Warehouse and DC Management (WM)

Warehouse and DC Management (WM)

SAP Best Practices for Retail

© 2011 SAP AG. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose This scenario describes the processing procedure for retail goods in a distribution center, using a

warehouse management system with inventory management at storage bin level. In this scenario, distribution center will refer to a warehouse that is supplied by vendors, that stores the merchandise and then prepares it to be shipped to customers or stores.

Benefits As warehouse processes depend greatly on the amount of space available, the organization of

the warehouse and the merchandise stored there, this scenario should be viewed simply as an example for implementation purposes. However, with very little effort, this example can be adapted to fit any customer-specific situation.

Key Process Steps Goods Receipt Processing Return Deliveries Internal Warehouse Replenishment Goods Issue Processing Warehouse Physical Inventory Tools and Workbenches


Required SAP Applications and Company Roles

Required SAP Applications SAP SAP enhancement package 5 for SAP ERP 6.0

Company Roles Retail Warehouse Specialist


Process Flow DiagramWarehouse and DC Management (WM)

Create Purchase Order for

Single Article

Re

tail

Wa

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ou

se

Sp

ec

iali

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Create Purchase Order for

Generic Article

Post Rough Goods Receipt

Create Inbound Delivery

Appointment Planing

Receipt of incoming

Goods

Enter an Actual

Appointment

Alternative 2:Confirm with

difference

Alternative 1:Confirm without

difference

Log-on to the Terminal

Search for the Article

Document for Goods Receipt

Create a Return

Delivery

Issuing the Article

Document as Goods Issue / Receipt Slip

Alternative 1:Asynchronous

Warehouse Management

Put away Preparation

Create a Transfer Order

in the Warehouse

Goods Collection

Replenishment Planning

Create a Transfer

Order

Goods Receipt with Reference to the Rough

Goods Receipt

Putaway Processing

Create an Outbound Delivery

Confirm Transfer

Order

Ressource Planning with the RF Monitor


Process Flow DiagramWarehouse and DC Management (WM)

Create Transfer Order as a

Picking Document

Re

tail

Wa

reh

ou

se

Sp

ec

iali

st

Alternative 1:Asynchronous


Log-on to the Terminal

Alternative 1:Confirm without

difference

Alternative 2:Confirm with

difference

Resource Planning in the Monitor for Mobile Data Entry

Monitor from Mobile Data

Entry Monitor

Creating Wave Picks

Alternative 1:Automatic Capacity-

Driven Creation of Wave Picks

Create Transfer Orders in Collective

Processing

Alternative 2:Creating Wave Picks Manually

Confirm Transfer Orders

in Collective Processing

Subsequent Delivery Split

Post Goods Issue

Create Deliveries

with Planned Picking Time

Goods Issue in Collective

Processing

Create a Physical Inventory Document

Manual EntryCarry Out Inventory Recount

Difference Statistics

Determine Inventory

Status

Post Differences in

Inventory Management

7.4.1.1Alternative

1:Manual

Creation

Post Differences in


Trigger Inventory Recount

Warehouse Activity Monitor

Outbound Delivery Monitor

Wave Pick Monitor

Rough Workload

Estimate After Goods Issue

Rough Workload Estimate After

Creation of Outbound Deliveries


Document Flow in the Warehouse

GR AreaGR Area

Shipping Area

Shipping AreaGOODS ISSUEGOODS ISSUE

GOODS RECEIPTGOODS RECEIPT

WAREHOUSE

PUTAWAYTRANSFER ORDER

PUTAWAYTRANSFER ORDER

PICKINGTRANSFER ORDER

PICKINGTRANSFER ORDER

Outb. Del.Outb. Del.

POPO

Inb. DeliveryInb. Delivery

Rough GRRough GR


Inventory Management - IM vs. WM

Storage Location

Storage bin

Site

Inventory Management on article level

Fixed storage bin can be maintained in the article master (text field)

Inventory Management on bin level

Putaway / Picking strategies are used

Storage bin is master data and can be determined by strategy (other

than fixed)

Whse numberStorage type

Storage section


Warehouse Structure - Warehouse PC1

GI-Area

GR-Area

1

Gate 1

2

Gate 2

3

Gate 3

4

Gate 4

H01High Rack StorageRandom Storage

Section 001 Fast moving items

Section 002 Slow moving items

K01Picking storage typeFixed storage bins

Section 001 Fast moving items

Section 002 Slow moving items

H01 / B01 / F01

Storage for

Special Goods

(depending on

master data)

Section 001 Total Section


Storage Bins - Warehouse PC1

10 Aisles, 10 Stacks, 10 LevelsLevel 01 - 04 Fast moving items

Level 05 - 10 Slow moving items

Bins 01-01-01 to 10-10-10

21 aisles, each with 50 binsBins 01-20 Fast moving, Bins 21-50 Slow moving

Aisles 01-07 Picking Area 001Aisles 08-14 Picking Area 002Aisles 15-21 Picking Area 003

Bins KOM-01-001 to KOM21-050

5 aisles,

25 bins each

All Storage bins in

Total Section

Bins 01-001 to 05-025 GI-Area

GR-Area

1

Gate 1

2

Gate 2

3

Gate 3

4

Gate 4


Putaway – Post Goods Receipt

GI Document

Goods Receipt

Movement type Article Quantity Site Stor. location

Goods Receipt

Movement type Article Quantity Site Stor. location

Transfer Requirement

Quant

in the GR-Area of the Warehouse

WMWarehouse


Putaway – Transfer Order

Transfer Requirement

Quant Putaway(physical movement)

Confirm Transfer Order

Confirm storage bin and quantity

Create Transfer Order

Automatical determination of storage bins

Transfer OrderTransfer Order


Warehouse Data in the Article Master

Article Master Data Warehouse Management

Warehouse number (PC1) Storage type (K01) Picking storage type (K01)

Storage bin(KOM-04-003)

Maximum bin quantity (50) Minimum bin quantity (10) Rounding quantity

(blank) Control quantity

(blank) Replenishment qty.

(blank)


Stock check – Triggering Replenishment

Reserve storage

Picking Zone

Stock in binsmaller than

minimum quantity?

Triggerreplenishment

Transfer request is generated


ConfirmTransfer Order

Physical Goods Transport


Picking – Delivery

Delivery is relevant for picking

Transfer order required

!!

Delivery Article Quantity SiteStor. Location

Delivery Article Quantity SiteStor. Location

DeliveryDelivery

Goods Issue

WMWarehouse


Picking – Transfer Order

Quant

ConfirmTransfer Order

Confirm Picking Quantity

Picking(physical movement)

Quant

In the shipping

zone


Automatical determination of storage bins

Picking ListPicking List

Transfer OrderTransfer Order

DeliveryDelivery

Picking Storage Type


Picking – Goods Issue

Goods Issue

GoodsIssue

GoodsIssue

Delivery is relevant for picking

Transfer order required

!!

Delivery Article Quantity Site Stor. Location

Delivery Article Quantity Site Stor. Location

DeliveryDelivery

WMWarehouse

Picking is finished


Mass Processing of Deliveries

Manual creation in the outbound delivery monitor using selection by:

Shipping point Picking date Route, carrier ... Free selection

Automatic generation using selection by: Picking date / time Additional filter by several criteria

(e.g. route, shipping point, ship-to-party ...)

Considering capacity restrictions: Weight, volume Maximum items on the picking list Working time ...

Group of Outbound Deliveries

orWave Pick

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery


Mass Processing of Deliveries

Collective Follow-On-Processing:

Create transfer order Confirm transfer order Post goods issue

Group of Outbound Deliveries

orWave Pick

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery


Warehouse Activity Monitor

List of all processes within a critical timeframe for execution:• Unconfirmed transfer orders• Open transfer requirements• Critical deliveries• ...

Direct follow-on-processingof the critical documents

List of all critical documents


Rough Workload Estimate

Information on:

needed manpower needed transport capacity

Estimated Workload in:

Quantity Weight Volume Execution time

Calculation of workload using:

Logistics Load Category Unit of Measure Whse no. / storage type Warehouse process

Planned Goods Issue

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery


Mobile Data Entry in WM

R/3Application

User interface SAPGui

SAPConsole

Online processing

Mobile Data Entry:

Mobile terminals in a radio frequency network Robust hardware made for use in the warehouse Built-in barcode scanner Touch screen for easy use Simplified SAPGui (SAPConsole) as user interface


Controlling the Warehouse via RF-Monitor

• transfer orders run into workload queues

• The warehouse employees are assigned these queues and thus a workload of TOs.

• The overload of a queue can be avoided by monitoring the displayed TOs/employee relation.

RF-Monitor of the warehouse manager

The system provides the warehouse employees with transfer orders from their queue continuously.

Touch screen of the warehouse employee

Transfer Orders


Physical Inventory with WM

Continuous Physical Inventory

InventoryDifference

Block storage bins

Unblock storage bins

Create Physical InventoryDocument

Print / ReleaseCount List

Count, Weigh, Measure, Estimate

Record Inventory CountResults

ProcessDifference List

Activate Physical Inventory Document

Clear differences in Warehouse Management

Clear differences in Inventory Management

Initialize Recount


Benefits of Continuous Physical Inventory

Better distribution of workload in the warehouse

The inventory can be carried out in periods with lower workload

Periodic Inventories are usually time consuming and labour intensive

Up-to-date information on the availability of the stock in the warehouse

The cost of the inventory can be reduced by planning it carefully


Processes Goods Receipt and Return Deliveries


Processes Replenishment and Goods Issue


Process Variant Mass Processing of Deliveries


Process Warehouse Physical Inventory


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