White Paper

Task and Resource Management

Executive Summary What is Task Resource Management? TRMs Unique Capabilities TRMs Bottom Line Value Is TRM Right For Your Warehouse? The Future of TRM Conclusion 2 2 3 5 6 7 8

Optimizing Your Warehouse Operations with SAP R/3 TRM

ABOUT THE AUTHOR

Catalyst International has long been recognized as an industry leader in warehouse management and SAP R/3 implementation consulting with noted expertise in SAPs Logistics Execution System (LES), Warehouse Management (WM), and now Task and Resource Management (TRM). As one of the few SAP-certified LES implementation partners worldwide, Catalyst was a key player in SAPs internal, pre-release testing stage for TRM in Walldorf, Germany and is currently involved in the rollout of TRM with an R/3 Enterprise ramp-up customer. Catalyst also played an integral role with pre-release testing of SAPs native radio frequency data collection product SAPConsole and was the first to implement it with a customer using R/3 release 4.6. Our in-depth expertise of SAP LES products and functionality along with our close relationship with SAP provide us with an intimate knowledge of the development vector SAP is applying to the LES product suite and allows us to advise customers on strategic operational decisions, provide them with detailed information on key integration points, and quickly assist them in identifying fit/gaps with current and future release levels.

2003 Catalyst International, Inc.

EXECUTIVE SUMMARY
TRM strengthens the LES/WM solution via optimal task execution and resource deployment.

This white paper is designed to give warehouse operations managers and IT managers a useful framework for understanding SAPs Task and Resource Management (TRM) application. It presents an overview of TRM and its unique capabilities and benefits, provides key insight into which organizations will reap the highest value from TRM and outlines SAPs future release plans. The paper includes the following information: s What Is Task and Resource Management? SAPs latest step toward logistics optimization, TRM strengthens the LES/WM solution via optimal task execution and resource deployment.

s TRMs Unique Capabilities. TRM offers unique features for optimized materials movement, a transparent view of warehouse processes and value added services support. s TRMs Value. Bottom line, TRM will optimize your warehouse and distribution operations, improve your customer and partner relations and provide cost savings. s Is TRM Right For Your Warehouse? Warehouse operations with a high level of distribution activity, volume, operational complexity and value added services are the best fit for TRM. s The Future of TRM. By first quarter 2004, SAP expects to release Yard Management, Cross Docking and Enhanced Value Added Services to further strengthen the application.

WHAT IS TASK AND RESOURCE MANAGEMENT?

SAPs latest step toward logistics optimization is Task and Resource Management (TRM), an optional component of the SAP Logistics Execution System (LES) module, and more specifically the Warehouse Management (WM) module. TRM strengthens and completes the LES/WM solution by optimizing material flows via task execution and resource deployment. TRM breaks down material movements to a task and resource level and optimizes the sequence in which they are executed, ensuring that the right task is completed by the best resource at the most optimal time. TRM helps you to manage your warehouse processes more efficiently because it achieves an unparalleled degree of process visibility within the system by tracking any activity performed on the warehouse floor. TRM uses a systemic model of the warehouses physical layout to deploy resources according to the actual workload, the resources qualifications and the current geographic positions of the resources. The efficient deployment of resources contributes to a considerable reduction of costs in material flow processing.

TRM offers unique features for optimized materials movement, a transparent view of warehouse processes and value added services support.

With TRMs support for value added services, you can easily label goods or accommodate customers special packaging requests.

SAP WM and TRM are closely integrated and work hand-in-hand to manage and maintain the workload in warehouses. WM provides the movement, operation demands, high-level scheduling and planning. TRM distributes the work among the various resources.

TRM Features > > > > > Task Execution Prioritization Interleaving Value Added Services Tracking and Monitoring

TRMS UNIQUE CAPABILITIES

TRM is unique in that it uses task selection, prioritization, interleaving and other capabilities to optimize materials movement while offering the user a transparent view of warehouse processes. Features and highlights include: s Warehouse Site Map. A detailed 3D-model of the entire warehouse including storage bins, pick-up and drop-off points (P&D), work centers, working areas, zones, and all other geographical points that constitute the warehouse allows TRM to select tasks for execution with consideration for the time required to execute the task, given a resources present position and the destination of the task. s Task Selection, Assignment and Execution. TRM selects tasks for assignment to the optimum resource at the optimum time. Optimization is achieved through the use of priority rules that consider factors such as the parent documents priority (e.g., rush order), the base priority for a type of task assigned in TRM (e.g., pick for outbound delivery over replenishment), and the TRM route priority, which increases the priority of a particular task based on the resources physical location in the warehouse and its proximity to completed tasks. TRM executes orders by using an algorithm that takes several factors into consideration including the following: > > > > > Physical structure of warehouse Load Availability of resources Weighting and Priority Location / length of travel

s Task Bundling. TRM also supports task bundling when a group of tasks must be executed by one resource at a given time.
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s Prioritization. TRM uses a priority model to select tasks for assignment to resources. The model uses objects such as the task priority inherited from the parent document, the physical location of the resource, the route that a task would require, the attributes of the resource equipment element, the nature of the tasks load to be moved and other considerations to select a task for assignment to an available resource. When the resource completes that assigned task, TRM again calculates which task has the highest priority for assignment to the resource and makes the assignment. For each task to be performed, TRM considers the costs of an available resource compared to the task priority. Overqualified resources are only assigned in case of very high priority given to task completion and a suitable resource is not available. s Interleaving. TRM assigns tasks in close proximity to one another, providing a continuous workflow to the resource and minimizing or eliminating deadheading. Upon task completion, the system analyzes the resources current position to provide it with tasks whose starting point is close to that current position making deployment of resources as efficiently as possible. s Value Added Services Support. TRM provides modeling for value added services such as special labeling, pricing, and packaging such that the operation can be built into the routing of the material movement. For example, if there is a need for a special packaging operation or labeling, then the user will be directed to move the material picked for a particular delivery to the packaging work center, and after the service is completed, an additional work task will be generated to move the material to the dock or staging area. s TRM Monitor. TRMs monitor makes all the necessary steps within a business process transparent by keeping warehouse supervisors up to date about the current status in the warehouse, providing continuous information about workload bottlenecks, completed tasks, and available resources. Alert warnings for due date violations give the supervisor the opportunity to initiate the right response. They can influence task priority and assign tasks to resources via the monitor. s Comprehensive Real-time Controls. TRM analyzes each event in the warehouse and can react immediately to unforeseen situations (e.g., immediately reassigning a replenishment task to a resource so that it is executed next).

Bottom line, TRM will optimize your supply chain management, improve your customer and partner relations and provide cost savings.

TRMS BOTTOM LINE VALUE

TRMs ability to optimize resource deployment, material flow, routing and process visibility enables an accelerated supply chain, which in turn leads to improved customer service, better partner relations and overall cost savings.

Benefits include: s Increased Resource Efficiency and Route Optimization. Resources are deployed based on capacity, qualification, and current position on the warehouse floor, ensuring optimum routing. s Optimized Material Flow Processing. TRM organizes the flow of incoming and outgoing goods and internal goods movements in an optimum way. s Higher Visibility/Transparency. TRM enables you to always see which tasks and resources are available for execution, assigned for execution, accepted for execution, and completed. s Accelerated Supply Chain Management. Better use of resources, improved routing and material flow accelerates and optimizes the supply chain. s Improved Customer Service and Partner Relations. An optimized supply chain will ensure better customer service and supplier/partner relations. s Cost Savings. Optimized processes and decreased labor requirements reduce operations costs.

IS TRM RIGHT FOR YOUR WAREHOUSE?

Warehouse operations with a high level of distribution activity, volume, operational complexity and value added services are the best fit for TRM.

TRM is tailored to be of most benefit to the warehouse with high activity levels, high volume and complex operations. These and other factors should be considered when determining whether TRM is a fit for your facility. s High Level of Distribution Activity & Materials Movement. TRM was designed to benefit warehouse operations that are more distribution oriented as opposed to material storage oriented (e.g., a production supply facility). If efficient management, movement and distribution of materials are core competencies and critical success factors for your organization, TRM is a good fit and will significantly enhance your labor efficiencies and minimize your labor costs. s High Level of Volume. TRM offers the most value to those facilities with a high level of material flow velocity (typically characterized by the number of transfer orders), high transaction volume, a high number of warehouse associates per shift, and multiple types of material handling equipment. The higher the number, the better the fit. For example, if you have 50 trailer load outbounds a day, youll reap a much higher benefit from the system than if you only have five. s Operational Complexity. TRM offers strong functionality for complex material flows, such as the use of special equipment that cannot physically make certain material moves efficiently, but instead uses pick and drop locations. The systems decomposition of TOs into tasks offers an advantage for these complex scenarios. s Level of Value Added Services. TRM also offers strong functionality for value added services such as special labeling, pricing, packaging and hazardous materials notes on shipping documents. The higher the level of services you offer, the better the fit with TRM. s Current User of SAP WM and Decentralization. Current users of SAP WM will find an independent systems configuration audit and warehouse operational review beneficial prior to undertaking the implementation of TRM, but it is highly recommended that users considering TRM as part of the initial WM roll-out seek experienced consulting support because of TRMs complexity and abstraction. Another factor that should be weighed when considering the implementation of TRM is the organizations ability to decentralize the WM/TRM system. The decentralized WM architecture is strongly recommended for TRM users because of the heavy processor load that TRM can pose for your core system. Implementing decentralized WM should be considered a prerequisite to implementing TRM.
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By first quarter 2004, SAP expects to release Yard Management, Cross Docking and Enhanced Value Added Services to further strengthen the application.

THE FUTURE OF TRM

For companies with complex logistical requirements that include yard management, cross docking, and extensive value added services and require software to support those functions, it is important to note that SAPs future release of the R3 Enterprise product will include advanced functionality for these three areas. The second Enterprise release is currently in testing and is scheduled to be available first quarter 2004. s Yard Management (YM). Where traditional warehouse management systems have focused on management of the physical warehouse, yard management is a starting point for extending warehouse management and control outside of the traditional and beyond the four walls of the warehouse. Viewed as a handshake function to hand over goods from and to transportation, YM will optimize door and dock utilization and reduce immediate storage needs. Materials that are in trailers managed by the yard management system will be visible to the SAP system even though the materials have not been received. This will allow warehouse managers to bring the right trailers to the receiving dock at the right time. s Cross Docking. A technique of processing goods in a warehouse or distribution center where inbound materials are moved from goods receipt directly to goods issue without being stored. Cross docking will reduce double handling of materials and optimize the flow of materials from inbound receipts to outbound demand while reducing transport paths in the warehouse. s Enhanced Value Added Services (VAS). Advanced functionality will be provided to create, monitor and invoice for enhanced VAS activities in the warehouse such as clothing hanger insertion, price marking, tagging, and customer-specific packaging and labeling. This enhancement will be integrated with both TRM and WM.

CONCLUSION
SAPs Task and Resource Management module delivers value by optimizing labor utilization and providing warehouse process monitoring and controlling functionality. Bottom line, TRM enables warehouse activities to be executed better, faster and cheaper than possible without a warehouse optimization engine. When determining whether TRM is the right fit for your operations, it is important to consider that TRM best benefits warehouse operations with high levels of distribution activity, volume and operational complexity. Also important in the decision-making process is SAPs future release plans for Yard Management, Cross Docking and Enhanced VAS. Companies who decide to implement TRM will gain the benefit of an accelerated supply chain, improved customer service, better partner relations and overall cost savings. For more information on how TRM can optimize your warehouse operations, contact Catalyst International at www.catalystwms.com.
2003 Catalyst International. All rights reserved.

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