Logistics Optimization with Handling Unit Management

Logistics Optimization with HUM by

Anil Kumar
 Agenda
• Overview of Handling Units.
• Receiving Handling Units.
• Handling Units & Inventory Management.
• Shipping Handling Units.
• Interplant and Intercompany Transfers with Handling
Units.
• Handling Units in Production.
• Warehouse Management and Handling Units.
• Quality Management and Handling Units.
• Packaging.
• More of HU Integration.
• Lessons from Go-Live.
• Summarizing Handling Unit Management.

Logistics Optimization with HUM by

Anil Kumar
What is a Handling Unit?

Logistics Optimization with HUM by

Anil Kumar
 What is a Handling Unit?
• A Handling Unit(HU) can be thought of as a system representation
of a real world grouping of materials.

• Location/Status information of a group of individual materials

assigned to a HU can be tracked by recording the HU move.

• A Handling Unit has a unique number identifying it. The unique

number can be formed to the specifications of industry standards
such as EAN 128 or SSCC. The HU grouping of materials is
generally tagged with the scannable HU identifier.

• The HU data entity can contain additional information such as

volume, weight, dimensions, packaging material, status etc.

• A HU can maintain a historical record enabling backward traceability

and can thus assist in product recalls.

Logistics Optimization with HUM by

Anil Kumar
Receiving with Handling Units
• An Inbound Delivery with pallet/packaging information can be
verified and received using Handling Units.

• Handling Units can be reused eliminating the need to reassociate a

group of materials with a new handling unit and a corresponding
new tag as it moves through the supply chain.

• HUs eliminate the need to use less efficient forms of pallet/package

identification in container load shipments.

• An ASN sent by a vendor can automatically create HUs along with

the Inbound Delivery document.

• Seamless accounting of returnable containers/packaging.

Logistics Optimization with HUM by

Anil Kumar
 Handling Units & Inventory
Management
Non HU HU Manage
SLoc SLoc

• Handling Unit Management (HUM) is specified at the organizational

unit of “Storage Location”.

• At a HUM location all stocks need to be associated with at

• least one Handling Unit.

• A HUM location requires a partner non-HUM location. Any

unpacking at a HUM location automatically moves the inventory into
the non-HUM location.

• Movement of material in a HUM location requires a Handling Unit to

be specified.
Logistics Optimization with HUM by
• Handling Units enable fast and efficient material movement.
Anil Kumar
 Shipping Handling Units
• HUs can be picked whole, or partially via Pick-HUs.

• Eliminates the need to explicitly specify packaging information at time of

shipment.

• ASNs sent to customers can include packaging information.

• Package volumes, weights and dimensions are available for shipment

planning.

• Backward traceability available thus helping with the resolution of product

issues.

• Delivery picking can be restricted to only certain package types, based on

individual customer specifications.

• Seamless accounting of returnable containers/packaging.

Logistics Optimization with HUM by

Anil Kumar
Interplant/Intercompany Transfer w/ HUs

• Picking of groups of materials via HU picks.

• HU information automatically updated in Outbound Delivery.

• HU information automatically updated in Inbound Delivery.

• Putaway of groups of materials via HU put away.

• HUs & HU tags reusable across different facilities.

• Record of activities with respect to HU throughout its life within

the organization. Helps with traceability requirements.

Logistics Optimization with HUM by

Anil Kumar
 Handling Units in Production
• Packing information can be specified and recorded at time of production
rather than at time of shipping.

• Order independent staging of HU to non-HU location. Material backflushed

and/or issued like in non-HU environments.

• Order independent staging of HU, and HU issued to production order. Or

HU assigned to order and backflushed.

• Order specific staging and issue to production order.

• Order based, repetitive and process manufacturing supported.

• Goods receipt by HU.

• HU can be assigned to a sales order at time of production*.

Logistics Optimization with HUM by

Anil Kumar
Warehouse Management and HUs

Logistics Optimization with HUM by

Anil Kumar
Warehouse Management and HUs

Logistics Optimization with HUM by

Anil Kumar
Warehouse processes to be considered within traceability scope

Logistics Optimization with HUM by

Anil Kumar
 Handling Units in Quality
Management

• Inspection lots are assigned to Handling

Units.
• Samples can be at HU or inspection lot
level.
• Usage decision and transfer posting by
HU
Logistics Optimization with HUM by
Anil Kumar
 Packaging
• At least one packaging material is
required for creating a HU. The
required packaging material is
identified as a load carrier.

• Packaging conditions can be

created when consistent packs
are being delivered to customers
and received from vendors.

• Automatic and/or semi-automatic

creation of HUs possible.

• Business processes involving

returnable packaging functions
are supported.

Logistics Optimization with HUM by

Anil Kumar
 More of HU Integration
• Serial numbers of products can be associated with a HU. Thus
tracking of serialized products becomes considerably easier with
the association to a HU.

• Batch information is stored along with the product in a HU.

• Handling Units nicely dovetail into the functionality of Value
Added Services(VAS).

• HUs are used to represent Trucks/Containers in Yard

Management.

• Physical and Cycle Inventory can be conducted at HU level.

• Baseline RF transactions for HUs are included.

• SCM EWM makes extensive use of handling units with some

functions such as process layout functionality requiring the use
of Handling Units.

Logistics Optimization with HUM by

Anil Kumar
 Lessons from Go-Lives and
Implementations
• Complexity and effort required in the conversion of inventory
into a HUM environment is frequently underestimated creating
bottlenecks and issues during cutover.

• Not enough retraining planned for experienced SAP users.

• Change of thought paradigm required particularly in

environments not used to SU concepts.

• Lack of adequate testing on-site with hardware such as label

printers and RF equipment included in the test.

• Not enough cross functional involvement and ownership. HUs

affect multiple functional processes and thus require
involvement from multiple areas.

Logistics Optimization with HUM by

Anil Kumar
 Summarizing Handling Unit
Management
• Handling units can simplify and accelerate movement of goods
through supply chains.

• Handling units integrate through most of SAP’s functionality.

• Implementation of HUM in an environment with movement of

packaged material provides a compelling return on investment.

• Handling units facilitate a higher velocity of material flows.

• HUs provide proven functionality and value in environments

where packing information is materially relevant.

• Handling units are intrinsic to many new functional

developments from SAP and thus provide strategic value in
environments where SAP products form the backbone of the
enterprise software systems.

Logistics Optimization with HUM by

Anil Kumar