Warehouse management

Rack and Bin storage system

 Definition
• The warehouse management system provides
flexible, automated support to assist you in
processing all goods movements and in
maintaining current stock inventory in
warehouse complex.
• It is an extension of sap MM-IM is the WM
module.
WMS Interface with other module
 WM is the part of Logistic Execution
module

Transportation
(LE-TRA)
Sales and
Distribution
Shipping
Logistics (LE-SHP)
Execution(LE)
Material WMS
management (LE-WM)
 Challenges in MM-IM
• Lack of detailed visibility to material flow.
• Required manual update when quantities differ.
• Inability to assign incoming materials to
outbound demand to avoid multiple material
handling.
• Immediate update of inventory receipt and goods
issues.
• Limited visibility to locations of material.
• Only possible to assign a single fixed bin location
per storage location.
 Benefits of WM module
• Track exact stock location in plant.
• Provides better picking and put-away
strategies.
• It is not complex to manage the stock.
• Manage inventory at storage bin level.
• Manage the hazardous material.
• Processing of all stock movement valid for
WM receipt, issue, transfer etc.,
 Sap WM structure
company

Plant-1 Plant-2

Storage Storage Storage

location-1 location-2 location-1

WM-1 WM-2

Storage Storage Storage Storage

Type-1 Type-2 Type-3 Type-1

Storage Storage
section -1 section-2

Bin -1 Bin -1 Bin -1 Warehouse

management
system
Quant Quant Quant Quant
 Measurable benefits of WM system
• 16-25% picking productivity improvement.
• 11-25% of increase the customer delivery.
• 10-25% saving the material labour.
• 10-40% space utilization improvement.
• 8-15% reduction in carrying costs.
 Storage type
• The standard storage types are high rack, fixed
bin, bulk storage type etc.,
• These interim storage types (900-999) are
required for various postings (for example, GR
and GI postings, differences) in WM. Interim
Storage areas are the bridge between IM and
WM
- Goods receipt area
- Goods issue area
- Interim storage area for differences
- Posting change area,etc.,
Storage types
Interim storage type Copy and edit into WM NO
 Storage section
• The storage section indicator divides materials into groups
with the same characteristic attributes. The indicator is
used to assign certain material groupings to certain storage
sections. This enables us to implement the picking
strategies effectively
• Material which are classified as Fast / Medium or Slow
moving similarly these material when you receive in the
warehouse Fast material should be stored in Fast moving
area, Medium moving material in Medium moving area and
Slow moving in Slow moving area,same needs to be
replicated in SAP you need to tag the material as fast /
medium & slow using the storage section indicator.
• The storage section can serve as an organizational aid for
putting away goods in the warehouse.
 Flow
• SPRO-SAP Ref IMG-Logistics Execution-Warehouse
Management-Master Data-Define storage section-copy
then edit the warehouse number in storage section.
 Storage Bin
• Storage bin is link with the storage section.
• It is small unit in wm system.
• The storage bin is the physical location where
the material is stored.
• Storage location can be contain in shelf or rack
in WMS
• The storage bin has a unique identification of
location by 10 characteristics.
 Define storage type
• Flow -SPRO-SAP Ref IMG-Logistics Execution-
Warehouse Management-Master Data-
Storage Bins-Define Storage Bin Types-New
entries
• storage bin types

• Based on the company pallet and bins are

different.
 Define Blocking Reasons
• The storage blocking reasons are used for
blocking purpose.
• They need for once the bin is get damage, the
rack damage and maintenance reasons
 Define Storage Bin Structure
• Real time structure in storage Bin
LEVEL-4 C01-01-04 C01-02-04 C01-03-04
LEVEL-3 C01-01-03 C01-02-03 C01-03-03
LEVEL-2 C01-01-02 C01-02-02 C01-03-02
LEVEL-1 C01-01-04 C01-02-01 C01-03-01
C01-RACK STACK-1 STACK-1 STACK-1

Template – Rack-Stack-Level
• Flow -SPRO-SAP Ref IMG-Logistics Execution-
Warehouse Management-Master Data-
Storage Bins-Define Storage Bin structure -
New entries(Tcode-LS10)
• Give the WH no, storage type , sequence number ,template (
C- constant - Numeric value),storage section, storage bin.
Given all data and click environment and create bin
1 Click here and create a bin

Automatic bin create like this

2
 Manual creation of storage Bin
• Flow –SAP menu-Logistics-Logistic Execution-master
data-Warehouse- Storage Bin- Create - LS01N(Tcode)
– Manually.
• Give the new storage bin it was saved.

Give the new storage bin and save

Storage bin A01-01-02 has been created

Message no. L1016
 Define Special Movement Indicators
• The special movement indicator divides materials
of the same feature characteristics into
groups. Using the special movement indicator
you can, for example, allocate one of the different
movement types from Inventory Management in
the Warehouse Management system.
• Movement of Heavy material, critical material
• Flow -SPRO-SAP Ref IMG-Logistics Execution-
Warehouse Management-Master data-Material-
Define Special Movement Indicators- New Entries
Inbound process
 Check the stock
• T-code:LS26
• The stock is in 902 movement of 101 (G.R )
 Create a transfer order number 1

• T-code-LB10
• Give the warehouse no
• Then ENTER

Click here

2
 Click here

Give the stock

unit type
 The location is come here ,then save

Conform Transfer Order

T-code-LT12
Then save
The stock view in WMs
Stock view in Bin system(LS24)
 Outbound Process
Sales order Out bound delivery Check the Existing
• VL01 stock
• VL01N
• ME21N • MMBE
• LS26

Stock placed in interim Create T.O

Confirm T.O storage type • LB10
• LT12
• 916

Delivery post Check the document Check the document

goods issue for Billing for Billing
• VL02N • VF01 • S_ALR_87014387
Availability check

MMBE

LS26
Sales order VL01 /ME21N
Out bound delivery-VL01N
Create T.O
Create T.O-LB10 or Flow by out bound
delivery
Stock placed in interim storage type
916
Confirm T.O-LT12
Delivery post goods issue-VL02N
Check the document for Billing-VF01
Check the document for Billing
S_ALR_87014387
Stock Process
Before

After