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STAYING AHEAD OF THE COMPETITION TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT Westernacher Consulting and Services Staying Ahead of the Competition Techniques to Leverage the Full Capabilities of SAP Extended Warehouse Management © Westernacher │ www.westernacher-consulting.com │ Version 2.2 Knowing where to go is important, but reaching your goals is the real achievement. Neil Wightman
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Page 1: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

Westernacher Consulting and Services Staying Ahead of the Competition —Techniques to Leverage the Full Capabilities of SAP Extended Warehouse Management

© Westernacher │ www.westernacher-consulting.com │ Version 2.2

Knowing where to go is important, but reaching your goals is the real achievement.

Neil Wightman

Page 2: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

1

Traditionally, there was always a trade-off between the amount of functionality a software package offers and the

speed and flexibility with which it can be implemented

On the other hand, companies are more and more demanding when it comes to connecting to eCommerce

solutions, integrating contract logistics, while flexibly modeling end-to-end warehouse processes to meet

existing and future logistics requirements

• Learn how to leverage the full potential of SAP EWM and its core functionality

• Understand how SAP EWM can help you to flexibly model end-to-end intra-logistics processes – sharing best

practices and lessons learned from real customer examples

• Get an overview of how SAP EWM integrates with SAP TM

• See how SAP EWM can be integrated in an end-to-end eCommerce scenario leveraging latest Hybris

technology

In This Session

Page 3: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

2

Order

Management &

Fulfillment

Business Imperatives and Lessons Learned

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Page 4: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

3

Business Imperatives by Industry

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

• In light of decreasing margins, rising customer expectations, and mounting supply chain complexity,

companies face the challenge of ensuring the cost-efficient and reliable execution of their logistic and

warehouse operations

• Best-run companies master this challenge by optimizing logistics and fulfillment execution processes,

which is of paramount importance in order to remain competitive in today’s environment

• Despite industry-specific requirements, we do see a common trend when it comes to …

Page 5: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

4

Business Imperatives by Industry, continued

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Heterogeneous sales and distribution channels

• Seamless integration of warehouse logistics, multi-channel order taking, as well as contract logistics

• Shorter lead times and missing consolidation opportunities and flexible replenishment

• Store, eCommerce, and network distribution as well as industry-specific processes and best practices

Broader assortments and shorter Inventory range

• High volumes and throughput, low quantities, high frequency

• Optimal asset, space, and resource utilization

• Complex warehousing processes with high degree of variations

Shorter response and reaction time – from order to shipment

• Customer-, channel-, and demand-based optimization of warehouse activities

• Order, promotion, and special stocks as well as dynamic distribution models

• High ratio of customer and store returns

Industry-specific processes and value-added services

• Mixed pallets, low article stock, heterogeneous inventory, and stock purity

• Labeling and tagging, best-before date tracking, and catch-weight, “floor-ready” distribution

• Industry-specific product/article attributes and parameters

Page 6: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

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• Warehouse operation-centric logistic

model primarily focusing on

outsourced contract logistics

• eCommerce and order management

integration

• Sophisticated value-added service

offerings and process flexibility for

competitive differentiation

• Integration to Transportation

Management

• Industry-specific processes

• Reverse logistics

Warehouse Centric Network Logistics Transportation CentricProduction

Distribution Center Spare Parts Management Hubs and Yards Embedded Logistics

Ind

ustry

Ve

rtica

l

Business Imperatives by Warehouse Type

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

• Service parts management based

on a bill-of-distribution model

• Service-level commitments

• Order processing, fulfillment, and

returns management

• Supply chain coordination and

inventory planning, balancing,

replenishment, and distribution

• Different logistic scenarios and

multi-echelon supply chains with

different LSP roles and levels of

integration

• Load building and multi-stage cross-

docking

• Customs clearance

• Necessary step in globalized supply

chains

• Staging for complex supply chain

processes

• Planning and workload visibility

• Railcar, container, and vehicle

management

• Trans-shipment processing

• Commoditized service and asset

management

• Production supply-focused

in-house logistics

• Supplier consolidation

• Kanban/JIT/JIS

• Recycling/waste

• Replenishment

• Large investment in assets

(buildings, production

facilities, etc.)

• Large scale – single entity

Page 7: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

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Warehouse Centric Network Logistics Transportation CentricProduction

Distribution Center Spare Parts Management Hubs and Yards Embedded Logistics

Business Imperatives by Warehouse Type, continued

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Business Imperatives

• Efficient Space Utilization

• Optimized Movements

• Increased Logistics Speed

• Core Warehousing Operations

• Customs Handling

• Transportation Integration

• Shipment Consolidation

• Value-Added Services

• Reverse Logistics

• Cross-Docking

• Order entry processing & fulfillment

• Warehouse Automation

• Inventory Planning/Deployment

Process RelevanceHub & Yard

Operations

Embedded

Logistics

Spare Parts

ManagementDistribution

Center

Page 8: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

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Warehouse Centric Network Logistics Transportation CentricProduction

Distribution Center Spare Parts Management Hubs and Yards Embedded Logistics

Business Imperatives by Complexity

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Freight

Settlement

Planning &

Optimization

Import

Management

Export

Management

Order

Management

Delivery

Commitment

Customer

Invoice

Freight

Settlement

Planning &

Optimization

Storage &

Operations

Inbound

Processing

Outbound

Processing

Internal/External

Sourcing

Accounts

Receivable

Accounts

Payable

Vendor

Invoice

Internal/External

Procurement

Order

Fulfillment

Inbound

Transportation

Outbound

Transportation

Goods

Receipt

Goods

Issue

Sales

Finance

Procurement

Logistics

Risk & Compliance

Inventory

Management

Valuation &

Costing

Page 9: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

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• For supply chain networks, in order to be able to respond to changes and provide the required flexibility,

warehouse execution needs to be seamlessly integrated into the entire supply chain to monitor exceptions

and to provide insight into planning and operations

• All this requires visibility into the logistics network and traceability of material flows and logistics

execution

• Companies are challenged to offer multi-site, multi-service warehouse operations and execution to their

customers while mitigating technical challenges – all under a constant pressure to meet their customers’

expectations and flexibly react to changes

Lessons Learned

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Page 10: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

9

Implementing state-of-the-art warehouse solutions

• Implement industry-specific warehouse processes

• Implement warehouse solutions – from large to mid-size, as well as small warehouse locations

• Set up streamlined product flows and reduced handling, such as flow through and cross-dock

Lessons Learned, continued

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Integration and automation

• Seamlessly integrate warehouse solutions with the existing IT footprint and Infrastructure

• Leverage warehouse automation, voice picking, and storage and retrieval systems

• Transportation management, eCommerce scenarios, and complex fulfillment requirements

Scalability and flexibility

• Functional flexibility and scalability to meet ambitious process and business requirements

• Hybrid scenarios and deployment options, cloud-based usage concepts, and virtualizations

• Flexible process modeling, second- and third-level support

Page 11: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

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• Ever since the first SAP R/3-based versions

and leading right up to the current SAP SCM-

based systems, functionality has been

continually expanded and adjusted

according to customers’ needs

• In 2005, in addition to Warehouse

Management (WM) as part of SAP ERP, SAP

introduced SAP EWM

SAP Extended Warehouse Management – Introduction

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Page 12: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

11

SAP EWM was originally developed for complex warehouse and distribution centers with a high number of

different products and a high document volume, and in contrast to WM, it offers many new and expanded

functions and process-modeling capabilities.

Warehouse

Request

(optional)

Wave ManagementPicking

Putaway

Posting Change

Stock Transfers

Scrapping Warehouse

Task(s)

Warehouse

Order

Manual

Creation

Confirmation

Exceptions

Physical

Inventory DocumentAutomatic

Creation

WHT

WO

RF Queues

Manual

Modeling and controlling flexible warehouse processes

Combining your storage process steps into one storage process – you

use EWM storage control to map complex putaway or stock removals.

You can use the process-oriented as well as layout-oriented

methods for storage control. The goal of storage control is to

display your complex putaway or stock removal process

steps based on your processes or your layout data.

Process-Oriented Storage Control

Layout-Oriented Storage Control

1 2 3a

3b

1 2 3

2a 2b

1 2 3

SAP EWM Core Concepts

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Page 13: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

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Storage &

OperationsInbound

Processing

Goods Receipt Putaway Processing

Goods Receipt

Preparation

Putaway

Execution

Cross-Docking

ASN Handling

Transportation unit handling

Unloading

Goods receipt

Import customs processing

PLC communication via Material Flow System

Storage ConditionsHandling & storage

Outbound

Processing

Bin determination

Returns handling

Slotting

Putaway

Preparation

Quality Inspections

Deconsolidation

Catch weight

Repacking

Labeling & Tagging

Workcenter

Goods Receipt

On Dock

Merchandise Distribution

Flow-through X-Docking

SAP EWM supports the execution of inbound logistics processes by providing visibility of supply chain activities

from truck arrival to storage – including door scheduling, optimized goods receipt, and storage processes with

quality management, slotting, and handling of best-before dates, catch weights, and different pack sizes.

SAP EWM Inbound Processing

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

• Better use of manpower

• Facilitate cross-docking

• Streamline receiving and dock

management

• Optimize inventory placement

• Improve inbound inventory

visibility

Page 14: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

13

SAP EWM helps to flexibly manage and integrate all internal warehouse processes, such as the replenishment of

picking areas and physical inventory. Through extensive reporting, alerts, event management, and labor

management functionality, retailers are able to establish transparent processes for all their warehousing and

distribution operations.

SAP EWM Storage and Operations

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

• Eliminate annual physical counts

• Track every unit down to the

lowest level

• Efficiently place new items

• Manage inventory balances

• Synchronize the movement of

products

• Eliminate inefficient movements

and redundancies

• Improve facility utilization

• Improve the alignment of

activities to resources

Kit-to-Stock

Outbound

Processing

Inbound

ProcessingStorage &

Operations

Rearrangement

Replenishment

Value-Added Services

Storage Conditions

Physical Inventory

Cold Storage

ScrappingStaging & Consumption for Production

Receipt from Production

Production Integration

+ =

Posting Changes

“Lean Manufacturing”

Internal

Movements

Page 15: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

14

SAP EWM also supports the execution of outbound logistics processes. Wave management and shipment unit

planning help to maintain an optimized picking process for outbound deliveries, including options for packaging,

value-added services, and staging.

SAP EWM Outbound Processing

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

• Greater inventory accuracy and

availability

• Reduce picking, shipping, and

billing errors

• Higher customer-service levels

• Shorten order turnaround times

• Provide value-added services

quickly

• Take advantage of cross-dock

opportunities

• Simplify rough workload planning

and balancing monitoring

employee performance

Picking

Preparation

Channel Integration

Order Allocation

Route Determination

Outbound

Processing

Storage &

Operations

Inbound

Processing

Preparation & Picking Loading &

Goods Issue

Cross-Docking

Packing

Cartonization

Kit-to-Order

Palletization

PrintingPick-Point

Picking Execution

Paper-, RF-, & Voice-based picking

Picking &

Packing

Workcenter

Consolidation &

Staging

Loading &

Goods Issue

MFS/PLC

Wave Management

Stock removal Strategies

Picking bin determination

Pick path

Work planning optimization

Page 16: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

15

Transportation

(Pick-up) Request

Planning &

Dispatching

Dock/Door

Assignment

Transportation

Execution

Sub-Contracting

Requirement

Planning

(e-)Sourcing

Contract

Management

Operational

Procurement

Invoice

Processing

Inbound Delivery

Processing

Unloading & ROD

Internal Routing

Deconsolidation

Quality Inspection

Repacking

Putaway

Bin Determination

Catch-Weight

Cross-Docking (Planned & Opportunistic)Pick-up

Truck-Avis

Yard Operations

Unloading Report

Inbound POD

Unloading & Receipt

on Dock

Scrapping

Cartonization

Slotting

Rearrangement

Inventory Counts

Replenishment

Scrapping

Batch Management

Best-Before

Labor & Resource

Management

Labeling, Tagging, Kitting, Value-Added Services

Outbound Delivery

ProcessingTransportation

Requirements

Planning &

Dispatching

Dock/Door

Assignment

Transportation

Execution

Sub-Contracting

Truck-Avis

Yard Operations

Outbound POD

Loading Report

Carrier Booking

Sales Order

Processing

eCommerce

Integration

Customer

Service

Order Fulfillment

Billing & Cash

Collection

Claims & Returns

Financial Services

Route Determination

Wave Management

Pallet Building

RF Optimization

Picking Execution

Goods Issue

Packing/Labeling

Consolidation

Loading/Printing

Staging

Storage &

Operations

Inbound

ProcessingOutbound

ProcessingOutbound

Transportation

Sales &

ServicesPlanning &

Procurement

Events &

Promotions

Serialization

Master Data MonitoringAlerts & Exceptions Shipping CockpitRFID/RF

Consignment

Storage Conditions Repair

Operations

Field

Service

Import ExportWarehouse Automation & Material Flow Control

Supply Chain Visibility & Transparency/Track & Trace

Forecasting &

Replenishment

Store

Replenishment

Listing &

Exclusion

Inbound

Transportation

TU & Vehicle Appointment TU & Vehicle Appointment

SAP EWM Function Map

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Page 17: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

16

SAP ERP

SAP

EWM

SCM Server

SAP ERP

SAP EWM

Non-SAP SAP ERP

SAP EWM

standalone

Non-SAP Non-SAP

Ava

ilable

sin

ce 2

00

6R

ele

ase

d N

ov.

20

15

SAP EWM

SCM Server

SAP EWM

standalone

S/4HANAS/4HANAS/4HANAS/4HANA

SAP EWM on

SCM Server

SAP EWM

standalone

SAP EWM

Add-On

No conversion path to S/4HANA, de-

installation of EWM Add-On will be

mandatory.

See SAP Note 1606493

SAP EWM Deployment Options Best

Practices

Flexible Deployment Options

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

• SAP EWM can be used in any warehouse environment and also can be integrated with SAP TM, ERP, CRM, APO,

and latest SAP eCommerce and e-procurement innovations

• Since release 5.1, EWM can be deployed as an SAP ERP Add-On, or as part of an SAP SCM Server system

Page 18: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

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Existing

Mid-Term

Long-Term

Embedded

SAP EWM

LE-WM

LE-WM

Embedded

SAP EWMLE-WM

Phase-out of WM: 31st December 2020Source: SAP Note 2269324

LE-WM

(LES)

SAP EWM

On-Premise

De-CentralCentral

LE-WM

(LES)

SAP EWM

On-Premise

LE-WM

(LES)

SAP EWM

On-Premise

S/4HANA On-Premise

S/4HANA On-Premise

S/4HANA On-Premise

Embedded SAP EWM

• EWM part of the S/4HANA 1610 software

stack

• Planned RTC: October 10th 2016

• Scope of EWM 9.4 is used

• No functional enhancements planned with

1610 release

• Focus on simplification and reduction of

redundant objects and data

Quote from SAP Note 2269324:

The Warehouse Management (LE-

WM) is not strategic anymore within

SAP S/4HANA, on-premise edition.

The (already available) alternative

functionality is Extended Warehouse

Management (SAP EWM). „

Flexible Deployment Options, continued

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Page 19: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

18

Inbound Processing

• Inbound Delivery replicate

• Inbound Delivery replace

• Inbound Delivery replace response

• Inbound Delivery replace

• Inbound Delivery replicate

• Inbound Delivery split

• Inbound Delivery goods receipt

• ...

Outbound Processing

• Outbound Delivery replicate

• Outbound Delivery delete

• Outbound Delivery (w/o order) replicate

• Outbound Delivery quantity change

• Outbound Delivery quantity change reject

• Outbound Delivery split

• Outbound Delivery goods issue

• ...

Inventory Management

• Goods movement

• Posting Changes

• …

SAP ERP

SAP EWM

Seamless Integration

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

A selection of ERP Interfaces …

Page 20: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

19

EWM

ERP

Freight Order

Management

Site Logistics

Processing

Outbound

Processing

Inbound

Processing

Labor

Management

Warehouse

Logistics

SCM

SCM

Global ATP

Sales

(ATP)

Logistics

Execution

Human

Resources

Quality

Management

Materials

Management

APO

Shipment,

freight doc.

Check

ATP

Check ATP,

create inv.

Outbound/

Inbound

Delivery

Ext. wage

component

QI, Q-Result

Goods movements, stock transfer

requ.

Legacy

Transport Management

Stock (TU) in Yard, Yard Layout

TU + Vehicle + Door

Appointment

TU + Delivery

HU Assignment.

ASN

Outbound

Delivery Information

Compliance Check/

Customs check

Posting change for customs blocked stock

Legacy

Yard Management

Legacy

Loading Optimization

Legacy

Logistics Execution

SCM

SAP TM

SAP GTS

Inbound

Delivery Information

SAP BW

Legacy Warehouse Control Unit Legacy Physical

InventoryLegacy Graphical

WH Layout/Dashboard

Seamless Integration, continued

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Page 21: Westernacher Consulting and Services · Westernacher Consulting and Services ... TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT 11 SAP EWM was originally developed

© Westernacher │ www.westernacher-consulting.com

STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT

20

Cost: Interfaces are expensive to design, develop, and maintain if they are not available as standard

Time: Implementing multiple interfaced systems will take longer than implementing one single integrated system

Risk: Integration is one of the common reasons for project sub-optimal performance, failure, or overrun

Solution Value =Benefits Expected

Cost X Risk X Time

Data Mapping and Field Discrepancy Resolution 7 Days

Process Mapping and Discrepancy Resolution 6 Days

Interface Development: 5 Days

Testing and Documentation 2 Days

Total 20 Days

Sample Calculation and Non-Functional complications

Cost Consideration

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

SAP EWM provides best-of-breed functionality and seamlessly integrates with other SAP Business Suite

components.

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Cost Consideration, continued

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Security

• Dual maintenance users and authorizations

• Implications for compliance and audit, e.g., potential segregation of duties issues

Integration strategy/technology

• Many integration tools are licensed by transactional volume

Upgrades

• Need to synchronize upgrades between EWM and legacy ERP

• Regression tests – costing up to 30% of the original cost of the interface

Potential for reduced business agility

• Changes in system are complex (changes are required in 2 systems + various interfaces)

• Multiple skills are required for a single change

• High risk that system becomes “static” because it is difficult to adapt interfaces

• Users cope with different user interfaces

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An app development starts with initial checks,

ideally introduced by a design-thinking exercise

• Check vehicle

• Check cargo

• Navigate to customer

• Unload from truck

• Lots of variants

• Customer present? Neighbor?

• Alcohol and age

• Damaged goods

In our example we started

with manual drawings …

Fiori Front-End Server (Gateway)

Back-End Server (incl. Gateway)

App-specific UI Add-ons

Fiori Infrastructure

App-specific Add-ons

SAP

Mobile Device

OData via HTTPS(s)

OData via trusted RFC

Ease of Use

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Introduced in 2013 as a collection of apps, SAP Fiori has evolved into the new user experience (UX) for SAP

software, and now includes design guidelines and development resources, adding great flexibility and user

experience to SAP EWM

This modern UX reflects a broader paradigm shift, moving from a focus on features and functions to users and

their experience

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The Design …The Idea … The Result …

Ease of Use – From Idea to Result

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Using a design mockup tool – to create “clickable” results

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• Click dummy is very easy to understand

• It tells functional people what to expect and developers what to do

• But: Avoid highly polished screens during first design steps

• Keep focus on functionality and interactions

• Know about technical limitations and guidelines

• Use a tool that functional people understand

• Consult developers during design

Ease of Use – Lessons Learned

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

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OperationsUpgrade Projects/

User acceptance

Continuous

Improvement

Hardware/Software

Ongoing costImplementation

Hardware &

Software

Business

Improvements

Technical

Improvements

Rollouts

Application

Upgrade

System Upgrade

End-user

Operations

Productivity Loss

Application

Operations

System

Operations

Application

Software

System Software

Technical

Infrastructure

Training

Testing

Project

Management

Business Setup

Technical Setup

Organizational

Change

Process Design

Application

Software

System

Software

Technical

Infrastructure

L1

L2

“If TCO is what you measure, use the pencil not the PC, because the pencil has a lower TCO”

– Forrester Research

Implementation and Best Practices

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

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Product functionality

• Core operations and Ease of use

• Interfaces and Integration

• Flexibility, Scalability, and

Extensibility

Solution Value =Benefits Expected

Cost X Risk X Time

Customers expect Solutions and not Products!

Customer Expectations and Value Drivers

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

• Companies are becoming less accepting of expensive, never-ending projects

• Projects will start with smaller, more targeted implementations

• Companies will reduce support and maintenance costs

• Packaged, or productized, services offerings will gain traction

• SaaS and cloud computing has a strong impact on logistic software

• Enterprise mobility features are becoming must-have tools

• Collaboration and training will gain momentum

Implementation skills

• Training, Documentation, and

Resources

• Previous installation experience

• Internal resources

Solution Implementation time

• Project implementation and Rollout

• Cost of implementation (TCI)

• Onboarding

Implementation risk

• Vendor-related criteria

• References

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Optimized

Movements

Efficient Space

Utilization

Increased

Logistics Speed

Transaction

CostsTransparency

Example: Contract Logistics

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

Multi-client warehouse processing

• Single/multiple warehouses for different clients

• Multiple industries in one single warehouse

• Client-specific object IDs

• Client-specific putaway and retrieval strategies

What keeps the LSP awake?

Multi-Tenant Operations

• Multi-client Warehouse

processing

• Onboarding and customer

acquisition

• System Integration

• Execution flexibility

Billing for Logistic Services

• Bill clients for provided logistics

services

• Measure profitability and

performance

Onboarding and customer acquisition

• Onboard and operate client-specific warehouse infrastructure and services

• Back-end System integration and message choreography

• Client-specific mapping requirements

• Platform and Template Management

• Reusability of customer configuration

• Support different Contract Terms

• Visibility and optimization across clients

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LSP Customer Data Staging and Aggregation Integration

Target Environment

XML

Applications

Databases

Flat Files/Excel

Extract & Profile

Staging Area

SAP EWM

Cleanse

Parsing

Material/Product Parsing

Mapping

MessageChoreography

Reconciliation

Performance Analysis

Dashboards and Business Reporting

Transparency, Communication, and

Governance

Files

IDocs/Services

Pre-Built load routines

for SAP Objects

Validate & Load

Transform

ValidationRules

StaticValues

TransformData into

SAP structure

Interfaces and Integration

Example: Contract Logistics – Customer Onboarding

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

Master Data

• Material Master

• Business Partner

• Conditions

• …

Transactional Data

• Sales Orders

• Outbound Deliveries

• Purchase Orders

• Shipping Notifications

• Goods Movements

• Customer Returns

• Inventory Changes

• …

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Services Platform

Inb

ou

nd

Pro

ce

ssin

g

Outb

ou

nd

Pro

ce

ssin

g

Sto

rag

e &

Ope

ratio

ns

Sa

les &

Pro

cu

rem

en

t

Warehouse Template

Storage Technology

Material Handling & Flow

Processes & Strategies

Printing & Labeling

On

bo

ard

ing

To

ols

Onboarding

Products

Customers

Suppliers

Rules

Interfaces

Messages

Choreography

Mapping

Integration

Warehouse Platform

Multi-Client Capabilities

OutputsMonitoring & Reporting

Warehouse Billing

Monitoring/Reporting

RF Enhancements

Variation 3

Clie

nts

Variation 2

Variation 1

Ad

d-O

ns Location 1

Location 2

Location n

Customer-Specific Enhancements and Add-Ons

Pre

-Co

nfi

gu

red

In

du

str

y T

em

pla

teA

dd

-on

s

SAP RDS – Rapid Deployment Solution for EWM

SAP Baseline Configuration for EWM

Warehouse

PlatformOnboarding

Platform

System Interface

Setup

Services

Platform

Flexibility, Scalability,

and Extensibility

Example: Contract Logistics – Industry Best Practices

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

One best practice-based

repository for all warehouses

and services, ensures fast and

efficient rollout to the LSP’s

warehouses as well as rapid

onboarding and integration of

new LSP customers

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Customer quotes

Restocking

Inbound

Processing

Outbound

Processing

Storage &

Operations

Cross-Processes & Functions

Outbound

Processing

Vendor

Distribution Center

Inbound

Processing

Store BInbound

Processing

Store A

Purchasing Sales

ASNPOHomogenous or

mixed pallets

Delivery

Customer

Order

eCommerce

3PL/LSPOrder

STO

STO

Store Distribution

Dire

ct D

eliv

ery

Contract

Logistics

Internal

Replenishment

Cross-Docking

Returns

Vendor

Returns

Interfaces and Integration

Example: Retail/eCommerce – A Typical Scenario …

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

10x Quicker inventory turnover period

(from more than 20 days to as little

as 2 days)

38% Faster document printing time for

hand-to-hand goods (from 40

minutes to 20 minutes per wave

count)

33% Faster quality control time of

warehoused products for a single

store (from 30 minutes to 20 minutes)

33% Faster loading time per truck for

dispatching (from 75 minutes per

truck to 50 minutes per truck)

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Outbound

Processing

Integration

• Integration to Planning

• Integration to eCommerce

• Integration to SAP TM

Storage &

Operations

Warehouse Planning

• Labor Management

• Replenishment

• Kit-to-order

Inbound

ProcessingGoods Receipt

• Putaway bin determination

• Print putaway Documents

• Putaway Execution

• Scanning

• Goods receipt

• EDI Confirmation

Wave

Management

• Work planning

optimization

• Pick path

• Picking bin

determination

• Picking

Strategies

• Printing

Container

LoadingPacking &

Pallet Building

• Export compliance checking

• Transportation unit handling

• Yard management

• RF Loading

• Printing

• Cartonization

• Kit-to-order

• Packing

Execution

• Palletization

• Printing

Picking

• Labor planning

optimization

• Variety of Pick

strategies

• Paper-, RF-, and

voice-based picking

• Picking

Execution

• MFS Integration

Material Flow

System• Material retrieval via direct integration to

PLC

• Monitoring of MFS via central

warehouse monitor

Cross-

Docking

Example: Retail/eCommerce – Sample Process Flow

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

Flexibility, Scalability, and Extensibility

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Registration OrderTime

WindowConfirmation

Customer

Master DataSales Order

Customer

Address/Zone

Zone

Determination

Timeslot

Table

Order-Based

Requirement (OTR)

Freight

Unit

Incremental

Planning

Outbound

Delivery

Outbound

Delivery Notif.

Freight

Order

Track & Trace

Transportation

Unit (TU)

Shop

ERP

TM

EM

EWM

Replicated from SAP TM to Web Shop

Outbound

Delivery Order

Picking

Packing

Staging

LoadingWave Management

Example: Retail/eCommerce – Implementation Example

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

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SAP EWM

Back End

Fiori App

on mobile

device

User

Experience

Get next Orders

Start Picking App

Show Order Overview

Accept Order to execute

Scan Pick-HU

Show next Pick

Confirm Pick

Show Last Pick

Confirm Pick

Show Loading Bin/Door

Enter Loading Bin/Door

Show List of Orders

Close Picking App

Loop

Create Pick HU

Confirm Order

Confirm Loading

Return Order List for Users

Get next Order

Log on User

Return User Environment

Return Order InformationAs long as

we have

Picking

Orders

Example: Retail/eCommerce – Usability Enhancement

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

Fiori Logon and

Launchpad

Order Overview and

Pick-HU Creation

Pick Execution

with WT List

Pick-HU

Loading

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Fiori Logon and

Launchpad

Order Overview and

Pick-HU Creation

Pick Execution

with WT List

Pick-HU

Loading

Example: Retail/eCommerce – Bespoke Fiori Picking App

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best

PracticesDemo Wrap-Up

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• Order taking and customer check-out

• Hybris Server asynchronously (B2C) connected to SAP ERP

• Data replication via Datahub and IDoc order integration

• Order creation in SAP ERP and status replication to Hybris

• Automatic Delivery creation and replication to SAP EWM

• Picking execution in SAP EWM

Lessons Learned

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

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SAP Generic Information about EWM

SAP Extended Warehouse Management (EWM) 9.4 on the SAP Help Portal

SAP Solution Explorer (SAP EWM)

Westernacher Tutorial Videos

Management Overview

Outbound Processing

Bob Caswell, “Build Your Own SAP Fiori App in the Cloud – 2016 Edition” (openSAP, February 2016)

https://open.sap.com/courses/fiux2

SAP Notes

Complexity Scope Matrix for SAP S/4 HANA – On-premise

Where to Find More Information

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

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1. SAP EWM functionality supports flexible modeling of warehouses and processes

Stock and process transparency

Optimization in process execution

2. SAP EWM seamlessly integrates with the SAP Business Suite and other solutions

Integration with technical components (RFID/MFS)

SAP ERP, eCommerce environment, and external software components

3. SAP EWM offers best-of-breed warehouse functionality

For all kind of warehouses – from small to large, from simple to complex

For all industries, flexible and scalable

7 Key Points to Take Home

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

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4. SAP EWM can help you to improve your warehouse productivity and efficiency

Labor management

Integrated MFS for automated storage

Warehouse monitor and warehouse analytics

5. SAP EWM increases transparency and inventory accuracy

6. SAP EWM built-in functionality optimizes space, resource, and asset utilization

7. SAP EWM can help you to leverage cost savings in logistic core processes

Efficiency improvements and fast ROI

Flexible deployment and implementation options

7 Key Points to Take Home, continued

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

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Your Turn!

Business Imperatives and Lessons Learned

SAP EWM Process ModelingDeployment Options and

IntegrationImplementation and Best Practices Demo Wrap-Up

Westernacher Consulting ME FZ-LLC

Building 12, 1st Floor, Dubai Internet City,

Dubai, United Arab Emirates

Phone: +971 4 313 2980

Web: www.westernacher-consulting.com

E-Mail: [email protected]

License no. 93894

Neil Wightman

Head of Supply Chain, Middle East

Phone: +971 4 313 2980

Mobile: +44 (0) 755432332

[email protected]

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