SAP Warehouse Management WM Introduction 26125078

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SAP Warehouse Management

(WM): Features, Functions, Best
Practices, and Infrastructure
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Trey Jones
Catalyst International
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2008 Wellesley Information Services. All rights reserved.
Why Are We Here?
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The purpose of this Jumpstart session is to provide you

with an understanding of the tools available in SAP
Warehouse Management outside of just the vanilla setup
so often implemented during the initial go-live
The session will also provide knowledge of different SAP
WM offerings, such as:
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SAP ERP Warehouse Management

Task and Resource Management (TRM)
SAP ERP Extended Warehouse Management (EE 2.0)
SAP SCM Extended Warehouse Management (EWM)
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Tip
1
What Well Cover
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SAP ERP Warehouse Management (WM)

SAP WM Data Collection
Task and Resource Management
SAP ERP Extended Warehouse Management
SAP SCM Extended Warehouse Management
Wrap-up
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What Well Cover: SAP ERP Warehouse Management (WM)
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SAP ERP WM Overview

Stock Placement and Removal
Storage and Handling Units in WM
Cycle Counting
Wave Planning
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SAP WM Terminology
SAP ERP Warehouse Management
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Introduced with EE 1.0 of Release 4.7

Included in SAP ECC 5.0 and SAP ERP 6.0 (and latest version of
SAP NetWeaver)
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Any SAP ERP or SAP ECC release without EE 2.0 (extension

set) activated
Core module of Warehouse Management
SAP WM Task and Resource Management (TRM)
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Yard Management, Cross-Docking, and Value-Added Services

Must be on at least SAP ERP 4.7; included in EE 2.0
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Not part of SAP ECC 5.0 and SAP ERP 6.0

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SAP WM Evolution
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Prior to the release of

SAP ERP Extended
Warehouse
Management (EWM),
SAP had continued
to build on its
original SAP R/3
Warehouse
Functionality with
each release
Major increases in
R/3 releases 4.6C
and 4.7
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Key WM Features
Placement strategies
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Fixed Bin, Near-Fixed Bin, Addition to Stock with Capacity

Checks
Bulk, Storage Unit Type Strategy with Position Codes (/)
Identification Points (Storage Unit Management/Pallet IDs)
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Powerful picking control
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Wave Picking, Group Picking, Two-Step Picking

Two-Step Confirmation
FIFO, LIFO, Large/Small Quantity Strategies commonly used for
Forward Pick Locations
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WM Monitoring Tools
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Warehouse Activity Monitor (WAM), Outbound/Inbound Delivery

Monitor, Wave Picking Monitor
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SAP ERP WM Overview

Cycle Counting
Wave Planning
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Standard SAP WM Strategies
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The following two examples will use the same Master

Data points in combination with Storage Type
configuration settings in Placement and Removal
Strategies
Discussion:
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Capacity Checks
Near-Fixed Bin Picking
Large/Small Picking
Rounding Quantities
RF Queue Management
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Stock Placement Near-Fixed Bin with Capacity
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Combination of strategies:
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Implement Capacity Check 3 for Fixed Bin Storage Type

f Neutral Indicators per Bin and Material
Near-Fixed Bin for Bulk and Rack Type Medias
Together, provide top off functionality in Fwd Pick Bins while
making replenishment process more efficient
Other considerations:
f Palletization data (LE Quantity) from WM2 View (Material
Master View) can help with this process for separate transfer
order (TO) line items per material
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Stock Placement Near-Fixed Bin with Capacity (cont.)
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Maximum Fixed Bin

Quantity of 40 cases
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One pallet is equal to

10 cases
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Current Fixed Bin

Quantity is 34 cases
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Transfer order for 14 cases it will first attempt to

Putaway the pallet quantity of 10 cases and then the
loose 4 cases
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For Line 1, 10 cases, the proposed Destination Bin is the

Reserve Storage Type near the Fixed Picking Bin
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For Line 2, four cases, sufficient capacity is found in the

Fixed Bin and is identified as the Destination Bin
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Stock Removal Large/Small Picking
Large/Small Picking
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Pick Strategy where the source storage bin for picking is

decided upon based upon the size of the order quantity
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Dependent upon Master Data and Search Strategies for

Removal
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Rounding Quantity setting is an option within

configuration at Storage Type level
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Stock Removal Large/Small Picking (cont.)
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Master Data
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Each Pick Area

f Rounding Qty = Not Used
f Control Qty = Case 1 Each
Case Picking Area
f Rounding Qty = Case Quantity
f Control Qty = Pallet 1 Case
Pallet Picking Area
f Rounding Qty = Pallet Quantity
f Control Qty = Not Used
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Where Master Data is:
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Each = < 8
Case = 8 Each
Pallet = 32 Cases
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With the use of Rounding Quantities and Large/Small

Picking, picking line items are pulled from different
Storage Types within a single transfer order
Completely standard functionality
Can be used at multiple levels Cascading Levels
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RF Monitor
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Transaction LRF1
Configurable queues
Drag and drop users in between queues during day
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Key WM Features
Stock Replenishment
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Random Storage Bin Replenishment

Fixed Storage Bin Replenishment
Two required programs run in batch or as SAP transactions:
f RLLNACH1
f RLAUTA10
Upon transfer order confirmation option
f Creates an automatic replenishment TO when a pick
confirmation drives the Fixed Bin location below the
minimum stock level
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Decentralized Warehouse Management
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SAP ERP WM Overview

Cycle Counting
Wave Planning
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Key WM Features
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Tracking by Pallet ID in the warehouse
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Storage Unit Management logical grouping of material to a

unique ID that can be managed as a single entity
f Homogeneous or Mixed Pallets
f Unique at the warehouse level
Handling Unit Management a physical unit that consists of
the packaging materials and the goods contained therein
f Cross-module functionality
f Nesting functionality
f Unique number across the supply chain by packaging
material
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WM Without Storage Unit Management
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Without Storage Unit Management, the bin contains 2

Quants:
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Material A for 200 EA

Material B for 100 EA
Warehouse-unique
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Storage Bin 01-01-01
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MATERIAL
A
100 Ea
MATERIAL
A
100 Ea
MATERIAL
B
50 EA
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MATERIAL
B
50 EA
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WM with Storage Unit Management
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With Storage Unit Management, the bin now contains:
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Four Quants
Two Storage Unit Numbers
Warehouse-unique
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Storage Bin 01-01-01
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MATERIAL
A
100 Ea
MATERIAL
B
50 EA
Storage Unit 12345
MATERIAL
A
100 Ea
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MATERIAL
B
50 EA
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Storage Unit 678910
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Handling Unit Management
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MATERIAL
A
100 Ea
MATERIAL
A
100 Ea
MATERIAL
B
50 EA
Handling Unit 123456789
MATERIAL
B
50 EA
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Handling Unit 1234ABCDE
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MATERIAL
A
100 Ea
MATERIAL
A
100 Ea
MATERIAL
B
50 EA
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MATERIAL
B
50 EA
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MATERIAL
A
100 Ea
MATERIAL
B
50 EA
MATERIAL
A
100 Ea
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MATERIAL
B
50 EA
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Storage Unit and Handling Unit Facts
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Storage Unit Management
Requires the use of SAP WM
Does not require SAP WM
Cannot nest Storage Units
Can nest up to 999,999 levels of HUs

(example: Level 1: Pallet, Level 2: Carton,
Level 3: Each)
Can activate by Storage Type
Can activate by Storage Location
Does not require or include Packaging

Materials
Requires defined Packaging Materials
SAP IMG configuration is not as complex
SAP IMG configuration is more complex
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Storage Unit and Handling Unit Facts (cont.)
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Storage Unit Management
Does not support Serial Number Management

at Bin Level
Supports Serial Number Management at Bin

Level
Only resides within the four walls of the SAP

warehouse
Exists in warehouse along with IM, PP/PI, and

SD
No Master Data
Master Data for packaging instructions and/or

determination
Does not require Packing or Unpacking
Requires Packing or Unpacking if items

change within the HU
Internal and external number ranges

supported up to 20 digits
Internal and external number ranges

supported up to 20 digits
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Pick Handling Units
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Pick Handling Unit (Shipping Units)
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Enables a Handling Unit to be created with reference to the

transfer order versus the outbound delivery
Pick-and-Pass type environments
Internal or External Handling Unit number ranges
Automatic or manual creation of Handling Unit
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SAP ERP WM Overview

Cycle Counting
Wave Planning
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Inventory Options
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Multiple options available with SAP ERP WM
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Continuous Inventory: distribution of a physical inventory

across a period of time, counting per bin
f Continuous Inventory during Putaway
Count performed for the first Putaway into each bin during
a fiscal year
Annual Inventory
Zero Stock Check: inventory performed upon stock removal
when the bin is empty
Cycle Counting: performed at the level of material class
f Following slide shows examples of configuration settings
Cycle Counting at the Quant level
f Commonly used in Mixed Bin environments
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Cycle Counting
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SAP ERP WM Overview

Cycle Counting
Wave Planning
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Wave Planning
Base/Order Picking
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Pick by single delivery

Works well in operations with Low numbers of orders and
Moderate to High numbers of picks per order
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Batch/Multi-Order Picking (Group)
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Multiple orders are grouped into small batches

Works well in operations with Low to High numbers of orders
and Low number of picks per order
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Zone Picking
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Order Picking where the picking areas are subdivided into

individual pick zones
Works well in operations with Moderate to High numbers of
orders and Low to Moderate picks per order
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Wave Planning (cont.)
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Wave Picking
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Variation of Batch and Zone Picking; multiple zones picked at

one time and later sorted and consolidated for final shipment
Works well in operations with Low to High numbers of orders
and Moderate to High picks per order
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SAP offers tools to handle all types of picking methods

Most common methods of manually creating waves are
through Outbound Delivery Monitor
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Wave Planning According to Shipments also available

Create by Delivery or Shipment Group Times
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Deliveries are assigned at the Header Level
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A single delivery cannot be split to two separate waves
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A background batch job is run periodically to create

waves of one or more deliveries. The batch job then
creates transfer orders for picking.
The waves are created based on criteria maintained in
the Load Wave Creation Table
The batch job is scheduled to run every hour
Hazardous and non-hazardous orders are split into two
separate deliveries. The deliveries can be waved
together based on the parameter table.
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In certain situations, the user may need to trigger the

batch job manually
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Use transaction ZTOCREATE: Creates waves and generates

transfer orders for parts shipping points
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The batch job will run as normal using the criteria from
the parameters table
The batch job will also still run at its normally
scheduled time
The following slides show an example of using standard
functionality with a custom front end for wave creation
along with SAPConsole
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Grouping of deliveries and Zone Picking
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1.
Access
transaction
ZTOCREATE.
3.
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Click Execute.
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2.
Access
transaction
ZWAVE.
Warehouse
number is
populated based
on the user profile.
3.
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3.
Click Execute.
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Modify the Date

Created range if
necessary.
System will default
previous working
day through
current working
day.
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All driven off of the printing of the batch sheet

The wave group is a result of the user-defined
requirements for the grouping of deliveries and material
picking characteristics
5.
Click
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4.
Select one or more wave

groups to release by
checking the box.
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Wave Release
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Example of Wave Group Batch Sheet (printed at release)
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Picking by Wave
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1.
From the
Shipping menu,
select 1. Pick
by Zone.
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The Pick by
Wave Group
transaction
appears.
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Picking by Wave (cont.)
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2.
3.
4.
The printer is
defaulted from
the users
profile. The
pick label will
print to this
printer.
Change the
printer, if
necessary.
Enter the wave
group by
scanning field
from the Wave
Group Batch
Sheet.
5.
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If there are
multiple picks
from different
zones, this
screen will
appear. In this
example, there
are picks from
two zones.
Enter a
selection (1-2)
from the list to
pick from that
zone.
Note: This
screen will not
appear if all
picks are from
the same zone.
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Press Enter.
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Picking by Wave (cont.)
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6.
7.
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The transfer order

number, zone,
source bin,
material, quantity,
and unit of
measure for
picking appear.
Enter the bin the
material is being
picked from.
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Press Enter.
8.
Enter the
material that
is being
picked.
9.
Press Enter.
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Wave Monitoring Picking Progress
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11. Click Display open

TOs.
A summary of transfer
orders appears by
status and storage
type. Green indicates
confirmed transfer
orders while red
indicates open transfer
orders.
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In this example:
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83% of the transfer

orders are confirmed
(5 TOs)
10. Select a group with open transfer

orders.
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1 TO is open and is
coming from storage
type VNA, section
005.
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What Well Cover
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Wrap-up
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What Well Cover: SAP WM Data Collection
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Text and Web-Based SAPConsole

Mobile ITS
Mobile Web Dynpro
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Data Collection History with SAP
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Hardware Advancement
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Web-Based
SAPConsole/
Mobile ITS
Real Time
Mobile
Web Dynpro
Mobile
Infrastructure
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Character-Based
Store and Forward
Third-Party
Interface
Near Real Time
Character-Based
SAPConsole
Real Time
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Operational/Software Advancement
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SAPConsole
A core component of the SAP Logistics Execution

System
A powerful native SAP translation engine that puts the
power of SAP into the hands of mobile workers
Core components include:
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SAPConsole Translation Engine (SAPGUI)

RF Monitoring Tool
SAP Administrator
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Capabilities
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Allows shop floor or non-desktop-based SAP users to interact

with SAP in a real-time environment via a task-based
manner
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SAPConsole (cont.)
SAPConsole is essentially a translator
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Sits between a telnet client (e.g., an RF device) and R/3

Telnet handles the communication between the RF devices and
a telnet server
Sits on the same box as the telnet server
Translates commands from the RF device to R/3 commands
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Telnet
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Stands for telecommunications network

Extremely efficient, stable, character-based protocol for clientserver communication (since 1983)
Part of the TCP/IP suite of protocols
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SAPConsole Architecture
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SAP System
Application
SAPConsole
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Telnet
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Web-based
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Presentation Server
Windows NT/2000/2003/XP
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Ethernet
RF devices with
telnet session
(remote connection)
to telnet server
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802.11b/g Access
Point
VT 220
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Access Point: routes connection

through telnet: can hold a connection to
host even if RF device is offline
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SAPConsole
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Mature product
SAP will continue to support text-based SAPConsole!
Key features:
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Configurable menu paths

Applications identifiers
Bell signals
Supports delimiters
Remapping of function keys
Supports multiple barcode formats
Load balancing through telnet software
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_________________________________

Mobile ITS
Mobile Web Dynpro
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Internet Transaction Server Mobile (ITSMobile)
What is ITSMobile?
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Based on the ITS template technique, which states that an

HTML template for the browser is provided for each application
dynpro
Conversion of Web Dynpro for ABAP to HTML screens
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System requirements
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Integrated ITS
640: Kernel Patch 161, SAP Basis Support Package: 20
700: Kernel Patch 88, SAP Basis Support Package: 11
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Through SAP NetWeaver, ITSMobile will be used to

generate HTML code for typical 16x20 and 8x40 screens
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ITSMobile
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Steps to an executable template:
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Generate HTML code for LM or ZLM transactions

Create an Internet Communication Framework (ICF) service that
can be used to call up these templates via HTTP
Adjust templates manually if required for a better look or feel
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Mobile ITS
Mobile Web Dynpro
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Mobile Web Dynpro
Web Dynpro is a Java- or ABAP-based User Interface

(UI) application for SAP
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It uses SAPs Web Application Server (WAS) to allow for direct,

online access to Web Dynpro applications
Only Java Web Dynpro currently supports mobile devices
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Any Java developer will have the skill set necessary to

develop these transactions
The largest benefit of Web Dynpro applications is that
they are developed through the SAP NetWeaver
Development Studio, which allows you to quickly create
advanced browser-based UIs for desktop and mobile use
You can add/change colors, fonts, etc.
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Mobile Web Dynpro (cont.)

Internet Mobile Web Dynpro
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Mobile Web Dynpro
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What Well Cover
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Wrap-up
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Task and Resource Management (TRM)
TRM requirements
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Release with EE 1.1 of SAP 4.7

Resides in LES suite of SAP ERP
SAP WM must be activated for TRM
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Additional functionality:
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Three-dimensional warehouse
Subdivides WM transfer orders into tasks
f Seamless integration between WM and TRM
Handles complex material handling operations and complex
warehouse environments
Understands limitations of resources and workloads
Integration with RF devices and native SAPConsole
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TRM Landscape
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Warehouse Management System (WM)

Inbound / Outbound Delivery
Transfer Order
Inventory Document
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Controls storage bins

Controls goods
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SAP LES
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Task & Resource Management

(TRM)
Task Creation
Task Selection and Submission
Task Confirmation
Exception Handling
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Guided from LES

Controls Resources
Communicates Instructions
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Worker & Equipment Interface
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RF
Terminal
RF
Terminal
RF
Terminal
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TRM Overview
So, what does TRM really mean?
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Bin XYZ coordinates

Interleaving
Mechanization/automation integration
Pick and Drop (P&D) locations (High Bay, N/A Storage)
Handling Units
Bundling tasks
Pick-and-Pass
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What drives a client to TRM?
ROI from automated task assignment

Interleaving
Complex process (multi-step, clustering)
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TRM
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TRM How It Works
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Resources
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Define properties of
equipment and
resource
Assign capabilities and
allowed activities
Assign prioritization
assignments
Resource evaluated
with availability,
location, task status,
and current load
content
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TRM
Site map management
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Bins (storage bin, work center, P&D)

Grouping of locations
Define routes with properties (length, duration, priority)
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Two components
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Bin Management
Route Management
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TRM Monitor
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Traditional WM vs. TRM
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Take a Break!
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What Well Cover
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Wrap-up
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Key EWM Features
SAP ERP Extended Warehouse Management (ERP EWM)
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Cross-Docking (ERP EWM)

f Management of inbound and outbound movements
f System-generated decisions
Yard Management (ERP EWM)
f Appointment scheduling, check in and check out,
assignment of dock doors, loading/unloading activities
Value-Added Services
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Dynamic Cycle Counting (DCC)
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This is not a piece of EWM, but in same extension set!

Any location can be counted at any point in time
Allows for counting inactive inventory documents
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What Well Cover: ERP Extended Warehouse Management
Cross-Docking
Yard Management (YM)
_________________________________
_________________________________
_________________________________
Drag and Drop Scheduling Tool
_________________________________
Dynamic Cycle Counting
_________________________________
Not a Piece of EWM, but Part of EE 2.0
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
69
What Is Cross-Docking?
Distribution method in which the goods flow in an

unbroken sequence from receiving to shipping
(dispatching), thus eliminating storage. Also called flowthrough distribution.
_________________________________
_________________________________
_________________________________
_________________________________
Source: The Business Dictionary
_________________________________
Cross-docking is the practice in logistics of unloading

materials from an incoming vehicle and loading these
materials in outbound vehicles with little or no storage in
between.
Source: Wikipedia.com
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
70
Planned Cross-Docking
_________________________________
A decision that establishes a link between a Planning

document and Candidate document prior to the actual
arrival of incoming stock and release of an outbound
delivery or requirement
_________________________________
_________________________________
_________________________________
Manual by Warehouse Manager

Background
One-Step or Two-Step Cross-Docking
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
71
Opportunistic Cross-Docking
_________________________________
The system automatically designates a document or item

for cross-docking after arrival of incoming stock of an
outbound delivery or requirement
A prerequisite is an open picking or putaway transfer
order
Does not override existing decisions, but will cancel
open TOs
With standard, only works in the form of one-step
docking
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
72
Goals of Cross-Docking
Enable planned and opportunistic cross-docking

Provide user-friendly interface for cross-dock planning
and monitoring
Evaluate utilization of cross-docking, considering the
following:
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Ensure cross-docking does not contradict warehouse rules

Establish a method of communication between incoming stock
and outgoing demand based on customer requirements and
organizational goals
_________________________________
_________________________________
_________________________________
Enable automatic and manual decision-making modes
_________________________________
_________________________________
73
Cross-Docking Overview
Document types available for possible cross-docking

decisions
_________________________________
_________________________________
_________________________________
Inbound Deliveries
Outbound Deliveries
f Shipments
f Groups
Transfer Requirements
_________________________________
_________________________________
_________________________________
_________________________________
FIFO can be considered through configuration settings
_________________________________
Strict
Duration Settings
_________________________________
_________________________________
74
One-Step Cross-Docking
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
75
Two-Step Cross-Docking
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
76
One-Step or Two-Step?
_________________________________
_________________________________
_________________________________
One Step Cross Docking
_________________________________
_________________________________
Two Step
_________________________________
_________________________________
Release Time
Error
_________________________________
_________________________________
_________________________________
77
Opportunistic Cross-Docking
_________________________________
OPPORTUNISTIC
_________________________________
Putaway Transfer
Order
Qty: 10
_________________________________
Cancelled
Putaway Transfer
Order
Qty 10
Putaway Transfer
Order
Qty: 10
Inbound Delivery
_________________________________
_________________________________
Putaway Transfer
Order
Qty: 10
YES
Outbound Delivery
Qty 10
_________________________________
Pick Transfer
Order
Qty: 10
Source: Inbound
Delivery
_________________________________
Open TO
of Same or >
Qty and
Material?
_________________________________
_________________________________
NO
A New Transfer
Order
Qty: 10
_________________________________
78
Opportunistic Cross-Docking (cont.)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
79
Cross-Docking Monitor
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
80
Cross-Docking Monitor (cont.)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
81
Cross-Docking Monitor (cont.)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
82
Cross-Docking Alert Monitor
_________________________________
Cross-Docking Alert Monitor
_________________________________
Configurable Alerts; examples:

f Deliveries Past Release Time
f Transfer Requirements Past Time
f Cancelled Transfer Orders per Opportunistic Cross-Docking
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
83
Final Thoughts on Cross-Docking
FIFO considerations are configurable

Cross-docking is integrated with SAP Yard Management
System (YMS)
Will not create a decision if the Load Quantity is greater
than the Open Decision Quantity
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Consider a BAdI for full or less-than-full pallet quantities
_________________________________
Does not support Mixed Pallets

Applies to Available Stock only
Customer-specific requirements can be added
_________________________________
_________________________________
_________________________________
Exclude materials
Modify algorithms for optimal cross-docking
_________________________________
84
Cross-Docking
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
85
SAP Yard Management System (YMS)
Built upon the concept of Handling Unit Management

(not required)
_________________________________
_________________________________
_________________________________
Trailers are Handling Unit Managed
Integrated with Transportation, SD, Cross-Docking (CD),

and WM
Appointment scheduling
RF execution-enabled
_________________________________
_________________________________
_________________________________
_________________________________
CHECK-IN
YARD
MOVEMENTS
APPOINTMENT
SCHEDULING
SAP YMS
SHIPMENT
DELIVERY
SAP YMS
UNSEALING
WEIGHING
UNLOADING
_________________________________
LOADING
BLOCK
SEALING
CHECK-OUT
_________________________________
UNBLOCK
SHIPMENT
SHIPMENT
_________________________________
86
Yard Management
_________________________________
Linked to Warehouse Management (WM) in configuration
Can operate in an IM environment with correct degree of

activation with Lean WM
f Normal SD process (no transfer orders)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
87
YM Integration with LES
Transportation Management
_________________________________
Vehicle check-in/check-out and load/unload influence

corresponding shipment statuses and dates
Registration of drivers and equipment
_________________________________
_________________________________
Shipping
_________________________________
_________________________________
Scheduling takes into account ETA against assigned door and

staging area
Vehicle check-in updates door and staging area in the yard as
well as delivery status for ATP depending on settings
_________________________________
_________________________________
Cross-Docking
_________________________________
Considers scheduling in creating cross-docking decisions

Can include yard scheduling
_________________________________
_________________________________
88
YM Capabilities and RF Activities
Moves enabled through

Yard Activities
Check-In/Check-Out
Scheduling
Movements
Weighing
Loading/Unloading
Sealing/Unsealing
_________________________________
RF-enabled, delivered
transactions
_________________________________
_________________________________
Check-In/Check-Out
System-Guided Movements
Manual Movements
Blocking/Unblocking
Loading/Unloading
Sealing/Unsealing
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
89
YM Checkpoint Tool
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
90
YM Yard Monitor
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
91
Appointment Scheduling (YM)
Varies upon Trailer

Types, Delivery Types,
Movements
WM Locations can
influence door
selection
Timing, Delivery Time,
Current Time, and
Availability
_________________________________
Warehouse 001
Material A
Multiple Scheduling
Profiles
_________________________________
_________________________________
_________________________________
Staging Area
_________________________________
_________________________________
Yard Location Group
Relationship
_________________________________
_________________________________
Material A
_________________________________
_________________________________
92
SAP YM: Yard Monitor
_________________________________
_________________________________
SAP Yard Activity Monitor
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP Shipment Document
_________________________________
_________________________________
_________________________________
93
YM Drag and Drop Scheduling Solution
_________________________________
Built within SAP to work with SAP YM

Real-time graphical view of the entire status of the yard
at any time
Key functionality:
_________________________________
_________________________________
_________________________________
Drag and drop task creation

Tree and pictorial representation
Multiple levels of pictorial display
Trailers are color-coded to represent inbound vs. outbound and
complete with gauges for loading status
Pop-up detail when images are clicked
Scheduling monitor
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
94
YM Drag and Drop Tool
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
95
YM Drag and Drop Tool (cont.)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
96
Cross-Docking
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
97
Previous Cycle Counting
_________________________________
An inventory document can only be created if there are no

transfer orders open for the bin/material/Quant
Counting only allowed against an active inventory document
_________________________________
_________________________________
Extension Set 2.0 Cycle Counting
_________________________________
_________________________________
Any location can be counted at any point in time

Allows for counting inactive inventory documents
_________________________________
Dynamic Cycle Counting can only be leveraged if your

warehouse is real time from inbound through outbound
_________________________________
_________________________________
Note: This is not a piece of the EWM License, but is

a part of EE 2.0. This is free functionality!
_________________________________
_________________________________
98
Dynamic Cycle Counting (cont.)
Solution benefits
_________________________________
_________________________________
Allows you to count during all operations and shifts

Can effectively interleave tasks
Allows for automatic clearing of differences
Count by quant on the RF
_________________________________
_________________________________
_________________________________
System leverages existing functionality (one new table)

Leverages same document creation transactions
Count against active and inactive documents
New RF transactions replace old ones
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
99
Settings by Storage Type

If errors on cycle count, it will block the bin from further
picks/puts
Automatic clearing
_________________________________
_________________________________
_________________________________
Always
No differences
_________________________________
Count by Quant
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
100
RF Transactions
_________________________________
_________________________________
System-Guided (LM58)
User-Guided (LM59)
User-Initiated (LM60)
f Creates document
on the fly
_________________________________
_________________________________
_________________________________
_________________________________
With DCC, be leery of

SAP Notes required
for implementation
_________________________________
_________________________________
For ease of use, enable

DCC with upgrade to
SAP ERP 6.0
_________________________________
_________________________________
101
What Well Cover
_________________________________

Wrap-up
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
102
SCM EWM Overview
_________________________________
Fully integrated into SCM suite

A part of the Service Parts Execution (SPE) section of
SAP SCM 5.0
Recommended installation on a separate server
(decentralized), although recently available on a
centralized platform
Connection exists back to SAP ERP 4.6C with Service
Pack 6.0
SAP NetWeaver 7.0 platform
New qRFC technology for interface to ERP system
(combination of BAPI and CIF technology)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
103
SCM EWM Implementations Options
Designed to be
flexible (any size
warehouse,
industry, etc.)
The Standard
Support Pack 6
connection is an
IDoc-based
connection
similar to the
Decentralized
ERP WM
connection
_________________________________
SCM EWM 2006 (5.0) and 2007 (5.1)
EWM Deployment
Option
(Centralized (C) or
Master Data
Transactional Data Decentralized (D))
ERP Release
_________________________________
Custom IDoc
4.0-4.6B Connection
Standard Support
Pack 6.0
Connection
4.6C
Standard Support
Pack 6.0
Connection
4.7
Standard Support
Pack 6.0
ECC 5.0 Connection
ECC 6.0 CIF
Custom IDoc
Connection
_________________________________
_________________________________
_________________________________
Standard Support
Pack 6.0 Connection D
_________________________________
Standard Support
_________________________________
Standard Support
D (EWM 2006)
qRCF
D or C (EWM 2007)
_________________________________
_________________________________
_________________________________
104
Where Is Extended Warehouse Management?
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Source: Brian Carter, EWM Overview, SAP 2007
105
SCM EWM Overview
_________________________________
Most significant changes:
_________________________________
4-digit warehouses, storage types, and storage sections; 18digit bins

TRM functionality embedded into the solution
f Assignment of work can be manual, automatic, or per request
by activity
f Priority weightings
Improved packing specifications from ERP solution for different
processes of warehouse activity
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
106
SCM EWM Overview (cont.)
_________________________________
Most significant changes: (cont.)
Improved standard RF execution with delivered RF wizard for

screen flow
Greater flexibility for process design with standard
configuration
f Example, the introduction of Activity areas. These are logical
groupings of bins for warehouse activities such as picking
and putaway. Allows for complex sorting of bins by area.
Handling Unit Management defined at storage type level
f Can exist with non-Handling Unit items in the same storage
type and bin
f Core functionality around the use of Handling Units
Serial number tracking at the bin level
107
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SCM EWM Inbound Processing
_________________________________
_________________________________
ERP
EWM
_________________________________
_________________________________
_________________________________
Inbound
Delivery
Notification
Inbound
Delivery
_________________________________
(quantity reference)
_________________________________
_________________________________
Goods Receipt
for Inbound
Delivery
Inbound
Delivery
_________________________________
(warehouse request)
_________________________________
108
SCM EWM Inbound Processing (cont.)
New complex putaway strategies
_________________________________
_________________________________
Unloading
Counting
Deconsolidation
Value-Added Services (Packaging)
Putaway
_________________________________
_________________________________
_________________________________
_________________________________
Process-Oriented Storage Control vs. Layout-Oriented

Storage Control
Quality Inspection Engine within EWM
Sample flow:
_________________________________
_________________________________
_________________________________
Slotting Receive ASN Validation and Corrections

Transport Unit Arrival and Management GR Putaway Bin
Determination Unload Deconsolidation Putaway
_________________________________
109
SCM EWM Outbound Processing

ERP
_________________________________
_________________________________
EWM
_________________________________
_________________________________
Unchecked
Delivery
(ERP Processing)
_________________________________
Checked
Delivery
_________________________________
Outbound
Delivery
Request
_________________________________
(quantity reference)
_________________________________
Outbound
Delivery Order
_________________________________
(warehouse request)
_________________________________
Goods Issue
Posting
Outbound
Delivery
(for GI posting back to
ERP)
110
SCM EWM Outbound Processing (cont.)
Wave Planning and Execution
_________________________________
_________________________________
Definition and release at the Delivery Line Item Level

Defined Process Routings for steps such as Picking, VAS,
Packing, Staging, and Loading
SAP-delivered Wave Templates
Automatic, Manual, or Immediate Release
_________________________________
_________________________________
_________________________________
Kitting for Make-to-Order and Make-to-Stock

Delivery Split functionality
Sample flow:
_________________________________
_________________________________
_________________________________
Order Deployment Route Determination Wave

Management Pick Bin Determination Warehouse Orders
Work Assignment Picking Packing Staging
Loading and GI
_________________________________
_________________________________
111
Extended Warehouse Management
_________________________________
RF Framework
_________________________________
RF Wizard
f Tool provided within EWM to custom design RF User
Interface to the clients needs without the use of ABAP
Ability to add and remove fields from screens
Adjust the size of screens
Add fields from outside structures
Adjust the position of fields along with the field size
through Screen Painter
Standard function keys are not displayed on an RF screen
f Direct access through function key
f Shortcuts available through RF command
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
112
RF Screen Enhancement Wizard
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Source: Brian Carter, EWM Overview, SAP 2007
113
SCM EWM Slotting and Rearrangement
Slotting
_________________________________
_________________________________
Process to ensure efficient storage and picking of goods

Determines the optimal putaway parameters such as storage
type, storage section, and bin type
f Can determine a product Fixed Bin
f Considers product data, storage requirement data, and
packaging data
Automatic update of Product Master
Can execute in Simulation
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Subsequent tool for system-guided, warehouse

rearrangement
_________________________________
_________________________________
114
Additional Functionality
_________________________________
Additional functions of SCM EWM 5.0
_________________________________
Yard Management
Cross-Docking (integrated with Transportation)
Transportation Management
GTS (Global Trade Services)
Country of Origin
EH&S (Environmental, Health and Safety)
Value-Added Services
Route Determination
Customer Returns
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
115
Labor Management
_________________________________
Most significant addition with latest version SCM

EWM 2007:
_________________________________
_________________________________
Alert Monitors
f SAP NetWeaver BI Integration
f Actual vs. Planned Time
Key Performance Indicators (KPI)
f Direct and Indirect Time
f Measurement Services (KPI Builder)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
116
Labor Management (cont.)
_________________________________
Most significant addition with latest version SCM

EWM 2007: (cont.)
_________________________________
_________________________________
Planning and Simulation

f Traditional measurements: lines per hour, case per
hour, etc.
f Engineered labor standards: How long should it take to
complete a specific task?
f Operational Planning
Visualization and Communication
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
117
SAP SCM EWM 2007 Functionality
_________________________________
Additional functions of SAP SCM EWM 6.0:
_________________________________
Enhanced Yard Management Solution

Kitting-to-Stock
Batch Management Enhancements
Transportation Integration Enhancements
Catch Weight Support
RFID Enablement
Goods Receipt Optimization
Production Integration Enhancements
Serial Number Search Capability Enhancement
More Robust Material Flow Systems Support
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
118
Why SCM EWM?
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Source: SAP
119
What Well Cover
_________________________________

Wrap-up
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
120
Wheres the Fit?
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
121
Resources
Inventory Operations Consulting L.L.C
_________________________________
_________________________________
Dave Piasecki, Order Picking: Methods and Equipment for

Piece Pick, Case Pick, and Pallet Pick Operations, July 2005,
www.inventoryops.com/order_picking.htm
_________________________________
_________________________________
SAP Help
http://help.sap.com
f SAP R/3 and R/3 Enterprise Choose the correct version of
release Click on the proper language Logistics
Logistics Execution Warehouse Management
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
122
Resources (cont.)
SAP PRESS
_________________________________
_________________________________
Martin Murray, SAP Warehouse Management: Functionality and

Technical Configuration (2006).
_________________________________
EWM Overview
_________________________________
M. Brian Carter, EWM Overview, SAP Labs, 2007.
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
123
7 Key Points to Take Home
_________________________________
SAP Warehouse Management is a powerful, standard

tool when completely configured and utilized in the
warehouse
The use of standard functionality with customized front
or back ends can alleviate development efforts and
future upgrade headaches
SAPConsole is a mature product that will continue to be
supported by SAP
Task and Resource Management provides the ability for
my warehouse to manage both resources and equipment
together at a more detailed level than WM
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
124
7 Key Points to Take Home (cont.)
_________________________________
SAP Yard Management can be activated to extend

warehouse management-type actions beyond the four
walls of the warehouse into my yard
SAP Cross-Docking can reduce material handling costs
in my warehouse by providing seamless, system-guided
direction for cross-dock opportunities
SCM Extended Warehouse Management is the future of
SAP Warehouse Management; however, ERP WM will
continue to be used and supported moving forward
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
125
Your Turn!
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
How to contact me:

Trey Jones
tjones@catalystinternational.com
_________________________________
_________________________________
126
Wellesley Information Services, 990 Washington Street, Suite 308, Dedham, MA 02026
Copyright 2008 Wellesley Information Services. All rights reserved.

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SAP Warehouse Management

2008 Wellesley Information Services. All rights reserved.

Why Are We Here?

The purpose of this Jumpstart session is to provide you

SAP ERP Warehouse Management

What Well Cover

SAP ERP Warehouse Management (WM)

What Well Cover: SAP ERP Warehouse Management (WM)

SAP ERP WM Overview

SAP ERP Warehouse Management

Introduced with EE 1.0 of Release 4.7

SAP ERP Extended Warehouse Management

Any SAP ERP or SAP ECC release without EE 2.0 (extension

SAP WM Task and Resource Management (TRM)

Yard Management, Cross-Docking, and Value-Added Services

SAP SCM Extended Warehouse Management

Not part of SAP ECC 5.0 and SAP ERP 6.0

Prior to the release of

Fixed Bin, Near-Fixed Bin, Addition to Stock with Capacity

Powerful picking control

Wave Picking, Group Picking, Two-Step Picking

Warehouse Activity Monitor (WAM), Outbound/Inbound Delivery

What Well Cover: SAP ERP Warehouse Management (WM)

SAP ERP WM Overview

Standard SAP WM Strategies

The following two examples will use the same Master

Stock Placement Near-Fixed Bin with Capacity

Implement Capacity Check 3 for Fixed Bin Storage Type

Stock Placement Near-Fixed Bin with Capacity (cont.)

Maximum Fixed Bin

One pallet is equal to

Current Fixed Bin

Stock Placement Near-Fixed Bin with Capacity (cont.)

Transfer order for 14 cases it will first attempt to

Stock Placement Near-Fixed Bin with Capacity (cont.)

For Line 1, 10 cases, the proposed Destination Bin is the

Stock Placement Near-Fixed Bin with Capacity (cont.)

For Line 2, four cases, sufficient capacity is found in the

Stock Removal Large/Small Picking

Pick Strategy where the source storage bin for picking is

Dependent upon Master Data and Search Strategies for

Rounding Quantity setting is an option within

Stock Removal Large/Small Picking (cont.)

Each Pick Area

Stock Removal Large/Small Picking (cont.)

Where Master Data is:

With the use of Rounding Quantities and Large/Small

Stock Removal Large/Small Picking (cont.)

Random Storage Bin Replenishment

Decentralized Warehouse Management

What Well Cover: SAP ERP Warehouse Management (WM)

SAP ERP WM Overview

Tracking by Pallet ID in the warehouse

Storage Unit Management logical grouping of material to a

WM Without Storage Unit Management

Without Storage Unit Management, the bin contains 2

Material A for 200 EA

WM with Storage Unit Management

With Storage Unit Management, the bin now contains:

Storage Bin 01-01-01

Storage Unit 678910

Handling Unit Management