SAP EWM Value of Solution

SCM Extended WarehouseManagement Value of Solution

Elinor Castell

Solution Management EWM

SAP AG

AGENDA

1. Introduction & Roadmap

2. Common EWM drivers over ERP WM

3. Common EWM drivers over BoB solutions

4. Summary

SCM Extended Warehouse Management

Newest warehouse management application from SAP on the SCMplatform

Developed as an integral part of our Supply Chain ManagementSolution

Designed to handle business requirements from simple to complexwarehouses for companies in a variety of industry sectors

Release 5.0 general availability since November 2006

Release 5.1 general availability since May 2008

Release 7.0 ramp-up begin 21 November 2008

SAP EWM 2009is planned

Q3 2009Q4 2008

SAP EWM 2008is released

December 2007

SAP ERP 6.0EnhancementPack 3 is delivered

Sept 2007

SAP EWM2007released

July 2007

SAP EWM 2007available as an add-on to SAP ERP 6.0

© SAP 2007 /

2007: EWM as add-on to ERP

2007: (Q3) Labor Management, Warehouse Cockpit,MFS enhancements

2007: (Q4) RFID Enabled, Kit-to-Stock, Batch Mgmt,Serial No., GR/GI Optimization, etc.

2008: Graphical Warehouse Layout, ResourceManagement Improvements, Cross-DockingEnhancements, Production Supply/Staging,Continuous Improvement

2009: Integration to transportation processes,enhancements to claims & returns

SAP EWM designed for the Adaptive Supply Chain Network

Roadmap – SAP EWM

December 2006

SCM 5.0 connects to4.6C – mySAP ERP2004

December 2005

Full SPMLandscape (CRM5.0, ERP 2005, SCM5.0)

Preliminary plan - subject to change

AGENDA




4. Summary

Common EWM drivers over ERP WM

Better integration to Yard Management FunctionalitySmaller restrictions regarding Handling UnitsMore flexible mobile data entry processes (exception handling, …)

Warehouse Monitor as central tool and central starting pointUse of partial goods receipt in inbound processing (GR per HU)

System guided putaway with deconsolidation/fanningComplex wave planning and outbound route structureHigh volume picking and shippingWarehouse Order Creation (optimizes processes in the warehouse by producingoptimized units of work for the warehouse employees)

Source: SAP EWM Customers


Broad stock/inventory view (storing of pre-picked HUs, use of staging zones, etc.)

Extensive enhancement possibilities (customer-specific informationen on theHU, warehouse monitor, BADIs, ..)

Slotting (better density and improved travel path; 40% of labor in a DC is typicallywalking so this can be significant)

Rearrangement (change bin assigned to product because of a change in activity orother characteristic)

Goods Receipt Optimization (ability to check existing inbound deliveries or createnew inbound deliveries from expected goods receipts)

EGF (Easy Graphics Framework) functionality can also be used withcustomer’s own transactionsBI Integration



Conveyor automation and pick-to-light integrationPallet managed inventories using Handling UnitsePedigree/serialization with RFID integrationIntegrated labor management functionality; typical savings of 5-15% oflabor costs can be achieved through better trackingEWM simplifies HUs by only defining them at Storage type level,instead of Storage Location levelEH&S (Environmental, Health & Safety) integration (EHS-master datatransferred from ERP, product classification visible)

Shipment and Transportation units fully supported



Each, case and bulk picksReplenishment of forward picking areasDouble-checking inspection and packingProcess-oriented storage controlPosting changes and stock status changes can be initiated in EWMIntegration with CRMAssignment of Serial Number to HU possibleProduction staging


AGENDA




4. Summary

Common EWM drivers over BoB solutions

Standardization on SAP vs bolting on third party applications (manycustomer IT organizations are pushing very hard to get to a pure SAP landscape)

EWM now has functionality and feature parity with the best of breedsolutions (preferance to use SAP as long as EWM has an 80% fit to the businessrequirements)

For customers already having an SAP support structure internally,EWM is preferred over third party solutions and the need to developinternal support for them (leverage in-house SAP skillsets for ABAP development,configuration, security and Basis vs. different or proprietary technologies for 3rd partyWMS )

Standard interfaces/integration to SAP ERP vs. custom or complexinterfaces to 3rd party WMS


Common EWM drivers over BoB solutions

Cost avoidance around legacy WMS solutions (if legacy WMS is more than 5years old/has not been upgraded often, the maintenance costs can be 16% on base +16% on the modifications)

Vendor viability; many WMS solutions have no upgrade path due tovendor consolidation or the application is so old that it cannot besystematically upgraded (new implementation vs. upgrade)

Ability to adopt new technology or it was cost prohibitive to adopt newtechnology with existing solution (RFID, RF, cube out and pick directly to tote,etc.)


AGENDA




4. Summary

SpaceCost/Utilization

Smaller inventory investment:Slotting, Bin Determination and RearrangementWave Management and wave release controlOptimal work algorithms in warehouse ordercreation

10% - 20%10% - 20%5% - 15%

Tangible Benefits % of Impact

Dealer/Customer

Satisfaction

Increased Dealer/Customer Satisfaction cont to:More efficient work distribution to workers with WOBetter visibility, work, and alert MonitoringTiming and Flexibility of release of work to floor

10% - 20%25% - 50%20% - 35%

On-Time

Delivery

Slotting, Bin Determination, Replen & RearrangeWork in Process and Alert MonitorWave ManagementWarehouse Order Creation (Bundling)

5%-15%10% - 30%15% - 25%10% - 25%

Increase in On-time delivery contributed to:


ProductivityProducts in the optimal Bins and RearrangementWarehouse Monitor for visibility and trackingOptimizing Warehouse Orders to workers

10% - 30%10% - 50%10% - 70%

Increased Productivity Contributed to:

EWM Benefits

Improved Warehouse Efficiency

Flexible Process Modelling

Process Transparency

Warehouse Optimization

Scalability

Best of Breed functionality

Integration

7 Key Points

Copyright 2009 SAP AGAll rights reserved

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changedwithout prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned andassociated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications mayvary.

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This documentcontains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, productstrategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text,graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the impliedwarranties of merchantability, fitness for a particular purpose, or non-infringement.

SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitationshall not apply in cases of intent or gross negligence.

The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in thesematerials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages

Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durchSAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.

Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Servicessowie die dazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokumenterwähnten Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich unddienen lediglich zu Informationszwecken. Produkte können länderspezifische Unterschiede aufweisen.

Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderenVereinbarung mit SAP. Dieses Dokument enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts und ist für SAP nicht bindend, einen bestimmtenGeschäftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP übernimmt keine Verantwortung für Fehler oder Auslassungen in diesen Materialien. SAP garantiert nichtdie Richtigkeit oder Vollständigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewähr,weder ausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einenbestimmten Zweck sowie für die Gewährleistung der Nichtverletzung geltenden Rechts.

SAP übernimmt keine Haftung für Schäden jeglicher Art, einschließlich und ohne Einschränkung für direkte, spezielle, indirekte oder Folgeschäden im Zusammenhang mit der Verwendungdieser Unterlagen. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.

Die gesetzliche Haftung bei Personenschäden oder die Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinkszugreifen, unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewährleistungen oder Zusagen überInternetseiten Dritter ab.

Alle Rechte vorbehalten.

SAP EWM Value of Solution

Documents

Transcript of SAP EWM Value of Solution