sap ewm material flow system

integrate i ntegrated: d: SDirectly hort ho rt P resent rese nta ati tion on Tcon itle it lection w ith warehouse warehouse automation automation and producti on conne nection SAP EWM / MFS Speaker’s Name/Department (delete if not needed) Frank rank00, Wisniewski, Wisniew Logistics + IT Month 2011 ski, IGZ Logistics 17.05.2011

 Agen  Ag end da



Company Company i ntroduction



Initial situat situation ion



Solution finding



Implementation SAP EWM/MFS



Integration results



Conclusion project progr progress ession ion

© 2011 SAP AG. All rights reserved.

2

herist he risto o AG



E stablished stablishedapp approx roxim imat ately ely 10 100 0 year years s ago



F amily amily-ru -run n compan company y in the food indust industry ry



F our our stra strattegic egic busine business ss areas areas 

The Stockmeyer Group : meat meat processing processing



fine food alliance lliance:: delicatessen

and conve convenie nience nce foods foods 

saturn saturn pe petfood: tfood: pet pet food food



conSup conSup conve convenie nient nt supp supplie lies: s: international trading



Approx Approxim imat ately ely 1.6 billion billion euros euros in group group sales (200 (2009) 9) of which saturn saturn pet petfood gener generat ated ed approx approx.. 460 460 millio million n euros euros



Approxim Approximat ately ely 3.600 3.600 employ employees ees within ithin heristo heristo AG

© 2011 SAP AG. All rights reserved.

3

Pre rese sence nce saturn saturn pe petfood tfood in Europe Europe

represent establishing

© 2011 SAP AG. All rights reserved.

4

Key Figures: Figur es: Scale and Range Range of Supply Sup ply



 Tot  Total al number of produ oducts: cts: 1,33 ,335 

Anim Animal grou groups ps:: pets ets - dogs ogs and and cat cats



Categories: private label, premium, standard



Wet food, food, dry dry food, food, snacks and bakery bakery produ product cts s



Deliv Delivery notes notes processed processed per per year: year: 38,10 38,100 0



Averag Average e num number ber of pallet pallets: s: 21 Euro storag storage e positions positions per per deliv delivery ery



EDI rate: > 40 %

© 2011 SAP AG. All rights reserved.

5

Locations Loca tions sa saturn turn pe petfood tfood

saturn, petfood, Hattem (NL)

Hattem

Bremen

saturn petfood, Breme Bremen n Nettetal

bosch saturn, Nettetal Nettetal ,

bosch Tie Tiernah rnahrung, rung, Blaufe Blaufelden lden

Blaufelden Wet p et et f oo oo d

© 2011 SAP AG. All rights reserved.

Dr y

6

Own logist logistics ics subsid subsidia iary ry:: se serv rv..io

gmbh: Esta stablish blishe ed Ja Janua nuary ry 2004

© 2011 SAP AG. All rights reserved.

7

Dienstleistunge Die nstleistungen n serv serv..io



Warehouse arehous e management Warehouse structure, structure, stock s tock managem management ent,, control control of stock movement movements, s, inventories inventories



Goo oods ds rece receip iptt and go good ods s issu is sue e proc proce esse ss es fo forr fini finish she ed go good ods s Goods receip receiptt / goods goods issue posti posting ng,, put putaway away / stock rem remov oval, al, picking picking,, process process suppo support rt by conne connect cting ing external external systems systems



Plann lanning ing and mon monito itorin ring g pickin picking g and pa packi cking ng PACK PA CK services services (produ (product ct range range creation, creation, controlled controlled stacking) stacking),, rough rough workload workload forecast, forecast, Warehouse Warehouse Activi Activitty Monit Monitor or and and cont control of fully fully-aut -automat omatic ic high-r high-rack ack storag storage e areas areas



Inte ntegra gration tion of/ of/conne connecting cting with sa saturn turn syste systems HU (handling (handling unit) unit) managem anagement ent,, batch batch managem anagement ent,, interfa interfaces ces to service service provid providers ers and sales/produ sales /production ction planning, planning, production production,, quality quality managem management ent



Transportation processing  Tran  Transp spor orttation ion plan lanning ing / imp implem lement entation ion, calc calcu ulat lation ion / billi illin ng of frei freig ght cost costs s

© 2011 SAP AG. All rights reserved.

8

 Agen  Ag end da



Company introduction



Initial situation



Solution finding



Imple Im plem men enttat ation ion SAP E WM/MF WM/MFS S



Integration results



Concl onclusion usion pr project ojectpr progr ogression ession

© 2011 SAP AG. All rights reserved.

9

Key Figures Figur es for High-R High-Rack ack Storage Stor age Area Areas s



Storage positi ons: 20,0 20,000 00 pallets



Rack Rack aisles: 6



Rack Rack f eeders: eeders: 6



Interleavings: 6 x 29 = 174 174 pallets/hour 



L x B x H: 145 m x 26 m x 26.5 m



Employees: - serv.io: serv.io: 2 21 1 - exter external nal service service providers: providers: 12 120 0



Ø Ware Warehouse house fill level: level: 86 86% %



Stock turnover: 90% / calendar week



Ø Pal Pallet let retention retention time time:: 8 days days

© 2011 SAP AG. All rights reserved.

10

Key Figures Figur es for High-R High-Rack ack Storage Stor age Area Areas s



Goods Go ods receipt receipt 

Up to 2,700 2,700 pallet pallets s per per day day from from prod product uction ion



Up to 300 pal palle letts per day day from froma a conventional conventional transport transport





Loading 

Up to 70 tours ours per per day day (shuttle (shuttle & convent conventional) ional)



Up to 2,800 2,800 pallet pallets s per per day

Packing 

Ø 1,800 pallet pallets s per day day

© 2011 SAP AG. All rights reserved.

11

Need Ne ed for Action Acti on

Decision: Imple mpleme menta ntation tion of SA SAP P ER ERP 6.0 at at sa saturn turn pe petfood tfood in 20 2010 

Because Because the “legacy system” system” was replaced by SAP SA P E RP, a replacement solution solution for stock management and controlling picking and packing was required.



It was necessary necess ary to to connect connect the the IT sub-system sub-s ystems s for warehouse warehouse management anagement and mat material erial flow flow control control to to SAP S AP ER P (interf (interfaces). aces).



Existing potent potential ial for optimis optimisation ation in the high-rack storag storage e and packing packing areas should be realised.



Medium-term planning for handling third-party customers at serv.io requires new functions.



At satur saturn, n, the serv.io serv.io logistics processes process es should be integrat integrated ed at the the sam same e time time as the implementation of the SAP ERP system (project risk).

© 2011 SAP AG. All rights reserved.

12

Project Goals



Align/ Align/in inttegra egratte the system systemlan landsca dscape pe based based on SAP S AP



Reduc Reduce e imp implem lement entatio ation n risks isks (SAP log logistics istics sy syst stem ems s befor efore e SAP ERP ER P )



R educe educe int interfa erfaces ces and and sub-syst sub-system ems s



R educe educe maintena aintenance nce effor effortt / costs costs



Suppor upportt value-add alue-added ed processes processes (pickin (picking g and packin packing) g)



 Tran  Transp spor orttatio ation n plann anning ing (if necessa cessarry, also also for oth other su sub bsid sidiarie aries s of heristo sto AG)



Creat reate e prer prereq equisit uisites es for fut future ure third-p hird-part arty y custom customer er business business



Optim Optimise ise mater aterial ial flow flows s by means eans of impr improv oved ed IT suppo support rt 

Stock rem remov oval al from from prod produc ucttion / put putaway away (HRSA (HRS A strat strateg egies, ies, use of stora storage ge space) space)



P icking icking and packin packing g (produ (product ct range range creat creation ion,, contr controlle olled d stackin stacking, g, repleni replenishm shment ent))

© 2011 SAP AG. All rights reserved.

13

 Agen  Ag end da



Company introduction



Initial situat situation ion



Solution finding



Implementation SAP EWM/MFS



Integration results



Conclusion project progr progress ession ion

© 2011 SAP AG. All rights reserved.

14

Finding a Solution Solution – Procedure (1)

1. Se Selection lection of SAP Spe Special cial Expertise Partner: Partner: IGZ IGZ Logisti cs + IT IT 

E xperi perien ence ce in dist distri ribu buttion (SAP LES LE S /EWM) and and prod produc ucttion (SAP MII/ME)



>100 100 ref refer eren ences ces for for SA SAP P LES L ES and and SA SAP P EWM E WM



>100 100 SAP S AP logistic logistics s specialists specialists



>50 aut automat omatic ic HRS HRS A (high (high-rack -rack storage storage areas) areas) / ASP AS P S A (aut (autom omat atic ic small small part parts stora storage ge areas) areas) in activ active e oper operat ation ion with ith SA SAP PE EWM/LE WM/LES S



No com compet petitor itor produ roduct cts s to SA SAP P EWM and and SAP LES LE S (neu (neuttralit rality y).

© 2011 SAP AG. All rights reserved.

15

Finding a Solution Solution – Procedure (2)

2. Imple mpleme menta ntation tion ana nalysis lysis for the SAP inte integra gration tion options for se serv rv..io (HR (HRSA SA)) 



Carry arry out a feasibilit feasibility y study study and imple implem mentat entation ion analysis analysis 

Assess As sess ACTU AC TUAL AL situat situation ion (struct (structur ures, es, processes processes,, quant quantit ity y struct structur ures) es)



Incorporat Incorporate e new, new, additional additional requirements requirements



Outlay Outlay and time ime planning planning

Creat Create e a rou roug gh targ argetco et con ncep cept for SAP LES LE S and and SAP EWM 

Comp Compare are the alt alterna ernattives ives of SA SAP P LES versu ersus s SAP S AP EWM EW M



E valuat valuation ion matrix atrix of the solution solution varian variantts



Differe Different ntiat iation ion accordin according g to the migrat igration ion phases phases



E xten xtend d the proje project ct teamt eam to inclu include de activ active e skilled skilled perso personn nnel. el.

© 2011 SAP AG. All rights reserved.

16

Finding a Solution Solution – Procedure (3)

3. Crea reate the ba base ses s for a de decisio cision n in fa favou vourr of impleme implementin nting g the project project 

Scope Scope of budg udget



Migrat Migration ion st strategy rategy (big-bang (big-bang versus versus phase concept) concept) 

Migration Migration and go-live in an ongoing ongoing 3-shift operational operational process



P lant lant and and syst system em tests ests exclu exclusive sively ly at week weekend ends s



P roject roject deadl deadline ine scope



Medium Medium-te -term rmbu business siness strat strateg egy y of serv.io  



Exten Extend d wareh warehou ouse se and and shippin shipping g capacit capacities ies  Tak  Take e on further log logist istics ics functio ction ns and and ser services ices

References (system solution, solution, implem implement entation ation partners partners))

. © 2011 SAP AG. All rights reserved.

17

SCE SC E arc archit hitectur ecture e szena szenari rios os Before SAP LES/TRM implementation  Admii ni st  Adm strat rat iv ive e lev level el

GEAC

Packing

GFOS

Warehouse Ware house Manageme Management nt

GFOS

SAP ERP

MM

LES

Ext. LVS

Mater Ma teria iall flow control

Warehouse Wa rehouse technol ogy

© 2011 SAP AG. All rights reserved.

MFR

TRM

SAP EWM/MFS

SAPERP ERP SAP

SAPM MM M

SAP EWM

 S  A P E R P

 S  A P  S   C M

SAP TRM MFS

con co nvey eyor or tec techn hnol olog ogy y / hi high gh ba bay y wa ware reho hous use e

18

Finding a Solution Solution – Decision (1) (1)

Key Ke y Fa Factors ctors in Favo Favour ur of SAP EW EWM 1.

Comp omple lex x int inte eracti raction on of GFOS lega legacy cy syste system m with with con contro troll leve levell Legacy Legacy system system:: Hardly Hardly any any suppor supportt opt options ions from from own own IT depart department ent SA P E EWM: WM: Open plat platform form wit with P LC stand standar ard d int interface erfaces s and and own own IT supp suppor ortt prov provision ision  SAP 

2.

Manua nuall inte interve rventio ntion n requir require ed to synchr synchronis onise e stock stock  

3.

Legacy Legacy syste system m: dupl duplicat icated ed stock stock in ERP and and WMS SAP EWM: EW M: com compreh prehen ensiv sive e assura assuranc nce e that hat stock stock has has been been accur accurat ately ely ent entered ered since since the syst system em is fully integrat integrated ed

Exte xtern rna al su suppo pport rt for co contr ntroll olling ing the the lega legacy cy syste system m is insuf insuffic ficie ient nt Legacy Legacy syste system m: No N o guara guarant nteed eed suppor supportt / rectific rectificat ation ion of P riorit riority y 1 issues issues SA P EWM: E WM: System System suppor supportt prov provid ided ed by own own IT resour resources ces  SAP 

4.

Lack La ck of ha hardwa rdware re compa compatibility tibility Legacy system system:: system system failure failure risks / problem problems sourcing sourcing spare part parts SA P E WM: optim optimum um hardw hardware are compat compatibilit ibility y  SAP 

© 2011 SAP AG. All rights reserved.

19

Finding a Solution Solution – Decision (2) (2)

Key Ke y Fa Factors ctors in Favo Favour ur of SAP EW EWM 5.

Manua nuall tonna tonnage ge che check ck withou withoutt syste system m sup suppo port rt in the the ca case se of th the e lega legacy cy system  

6.

Legacy Legacy syste system m: ove overlo rload ading ing is possible possible and and consequ consequent ently there here are are liabilit liability y risks risks SAP SA P E WM: system system-sup -suppo port rted ed tonnag onnage e check check

Stock transfe transfers rs from HRSA with lega legacy cy syste system m cont control rol not possible possible Legacy Legacy syste system m: stock stock transfer ransfers s would ould have have to be carrie carried d out out by the WMS SA P E WM: prov provid ides es fully fully-aut -automat omatic ic stock stock tran transfer sfer processes processes  SAP 

7.

Furthe urther de deve velopm lopme ent of lega legacy cy syste system m cont control rol not guara guarante ntee ed Legacy Legacy syste system m: furt further her deve develop lopm ment only only if the custom customer er wishes wishes it SA P EWM: EW M: Very Very fut future-pr ure-proof oof and and high high degre degree e of inve investm stmen entt prot protect ection ion  SAP 

© 2011 SAP AG. All rights reserved.

20

 Agen  Ag end da



Company introduction



Initial situat situation ion



Solution finding



Implementati on SAP EWM/MF EWM/MFS S



Integration results



Conclusion project progr progress ession ion

© 2011 SAP AG. All rights reserved.

21

Implementati Impl ementation on of o f SAP EWM EWM / MF MFS S

Phase Conc Conc ept 1st pha phase: se: Ahe Aheadad-of-sche of-schedule dule migration to HRSA HRSA on 01.0 01.04. 4.20 2010 10 

Mini Minim misation of impl implem emen enttation ation risks risks for for phase phase 2

2nd phase: phase: Imple Implementa mentation tion of ERP ERP integration integration on 01 01.1 .11. 1.20 2010 10 

Recou Recourse to exp experie erien nces ces from fromph phase ase 1

3rd pha phase se:: Use of further further SA SAP P functions functions E.g. Transport Transportation ation planning B illin ing g for for serv services ices  E.g. Bill 

© 2011 SAP AG. All rights reserved.

22

Impleme mplementa ntation tion Phase 1 – replacement replace ment LVS / MF MFS S

Before SAP LES/TRM SAP EWM/MFS implementation  Admii ni st  Adm strat rat iv ive e lev level el

Packing

Warehouse Management

Mate Ma teria riall flow control

Warehouse Wa rehouse technol ogy

© 2011 SAP AG. All rights reserved.

GEAC

GEAC

GEAC

GFOS

GFOS

GFOS

GFOS LVS MFR

LES

TRM

SAP EWM SAP TRM MFS

 S  A P  S   C M  /   E R P

con co nvey eyor or tec techn hnol olog ogy y / hi high gh ba bay y wa ware reho hous use e

23

Impleme mplementa ntation tion Phase 2 – replace repl acement ment GE GEAC AC / GF GFOS OS

Before SAP LES/TRM implementation  Admii ni st  Adm strat rat iv ive e lev level el

Packing

Warehouse Management

Mate Ma teria riall flow control

Warehouse Wa rehouse technol ogy

© 2011 SAP AG. All rights reserved.

GEAC

SAP ERP

SAP EWM/MFS

SAPERP ERP SAP

GFOS GFOS LVS MFR

MM

LES

TRM

SAPM MM M

SAP EWM

 S  A P E R P

 S  A P  S   C M  /   E R P

SAP TRM MFS

conve conv eyor te techno chnology logy / high ba bay y wa ware rehous house e

24

Implementati Impl ementation on of o f SAP EWM EWM / MF MFS S

Imple mpleme menta ntation tion of Ph Pha ase 1 

Migra Mig ration tion of HRSA functiona functionality lity to SAP EW EWM/MFS MFS ahe ahea ad of schedule schedule 

Storage torage bin managem management ent and material material flow control control



P utawa utaway y / stock removal removal strat strategies egies



WMS evaluat evaluations ions / statistics statistics



Basis Ba sis for op optim timisi ising ng hig highh-ra rack ck sto stora rage ge area reas in pha phase se 2



Not necessary necessary to adapt GEAC GEAC/G /GFO FOS/ S/PLC PLC interfaces interfaces



Planned go-li ve date: date: 01 01.0 .04. 4.20 2010 10

© 2011 SAP AG. All rights reserved.

25

Implementati Impl ementation on of o f SAP EWM EWM / MF MFS S

Imple mpleme menta ntation tion of Ph Pha ase 2 •

Integration Inte gration of SA SAPP-EW EWM M with SA SAP P ERP ERP (replaceme replacement nt of GFOS GFOS)) • P ick and and pack pack funct functionali ionality ty availa available ble in S AP EWM EW M • Optim Optimisat isation ion of internal ernal mater aterial ial flow by way of more det detailed ailed inform information ation • Greater Greater transp ranspare arency ncy since activ active e movem ovement ents are only only in one one syste system m • Wareh Warehou ouse se proce processes sses for for int interna ernall picki picking ng and and packi packing ng can be compare pared d with ith wareh arehou ouse se proce processes sses for for proce processin ssing g sales sales orde orders rs • No transi ransittional ional IT solut solution requ requir ired ed for for picki picking ng and and pack packin ing g • Futur Future e inde indepe pend nden ence ce from from SAP SA P ERP ER P release release upgr upgrad ades es

•

Planned go-li ve date: date: 01 01.0 .07. 7.20 2010 10

© 2011 SAP AG. All rights reserved.

26

Framework Fra mework Schedule Schedule for SA SAP P EWM EWM

2009

Project ph ase ases s 9 Detailed De tailed concept

Phas e1

Implementation Start-up, tests

10 11 12

2010 1

2

3

4

5

6

7

8

9

10 11 12

SAP EWM implementation in 2 Phase in 8 mont h

Start Sta rt of live operation operation Detaile De tailed d concept

Phas e2

Implementation Tests Start Sta rt of live operation operation

© 2011 SAP AG. All rights reserved.

SAP ERP Go-Li ve!

27

 Agenda



Company introduction



Initial situation



Solution finding



Implementation SAP EWM/MFS



Integration result s



Conclusion projectprogression

© 2011 SAP AG. All rights reserved.

28

Integration Results

Effects of the SAP EWM/MFS Implementation •

End-to-end integration fromthe SAP -ERP level to the PLC level 

•

Internal SAP interfaces tailored exclusively to each other 

•

Cost reduction

Open platform for integrating further functions 

•

Independence, flexibility

Reduction in maintenance costs for application and baseline support 

•

Operational reliability

Middleware or sub-systems can be completely dispensed with 

•

Streamlining of the system architecture

Flexibility, investment protection

Optimised warehouse fill level, maximisation of putaway/stock removal capabilities 

Optimum utilisation of storage plant

© 2011 SAP AG. All rights reserved.

29

 Agenda



Company introduction



Initial situation



Solution finding



Implementation SAP EWM/MFS



Integration results



Conclusion project progression

© 2011 SAP AG. All rights reserved.

30

Lessons Learned

•

Extensive plant and func tional tests before the migration are impor tant (also bul k tests)

•

Elaboration of and trainin g for errors and malfunc tion s as early as the preparation phase

•

Very impor tant to have several days of on-site suppor t in t he run-up to the go-live date

•

Competent consultants required for both “ sides” of the interface (SAP EWM and SAP ERP)

•

For a 3-shift process, a competent and communicative hotline provided by SAP is desirable •

Changing contact staff as a result of global OSS processing can create a long-drawn out and difficult situation if there are operational problems with the system.

© 2011 SAP AG. All rights reserved.

31

Outlook

•

•

Imple mpleme menta ntation tion of SAP SC SCM platform platform (EW (EWM/ M/T TM) for the se service rvice provider provider, serv.io •

Strat Strategic egic SAP plat platfor form m for the logist logistics ics service service prov provid ider er

•

Continu Continuou ous s deve develop lopm ment ent guara guarant nteed eed by SAP SA P

•

High High flexib flexibilit ility y and and indep indepen enden dence ce from from ERP ER P for service service prov provide iderr requi requirem rement ents

Plannin lanning g for Pha hase se 3 •

Mappin Mapping g of transpor ransporttation ation plan plannin ning g with ith SAP SA P TM

•

Carryin Carrying g out service service billin billing g in S AP

•

Implem Implement entat ation ion of plannin planning g functio functions ns

•

Connecting Connecting extern external al custom customers ers

© 2011 SAP AG. All rights reserved.

32

Conclusion Regarding Course of Project

•

•

 The phase concept is the best approach because the different stages are spaced out with a specific timeframe and risks are minimised. Important ! A strong SAP integration partner with several years of SAP EWM/MFS project experience •

Reliability of project budget

•

Adherence to promised deadlines

•

Assurance that goals are achieved from a functional point of view

•

Benefiting from project experience from other SAP EWM/MFS projects (incorporation of implementation ideas in SAP EWM/MFS).

© 2011 SAP AG. All rights reserved.

33

A successfull team for  SAP EWM!

Thank you!

Frank Wisniewsk i IGZ Logisti cs + IT GmbH

© 2011 SAP AG. All rights reserved.

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