Warehouse and DCManagement (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 Purchase Order for Single
Article
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4.1.1.2Create Purchase
Order for Generic Article
4.2.1Post Rough
Goods Receipt
4.1.2Create Inbound
Delivery
4.1.3Appointment
Planing
4.2Receipt of incoming
Goods
4.2.2Enter an Actual
Appointment
Alternative 2:Confirm with
difference
Alternative 1:Confirm without
difference
4.4.2.2Log-on to the
Terminal
5.1.1Search for the
Article Document for Goods Receipt
5.1.2Create a Return
Delivery
5.1.3.1Issuing the
Article Document as Goods Issue / Receipt Slip
4.4.1Alternative 1:
Asynchronous Warehouse
Management
4.3Put away
Preparation
5.1.3.2Create a
Transfer Order in the
Warehouse
5.1.4Goods
Collection
6.1Replenishment
Planning
6.2.1Create a Transfer
Order
4.2.3Goods
Receipt with Reference to the Rough
Goods Receipt
4.4.2.3Putaway
Processing
7.1Create an Outbound Delivery
6.2.2Confirm Transfer
Order
4.4.2.1Ressource
Planning with the RF Monitor
Process Flow Diagram
7.2.1Create Transfer
Order as a Picking
Document
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7.2.2.1Alternative 1:
Asynchronous Warehouse
Management
7.2.2.2.2Log-on to the
Terminal
Alternative 1:Confirm without
difference
Alternative 2:Confirm with
difference
7.2.2.2.1Resource
Planning in the Monitor for Mobile Data
Entry
7.2.2.2.4Monitor from Mobile Data
Entry Monitor
7.4.2Creating
Wave Picks
7.4.2.1Alternative 1:
Automatic Capacity-Driven
Creation of Wave Picks
7.4.3Create Transfer
Orders in Collective
Processing
7.4.2.2Alternative 2:
Creating Wave Picks Manually
7.4.4Confirm
Transfer Orders in Collective Processing
7.4.5Subsequent
Delivery Split
7.3 Post Goods Issue
7.4.1Create
Deliveries with Planned
Picking Time
7.4.6Goods Issue in
Collective Processing
8.1Create a Physical Inventory Document
8.2.1Manual Entry
8.2.3Carry Out Inventory Recount
8.4.1Difference Statistics
8.4.2Determine Inventory
Status
8.3.2Post
Differences in Inventory
Management
7.4.1.1Alternative 1:
Manual Creation
8.3.1Post Differences
in Warehouse Management
8.2.2Trigger
Inventory Recount
9.1Warehouse
Activity Monitor
9.2Outbound Delivery Monitor
9.3Wave Pick
Monitor
9.4.2Rough Workload
Estimate After Goods Issue
9.4.1Rough Workload
Estimate After Creation of Outbound Deliveries
Document Flow in the Warehouse
GR AreaGR Area
Shipping Area
Shipping Area
GOODS 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
Create Transfer Order
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
Create Transfer Order
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 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 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