Wm Overview

8/12/2019 Wm Overview

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Patti GardnerApplication Solution Management, SCM



Architecture technology

Warehouse Management overview

Increasing efficiency in the warehouse

Wrap-up






Wrap-up



SAP AG 2004, Logistics and Supply Chain in 2005 / 4

Paper-based batch orders prevent

efficient manpower scheduling and limit

visibility to future work, making

operation balancing difficult.

Deploy warehouse resourcesto maximize productivity

Impacts to customer service levels

include effectively managing inventoryavailability, order processing activities,

and shipment management.

Improve customer service

ObservationsKey issues Productivity improvement can reduce

direct, indirect, and administrative labor.

Reduce warehouse operatingcosts

Speed to resolution can reducedemurrage and expediting, and

increase overall profitability bymaintaining better fill rates.

Identify and resolve logisticsissues quickly

Improved inventory accuracy and

reduced inventory levels and carryingcosts are important benefit areas.

Improve inventory

management




Need to eliminate annual physical counts Need to track every unit down to the lowest level of detail

Need to efficiently place new items

Need to continuously manage inventory balances

Physical inventory

Need to synchronize the movement of products in real time Need to eliminate inefficient movement and redundant effort

Need to improve facility utilization

Need to improve the alignment of activities to resources

Warehousing andstorage

Need better use of manpower

Need to facilitate cross docking

Need to streamline receiving and dock management

Need to optimize inventory placement in the warehouse

Need to improve inbound inventory visibility

Inbound processes

Key observationsCurrent painpoints




Need quicker access to warehouse information

Need better performance reporting and analysiscapabilities

Need to identify and resolve exceptions

Need to monitor real time employee performance

Need to simplify rough workload planning and balancing

Evaluation and

planning

Need greater inventory accuracy and availability

Need to reduce picking, shipping, and billing errors

Need higher customer service levels

Need to shorten order turnaround times Need to provide value-added services quickly

Need to take advantage of cross dock opportunities

Outboundprocesses

Key observationsCurrent painpoints




Storage warehouse

Direct processes

Static processes

Internally focusedHeadcount driven

Four walls conscious

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High velocity operation

Cross docking processes

Value- added services

Customer focusedTechnology driven

Enterprise conscious

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All warehouse processes are covered from goods receiptthrough goods issue

Complete stock transparency

Complete warehouse history detail

Reduction in error rate

Better customer satisfaction with delivery accuracy

Simplified processes which reduce cost per transaction

Mobile Data Entry

Integrated solution

Collaboration ready




* ( -. ) $ /001 '(

Strategic Planning Strategic Supply Chain Design Strategic Sourcing

Demand Planning Forecasting & Lifecycle Planning Promotion Planning Consensus Demand Planning

Supply Planning Safety Stock PlanningSupply Network

Planning & OutsourcingDistribution Planning Customer Collaboration Supplier Collaboration

Procurement Purchase Order Processing Receipt Confirmation Invoice Verification

Manufacturing Production Planning & Detailed Scheduling Manufacturing Execution

Warehousing Inbound Processing Outbound Processing Cross Docking Warehousing & Storage Physical Inventory

Order Fulfillment Sales Order Processing Logistics Coordination Billing

Transportation Transportation Planning Transportation Execution Freight Costing

Visibility Procurement Visibility Manufacturing Visibility Fulfillment Visibility Transportation Visibility Supply Chain Analytics




2( 3 !

Warehouse number

Storage type

Storage section

Areas (GR, staging, picking)

Doors

Task and Resource Management (TRM) components: Site

Zone Working area Pick-up and drop-off area




4

Putaway and retrieval strategies by storage type

Multiple replenishment methods

Stock determination

Managing mixed materials in one bin

Alternate units of measure

Shelf life data

Batch management

Managing discrepancies




+*

Goods receipt Purchase order

Inbound delivery (ASN)

Shipment

Goods receipt and putaway Putaway strategies

Cross-docking Quality Management

Production supply support

Replenishment

Minimum quantity (bin or storage type) Based on requirements




!+

From picking to shipping

Picking(waves, two-step, bundle, etc)

Assembly(VAS)

Packing

(pick and pack, packingstation)

Shipping

(Bill of lading, invoices, etc.)

Shipment tracking(Event management)




)

Physical inventory methods

Continuous inventory

Sampling

Cycle counting

Dynamic cycle count

Annual

Zero stock check

First placement




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Rough workload estimate

Warehouse activity monitor

Delivery monitor

RF monitor

TRM monitor

Alert management




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Handling units (HU)

Describe what is packed

Have an identification number(license plate eg., EAN128)

Retain history

Simplify the operation in thesupply chain

Recognized by all logistic

applications

Enable

Goods movements Customer-specific packing

Inventory control per HU




- *(

Carrier

Carrier

Customer

Service

Provider

Vendor

InternetInternet

Production

WarehouseManagement

QualityAssurance

GoodsReceipt

GoodsIssue




--* 5 6

Shipment Update

Unloading

StockPostingChange

Enquiries

Un/Repacking

Putaway

Loading

Packing

Picking

Printing Labels

Delivery Split

Interleaving

Replenishing

Monitoring

GoodsReceipt

Goods

Issue




$(

Graphical

terminals

Character terminals

Hand held

Vehicle

mount




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SAP GUI

Character terminals

SAPConsole

Conversion

Pocket PC

Browser

WebSAPConsoleWebSAPConsole




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Web Application Server 6.40 S A P N e

t W e a v e r

D e v e

l o p e r S

t u d i o

Auto-ID Voice Fax, Email,SMS

Web-based GUI

SAP NetWeaver Multichannel Access*Computer Center Management System

LaptopHandheldPhones RFID

WebSAPConsole

(online)

MobileWeb Dynpro(online)

SAP NW 2004 Mobile

Mobile

DevelopmentKit (MDK)

online

offline

MI 2.5(offline)

WebConsole

CCMS* Agent

S A P N e t W

e a v e r

A d m

i n a n

d M o n

i t o r i n g




+$( 3

Presentation Server

CRM

SCM

PLM

R/3R/3R/3R/3

RF Devices

ConnectionModule

SAP Systems

LogicalModule

WebSAPConsole

ConsoleDisplayerVT100

protocol

RF AccessPoint

SAPGUIprotocol

WebDisplayerHTTP

protocol






Wrap-up




"4 * 7




! "

Task and Resource ManagementTask and Resource Management(TRM) maximizes the efficiency(TRM) maximizes the efficiencyof your warehouse processesof your warehouse processesby …by …

Creating optimal tasksCreating optimal tasks

Optimizing task allocation toOptimizing task allocation towarehouse resourceswarehouse resources

Preventing bottlenecksPreventing bottlenecks

Providing visibility of all warehouseProviding visibility of all warehouseprocessesprocesses

Providing troubleshooting toolsProviding troubleshooting tools

Supporting valueSupporting value--add activitiesadd activities

Providing mobile presentationProviding mobile presentationcapabilitiescapabilities




" 8) 5

Task-resource optimization

Determination of optimal routes and prioritization of tasks to beexecuted based on prioritization model

Monitoring and response tools

Monitor all aspects of your warehouse operation and invokemethods to respond to constantly changing circumstances

Alerts and troubleshooting tools

Visibility and exception handling of actual or arising problematicsituations

Support of VAS (operations)

Enable the place, time and resource involved for any value-added

activity to be optimized

Mobile presentation

Customization of data presentation to a resource on variouspresentation devices




" 8) 5

Task interleaving

A process by which a resource, having justcompleted a task, is assigned a new task, theclosest to the resource's current location

Site map management

Bin management – nodes, zones, zone groups,obstacles and levels

Route management – mandatory routes, distanceand duration calculation, tasks sequencing, workingareas

Task bundling A task bundle is a group of tasks assigned together

to one resource at any one time

A group of task bundles assigned together to oneresource at any one time

Execution control

Control the execution of tasks in predefined areaspreventing the crowding of resources




Route Management – Warehouse




$6!4

Processing rapid material turnover in a distribution centeror warehouse where the goods are brought from goodsreceipt directly to the goods issue area without beingstored.

Planned cross-docking:Match Inbound to outbound deliveries

Opportunistic (unplanned) cross-docking:Detecting opportunities for cross-docking in a dynamic

environment

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Automatic and manual decision-making modes

Automatic mode

System initiates decision-making during Transfer Order (TO) creation

Cross-docking evaluation based on series of checks of influencing

parameters and customized rules

Manual mode

Manager initiates planning and makes cross-docking decisionsmanually

System provides tools to assist in decision making (e.g., presentationof relevant unassigned incoming items by specific time interval)

Enables manager to maintain all types of cross-docking decisions(cancel, change, create)

Can overrule system decision as long as execution has not started

Evaluates utilization of cross-docking, considering the following: Ensure cross-docking does not contradict rules (e.g., strict FIFO)

Establish links between incoming stock and outgoing demand based oncustomer requirements and organizational goals

Enable customization of time windows to determine cross-dock relevance

( * $ ! 4 ( *




(* $6!4 ( * 9

GI - 916

OutboundDelivery/TR

InboundDelivery/TR

OutboundDelivery/TR

InboundDelivery/TR

GR - 902

Decision criteria – Two ways of matching

The One-Step Execution

TO[Putaway TO]

Cross-docking Decision

Cross-docking Decision

GI - 916GR - 902XDK

Storage Type2nd TO1st TO

The Two-Step Execution

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Add to plan

Recalculate system recommendation

Document view resolution

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Inbound – Planning/Candidate

Outbound – Planning/Candidate

Decision (Not yet saved to decision pool)

( * +* !()




( * +* !()

You may also perform the following from the cross-dock planningscreen:

• Display all cross-dock opportunities for selected document or HU• Designate a document for cross-dock, without establishing link• Display execution progress of decisions related to specifieddocument• Add documents to a cross-dock plan• Open a graphical and tabular display of full unit loads to be picked

from storage or fulfilled by cross-docking• Call Yard Management scheduling for selected pairs of documentsin cross-dock plan

You may also perform the following from the cross-dock planning

screen:

• Display all cross-dock opportunities for selected document or HU• Designate a document for cross-dock, without establishing link• Display execution progress of decisions related to specifieddocument• Add documents to a cross-dock plan• Open a graphical and tabular display of full unit loads to be picked

from storage or fulfilled by cross-docking• Call Yard Management scheduling for selected pairs of documentsin cross-dock plan

$ !4 (




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Optional phase

Provides detailed display of both planning and candidate documents

Enables further filtering of planning and candidate documents

Standard andcustomer

methods

Standard and

customer

hierarchy

Alerts

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Customizable Alert Threshold Value Definitions

$6!4 3 :*




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Before creating a cross-docking decision, YM checks if a location canbe scheduled. If so, when the decision is saved, YM creates the

corresponding scheduling activity.



:*




:*

Delivery /shipment check-in and check outRegistration of drivers and equipmentArrival/departure verification proceduresSealing and unsealing of equipment

Shipment destination determination (yard binor door)

Time-dependent door and staging areascheduling

Move instructions for yard personal

Visibility of containersYard stock visibilityShipping equipment movement and tracing on

the yardManagement of empty shipping equipment

Load/unload sequencing, synchronization andtracing

Alert monitoring

:* 6 9-(




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Keeps yard managers up todate as to the situation in the

yard

Enables them to initiate

responses via “methods”,

such as:

Assign transport equipment to

a document

Change attributes of a means

of transport or transport

equipment

Maintain yard activities

Schedule transport equipment

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)

Driverarrives at

facility

Doesdriver

have billof lading?

Guard checksdestination on

BOL

Guard searches fortrailer/ shipment in

SAP R/3

Guard receivestrailer into “yard”

in R/3

Isdestination

correct?

Is trailer/shipment

in R/3?Guard contacts

supervisor

Is trailerneeded atdoor now?

Driver dropstrailer in yard

Guard receivestrailer at specific

door in R/3

Driver dropstrailer at specified

door

No

Yes No

Yes

No

Yes

No

Yes

+* !(). "( " !




)

Inboundshipment isactivated for

unloading

R/3 determinesbest door for

unloading

Is dooracceptable

?

Spotter notifiedvia RF of trailer

move

Supervisoraccepts

suggested door

Supervisorreviews

suggested door

Supervisorselects new

door

No

Spotter movestrailer to door

Spotter confirmsmove via RF

%(6*** %




Value-Added Services (VAS) arebasic operations that areperformed in the warehouse toincrease the value of goods

from the business partnerperspective.

Examples of VAS include activitiessuch as hanger insertion, price

marking, tagging, and customer-specific packaging and labeling.

Functionality is provided to create,

perform and monitor VASactivities in the warehouse.

% *




A VAS order is the basicobject with which you plan

and manage VAS

VAS Order holds a set of

instructions to be

performed, a work center,

and process statuses

After VAS is complete, the

VAS order will hold the

total duration of execution

and the person whoperformed the work as a

basis for billing in external

module.

%(6*** %




• Transfer VAS material

to VAS work center

• Determine VASrelevance

• Give instructions

• Pass VAS activitydata to invoicing

• Confirm instructions

• Provide visibility atwork center

• Exclude work centerStock from WM allocation

% * 9




Picking TO

Work Center WC01

Packing

Work Center WC02

Palletizing

DeliveryDelivery

VAS

Order

VAS

Order

$6$-)




Collaboration with all partnersinvolved in the supply network isvery important. Bycommunicating with partnersand exchanging information on

time, you can achieve efficientprocesses and minimize costs.

4* 5! ( $




SAP Enterprise Portal

SAP Auto-IDInfrastructure

SAP Event Management

SAP Web Application Server

SAP R/3SAP

RFID-Adapter

LegacyRFID-

Adapter

Business process content:Packing and unpacking, goods issue and receipt,track and trace

+



!(2* 54




111 Integrated Scenario

R/3R/3

Logistics FI/CO

SAP WMSSAP WMS

122 Decentralized Scenario

R/3R/3

SAPSAP

WMSWMSSAPSAP

WMSWMS

OtherERP

$( $




WCUs aid operations that areautomated by using MaterialHandling Equipment

IDocs

TRM

$2




Flexible setupto support awide range ofvariants

!(- "( 9




SAP offersenhancementtools that you canuse to develop

additionalfunctionalitywithout changingthe SAP standardsource code

6




Inventory accuracy of 95% to 99.5% with a radio frequencybased Warehouse Management System (WMS) areroutinely achieved

Labor savings of 20% to 40% achieved through either

direct staffing reductions or by increased output

15% to 25% reductions in indirect staffing (e.g., warehouseadministration is also possible)

Space utilization increases of 10% to 20% possible

Most companies have reduced costs associated withperforming a physical inventory by 75%, others have

eliminated the need altogether

Order fulfillment or shipping accuracy of more than 98% ispossible

* $






Wrap-up




For more information, please see the following links:

http://help.sap.com/

http://service.sap.com/scm

< 8) "4




SAP WM covers all warehouse processes from goods receiptthrough goods issue

SAP WM has simplified processes which reduce the cost pertransaction

Mobile data entry is fully supported in SAP WM

SAP WM is an integrated solution

SAP WM can be run in an integrated or distributed scenario

Extended functionality in SAP WM includes Yard Management,Cross Docking, and VAS

SAP’s WM functionality is a robust solution that meetsrequirements for the simple or complex warehouse, whilemaintaining tight integration to the rest of the suite

: "




Questions?

Contact information:

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