742 Scen Overview en In

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Warehouse and DC

Management (WM)

SAP Best Practices for Retail (India)

SAP Best Practices



Scenario Overview 1

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 flows covered Goods Receipt Processing

Return Deliveries

Internal Warehouse Replenishment

Goods Issue Processing

Warehouse Physical Inventory

Tools and Workbenches

Purpose and Benefits:



Scenario Overview 2

Required

SAP EHP3 for SAP ERP 6.0

Company roles involved in process flows

Retail Warehouse Clerk

Retail Store Manager

Retail Warehouse Manager

SAP Applications Required:



Process Flow Diagram

4.1.1.1Create PurchaseOrder for Single

Article

Reta

il

W

areho

Ma

nager

RetailWa

rehouse

Clerk

Retail

Store M

anag

er

4.1.1.2Create Purchase

Order for Generic Article

4.2.1Post Rough

GoodsReceipt

4.1.2Create Inbound

Delivery

4.1.3Appointment

Planing

4.2Receipt of incoming

Goods

4.2.2Enter anActual

Appointment

Alternative 2:Confirm with

difference

Alternative 1:Confirm without

difference

4.4.2.2Log-on to the

Terminal

5.1.1Search for the

ArticleDocument for Goods Receipt

5.1.2Create a Return

Delivery

5.1.3.1Issuing the

ArticleDocument asGoods Issue /Receipt Slip

4.4.1Alternative 1:

AsynchronousWarehouse

Management

4.3Put away

Preparation

5.1.3.2Create a

Transfer Order in theWarehouse

5.1.4Goods

Collection

6.1Replenishment

Planning

6.2.1Create aTransfer

Order

4.2.3Goods

Receipt withReference tothe Rough

GoodsReceipt

4.4.2.3Putaway

Processing

7.1Create anOutboundDelivery

6.2.2ConfirmTransfer

Order

4.4.2.1Ressource

Planning withthe RF Monitor



Process Flow Diagram

7.2.1Create Transfer Order as a

PickingDocument

Retail

Wareh

M

anag

e

RetailWa

rehouse

Clerk

7.2.2.1Alternative 1:Asynchronous

WarehouseManagement

7.2.2.2.2Log-on to the

Terminal

Alternative 1:Confirm without

difference

Alternative 2:Confirm with

difference

7.2.2.2.1

ResourcePlanning in theMonitor for Mobile Data

Entry

7.2.2.2.4Monitor fromMobile Data

Entry Monitor

7.4.2Creating

Wave Picks

7.4.2.1Alternative 1:

AutomaticCapacity-Driven

Creation of Wave Picks

7.4.3Create Transfer

Orders inCollective

Processing


Creating WavePicks Manually

7.4.4Confirm

Transfer Ordersin CollectiveProcessing

7.4.5Subsequent

Delivery Split

7.3 Post GoodsIssue

7.4.1Create

Deliveries withPlanned

Picking Time

7.4.6Goods Issue in

CollectiveProcessing

8.1Create aPhysicalInventoryDocument

8.2.1Manual Entry

8.2.3Carry OutInventoryRecount

8.4.1DifferenceStatistics

8.4.2DetermineInventory

Status

8.3.2Post

Differences inInventory

Management


ManualCreation

8.3.1Post Differences

in WarehouseManagement

8.2.2Trigger

InventoryRecount

9.1Warehouse

ActivityMonitor

9.2OutboundDeliveryMonitor

9.3Wave Pick

Monitor

9.4.2Rough Workload

Estimate After Goods Issue

9.4.1Rough Workload

Estimate After Creation of OutboundDeliveries



Document Flow in the Warehouse

GR Area

GR Area

Shipping

Area

Shipping

AreaGOODS ISSUE

GOODS ISSUE

GOODS RECEIPT

GOODS RECEIPT

WAREHOUSE

PUTAWAYTRANSFER ORDER

PUTAWAYTRANSFER ORDER

PICKING

TRANSFER ORDER

PICKING

TRANSFER ORDER

Outb. Del.

Outb. Del.

PO

PO

Inb. Delivery

Inb. Delivery

Rough GR

Rough 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 number

Storage type

Storage section



Warehouse Structure - Warehouse PC1

GI-Area

GR-Area

1

Gate 1

2

Gate 2

3

Gate 3

4

Gate 4

H01

High Rack Storage

Random Storage

Section 001 Fast moving items

Section 002 Slow moving items

K01

Picking storage type

Fixed storage binsSection 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 001



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

G I D o c u m e n t

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

WM

Warehouse



Putaway – Transfer Order

Transfer Requirement

QuantP u t a w a y

( p h y s i c a l m o v e m e n t )

Confirm

Transfer Order

Confirm storage bin

and quantity

Create

Transfer Order

Automatical

determination

of storage bins

Transfer Order Transfer Order



Warehouse Data in the Article Master

Article Master DataWarehouse 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 bin

smaller than

minimum quantity?

Trigger

replenishment

Transfer request

is generated

Create

Transfer Order

Confirm

Transfer Order

Physical Goods Transport



Picking – Delivery

Delivery is relevant for picking

Transfer order required

!

!

Delivery

Article

Quantity

SiteStor. Location

Delivery

Article Quantity Site

Stor. Location

DeliveryDelivery

Goods Issue

WM

Warehouse



Picking – Transfer Order

Quant

Confirm

Transfer Order

Confirm Picking Quantity

P i c k i n g

( p h y s i c a l m o v e m e n t )

Quant

In the

shipping

zone

Create

Transfer Order

Automatical

determination

of storage bins

Picking ListPicking List

Transfer Order Transfer Order

DeliveryDelivery

Picking Storage Type



Picking – Goods Issue

Goods Issue

Goods

Issue

Goods

Issue

Delivery is relevant for picking

Transfer order required

!

!

Delivery


Stor. Location

Delivery


Stor. Location

DeliveryDelivery

WM

Warehouse

Picking is finished







Warehouse Activity Monitor

List of all processes within a critical

timeframe for execution:• Unconfirmed transfer orders• Open transfer requirements• Critical deliveries• ...

Direct

follow-on-processing

of the critical

documents

List of all

critical documents





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 workloadqueues

• The warehouse employees are

assigned the 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 warehouseemployees with transfer orders from their

queue continuously.

Touch screen of the

warehouse employee

T r a n s f e r O r d e r s



Physical Inventory with WM

Continuous Physical Inventory

Inventory

Difference

Block storage bins

Unblock storage bins

Create Physical Inventory

Document

Print / Release

Count List

Count, Weigh, Measure,

Estimate

Record Inventory Count

Results

Process

Difference 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



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