Post on 24-Apr-2015
© 2011 Westernacher I All rights reserved I www.westernacher.com
Innovating Business & IT Since 1969
Westernacher Consulting
© 2011 Westernacher I All rights reserved I www.westernacher.com 1
Agenda
•Westernacher Overview
•Introduction to EWM
•WM vs EWM
•Some EWM Functional Highlights
•3PL Billing for EWM
•Overall Benefits
© 2011 Westernacher I All rights reserved I www.westernacher.com 2
Agenda
•Westernacher Overview
•Introduction to EWM
•WM vs EWM
•Some Functional Highlights
•3PL Billing for EWM
•Overall Benefits
© 2011 Westernacher I All rights reserved I www.westernacher.com 3
Boston Brussels London Shanghai Sopot Vienna Heidelberg
Berlin, Bonn, Stuttgart
• Founded in: 1969
• Consultants: > 200
• Locations: 10 Offices in 7 Countries
• Number of Partners: > 50
• 100% owned by Westernacher Partners
40 Years, serving Clients worldwide with over 200 Professionals and
10 Locations in 7 Countries
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Focus on SAP products & technology • R/2 and R/3 projects (FI, CO, PS, MM, SD, PP)
• Logistics: Development of WLS®, our own WMS running 100% on
ABAP; 1st release in 1994
1st project with SAP LE-WM 4.6C
1980
1993
2000
2004
2005
2007
Starting Warehouse Management activities • “Booming period” of automated highbay warehouses in Germany
• Individual programming / mainframe systems
WLS® running on Netweaver
1st project with LE-TRM
2009
1st SAP-EWM implementation as a Partner of SAP Germany at
a leading automotive OEM
SAP-EWM implementations in the field of logistic service
providers and discrete industries in Europe, USA and China
About 40 warehouse implementations since 1995, references available on request.
Our History in Warehouse Management
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Transport Control Center RFID
SAP MDM Operation Control Cockpit
ERP-Based SPM SPM ERP-Based
GenRad ERP-Based
SPP
Customer Base and Projects (Excerpt)
Financials, Controlling, Reporting / BI,
Shared Service Center (SAP-FI/CO; SAP-
BW, Business Objects; SAP-MDM)
Logistics incl. Reporting / BI, Mail
International (SAP-based)
Warehouse Management incl. fully
automated warehouses / material flow
control (SAP-based) / SAP-EWM
SAP-SPM (Service Parts Management)
SAP-HCM (Human Capital Management)
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Agenda
•Westernacher Overview
•Introduction to EWM
•WM vs EWM
•Some Functional Highlights
•3PL Billing for EWM
•Overall Benefits
© 2011 Westernacher I All rights reserved I www.westernacher.com 7
Introduction to EWM
•Which EWM are we talking about?
• Rel 4.7 Extension Set 2.0 = ERP eWM or simply WM
• SCM + new Warehouse Management solution, running decentralized =
SCM EWM or simply EWM
• SCM EWM
• Can be used with ERP releases back to 4.6C /SP 6.0.
• Includes all WM functionality, either as is or enhanced
• Uses lots of TRM nomenclature
• Will receive all future enhancements.
•Some new concepts
• Work Area
• Warehouse Task
• Warehouse Order
• Stock Identification
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EWM Adoption
Status: October, 2011
EWM Live Customers and Sites
0
20
40
60
80
100
120
140
160
12/31/07 12/31/08 12/31/09 12/31/10
Live Sites
Live Customers
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Evolution of EWM functionality
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Agenda
•Westernacher Overview
•Introduction to EWM
•WM vs EWM
•Some Functional Highlights
•3PL Billing for EWM
•Overall Benefits
© 2011 Westernacher I All rights reserved I www.westernacher.com 11
Not Supported in ERP 4.6C
Inbound Inbound Split
Inbound Local creation of inbound delivery
Returns Implicit Qual Inspection of Returns
Returns CRM triggered QI results
Outbound Goods issue Cancelation
Outbound Pick denial
Outbound Split reversal
Outbound Invoice before goods issue
Outbound Outbound delivery deletion
Outbound Item qty change triggered by CRM
Outbound Item qty change triggered by APO
Inbound/Outbound Transportation Cross-docking
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Key Differentiators of SCM EWM vs. WM
•Stand-alone implementation
•Warehouse structure flexibility
•Advanced packing functionality
•Introduction of Work Center
•Integrated Material Flow System
•Improved standard RF
•Integrated labor management
•Advanced Slotting and Rearrangement
•More complex putaway and picking
strategies
•Centralized warehouse monitoring and
reporting
•Storage Control
•True kitting functionality (inbound and
outbound)
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Agenda
•Westernacher Overview
•Introduction to EWM
•WM vs EWM
•Some Functional Highlights
•3PL Billing for EWM
•Overall Benefits
© 2011 Westernacher I All rights reserved I www.westernacher.com 14
EWM Data Movement Strategy
SCM
Master Data
EWM
Business Partner
Master Data ERP
Master Data (Plant/DC, Shipping Points,
Customer Master, Vendor
Master)
EWM
Transaction Data ERP
Transaction Data qRFC
CIF
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Slotting and Rearranging
Slotting
•Determines the optimal bin, putaway strategy and area of the warehouse for each
material. Based on product and packing attributes, product demand, storage type,
combined with the physical layout of the warehouse.
•Can be simulated and then moved to and activated in the production system.
•Affects labor productivity, replenishment efficiency and maximizes utilization of
warehouse space.
Available Rule Options for Slotting include;
Maximum Weight Dimension check with rotation and tilt
Capacity Factor per Material Weight and Simple Dimension Check
Simple Dimension Check Weight and Dimension Check with Z-axis
Rotation
Dimension Check with Z-axis rotation Weight and Dimension Check with Tilt and
Rotation
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Slotting and Rearranging
Rearranging
•Can take place passively or actively by creating tasks to move products to their
optimal locations.
•Analyzes product/bin activity based on historical activity
•Compares current storage type, storage section, and storage bin with Slotting
recommendations, and may propose different product parameters.
•The storage bin with the lowest slotting index for the product gets preference
because it shortens the path traveled by the picker.
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More Complex Putaway and Picking Strategies
Inbound Process:
In WM The Material may be assigned to an inefficient storage bin for future
picking.
In EWM The Material is assigned to an efficient storage bin for future picking
purpose based on slotting methods.
Example:
If the slotting option is enabled for a material ,then EWM decides based on the
materials demand whether to put it in fast, medium, or slow movement storage
location. EWM does this by calculating the pick path distance, and other
parameters which are detailed in the slotting configuration.
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Centralized Warehouse Monitoring.
•Provides Warehouse Management with Real-Time Updates to Warehouse
Resources – such as queue reassignments, resource reassignments, and
messages to resources.
•Monitors processes and resources and creates alerts for situations that exceed
desired tolerances. (Management by exception)
•Updates to Bins, Resources, and Users
•Manage Waves
•Review and Process Physical Inventory Discrepancies
•User Personalization
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Warehouse Monitor Layout (SAP Default)
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Storage Control
Process-Oriented Routing
•Models the steps based on Goods Receipt or Goods Issue process
•A product’s Goods Receipt process from a supplier can be different than
the Goods Receipt process from an External Warehouse
•An Emergency Order outbound process may have different steps than a
Regular Order outbound process
Layout-Oriented Routing
•Models the steps needed based on the layout of the warehouse (e.g.
pick points or identification points at High Bays)
•Define Conveyor Segments
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Kitting
Kit to Stock
•Can be triggered via an ERP Production
Order or an EWM VAS Order
•Reverse kitting available
•Requires the use of a manually created
VAS Order
•With or without a Bill of Material (BOM)
•Stock levels are automatically adjusted
Kit to Order
•Triggered if there is no kitted stock
available
•Component Availability Checks performed
•Kitting work requirements are visible to the
warehouse
•Kitting can take place at a Work Center
•With VAS orders (full traceability)
•Without VAS order (packing station)
•Can take place during picking with no Work
Center
© 2011 Westernacher I All rights reserved I www.westernacher.com 22
Agenda
•Westernacher Overview
•Introduction to EWM
•WM vs EWM
•Some Functional Highlights
•3PL Billing for EWM
•Overall Benefits
© 2011 Westernacher I All rights reserved I www.westernacher.com 23
Minimal
customizing
• Leverage of standard ERP functionality in Sales & Distribution (SD)
• No additional custom code to standard EWM processes
Flexibility
• Solution that could be flexible enough to be extended if needed
• Wide range of configuration parameters to map any customer
requirement
Real-time
integration
• Solution that was real-time integrated, and not offline and through
file uploading
• Retroactively configurable, with simulation of different rating and
billing scenarios
Westernacher Billing Solution (WBS)
Westernacher decided to build a solution for its LSP customers with the following
goals in mind:
© 2011 Westernacher I All rights reserved I www.westernacher.com 24
Warehouse Billing Solution Components
© 2011 – Westernacher – All Rights reserved
Contracts
Invoice
Daily Data Extraction
Aggregation & Analysis
EWM with EWM-AE ERP
Billing Run Debit Request
Data Validation
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Agenda
•Westernacher Overview
•Introduction to EWM
•WM vs EWM
•Some Functional Highlights
•3PL Billing for EWM
•Overall Benefits
© 2011 Westernacher I All rights reserved I www.westernacher.com 27
Key Characteristics of Organizations with EWM
•High SKU and Line Item volumes
•Very fast and very slow moving items competing for the same warehouse space (for
instance seasonal items)
•Significant differences in product characteristics (weight, size, batch numbering, model
year, serialization,…)
•Complex order fulfillment processes
•Complex cross-docking requirements
•Detailed and conditional applications of value added services
•Integration of 3PL services (packaging/inbound, packing/outbound)
•3rd Party Logistics companies
Source: SAP EWM 100 course material
© 2011 Westernacher I All rights reserved I www.westernacher.com 28
EWM Key Capabilities
Business benefits Extended Warehouse Management Flexible modelling of warehouses and processes Stock and Process Transparency Optimization in storage planning and process
execution Support of modern Services in the warehouse Seamless technology integration (Automation,
RF, RFID …) Integration within the overall SAP Logistics
Solution High integration with other solutions
Integration to technical components (RFID / MFS)
SAP ERP environment External software components (Netweaver) SCM planning integration (e.g.slotting / push
deployment) Best-in-class product
For all kind of warehouses: DCs, Production supply, Cross Dock
For all industries For all complexities: Simple, complex, highly
complex warehouses
Execution Excellence – Advantage for
your business
High Warehouse Productivity /
Efficiency Labor Management Integrated Material Flow System
(MFS) for automated Storage Warehouse Monitor Warehouse Analytics
High Inventory Accuracy Better Space Utilization Better Customer Service
• Cost saving potential
Added Value of Extended Warehouse
Management Leverage for cost savings in logistic
core processes Efficiency improvements Fast ROI through optimized logistic
WH systems
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Expected Benefits and common reasons for selecting EWM LES EWM
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Space
Cost/Utilization
Smaller inventory investment:
Slotting, Bin Determination and Rearrangement
Wave Management and wave release control
Optimal work algorithms in warehouse order
creation
10% - 20%
10% - 20%
5% - 15%
Tangible Benefits % of Impact
Dealer/Customer
Satisfaction
Increased Dealer/Cust Satisfaction due to:
More efficient work distribution to workers with WO
Better visibility, work, and alert Monitoring
Timing and Flexibility of release of work to floor
10% - 20%
25% - 50%
20% - 35%
On-Time
Delivery
Slotting, Bin Determination, Replen & Rearrange
Work in Process and Alert Monitor
Wave Management
Warehouse Order Creation (Bundling)
5% - 15%
10% - 30%
15% - 25%
10% - 25%
Increase in On-time delivery due to:
Productivity
Products in the optimal Bins and Rearrangement
Warehouse Monitor for visibility and tracking
Optimizing Warehouse Orders to workers
10% - 30%
10% - 50%
10% - 70%
Increased Productivity due to:
EWM Benefits
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Improved Warehouse Efficiency
Flexible Process Modelling
Process Transparency
Warehouse Optimization
Scalability
Best of Breed functionality
Integration
7 Key Points
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Westernacher partners with ASUG on bringing EWM to
ASUG partners
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Contact
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Improved Value Added Services (VAS)
•Master Data Driven
•Facilitates warehouse tasks such as
•Repacking
•Customer Price Labeling
•Rebranding
•Assembly (Kit to Order, Kit to Stock)
•Etc.
•Provides visibility to additional work required prior to shipping
•Provides Instructions and allows for confirmations at each step of the VAS
•Captures billing, profitability, and productivity data
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What you get when you buy EWM
Source: SAP EWM 100 course material