SAP Extended Warehouse Management
Webinar – Jan 18, 2018
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Established in 1997, Wise Men is an IT Solutions provider with offices in USA, India & UAE. We are a CMMI Level-3 Certified, Women and Minority owned company with employees and consultants deployed globally. Wise Men has helped provide skilled IT resources to our Clients and provide best in-class service to our customers. We serve several Global 1000 companies who enjoy our high-quality services at competitive prices.
Technologies we are good at are: EAI (Fusion & Tibco), SAP, Web (.NET & Java), Infrastructure: (Linux, Unix, Oracle DBA, Basis), Analytics (SAS, Big Data & Hadoop) and a few others. We provide best in-class services to our customers. New areas we are helping our customers are: Cloud, Analytics, and IoT.
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Wisemen – Logistics and Supply Chain Practice
• SAP Solutions Design and Development Practice Team
• Experienced in Global Implementations, Rollouts, Upgrade and Support Engagements Across
o Multiple Versions of SAP ECC, S4 HANA and SAP EWM
• SAP EWM Implementations and Support for a Major Retail Vertical
• SAP – SCM / Logistics Practice Offerings
• Assessments
• Roadmap / Strategy Development
• Project Planning – Migrations and Greenfield Implementations
• Solution Design and Business Process Improvements
• Project Execution -
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Why SAP EWM ?
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Why was SAP EWM Developed?
Requirements for data volume, performance and process flexibility made a new
architecture necessary
Extends the basic concept of Transfer Orders to enable process flexibility – moves
away from just Managing Stocks to Controlling Processes
High risk to change existing architecture in a mature application (WM) with
thousands of live customers
Follows on from the Decentralized SAP warehouse concept
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SAP EWM Brings Efficiencies to all Warehouse Processes
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SAP EWM – Key Functionalities
Advanced Wave Management
Warehouse Order Creation Rules
Slotting
Cross-Docking
Value-Added Services and Kitting
Yard Management
Internal Routing
Rearrangement
Resource & Labor Management
Warehouse Monitoring
Analytics & Reporting
Import / Export, Dangerous Goods & Compliance
Native Technologies (RF, RFID, Voice, Material Flow
System)
TCI, TCO Reduction, HANA, Optimization Tools
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SAP EWM - Core Processes and Supported Functions
Inbound Processing
• ASN data receiving, validation, correction • Transpiration unit mgmt. • Goods receipt • Putaway bin determination • Internal routing • Slotting • Deconsolidation • Putaway • Returns / reverse logistics • Goods receipt optimization • Advanced returns mgmt.
• Transportation cross docking • Pick from goods receipt/push
deployment • Yard management
• RF / RFID Enablement • Quality inspection • Import / export integration • EH&S integration • eSOA enablement
• Rearrangement • Inventory counts / record accuracy • Replenishment • Freight order management • Kit-to stock
• Labor management • Opportunistic cross docking • Merchandise distr. X-docking
• Packaging specification • Batch management • Serial numbers • Catch weight • Material Flow System • Warehouse cockpit
Outbound Processing
• Order deployment • Route determination • Wave management • Picking bin determination • Warehouse order creation • Work assignment • Picking & packing, staging • Loading & goods issue • Kit-to-order • Manual outbound deliveries • Production supply
• Task interleaving • Execution constraint mgmt. • Semi-system-guided work
• Graphical warehouse layout • Transp. Integration (LES) • ERP transportation integration • Multiple EAN • Cartonization • Rapid deployment package SU
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Storage & Operations
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Built-in Optimization in SAP EWM
Automatic shipping-unit determination
Slotting Advanced storage concept; ABC goods classification
Cartonization
Wave management Optimized work orders; efficient pick path
Labor management Reduced labor costs; improved labor planning
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Advanced Wave Management with SAP EWM
• Automatic, semi-automatic & manual wave planning & release • Template-driven wave creation (wave templates with predefined completion times) • Delivery item grouping/split (according to route, pick area, packing lanes, product) • Wave milestone status tracking and monitoring
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Rearrangement with SAP EWM
• Dynamic and planned rearrangement based on slotting optimization results (i.e. based on product demand data - promotions, seasonal plans, etc.)
• Flexible rearrangement execution to fit capacity / workload plans
Optimal product location storage for better labor and picking efficiency
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Internal Routing and VAS
• Complete process coverage - routing determination & step/process control
• Layout-oriented routing (for equipment resources incl. material flow system conveyor segments)
• Process-oriented routing (based on sales / purchasing order, product, customer & vendor data)
Efficient, automatic routing determination
• Seamless integration with internal routing • Value added service time & material reporting
Integration of VAS Services – INB and OUTB
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Flow through Put Away
When goods received, it can be the case that you are unable to send the goods to a final ship-to party completely. This can affect products that are delivered in an unpacked state, or whole handling units. In this case, it can move the goods after goods receipt to a cross-docking storage type that are using as a repacking area.
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Cross-Docking
Direct transfer from goods receipt to goods issue for reduced handling & storage costs
• Planned cross-docking – Transportation cross-docking (based on route determination from defined route network) – Merchandise cross-docking (based on retail allocation for inbound delivery split across multiple retailers)
• Opportunistic cross-docking – Inbound-driven (automatic check at goods receipt for suitable outbound orders/delivery items) – Outbound-driven (automatic check at wave release for suitable inbound orders / delivery items) – Push deployment (automatic SAP Service Parts Planning (SPP) demand check for incoming parts) – Pick from goods receipt (automatic SAP SPP customer back order check for needed parts in goods receipt)
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SAP EWM – Labor Management
Labor Planning /Simulation
Short & mid-term resource planning based on
Planned workload (ERP
purchase orders & deliveries) Planned work duration
(Engineered labor standards, historical data, route network / travel distances)
Workload Monitoring
Planned / executed task monitoring
Warehouse orders, indirect labor, physical inventory…
RF & desktop-based task confirmation
Exceptions & alerts
Labor Analytics / Reporting
Task performance reporting Employee & supervisor
views Direct & indirect labor Planned & actual times
Cross-warehouse / DC comparison
Performance transfer to HCM
Increased warehouse productivity with labor & resource planning, visibility and reporting
Accurate workload forecast for efficient capacity balancing
Real-time labor activity visibility for improved efficiency & timely problem
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Leading Edge Warehouse Technology Integration
Increased accuracy, efficiency, and visibility
Material flow system (MFS) • Programmable logical controllers (PLC) • Pallet and case conveyors
Native technology integration • Mobile radio frequency (RF) • Pick by voice • RFID
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World-class Analytics with SAP EWM
Cross-warehouse performance monitoring
Comprehensive, central warehouse operation monitor
Cross Distribution Center Performance
Comprehensive, real-time warehouse operations reporting
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Our Approach / Methodology
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Wise Men Active – Implementation Approaches
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• Phased Approach vs Big Bang • We always recommend the phased pilot based approach vs any big bang alternate
• Technical Migration vs Full Fledged Functional Process Improvements • Almost always Pilot Driven Technical Migration – after Roadmap has been drawn up • Technical Migration with chosen few process changes to begin with at pilot site • Expand to cover additional chosen process improvements at pilot • Prepare Phased Roll Out plan • Execute Roll Out Plan
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Wise Men Active - Implementation Process
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Start with executable content Verify solution scenarios meeting business needs
Tailor solution in short, time boxed sprints
Cutover and begin productive use
Template Presentation to stakeholders
Determination of solution, scope and value
Implementation Plan Solution Validation
Gap identification and Closure
Determination of config values
Approval of release & plan Configuration
Testing
Data migration
Solution walkthrough
Support for Production
In Production
Cut over
Organizational & Production readiness
Prepare Explore Realize Deploy
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WM to EWM Migration Approach
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Technical Migration
Project Preparation
Realization Cut-over and
Final Preparation
Go-Live and Support
Migration EWM Functionality Implementation
Blue Print
The WM-EWM migration approach has multiple benefits and implications on the project timeline,
and cost.
Blueprint phase On a typical EWM blueprint there is significant time allocated to the explanation and demonstration of EWM core objects. Business needs to fully comprehend the concepts in order to formulate their requirements. This is clearly where the main benefit of the migration approach resides. The business’ familiarity with those core concepts will highly improve their engagement in the project and their ability to think along with new possibilities within EWM. Moreover, the scope of the blueprint discussions would get focused on the EWM specific features such as process and layout-oriented storage control, warehouse order creation rules, and wave management.
Realization phase With the migration tool that has been made available by SAP, the configuration of the migrated objects gets reduced to simply tweaking the additional EWM-specific options. For example, a warehouse process type will be available with the settings that were in place on the WM warehouse movement type. The biggest block of the configuration will then get shifted toward setting up the EWM specific functionalities.
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SAP ERP WM to EWM – Leverage Standard Migration Tools
SAP ERP
SAP EWM
Products, Bins, Stock, Inventory,...
Master data migration • Warehouse Product Migration • Storage Bin Migration • Stock Migration • Physical Inventory Completeness Migration • Map Storage Unit Type to Packaging Material • Map Warehouse Management Unit of Measure to
Packaging Material
SAP provides a user-friendly migration tool that covers most of the in-scope objects. This tool is available as part of the EWM module and works by reading the data, through an RFC connection, from the source WM system and downloading it into a file that could then be uploaded to the destination EWM system. The functions available to migrate data from an LE-WM system to SAP Extended Warehouse Management (EWM).
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Wise Men Active – Implementation for SAP EWM
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• Wise Men Active Methodology for SAP EWM tailored specifically to accelerate and simplify the adoption of Warehouse Management
• Processes delivered with Wise Men Active Best Practices support core industry requirements and manage Multiple Geographies, Subsidiaries, Country specific Requirements
• All the Best Practices are pre-Configured and are ready to use for Complex Implementations within short time
• Wise Men Active Methodology uses SAP Activate and Solution Manager pre-configuration and preliminary requirements for SAP EWM Implementation
• Our Solution can be adopted as Agile methodology for All Enhancements Benefits to Customer:
• Predefined templates, objects and best practices available in a guided process
• Achieving Faster TIME TO VALUE and reduced COST of Implementation
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Wise Men – Process Transactions
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Wise Men – SAP EWM Sample Reports…
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Some of the Key Lessons Learnt….
• Data Migration and Data Validation is Key
• In a heavily customized system start RICEFW migration and optimization process upfront
• Customize on need basis for the delta (which could be less than 10%). You have all the time after go live to continue enhancing the system
• Integration / Regression and UAT Test Planning and Test execution
• Strong change management plan
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Questions & Answers
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