SAP Document for EWMS

SCM Extended Warehouse Management Detailed Overview

Elinor Castell Solution Management EWM SAP AG

AGENDA 1.

Introduction & Roadmap

2.

Detailed Overview

3.

Upcoming Functionality in EWM 7.01

4.

Summary

SAP: 16+ Years of Warehousing Expertise

R/3 R/3 Release Release 2.0/2.1 3.0/3.1

• Storage Units • Parallel Processing

1993

Integration • PP • QM • LIS

1995

R/3 Release 4.0

• Rough Workload Estimate • Picking Waves/ Two Step picking • Warehouse Monitor • Integration to HR

1997

R/3 Release 4.5

Decentralized WM • Prototype of RF

R/3 Release 4.6

• Native RF/ SAP Console • HUM • Packing Stn

R/3 Release 4.7 EE1

Task and Resource Management

R/3 Release 4.7 EE2

ERP EWM • XD • YM • VAS

SCM EWM 5.0 •Slotting •Rearrangement •Warehouse Orders •Warehouse Monitor •Internal Routing

2005

1998

2000

2002

2003

2006

SCM EWM 5.1 •Labor Mgmt •MFS •WH Cockpit •RFID Integr. •Batch Mgmt •Serial Nr •Catch Weight •ESA

2008

SCM EWM 7.0

SCM EWM 7.1

•Graphical •Integration WH Layout to Transp. •Production processes Supply *Reverse •Merchandise Logistics Distrib. XD enhancements •Task Interleaving

2009

Extending the Scope of our Warehousing solutions

2010

Enterprise, Service Parts Execution and Network Focus

Integrated Scenario

Decentralized ERP Scenario

ERP

Other ERP

ERP ERP

WM

Logistics

FI/CO

SAP ERP WM

SAP LES

SAP LES

SAP SCM

Dec WM = full SAP ECC system

SAP Warehouse Management in mySAP ERP (integrated or decentralized WM)

Enterprise Focus

Extended Extended Extended WM WMWM

SCM EWM Add-On

SCM Extended Warehouse Management

SPE / Network Focus

AGENDA 1.

Introduction & Roadmap

2.

Detailed Overview

3.

Upcoming Functionality in EWM 7.01

4.

Summary

EWM Inbound Process Overview New

New

Slotting

Receive ASN Data

ASN Validation and Correction

Transport Unit Arrival

Manage Transport Unit

New

Goods Receipt

Putaway Bin Determination

Unload Transport Unit New

New

New

Deconsolidation (Internal Routing)

Putaway Process Exceptions/Manage Work in Process

New Inbound Processes New

New

New

Pick From Receiving/ Push Deployment

Returns/Reverse Logistics

Transportation Cross dock New

Packaging Execution

EWM Outbound Process New

Order/ Deployment

Route Determination

Work Assignment

Picking

New New

Wave Management

Packing

Picking Bin Determination

Staging

Process Exceptions/Manage Work in Process

Warehouse Orders

Loading and Goods Issue

EWM Internal Processes New

Kitting

Inventory Counts Record Accuracy New

Replenishment New

Rearrangement

Process Exceptions/Manage Work In Process

Additional Warehousing Processes New

Yard Management Management and Tracking of Vehicles/ Transportation Units from yard check-in, throughout the yard movements tasks, and yard check-out

Quality Inspection Engine Service oriented Quality Inspection Engine to support the quality processes for warehouse management

New

New

Environmental Health & Safety EH&S data and checks used in Product Storage, Shipping Documents and Transportation Routing

New

Process Exceptions/Manage Work in Process

Foreign Trade/ Bonded Warehouse Customs management SPL Screening Re-exports Duty unpaid returns

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions. Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together Handling Resources (Fork lift, picker) in the warehouse and assign only the work that can be done by this resource. Visibility of stock on resources

Internal routing Slotting

Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Possibilities of Internal Routing Layout based internal routing defining intermediate points between storage types for handling of multi-step picking and putaway

Process oriented internal routing defining mandatory / optional steps Loading / Unloading Packing Counting Deconsolidation Putaway / Picking Staging

Layout Oriented Internal Routing Handling Unit

Basic Concept

HU Warehouse Task

Z

WT not active

Goods receipt area A

High rack area B WT not active

Active WT

WT active

Check-point Y

Node

WT active

Z

From

To

Intermediate

A

B

Y

Y

B

Z

Complex Putaway with Process Oriented Internal Routing Prod. WT Mat. 1 Goods Receipt SType: 9010 Bin: GR-ZONE

Deconsolidation Station: AP1 SType: APDK

1 3 Step: IB02 2

Deconsolidation

Step: IB01 Unloading

type: 9030 Bin: Door1

Sec: AP1I

Sec: 0001 Bin: AP1

Bin: AP1I Step: IB03 Put-away

4

Prod. WT Mat. 2

Final SType JK01

Final SType JK04

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions. Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together Handling Resources (Fork lift, picker) in the warehouse and assign only the work that can be done by this resource. Visibility of stock on resources

Internal routing Slotting

Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Slotting

Find and optimize bin for material Physical criteria to find appropriate bin type -> Space optimization Demand criteria to find appropriate bin section -> Time optimization Rule based Rearrangement of material in bins -> Closing the optimizing loop

Slotting Slotting automatically determines a storage concept for a product.

The system determines the underlying storage parameters that are relevant for put-away on the basis of master data, including:

product data storage requirement data packaging data

These parameters describe

the storage section in which the product is to be stored the properties that the storage bin is to have the putaway strategy that is to be used.

Slotting takes into account master data that is not dependent on the execution process. If the putaway process for a product is dependent on execution parameters, this dependency is taken into account later on during storage bin determination. This does not, however, have an effect on the results of slotting.

Slotting

Slotting determines the following storage parameters and updates the product master: Putaway strategy Maximum quantity in storage type Storage section indicator Storage bin types

Slotting could also determine a fixed bin for product

Slotting provides the basis for Rearrangement (carrying out the results of the slotting run)

It is also possible to simulate the slotting run

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions. Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together Handling Resources (Fork lift, picker) in the warehouse and assign only the work that can be done by this resource. Visibility of stock on resources

Internal routing Slotting

Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Rearrangement optimizes warehouse management and reduces operational costs Pick Order before Optimization

Rearrangement Execution

‚Golden Zone‘ for Fast Movers

Business Case 60.000 line items a day

~ 450 hours time saving per day

and...Improved Service Level !

> 1.000.000$ savings per year!

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions. Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together Handling Resources (Fork lift, picker) in the warehouse and assign only the work that can be done by this resource. Visibility of stock on resources

Internal routing Slotting

Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Warehouse Order Creation Process WHR 1 WHR1 WHR1 WHR1 WHR1

A list of warehouse requests are created

These warehouse requests will be grouped Wave 1

into one wave

Based on the wave numerous WTs will be

WT 1 WHR1 WHR1 WHR1 WHR1

WT n WHR1 WHR1 WHR1 WHR1

created

Warehouse Order Creation

All WTs will pass the „Black Box“ Warehouse Order creation. Depending on customizing, warehouse orders can contain WTs from different deliveries.

WO 1

WO 2

WO n

TO WHR1 WHR1 WHR1 WHR1

TO WHR1 WHR1 WHR1 WHR1

TO WHR1 WHR1 WHR1 WHR1

Warehouse Order Creation – Schematic Flow Grouping by Activity Area: AA 01

WT WHR 1

WT

WT

WT

WT

WT WT

AA 02 WT

WHR 2

WT

WT

WT

WT

WT

AA 01

AA 02

a) WOCR1 a) WOCR3 b) WOCR2 b) WOCR2

WT

c) WOCR3

WT WT

WO Creation Rules (Customizing):

WT

AA 03

WT

WT

1 2

3 Try WOCR3

WT 1

WT 3

WT 2

WT 4

AA 02

Created Warehouse Order 4711 WT 3

4

WT 4

5 Try WOCR2

WT 1

WT 2

6

AA 02

Created Warehouse Order 4712 WT 1

7

WT 2

AA 02 a) WOCR1

Wave Handling: Grouping of Delivery Lines

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions. Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together Handling Resources (Fork lift, picker) in the warehouse and assign only the work that can be done by this resource. Visibility of stock on resources

Internal routing Slotting

Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Resource Management

Resource Management: Users and equipment combination which can be defined as being allowed to execute work in the warehouse. RF (automatic or manual) Non-RF environment (manual) Tracked and Displayed in the Warehouse Monitor Visibility of stock on Resources

Resource Type: Groups resources with similar technical or physical characteristics Resource Group: Groups resources for queue assignment purposes

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions. Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together Handling Resources (Fork lift, picker) in the warehouse and assign only the work that can be done by this resource. Visibility of stock on resources

Internal routing Slotting

Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Wave Management

WM request x Delivery x

Item 1 Item Dx2Item 1 Item Dx3Item 2 Dx Item 3

Wave Wave

Wave Creation methods to control amount of work released to the warehouse floor at a specific time Automatic, Immediate or Manual release Full or Partial delivery may belong to a wave Content: Release time /date Order Type (e.g. Emergency / Stock) Process Type Grouping by route, pick area(s), packing lanes...

Warehouse Order x WO Item 1 WO Item 2 WO Item 3

Bundle assigned to a worker

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions. Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together Handling Resources (Fork lift, picker) in the warehouse and assign only the work that can be done by this resource. Visibility of stock on resources

Internal routing Slotting

Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Warehouse Monitor The warehouse monitor is a central tool for keeping warehouse managers constantly up-todate as to the current situation in the warehouse and to enable them to initiate appropriate responses accordingly.

Demo

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions. Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together Handling Resources (Fork lift, picker) in the warehouse and assign only the work that can be done by this resource. Visibility of stock on resources

Internal routing Slotting

Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Transportation Cross-Docking Definition: Procedure to plan & optimize transportation from source to destination via intermediate cross-docking locations. At any intermediate CD location the goods are brought directly from goods receipt to goods issue without being put away. Only operates with HU’s

Transportation cross docking supports optimized warehouse processing at intermediate warehouses without the need for storage or repacking outbound deliveries from sales orders and stock transport orders integration with storage control full pallet operations with Pick-HU-WTs (HU only)

Main Features -EWM 5.1 Labor Management Measurement and KPI’s Planning and Simulation Visualization

Analytics Warehouse Cockpit Use EGF to configure graphical cockpit for visualization of application data

RFID enablement Goods receipt optimization Goods receipt initiated in Extended Warehouse Management (EWM) Production goods receipt

Kitting enhancements Kit-to-stock

Main Features -EWM 5.1

Batch management enhancements

SAP EWM

Batch search in the picking process RFC

RFC-Adapter

Task

Event

Response

„push“

„pull“ Channel 2 TCP/IP

TCP/IP

Task Confirmation

Channel 1

Batch Classification during Goods Receipt Batches in the outbound delivery Manual creation of outbound deliveries in EWM ESA enablement

PLC 1

PLC 2

Material Flow System (MFS) Serial number / Product

Serial number enhancements Pick individual serial numbers

Location and Handling Unit

Catch-Weight Support

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Create Inbound Deliveries based on shipping documents

Expected Goods Receipt

Automate your business processes and react flexibly to changes in your business processes Connect and control an automatic warehouse

Create kits and transfer to stock Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Warehouse Cockpit

eSOA Enablement

Material Flow System Kit-to-Stock RFID Enablement

Create Outbound Delivery manually

Labor Management Labor management modules are used to better manage the time and productivity of warehouse workers. They consist of the ability to plan, measure, view, and simulate labor activities.

For effective management of the labor supply chain, it is necessary to: Get the right person to the right place at the right time Track people throughout the day and measure performance on individual tasks Measure the quality and safety for each employee’s performance Provide alerts when performance falls below expectations Calculate costs and incentives for employees Simulate impacts to labor as a result of changes to the process flow or inventory Highlight the cost and efficiency of individual employees, facilities, teams, and the enterprise

Activation of Labor Management

Labor Management is activated by Warehouse Number and Internal Process Step Labor Management can be deactivated for particular External Process Steps

Warehouse EEG1

LM Active

Internal Process Step:

Non PhysUnload- Decon- Quality ical Activate Storage Picking Packing Loading ing solidInspecLM Control Invenation tion Moves tory

External Process Step: Deactivate LM

Replenishment

Adhoc Moves

Shrinkwrapping

Painting

VAS Activities

Oiling

Measurement and KPIs

Track people throughout the day and measure performance on individual tasks Capture direct vs. indirect time Interface to HR Time and attendance Compensation and incentives

Resource definition (processor and equipment) Measurement services (KPI builder)

Indirect Labor: What is It?

Work that is not product-related. For example, sweeping the warehouse floor or attending a meeting.

Direct labor

Indirect labor

Unproductive time

• Picking • Put away • Inventory counting • VAS • ...

• Sweeping the floor • Housekeeping • Cleaning • Meeting • ...

• Breaks • Bathroom • ...

Assumption: Indirect labor tasks are based on external process steps. You can capture them via indirect labor document.

Assumption: HR captures unproductive time implicitly

Assumption: Direct labor is captured in EWM via existing documents like WO, PI document, VAS order, etc.

Indirect Labor Example

Processor

Planning and Simulation

Standards creation and feedback Traditional measurement: Measure lines per hour, cases per hour, etc. Engineered labor standards: How long should it take to complete a specific task?

Workload and capacity planning for different aspects Measurement services/formula editor Workforce and load simulation Operational planning

Basic Concepts

Planning:

• • •

frequently used tool to determine the number of required employees and the expected workload based on workload, which is created by every activity planned to be executed in the warehouse will be based only on preprocessing workload, planned workload, measurement services and processor data

Labor Standards Calculate execution time: • guesstimates • historical data • engineered standards

Services workload

• workload • processor • KPI

Simulate Change: • planning goal • workload • processor • KPI

workload

Preprocessing

Plan

Create planned workload Define planning goal: • workload • processor • KPI optional must

View • result • workload • processor • KPI

Planning

Operational Planning: Operational Planning provides a short-term overview of the warehouse (next hours or days) Used for short-term determination of work and resources Rough estimate of workload Considers one or more activity areas and external process steps You can base it on preprocessing Based on the aggregated values (workload, processor) and measurement services

Simulation

Operational Simulation: Simulation

manual change of planning data

You can change data in aggregated and detailed views Changes in detailed view also changes the aggregated view Possible to change planning goal in simulation by calling the formula editor You can recalculate the planning goal based on changed data

Visualization

Events and alerts Exceptions Workforce analytics and reporting: Actual vs. planned task time Review performance data across multiple facilities along common metrics

SAP NetWeaver® BI integration Extractors SAP NetWeaver BI content Strategic planning Drill-down visibility

Executed Workload Executed workloads contain: Information about when, what, where, how long, and how much work was planned Actual data: When the work started, when it ended, and who executed it

The system writes executed workloads when it executes an order

Employee Performance Employee Performance A service performs a query and returns KPIs relevant to a particular employee Employees use it to check their efficiency Can view various time periods (daily to monthly)

Employee Performance: Supervisor’s View Supervisor’s View …

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Create Inbound Deliveries based on shipping documents

Expected Goods Receipt

Automate your business processes and react flexibly to changes in your business processes Connect and control an automatic warehouse

Create kits and transfer to stock Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Warehouse Cockpit

eSOA Enablement

Material Flow System Kit-to-Stock RFID Enablement

Create Outbound Delivery manually

Warehouse Cockpit Intended for Supervisor and Warehouse Manager Monitors team performance Monitors the performance of areas or the whole warehouse At-a-glance view of several key figures enables you to react to critical situations quickly

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Create Inbound Deliveries based on shipping documents

Expected Goods Receipt

Automate your business processes and react flexibly to changes in your business processes Connect and control an automatic warehouse

Create kits and transfer to stock Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Warehouse Cockpit

eSOA Enablement

Material Flow System Kit-to-Stock RFID Enablement

Create Outbound Delivery manually

GR Process Based on Expected Goods Receipt (EGR)

New

Daily list of expected deliveries

Report on Expected Goods Receipt (EGR)/ Planned DeIivery

Gate check-in New

Goods receipt (GR) preparation Door assignment

Compare delivery papers – system a) EGR Planned Delivery b) Assign Planned Deliveries to Transport Unit

New

Physical GR Release Door

Compare physical goods – system Identify Planned Delivery items

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Create Inbound Deliveries based on shipping documents

Expected Goods Receipt

Automate your business processes and react flexibly to changes in your business processes Connect and control an automatic warehouse

Create kits and transfer to stock Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Warehouse Cockpit

eSOA Enablement

Material Flow System Kit-to-Stock RFID Enablement

Create Outbound Delivery manually

eSOA Enablement

Warehouse/Yard Organizational Data Inbound/Outbound Delivery Dock Appointments Transportation Unit Appointments Vehicle Appointments

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Create Inbound Deliveries based on shipping documents

Expected Goods Receipt

Automate your business processes and react flexibly to changes in your business processes Connect and control an automatic warehouse

Create kits and transfer to stock Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Warehouse Cockpit

eSOA Enablement

Material Flow System Kit-to-Stock RFID Enablement

Create Outbound Delivery manually

MFS Variants

EWM 5.1

Stock

SAP ERP

Warehouse Management

3rd Pty. WHS

SAP ERP

SAP ERP

SAP ERP

SAP WM

SAP WM

SAP EWM

SAP TRM Material Flow

Machine Control

3rd Pty. MFS

PLC

3rd Pty. MFS

PLC

3rd Pty. MFS RFC Adaptor

RFC Adaptor

PLC

PLC

EWM Controls Movement Steps Aisle 1

Aisle 2

EWM

Interim Destination

Final Dest.

b) Task HU 1 From CP01 To CP02 1

a) ScannerMessage HU 1 at CP01

Scanner CP01 CP02

PLC

Scanner read

Move

TCAR

EWM Controls Movement Steps Aisle 1

Aisle 2

EWM Final Dest.

Interim Dest. Warehouse Task

Task confirmation

CP11 1

CP02

Scanner CP02

PLC Sensors

Drives TCAR and Conveyors

TCAR

EWM Controls Movement Steps Aisle 1

EWM

Final Dest

Interim Dest Warehouse Task CP12 1

Task Confirmation

CP11

CP11

Scanner TCAR

PLC Sensors

Drives Conveyors

Aisle 2

EWM Controls Movement Steps Aisle 1

EWM Final Dest. Final task confirmation

Warehouse Task to Rack Feeder Bin 1

CP12

CP12

Task Confirmation Drives Rack Feeder

PLC (for Rack Feeder)

PLC (for conveyors) Sensors

Aisle 2

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Create Inbound Deliveries based on shipping documents

Expected Goods Receipt

Automate your business processes and react flexibly to changes in your business processes Connect and control an automatic warehouse

Create kits and transfer to stock Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Warehouse Cockpit

eSOA Enablement

Material Flow System Kit-to-Stock RFID Enablement

Create Outbound Delivery manually

Kit-to-Stock

Kit to Stock (Kit to Order supported in 5.0)

Use ERP Bill of Material & Production Order Use VAS completely in EWM Dismantle Kits Streamlined Kit Creation process

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Create Inbound Deliveries based on shipping documents

Expected Goods Receipt

Automate your business processes and react flexibly to changes in your business processes Connect and control an automatic warehouse

Create kits and transfer to stock Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Warehouse Cockpit

eSOA Enablement

Material Flow System Kit-to-Stock RFID Enablement

Create Outbound Delivery manually

RFID enabled EWM Unload

Confirmation Tag of Warehouse Comissioning Task

Set unload status, confirm WT (with resource user) and post GR based on ASN

Packing

Loading

Confirm WT incl. resource, e.g.: - internal stock transfer - change batch no - stock level change

Attach boxes/ items to Handling Unit, set status to packed

Update HU and send ASN

RFID Enabled Inbound Process in EWM Inbound Delivery

ASN

1. ASN enriched with EPCs is received

2. Inbound Delivery is automatically created based on ASN

ERP

RFID Unload

GR Posting

4. A worker moves the HU through a gate with RFID reader devices. AII recognizes the movement, scans the RFID tag and the information is sent to EWM. In EWM the HU unloading status is updated.

5. Automatic GR posting is done with unloading.

AII 3. EPC enriched HU Info is passed to EWM

EWM

RFID Putaway

6. The confirmation of HU-WT can be done automatically if the destination bin has a stationary reader. Analog unloading the HU identification (decoded from EPC code) is sent to EWM and the WT is confirmed

RFID enabled Internal Warehouse Moves in EWM

WH Move

a) Warehouse Worker Scans source bin with barcode – scans RFID HUs and confirms with barcode destination bin b) Warehouse worker scans EPC identified source bin, EPC HU and confirms to EPC identified destination Bin c) Warehouse worker scans EPC HU and moves EPC HU thru an RFID reader marking exit and entry zones

AII EWM

RFID Enabled Outbound Processing in EWM Pick

Not supported with RFID

ERP

RFID Tag Commissioning

1. Commission RFID Tags

RFID Pack

2. After physical (re-)packing, creating new HUs in EWM and labeling all HUs, the worker uses an RFID scanner (puts the HU on a conveyor belt with a stationary RFID reader) to update EWM with the new HU hierarchy.

RFID Load

3. Worker uses a special RFID loading UI. He begins to load the truck with moving the HUs through an RFID gate. All HUs are identified and loaded via RFID. He gets a list with all affected outbound deliveries, can do manual corrections or can trigger the GI posting after finishing physical loading. Sending outbound delivery order incl. necessary EPC information to ERP

AII EWM

GI

ASN

4. GI is posted and EPC enriched ASN is sent

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Create Inbound Deliveries based on shipping documents

Expected Goods Receipt

Automate your business processes and react flexibly to changes in your business processes Connect and control an automatic warehouse

Create kits and transfer to stock Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Warehouse Cockpit

eSOA Enablement

Material Flow System Kit-to-Stock RFID Enablement

Create Outbound Delivery manually

Direct Outbound Delivery Order

Create Outbound Delivery manually in EWM Pickup (direct sale or sell from stock) Account assignment Immediate delivery Scrapping

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

Easy Graphics Framework

Mapping for EGF

Data preparation and functionality

Graphical Representa tion of Warehouse

Other technology For next release

Mapping

Back end (already existing Core functions)

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

Three New Enhancements

EWM will be enhanced in the following areas: Resource management to improve optimization Cross-docking to improve process flows across the warehouse and to provide retailers with efficient distribution methods to move merchandise through the warehouse for preparation before final shipment to customers or stores Production supply to provide integration for manufacturing orders, whether production orders or process orders

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

2

Outbound

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

Combination

Resource Types

1

ZN04

1

1 x Picker; 1 x Simple Forklift

2

4 x Pickers

1

2 x Pickers; 1 x Simple Forklift

2

5 x Pickers

2

ZN06

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

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 Run Collective PO

Receive Purchase Order

EWM

Plan Allocation Handling Unit (HU) -Ultimate consignee for HU

Create Purchase Order Inbound delivery

Send ASN/ inbound delivery

Create ASN/ inbound delivery

Create “planned” outbound delivery

Distribution Data

CD: Cross-Docking

-Ultimate consignee for HU -CD processing method - Item type - Difference indicator - PO number/item

Outbound delivery -PO number/item -CD processing method - Item type - Difference indicator

Inbound delivery -CD processing method -PO number/item -Item type -Warehouse process type -Stock type

Outbound delivery -PO number/item - Item type - Warehouse process type -CD processing method - Stock type

Example 1: Retail Cross-Docking: CustomerSpecific Pre-Packed Mixed HU Goods Receipt

Door

UC1

UC1 Mat A Mat B

Mat A Mat B

Active HU Warehouse Task (WT) Active Material Pick WT Inactive Material Pick WT Deconsolidation *UC1: Ultimate Consignee1

Inb.Del.Ref. Deleted

UC1 Mat A Mat B

Door

UC1 Mat A Mat B

Goods Issue

Final Storage Type

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 Store1 Material

1

Material 2 Store1

Outb-2 Store1

10

10

10

Material 3

10 10

10

Store2

Outb-3 Store2 10

10

STAG AREA1

DOOR1

Material 3 Material 2

10 10

10

STAG AREA2

Store3 10

DOOR2

Outb-4 Store3 Material 3

Store4

10 10

Outb-5 Store4

10 10

10

Material 1

CD Storage Type Pick by (all) customer to distribute the products to the intermediate bins = Warehouse Order (WO) 1 = WO 2 = WO 3 = WO 4

Material 2

Pick by customer, limit to number of staging areas (here 2) = WO 1 = WO 2

Merchandise Distribution-Flow Through: Distribution by Article (n:m Relationship) Outb-1 Store1 MAT1 MAT2

Outb-2 Store1

Store1

MAT3 10

10

10

Outb-3 Store2 10

10

Store2 10

10

10

Store3 10

10

MAT3

STAG AREA1

DOOR1

STAG AREA2

DOOR2

MAT2

Outb-4 Store3 MAT3

10

Outb-5 Store3 MAT1 Store4

10 10

10 10

10

Outb-6 Store4

CD Storage Type

MAT1 MAT2

Putaway by product to distribute the products to the intermediate bins = WO 1 = WO 2 = WO 3

Pick by customer, limit to number of staging areas (two here) = WO 1 = WO 2

Merchandise Distribution-Flow Through: Delivery Adjustment Underdelivery: (only 20 delivered instead of 30)

Inb-1

Outb-1 CUST1 PO-47-10

Item10 PO-47-10

10

QTY = 15

10

10

10

Start delivery adjustment after GR is complete

PO-47-20

Fairshare: Reduce 15 to 10

Item20 QTY = 10

for each customer

Inb-2

Outb-2 CUST2

PO-47-20

Item10 10 10

10

10

CD Storage Type

PO-47-10

QTY= 15 Item20 QTY=10

PO-47-20

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 Area IB

IB

Counting Station

IB

CUST_Inb

VAS Station Inbound

IB

IB

Inbound Delivery

Active HU WT (Warehouse Task) Active Material Pick WT Inactive Material Pick WT

Final Storage Type

Outbound Delivery

CUST_Outb OUT

OUT

Staging Area

OUT

Packing Station Outbound

OUT

VAS Station Outbound

OUT

Example: Opportunistic Cross-Docking (Homogeneous Handling Unit) — Outbound Goods Receipt Area IB

IB

Counting Station

IB

Inbound Delivery

Active HU WT (Handling Unit Warehouse Task) Active Material Pick WT

Final Storage Type

Outbound Delivery

OUT

OUT

Staging Area

OUT

Packing Station Outbound

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

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

AGENDA 1.

Introduction & Roadmap

2.

Detailed Overview

3. Upcoming Functionality in EWM 7.01 Preliminary plan - subject to change

4.

Summary

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.

EWM 7.01 Transportation Integration LE-TRAEWM

Benefit for the customer:

Planned, in specification, subject to change

Out of the box integration Up to now done as part of the implementation project 2 pre defined scenarios easy to implement Allows integration of external transportation planning system Allows usage freight cost calculation in ERP

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

Scope of SAP EWM — Transportation Integration Planned, in specification, subject to change

Transportation Management Planning by means of SAP ERP Transportation drives warehouse processing of SAP EWM

SAP EWM Warehouse Execution shall notify SAP ERP Transportation about execution of planned transports (TU activities) in order to allow follow-up actions (e.g., freight cost calculation, follow-up transport planning for complex multi-step transports.)

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

Scope of SAP EWM — Transportation Integration (cont.) Planned, in specification, subject to change

Transportation Management Planning by means of an external transportation management system drives warehouse processing in SAP EWM

SAP EWM Warehouse Execution notifies external transportation management system about execution of planned transports (TU activities) in order to allow follow-up actions (e.g., freight cost calculation, follow-up transport planning for complex multi-step transports.)

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

EWM 7.01 Returns Handling Enhancements Visibility of Damage or loss of goods within an internal

Planned, in specification, network subject to change

Trigger follow up process from warehouse to ensure financial corrections Adjustments (pricing, quantity, returns, scrapping) enabled across company codes and countries Improved visibility of inventory across network locations and minimized time required for correction postings

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

Reverse Logistics Flow Internal Logistics Network Enhancements Planned, in specification, subject to change

Enhancements

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

Internal Logistics Networks Additional Item Discrepancy Process

Planned, in specification, Wrong Items Return Process subject to change

STO rSTO CC1 CC1

CC2

CC2

Handle Additional Items in Stock Transfer Orders

Return wrong items via Returns-STO

Intra-/Intercompany Case

Initiate rSTO from EWM

Subsequent STO creation initiated from EWM in receiving location

Perform Quality check in receiving location

Intra-/Intercompany Returns

Financial clearance based on quality check results

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

AGENDA 1.

Introduction & Roadmap

2.

Detailed Overview

3.

Upcoming Functionality in EWM 7.01

4.

Summary

Resources

Roll Out Map 2008 SAP SCM Roll-out Map 2008 Learning Map https://websmp203.sapag.de/~form/sapnet?_SHORTKEY=01100035870000672242&_SCENARIO=0110003587000000020 2&

Online Help (http://help.sap.com/) Select Documentation SAP Business Suite SAP Supply Chain Management 7.0 (select language) SAP Extended Warehouse Management (SAP EWM)

SAP SCM

SCM Portal (http://service.sap.com/scm *) Choose Warehousing

IDES: Quick Link: /ides

Resources specific to EWM 7.01 will be available at a later date.

Thank you!

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