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SAP Extended Warehouse

Management Overview

Elinor Castell
Solution Management EWM
SAP AG

AGENDA
1.

Introduction and Overview

2.

EWM 5.0 and EWM 5.1

3.

Upcoming Functionality in EWM 7.0

4.

Summary

SAP: 15 Years of Warehousing Expertise

R/3
Release
2.0/2.1

Storage

Units
Parallel

Processing

1993

R/3
Release
3.0/3.1

Integration
PP
QM
LIS

1995

R/3
Release
4.0

Rough

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

1997

R/3
Release
4.5

Decentralized
WM
Prototype
of RF

R/3
Release
4.6

Native

RF /
SAP Console
HUM
Packing Stn

R/3
Release
4.7 EE1

Task &
Resource
Management

R/3
Release
4.7 EE2

ERP EWM
XD
YM
VAS

SCM
EWM
5.0
Slotting
Rearrange-

ment
Warehouse
Orders
Warehouse
Monitor
Internal
Routing

2005

1998

2000

2002

2002

2005

SCM
EWM
5.1
Labor

Mgmt

MFS
WH Cockpit
RFID Integr.
Batch Mgmt
Serial Nr
Catch Weight
ESA

2007

Extending the Scope of our Warehousing solutions

SCM
EWM
7.0
Graphical

WH Layout
Production

Supply
Merchandise

Distrib. XD
Task

Interleaving

2008

Deployment Options

Integrated Scenario

ERP
ERP

Decentralized ERP Scenario

ERP

Other
ERP

ERP
ERP

WM

Logistics

Extended
WM

FI/CO

SAP
ERP
WM

SAP
LES

SAP
LES

Dec WM = full SAP ECC system

SAP Warehouse Management in mySAP ERP


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

Enterprise Focus

Extended
Extended
Extended
WM
WMWM

SCM EWM
Add-On

SAP SCM

SCM Extended Warehouse Management


SCM Extended Warehouse Management

SPE / Network Focus

AGENDA
1.

Introduction and Overview

2.

EWM 5.0 and EWM 5.1

3.

Upcoming Functionality in EWM 7.0

4.

Summary

EWM Inbound Process Overview


New

New

Slotting

Receive ASN Data

Goods
Receipt

ASN Validation
and Correction

Putaway Bin
Determination

Transport
Unit Arrival

Manage
Transport Unit

New

New

Unload
Transport Unit
New

New

Deconsolidation
(Internal
Routing)

Putaway
Process Exceptions/Manage Work in Process

New Inbound Processes


New

New

New

Pick From Receiving/


Push Deployment

Returns/Reverse Logistics

Transportation Cross dock


New

Packaging Execution

EWM Outbound Process


New

Order/
Deployment

Work
Assignment

New
New

Route
Determination

Picking

Wave
Management

Packing

Picking
Bin
Determination

Staging

Process Exceptions/Manage Work in Process

Warehouse
Orders

Loading
and
Goods Issue

EWM Internal Processes


New

Kitting

Inventory Counts
Record Accuracy
New

Replenishment
New

Rearrangement

Process Exceptions/Manage Work In Process

Additional Warehousing Processes


New

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

New

New

Quality Inspection
Engine

Environmental
Health & Safety

Service oriented Quality


Inspection Engine to support
the quality processes for
warehouse management

EH&S data and checks


used in Product Storage,
Shipping Documents and
Transportation Routing

New

Process Exceptions/Manage Work in Process

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

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway


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

Internal routing
Slotting
Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Possibilities of Internal Routing


Layout based internal routing defining intermediate points

between storage types for handling of multi-step picking and


putaway

Process oriented internal routing defining


mandatory / optional steps

Loading / Unloading
Packing
Counting
Deconsolidation
Putaway / Picking
Staging

Layout Oriented Internal Routing


Handling Unit

Basic
Concept

HU Warehouse Task

WT not active

Goods receipt area


A

High rack area


B
WT not active

Active WT

Check-point
Y

Node

WT active

WT active

From

To

Intermediate

Complex Putaway with Process Oriented Internal Routing


Prod. WT
Mat. 1
Goods Receipt
SType: 9010
Bin: GR-ZONE

Deconsolidation Station: AP1


SType: APDK

1
3 Step: IB02
2
type: 9030
Bin: Door1

Deconsolidation

Step: IB01
Unloading

Sec:
AP1I

Sec: 0001
Bin: AP1

Bin:
AP1I
Step: IB03
Put-away

Prod. WT
Mat. 2

Final
SType
JK01

Final
SType
JK04

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway


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

Internal routing
Slotting
Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Slotting
Find and optimize bin for material
Physical criteria to find appropriate bin type
-> Space optimization

Demand criteria to find appropriate bin section


-> Time optimization
Rule based Rearrangement of material in bins
-> Closing the optimizing loop

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway


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

Internal routing
Slotting
Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Rearrangement optimizes warehouse management


and reduces operational costs
Pick Order
before Optimization

Rearrangement
Execution

Golden Zone
for Fast Movers

Business Case
60.000 line items a day

~ 450 hours time


saving per day

and...Improved Service Level !

> 1.000.000$
savings per year!

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway


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

Internal routing
Slotting
Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Warehouse Order Creation Process


WHR
1
WHR1
WHR1
WHR1
WHR1

A list of warehouse requests are created

These warehouse requests will be grouped


Wave 1

into one wave

Based on the wave numerous WTs will be


created

WT
1
WHR1
WHR1
WHR1
WHR1

WT
n
WHR1
WHR1
WHR1
WHR1

All WTs will pass the Black Box Warehouse


Order creation. Depending on customizing,

Warehouse Order
Creation

warehouse orders can contain WTs from


different deliveries.

WO 1

WO 2

WO n

TO
WHR1
WHR1
WHR1
WHR1

TO
WHR1
WHR1
WHR1
WHR1

TO
WHR1
WHR1
WHR1
WHR1

Warehouse Order Creation Schematic Flow


Grouping by Activity Area:
WT

WHR 1

WT

WT

WT

AA 01

WT

WT
WT
WHR 2

WT

AA 02
WT

WT

WT

WT

WT

AA 01

AA 02

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

WT

WT
WT

WO Creation Rules (Customizing):

c) WOCR3
WT

AA 03

WT

WT

1
2

3
Try WOCR3
Created Warehouse
Order 4711
WT
1

WT
3

WT
2

WT
4

AA 02
WT
3

WT
4

5
Try WOCR2

WT
1

WT
2

AA 02

Created Warehouse
Order 4712
WT
1

WT
2

AA 02
a) WOCR1

Wave Handling: Grouping of Delivery Lines

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway


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

Internal routing
Slotting
Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Resource Management
Resource Management: Users and equipment
combination which can be defined as being
allowed to execute work in the warehouse.

RF (automatic or manual)

Non-RF environment (manual)

Tracked and Displayed in the Warehouse Monitor

Visibility of stock on Resources

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

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway


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

Internal routing
Slotting
Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Wave Management

WM request x
Delivery x

Item 1
Item
Dx2Item 1
Item
Dx3Item 2
Dx Item 3

Wave
Wave

Wave Creation methods to control amount of work


released to the warehouse floor at a specific time

Automatic, Immediate or Manual release

Full

or Partial delivery may belong to a wave

Content:

Release time /date

Order Type (e.g. Emergency / Stock)

Process Type

Grouping by route, pick area(s), packing lanes...

Warehouse
Order x
WO Item 1
WO Item 2
WO Item 3
Bundle assigned
to a worker

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway


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

Internal routing
Slotting
Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

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

Example of Business Requirements & EWM Functionality

Handling of multi step picking and putaway


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

Internal routing
Slotting
Rearrangement

Warehouse Order Creation

Resource Management

Wave picking based on flexible criteria

Wave Management

Central monitoring of the warehouse activities

Warehouse Monitor

Transportation of HUs across different DCs or WHs

Transportation Cross-Docking

Transportation Cross-Docking

Sales order ->


outbound del.
XD determined.
Distribution WH

Outbound del.

Cross-Dock WH

Inbound & outbound


deliveries

Order

Customer

Main Features -EWM 5.1

Labor Management

Measurement and KPIs


Planning and Simulation
Visualization

Analytics

Warehouse Cockpit

Use EGF to configure graphical cockpit for


visualization of application data

RFID enablement

Goods receipt optimization

Goods receipt initiated in Extended Warehouse


Management (EWM)
Production goods receipt

Kitting enhancements

Kit-to-stock

Main Features -EWM 5.1

SAP EWM
RFC

RFC-Adapter
RFC-Adapter

Task
Task

Response
Response

Event
Event

pull

push

Channel 2

Task Confirmation
Confirmation
Task

Channel 1

PLC 1

Location and Handling


Unit

search in the picking process

Batch

Classification during Goods Receipt


in the outbound delivery

Manual creation of outbound deliveries in


EWM

ESA enablement

Material Flow System (MFS)

Serial number enhancements

PLC 2
Serial number /
Product

Batch

Batches

TCP/IP

TCP/IP

Batch management enhancements

Pick

individual serial numbers

Catch-Weight Support

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Warehouse Cockpit

Create Inbound Deliveries based on shipping documents

Automate your business processes and


react flexibly to changes in your business processes

eSOA Enablement

Material Flow System

Connect and control an automatic warehouse

Kit-to-Stock

Create kits and transfer to stock


Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Expected Goods Receipt

RFID Enablement

Create Outbound Delivery manually

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

For effective management of the labor supply chain, it is necessary to:

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

Activation of Labor Management

Labor Management is activated by Warehouse Number and Internal Process


Step

Labor Management can be deactivated for particular External Process Steps

Warehouse EEG1
Internal
Proces
s Step:

LM Active

Non
PhysUnload- Decon- Quality
ical
Activate Storage Picking Packing Loading
ing
solid- InspecControl
Invenation
tion
LM
Moves
tory

External
Process
Step:
Deactivate LM

Replenishment

Adhoc
Moves

Shrinkwrapping

VAS
Activities

Painting Oiling

Measurement and KPIs

Track people throughout the day and measure


performance on individual tasks
Capture direct vs. indirect time
Interface to HR

Time and attendance

Compensation and incentives

Resource definition (processor and equipment)


Measurement services (KPI builder)

Indirect Labor: What is It?

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

Direct labor

Indirect labor

Picking
Put away
Inventory counting
VAS
...

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

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

Sweeping the floor


Housekeeping
Cleaning
Meeting
...

Unproductive time
Breaks
Bathroom
...

Assumption: HR
captures
unproductive time
implicitly

Indirect Labor Example

Processor

Planning and Simulation

Standards

creation and feedback

Traditional

measurement: Measure lines per hour, cases per

hour, etc.
Engineered labor standards: How long should it take to
complete a specific task?
Workload

and capacity planning for different aspects


Measurement services/formula editor
Workforce and load simulation
Operational planning

Basic Concepts
Planning:

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

Labor Standards
Calculate execution time:
guesstimates
historical data
engineered standards

Services
workload

workload
processor
KPI

Simulate
Change:
planning goal
workload
processor
KPI

workload

Preprocessing

Plan

Create planned workload

Define planning goal:


workload
processor
KPI
optional
must

View
result
workload
processor
KPI

Planning

Operational Planning:

Operational Planning provides a short-term overview of the warehouse (next hours or


days)

Used for short-term determination of work and resources

Rough estimate of workload

Considers one or more activity areas and external process steps

You can base it on preprocessing

Based on the aggregated values (workload, processor) and measurement services

Simulation

Operational Simulation:

Simulation manual change of planning data

You can change data in aggregated and detailed views

Changes in detailed view also changes the aggregated view

Possible to change planning goal in simulation by calling the


formula editor

You can recalculate the planning goal based on changed data

Visualization

Events and alerts


Exceptions
Workforce analytics and reporting:

Actual

vs. planned task time


Review performance data across multiple facilities
along common metrics

SAP NetWeaver BI integration


Extractors
SAP

NetWeaver BI content
Strategic planning
Drill-down visibility

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

The system writes executed workloads when it executes an order

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

Employee Performance: Supervisors View


Supervisors View

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Warehouse Cockpit

Create Inbound Deliveries based on shipping documents

Automate your business processes and


react flexibly to changes in your business processes

eSOA Enablement

Material Flow System

Connect and control an automatic warehouse

Kit-to-Stock

Create kits and transfer to stock


Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Expected Goods Receipt

RFID Enablement

Create Outbound Delivery manually

Warehouse Cockpit
Intended

for Supervisor and


Warehouse Manager

Monitors

team performance

Monitors

the performance of
areas or the whole
warehouse

At-a-glance

view of several
key figures enables you to
react to critical situations
quickly

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Warehouse Cockpit

Create Inbound Deliveries based on shipping documents

Automate your business processes and


react flexibly to changes in your business processes

eSOA Enablement

Material Flow System

Connect and control an automatic warehouse

Kit-to-Stock

Create kits and transfer to stock


Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Expected Goods Receipt

RFID Enablement

Create Outbound Delivery manually

GR Process Based on Expected Goods Receipt


(EGR)

New

Daily list of expected deliveries

Report on Expected
Goods Receipt (EGR)/
Planned DeIivery

Gate check-in
New

Goods receipt (GR) preparation


Door assignment
New

Physical GR
Release Door

Compare delivery papers system


a) EGR Planned Delivery
b) Assign Planned
Deliveries to Transport Unit
Compare physical goods system
Identify Planned Delivery items

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Warehouse Cockpit

Create Inbound Deliveries based on shipping documents

Automate your business processes and


react flexibly to changes in your business processes

eSOA Enablement

Material Flow System

Connect and control an automatic warehouse

Kit-to-Stock

Create kits and transfer to stock


Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Expected Goods Receipt

RFID Enablement

Create Outbound Delivery manually

eSOA Enablement

Warehouse/Yard Organizational Data


Inbound/Outbound Delivery
Dock Appointments
Transportation Unit Appointments
Vehicle Appointments

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Warehouse Cockpit

Create Inbound Deliveries based on shipping documents

Automate your business processes and


react flexibly to changes in your business processes

eSOA Enablement

Material Flow System

Connect and control an automatic warehouse

Kit-to-Stock

Create kits and transfer to stock


Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Expected Goods Receipt

RFID Enablement

Create Outbound Delivery manually

MFS
Variants

EWM 5.1

Stock

SAP ERP

Warehouse
Management

3rdrd Pty.
WHS

SAP ERP

SAP ERP

SAP ERP

SAP WM

SAP WM

SAP EWM

SAP TRM
Material Flow

Machine Control

3rdrd Pty.
MFS

PLC

rd Pty.
3rd
MFS

PLC

3rd Pty.
MFS
RFC
RFC Adaptor

RFC
RFC Adaptor
Adaptor

PLC

PLC

EWM Controls Movement Steps


Aisle 1

Aisle 2

EWM

Interim
Destination

Final
Dest.

b) Task HU 1
From CP01
To
CP02
a) ScannerMessage
HU 1
at CP01

Scanner
CP02
CP02

PLC

CP01
CP01

Scanner read

Move

TCAR

EWM Controls Movement Steps


Aisle 1

Aisle 2

EWM
Final Dest.

Interim Dest.
Warehouse Task

Task
confirmation

CP11
CP11
1

CP02

PLC

Scanner
CP02
CP02

Sensors

Drives TCAR and Conveyors

TCAR

EWM Controls Movement Steps


Aisle 1

EWM
Final Dest

Interim Dest
Warehouse Task
CP12
CP12
1

Task
Confirmatio
n

CP11

TCAR

PLC

Sensors

Drives Conveyors

CP11
CP11

Scanner

Aisle 2

EWM Controls Movement Steps


Aisle 1

EWM
Final Dest.
Final task confirmation

Warehouse Task to Rack Feeder


Bin
Bin
1

CP12

CP12
CP12

Task
Confirmation
Drives Rack Feeder

PLC
(for Rack Feeder)

PLC
(for conveyors)
Sensors

Aisle 2

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Warehouse Cockpit

Create Inbound Deliveries based on shipping documents

Automate your business processes and


react flexibly to changes in your business processes

eSOA Enablement

Material Flow System

Connect and control an automatic warehouse

Kit-to-Stock

Create kits and transfer to stock


Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Expected Goods Receipt

RFID Enablement

Create Outbound Delivery manually

Kit-to-Stock

Kit to Stock (Kit to Order supported in 5.0)

Use ERP Bill of Material & Production Order

Use VAS completely in EWM

Dismantle Kits

Streamlined Kit Creation process

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Warehouse Cockpit

Create Inbound Deliveries based on shipping documents

Automate your business processes and


react flexibly to changes in your business processes

eSOA Enablement

Material Flow System

Connect and control an automatic warehouse

Kit-to-Stock

Create kits and transfer to stock


Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Expected Goods Receipt

RFID Enablement

Create Outbound Delivery manually

RFID enabled EWM


Unload

Confirmation
Tag
of Warehouse
Comissioning
Task

Set unload status, confirm WT


(with resource user) and post GR
based on ASN

Packing

Loading

Confirm WT incl. resource, e.g.:


- internal stock transfer
- change batch no
- stock level change

Attach boxes/ items


to Handling Unit,
set status to packed

Update HU and
send ASN

RFID Enabled Inbound Process in EWM


Inbound
Delivery

ASN

1. ASN enriched with


EPCs is received

2. Inbound
Delivery is
automatically
created based
on ASN

ERP

RFID Unload

GR Posting

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

5. Automatic
GR posting is
done with
unloading.

AII
3. EPC enriched HU
Info is passed to
EWM

EWM

RFID
Putaway

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

RFID enabled Internal Warehouse Moves in EWM


WH Move

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

AII
EWM

RFID Enabled Outbound Processing in EWM


Pick

Not
supported
with RFID

ERP

RFID Tag
Commissioning

1. Commission
RFID Tags

RFID
Pack

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

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

AII
EWM

GI

ASN

4. GI is posted and
EPC enriched ASN
is sent

Example of Business Requirements & EWM Functionality

Manage the time and productivity of warehouse workers

Labor Management

Monitor the performance of workers, teams, warehouse areas

Warehouse Cockpit

Create Inbound Deliveries based on shipping documents

Automate your business processes and


react flexibly to changes in your business processes

eSOA Enablement

Material Flow System

Connect and control an automatic warehouse

Kit-to-Stock

Create kits and transfer to stock


Optimize warehouse processes by using RFID technology

Generate outbound delivery orders indirectly

Expected Goods Receipt

RFID Enablement

Create Outbound Delivery manually

Direct Outbound Delivery Order

Create Outbound Delivery manually in EWM

Pickup (direct sale or sell from stock)

Account assignment

Immediate delivery

Scrapping

AGENDA
1.

Introduction and Overview

2.

EWM 5.0 and EWM 5.1

3. Upcoming Functionality in EWM 7.0


4.

Preliminary plan - subject to change

Summary

Graphical Warehouse Layout

Defines the structure of the warehouse layout and yard using a 2D graphical tool that allows you to create
the warehouse/yard structure visually, improving and accelerating configuration

Provides graphical 2D representation of the warehouse and the yard of the warehouse enabling you to
visualize warehouse activities and allow interactive interventions

Displays resources and status information

Displays yard resources, e.g., vehicles and trucks, and allows color coding or logos to be used in order to
track status progress in yard

Allows navigation from graphics to related information

Graphical
Representa
tion of
Warehouse

Preliminary plan - subject to change

Select Warehouse to View


Enter Warehouse Number to view graphically:

Preliminary plan - subject to change

Visual Representation of Selected Warehouse

Preliminary plan - subject to change

Zoom Possibilities To Bin Level

Preliminary plan - subject to change

Link to Storage Bin Characteristics

Using the left mouse click on the storage bin, we can immediately see the most important
characteristics of the storage bin
Preliminary plan - subject to change

Link to Storage Bin Maintenance Transaction

Using the right mouse click, we can go directly into the storage bin maintenance
transaction.
Preliminary plan - subject to change

Status Overview of Objects:

Conveyors

Selecting the conveyor status allows us to see that three conveyors need attention
Preliminary plan - subject to change

Three New Enhancements

EWM will be enhanced in the following areas:


Resource

management to improve optimization

Cross-docking

to improve process flows across the warehouse and to provide


retailers with efficient distribution methods to move merchandise through the
warehouse for preparation before final shipment to customers or stores

Production

supply to provide integration for manufacturing orders, whether


production orders or process orders

Preliminary plan - subject to change

Resource Management

Preliminary plan - subject to change

Three Types of Optimization

To optimize the work with RF devices in a warehouse, we focus on three


types of optimization:
Task

interleaving: a process by which a resource, having just completed and


confirmed a task, is assigned a new task, the source of which is close to the
resources current location
Execution constraint: enables you to control the execution of tasks in predefined
zones of a site, preventing resource bottlenecks and ensuring the workability of the
semi-system guided mode of task selection
Semi-system guided work: whenever the user has finished his actual task and
requests new work, the system checks the available open tasks in an area and
sends a user to this area without assigning a specific task

Preliminary plan - subject to change

Task Interleaving

Queue Types for Task Sequencing


Inbound Internal Outbound

Preliminary plan - subject to change

Execution Constraint

To optimize the work with RF devices in a warehouse, we focus on three


types of optimization:
Task

interleaving: a process by which a resource, having just completed and


confirmed a task, is assigned a new task, the source of which is close to the
resources current location
Execution constraint: enables you to control the execution of tasks in predefined
zones of a site, preventing resource bottlenecks and ensuring the workability of the
semi-system guided mode of task selection
Semi-system guided work: whenever the user has finished his actual task and
requests new work, the system checks the available open tasks in an area and
sends a user to this area without assigning a specific task

Preliminary plan - subject to change

Execution Constraint Example


EC

Zone

Combination

Resource Types

ZN04

1 x Picker; 1 x Simple Forklift

4 x Pickers

2 x Pickers; 1 x Simple Forklift

5 x Pickers

ZN06

There are currently four pickers subscribed to the destination zone ZN06 so
EC 2 is available.
However, since the source zone ZN04 has reached its capacity of four pickers,
EC 1 is unavailable.
Since the movement task is subscribed to an unavailable EC, it cannot be
assigned to the worker, Marcus.
Preliminary plan - subject to change

Semi-System Guided Work

To optimize the work with RF devices in a warehouse, we focus on three


types of optimization:
Task interleaving: a process by which a resource, having just completed
and confirmed a task, is assigned a new task, the source of which is close
to the resource's current location
Execution constraint: enables you to control the execution of tasks in
predefined zones of a site, preventing resource bottlenecks and ensuring
the workability of the semi-system guided mode of task selection
Semi-system guided work: whenever the user has finished his actual
task and requests new work, the system checks the available open tasks
in an area and sends a user to this area without assigning a specific task

Preliminary plan - subject to change

Semi-System Guided Work Example (cont.)

Preliminary plan - subject to change

Cross-Docking

Cross-docking is a method of materials processing by which materials that


have arrived at the warehouse are brought from goods receipt directly to
goods issue without being put away:

Retail Merchandise XD is an existing cross-docking scenario in SAP ERP


6.0 with Retail Solution switched on. Merchandise Distribution is essential
for logistics processes in the retail industry. The retailers plan, control, and
manage their flow of merchandise from the vendors via distribution centers
to the stores or customers.

Opportunistic cross-docking allows incoming deliveries to be redirected


to cover outbound requirements. The cross-docking decision is made in
EWM based on information available in the warehouse.

Production cross-docking and production supply cross-docking.


Opportunistic cross-docking for production supply.

Preliminary plan - subject to change

Merchandise Distribution Cross-Docking: Inbound


and Outbound Deliveries

Vendor

EWM

SAP Retail
Run Collective PO

Receive
Purchase
Order

Plan Allocation

Create Purchase Order

Send ASN/
inbound
delivery

Create ASN/
inbound delivery

Create planned
outbound delivery

Distribution
Data

Handling Unit (HU)


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

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

CD: Cross-Docking

Preliminary plan - subject to change

HU

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

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


Door

Goods Receipt
UC1

UC1
Mat A
Mat B

Mat A
Mat B

Active HU Warehouse Task (WT)


Active Material Pick WT
Inactive Material Pick WT

Deconsolidation

*UC1: Ultimate Consignee1

Inb.Del.Ref.
Deleted

Mat A
Mat B

Door

UC1

Mat A
Mat B

UC1

Goods Issue

Preliminary plan - subject to change

Final Storage
Type

Example 2: Retail Cross-Docking:


Mixed Handling Unit Within Ship-HU
Door

Goods Receipt

UC1

Active HU WT
Active Material Pick WT
Inactive Material Pick WT

Deconsolidation

Inb.Del.Ref.
Deleted

Final Storage
Type

Door

Goods Issue

Preliminary plan - subject to change

Merchandise Distribution-Flow Through:


Distribution by Customer (n:m Relationship)

Outb-1 Store1
Material

Material 2
Store1

10
10

10

Outb-2 Store1

10

10

10

Material 3

Store2
10

10

STAG
AREA1

Outb-3 Store2
DOOR1

Material 3
Material 2

10
10

10

10

Outb-4 Store3

Outb-5 Store4

10
10

DOOR2
Material 3

Store4

10
10

STAG
AREA2

Store3

10

Material 1

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

Material 2

Pick by customer, limit to number of staging


areas (here 2)
= WO 1
= WO 2

change

Merchandise Distribution-Flow Through:


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

Outb-2 Store1

Store1

MAT3
10

10

10

Outb-3 Store2
10

10

Store2
10

10

10

Store3
10

10

MAT3

STAG
AREA1

DOOR1

STAG
AREA2

DOOR2

MAT2

Outb-4 Store3
MAT3

10

Outb-5 Store3
MAT1
Store4

10
10

10
10

Outb-6 Store4

10

CD Storage Type

MAT1
MAT2

Putaway by product to distribute the products


to the intermediate bins
= WO 1
= WO 2
= WO 3

Pick by customer, limit to number of staging


areas (two here)
= WO 1
= WO 2

Preliminary plan - subject to change

Merchandise Distribution-Flow Through: Delivery


Adjustment
Underdelivery:
(only 20 delivered
instead of 30)

Inb-1

Outb-1 CUST1
Item10

PO-47-10

10

PO-47-10

QTY = 15

10

10

10

Start delivery
adjustment after
GR is complete

Inb-2

Fairshare:
Reduce 15 to 10

Item20

PO-47-20

QTY = 10

for each customer

Outb-2 CUST2

PO-47-20

Item10
10
10

10

10

CD Storage Type

QTY= 15
Item20
QTY=10

Preliminary plan - subject to change

PO-47-10

PO-47-20

Cross-Docking

Cross-docking is a method of materials processing by which materials that


have arrived at the warehouse are brought from goods receipt directly to
goods issue without being put away:

Retail Merchandise XD is an existing cross-docking scenario in SAP ERP


6.0 with Retail Solution switched on. Merchandise Distribution is essential
for logistic processes in the Retail industry. The retailers plan, control, and
manage their flow of merchandise from the vendors via distribution centers
to the stores or customers.

Opportunistic cross-docking allows incoming deliveries to be redirected


to cover outbound requirements. The cross-docking decision is made in
EWM based on information available in the warehouse.

Production cross-docking and production supply cross-docking.


Opportunistic cross-docking for production supply.

Preliminary plan - subject to change

Example: Opportunistic Cross-Docking


(Homogeneous Handling Unit) Inbound
Goods Receipt
Area
IB

IB

Counting Station

CUST_Inb

IB

VAS Station Inbound

IB

IB

Inbound
Delivery

Active HU WT (Warehouse Task)


Active Material Pick WT
Inactive Material Pick WT

Final Storage
Type

Outbound
Delivery

CUST_Outb
OUT

OUT

Staging Area

OUT

Packing Station Outbound

Preliminary plan - subject to change

OUT

VAS Station Outbound

OUT

Example: Opportunistic Cross-Docking


(Homogeneous Handling Unit) Outbound
Goods Receipt
Area
IB

IB

Counting Station

IB

Inbound
Delivery

Active HU WT (Handling Unit Warehouse Task)


Active Material Pick WT

Final Storage
Type

Outbound
Delivery

OUT

OUT

Staging Area

OUT

Packing Station Outbound

Preliminary plan - subject to change

Production Supply
In order to use a product (component) for a manufacturing order, it has to be
brought to the production supply area. When EWM is used, the products
have to be picked in the warehouse and moved to the production supply
area.
There are several ways to provide components that are required for a
manufacturing order:

Pick parts/release order parts: The products that are needed as components
for an individual order (pick parts) or for multiple orders (release order parts)
have to be staged in the production supply area in time and in the required
quantity.

Crate parts/kanban: Products that are often used in the production area are
provided independently from the existing orders. The warehouse is responsible
for filling containers as requested by production. Kanban is a specialized way to
handle crate parts.

Preliminary plan - subject to change

Standard Organizational Structure


Separate EWM storage location: Stocks in the Production Supply Area (PSA) are
managed in a separate EWM-managed storage location, providing transparency for
the Production Supply Area stocks both in EWM (at bin level) and in ERP (at storage
location level).

Warehouse
Production Supply Area
Storage Location
Storage Bin

AFS: Available for Sale


ROD: Received on Dock

Preliminary plan - subject to change

Alternate Organizational Structure

Non-EWM storage location: The stock in the Production Supply Area(s) is not
managed in EWM, but in ERP MM-IM at storage location level.

Warehouse
Production Supply Area
Storage Location
Storage Bin

AFS: Available for Sale


ROD: Received on Dock

Preliminary plan - subject to change

Alternate Organizational Structure (cont.)

EWM storage location in another EWM Warehouse: The staging to the Production
Supply Area is a two-step process: an outbound process from the sending EWM
warehouse and an inbound process to the receiving EWM warehouse

Warehouse
Production Supply Area
Storage Location
Storage Bin

AFS: Available for Sale


ROD: Received on Dock

Preliminary plan - subject to change

Scenario: Pick Parts and Release Order Parts


with Two EWM Storage Locations

StLoc: Storage Location


POR: Production Supply Delivery Request
SPC: Production Supply Delivery
PP Order: Production Order
CONFIRM_DEC: Confirm Decentrally
GI: Goods Issue

Preliminary plan - subject to change

Scenario: Crate Parts with Two EWM Storage


Locations

Preliminary plan - subject to change

Scenario: Kanban Parts with MM-IM Storage


Location

Preliminary plan - subject to change

Continuous Improvement

There are continuous improvements in the following areas:

Warehouse Monitor

Extensions in the putaway strategy

Improvements in process-oriented storage control for internal processes

Handling Unit process improvements

Material flow system enhancements

Preliminary plan - subject to change

AGENDA
1.

Introduction and Overview

2.

EWM 5.0 and EWM 5.1

3.

Upcoming Functionality in EWM 7.0

4.

Summary

Resources

Online Help (http://help.sap.com)


Select

Overview of SAP Documentation SAP Business Suite SAP Supply Chain


Management SAP Extended Warehouse Management (select language)

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


Choose

Warehousing Extended Warehouse Management in SAP SCM

Choose

Quick Links /ides enter EWM (Keywords for TREX-Search) Search List

Resources specific to EWM 7.0 will be available only after


ramp-up release of functionality.

Resources

Roll Out Map 2007

https://portal.wdf.sap.corp/irj/servlet/prt/portal/prtroot/com.sap.sen.wcms.Cockpit.Main?
url=/guid/20cd159e-6160-2910-51a1-a90c35ff47c5

Learning Map

https://websmp203.sap-ag.de/~form/sapnet?
_SHORTKEY=01100035870000672242&_SCENARIO=01100035870000000202&

Online Help (http://help.sap.com/)

Select Documentation SAP Business Suite SAP Supply Chain Management SAP SCM
5.0 (select language) SAP Extended Warehouse Management (SAP EWM)

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

Choose Warehousing Extended Warehouse Management


in SAP SCM

IDES: Quick Link: /ides

Resources specific to EWM 7.0 will be available at a later


date.

Thank you!

SAP 2007 / Page 109

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