Stop Planning in Bulk: Unlock Smarter Material Staging in SAP

When Material Timing Matters More Than Material Date

When you think about material consumption in production, what’s the first thing that pops into your mind? Probably the material requirement date, right? That’s certainly where my mind goes.

But let’s dig a little deeper.

What if the operation where a component is consumed doesn’t take place in a single day or even a week? What if it stretches across several weeks—or even months (looking at you, Aerospace & Defense)? Do you really need to plan for all that material to be available on day one?

If you’re using SAP’s default planning, the answer is yes. It assumes you want all required materials upfront. But in reality, that’s rarely how production—and especially procurement—operates.

The Problem with All-at-Once Planning

Planning material delivery in a lump sum might work on paper, but it creates real-world inefficiencies:

• Overburdened suppliers who can’t deliver in one go.
• Excess inventory sitting idle on the shop floor.
• Manual adjustments to purchase requisitions to match supply to need.

Sure, you could manually stage delivery schedules across time—but let’s be honest, no planner wants to waste hours adjusting requisitions. It’s error-prone, inconsistent, and not scalable.

This isn’t just a supply chain inconvenience. It’s profit leakage in action.

SAP Has a Smarter Way: Distribution Keys in the BOM

Here’s the good news: SAP can fix this—but only if you enable it.

By setting a distribution key in the Bill of Materials (BOM) for a component, you allow the planning engine to intelligently spread material requirements across the expected duration of use.

Instead of seeing a one-time material requirement when MRP runs, you’ll now see requirements distributed over the production timeline—aligned with how and when the material is actually consumed.

This single master data enhancement transforms how MRP plans and how your suppliers deliver.

Why It Matters to Planners, Analysts—and the Business

For the planner, it means:

• Less manual intervention
• Smarter, more accurate purchase orders
• Reduced inventory buildup

For the business, it means:

• Better alignment with supplier capacity
• Reduced working capital tied up in inventory
• Smoother production flow with fewer material shortages

And for everyone? It’s one more way to stop profit leakage by aligning SAP planning capabilities with real-world manufacturing processes.

A Final Thought: It's Not About the Software

This isn’t a new feature—it’s untapped capability. And it’s a perfect example of what we mean when we say SAP isn’t the problem—it’s how it’s used.

You already own the software. You already have the data. The opportunity lies in how you use both to drive smarter decisions.

So next time you’re tempted to plan everything up front, ask yourself: Is this staging based on reality—or just default settings?

Unlock that hidden potential. It’s in your BOM.

Ready to unlock hidden value in your supply chain? Let Reveal show you how smarter planning—powered by SAP and driven by your people—can stop profit leakage before it starts. Talk to an expert today.