1. Outbound Logistics SAP Best Practices for Chemicals

2. Purpose, Benefits, and Key Process Steps • Purpose • The purpose is to describe the business processes related to Outbound Logistics. • Benefits • Shipment cost calculation based on service agent, shipping type and geographical consideration to determine the most favorable result • Monthly PO for each service agent is used to settled shipment cost with Evaluated Receipt Settlement • Actual Freight cost is recovered from customer via billing • Key Process Steps • Create Planned Independent Requirements • Order Entry • Check and Determination of Freight Costs • Shipping: Delivery • Packing • Transportation Planning and Shipment Execution • Shipment Cost Calculation • Settlement of the Freight Costs with the Carrier Using Evaluated Receipt Settlement (ERS) • Billing

3. Required SAP Applications and Company Roles • Required SAP Applications • SAP ECC 6.00 enhancement package 5 • Company Roles • Warehouse Clerk • Transportation Planning • Sales Administrator • Production Planner • Billing Administrator

4. Process Flow Diagram Outbound Logistics Event Customer requirement Production Planner Create Planned Independent Requirements Sales Administrator Order Entry Check and Determination of Freight Costs Warehouse Clerk Settlement of the Freight Costs Using Evaluated Receipt Settlement (ERS) Shipping: Delivery Packing Transportation Planning and Shipment Execution Transportation Planner Shipment Cost Calculation Billing Administrator Billing

5. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision