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SAP Extended Warehouse Management

Frédéric MAINAUD
Solution Expert
SAP FRANCE
Mardi 2 juin 2009
Agenda

History and Release
Functionalities
ERP WM versus SCM EWM 7.0 – Choice criteria
Questions ?

© SAP 2009 / Page 2
History of SAP’s Warehouse Management

1993

1995

1997

1998

2000

2002

1993 - R/3 Release 2.0/2.1

2003

2004

2007

2002 - R/3 Enterprise Release (Ext 1.1)

Storage Units
Parallel Processing

Task & Resource Management (TRM)

2004 - R/3 Enterprise Release (Ext 2.0)

1995 - R/3 Release 3.0 / 3.1
Integration
• Production Planning
• Quality Management
• Logistics Information System

ERP WM
Yard Management
Cross-docking
Value Added Services

1997 - R/3 Release 4.0

2005 – SCM 5.0 SPM

Rough Workload Estimate
Picking Waves / Two Step
Warehouse Monitor
Integration to HR

1998 - R/3 Release 4.5
WMS Stand Alone
Prototype of RF

2000 - R/3 Release 4.6
Native RF / SAP Console
Handling Unit Management
Packing Station
© SAP 2009 / Page 3

2005

Extended Warehouse
Management

2007 – SCM EWM 5.1
Labor management
RFID Enablement ...

2008 – SCM EWM 7.0
Production Supply
Graphical Warehouse
Layout ...
Service Parts Alliance for Service Parts
Management (2002)
Concept:
~ 80% common processes/ technology
Leverage Ford and Cat Logistics volumes
Commercialize system software
Exit development
Become implementers and integrators (Cat
Logistics)

Intellectual Property
Know-how
Capability
Scalability

Benefits:
Lower development costs
International capabilities
Natural (planned) technology
upgrade path
Increase 3PL market opportunities (Cat
Logistics)
Shared Risks between Cat Logistics, Ford, and
SAP

© SAP 2009 / Page 4

The Result:
State of the Art Service Parts
Management Solution Across
Multiple Industries
Sales (CRM)
Planning (SPP)
Sourcing (ATP)
Warehousing (EWM)
Coordination (ERP)
Decision SCDP CAT/Ford to develop new WMS

Reasons for developing a new SCM-based WMS rather than delivering a highly
modified LES:
Requirements for data volume, performance and process flexibility made a
new architecture necessary
Following the Decentralized SAP Warehouse concept
Extend the basic concept of Transfer Orders to enable process flexibility
Extend Inventory concept to enable data flexibility and accuracy
High risk to change architecture in a mature application with thousands of
live customers (contract: 80% to be retrofitted into standard!)
Mind Shift from Managing Stocks to Controlling Processes

© SAP 2009 / SCM Review Project
2007 Page 5
SAP WM Solution Offerings

Raw
Materials

Simple
Requirements
© SAP 2009 / Page 6

SCM EWM Decentralized

ERP WM with
Extensions (TRM, YM,
VAS…)
Decentralized

ERP WM
Decentralized

ERP WM
Centralized

Finished
Goods

Complex
Requirements
Enterprise, SCM EWM and Network Focus

Centralized Scenario

Decentralized ERP Scenario

ERP
Logistics

ERP

Other
ERP

ERP

FI/CO

SAP
ERP

SAP
LES WM

SAP
LES WM

Extended
Extended
Extended
WM
WMWM

SCM EWM
Add-On

SAP SCM

WM

WM decentralized

SAP Warehouse Management in SAP ERP

SCM Extended Warehouse Management

(centralized or decentralized WM)

Enterprise
Focus
© SAP 2009 / Page 7

Network Focus
Overview of Processes with decentralization
ERP

SAP EWM

ERP

Sales Order

Purchase Order
BAPI

Outbound
Delivery

Replication

BAPI
Goods Issue
Confirmation

In / Outbound
Delivery

BAPI
Inbound Delivery
Replication

Posting of
goods movement

BAPI
Confirmation

Invoice

Invoice

Note: Master Data replication uses CIF
© SAP 2009 / Page 8

Goods Receipt
Agenda

1.
2.
3.
4.

History and Release
Functionalities
ERP WM versus SCM EWM 2007– Choice criteria
Questions ?

© SAP 2009 / Page 9
2007
9
EWM Inbound Process Overview

Slotting

Receive ASN Data

Putaway Bin
Determination

Transport
Unit Arrival

Unload
Transport Unit

Manage
Transport Unit

Goods
Receipt

Deconsolidation

(Internal
Routing)

Putaway
Process Exceptions/Manage Work in Process
© SAP 2009 / Page 10
EWM Goods Receipt Process using Routing of
HU’s
1

Quality Inspection

GR-Zone

Door 1

Repack/
Deconsolidate
4

3

6

2

Door 2

Door 3

5

7

Pallet Storage
8

Small Parts Storage

© SAP 2009 / Page 11
EWM Outbound Process

Order/
Deployment

Work
Assignment

Route
Determination

Picking

Wave
Management

Packing

Picking
Bin
Determination

Shipping Staging

Process Exceptions/Manage Work in Process
© SAP 2009 / Page 12

Warehouse
Orders

Loading
and
Goods Issue
Overview: EWM Goods Issue Process

Packing Work Center

GI-Zone &
Packing (2)
Door 1

PHU1

PHU2

Door 2

Pallet storage
PHU1
PHU2

Small Parts Storage

© SAP 2009 / Page 13

Door 3
Documents in the Outbound Process
WHR 1
WHR1
WHR1
WHR1
WHR1

A list of Warehouse Requests is created

Wave 1

These Warehouse Requests are grouped
into a Wave

Task 1
WHR1
WHR1
WHR1
WHR1

…

Task n
WHR1
WHR1
WHR1
WHR1

All Tasks will pass the “Black Box”
warehouse order creation

Warehouse Order
Creation (Bundling)

WO 1

WO 2

WO n

Task
WHR1
WHR1
WHR1
WHR1

Task
WHR1
WHR1
WHR1
WHR1

Task
WHR1
WHR1
WHR1
WHR1

© SAP 2009 / Page 14

Based on the wave Warehouse Tasks
will be created

Warehouse Orders are created according to the
Creation Rules. They can contain items from
multiple deliveries
Warehouse Order Creation – Schematic Flow
Grouping by Activity Area:
AA 01

WT
WHR 1

WT

WT

WT

WT

WT
WT

AA 02
WT

WHR 2

WT

WT

WT

WT

WT

AA 01

AA 02

a) WOCR1 a) WOCR3
b) WOCR2 b) WOCR2

WT

c) WOCR3

WT
WT

WO Creation Rules (Customizing):

WT

AA 03

WT

WT

1
2

3
Try WOCR3
Created Warehouse
Order 4711
WT
1

WT
3

WT
2

WT
4

AA 02
WT
3

4

WT
4

5
Try WOCR2

WT
1

WT
2

6
© SAP 2009 / Page 15

AA 02

Created Warehouse
Order 4712
WT
1

7

WT
2

AA 02
a) WOCR1
EWM Internal Processes

Kitting

Replenishment

Process Exceptions/Manage Work In Process
© SAP 2009 / Page 16

Rearrangement
Additional Warehousing Processes

Yard Management

Quality Inspection
Engine

Management and
Tracking of Vehicles
and Transportation
Units from yard
check-in, throughout
the yard movements
tasks, and yard checkout

Service oriented Quality
Inspection Engine to
support the quality
processes for warehouse
management

Environmental
Health & Safety
EH&S data and checks
used in Product
Storage, Shipping
Documents and
Transportation Routing

Process Exceptions/Manage Work In Process
© SAP 2009 / Page 17

Foreign Trade/
Bonded
Warehouse
Customs management
SPL Screening
Re-exports
Duty unpaid returns
Labor Management

Labor management modules are used to better manage the
time and productivity of warehouse workers. They consist of
the ability to plan, measure, view, and simulate labor activities.
For effective management of the labor supply chain, it is necessary to:
Get the right person to the right place at the right time
Track people throughout the day and measure performance on individual tasks
Provide alerts when performance falls below expectations
Calculate costs and incentives for employees
Simulate impacts to labor as a result of changes to the process flow or inventory
Highlight the cost and efficiency of individual employees, facilities, teams, and the
enterprise

© SAP 2009 / Page 18
Warehouse Cockpit

■

Intended for Supervisor and
Warehouse Manager

■

Monitors team performance

■

Monitors the performance of
areas or the whole warehouse

■

At-a-glance view of several key
figures enables you to react to
critical situations quickly

© SAP 2009 / Page 19
Agenda

1.
2.
3.
4.

History and Release
Functionalities
ERP WM versus SCM EWM 7.0 – Choice criteria
Questions ?

© SAP 2009 / Page 20
SAP WMS solutions
ERP WM vs. SCM EWM 7.0– Choice criteria

EWM 7.0

ERP WM

Separate component SCM EWM or Add-on ERP
Part of SAP ERP all releases
Standard ERP WM product
TRM works with ERP WM
4800 customers are live with ERP WM
We continue to support ERP WM

Does not replace ERP WM
New WMS product.
Developed for large and complex
warehouses/distribution centers with high volume and
velocity
Can be used in combination with ERP WM in the
same landscape
14 sites are live for 11 customers (april 2009 status)
+ 60 projects in progress with more than 20 are due to
go live before Dec 2009

© SAP 2009 / Page 21
SAP WMS solutions
LES WM vs. EWM – Choice criteria
Key Question:
When do I choose ERP-WM and when do I choose SCM EWM
Guidelines:

Characteristic / Requirement

SCM
EWM

ERP
WM

ERP
DWM

Service Parts Industry
Highly Complex Warehouse Requirements – Picking, Packing,
Deconsolidation, Task Management, YM, VAS, Kitting, Slotting, Contract
Packaging, Extensive Cross-Docking, RF, Automation

Basic to Complex Warehouse Requirements – Picking, Packing, Task
Management, YM, Light VAS, Light Cross-Docking, RF, Automation

High Volume

DWM : Decentralized Warehouse Management
© SAP 2009 / Page 22
SAP WMS solutions
LES WM vs. EWM – Choice criteria
Characteristic / Requirement

Stock Location
Basic Pick / Placement Strategies
Wave Picking / Wave Management
Replenishment
Resource Management
Yard Management
Value Added Services

Cross Docking

Physical Inventory

© SAP 2009 / Page 23

SCM
EWM

ERP
WM

ERP
DWM
SAP WMS solutions
LES WM vs. EWM – Choice criteria
Characteristic / Requirement

RF Screen Enhancement
Deconsolidation During Putaway
Stock IDs
Slotting / Rearrangement
Kitting
Quality Inspection
Customer Returns
Discrepancy Processing for Stock Transport Orders
Delivery Split for Outbound Orders
EH&S Integration

© SAP 2009 / Page 24

SCM
EWM

ERP
WM

ERP
DWM
SAP WMS solutions
WM vs EWM – Selections criterias

Characteristic / Requirement

Serial Numbers
Labor Management

Delivered BI Content

© SAP 2009 / Page 25
2007

SCM
EWM

ERP
WM

ERP
DWM
SAP Extended Warehouse Management

Questions ?

© SAP 2009 / Page 26
2007
26
Thank you!

© SAP 2009 / Page 27

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Extened warehouse management EWM

  • 1. SAP Extended Warehouse Management Frédéric MAINAUD Solution Expert SAP FRANCE Mardi 2 juin 2009
  • 2. Agenda History and Release Functionalities ERP WM versus SCM EWM 7.0 – Choice criteria Questions ? © SAP 2009 / Page 2
  • 3. History of SAP’s Warehouse Management 1993 1995 1997 1998 2000 2002 1993 - R/3 Release 2.0/2.1 2003 2004 2007 2002 - R/3 Enterprise Release (Ext 1.1) Storage Units Parallel Processing Task & Resource Management (TRM) 2004 - R/3 Enterprise Release (Ext 2.0) 1995 - R/3 Release 3.0 / 3.1 Integration • Production Planning • Quality Management • Logistics Information System ERP WM Yard Management Cross-docking Value Added Services 1997 - R/3 Release 4.0 2005 – SCM 5.0 SPM Rough Workload Estimate Picking Waves / Two Step Warehouse Monitor Integration to HR 1998 - R/3 Release 4.5 WMS Stand Alone Prototype of RF 2000 - R/3 Release 4.6 Native RF / SAP Console Handling Unit Management Packing Station © SAP 2009 / Page 3 2005 Extended Warehouse Management 2007 – SCM EWM 5.1 Labor management RFID Enablement ... 2008 – SCM EWM 7.0 Production Supply Graphical Warehouse Layout ...
  • 4. Service Parts Alliance for Service Parts Management (2002) Concept: ~ 80% common processes/ technology Leverage Ford and Cat Logistics volumes Commercialize system software Exit development Become implementers and integrators (Cat Logistics) Intellectual Property Know-how Capability Scalability Benefits: Lower development costs International capabilities Natural (planned) technology upgrade path Increase 3PL market opportunities (Cat Logistics) Shared Risks between Cat Logistics, Ford, and SAP © SAP 2009 / Page 4 The Result: State of the Art Service Parts Management Solution Across Multiple Industries Sales (CRM) Planning (SPP) Sourcing (ATP) Warehousing (EWM) Coordination (ERP)
  • 5. Decision SCDP CAT/Ford to develop new WMS Reasons for developing a new SCM-based WMS rather than delivering a highly modified LES: Requirements for data volume, performance and process flexibility made a new architecture necessary Following the Decentralized SAP Warehouse concept Extend the basic concept of Transfer Orders to enable process flexibility Extend Inventory concept to enable data flexibility and accuracy High risk to change architecture in a mature application with thousands of live customers (contract: 80% to be retrofitted into standard!) Mind Shift from Managing Stocks to Controlling Processes © SAP 2009 / SCM Review Project 2007 Page 5
  • 6. SAP WM Solution Offerings Raw Materials Simple Requirements © SAP 2009 / Page 6 SCM EWM Decentralized ERP WM with Extensions (TRM, YM, VAS…) Decentralized ERP WM Decentralized ERP WM Centralized Finished Goods Complex Requirements
  • 7. Enterprise, SCM EWM and Network Focus Centralized Scenario Decentralized ERP Scenario ERP Logistics ERP Other ERP ERP FI/CO SAP ERP SAP LES WM SAP LES WM Extended Extended Extended WM WMWM SCM EWM Add-On SAP SCM WM WM decentralized SAP Warehouse Management in SAP ERP SCM Extended Warehouse Management (centralized or decentralized WM) Enterprise Focus © SAP 2009 / Page 7 Network Focus
  • 8. Overview of Processes with decentralization ERP SAP EWM ERP Sales Order Purchase Order BAPI Outbound Delivery Replication BAPI Goods Issue Confirmation In / Outbound Delivery BAPI Inbound Delivery Replication Posting of goods movement BAPI Confirmation Invoice Invoice Note: Master Data replication uses CIF © SAP 2009 / Page 8 Goods Receipt
  • 9. Agenda 1. 2. 3. 4. History and Release Functionalities ERP WM versus SCM EWM 2007– Choice criteria Questions ? © SAP 2009 / Page 9 2007 9
  • 10. EWM Inbound Process Overview Slotting Receive ASN Data Putaway Bin Determination Transport Unit Arrival Unload Transport Unit Manage Transport Unit Goods Receipt Deconsolidation (Internal Routing) Putaway Process Exceptions/Manage Work in Process © SAP 2009 / Page 10
  • 11. EWM Goods Receipt Process using Routing of HU’s 1 Quality Inspection GR-Zone Door 1 Repack/ Deconsolidate 4 3 6 2 Door 2 Door 3 5 7 Pallet Storage 8 Small Parts Storage © SAP 2009 / Page 11
  • 12. EWM Outbound Process Order/ Deployment Work Assignment Route Determination Picking Wave Management Packing Picking Bin Determination Shipping Staging Process Exceptions/Manage Work in Process © SAP 2009 / Page 12 Warehouse Orders Loading and Goods Issue
  • 13. Overview: EWM Goods Issue Process Packing Work Center GI-Zone & Packing (2) Door 1 PHU1 PHU2 Door 2 Pallet storage PHU1 PHU2 Small Parts Storage © SAP 2009 / Page 13 Door 3
  • 14. Documents in the Outbound Process WHR 1 WHR1 WHR1 WHR1 WHR1 A list of Warehouse Requests is created Wave 1 These Warehouse Requests are grouped into a Wave Task 1 WHR1 WHR1 WHR1 WHR1 … Task n WHR1 WHR1 WHR1 WHR1 All Tasks will pass the “Black Box” warehouse order creation Warehouse Order Creation (Bundling) WO 1 WO 2 WO n Task WHR1 WHR1 WHR1 WHR1 Task WHR1 WHR1 WHR1 WHR1 Task WHR1 WHR1 WHR1 WHR1 © SAP 2009 / Page 14 Based on the wave Warehouse Tasks will be created Warehouse Orders are created according to the Creation Rules. They can contain items from multiple deliveries
  • 15. Warehouse Order Creation – Schematic Flow Grouping by Activity Area: AA 01 WT WHR 1 WT WT WT WT WT WT AA 02 WT WHR 2 WT WT WT WT WT AA 01 AA 02 a) WOCR1 a) WOCR3 b) WOCR2 b) WOCR2 WT c) WOCR3 WT WT WO Creation Rules (Customizing): WT AA 03 WT WT 1 2 3 Try WOCR3 Created Warehouse Order 4711 WT 1 WT 3 WT 2 WT 4 AA 02 WT 3 4 WT 4 5 Try WOCR2 WT 1 WT 2 6 © SAP 2009 / Page 15 AA 02 Created Warehouse Order 4712 WT 1 7 WT 2 AA 02 a) WOCR1
  • 16. EWM Internal Processes Kitting Replenishment Process Exceptions/Manage Work In Process © SAP 2009 / Page 16 Rearrangement
  • 17. Additional Warehousing Processes Yard Management Quality Inspection Engine Management and Tracking of Vehicles and Transportation Units from yard check-in, throughout the yard movements tasks, and yard checkout Service oriented Quality Inspection Engine to support the quality processes for warehouse management Environmental Health & Safety EH&S data and checks used in Product Storage, Shipping Documents and Transportation Routing Process Exceptions/Manage Work In Process © SAP 2009 / Page 17 Foreign Trade/ Bonded Warehouse Customs management SPL Screening Re-exports Duty unpaid returns
  • 18. Labor Management Labor management modules are used to better manage the time and productivity of warehouse workers. They consist of the ability to plan, measure, view, and simulate labor activities. For effective management of the labor supply chain, it is necessary to: Get the right person to the right place at the right time Track people throughout the day and measure performance on individual tasks Provide alerts when performance falls below expectations Calculate costs and incentives for employees Simulate impacts to labor as a result of changes to the process flow or inventory Highlight the cost and efficiency of individual employees, facilities, teams, and the enterprise © SAP 2009 / Page 18
  • 19. Warehouse Cockpit ■ Intended for Supervisor and Warehouse Manager ■ Monitors team performance ■ Monitors the performance of areas or the whole warehouse ■ At-a-glance view of several key figures enables you to react to critical situations quickly © SAP 2009 / Page 19
  • 20. Agenda 1. 2. 3. 4. History and Release Functionalities ERP WM versus SCM EWM 7.0 – Choice criteria Questions ? © SAP 2009 / Page 20
  • 21. SAP WMS solutions ERP WM vs. SCM EWM 7.0– Choice criteria EWM 7.0 ERP WM Separate component SCM EWM or Add-on ERP Part of SAP ERP all releases Standard ERP WM product TRM works with ERP WM 4800 customers are live with ERP WM We continue to support ERP WM Does not replace ERP WM New WMS product. Developed for large and complex warehouses/distribution centers with high volume and velocity Can be used in combination with ERP WM in the same landscape 14 sites are live for 11 customers (april 2009 status) + 60 projects in progress with more than 20 are due to go live before Dec 2009 © SAP 2009 / Page 21
  • 22. SAP WMS solutions LES WM vs. EWM – Choice criteria Key Question: When do I choose ERP-WM and when do I choose SCM EWM Guidelines: Characteristic / Requirement SCM EWM ERP WM ERP DWM Service Parts Industry Highly Complex Warehouse Requirements – Picking, Packing, Deconsolidation, Task Management, YM, VAS, Kitting, Slotting, Contract Packaging, Extensive Cross-Docking, RF, Automation Basic to Complex Warehouse Requirements – Picking, Packing, Task Management, YM, Light VAS, Light Cross-Docking, RF, Automation High Volume DWM : Decentralized Warehouse Management © SAP 2009 / Page 22
  • 23. SAP WMS solutions LES WM vs. EWM – Choice criteria Characteristic / Requirement Stock Location Basic Pick / Placement Strategies Wave Picking / Wave Management Replenishment Resource Management Yard Management Value Added Services Cross Docking Physical Inventory © SAP 2009 / Page 23 SCM EWM ERP WM ERP DWM
  • 24. SAP WMS solutions LES WM vs. EWM – Choice criteria Characteristic / Requirement RF Screen Enhancement Deconsolidation During Putaway Stock IDs Slotting / Rearrangement Kitting Quality Inspection Customer Returns Discrepancy Processing for Stock Transport Orders Delivery Split for Outbound Orders EH&S Integration © SAP 2009 / Page 24 SCM EWM ERP WM ERP DWM
  • 25. SAP WMS solutions WM vs EWM – Selections criterias Characteristic / Requirement Serial Numbers Labor Management Delivered BI Content © SAP 2009 / Page 25 2007 SCM EWM ERP WM ERP DWM
  • 26. SAP Extended Warehouse Management Questions ? © SAP 2009 / Page 26 2007 26
  • 27. Thank you! © SAP 2009 / Page 27