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742 Scen Overview

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Warehouse and DC Management (WM) SAP Best Practices for Retail (India) SAP Best Practices
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Page 1: 742 Scen Overview

Warehouse and DCManagement (WM)

SAP Best Practices for Retail (India)

SAP Best Practices

Page 2: 742 Scen Overview

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:

Page 3: 742 Scen Overview

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:

Page 4: 742 Scen Overview

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

Page 5: 742 Scen Overview

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

Page 6: 742 Scen Overview

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

Page 7: 742 Scen Overview

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

Page 8: 742 Scen Overview

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

Page 9: 742 Scen Overview

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

Page 10: 742 Scen Overview

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

Page 11: 742 Scen Overview

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

Page 12: 742 Scen Overview

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)

Page 13: 742 Scen Overview

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

Page 14: 742 Scen Overview

Picking – Delivery

Delivery is relevant for picking

Transfer order required

!!

Delivery Article Quantity SiteStor. Location

Delivery Article Quantity SiteStor. Location

DeliveryDelivery

Goods Issue

WMWarehouse

Page 15: 742 Scen Overview

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

Page 16: 742 Scen Overview

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

Page 17: 742 Scen Overview

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

Page 18: 742 Scen Overview

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

Page 19: 742 Scen Overview

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

Page 20: 742 Scen Overview

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

Page 21: 742 Scen Overview

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

Page 22: 742 Scen Overview

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

Page 23: 742 Scen Overview

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

Page 24: 742 Scen Overview

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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