SCM Extended WarehouseManagement 7.0 Overview
Solution Management EWM
SAP AG
AGENDA
1. Introduction and Overview
2. Graphical Warehouse Layout
3. Resource Management
4. Cross-Docking
5. Production Supply
6. Continuous Improvements
SCM Extended Warehouse Management
Newest warehouse management application from SAP on the SCM platform
Developed as an integral part of our Supply Chain Management Solution
Designed to handle business requirements from simple to complex warehouses forcompanies in a variety of industry sectors
Release 5.0 general availability since November 2006
Release 5.1 general availability since May 2008
Release 7.0 general availability since May 2009
SAP: 16+ Years of Warehousing Expertise
Extending the Scope of our Warehousing solutions
20081993
• StorageUnits
• ParallelProcessing
1995
Integration• PP• QM• LIS
1997 1998
DecentralizedWM• Prototype
of RF
2000
• Native RF/SAP Console
• HUM• Packing Stn
2002
Task andResourceManagement
R/3Release2.0/2.1
R/3Release3.0/3.1
R/3Release
4.0
• Rough WorkloadEstimate
• Picking Waves/Two Step picking
• WarehouseMonitor
• Integration to HR
R/3Release
4.5
R/3Release
4.6
R/3Release4.7 EE1
2003
ERP EWM• XD• YM• VAS
R/3Release4.7 EE2
2005
SCMEWM5.0
SCMEWM5.1
SCMEWM7.0
20092006
•Slotting•Rearrange-ment
•WarehouseOrders
•WarehouseMonitor
•InternalRouting
•Labor Mgmt•MFS•WH Cockpit•RFID Integr.•Batch Mgmt•Serial Nr•Catch Weight•ESA
SCMEWM7.1
•Integrationto Transp.processes
*ReverseLogisticsenhancements
•GraphicalWH Layout•ProductionSupply•MerchandiseDistrib. XD
•TaskInterleaving
2010
Enterprise, Service Parts Execution and Network Focus
SAP Warehouse Management in mySAP ERP(integrated or decentralized WM)
Enterprise Focus SPE / Network Focus
Integrated Scenario
SAPSAPERPERP
Logistics FI/CO
WM
Decentralized ERP Scenario
ERPERP
SAPSAPLESLES
SAPSAPLESLES
OtherERP
Dec WM = full SAP ECC system
WMWM
SCM Extended Warehouse Management
SCM EWMAdd-OnExtended
WMExtended
WMExtended
WM SAP SCM
ERPERP
ERPERP
AGENDA
1. Introduction and Overview
2. Graphical Warehouse Layout
3. Resource Management
4. Cross-Docking
5. Production Supply
6. Continuous Improvements
Graphical Warehouse Layout
Defines the structure of the warehouse layout and yard using a 2D graphical tool that allows you to createthe warehouse/yard structure visually, improving and accelerating configuration
Provides graphical 2D representation of the warehouse and the yard of the warehouse enabling you tovisualize warehouse activities and allow interactive interventions
Displays resources and status information
Displays yard resources, e.g., vehicles and trucks, and allows color coding or logos to be used in order totrack status progress in yard
Allows navigation from graphics to related information
Easy GraphicsFramework
Other technologyFor next release
Mappingfor
EGF
Mapping
Data preparationand functionality
Back end(already existingCore functions)
GraphicalRepresentation ofWarehouse
Select Warehouse to View
Enter Warehouse Number to view graphically:
Visual Representation of Selected Warehouse
Zoom Possibilities — To Bin Level
Link to Storage Bin Characteristics
Using the left mouse click on the storage bin, we can immediately see the mostimportant characteristics of the storage bin
Link to Storage Bin Maintenance Transaction
Using the right mouse click, we can go directly into the storage bin maintenancetransaction.
Status Overview of Objects: Conveyors
Selecting the conveyor status allows us to see that three conveyors need attention
AGENDA
1. Introduction and Overview
2. Graphical Warehouse Layout
3. Resource Management
4. Cross-Docking
5. Production Supply
6. Continuous Improvements
Resource Management
Three Types of Optimization
To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:
Task interleaving: a process by which a resource, having just completed andconfirmed a task, is assigned a new task, the source of which is close to theresource’s current locationExecution constraint: enables you to control the execution of tasks in predefinedzones of a site, preventing resource bottlenecks and ensuring the workability of thesemi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actual task andrequests new work, the system checks the available open tasks in an area andsends a user to this area without assigning a specific task
Task InterleavingQueue Types for Task Sequencing
2 1
Inbound Internal Outbound
Execution Constraint
To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:
Task interleaving: a process by which a resource, having just completed andconfirmed a task, is assigned a new task, the source of which is close to theresource’s current locationExecution constraint: enables you to control the execution of tasks in predefinedzones of a site, preventing resource bottlenecks and ensuring the workability of thesemi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actual task andrequests new work, the system checks the available open tasks in an area andsends a user to this area without assigning a specific task
Execution Constraint Example
5 x Pickers22 x Pickers; 1 x Simple Forklift1ZN0624 x Pickers21 x Picker; 1 x Simple Forklift1ZN041
Resource TypesCombination
ZoneEC
There are currently four pickers subscribed to the destination zone ZN06 soEC 2 is available.However, since the source zone ZN04 has reached its capacity of four pickers,EC 1 is unavailable.Since the movement task is subscribed to an unavailable EC, it cannot beassigned to the worker, Marcus.
Semi-System Guided Work
To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:
Task interleaving: a process by which a resource, having just completedand confirmed a task, is assigned a new task, the source of which is closeto the resource's current locationExecution constraint: enables you to control the execution of tasks inpredefined zones of a site, preventing resource bottlenecks and ensuringthe workability of the semi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actualtask and requests new work, the system checks the available open tasks inan area and sends a user to this area without assigning a specific task
2 1
Semi-System Guided Work Example (cont.)
AGENDA
1. Introduction and Overview
2. Graphical Warehouse Layout
3. Resource Management
4. Cross-Docking
5. Production Supply
6. Continuous Improvements
Cross-Docking
Cross-docking is a method of materials processing by which materials thathave arrived at the warehouse are brought from goods receipt directly togoods issue without being put away:
Retail Merchandise XD is an existing cross-docking scenario in SAP ERP6.0 with Retail Solution switched on. Merchandise Distribution is essentialfor logistics processes in the retail industry. The retailers plan, control, andmanage their flow of merchandise from the vendors via distribution centersto the stores or customers.
Opportunistic cross-docking allows incoming deliveries to be redirectedto cover outbound requirements. The cross-docking decision is made inEWM based on information available in the warehouse.
Production cross-docking and production supply cross-docking.Opportunistic cross-docking for production supply.
Merchandise Distribution — Cross-Docking: Inboundand Outbound Deliveries
SAP Retail EWM
Inbound delivery
-Ultimate consignee for HU-CD processing method- Item type-Difference indicator-PO number/item
Run Collective PO Plan Allocation
Create Purchase Order
Vendor
ReceivePurchaseOrder
Send ASN/inbounddelivery
DistributionData
Create ASN/inbound delivery
Create “planned”outbound delivery Outbound delivery
-PO number/item-CD processing method- Item type-Difference indicator
Inbound delivery-CD processing method-PO number/item-Item type-Warehouse process type-Stock type
Outbound delivery-PO number/item- Item type-Warehouse process type-CD processing method-Stock type
Handling Unit (HU)-Ultimate consignee for HU
CD: Cross-Docking
Example 1: Retail Cross-Docking: Customer-Specific Pre-Packed Mixed HU
Goods Receipt
Final StorageType
Goods Issue
Active HU Warehouse Task (WT)Active Material Pick WT
Inactive Material Pick WTDeconsolidation
Mat AMat B
UC1Mat AMat B
UC1
Mat AMat B
UC1Mat AMat B
UC1
Inb.Del.Ref.Deleted
Door
Door
*UC1: Ultimate Consignee1
UC1
Example 2: Retail Cross-Docking:Mixed Handling Unit Within Ship-HU
Goods Receipt
Final StorageType
Goods Issue
Active HU WTActive Material Pick WTInactive Material Pick WT
Deconsolidation
Inb.Del.Ref.Deleted
Door
Door
CD Storage Type
Merchandise Distribution-Flow Through:Distribution by Customer (n:m Relationship)
STAGAREA1
Outb-1 CUST1
Pick by (all) customer to distribute theproducts to the intermediate bins
= Warehouse Order (WO) 1= WO 2= WO 3= WO 4
CUST1
CUST2
1010
10 10
10
10
Material 1
Material 2
Outb-2 CUST1Material 3
Outb-3 CUST2Material 3
Material 2
Outb-4 CUST3Material 3
Outb-5 CUST4Material 1
Material 2
STAGAREA2CUST3
DOOR1
DOOR2
101010
CUST4
10 1010
10 10
10
10 10
Pick by customer, limit to number of stagingareas (here 2)
= WO 1= WO 2
CD Storage Type
Merchandise Distribution-Flow Through:Distribution by Article (n:m Relationship)
STAGAREA1
Outb-1 CUST1
Putaway by product to distribute theproducts to the intermediate bins
= WO 1= WO 2= WO 3
CUST1
CUST2
1010
10 10
10
10
MAT1
MAT2
Outb-2 CUST1MAT3
Outb-3 CUST2MAT3
MAT2
Outb-4 CUST3MAT3
Outb-5 CUST3MAT1
Outb-6 CUST4MAT1
MAT2
STAGAREA2CUST3
DOOR1
DOOR2
1010
CUST4
10 1010
10 10
10
10 10
Pick by customer, limit to number of stagingareas (two here)
= WO 1= WO 2
Merchandise Distribution-Flow Through: DeliveryAdjustment
Outb-1 CUST1
Item10
QTY = 15
PO-47-10
Outb-2 CUST2
Item10
QTY= 15
PO-47-10
CD Storage Type
Item20
QTY = 10
PO-47-20
Item20
QTY=10
PO-47-20
1010
10 10Fairshare:Reduce 15 to 10for each customer
Start deliveryadjustment afterGR is complete
Underdelivery:(only 20 deliveredinstead of 30)Inb-1
PO-47-10
Inb-2
PO-47-20
10 10
1010
Cross-Docking
Cross-docking is a method of materials processing by which materials thathave arrived at the warehouse are brought from goods receipt directly togoods issue without being put away:
Retail Merchandise XD is an existing cross-docking scenario in SAP ERP6.0 with Retail Solution switched on. Merchandise Distribution is essentialfor logistic processes in the Retail industry. The retailers plan, control, andmanage their flow of merchandise from the vendors via distribution centersto the stores or customers.
Opportunistic cross-docking allows incoming deliveries to be redirectedto cover outbound requirements. The cross-docking decision is made inEWM based on information available in the warehouse.
Production cross-docking and production supply cross-docking.Opportunistic cross-docking for production supply.
Example: Opportunistic Cross-Docking(Homogeneous Handling Unit) — Inbound
Goods ReceiptArea
Counting Station
Final StorageType
VAS Station Inbound
VAS Station OutboundPacking Station OutboundStaging Area
CUST_Inb
CUST_Outb
IB IB IB IB
OUTOUTOUTOUTOUT
Active HU WT (Warehouse Task)Active Material Pick WTInactive Material Pick WT
IB
Outbound
Delivery
Inbound
Delivery
Example: Opportunistic Cross-Docking(Homogeneous Handling Unit) — Outbound
Goods ReceiptArea
Counting Station
Final StorageType
Packing Station OutboundStaging Area
IB IB
OUTOUTOUT
Active Material Pick WT
IB
Outbound
Delivery
Inbound
Delivery
Active HU WT (Handling Unit Warehouse Task)
AGENDA
1. Introduction and Overview
2. Graphical Warehouse Layout
3. Resource Management
4. Cross-Docking
5. Production Supply
6. Continuous Improvements
Production Supply
In order to use a product (component) for a manufacturing order, it has to bebrought to the production supply area. When EWM is used, the productshave to be picked in the warehouse and moved to the production supplyarea.
There are several ways to provide components that are required for amanufacturing order:
Pick parts/release order parts: The products that are needed as componentsfor an individual order (pick parts) or for multiple orders (release order parts)have to be staged in the production supply area in time and in the requiredquantity.
Crate parts/kanban: Products that are often used in the production area areprovided independently from the existing orders. The warehouse is responsiblefor filling containers as requested by production. Kanban is a specialized way tohandle crate parts.
Standard Organizational Structure
Separate EWM storage location: Stocks in the Production Supply Area (PSA) aremanaged in a separate EWM-managed storage location, providing transparency forthe Production Supply Area stocks both in EWM (at bin level) and in ERP (atstorage location level).
AFS: Available for Sale
ROD: Received on Dock
Warehouse
Production Supply Area
Storage Location
Storage Bin
Alternate Organizational Structure
Non-EWM storage location: The stock in the Production Supply Area(s) is notmanaged in EWM, but in ERP MM-IM at storage location level.
AFS: Available for Sale
ROD: Received on Dock
Warehouse
Production Supply Area
Storage Location
Storage Bin
Alternate Organizational Structure (cont.)
EWM storage location in another EWM Warehouse: The staging to the ProductionSupply Area is a two-step process: an outbound process from the sending EWMwarehouse and an inbound process to the receiving EWM warehouse
AFS: Available for Sale
ROD: Received on Dock
Warehouse
Production Supply Area
Storage Location
Storage Bin
Scenario: Pick Parts and Release Order Partswith Two EWM Storage Locations
StLoc: Storage Location
POR: Production Supply Delivery Request
SPC: Production Supply Delivery
PP Order: Production Order
CONFIRM_DEC: Confirm Decentrally
GI: Goods Issue
Scenario: Crate Parts with Two EWM StorageLocations
Scenario: Kanban Parts with MM-IM StorageLocation
AGENDA
1. Introduction and Overview
2. Graphical Warehouse Layout
3. Resource Management
4. Cross-Docking
5. Production Supply
6. Continuous Improvements
Continuous Improvement
There are continuous improvements in the following areas:
Warehouse Monitor
Extensions in the putaway strategy
Improvements in process-oriented storage control for internal processes
Handling Unit process improvements
Material flow system enhancements
© SAP 2007 / Page 43
Thank you!
© SAP 2007 / Page 44
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