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SAP IM Vs WM PDF
SAP IM Vs WM PDF
SAP IM Vs WM PDF
WM: How to
Choose, Use, and Optimize
Gavin Klaus
Catalyst International, Inc.
What We‟ll Cover …
Client
Plant
continued...
Challenges with Inventory
Management (cont.)
Plant 1 Plant 2
> IM-WM
• Processing of all material movements
• Automated communication with configurable processing
> SD-WM
• Two-step picking with SD-WM integration
• Wave picking opportunities
• Processing individual deliveries
> PP-WM
• Production support with PP-WM integration
• Supplying materials to the shop floor
• Internal and external automated replenishment options
WM Integration With Other
Key R/3 Modules (cont.)
QM-WM
• Handling of inventory samples
• Inspection lot is maintained with the material data
Hand-held terminals-WM
• Processing of transfer requirements
• Processing of transfer orders
• Bin and material inquiries
Benefits of WM
> Benefits
• Better control of inventory
– More accurate inventory
– Able to maintain lower inventory levels
• Better control of information
– Visibility to picking and put away status
• Reduced cycle time
– Gartner: 16-25% Picking Productivity Improvement
• Better manage work and workforce to gain efficiencies
– Tools to balance and optimize resources
• Increased picking / shipping accuracy
– 11-25% Reduction in Customer Returns
Benefits of WM (cont.)
Source: Intermec
> As-is
• 1,000 pallets at five minutes / pallet = 5,000 minutes
> Pro‟s
• Simplistic
– Key receipt, issue or transfer in a single step transaction
– Immediate update of inventory
• Requires less training commitment
– Fewer transactions to document and present
• Trace-ability of all material postings into SAP R/3
– Date, user, material, quantity, storage location
• Real-time update of accounting information
1 - Inventory Management
(cont.)
> Con‟s
• Does not handle complex warehouses operations well
– Unable to monitor activities
– Lacks tools to manage resources and tasks
– Lacks functionality to optimize key processes (picking)
• Inaccurate system inventory
– Inventory updated before the physical movement
– Requires additional work if there are discrepancies
• Limited trace-ability
– Only visibility is when the system posting took place
– No visibility to the follow on physical activities
Option #2 - “Lean”
Warehouse Management
> Pro‟s
• Requires less configuration than full WM
• Reduced number of steps in the process
– Use of transfer orders as pick lists
– Confirmation is not required
• Additional processing options
– Confirm put-away, picking, over-deliveries, shortages,
batches
– Print transfer orders
– Integration to HR
• Additional picking functionality
– Wave picking is possible with Lean WM
2 - “Lean” Warehouse
Management (cont.)
> Con‟s
• Must have a fixed bin assigned for all materials
– Random storage is not possible
• Inventory is still under IM functionality only
– Inventory options are at the storage location
– Stock differences can only be processed in MM-IM
• Lacks additional optimization opportunities
– Picking, packing, bin accuracy
• No strategies are used
– Lack of picking and put away strategies
Option #3 - Full Warehouse
Management
> Pro‟s
• Optimization opportunities
– Picking - Two step picking
– Packing - Pick and pack in a single step
– Cross-docking - Inbound, outbound, prod. materials
• Monitoring and real time visibility to process status
– Visual queues at the detailed steps
– Open tasks, completed tasks
• Additional inventory methods (annual, zero stock)
• The module is FREE with the purchase of SAP
3 - Full Warehouse
Management (cont.)
> Con‟s
• Inventory counting interferes with operations without RF
– Prior to 4.7 extension set 2.0
• Initial overhead to set up depending on design
– Master data
– Capacity checking, control cycles
– Configuration requirements
– Designing the warehouse layout and set up
• Potential for additional steps to support processing
– Confirmations
– Clearing differences
– Processing posting changes
Option #4 - Decentralized
Warehouse Management
> Pro‟s
• On a separate machine
– Decreases criticality of down time
– 24x7 operation
• Can leverage newer SAP R/3 releases
– Even if core system is on an older release
• Can add additional warehouses without impact to the
core system
• Can communicate to multiple core ERP systems
4 - Decentralized Warehouse
Management (cont.)
> Con‟s
• Core system is not 24x7 operation
– IDOC and/or BAPI errors
• IDOC failures
– Human intervention is required to work the error queue
• IDOC overhead
– IDOC‟s do not offer all of the available field options that a
user may or may not use with the PC transaction
– Must modify the IDOC
• SAPConsole has to be set up in the decentralized system
and in the core system
Scaling the Solution
TRM
Decentralized
WM
Transaction Volume
WM
Lean WM
IM Only
Operational Complexity
What We‟ll Cover …
continued…
7 Key Points to Take Home
(cont.)