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SAP Ex t ended Warehouse Management
Frédéric MAINAUD
Solution ExpertSAP FRANCEMardi 2 juin 2009
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History and Release
Functionalities
ERP WM versus SCM EWM 7.0 – Choice criteria
Questions ?
Agenda
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1995 19981993 1997
Hist ory o f SAP’s Warehouse Management
2000 2002
1993 - R/3 Release 2.0/2.1
Storage Units
Parallel Processing
1995 - R/3 Release 3.0 / 3.1 Integration
• Production Planning
• Quality Management
• Logistics Information System
1997 - R/3 Release 4.0
Rough Workload Estimate
Picking Waves / Two Step
Warehouse Monitor
Integration to HR1998 - R/3 Release 4.5
WMS Stand Alone
Prototype of RF
2000 - R/3 Release 4.6
Native RF / SAP Console
Handling Unit Management
Packing Station
2002 - R/3 Enterprise Release (Ext 1.1)
Task & Resource Management (TRM)
2004 - R/3 Enterprise Release (Ext 2.0) ERP WM
Yard Management
Cross-docking
Value Added Services
2003 2004
2005 – SCM 5.0 SPM Extended Warehouse
Management
2005 2007
2008 – SCM EWM 7.0Production SupplyGraphical WarehouseLayout ...
2007 – SCM EWM 5.1Labor managementRFID Enablement ...
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Sales (CRM)
Planning (SPP) Sourcing (ATP) Warehousing (EWM) Coordination (ERP)
The Result:
State of the Art Service PartsManagement Solution Across
Multiple Industries
Serv ic e Par t s A l l ianc e for Serv ic e Par t s
Managem ent (2002)
Benefits:
Lower development costs
International capabilities Natural (planned) technology
upgrade path
Increase 3PL market opportunities (CatLogistics)
Shared Risks between Cat Logistics, Ford, andSAP
Concept: ~ 80% common processes/ technology
Leverage Ford and Cat Logistics volumes
Commercialize system software
Exit development Become implementers and integrators (Cat
Logistics)
Intellectual Property
Know-how
Capability
Scalability
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Dec isi on SCDP CAT/Ford t o develop new WMS
© SAP 2007 / SCM Review Project
Reasons for developing a new SCM-based WMS rather than delivering a highlymodified LES:
Requirements for data volume, performance and process flexibility made anew architecture necessary
Following the Decentralized SAP Warehouse concept
Extend the basic concept of Transfer Orders to enable process flexibility
Extend Inventory concept to enable data flexibility and accuracy
High risk to change architecture in a mature application with thousands oflive customers (contract: 80% to be retrofitted into standard!)
Mind Shift from Managing Stocks to Controlling Processes
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SAP WM Solu t ion Offe r ings
RawMaterials
FinishedGoods
ComplexRequirementsSimpleRequirements
E R P W M
C e n t r a l i z e d E
R P W M
D e c e n t r a
l i z e d
E R P W M
w i t h
E x t e n s i o n s ( T R M , Y M ,
V A S … )
D e c e n t r a
l i z e d
S C
M E W M D e
c e n t r a l i z e d
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Ent erpr ise, SCM EWM and Net w ork Foc us
SAP Warehouse Management in SAP ERP
(centralized or decentralized WM)SCM Extended Warehouse Management
EnterpriseFocus Network Focus
Centralized Scenario
SAPSAP
ERPERP
LogisticsFI/CO
WM
Decentralized ERP Scenario
ERPERP
SAPSAP
LES WMLES WM
OtherERP ERPERP
SCM EWMAdd-On
Extended
WM
Extended
WMExtendedWMSAP SCM
ERPERP
SAPSAP
LES WMLES WM
WM decentralized
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Overv iew o f Processes w i t h dec ent ra l i za t ion
BAPI
Replication
In / Outbound
Delivery
BAPI
Confirmation
BAPI
Replication
BAPI
Confirmation
Goods Issue
OutboundDelivery
Sales Order
Invoice
Goods Receipt
Invoice
Posting ofgoods movement
Purchase Order
Inbound Delivery
SAP EWMERP ERP
Note: Master Data replication uses CIF
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1. History and Release2. Functionalities
3. ERP WM versus SCM EWM 2007– Choice criteria
4. Questions ?
© SAP 2007 / Page 9
Agenda
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Process Exceptions/Manage Work in Process
Receive ASN DataTransportUnit Arrival
ManageTransport Unit
UnloadTransport Unit
Deconsolidation
(InternalRouting)
Putaway
Slotting
Putaway BinDetermination
EWM Inbound Proc ess Overv iew
GoodsReceipt
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WarehouseOrders
Order/Deployment
RouteDetermination
WaveManagement
PickingBinDetermination
PickingWorkAssignment
Packing Shipping Staging
LoadingandGoods Issue
Process Exceptions/Manage Work in Process
EWM Out bound Proc ess
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Overview : EWM Goods I ssue Proc ess
Small Parts Storage
Pallet storage
Packing Work Center
Door 2
Door 1
Door 3
PHU1
PHU2
PHU1
PHU2
GI-Zone &Packing (2)
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Doc u m ent s in t h e Out b ound Proc e ss
WHR1WHR1WHR1WHR1WHR 1
A list of Warehouse Requests is created
Wave 1
These Warehouse Requests are groupedinto a Wave
WHR1WHR1WHR1WHR1Task 1
WHR1WHR1WHR1WHR1Task n
… Based on the wave Warehouse Taskswill be created
Warehouse OrderCreation (Bundling)
All Tasks will pass the “Black Box”warehouse order creation
WO 1
WHR1WHR1WHR1WHR1Task
WO 2
WHR1WHR1WHR1WHR1Task
WO n
WHR1WHR1WHR1WHR1Task
Warehouse Orders are created according to the
Creation Rules. They can contain items frommultiple deliveries
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Warehouse Order Crea t ion – Sc hemat i c Flow
WHR 2
WHR 1
1
WT
WT
WT WT
WT
WTWT
WT
WT
WT
2
AA 02WT1
WT3
WT2
WT4
4
Try WOCR3
AA 02WT1
WT2
6
Try WOCR2
Created WarehouseOrder 4711
WT3
WT4
5
Created WarehouseOrder 4712
WT1
WT2
7
AA 01
a) WOCR1
b) WOCR2
c) WOCR3
AA 02
a) WOCR3
b) WOCR2
AA 02
a) WOCR1
WO Creation Rules (Customizing):
WT WT
WT WT WT WT
WT
AA 01
AA 02
AA 03
WT
WT
3
Grouping by Activity Area:
EWM I t l P
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EWM Int ernal Proc esses
Process Exceptions/Manage Work In Process
Kitting RearrangementReplenishment
Addi t i l W h i P
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Process Exceptions/Manage Work In Process
Yard Management Quality Inspection
Engine
Addi t ional Warehousing Proc esses
Management andTracking of Vehiclesand TransportationUnits from yard
check-in, throughoutthe yard movementstasks, and yard check-out
Service oriented QualityInspection Engine tosupport the qualityprocesses for warehouse
management
EH&S data and checksused in ProductStorage, ShippingDocuments andTransportation Routing
Environmental
Health & Safety
Foreign Trade/Bonded
Warehouse
Customs management
SPL Screening
Re-exports
Duty unpaid returns
L b M t
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Labor Managem ent
For effective management of the labor supply chain, it is necessary to:
Get the right person to the right place at the right time
Track people throughout the day and measure performance on individual tasks
Provide alerts when performance falls below expectations Calculate costs and incentives for employees
Simulate impacts to labor as a result of changes to the process flow or inventory
Highlight the cost and efficiency of individual employees, facilities, teams, and theenterprise
Labor management modules are used to better manage thetime and productivity of warehouse workers. They consist ofthe ability to plan, measure, view, and simulate labor activities.
W h C k i t
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Warehouse Coc k pi t
■ Intended for Supervisor andWarehouse Manager
■ Monitors team performance
■ Monitors the performance ofareas or the whole warehouse
■ At-a-glance view of several key
figures enables you to react tocritical situations quickly
A d
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1. History and Release
2. Functionalities
3. ERP WM versus SCM EWM 7.0 – Choice criteria
4. Questions ?
Agenda
SAP WMS sol tions
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ERP WM
Part of SAP ERP all releases
Standard ERP WM product
TRM works with ERP WM
4800 customers are live with ERP WM
We continue to support ERP WM
EWM 7.0
Separate component SCM EWM or Add-on ERP
Does not replace ERP WM
New WMS product.
Developed for large and complexwarehouses/distribution centers with high volume andvelocity
Can be used in combination with ERP WM in thesame landscape
14 sites are live for 11 customers (april 2009 status)
+ 60 projects in progress with more than 20 are due togo live before Dec 2009
SAP WMS solutionsERP WM vs. SCM EWM 7.0– Choice criteria
SAP WMS solutions
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Key Question:
When do I choose ERP-WM and when do I choose SCM EWM
Guidelines:
Characteristic / Requirement SCM
EWM
ERP
WM
ERP
DWM
Service Parts Industry
Highly Complex Warehouse Requirements – Picking, Packing,
Deconsolidation, Task Management, YM, VAS, Kitting, Slotting, ContractPackaging, Extensive Cross-Docking, RF, Automation
Basic to Complex Warehouse Requirements – Picking, Packing, TaskManagement, YM, Light VAS, Light Cross-Docking, RF, Automation
High Volume
DWM : Decentralized Warehouse Management
SAP WMS solutionsLES WM vs. EWM – Choice criteria
SAP WMS solutions
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Characteristic / Requirement SCMEWM
ERPWM
ERPDWM
Stock Location
Basic Pick / Placement Strategies
Wave Picking / Wave Management
Replenishment
Resource Management
Yard Management
Value Added Services
Cross Docking
Physical Inventory
SAP WMS solutionsLES WM vs. EWM – Choice criteria
SAP WMS solutions
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Characteristic / Requirement SCMEWM
ERPWM
ERPDWM
RF Screen Enhancement
Deconsolidation During Putaway
Stock IDs
Slotting / Rearrangement
Kitting
Quality Inspection
Customer Returns
Discrepancy Processing for Stock Transport Orders
Delivery Split for Outbound Orders
EH&S Integration
SAP WMS solutionsLES WM vs. EWM – Choice criteria
SAP WMS solutions
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Characteristic / Requirement SCMEWM
ERPWM
ERPDWM
Serial Numbers
Labor Management
Delivered BI Content
SAP WMS solutionsWM vs EWM – Selections criterias
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Quest ions ?
SAP Extended Warehouse Management
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Thank you!