SAP EWM Overview

Pankaj Jain
March 2010

Mahindra Satyam 2009

Objectives
Understand the EWM Basics

Landscape overview
EWM Big picture
Warehouse Structure
Inbound Process
Outbond Process
New concepts
Major Enhancements
Other Notable changes
Warehouse Documents

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Landscape overview
De-centralized WMS
Central
ERP

SRM

Fully Integrated
into SCM suite
Installation on a
separate server
possible

WM

IM

E
M

IC
H

CRM

MDM

PL
M

D
P

TR
A

Life Cache

Cross Application Objects (ABA)

Web Application Server 6.xx

SCM
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SN
P

PP
D
S

EWM Big picture Overview of EWM Functions

Inbound Processing

Warehouse Internal Processing

Outbound Processing

Yard Management

Replenishment

Wave Management

ASN Management

Inventory Counting

Transfer Order
creation

Unloading & GR
Deconsolidation
Quality inspection
Putaway loc. Det.
Putaway

Scrap Management
Kitting

Picking Location
determination

Slotting

Bundling

RF Framework

Picking

Rearrangement
Packing
Shipping

Customer Returns

Transportation
Yard Management

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Warehouse Structure
Warehouse number
Storage type

Storage section
Storage bin
Quant

Activity Area
Transportation Unit
Vehicle
Staging area
Door
Resource
Work centre
Packaging specification
Warehouse Product
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Warehouse Structure

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Warehouse Structure
Warehouse number
In EWM, you can manage an entire physical warehouse complex using a single
warehouse number.
Storage type
You can define the individual warehouse facilities or warehouses that make up
the warehouse complex, using their technical, spatial, and organizational
characteristics as storage types.
Storage section
Each storage type is divided into storage sections. All storage bins with specific
common attributes usually belong to one storage section, for example, storage
bins for fast-moving items that are close to the goods issue zone.

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Warehouse Structure

Storage bin
Each storage type and storage section consists of a selection of storage
compartments, that in EWM are called storage bins. The coordinates of the
storage bin tell you the exact position in the warehouse, where goods can be
stored.
Quant
The quant is used for inventory management of a material in a storage bin.

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Warehouse Structure Activity Area

The activity area is a logical grouping of storage bins. It can refer to a storage bin, or
can concatenate bins from several storage types.

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Warehouse Structure Activity Area

AA3 (AA3 = AA1 + AA2)

AA1

AA2

SType ST01

SType ST02

Activity Areas (AA) are logical groups of bins that can be used in different
activities like Picking, Put-away, Physical Inventory.

Activity Areas are used to determine how Warehouse Orders (WO) are created
through Warehouse Order Creation Rules (WOCR).

Activity Areas enables sorting sequences for Bins.

Activity Area is an influencing parameter in determining queues

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Warehouse Structure Transport Unit & Vehicle

Transportation Unit (TU)

The smallest loadable unit of a vehicle that is used to transport goods. The
transportation unit (TU) can be a fixed part of the vehicle.
Vehicle:

A specialization of a particular means of transport. A vehicle can comprise one or

more transportation units
The following shows different transportation units:

Vehicle 1: Semi trailer truck with one transportation unit

Vehicle 2: Truck with cargo area and trailer, in other words, two transportation units

Vehicle 3: Train with four wagons, in other words, four transportation units

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Warehouse Structure Staging Area

Organizational unit that is assigned hierarchically to the warehouse number and

that is used to organize the flow of goods in the warehouse.
Staging areas are used for the interim storage of goods in the warehouse. They are
located in close proximity to the doors assigned to them. You can define staging
areas for different purposes and even simultaneously for multiple purposes:
Goods receipt
Interim storage of unloaded goods until they are put away
Goods issue
Interim storage of picked goods until they are loaded

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Warehouse Structure - Door

Door is a location in the warehouse where the goods arrive at or leave the
warehouse. The door is an organizational unit that you assign to the warehouse
number.
Vehicles and their transportation units (TUs) drive up to the doors of a warehouse
to load or unload goods there. The doors are in close proximity to the relevant
staging areas.

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Warehouse Structure Inbound/Outbound

Staging area/Door

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Warehouse Structure - Resource

Resource:
A resource is an entity representing a user or equipment, which can execute
work in the warehouse.
A resource can logon to a radio frequency (RF) or non-RF environment.
Once the resource is logged on to the system, it can receive work for
execution, and can be tracked and displayed in the warehouse management
monitor.

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Warehouse Structure Work Centre

The work center is a physical unit in the warehouse, in which you can perform
warehouse activities.
You can use the work center in the following processes:

Packing

Deconsolidation

Counting

Quality Inspection

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Warehouse Structure
Packaging Specification:
Packaging specifications are a master data that defines all the necessary packing levels
for a product in order to put away the product or transport it. For a product, a packaging
specification mainly describes in which quantities the product is packed into which
packaging materials in which sequence.
In printed form, a packaging specification is a set of instructions for the employee in the
warehouse. More specifically, the work steps that you enter in a packaging specification
are intended as information for the employee. In this way you can, for example, give the
employee exact instructions as to where to place the label on a box, or how a product
should be stacked onto a pallet.
The system can find packaging specifications during various processes. Processes that
determine packaging specifications often use only parts or specific attributes from the
packaging specification.

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Inbound Process
The inbound process comprises of:
Creation of a Purchase Order, which is sent electronically to the specific
vendor
Vendor sends shipping notification (ASN) prior to actual delivery
Delivery document is created holding ASN data
Physical delivery takes place:
Goods receipt
Putaway of goods
During each process step delivery document is updated with actual
data
Directly involved systems:
ERP: creation of Purchase Order, creation of ASN, distribution of ASN to
EWM
ICH: vendor communication medium via portal
EWM: creation of ASN, receive goods, execute putaway, communicate
goods receipt to ERP
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Rough Communication Concept Inbound Processing

WME

R/3

Delivery

Outbound Queue
Inbound
Queue

WME posts Goods Receipt

Confirmation Message to R/3
Update of Inbound Delivery

qRFC

Messages in R/3
Terminology

Mapping

Inbound

New Delivery
Message Container
Header structure
Item table

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EWM - Inbound Delivery Processing

Inbound delivery notification: Represents the inbound

delivery / ASN from the ERP System. Serves as reference for
quantities.
Inbound delivery: a.k.a. Warehouse request. Serves as the
reference for further processing in EWM.

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Outbound Process
The outbound process comprises of:
Creation of a Sales Order (SO)
Creation of outbound deliveries resulting from SO
Physical delivery takes place:
Pick goods from warehouse
Goods issue
During each process step delivery document is updated with
actual data
Directly involved systems:
CRM: customer communication medium, creation of SO
ERP: creation of outbound deliveries and their distribution to EWM
EWM: creation of outbound deliveries, picking execution,
communicate goods issue to ERP

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Rough Communication Concept Outbound Processing

WME

R/3
Outbond
Delivery

Inbound Queue
Outbound
Queue

Outbond Delivery
Replication to WME

Messages in R/3
Terminology
Mapping

R/3 creates

qRFC

New Delivery

Message Container

Header structure
Item table

Creation of Outbond
Processing Document

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EWM - Outbound Delivery Processing

Outbound delivery: Represents the same data as ERP

checked delivery. Serves as quantity reference for further
processing in EWM
Outbound Delivery Order: a.k.a.Warehouse Request. Is
comparable with ERP Delivery. Alll further picking is based
on ODO.
Final Delivery: Represents the physical GI Quantities that
are posted in EWM. In Export cases this might be created
before the GI posting in EWM. In other cases it will
automatically be created with the GI Posting for the ODO in
EWM.

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New concepts and Major enhancement

Apart from new functionalities, all existing WM

functions like picking, packing, shipping, put-away,
inventory, RF, Route determination, Transportation
management, cross docking etc., are enhanced
and/or re-designed in EWM

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New concepts and Major enhancements

YARD MANAGEMENT
VAS (VALUE ADDED SERVICES)
ROUTE DETERMINATION

WAVE MANAGEMENT
WAREHOUSE ORDER
INTERNAL ROUTING FOR INBOUND AND OUTBOUND PROCESS
DE-CONSOLIDATION
SLOTTING
RE-ARRANGEMENT
EXCEPTION HANDLING
RE-USABLE LABEL ACROSS THE NETWORK
WAREHOUSE MONITOR
CONSOLIDATION GROUP

ALERT MONITOR
MESSAGE LOG
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Yard Management
Yard Management

Yard Location
Management
Truck

Physical / Geographical
Location

Yard Stock
Visibility

Yard Movements
Various movements

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VAS Value Added Services

VAS Value Added Services

Packing, Kitting etc.

Delivery X
Item 10
Pyramid 3 pc

Packspec PS1
Level 1 Preservation
Level 2 Unit Containment

VAS Order VO1

Activity 1 Workcen AP01
VAS item Pyramid 3 pc
VAS auxpro Oil
Activity 2 workcen AP02
VAS item Pyramid 3 pc
VAS auxprod Box 3 pc
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Route and Wave (outbound Process)

WR 100
WR line 10

Route A

Pick Area 1

WR line 20
WR line 20

Pick Area 2

WR line 10

Pick Area 2

Wave A

WR 200
WR line 20

Route B

WR line 30
WR line 40

Pick Area 3

Wave B

Pick Area 4

WR 300
WR line 10

Route C

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Pick Area 2

Wave C

Internal Routing (Outbound Process)

WO 1

Internal Routing
Following are the possible steps in the outbound
process

TO
W
W
W
W
HR
HR
HR
111HR
1

PICK

PICK
PACK
STAGE
LOAD

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WO 2
TO
W
W
W
W
HR
HR
HR
111HR
1

WO n
TO
W
W
W
W
HR
HR
HR
111HR
1

PICK

PACK

STAGE

STAGE

LOAD

LOAD

Internal Routing (Outbound Process)

PICKING

PACKING

STAGING LOADING

Pick-HU
Packing Work center

Ship Staging area

Activity Area = TD01

Pack HUs

Pick-HU

Activity Area = 0020

Pick Pack HU

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Ship HUs

Door
TU
Vehicle

Deconsolidation (Inbound)
In Section

Deconsolidation is
necessary if an incoming
HU contains materials that
should be stored in
different Activity Areas or
Consolidation Groups or if
the number of items in the
incoming HU is bigger than
a given threshold.
The result of the
Deconsolidation are putaway HUs that only contain
materials that are put away
in the same consolidation
group.

IS3Bin1

Deconsolidati
on HU
Work Section

Putaway HU
OS2Bin1 OS2Bin2 OS2Bin3

Out Section

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IS3Bin2

Slotting
Slotting
Placing goods into a warehouse in efficient storage and picking of goods.
product related information e.g. weight, height, width
etc. stored in product master.
Slotting run decides storage bin optimally.

Before

After

Slotting

Slotting

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Slotting
Result of slotting:
Slotting determines the following storage parameters and stores them in
the product master:
Put-away strategy
Maximum quantity in storage type
Storage section indicator
Storage bin types

Slotting could also determine a fixed bin for product

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Exception Handling

Why do we need exception handling?

To keep the gap between the real world (physical warehouse) and the
system data (Warehouse system) minimal, all detected inconsistencies
during execution shall be entered, clarified and corrected in the system as
soon as possible. Exception handling enables this.

For example a warehouse worker has to execute a transfer order with a

pick quantity of 100 pieces from a defined Bin, but the Bin is empty.
With implemented exception handler service the user will be able to
describe the faced problem by entering an appropriate exception code.
Configurable follow-up-action can be used to solve the exceptional
situation and help the warehouse worker to continue his work without
major interruption.

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Exception handling
RF-Transactions

UI for confirmation of Transfer Orders

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Warehouse Monitor
Hierarchical
tree for
navigation

Sub-screen
that displays
parent data

Sub-screen
that displays
child data

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Alert Monitor

The Alert Monitor shows Alerts that can for example be triggered by an
exception code.

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Message Log

The message log gives additional information about, for example,

the warehouse order creation.
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Major enhancements
REPLENISHMENT
RETURNS PROCESS
RF FRAMEWORK
CAPACITY CHECK USING DIMENSIONS, WEIGHT AND VOLUME
PACKING/PACKAGING SPECIFICATIONS
TRANSPORT UNIT (TU) / VEHICLE / DOOR INTEGRATION
PHYSICAL INVENTORY
CROSS DOCKING *
CONTRACT PACKAGER INBOUND *

YARD MANAGEMENT *
QUALITY MANAGEMENT INTEGRATION *

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Replenishment

Different types of replenishments

PLANNED Replenishment

AUTOMATIC Replenishment

ORDER RELATED Replenishment

DIRECT Replenishment
Replenishment can be done at Storage type level
Replenishment Parameters can be automatically updated by slotting
Slotting Calculates Maximum Quantity, Minimum Quantity and
Minimum Replenishment Quantity on Storage Type Level or on
fixed bin level
Manual Entry of Maximum Quantity, Minimum Quantity and Minimum
Replenishment Quantity

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Customer Returns
Internal routing to take the return material to the return station
Ability to make usage decision on the return material

Communication sent to CRM on the extra effort for calculating charges

Follow on action that can trigger the next step related TO s for putaway, scrap etc.,

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Other Notable Changes

Storage bin is unique through out the warehouse and it is 18 characters
long could logically defined as aisle-stack-level-bin section-bin depth
Warehouse Request (Transfer requirement )

Post Processing Framework (Message Processing)

Warehouse Process Type (Movement types)
Storage type (Door, Staging, Work centers)

Consolidation group
Country of origin
Final delivery and Final shipment

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Warehouse Documents
Inbound delivery Notification
Inbound delivery
Outbound delivery request
Outbound delivery order

Outbound delivery
Warehouse request
Warehouse order
Transfer order
Shipment
Handling Unit

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Warehouse Documents
Inbound Delivery Notification
The shipping notification from the supplier is saved in the inbound delivery
notification in EWM.
The inbound delivery notification is created automatically by incoming messages
and is converted manually/automatically into an inbound delivery.
Inbound Delivery
The inbound delivery is a document containing all the data required for triggering
and monitoring the complete inbound delivery process. This process starts on
receipt of the goods in the yard and ends on transferral of the goods at the final
putaway, production or outbound delivery

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Warehouse Documents
Outbound Delivery Request
The outbound delivery request is a document containing all the relevant
logistics data in the outbound delivery process right from the origin of the
outbound delivery process (sales order, for example).
The outbound delivery request is created automatically by incoming
messages and is converted manually/automatically into an outbound delivery
order.
Outbound delivery order (Warehouse Request)
The outbound delivery order is a document containing all the data required for
triggering and monitoring the complete outbound delivery process. This
process starts with the first planning activities for the outbound delivery and
continues until the finished goods have been loaded and sent.

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Warehouse Documents
Outbound Delivery
The outbound delivery is a document representing the goods to be
delivered together to a goods recipient. The outbound delivery is used as the
basis for printing the delivery note or for sending a shipping notification.
You use this document in delivery processing when executing the following
actions:
Posting a goods movement
Cancelling a goods movement
Setting the status Leave Yard

You can save, process, delete and archive an outbound

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Warehouse Documents
Warehouse Request
The warehouse request is a document that enables the processing of warehouse
activities for a specific product. The warehouse activities for a product include
the following:
Picking
Put-away
Posting change
Stock transfer (within warehouse)
Scrapping

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Warehouse Documents
Warehouse Order
This function groups together transfer orders into warehouse orders according to
your Customizing settings, and so creates optimum work packages. For
warehouse order creation, you define rules with their relevant criteria.
You assign warehouse orders to warehouse employees in resource management

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Warehouse Documents
Transfer Order
Document used for executing goods movements that are logical or physical. This
includes pick, put-away, posting change, packing etc.

A transfer order contains all the necessary information on a planned goods movement.

What should be moved?

Which quantity should be moved?
From where (source storage bin) should the bin be moved, and whereto (destination storage
bin)?

In EWM a distinction is made between Product Transfer Orders and HU

Transfer Orders.
PROD-TO

HU-TO

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HU-TO

Extended WM Process Terminology and Definitions

Shipment
Document containing all the goods that are consolidated by a ship-from party and
are then transported together from an issuing location to a destination location.
The shipment forms the basis for planning, executing, and monitoring the
transportation of goods. The shipment can have the following directions:
Inbound shipment: For example, goods are transported from the supplier to the
plant.
Outbound shipment: For example, goods are transported from the plant to the
customer.

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Warehouse Structure
Handling Unit:
A handling unit is a physical unit consisting of packaging materials (load
carriers/packing material) and the goods contained on/in it. A handling unit is
always a combination of products and packaging materials. All the information
contained in the product items, for example, about batches, is retained in the
handling units and is always available.
Handling units can be nested, and you can create a new handling unit from
several other handling units as often as you want.
A handling unit has a unique, scannable identification number that can be formed
according to industry standards such as EAN 128 or SSCC.

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Thank you

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