventory Use IQ09

Slide 97

Viewing on-hand inventory
MB58
Selection Type:
Multiple materials
Function: Allows for users to view current stocks of consignment materials at a customer's location. This shows batch detail
MMBE
Selection Type:
Single Material
Function: Provides an overview of current stock positions for a particular material in various organizational levels, such as plant and storage location.
MB52
Selection Type: Multiple materials
Function: Allows users to view current stock within a Storage Location (00KC) batch managed materials.
IQ09
Used to display a list of serialized materials based on criteria specified by the user. The user is able to customize the report by adding and removing columns, sorting and filtering, and exporting the report to Excel. SAP allows users to drill down to specific equipment records displayed on the report as well.
Use case: Viewing lists of equipment in a report
You will utilize several transactions codes in SAP to view on-hand inventory levels. This is crucial for proper inventory management.

Slide 98

MB52 Display distribution center stock
MB52 allows users to view current distribution center stock.
Input Parameters: Users can enter specific parameters such as the material, plant, storage location, and batch fields.
Display Results: The system displays the on-hand quantity of materials within Storage Locations. Users can hide or show individual batch number details by material number.
Analysis and Management: Users can analyze the displayed information to monitor the levels of inventory within Storage Location 00KC.

Slide 100

Practice activity
MB52 – Display distribution center stock of material
For this activity, answer the below questions.
Your instructor will call on the audience to answer the following:
What plant and storage locations is the material available at?
Export the report to Excel
What additional columns can be added to the layout to help with analysis?
How do you display batch numbers on screen?
Material
5515-F-301

Slide 101

MB58 View consignment stock
MB58 allows for users to view on hand inventory of consigned materials at a customer's location.
Input Parameters: Users can enter specific parameters such as the customer number, material number, plant, or other relevant criteria to filter the consignment inventory that they want to view.
Display Results: The system displays the on-hand quantity of consignment materials at the specified customer location, including material numbers, batches and quantities.
Analysis and Management: Users can analyze the displayed information to monitor the levels of consignment materials at the customer's location. This helps in managing consignment stock effectively, ensuring that the right quantities of materials are available taking into consideration what is reserved.

Slide 102

MB58 View reservation quantity
T-Code: MB58 Display Consignment Stocks at Customer
Example Calculation:Available Quantity (18) = Unrestricted (On-hand) Quantity (20) – Reserved Quantity (2)
Unrestricted (On-hand) Quantity: Total systematic stock in SAP.
Reserved Quantity: Stock committed to specific orders or transactions.
Available Quantity: Remaining stock free for transactions.
Ignore
What is Reserved Quantity and why is it important?
Reserved quantity represents the portion of unrestricted inventory that has been committed to specific transaction (bill only orders). These quantities are set aside and cannot be used for new orders or other inventory movements until the reservation is cleared or fulfilled.

Slide 104

Practice activity
MB58 – View customer and IH branch consignment
For this activity, answer the below questions.
Your instructor will call on the audience to answer the following:
What are some of the materials and quantities consigned to this customer?
Are there any reserved quantities?
Lastly, export your MB58 report to Excel.
Material
Customer
Batch
Quantity
?
210883
?
?

Slide 105

MMBE Check stock in a plant
MMBE Provides an overview of on-hand quantities for a particular material in a hierarchical structure; such as plant, storage location, and customer consignment.
Display Stock Levels: MMBE displays the current stock levels for a specific material across different storage locations within a plant or across multiple plants.
Stock Type Breakdown: MMBE breaks down the stock into different types, such as unrestricted stock, blocked stock, quality inspection stock, and in-transit stock. This breakdown provides insight into the status of the material and helps users understand where the material is located within the logistics process.
Batch and Serial Number Information: For materials managed using batch, MMBE provides details about the batches in stock, along with their respective quantities and statuses. For serialized products, MMBE only provides high level quantity and location data.

Slide 107

Practice activity
MMBE – Check stock in a plant
For this activity, answer the below questions.
Your instructor will call on the audience to answer the following:
What is available?
What plants do you have Free Stock available in?
How many total are available from within Free Stock?
Identify one batch number available within Free Stock.
Material
7650-2038A

Slide 108

IQ09 View serialized inventory
IQ09 allows for users to view serialized inventory across consignment locations and distribution centers.
Input Parameters: Users can enter specific parameters such as the customer number, material number, plant, or any other relevant criteria to filter the list of serialized parts.
Display Results: The system displays every serialized inventory record ever tracked in SAP, including items that are Stryker-owned, customer-sold, or expensed, providing a comprehensive view of all current and historical serialized inventory.
Analysis and Management: Users can analyze the displayed information to view specific serialized parts and their location and status.

Slide 112

Historical transactions key terms
Goods Movements- Represents stock changes from transactions like goods receipts, issues, or transfers. Each movement is identified by a specific three-digit movement type, which dictates how inventory quantities and accounting values are updated in the system.
Special Stock Indicator – This indicator is used in SAP to show that certain materials are managed separately from.
Material Document- A record that shows a movement of materials (like goods or inventory) in the system. Think of it as a receipt or proof that a transaction occurred to the material.

Slide 113

Historical transactions key terms
Goods Movements- Represents stock changes from transactions like goods receipts, issues, or transfers. Each movement is identified by a specific three-digit movement type, which dictates how inventory quantities and accounting values are updated in the system.
Example: 633 billed out on a bill only (ZKE) order type
Special Stock Indicator – This indicator is used in SAP to show that certain materials are managed separately from.
Important Note: “W” indicates consignment and this will be the only special stock indicator that relates to Field Inventory.
Material Document- A record that shows a movement of materials (like goods or inventory) in the system. Think of it as a receipt or proof that a transaction occurred to the material.

Slide 114

Viewing historical inventory transactions
MB51
Function: Allows for users to view transactional history for batch managed inventory at a plant or consignment level.
Note: If viewing serialized devices, history will only be visible at a material and quantity level.
IQ03
Function: Allows for users to view transactional history for serialized managed inventory, displaying the details of a serialized device in SAP such as location, category and status.
Note: Looking at specific details of a single piece of equipment
You will utilize two transactions codes in SAP to view historical transaction data. The two transaction codes are divided by looking at batch and serial parts. This is crucial for proper inventory management.
Batch
Serial

Slide 115

MB51 Display material documents (Batch Managed)
MB51 allows for users to view detailed transactional history for batch managed inventory.
When you access MB51 in SAP, you can specify various selection criteria such as material number, batch, plant, movement type, date range, etc., to filter the historical transactions you want to review. The output will show a list of material documents matching your specified criteria. These documents represent various types of material movements in the system, such as goods receipt (GR), goods issue (GI), stock transfers, etc.
Each material document displayed in MB51 is a unique record containing information such as document number, posting date, material, quantity, movement type, and other relevant details.
Users often utilize MB51 to:
Track and analyze the history of material movements
Check inventory changes
Investigate discrepancies during cycle count reconciliation

Slide 118

IQ03 Display material serial number (Serial Managed)
IQ03 allows users to view historical transaction data and detailed data for serialized inventory in SAP.
When you access IQ03 your selection criteria will comprise of a material and serial number. The output will show a specific serialized record containing all data attributes for a given serialized device. From within the equipment record, you can access the history, bringing you to all movement types, material documents, and posting dates for an individual serialized device.
Users often utilize IQ03 to:
Kitted Instrument Sets / UE Implants / Human Tissue
Track and analyze the history of material movements
Investigate discrepancies during cycle count reconciliation
Identify the location of a specific device

Slide 119

Navigating the history of a serialized device
Posting Date
IQ03 - Serialized Record
Material Document
Goods Movement
Plant
Click
Clicking history button within the equipment record (IQ03) will take you to the Serial Number History. This page will display all transactions related to that serial.

Slide 121

Group activityPractice using IQ03
In this group activity, your instructor will provide you with a material / serial to look up in SAP.
Answer the following questions:
Is the equipment in a SYK warehouse or with a customer?
What is the equipment type?
Is the equipment under warranty?
Material: ########## / Serial: #####
10 minutes

Slide 122

Goods movement explained
Slide title for reference
Scope of Slide
Global
A Goods Movement refers to any physical or logical movement of inventory within a plant. Goods movements are recorded in SAP to track inventory and ensure that material stock levels are updated accurately in real time.
Types of Goods Movements
Movement
Order Type
Description
Inventory Adjustment
972
N/A
Write off
Removes (-)
971
N/A
Write up
Adds (+)
711
N/A
Write off – Cycle Count Adjustments
Removes (-)
712
N/A
Write up – Cycle Count Adjustments
Adds (+)
551
N/A
Scrap / Wasted
Removes (-)
631
ZKB, ZKBT
Consignment Fill Up / Replenishment / Consignment Order
632
ZKA, ZKAT
Consignment Pick Up / Return to DDC
633
ZKE
Consignment Issue / Bill Only
Removes (-)
634
ZKR
Consignment Returns / Credit
Adds (+)
985
ZKEM
Consignment Issue Expense / Marketing Sample / Donations
Removes (-)
561
N/A
Initial Entry of Stock to SAP (Converted inventory from Oracle)
Adds (+)
997
N/A
Transfer into customer consignment from storage location
998
N/A
Transfer out of customer consignment and into storage location
993
N/A
Transfer plant to plant transfer
601
ZOR
Goods Issue Delivery (Selling to customer on standard order)
Removes (-)
983
ZHA
Goods Issue Internal Order
Removes (-)
655
ZRE2
Good Receipt (Customer Return)
Adds (+)
653
ZRE2 & ZREC
Goods Receipt (Customer Return on special order)
Adds (+)
101
N/A
Procurement of new Inventory from Vendor
Adds (+) (Depending)
311
N/A
Sloc to Sloc transfer for IM Plant
411
N/A
Sloc to Sloc transfer for EWM Plant
These movements can be used with “W” indicating a consignment transaction

Slide 123

T-code overview
T-Code
Description
Batch Visibility
Serial Number Visibility
Functions
MB51
Historical Transactions
✅ Batch numbers shown per document
✅ Serial numbers shown in movement details
Shows Historical Transactions
MB52
View Inventory in Storage Locations
✅ Batch numbers shown per location
❌ Serial numbers not shown
Shows on hand quantities in 00KC
MB58
Inventory On Hand Report
✅ Batch numbers shown
⚠️ Serial counts only (no list)
Shows on hand quantities by consignment location
MMBE
Stock Overview for all Plants
✅ Batch details shown (expand batch stock view)
⚠️ Serial count only, no specific serial numbers
Summarized view of current stock by location only for a single material
IQ03
Display Serial Number and History
❌ Not applicable
✅ Full details of individual serial numbers
Shows Historical Transactions, user status, location
IQ09
List of Serial Numbers
❌ Not applicable
✅ List of serial numbers for a material
Filter by material, plant, location, etc.

Slide 125

On Hand Inventory and Inventory Locations
Like SAP, Inventory will be held virtually within accounts called Inventory Locations in WebOps.
An Inventory Location is the equivalent of a consignment location. These locations are commonly matched 1:1 with SAP consignment locations with a few exceptions.
WebOps Navigation: Use the inventory dropdown on the menu bar and select Inventory Location to access an inventory location. The Inventory Location ERP Code is the equivalent to the SAP Account.
Example:

Slide 126

Inventory Locations within an IH – WebOps
The Inventory Locations making up a Branch or Hub’s (IH) inventory will be standard across the US. These inventory locations consist of:
Main (IH)* – Saleable Inventory distributed by the branch mostly kept as kitted inventory or shelf stock.
Repack (RE) – Inventory separated for return to a DDC for repack (FRC Returns)
QA Hold (QA) – Inventory separated due to a Commercial Hold or PFA
Excess/Obsolete (EO) – Inventory returned from a consignment or other source that can be used for internal or external branch needs/requests or holding space for items going through obsolescence
Exchanges/Swap/Upgrade (ESU) – Inventory awaiting fulfillment to use on an Exchange, Upgrade or Customer Owned Inventory Swap
Return to DC (RDC) – Inventory awaiting return or returned to a DDC
*During go-live only your main (IH) inventory location will be loaded with inventory parts. More to come in a cutover task with how other inventory parts will be loaded.
Important: Additional Inventory locations will require a Jira ticket and the locations will apply to all branch’s

Slide 127

Branch SAP consignment & WebOps inventory locations
Each brand contains multiple location types for inventory. SAP + WebOps work together to track them virtually.
IT7060-Delaware Valley NJ Expired
SAP
WebOps
IH7060 – Delaware Valley Field Site
DELAWARE VALLEY NJ FIELD SITE (Main)
DELAWARE VALLEY NJ ESU - IH7060
DELAWARE VALLEY NJ EO - IH7060
DELAWARE VALLEY NJ QA - IH7060
DELAWARE VALLEY NJ RDC - IH7060
DELAWARE VALLEY NJ RE - IH7060
Important Note:
Inventory must be as accurate as possible in both systems, and it will be a collaborative effort to keep them in sync
IT7060 –
Delaware Valley Field Site Expired
WebOps
SAP

Slide 128

View inventory in WebOps
Duration: 5 minutes
In this demonstration, see how Inventory Item Parts is used to view inventory at an Inventory Location. One use case of this function is to pull on hand at a consignment location.
Add to recording:
list of filters
Physical vs Inventory Location

Slide 129

On Hand Inventory and Inventory Locations within the Branch
Within WebOps this part is held virtually in an Inventory Location: UPMC Pinnacle HOSPS – 210883 under the
Within SAP this part is held virtually within a customer account - 210883 (UPMC Pinnacle HOSPS )
Material: 1059-4513 Batch: WM2035 Quantity: 1

Slide 130

Inventory Levels – WebOps & SAP
Important! There is no dedicated inventory sync between SAP and WebOps
Some inventory updates in WebOps will occur directly within billing and replenishment process, others will rely on the Operations Team to keep inventory accurate.
There are some processes where inventory will be adjusted from transactions in WebOps and SAP which are automated
SAP: ASN for outbound shipments
WebOps: Usage
There are other adjustments which will require manual processes to keep the inventory accurate
Cycle Count (WebOps True Up Tool)
Transfers
Returns
Miscellaneous adjustments (scrap, expired, etc.)
Automated
Manual

Slide 131

Inventory statuses
Inventory Item Status
An inventory status is assigned to every inventory item received into WebOps. The status changes due to an action occurring in WebOps that involves the item. For example, if a shelf stock item is added to a kit, the item’s inventory status updates from “Shelf Stock” to “Kitted.” Or if an item is used during a surgical procedure, it’s status updates to “Used.”
Manual Adjustments
If Inventory statuses are inaccurate; these can be manually updated by operations personnel
It’s important to note that inventory in WebOps must be maintained locally to match certain updates in SAP (i.e. scrap/write off).
Click the link below for all inventory statuses and if they are manually or automatically maintained.
WebOps 2.5 allows for mass item status change.
Link to Quick Reference Guide

Slide 133

View historical transactions in WebOps
When needed, a user can view historical transactions to a specific inventory part in WebOps.
Steps: Select Inventory Tab  Select Inventory Item Part  Enter in Lot or Serial Code  Select Search -> select hyperlink of material # under Product Code  Scroll down to History Section
Reminder: Update filters to include all item statuses (including used)
The History section shows:
What the transaction was (including updates to item statuses)
Who made the change under Changed by
What time it was changed

Slide 138

What is an Inventory Adjustment?
An inventory adjustment is a transaction used to correct inventory quantities in SAP when the physical stock on hand does not match what is in the system. These adjustments ensure inventory accuracy and have both operational and financial impacts, so they must be performed carefully and in accordance with business policies and procedures.
System
Physical
System
Pre Adjustment
Adjustment
Post Adjustment
System
Physical
-1

Slide 139

What is a scrap adjustment?
A scrap adjustment is an inventory transaction used to remove unusable or expired consigned inventory from available stock. This adjustment reflects the permanent disposal of items that can no longer be used, returned to inventory, or reissued for clinical or sales purposes.
The inventory is no longer usable, and we are physically scrapping. The business is certain material is at end of life – cannot be written back up.
Finance Treatment and Inventory Adjustment:
Systematically the Scrap adjustments are treated like write-offs, where the company absorbs a financial loss and the affected inventory is reduced from available quantities.

Slide 140

Business scenarios
Expiration Management: Most sterile products have a shelf life of five years. Once these products reach their expiration date and cannot be reprocessed or sterilized, they must be scrapped through the SAP scrap adjustment process.
Damaged: Products that are damaged during handling, logistics, or exposed to water must be scrapped using the scrap adjustment procedure in SAP.
Obsolete: When product lines are being phased out, the Commercial Operations team will notify branches and provide guidance on using the scrap adjustment to remove these items from inventory.
Miscellaneous: Other scenarios may arise where the business determines that products should be scrapped. Understanding and applying the scrap process correctly is essential for maintaining accurate inventory records.

Slide 141

Scrap approvals and limitations
Prior processing a scrap adjustment in SAP, users must work with their finance partners on cost calculation and abide by approval requirements and system limitations when using the ZPTPINVLOC upload template.
Approvals
Follow the established business approval process for all scrap adjustments.
Track the total adjustment amount against approval thresholds to ensure the correct authorizations are obtained prior to executing the transaction.
Limitations
The ZPTPINVLOC upload template has the following limits:
5,000 lines per upload
$250,000 maximum adjustment value
If these limits are exceeded, create and upload multiple adjustment templates.
Important! SAP will not display cost while processing scrap adjustment

Slide 143

Updating WebOps status
After the scrap adjustment (551 W)has been made in SAP, it’s important to update WebOps to reflect this change. This can easily be done in the Inventory Item Part list (screenshot).
Steps for mass update:
Go to Inventory  Inventory Item Part
Filter on the inventory that is scrapped
Select the inventory on the lefthand side using the checkboxes
Select Change Status
Select the Item Status “Dispositioned” and click apply
3.
4.
5.
6.

Slide 144

Inventory Adjustments – Outside of Cycle Count
Write Up – Movement Type 971 W
What it is:A write up (971 W) is used to increase consignment inventory in SAP when physical stock on hand is greater than what the system reflects, outside of a formal cycle count.
When it’s used:
Inventory is physically found but not recorded in SAP
Lot code issues found during billing
Inventory Impact:⬆️ Increases inventory quantity
Financial Impact:
Posts a financial adjustment to recognize the addition of inventory
(Cycle count equivalent: 712 W)
System
Write up Adjustment
+1

Slide 145

Inventory Adjustments – Outside of Cycle Count
Write Off – Movement Type 972 W
What it is:A write off (972 W) is used to decrease consignment inventory in SAP when physical stock on hand is less than what the system reflects, outside of a formal cycle count.
When it’s used:
Lost or missing inventory
Corrections identified outside of cycle count activity
Inventory Impact:⬇️ Decreases inventory quantity
Financial Impact:
Posts a financial adjustment to recognize the expense and removal of inventory
(Cycle count equivalent: 711 W)
System
Write off Adjustment
-1

Slide 146

ZPTPINVLOC - Processing write ups & write offs
This demonstration is broken out into two halves:
The first half will show how to write-off batch and serialized inventory using the ZPTPINVLOC t-code with a 972 W Movement
The second half of this demonstration will show how to write-up batch and serialized inventory using the ZPTPINVLOC t-code with a 971 W Movement

Slide 147

VA01 - Create consignment issue cost center (ZKEM)
In this demonstration you will see how to create a manual consignment issue charged to a cost center, using order type ZKEM. This order type acts to expense inventory out of consignment, charging a specific in house account and removing inventory within SAP.
Business Use Case:
Marketing Sample charged to the marketing IH Account
Donations in kind

Slide 148

Key terms and concepts
Term
Definition
IT Instrument Account (IT7999)
The virtual holding account in SAP that contains all serialized instrument kits in the field for Division 70.
Note: Batch managed instrumentation will be removed from inventory when sent into the field. This is pending a business decision and will update
Kit Family
A standardized group of kits tied to a product system. Kit families ensure consistency in the kits used across procedures.
Kit Instance
The physical version of a kit sent to a hospital containing the specific lot and serial number for the inventory. Kit instances are tied to a specific case and tracked individually for usage and replenishment
Kit Bill of Materials
A predefined list of components that make up a surgical kit. It outlines exactly which materials and quantities are included when a kit is assembled, shipped, or replenished.
ASN
Kit Header
This one material number that represents a bill of materials in SAP
Stryker’s confidential information – for internal use only

Slide 150

Learning objectives
Utilize the reporting tool to identify expired products
Understand the process for which you pull, return expired products
Process for reordering for expired products
Scrapping expired products in the field
Track and manage expiring products using WebOps

Slide 151

Key terms and concepts
Term
Definition
IT Expiring account
A type of SAP account used to hold products approaching or past expiration. These accounts allow the business to isolate and track inventory that needs to be reviewed for potential return, scrap, or replacement, often during expiration review cycles.
551W movement in MIGO
Used in SAP to scrap inventory from consignment or unrestricted stock. It’s a specific goods movement that adjusts inventory by removing stock that can no longer be used — such as expired, damaged, or obsolete materials.
Stryker’s confidential information – for internal use only

Slide 152

Expiration Management Tool is a digital solution that simplifies how Field Operations manage expiring inventory across consigned locations.
Expiration Management Tool (EMT)
Processes reorder requests for products approaching expiration
Provides actionable metrics to help prioritize inventory that needs replacement
Pulls data directly from Athena, leveraging SAP and GA records
Helps avoid excess or obsolete (E&O) inventory in the field
Supports an approval process for Commercial Ops to review and advise
Generates a clean SAP order upload file, ready for use with ZOTCSOUPD
Speeds up the reorder process
Reduces manual back-and-forth and guesswork
Smart reordering
Informed decisions
Streamlined workflow
Efficiency wins

Slide 153

Reporting is pulled based on shelf life of batches in the field
Reporting can be pulled from WebOps, S4, and Power BI
Notifications and alerts are available in WebOps and on inventory screens
Identification
01
Field Operations must work with reps and branches to notify impacted consignment locations
All expiring must be pulled prior to expiration regardless of replacement.
Inventory returned from consignment locations must be dispositioned as either scrap or repack
Return from field
02
Field Operations must utilize the EMT(Expiration Management Tool) to begin request to reorder expiring replacements
Request must be reviewed by Commercial Operations prior to reorder being placed
Using output from EMT with approval from Commercial Operations, reorder is placed
Reorder
03
Shipped replacements are systematically received into the impacted consignment locations
Inventory is received at branch to logistically place replacement at consignment location
During replacement of inventory at consignment location, expiring item should be pulled for return
Receive & replace
04
Expiration management
SAP is the compliance source of truth for all expired inventory on hand

Slide 154

Expiration management
⚠️ Note: Any expired product that cannot be found requires a written affidavit and the product is systematically written off in SAP.
01
EMT flags expiring products by account
Field Operations submits replenishment request through EMT
Identification
02
Commercial ops reviews:
On-hand inventory
Quantity in excess,
Invoiced units
Recommendation to reorder or adjust quantities
Review
03
Replenishment request is routed for decision:
✅ Yes – EMT generates output file
❌ No – Quantity is adjusted and resubmitted
Approval
04
Field Ops uploads sales order to SAP using ZOTCSOUPD
Order placement
05
Product arrives at branch
Segregated and prepped for replacement
Product Receipt & Prep
06
New product is physically swapped in
Systematic (manually) transfer is completed in SAP and WebOps
Physical Swap
07
Follow local procedures and execute relevant steps in WebOps and SAP. These may include scrapping product or returning product to a DC for repack.
Disposal or Return

Slide 156

Expiration notifications - WebOps
Blinking
WebOps displays real-time alerts based on the product’s shelf-life status. These notifications help users proactively manage expiring inventory.
⚠️WebOps will automatically display these expiration status messages (Warning, Cutoff, or Expired) when applicable.
Cutoff period that prevents user from assigning to a kit, transferring from one account to another, and creating outbound shipments
Product can be added to usage and billed, but needs to be removed from kit

Slide 157

Handling billing on expired products
Even if a product is expired, the system will allow billing to proceed—with warnings in place to alert users.
📘 For full billing guidance and examples, refer to FIM307
In WebOps:
Orders can be submitted for expired products
WebOps does not block order creation based on expiration
In SAP:
SAP does not restrict billing on expired products
A soft warning is displayed(⚠️), but it does not prevent invoicing
Billing will still process through to completion

Slide 159

Using EMT to determine what products will be replaced – process walkthrough
To proactively manage expiring inventory, the EMT (Expiration Management Tool) is used to evaluate which consigned products should be reordered. This process helps ensure the right stock levels are maintained, avoids waste, and supports timely replenishment based on usage.
The following steps outline how to assess expiring inventory, adjust reorder quantities, and collaborate with Commercial Operations for approval before placing a replacement order.

Slide 165

Slide 167

Slide 169

Slide 171

Slide 175

1
2
3
4
5
Rep submits tissue/Allosource request via WebOps for an upcoming case
Rep Request
CSR/FI Analyst creates ZKB manually in SAP
CSR Action
Consignment account selected
Must ship to hospital or approved site only
Account Selection
ZKB triggers Ariba procurement
Order sent to 3rd party supplier
Ariba integration
Inventory shipped & ASN is sent
WebOps receives ASN for auto-receipt
Shipment
&
ASN
Consignment drop ship process flow
6
Inventory in consignment
physically and systematically available at site
Inventory Posted
Example:
3102-XXXX
Allograft
Example:
3102-XXXX
Allograft
Example:
3102-XXXX
Allograft
Example:
3102-XXXX
Allograft
Example:
3102-XXXX
Allograft
Example:
3102-XXXX
Allograft

Slide 176

Inventory Flow in SAP – Drop Ship Inventory
Plant 0003
Consignment Inventory
Supplier
Common Materials:
Material Numbers:
3102-XXXX
Allograft
Cancellous chips
Allowrap
ProChondrix
Cross Section Fibula
Frozen Shaft: Femur, Ulna, Fibula, etc.
4102-XXXX
Frozen: Femur, Humerus, Tibia, etc.
Drop Ship Details
Drop ship materials must be ordered in manually in SAP using ZKB order type and will ship directly to customer from supplier
Materials will always be consigned and billed out of plant 0003
When returning inventory to vendor, a ZKA order type must be used and processed out of plant 0003
Key
🟢 Shipped Inventory – Kicks off procurement process through ZKB
🔴 Return Inventory – ZKA back to the supplier who it was drop shipped to
Consignment Inventory
Customer
210883- UPMC Pinnacle Health
ZKB
ZKA

Slide 180

Course summary
Upon completion of this course, you are now equipped to:
Confidently manage consignment inventory across SAP and WebOps
Choose the correct order type based on the business scenario
Initiate inventory requests using CRT or manual SAP processes when appropriate
Upload and troubleshoot mass sales orders using ZOTCSOUPD
Execute transfers and returns while keeping SAP and WebOps aligned
Research on-hand inventory and historical transactions using key SAP t-codes
Manage product holds and understand system limitations
Perform inventory adjustments accurately and in compliance with financial controls
Proactively manage expiring inventory using EMT
Support drop ship inventory processes from request to receipt

Slide 183

Accelerate OJT form steps - Learner
Log in to SLMS
Locate the training item for the class you are attending (example: CORP-ERP-FIM-302)
Check the boxes next to the modules covered in the class
If a module wasn’t covered, select N/A and add a note that it is not relevant for your responsibilities
Electronically sign

Slide 185

Consignment process overview
Warehouse ships consigned equipment to customer (external/IT/IH/E/A). Stryker maintains ownership.
Sales Rep/Sales Ops creates
Consignment fill up order and delivery
Create consignment pick up order. SAP generates return delivery
Consignment request
Create consignment issue (Bill Only) order
Fill up
Issue
Pick up
Return
Generate invoice
If customer credit is needed
If consignment stock is sold to customer
Create consignment return order referencing consignment issue (Bill Only) order
Return product to consignment location
Transfer ownership back to SYK
If inventory is not needed
Replenishment order
Transfer ownership of the sold inventory to customer
ZKB
ZKE
ZKR
ZKA
Rep returns inventory
Or
3PL Picks up inventory
Warehouse receives inventory

Slide 187

For cases with no set requests, consignment only case is posted instead
Sales Representative
At the request of the customer
Sales Representative
Operations team
Operations chooses where to source inventory: Local branch, alternate branch, or national loaners
Operations team
3rd party, Stryker driver, FedEx, etc.
Process title
Request product systems
Assign kits
Shipment creation
Surgical case created

Slide 188

Pricing is managed and checked internally to ensure proper billing
Sales representative
Documents what was consumed
Sales representative
&
Customer service
Operations team
While usage is priced, Ops creates inbound shipment to receive in kits
Customer service
Billing information is captured in WebOps, invoiced via SAP, and replenishment is triggered
Process title
Usage priced
Kit return and check-in
Bill-Only and replenishment
Usage posted

Slide 195

High level Approval Workflow Process
Sales Rep is notified of opportunity
Sales Rep contacts Field Operations for Inventory Request
Field Operations Creates Request in CRT
Commercial Operations reviews request and makes recommendations if needed
Field Operations updates request with approved inventory
CSR submits Consignment Fillup Order in SAP
Once the approval and inventory request are updated, CSR can upload the output into SAP to create the order for fulfillment.
Commercial Operations reviews request based on sales metrics for the inventory and customer that has been identified. This information is used to approve, reject, or make modifications to the request.
The submitted request will need to be updated based on the Commercial Operations response.
Request is submitted in CR identifying the type of opportunity and the inventory that is needed
Sales Rep submits request to the Field Operations team for fulfillment and analysis
Sales Rep identifies new or existing business opportunity that requires additional consignment inventory

Slide 197

Exercise: CRT approval
🧠 Classroom Activity: “CRT Workflow Relay”
Objective:
Reinforce the approval steps in the CRT (Consignment Request Tool) workflow by simulating a real-world request and approval exchange.
🔁 Activity Setup:
Divide the learners into teams of 4–6 people.
Assign roles within each team:
2 learners as Field Operations
2 learners as Comm Operations
1 learner as the Recorder/Observer (optional but helpful)
📄 Scenario:
Each team receives a printed CRT scenario packet. This includes:
A consignment request with missing or incomplete information
Inventory data (relevant product, customer, etc.)
A form for tracking approvals and comments
📝 Instructions:
Field Ops Initiates Request
Fill out the initial request and send it to Sales Ops (physically hand the packet over).
Comm Ops Reviews and Returns
Check for completeness. Add comments or corrections. Return to Field Ops.
Field Ops Reviews Feedback & Approves
Address feedback, finalize request, and resubmit to Comm Ops.
Sales Ops Final Approval
Final sign-off and log into tracker sheet.
✅ Wrap-Up Discussion:
What common mistakes slowed down your approval flow?
What info should be double-checked before submission?
How does this process prevent inventory errors?

Inventory Transfers_introduction_FIM302.pptx

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