SCM Extended Warehouse

Management 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 for

companies 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

R/3 R/3 R/3 R/3 R/3 R/3 R/3 SCM SCM SCM SCM
Release Release Release Release Release Release Release EWM EWM EWM EWM
2.0/2.1 3.0/3.1 4.0 4.5 4.6 4.7 EE1 4.7 EE2 5.0 5.1 7.0 7.1

•Slotting •Labor Mgmt •Graphical

• Rough Workload •Integration
Integration •Rearrange- •MFS WH Layout
• Storage Estimate Decentralized • Native RF/ ERP EWM to Transp.
Task and ment •WH Cockpit •Production
Units • PP • Picking Waves/ WM SAP Console • XD processes
Resource •Warehouse •RFID Integr. Supply
*Reverse
• Parallel • QM Two Step picking • Prototype • HUM • YM Orders •Batch Mgmt •Merchandise
• Warehouse
Management Logistics
Processing • LIS of RF • Packing Stn • VAS •Warehouse •Serial Nr Distrib. XD
enhancements
Monitor Monitor •Catch Weight •Task
• Integration to HR •Internal •ESA Interleaving
2005
Routing

1993 1995 1997 1998 2000 2002 2003 2006 2008 2009 2010

Extending the Scope of our Warehousing solutions

Enterprise, Service Parts Execution and Network Focus

Integrated Scenario Decentralized ERP Scenario

ERP
Other
ERP ERP
WM ERP
Logistics
FI/CO

SAP SAP
SCM EWM
SAP Add-On
ERP LES Extended
Extended
LES Extended
WM
WMWM
WM
SAP SCM
Dec WM = full SAP ECC system

SAP Warehouse Management in mySAP ERP SCM Extended Warehouse Management

(integrated or decentralized WM)

Enterprise Focus SPE / Network Focus

 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 create
the warehouse/yard structure visually, improving and accelerating configuration

Provides graphical 2D representation of the warehouse and the yard of the warehouse enabling you to
visualize 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 to
track status progress in yard

Allows navigation from graphics to related information

Mapping
Easy Graphics
for
Framework
EGF

Back end
Data preparation
(already existing
and functionality
Core functions)

Graphical Other technology

Mapping
Representa For next release

tion of
Warehouse
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 most
important characteristics of the storage bin
Link to Storage Bin Maintenance Transaction

Using the right mouse click, we can go directly into the storage bin maintenance
transaction.
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 three

types of optimization:

Task interleaving: a process by which a resource, having just completed and

confirmed a task, is assigned a new task, the source of which is close to the
resource’s current location
Execution constraint: enables you to control the execution of tasks in predefined
zones of a site, preventing resource bottlenecks and ensuring the workability of the
semi-system guided mode of task selection
Semi-system guided work: whenever the user has finished his actual task and
requests new work, the system checks the available open tasks in an area and
sends a user to this area without assigning a specific task
Task Interleaving
Queue Types for Task Sequencing

Inbound Internal Outbound

2 1
Execution Constraint

To optimize the work with RF devices in a warehouse, we focus on three

types of optimization:
Task interleaving: a process by which a resource, having just completed and
confirmed a task, is assigned a new task, the source of which is close to the
resource’s current location
Execution constraint: enables you to control the execution of tasks in predefined
zones of a site, preventing resource bottlenecks and ensuring the workability of the
semi-system guided mode of task selection
Semi-system guided work: whenever the user has finished his actual task and
requests new work, the system checks the available open tasks in an area and
sends a user to this area without assigning a specific task
Execution Constraint Example

EC Zone Combinati Resource Types

on
1 ZN04 1 1 x Picker; 1 x Simple Forklift
2 4 x Pickers
2 ZN06 1 2 x Pickers; 1 x Simple Forklift
2 5 x Pickers

There are currently four pickers subscribed to the destination zone ZN06 so
EC 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 be
assigned to the worker, Marcus.
Semi-System Guided Work

To optimize the work with RF devices in a warehouse, we focus on three

types of optimization:
Task interleaving: a process by which a resource, having just completed
and confirmed a task, is assigned a new task, the source of which is close
to the resource's current location
Execution constraint: enables you to control the execution of tasks in
predefined zones of a site, preventing resource bottlenecks and ensuring
the workability of the semi-system guided mode of task selection
Semi-system guided work: whenever the user has finished his actual
task and requests new work, the system checks the available open tasks in
an area and sends a user to this area without assigning a specific task
Semi-System Guided Work Example (cont.)

2 1
 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 that

have arrived at the warehouse are brought from goods receipt directly to
goods issue without being put away:

Retail Merchandise XD is an existing cross-docking scenario in SAP ERP

6.0 with Retail Solution switched on. Merchandise Distribution is essential
for logistics processes in the retail industry. The retailers plan, control, and
manage their flow of merchandise from the vendors via distribution centers
to the stores or customers.

Opportunistic cross-docking allows incoming deliveries to be redirected

to cover outbound requirements. The cross-docking decision is made in
EWM 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: Inbound
and Outbound Deliveries

Vendor SAP Retail EWM

Run Collective PO Plan Allocation

Receive Handling Unit (HU)

Purchase -Ultimate consignee for HU
Create Purchase Order
Order Inbound delivery

-Ultimate consignee for HU Inbound delivery

Send ASN/ Create ASN/ -CD processing method -CD processing method
inbound inbound delivery - Item type -PO number/item
delivery - Difference indicator -Item type
- PO number/item -Warehouse process type
-Stock type
Create “planned”
outbound delivery
Outbound delivery
Outbound delivery
-PO number/item
-PO number/item
- Item type
-CD processing method
- Warehouse process type
- Item type
Distribution
-CD processing method
- Difference indicator
Data - Stock type

CD: Cross-Docking
Example 1: Retail Cross-Docking: Customer-
Specific Pre-Packed Mixed HU

Door Goods Receipt

UC1 UC1
Mat A Mat A
Mat B Mat B

Active HU Warehouse Task (WT)

Active Material Pick WT

Inactive Material Pick WT

Deconsolidation
*UC1: Ultimate Consignee1

Inb.Del.Ref.
Deleted Final Storage
Type

UC1 UC1
Mat A Mat A
Mat B Mat B

Door Goods Issue

Example 2: Retail Cross-Docking:
Mixed Handling Unit Within Ship-HU

Door Goods Receipt

UC1

Active HU WT
Active Material Pick WT
Inactive Material Pick WT
Deconsolidation

Inb.Del.Ref.
Deleted

Final Storage
Type

Door Goods Issue

Merchandise Distribution-Flow Through:
Distribution by Customer (n:m Relationship)

Outb-1 CUST1
Material 1

Material 2

CUST1

10 10 Outb-2 CUST1
10 Material 3

10
CUST2
10 10 Outb-3 CUST2
STAG
10 10 DOOR1 Material 3
AREA1
Material 2

STAG
10 CUST3 DOOR2
AREA2
10
10 Outb-4 CUST3
10
Material 3

10 CUST4
10
Outb-5 CUST4
10
10 10 Material 1

CD Storage Type Material 2

Pick by (all) customer to distribute the

products to the intermediate bins
Pick by customer, limit to number of staging
= Warehouse Order (WO) 1
areas (here 2)
= WO 2
= WO 1
= WO 3
= WO 2
= WO 4
Merchandise Distribution-Flow Through:
Distribution by Article (n:m Relationship)

Outb-1 CUST1
MAT1

MAT2

Outb-2 CUST1
CUST1
MAT3
10 10
10

Outb-3 CUST2
10 10 CUST2 MAT3
STAG
10 10 DOOR1 MAT2
AREA1

STAG Outb-4 CUST3

10 CUST3 DOOR2
AREA2 MAT3
10
10 10

Outb-5 CUST3
MAT1
10 CUST4
10 10
10 10 Outb-6 CUST4
CD Storage Type MAT1

MAT2

Putaway by product to distribute the

Pick by customer, limit to number of staging
products to the intermediate bins
areas (two here)
= WO 1
= WO 1
= WO 2
= WO 2
= WO 3
Merchandise Distribution-Flow Through: Delivery
Adjustment

Underdelivery:
(only 20 delivered Outb-1 CUST1
Inb-1 instead of 30)
PO-47-10
Item10
PO-47-10 QTY = 15
PO-47-20
Start delivery
Item20
adjustment after Fairshare:
10 10 Reduce 15 to 10
10 10
GR is complete QTY = 10
for each customer

Inb-2
Outb-2 CUST2
PO-47-20
PO-47-10
Item10

10 10 QTY= 15
PO-47-20
10 10 CD Storage Type Item20
QTY=10
Cross-Docking

Cross-docking is a method of materials processing by which materials that

have arrived at the warehouse are brought from goods receipt directly to
goods issue without being put away:

Retail Merchandise XD is an existing cross-docking scenario in SAP ERP

6.0 with Retail Solution switched on. Merchandise Distribution is essential
for logistic processes in the Retail industry. The retailers plan, control, and
manage their flow of merchandise from the vendors via distribution centers
to the stores or customers.

Opportunistic cross-docking allows incoming deliveries to be redirected

to cover outbound requirements. The cross-docking decision is made in
EWM 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 Receipt Counting Station CUST_Inb

Area VAS Station Inbound

IB IB IB IB IB

Inbound
Delivery

Active HU WT (Warehouse Task)

Active Material Pick WT
Inactive Material Pick WT

Final Storage
Outbound Type
Delivery

CUST_Outb
OUT OUT OUT
OUT OUT

Staging Area Packing Station Outbound VAS Station Outbound

Example: Opportunistic Cross-Docking
(Homogeneous Handling Unit) — Outbound

Goods Receipt Counting Station

Area

IB IB IB

Inbound
Delivery

Active HU WT (Handling Unit Warehouse Task)

Active Material Pick WT

Final Storage
Outbound Type
Delivery

OUT OUT
OUT

Staging Area Packing Station Outbound

 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 be

brought to the production supply area. When EWM is used, the products
have to be picked in the warehouse and moved to the production supply
area.
There are several ways to provide components that are required for a
manufacturing order:

Pick parts/release order parts: The products that are needed as components
for 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 required
quantity.

Crate parts/kanban: Products that are often used in the production area are
provided independently from the existing orders. The warehouse is responsible
for filling containers as requested by production. Kanban is a specialized way to
handle crate parts.
Standard Organizational Structure

Separate EWM storage location: Stocks in the Production Supply Area (PSA) are
managed in a separate EWM-managed storage location, providing transparency for
the Production Supply Area stocks both in EWM (at bin level) and in ERP (at
storage location level).

Warehouse
Production Supply Area
Storage Location
Storage Bin

AFS: Available for Sale

ROD: Received on Dock
Alternate Organizational Structure

Non-EWM storage location: The stock in the Production Supply Area(s) is not
managed in EWM, but in ERP MM-IM at storage location level.

Warehouse
Production Supply Area
Storage Location
Storage Bin

AFS: Available for Sale

ROD: Received on Dock
Alternate Organizational Structure (cont.)

EWM storage location in another EWM Warehouse: The staging to the Production
Supply Area is a two-step process: an outbound process from the sending EWM
warehouse and an inbound process to the receiving EWM warehouse

Warehouse
Production Supply Area
Storage Location
Storage Bin

AFS: Available for Sale

ROD: Received on Dock
 Scenario: Pick Parts and Release Order Parts
with 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 Storage
Locations
Scenario: Kanban Parts with MM-IM Storage
Location
 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

 Thank you!

© SAP 2007 / Page 43

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