White Paper

Task and Resource Management

Executive Summary 2
Optimizing Your Warehouse Operations with SAP R/3 TRM
What is Task
Resource Management? 2

TRM’s Unique Capabilities 3

TRM’s Bottom Line Value 5 ABOUT THE AUTHOR

Is TRM Right For Catalyst International has long been recognized as an industry leader in
Your Warehouse? 6 warehouse management and SAP R/3 implementation consulting with noted
The Future of TRM 7 expertise in SAP’s Logistics Execution System (LES), Warehouse Management
(WM), and now Task and Resource Management (TRM).
Conclusion 8

As one of the few SAP-certified LES implementation partners worldwide, Catalyst

was a key player in SAP’s internal, pre-release testing stage for TRM in Walldorf,
Germany and is currently involved in the rollout of TRM with an R/3 Enterprise
ramp-up customer. Catalyst also played an integral role with pre-release testing
of SAP’s native radio frequency data collection product SAPConsole and was the
first to implement it with a customer using R/3 release 4.6.

Our in-depth expertise of SAP LES products and functionality – along with our
close relationship with SAP – provide us with an intimate knowledge of the
development vector SAP is applying to the LES product suite and allows us to
advise customers on strategic operational decisions, provide them with detailed
information on key integration points, and quickly assist them in identifying
fit/gaps with current and future release levels.

© 2003 Catalyst International, Inc.

 EXECUTIVE SUMMARY

TRM strengthens the LES/WM This white paper is designed to give warehouse operations managers and IT
solution via optimal task managers a useful framework for understanding SAP’s Task and Resource
execution and resource Management (TRM) application. It presents an overview of TRM and its unique
deployment. capabilities and benefits, provides key insight into which organizations will reap
the highest value from TRM and outlines SAP’s future release plans.
The paper includes the following information:
■ What Is Task and Resource Management?
SAP’s latest step toward logistics optimization, TRM strengthens the
LES/WM solution via optimal task execution and resource deployment.

■ TRM’s Unique Capabilities.

TRM offers unique features for optimized materials movement, a transparent
view of warehouse processes and value added services support.

■ TRM’s Value.
Bottom line, TRM will optimize your warehouse and distribution operations,
improve your customer and partner relations and provide cost savings.

■ Is TRM Right For Your Warehouse?

Warehouse operations with a high level of distribution activity, volume,
operational complexity and value added services are the best fit for TRM.

■ The Future of TRM.

By first quarter 2004, SAP expects to release Yard Management, Cross Docking
and Enhanced Value Added Services to further strengthen the application.

WHAT IS TASK AND RESOURCE MANAGEMENT?

SAP’s latest step toward logistics optimization is Task and Resource Management
(TRM), an optional component of the SAP Logistics Execution System (LES)
module, and more specifically the Warehouse Management (WM) module.

TRM strengthens and completes the LES/WM solution by optimizing material

flows via task execution and resource deployment. TRM breaks down material
movements to a task and resource level and optimizes the sequence in which
they are executed, ensuring that the right task is completed by the best resource
at the most optimal time.

TRM helps you to manage your warehouse processes more efficiently because it
achieves an unparalleled degree of process visibility within the system by tracking
any activity performed on the warehouse floor. TRM uses a systemic model of the
warehouse’s physical layout to deploy resources according to the actual workload,
the resource’s qualifications and the current geographic positions of the resources.
The efficient deployment of resources contributes to a considerable reduction of
costs in material flow processing.

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TRM offers unique features for
optimized materials movement,
a transparent view of
warehouse processes and value
added services support.
With TRM’s support for value
added services, you can easily
label goods or accommodate
customers’ special packaging
requests.
TRM Features
> Task Execution
> Prioritization
> Interleaving
> Value Added Services
> Tracking and Monitoring
SAP WM and TRM are closely integrated and work hand-in-hand to manage and maintain the
workload in warehouses. WM provides the movement, operation demands, high-level scheduling
and planning. TRM distributes the work among the various resources.
TRM’S UNIQUE CAPABILITIES
TRM is unique in that it uses task selection, prioritization, interleaving and other
capabilities to optimize materials movement while offering the user a transparent
view of warehouse processes. Features and highlights include:
■ Warehouse Site Map.
A detailed 3D-model of the entire warehouse including storage bins, pick-up
and drop-off points (P&D), work centers, working areas, zones, and all other
geographical points that constitute the warehouse allows TRM to select tasks
for execution with consideration for the time required to execute the task,
given a resource’s present position and the destination of the task.
■ Task Selection, Assignment and Execution.
TRM selects tasks for assignment to the optimum resource at the optimum
time. Optimization is achieved through the use of priority rules that consider
factors such as the parent document’s priority (e.g., rush order), the base
priority for a type of task assigned in TRM (e.g., pick for outbound delivery over
replenishment), and the TRM route priority, which increases the priority of a
particular task based on the resource’s physical location in the warehouse and
its proximity to completed tasks. TRM executes orders by using an algorithm
that takes several factors into consideration including the following:
> Physical structure of warehouse
> Load
> Availability of resources
> Weighting and Priority
> Location / length of travel
■ Task Bundling.
TRM also supports task bundling when a group of tasks must be executed by
one resource at a given time.
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 ■ Prioritization.
TRM uses a priority model to select tasks for assignment to resources. The model
uses objects such as the task priority inherited from the parent document, the
physical location of the resource, the route that a task would require, the attributes
of the resource equipment element, the nature of the task’s load to be moved and
other considerations to select a task for assignment to an available resource. When
the resource completes that assigned task, TRM again calculates which task has
the highest priority for assignment to the resource and makes the assignment. For
each task to be performed, TRM considers the costs of an available resource
compared to the task priority. Overqualified resources are only assigned in case of
very high priority given to task completion and a suitable resource is not available.

■ Interleaving.
TRM assigns tasks in close proximity to one another, providing a continuous
workflow to the resource and minimizing or eliminating deadheading. Upon
task completion, the system analyzes the resource’s current position to
provide it with tasks whose starting point is close to that current position
making deployment of resources as efficiently as possible.

■ Value Added Services Support.

TRM provides modeling for value added services such as special labeling, pricing,
and packaging such that the operation can be built into the routing of the material
movement. For example, if there is a need for a special packaging operation or
labeling, then the user will be directed to move the material picked for a particular
delivery to the packaging work center, and after the service is completed, an additional
work task will be generated to move the material to the dock or staging area.

■ TRM Monitor.
TRM’s monitor makes all the necessary steps within a business process
transparent by keeping warehouse supervisors up to date about the current
status in the warehouse, providing continuous information about workload
bottlenecks, completed tasks, and available resources. Alert warnings for due
date violations give the supervisor the opportunity to initiate the right response.
They can influence task priority and assign tasks to resources via the monitor.

■ Comprehensive Real-time Controls.

TRM analyzes each event in the warehouse and can react immediately to
unforeseen situations (e.g., immediately reassigning a replenishment task to a
resource so that it is executed next).

Bottom line, TRM will optimize

your supply chain management,
improve your customer and
partner relations and provide cost
savings.

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TRM’S BOTTOM LINE VALUE
TRM’s ability to optimize resource deployment, material flow, routing and process
visibility enables an accelerated supply chain, which in turn leads to improved
customer service, better partner relations and overall cost savings.

Benefits include:

■ Increased Resource Efficiency and Route Optimization.

Resources are deployed based on capacity, qualification, and current position
on the warehouse floor, ensuring optimum routing.

■ Optimized Material Flow Processing.

TRM organizes the flow of incoming and outgoing goods and internal goods
movements in an optimum way.

■ Higher Visibility/Transparency.
TRM enables you to always see which tasks and resources are available for
execution, assigned for execution, accepted for execution, and completed.

■ Accelerated Supply Chain Management.

Better use of resources, improved routing and material flow accelerates and
optimizes the supply chain.

■ Improved Customer Service and Partner Relations.

An optimized supply chain will ensure better customer service and
supplier/partner relations.

■ Cost Savings.
Optimized processes and decreased labor requirements reduce operations costs.

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Warehouse operations with a
high level of distribution activity,
volume, operational complexity
and value added services are
the best fit for TRM.
IS TRM RIGHT FOR YOUR WAREHOUSE?
TRM is tailored to be of most benefit to the warehouse with high activity levels,
high volume and complex operations. These and other factors should be
considered when determining whether TRM is a fit for your facility.
■ High Level of Distribution Activity & Materials Movement.
TRM was designed to benefit warehouse operations that are more distribution
oriented as opposed to material storage oriented (e.g., a production supply
facility). If efficient management, movement and distribution of materials are
core competencies and critical success factors for your organization, TRM is
a good fit and will significantly enhance your labor efficiencies and minimize
your labor costs.
■ High Level of Volume.
TRM offers the most value to those facilities with a high level of material flow
velocity (typically characterized by the number of transfer orders), high
transaction volume, a high number of warehouse associates per shift, and
multiple types of material handling equipment. The higher the number, the
better the fit. For example, if you have 50 trailer load outbounds a day, you’ll
reap a much higher benefit from the system than if you only have five.
■ Operational Complexity.
TRM offers strong functionality for complex material flows, such as the use of
special equipment that cannot physically make certain material moves efficiently,
but instead uses pick and drop locations. The system’s decomposition of TOs into
tasks offers an advantage for these complex scenarios.
■ Level of Value Added Services.
TRM also offers strong functionality for value added services such as special
labeling, pricing, packaging and hazardous materials notes on shipping
documents. The higher the level of services you offer, the better the fit with TRM.
■ Current User of SAP WM and Decentralization.
Current users of SAP WM will find an independent systems configuration
audit and warehouse operational review beneficial prior to undertaking the
implementation of TRM, but it is highly recommended that users considering
TRM as part of the initial WM roll-out seek experienced consulting support
because of TRM’s complexity and
abstraction. Another factor that
should be weighed when
considering the implementation of
TRM is the organization’s ability to
decentralize the WM/TRM system.
The decentralized WM architecture
is strongly recommended for TRM
users because of the heavy
processor load that TRM can pose
for your core system. Implementing
decentralized WM should be
considered a prerequisite to
implementing TRM.
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By first quarter 2004, SAP THE FUTURE OF TRM
expects to release Yard
Management, Cross Docking
For companies with complex logistical requirements that include yard
and Enhanced Value Added
management, cross docking, and extensive value added services – and require
Services to further strengthen
software to support those functions, it is important to note that SAP’s future
the application.
release of the R3 Enterprise product will include advanced functionality for these
three areas. The second Enterprise release is currently in testing and is
scheduled to be available first quarter 2004.

■ Yard Management (YM).

Where traditional warehouse management systems have focused on
management of the physical warehouse, yard management is a starting point
for extending warehouse management and control outside of the traditional and
beyond the four walls of the warehouse. Viewed as a “handshake function” to
hand over goods from and to transportation, YM will optimize door and dock
utilization and reduce immediate storage needs. Materials that are in trailers
managed by the yard management system will be visible to the SAP system
even though the materials have not been received. This will allow warehouse
managers to bring the right trailers to the receiving dock at the right time.

■ Cross Docking.
A technique of processing goods in a warehouse or distribution center where
inbound materials are moved from goods receipt directly to goods issue
without being stored. Cross docking will reduce double handling of materials
and optimize the flow of materials from inbound receipts to outbound demand
while reducing transport paths in the warehouse.

■ Enhanced Value Added Services (VAS).

Advanced functionality will be provided to create, monitor and invoice for
enhanced VAS activities in the warehouse such as clothing hanger insertion,
price marking, tagging, and customer-specific packaging and labeling. This
enhancement will be integrated with both TRM and WM.

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 CONCLUSION
SAP’s Task and Resource Management module delivers value by optimizing labor
utilization and providing warehouse process monitoring and controlling
functionality. Bottom line, TRM enables warehouse activities to be executed better,
faster and cheaper than possible without a warehouse optimization engine.

When determining whether TRM is the right fit for your operations, it is important
to consider that TRM best benefits warehouse operations with high levels of
distribution activity, volume and operational complexity. Also important in the
decision-making process is SAP’s future release plans for Yard Management,
Cross Docking and Enhanced VAS. Companies who decide to implement TRM
will gain the benefit of an accelerated supply chain, improved customer service,
better partner relations and overall cost savings.

For more information on how TRM can optimize your warehouse operations,
contact Catalyst International at www.catalystwms.com.

2003 Catalyst International. All rights reserved.

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info@catalystwms.com
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