3409 the Latest and Greatest in SAP Extended Warehouse Management

7/27/2019 3409 the Latest and Greatest in SAP Extended Warehouse Management

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The Latest and Greatest in

SAP Extended Warehouse Management

Richard Kirker May 2011



© 2011 SAP AG. All rights reserved. 2

Agenda

Overview – Why Did We Develop SAP EWM?

Integration

Enhancement Pack 1 for EWM

Efficiency and Cost

Labor Management and Warehouse Order Processing, Material Flow

Systems

Visibility and Analytics

Business Pain Points and EWM Compatibility

Customer Status and Value of EWM

Wrap-up




WarehousingWhere do we come from?

1975

1970 1980 1990 2000

First software

systems support

warehouse

operations

Optimization

strategies

Connectingto relational

databases Wireless

data

transfer

EDI

Connecting

Pick-by-light

systems

First RFID

eSOA

Browser

Technology /

Pick by voice

R/3

Release

2.0/2.1

R/3

Release

3.0/3.1

R/3

Release

4.0

R/3

Release

4.5

R/3

Release

4.6

R/3

Release

4.7 EE1

R/3

Release

4.7 EE2

SCM

EWM 5.0

SCM

EWM 5.1

SCM

EWM 7.0

Storage Units

ParallelProcessing

Integration

PP

QM

LIS

RoughWorkloadEstimate

PickingWaves

Two Step

picking Warehouse

Monitor

HR Integration

DecentralWM

Prototypeof RF

Native RF/ SAP Console

HUM

Packing

Task &ResourceMngmt.

ERP EWM

XD

YM

VAS

Slotting

Rearrange-ment

WarehouseOrders

WarehouseMonitor

InternalRouting

LaborMgmt

MFS

WH Cockpit

RFIDIntegr.

BatchMgmt

Serial Nr

CatchWeight

ESA

GraphicalWH Layout

ProductionSupply

Merchandise Distrib.

XD Task

Interleaving

Evolution of Warehouse Operations

SCM

EWM 7.1

2010

Integrationto LE-TRA

Enhance-ments toClaims &Returns

BOBJIntegration

Enterprise Focus Network Focus




How do we coordinate the flow of materials and information?

How do we optimize the flexibility, cost, and efficiency of thelogistics processes?

How can we achieve complete stock transparency and always

know exactly what is in the warehouse and where?

How can we trace the history of the warehouse processes in fine

detail?

How can we organize warehouse operations to maximizeefficiency and minimize errors and cost?

How do we better manage value-added distribution processes?

How can we efficiently bill our customers for rendered services?

I need to quickly onboard new customers – how can I do that?

How can we depict multiple customers within the warehouse?

How can I implement customer-specific put-away and retrieval

strategies?

What Keeps the Logistics Director Awake at Night?Typical CEO Questions – When it Comes to Warehousing …

Source: ddd

High Warehouse

Productivity/Efficiency

Inventory Accuracy

Better Space Utilization

Better Customer Service

Integrated Warehousing

and Logistics

Handling Resources




Warehouse Objectives

Demand View

High Warehouse

Productivity/Efficiency

Picking Wave Management

Replenishment

Labor Management

Integration with Material Flow Systems

Warehouse Monitor

Warehouse Analytics

RF, RFID Enablement

Warehouse Order Creation

Physical Inventory

Tracking and Tracing

Slotting and Rearrangement

Pick from Goods Receipt

Value Added Services

Quality Management Yard Management

Transportation Cross Docking

Resource Management

Flexibility & Scalability

Transparency of Structure andProcesses

Inventory Accuracy

Better Space Utilization

Better Customer Service

Integrated Warehousing

and Logistics

Warehouse Objectives IT Requirements/Functionality

Handling Resources

IT capabilities are the key to theWMS selection process

% of respondents citing as

among their top 3 challenges

33 %

Insufficient warehouse

technology

Visibility in and out

of the warehouse

Warehouse layout

prohibits higher

throughputs without a

major overhaul

Poor best practice

sharing

across locations/units

Lack IT resources to

supportwarhouse technology

initiave

10 % 20 % 30 % 40 % 50 %

37%

47%

48%

52%

Top Barriers to Better Warehouse Performance

On-boarding New Customers

33%

Source: AberdeenGroup©




Market Situation

Warehouse analytics for score carding,

metrics and analysis

Dashboard providing views into

warehousing activity, order status, and

inventory availability

Slotting or layout optimization tool

Cross-docking and flow through support

RFID tagging support

Labor management system

33%

10% 20% 30% 40% 50%

35%

40%

56%

59% -Plan to adopt29% -Have today

34%

30%

27%

12%

29%27%

Warehouse Technology Adoption Rates


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Functional Comparison EWM and ERP WM




ERP WM




EWM



SAP Extended Warehouse ManagementSolution Overview

Inbound Processing Storage and Operations Outbound Processing

C o r e W a r e h o u s e O p e r

a t i o n s a n d I n v e n t o r y M a n a g e m e n

t Receive ASN data

ASN Validation & Correction

Transporation Unit Arrival

Manage Transportation Unit

Goods Receipt

Putaway Bin determination

Unload Transportation Unit

Internal Routing

Slotting

Deconsolidation

Putaway

Returns / Reverse Logistics

Rearrangement Order deployment

Inventory Counts / Record Accuracy

Replenishment

Freight Order Management

Route Determination

Wave Management

Picking Bin Determination


Work Assignment

Picking

Packing

Staging

Loading & Goods Issue

Kit-to order

Transportation Cross Docking

Picking fr. Inb./ Push Deployment

Yard Management

Packaging Specification

Integration to GTS

Integration to EH&S

Integration to QIE

RF support for all exec.processes

Batch Management

Material Flow System

Serial Numbers

C r o s s

P r o c e s s e s

S u p p o r t i n g

F u n c t i o n s

SAP SCM-EWM 5.0.

Goods Receipt - Optimization

Kit-to stock

Manual outbound deliveries

RFID Enablement

Warehouse Cockpit

eSOA enablement

Catch Weight

Labour Management

SAP SCM-EWM 5.1.

Production Supply

Opportunistic Cross Docking

Merchandise Distr. X-Docking

Task Interleaving

Execution Constraint

Semi-System-Guided work

Graphical Warehouse Layout

SAP SCM-EWM 7.0.

SAP SCM-EWM 7.1.

Integration to Transp. Processes Integration to BOBJ (Dashboards)

Claims & Returns



EWM Deployment Options und Focus

Separate IT platform (SCM)

Few or many locations – can be operated from one central SCM platform

Scalability from centralized or decentralized SCM platform Supply network orientation by integration with processes for planning, order, fulfillment, and returns management

New functions, like slotting/rearrangement, labor management, graphical warehouse layout, true multi-client ability, MFSintegration, catch weight enabled, etc.

Logistics service provider multi-customer warehouses

SCM Extended Warehouse Management

Multiple EWM’s connected

to one ERP back end

Inventory

Management

SAP ERP

Multiple ERPs

Connected to 1 EWM

Inventory

Management

SAP ERP

Inventory

Management

Extended

Warehouse

Management

SAP ERP

ExtendedWarehouse

Management

SAP SCM

ExtendedWarehouse

Management

SAP SCM

Inventory

Management

SAP ERP

ExtendedWarehouse

Management

SAP SCM

EWM Add-On

Deployment



Agenda


Integration


Efficiency and Cost


Systems




Wrap-up



Overview: CIF – Interface between ERP and SCM

SCMERP

Remote-

Function-

Call (RFC)

Core Interface

(Data Selection

and Extraction)

Master Data /

Transaction Data

Master Data /

Transaction Data



Organizational Data Transfer via CIF

Initial Data

Transfer

Change

Transfer

EWMERP

Plant

Customer / Supplier

Shipping Point

MRP Area

Supply Chain Unit

(with Category)

Product

Master Data

Material Master

CIF

Master Data



Transactional Data Changes via CIF

EWMERP

Deliveries

Stock Movements

Transaction Data

qRFC

Transaction Data

Stock Movements

Deliveries



Agenda


Integration


Efficiency and Cost


Systems




Wrap-up



Enhancement Pack 1 Now in Ramp-Up

Integration with Transportation Processes

Advanced Returns Handling in the

Supply Network

Analytics




ERP Transportation Management Integration – Concept

Integration

The ERP Transportation Management integration in EWM is based on the IDoc interface already existing in SAP ERP.

Apart from the new interface the new functionality is mainly integrated in existing EWM functionalities. According to this

shipping and receiving objects like Transportation Units and Vehicles as well as Delivery Processing objects and functions

are reused.

IDoc

IDoc

System Requirement

The EWM – ERP Transportation Management (LE-TRA) integration is only running if an integrated SAP ERP 4.6c (or higher

releases/EHPs) with SAP Extended Warehouse Management (EWM) 7.0 including SAP enhancement package 1 are in

use.

TransportationUnits

ERP DeliveryDocument

ShipmentDocument

EWM DeliveryDocument

qRFC

Preliminary Plan – Subject to Change




ERP Transportation Management Integration – Features

Main Features

The main features of the integration of ERP Transportation Management (LE TRA) with EWM are:

Receiving of a planning result in EWM about

which outbound deliveries are to be shipped out

when (times)

how (e.g. route, carrier)

by which shipment

Distribution of the execution result from EWM to ERP on how a shipment has left the warehouse

which outbound deliveries are shipped out

when (times)

how

by which shipment

Receiving of a planning result about

which inbound deliveries are to be received

when (times)

how (e.g. carrier)

by which shipment

A smooth integration of transportation management planning results, in terms of a extended staging area and door

determination and an extended consolidation group determination, into the internal warehouse processes.Preliminary Plan – Subject to Change




Transportation Planning Scenarios (1/3)

ERP EWM

Outbound Delivery

Goods Issue Posting for

Outbound Delivery

Vehicle*

Outbound Delivery

Order

Outbound Delivery Final

Delivery

Outbound Delivery

Requestreplication

Shipment

SHPMNT05

* Using Vehicles is optional and depends on settings on Means-of-Transport

[/SCWM/PM_MTR]

Transportation Units

Picking

Packing

Staging

Loading

Update

Shipment

Update

locking

unlocking

ppf-Action triggered on goods issue posting

/SCWM/SR_SEND_SHPMNT

Transportation Planning in LE-TRA






ERP EWM

Outbound Delivery

Goods Issue Posting for

Outbound Delivery

Vehicle*

Outbound Delivery

Order

Outbound Delivery Final

Delivery

Outbound Delivery

Requestreplication

SHPMNT05* Using Vehicles is optional and depends on settings on Means-of-Transport

[/SCWM/PM_MTR]


Picking

Packing

Staging

Loading

update

Shipment

ppf-Action triggered on goods issue posting

/SCWM/SR_SEND_SHPMNT

Transportation Planning in EWM






ERP EWM

Inbound Delivery

Inbound Delivery

Notification

Goods Receipt for

Inbound Delivery

Inbound Delivery

replication

Vehicle*

Shipment

SHPMNT05


Unloading

Goods Receipt

update

locking

unlocking

Transportation Planning for Inbound Shipments





Agenda


Integration


Efficiency and Cost


Systems




Wrap-up




Warehouse Order Creation Process

A list of warehouse requests are created

These warehouse requests will be grouped

into one wave

Based on the wave, numerous warehouse tasks

(WTs) will be created

All WTs will pass the Black Box warehouse

order creation. Depending on customizing,

warehouse orders can contain WTs from

different deliveries

WHR1WHR1WHR1WHR1

WHR 1

WHR1WHR1WHR1WHR1WT 1

WHR1WHR1WHR1WHR1WT n

WO 1

WHR1WHR1WHR1WHR1TO

WO 2

WHR1WHR1WHR1WHR1TO

WO n

WHR1WHR1WHR1WHR1TO

Warehouse Order

Creation

Wave 1




Warehouse Order Creation – Schematic Flow

WHR 2

WHR 1

1

WTWT

WT WT

WT

WTWT

WT

WT

WT

2

AA 02WT

1

WT

3

WT

2

WT

4

4

Try WOCR3

AA 02WT

1

WT

2

6

Try WOCR2

Created Warehouse

Order 4711

WT

3

WT

4

5

Created Warehouse

Order 4712

WT

1

WT

2

7

AA 01

a) WOCR1

b) WOCR2

c) WOCR3

AA 02

a) WOCR3

b) WOCR2

AA 02

a) WOCR1

WO Creation Rules (Customizing):

WT WT

WT WT WT WT

WT

AA 01

AA 02

AA 03

WT

WT

3

Grouping by Activity Area:

WHR: Warehouse Request

WT: Warehouse TaskWOCR: Warehouse Order Creation Rule

AA: Activity Area




Wave Management

Delivery x

Dx Item 1

Dx Item 2

Dx Item 3

WM request x

Item 1

Item 2

Item 3Wave

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

Bundle assigned

to a worker

WO Item 1WO Item 2

WO Item 3




Wave Handling: Grouping of Delivery Lines

WR: Warehouse Request




Efficiency and Cost

Labor Management

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

Get the right person to the right place at the right timeTrack people throughout the day and measure performance on individual tasksMeasure the quality and safety for each employee’s performanceProvide alerts when performance falls below expectationsCalculate costs and incentives for employeesSimulate impacts to labor as a result of changes to the process flow or inventoryHighlight the cost and efficiency of individual employees, facilities, teams, and the enterprise

Labor management modules are used to better manage the timeand productivity of warehouse workers. They consist of the ability to

plan, measure, view, and simulate labor activities.




Labor Measurement and KPIs

Labor Measurement and Key PerformanceIndicators (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)




Planning and Simulation

Standards creation and feedback

Traditional measurement: Measure lines per hour, cases perhour, 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




MFS

SAP ERP

PLC

3rd Pty.

MFS

SAP WM

SAP ERP

PLC

SAP ERP

PLC

3rd Pty.MFS

3rd Pty.WHS

Stock

Warehouse

Management

Material Flow

Machine Control

SAP ERP

SAP EWM

PLC

EWM

Variants

RFC Adaptor RFC Adaptor

SAP WM

SAP TRM

3rd Pty.

MFS




EWM Controls Movement Steps

PLC

EWM

Aisle 1 Aisle 2

a) Scanner-Message

HU 1at CP01

b) Task HU 1

From CP01

To CP02

CP02

Scanner 1

Interim

Destination

TCAR

Scanner read

Move

Final

Dest.

CP01





PLC

EWM

Aisle 1 Aisle 2

Task

confirmation

Warehouse Task

CP02

CP11

Scanner 1

TCARCP02

Final Dest.

Interim Dest.

Sensors

Drives TCAR and Conveyors





TCAR

PLC

EWM

Aisle 1 Aisle 2

Task

Confirmation

Warehouse Task

CP11

Scanner

1

CP11

Sensors

Final Dest

Interim Dest

CP12

Drives Conveyors





PLC

(for Rack Feeder)

PLC(for conveyors)

EWM

Aisle 1 Aisle 2

Task

Confirmation

CP12

1

Final Dest.

CP12

Sensors

Bin

Drives Rack Feeder

Warehouse Task to Rack Feeder

Final task confirmation




Agenda


Integration


Efficiency and CostLabor Management and Warehouse Order Processing, Material Flow

Systems




Wrap-up




Embedded Analytics:Crystal Reports in Warehouse Monitor




Labor Management – Executed WorkloadxCelsius Dashboard




Warehouse Performance – Customer Order Items

Crystal Reports




Warehouse Monitor – Visibility and Usability (cont.)




Warehouse Monitor – Visibility and Usability (cont.)




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 tocritical situations quickly




Agenda


Integration


Efficiency and CostLabor Management and Warehouse Order Processing, Material Flow

Systems




Wrap-up




EWM AdoptionStatus: April, 2011

EWM Live Customers and Sites

0

20

40

60

80

100

120

12/31/07 12/31/08 12/31/09 12/31/10

Live Sites

Live Customers




Countries with active EWM deploymentsApril 2011




How Does EWM Make the Customer Experience a Better

One?

SAP EWM key capabilities

Quality, efficiency, and performance Flexible modelling of warehouses and processes

Stock and process transparency

Optimization in process execution with seamless technology

integration

Integration within the overall SAP logistics solution

High integration with other solutions Integration to technical components (RFID/MFS)

SAP ERP environment and external software components (SAP

NetWeaver)

SCM planning integration (e.g., slotting/push deployment)

Best-in-class product For all kind of warehouses

For all industries and complexities





Central monitoring of the warehouse activities

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

Optimize warehouse constantly(Housekeeping)

Handling of multi-step picking and putaway

Finding the best location in the warehouse based on

product demand (fast changing) and product dimensions

Assign the right workload (weight, volume,number of items) to the warehouse worker,

that can be picked together

Wave picking based on flexible criteria

Internal routing

Slotting

Rearrangement


Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs





Optimize warehouse processes by using RFID technology

Connect and control an automatic warehouse

Create Inbound Deliveries based on shipping documents

Manage the time and productivity of warehouse workers

Monitor the performance of workers, teams, warehouse areas

Automate your business processes and

react flexibly to changes in your business processes

Create kits and transfer to stock

Labor Management

Warehouse Cockpit

Expected Goods Receipt

eSOA Enablement

Material Flow System

Kit-to-Stock

RFID Enablement

Create Outbound Delivery manuallyGenerate outbound delivery orders indirectly




Integration


Efficiency and Cost

Labor Management and Warehouse Order Processing, Analytics, Cross Docking

Visibility and Usability

Graphical Warehouse Layout, Warehouse Monitor, Cockpit



Wrap-up

Agenda




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

EWM Landing Page on sap.com

www.sap.com/ewm

* Requires login credentials to the SAP Service Marketplace

http://www.sap.com/ewm

http://www.sap.com/ewm



Thank You!

Contact information:

Richard Kirker

[email protected]

mailto:[email protected]

mailto:[email protected]

Documents

3409 the Latest and Greatest in SAP Extended Warehouse Management