Jan 17 EWM Webcast

© 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


Agenda



•WM vs EWM

•Some Functional Highlights


•Overall Benefits


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


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


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)


Agenda



•WM vs EWM



•Overall Benefits


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


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


Evolution of EWM functionality


Agenda



•WM vs EWM



•Overall Benefits


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


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)


Agenda



•WM vs EWM



•Overall Benefits


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


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


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.


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.


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


Warehouse Monitor Layout (SAP Default)


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


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


Agenda



•WM vs EWM



•Overall Benefits


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:


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


Agenda



•WM vs EWM



•Overall Benefits


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


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


Expected Benefits and common reasons for selecting EWM LES EWM


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


Improved Warehouse Efficiency

Flexible Process Modelling

Process Transparency

Warehouse Optimization

Scalability

Best of Breed functionality

Integration

7 Key Points


Westernacher partners with ASUG on bringing EWM to

ASUG partners


Contact


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


What you get when you buy EWM

Source: SAP EWM 100 course material

Jan 17 EWM Webcast

Documents

Transcript of Jan 17 EWM Webcast