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B-BSAP311LA BSA31 1st Sem ( 2021-2022 )

MODULE 5 - Warehouse Management Process Flow

Lesson Proper and Learning Activities

SAP Extended Warehouse Management (EWM)

According to Lingaiah Vanam, SAP S/4 Hana, the Digital Core, is the next generation of ERP to modernize for Digital Businesses. The SAP Lines of Business (LoB)
solutions continue to be consumed as standalone solutions or as part of the SAP S4 Hana LoB solutions giving more choice to customers, allowing true hybrid scenarios and
incremental deployments.

Supply Chain Management for extended warehouse management. To make it simple, we’ll call it “embedded EWM”. With the release of it, both basic warehousing and
extended warehouse management are running on a common code base embedded in SAP S/4HANA.

SAP Extended Warehouse Management (EWM) is now available as an embedded application in SAP S/4 Hana. It combines best-in-class proven warehouse management
capabilities with the benefits of SAP S/4 Hana.

Technically, the simplified integration of the embedded EWM within the on-premise edition of S/4 Hana is reached by the adoption of a unified data model (that is, new
product code line). The goal is to simplify the data model as much as possible. The major simplifications are as follows:

1. Core interference  is not used any more for master data including a business partner, material master and batch
2. Redundant customizing tables are eliminated
3. Direct read of actual data in SAP S/4 Hana is realized instead of replication, for example, material values, accounting objects, purchase orders, production orders, etc.

In case of large rollout plans SAP recommends an SAP DBS service to evaluate the specific requirements and boundary conditions and to create a recommended proposal
for EWM deployment strategy. SAP already has experience in such a service including the new option of the embedded EWM in S/4HANA. EWM and WM can be run in
parallel on a single S/4HANA client.

The warehouses must be linked to different storage locations. It is not possible to run a single warehouse (single storage location) with a mixture of WM and EWM
processes.

Key Capabilities

Inbound Processing:

Transportation unit processing; goods receipt management and optimization

Inbound quality management and internal routing

Storage and Operations:

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Physical inventory, slotting, replenishment, and rearrangement
Kit-to-stock management and value-added services

Outbound Processing:

Outbound planning including route, wave management, goods issue, and pallet planning
Picking optimization, packing, staging, and load management

Warehouse Management Portfolio

Embedded EWM in S/4 Hana is available in two versions:

Basic Warehouse Management

Extended Warehouse Management

Both versions are available with the SAP S/4HANA installation. You set up the warehouse management version at the warehouse number level. You can change the version
used by a warehouse at any point in time. Basic warehousing functions of embedded SAP EWM are included in the SAP S/4 Hana Enterprise Management License.
Advanced functions will require the classic SAP EWM Engine License. The Advanced and Basic Functions are as follows: (Note: The de-central EWM always requires the
classic SAP EWM Engine License no matter using advanced or basic features or not).

Major Differences in WM and S/4 Hana EWM

Functionality WM S/4 Hana EWM

1 Transactions GUI GUI and SAP Fiori
2 Warehouse Number 3 Characters Code 4 Characters Code
3 Storage Section Mandatory Not Mandatory
4 Storage Type Storage unit or non-storage unit must be defined at storage type level Storage unit concept replaced with Handling Unit (HU)
5 HUM Functionality Activation at Storage Location Level Activation allowed in same storage types/bin
6 Storage Bin 10 Characters Code 18 Characters Code
7 Storage Bin Unique Bin Number not required Bin number must be unique
8 Storage Bin Dynamic Bins are possible No Dynamic Bins
9 Storage Bin One Fixed Bin by Material Multiple Fixed Bins by Material
10 Business Partner Not mandatory Mandatory (partly entitlement to dispose)
11 Analytics Not available SAP Fiori Analytics/KPI

PROCESS OVERVIEW IN WAREHOUSE MANAGEMENT

Due to increasing sales output in your San Diego distribution center, management has decided to install a Warehouse Management System. This implementation has just
been completed and the new system needs to be tested. For this purpose, trading goods should be procured by a vendor and put in the stock in San Diego, using the new
warehouse management system.

In order to receive goods from a vendor you need to create a purchase order. Goods will be sent by the vendor to the distribution center and you will create a goods receipt in
San Diego. The system will automatically create a transfer order for the received goods to put them into stock. In conclusion, you will check if the goods were stored in the
correct storage bins. As this case study focuses on Warehouse Management, detailed instructions of how to receive the invoice and how to pay the vendor are not included.
However, you may use respective parts of the Materials Management (MM) case study to finalize the procurement process and see the financial impact.

Task 1: Create Purchase Order

Use the SAP Fiori Launchpad to create an immediate purchase order for materials from a supplier, i.e. to start the procurement process without having created a purchase
requisition before. To create a purchase order, use the app Create Purchase Order.

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Task 2: Display Material Inventory

Use the SAP Fiori Launchpad to display the inventory of your material. To display the material inventory, use the app Display Stock Overview.

Task 3: Display Material Inventory Inventory Value

Use the SAP Fiori Launchpad to display the value of your material inventory. To display the material inventory value, use the app Display Warehouse Stock.

Task 4: Post Goods Movement

Use the Fiori Launchpad to create a goods receipt which documents the receiving of your materials in San Diego. To create a goods receipt, use the app Post Goods
Movement.

Task 5: Display Material Inventory

Use the Fiori Launchpad to display the inventory of your material again. To display the material inventory, use the app Display Stock Overview. 

Task 6: Display Material Inventory Value

In this step, you will use the Fiori Launchpad to display the value of your material inventory again. To display the material inventory value, use the Fiori App Display
Warehouse Stock.

Task 7: Run Bin Status Report

Use the SAP Fiori Launchpad to run a bin status report, which will display a detailed report of each storage bin within the specified warehouse. To run a bin status report,
use the app Run Bin Status Report.

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Task 8: Create Transfer Order

Use the Fiori Launchpad to create a transfer order to place your goods into your storage bin. It is a handoff from inventory management to warehouse management. The
system recognizes that there are goods that have been received but need to be put away. To create a transfer order, use the app Create Transfer Order.

Task 9: Confirm Transfer Order

Use the Fiori Launchpad to confirm the transfer order you created in the previous step. This is to confirm that the goods are physically in the storage bin indicated in the
transfer order. To confirm a transfer order, use the app Confirm Transfer Order. 

Task 10: Run Bin Status Report

Use the SAP Fiori Launchpad to run a bin status report, which will display a detailed report of each storage bin within the specified warehouse. To run a bin status report,
use the app Run Bin Status Report.

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