SAP EWM Online Training

1. SAP EWM – Overview

System Integration

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EWM

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System Landscape

EWM Functions and Processes

The various EWM functions can be grouped into processes as shown in the

illustration below.

Extended Warehouse Management is designed to run as a de-centralized system.

It is considered an application in the SCM server landscape, although it can be

deployed in the ERP server. First, we will review the “standard” deployment option in which EWM is a component in the SCM server landscape. The deployment options are shown in the figure below.

System Landscape

System Integration


The various EWM functions can be grouped into processes as shown in the

illustration below.

System Integration

Availability Groups for Inventory Management

EWM does not maintain the ERP storage location in the EWM warehouse quant

data. In its place, the system uses the EWM availability group code to determine

an EWM stock type. In EWM customizing there is a table that maps the ERP

Plant, storage location and Logical system number to an availability group code.

The availability group is also the link between stock types in EWM and the ERP

plant and storage location stock. You can have different stock types in EWM for

one storage location in ERP.

EWM Functions


At the core of the Inbound Processes is the goods receipt process that includes the functionality necessary to direct the movement of products from the warehouse door to their final destination bins. Based on configuration settings and master data, products can be putaway in an optimal fashion. Use of the

Slotting and Rearrangement function can be used as an integral part of the putaway optimization process. During slotting, a storage concept is automatically determined for a product. The system determines the underlying storage parameters that are relevant for putaway on the basis of product data, requirement data, and packaging data.

Rearrangement is used to optimize the arrangement of your products in the warehouse by moving stock such as fast-moving items to the relevant optimal storage bin as determined by the slotting process.

EWM Functions


Yard Management can be used to monitor and manage vehicles (Transportation

Units) that arrive to deliver products to the warehouse. Although described as

part of the Inbound Process, Yard Management can be used to also manage

Transportation Units (TU's) that arrive to pick up orders to be delivered to

customers or other company warehouses.

Materials that are being received into the warehouse may require quality-related inspections. These inspections can be managed using the EWM Quality Inspection function through the use of the Quality Inspection Engine (QIE). Quality inspection documents are created for the products to be inspected and the results of the inspections can be posted against them.

EWM Functions

Outbound Processes represent the second of the major EWM processes. Within the Outbound Processes, goods issue represents the pick, pack, staging and loading of products from the warehouse. The remaining processes in the Outbound processes support the goods issue process. Using the Wave Management function you can use EWM to combine items or split items from warehouse requests for outbound deliveries into waves. These waves must be picked and processed at roughly the same time. Waves can be created manually or automatically in EWM.

In cross docking you transport the products or HU's from goods receipt to goods

issue without putaway occurring in between. In the case of push deployment (PD) and pick from goods receipt (PFGR), you start by working with a standard goods receipt process. Transportation cross-docking (TCD) supports the transportation of handling units (HUs) across different distribution centers/warehouses to the final destination. If the final destination is a customer site, a sales order in SAP ERP or CRM forms the basis for TCD. However, TCD can also be used to support the movement of HU's between your warehouses. In this case, a stock transfer order forms the basis for TCD.

EWM Functions

Packing in the Outbound processes generally involves the removal of stock from

a storage bin and placing it into a pick handling unit (HU). Depending on your

packing requirements, the pick HU may be taken to a packing work center where

the products in the pick HU are packed further into other HU's for shipping

or repacked into other HU's.

Replenishment control can be used to re-stock a picking area in accordance

with the demand for products that are picked in this area. There are several

replenishment strategies that can be used to direct the replenishment process. Data

that can be used to determine replenishment stocks can come from slotting, open

warehouse requests, and can be entered manually.

The functions in Environmental Health and Safety (EH & S) provide support for

the proper handling and storage of hazardous substances in the warehouse. In

addition, these services can help insure that goods are transported in accordance

with the various governmental regulations.

EWM Functions

Physical Inventory processes in Extended Warehouse Management (EWM) are

used to carry out a physical inventory of products and handling units (HU's) for

stock control and balance sheet purposes. You have the following options:

• Storage-bin-specific physical inventory - this option refers to counting a

storage bin and therefore to all the products and HU's in this storage bin.

• Product-specific physical inventory - this option refers to counting a specific

product in one or more storage bins and/or HU's.

To perform a physical inventory, you can choose between three business inventory

procedures:

• Periodic physical inventory procedure

• Continuous physical inventory procedure

• Cycle counting

EWM Documents

In this section we will review the various ERP/EWM documents that are used in

the inbound and outbound processes. All process-related data is communicated

between the SAP ERP and EWM systems via delivery documents. A document

contains all the data required to document and control a business process. Various

documents are used in delivery processing to control the processes.

Inbound Process Documents

Inbound Delivery Notification: The inbound delivery notification is a document containing all the relevant logistics data in the inbound delivery process right from the origin of the inbound delivery process (shipping notification, delivery note or purchase order). The data from the advanced shipping notification from the supplier is saved in the inbound delivery notification.

Inbound Delivery: The inbound delivery is a document containing all the data required for triggering and monitoring the complete inbound delivery process. This process starts on receipt of the goods in the yard and ends on transferal of the goods at the final putaway, production or outbound delivery. The inbound delivery is created after activating an inbound delivery

notification. The inbound delivery adopts all the relevant data from the inbound delivery notification.

EWM Documents

Outbound Process Documents

Outbound Delivery Request: The outbound delivery request is a document containing all the relevant logistics data in the outbound delivery process from the origin of the outbound delivery process (For example, the sales order). The outbound delivery request contains the transferred data from a reference document (an outbound delivery) in order to create an outbound delivery order

Outbound Delivery Order: The outbound delivery order is a document containing all the data required for triggering and monitoring the complete outbound delivery process. This process starts with the first planning activities for the outbound delivery and continues until the finished goods have been loaded and sent.

Outbound Delivery: The outbound delivery is a document representing the goods to be delivered together to a goods recipient. An outbound delivery is created by selecting the action Create Outbound Delivery in the outbound delivery order.

EWM Documents

Posting Change Documents

Posting changes can be generated internally in EWM or they can be created in the ERP system. In EWM, the term “posting change” is used to refer to a change in the material/product, batch, stock type or stock usage. For example, a posting change is used to scrap a product that has been damaged in the warehouse.

Posting Change Request: a posting change request is a document into which

the system copies all relevant logistics data from the initiator of this process.

You use the posting change request to save the logistics data transferred from

a reference document to create a Posting Change.

Posting Change: The Posting Change is a document containing all the data

required for triggering and monitoring the complete posting change process.

It is from this document that the warehouse tasks are created to carry out the

posting change movement.

Delivery Document Integration

For delivery data exchanges, delivery integration settings must exist in the EWM system. SAP provides a set of standard settings for the common SAP delivery documents. The foundation of these settings exist in a table used to translate ERP delivery document types to EWM delivery document types. The illustration below shows the mapping of the ERP delivery document type to the EWM delivery document type.

ERP Document Type to EWM Document Type Mapping

In addition to mapping of the delivery document types, the integration between the ERP system(s) and the EWM system includes a mapping table that maps the ERP Delivery item categories to the EWM Item Type code. The following graphic illustrates this mapping.


The document header is defined in the EWM system by a combination of the

document category and the document type codes. The document category

classifies the different documents that can be processed by the system in delivery

processing. Document category codes are predefined in the EWM system and

cannot be changed. The following are document categories that exist in delivery

processing:

The EWM document type classifies a document with regard to the complete

delivery process. The document type defines the primary business use of the

document. Shown below are examples of EWM document types:


table below are the major EWM delivery documents and their

respective document type and document category codes.

Each combination of document type and document category in the table above

represents a document in a EWM business process


Document Item

In the delivery document items are contained the information related to an

individual products within the delivery. Listed below are examples of item related

information:

• Product/material number

• Delivery quantity

• Weight and volume for item

• Location-related information such as goods receiving point or unloading

point.

• Dates such as goods receipt or picking date.

• Tolerances for over and under delivery quantities.

Each delivery document item is identified by an item type, the document type of

the delivery document in which it appears and the item category code. The item

category classifies the delivery item into its basic use. The following table lists

the item categories:

EWM Documents

Warehouse Request Documents

A warehouse request is an EWM document that enables the processing of

warehouse activities for a specific group of products. The following are the main

warehouse processes and their corresponding EWM warehouse request document::

Picking - the Outbound Delivery Order created from the outbound delivery

request document is the warehouse request document for the goods issue process

• Putaway - in the goods receipt process the Inbound Delivery document

serves as the warehouse request document.

• Posting Change - for posting changes the warehouse request document is the

Posting Change document

From the warehouse request documents, EWM can create the warehouse tasks

required to complete the warehouse process. When a warehouse request is created

a warehouse process type must be determined for the document. The warehouse

process type contains the configuration settings related to the direction of the

movement (putaway, picking), location information (default source or destination)

and process-related settings.

EWM Documents

Warehouse Tasks and Warehouse Orders

For the physical movement of material in the warehouse, EWM uses Warehouse

Tasks and Warehouse Orders.

Warehouse Task

A warehouse task is an EWM document that is created to execute goods

movements. Logical or physical goods movements or even stock changes can be

the basis for a warehouse task. These include: putaway, pick, posting changes, internal movements, Goods receipt posting, Goods issue posting.

Warehouse tasks are created either with reference to a warehouse request

document or they can be created without reference. For example, Internal goods

movements can be created without reference to a warehouse request document.

Warehouse tasks are controlled by the warehouse process type.

Warehouse tasks can be created manually, triggered automatically from a process

like wave picking, or dynamically as a result of a preceding warehouse movement

EWM Documents

Warehouse Order

Warehouse tasks are grouped into warehouse orders to form “work packages” for

warehouse employees (resources) to perform. The warehouse order consists of

warehouse tasks or physical inventory items. After warehouse tasks are created,

they are assigned to warehouse orders based on warehouse order creation rules

(WOCR's). Warehouse order creation rules are defined in customizing and are

assigned to activity areas. The source or destination bin locations in the warehouse

tasks are used to determine the activity areas to be used to obtain the WOCR's to

be applied to the task.

EWM

Contd..

Two different storage locations are used: AF00 (Available for sale) and RD00 (Received on dock). RD00 is used to keep stock which is currently in the process of putaway, e.g. these quantities are not really physically available. Only if the product is finally stored on it's destination storage bin, a transfer posting for the quantities is made from storage location RD00 to storage location AF00.

System Integration






Materials that are being received into the warehouse may require quality-elated

inspections. These inspections can be managed using the EWM Quality Inspection function through the use of the Quality Inspection Engine (QIE).

Quality inspection documents are created for the products to be inspected and the results of the inspections can be posted against them.

System Integration






Materials that are being received into the warehouse may require quality-related

inspections. These inspections can be managed using the EWM Quality Inspection function through the use of the Quality Inspection Engine (QIE).

Quality inspection documents are created for the products to be inspected and the results of the inspections can be posted against them.

EWM

The Warehouse Number is the organizational unit at the highest level in Warehouse Management. It is used to represent the warehouse complex. In practice, the warehouse mostly corresponds to a physical building or distribution center.

There are different forms where products are physically stored in a warehouse:

various types of racks, any open storages, goods receipt and goods issue areas.

This is represented with storage types as a group of warehouse bins with

similar characteristics. Storage types are defined on the basis of their spatial or

organizational features.

A storage section is a subdivision of a storage type and represents a group of bins

that generally have some sort of like attribute. Common used storage sections are

fast-moving or slow-moving items or the type of stored products. Storage sections

are used for determining the putaway storage bin.

On lowest level of organizational structure are storage bins. They are assigned to

a storage section (if exist) and a storage type and represent the physical location

or storage space where the products are stored in the warehouse. Whenever you

keep a product in your warehouse, you have to indicate it's exact residence: the

storage bin. The coordinates of the storage bin tell you the precise position in the

warehouse. Storage bins are considered as master data.

EWM

Storage bins - independent of their assignment to a storage type - are logically

grouped in activity areas. Per activity, such as picking, putaway or physical

inventory, you define an activity area. Activity areas are used do define the bin

sorting, when warehouse orders are created. According the activity , the same

storage bin can be assigned to multiple activity areas.

EWM

Storage Type

A storage type is a physical or logical subdivision of a warehouse complex, which

is characterized by its warehouse technologies, space required, organizational

form, or function. The storage type is a four character code, defined in EWM customizing. It's use is defined in a storage type role as:

Standard Storage Type - represents a physical area in the warehouse where

products are stored. SAP has pre-configured a number of standard storage

types.

• Identification Point - typically an area within a warehouse where goods are

labelled/identified/checked during a goods receipt process

• Pick Point - a physical area within the warehouse where goods are checked/labelled/inspected/packed during a goods issue process

• Identification and Pick Point - an area within a warehouse where both id and

pick point processing takes place.

• Staging Area Group - represents one or more material staging areas in the

warehouse.

Work Center - a storage type that represents a physical area within the

warehouse where certain processes take place such as deconsolidation,

inspection, packing or value added service processing

• Doors - this role is used to represent one or more doors is a certain physical

location within a warehouse. For example, the doors on the west side of the

warehouse.

EWM

Supply Chain Unit

The supply chain unit contains essential information, such as country, region,

and time zone. The system uses the time zone for the warehouse number when displaying all date and time fields. When a location is created in SAP SCM either manually or by transfer via the core interface (CIF), the system automatically creates an SCU with identical general and address data and the business character planning location. Conversely, if you create an SCU with the business character planning location, the system automatically creates a location with identical general and address data. If you create an SCU with the business character Warehouse, the system does not create a corresponding location. After you have entered any product master data or document data for a warehouse, you should no longer change the assignment of the supply chain unit to the warehouse number. Doing so can result in subsequent errors.

EWM

Yard - in this role, a storage type represents a yard adjacent to the warehouse.

• Material Flow Control - A storage type with this role represents an area or

system using automated storage / retrieval automation such as a conveyoring

system.

• Work Center in Staging Areas Group - represent a work center within a

material staging area

Storage Section

A storage section is an organizational subdivision of a storage type, which joins

together storage bins with similar attributes for the purpose of putaway. The

criteria for joining these bins together can be defined in any way, for example,

heavy parts, bulky parts, hazardous materials having certain characteristics,

fast-moving items, slow-moving items.

EWM

A storage bin is the smallest addressable unit of space in a warehouse and

represents the exact position in the warehouse where products can be stored. The

bin coordinate is 18 characters in length. Since the address of a storage bin is

frequently derived from a coordinate system, a storage bin is often referred to as

a coordinate. For example, the coordinate 01-02-03 could be a storage bin in

aisle 1, stack 2, and level 3.

• Aisle

• Stack

• Level

• Bin subdivision

• Bin Depth

You can also define additional attributes for a storage bin:

• Storage bin type - used to indicate relative size of bin and/or actual bin

dimensions

• Bin Access Type - used to control how bin is accessed by resources

• RF Verification field - used in RF scanning to verify that the correct bin

is being accessed

• Geo-coordinates of storage bin - used by EWM to compute distances

between the bins in goods movements

• Capacity checking attributes (max weight, volume, total capacity) - used to

control the amount of product assigned to a bin.

• Fire containment section - used in product hazardous material reporting

EWM

Material Staging Areas

After unloading or before loading, material can be stored on an interim storage, the material staging area. A material staging area defines a storage section of a storage type with role “D” (staging area group). You configure the activity that is performed in the material staging area (either inbound or outbound or both), additionally it is possible to assign

Activity Area

Warehouse activities (as of putaway, picking, physical inventory) are executed in activity areas. The idea is, that, according to the assignment of storage bins to an activity area, the sequence of warehouse tasks is optimized. You create activity-dependent bin sortings within an activity area.

EWM

An Activity Area represents logical section of the warehouse that groups storage

bins based on defined warehouse activities. Examples of activity areas include:

• Putaway

• Picking

• Physical Inventory

You use activity areas to provide logical subdivisions in your warehouse. In these

activity areas, different warehouse workers execute certain warehouse activities,

such as putaway or picking. You create activity-dependent bin sorting's within an

activity area. Extended Warehouse Management (EWM) uses these bin sortings to

optimize the execution of warehouse tasks.

Warehouse Process Types

The warehouse process types are used to control the physical movements and postings in the warehouse.

Purpose of WPT

When different products are received in the warehouse, they are handled in

various ways. Some products get moved directly into a storage bin, others need

to be deconsolidated or counted first. This is controlled also by the warehouse

process type

In SAP Extended Warehouse Management the warehouse process type controls

the movements inside the warehouse. The system processes each warehouse

process (such as goods receipt, goods issue, posting change, and repacking) using

such a warehouse process type. A warehouse process type is assigned to every

warehouse task document. The warehouse process type has various effects on the

creation of warehouse tasks.

The warehouse process type is determined during the creation of the warehouse request document


Warehouse Process Control indicator

In the warehouse product master, in the Warehouse data view, there is a control

indicator, the Process Type Determination Indicator that can be used to group

products for which the same warehouse process type is to be used. SAP EWM

uses this product master indicator when determining the warehouse process type

during the creation of warehouse request documents. Using the Process Type

Determination Indicator to determine warehouse process types can facilitate different handling of products during goods receipt or goods issue. For example, products which are to be moved immediately into high rack storage can be distinguished from material which needs to be processed in some way, like re-labeling.

Warehouse Process Type Determination

During the creation of a warehouse request document, the warehouse process type

is determined. Since it is influenced by the product master, it is determined on the

item level. For warehouse process type determination, various data fields like the

document type, the item type, and the control indicator are used.


The system determines the warehouse process type according to the logic outlined

below, which means that all of the determining fields may not be required to

determine a particular warehouse process type

Assumptions for the access logic for warehouse process type determination are:

• The item type is more specific than the document type.

• The processing priority is more specific than the control indicator from the

warehouse product master. • SAP EWM always takes into account the warehouse number, because process types are defined specifically for each warehouse number.


The system determines the warehouse process type according to the logic outlined

below, which means that all of the determining fields may not be required to

determine a particular warehouse process type

Assumptions for the access logic for warehouse process type determination are:

• The item type is more specific than the document type.

• The processing priority is more specific than the control indicator from the

warehouse product master. • SAP EWM always takes into account the warehouse number, because process types are defined specifically for each warehouse number.

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