1. SAP Extended Warehouse ManagementFrdric MAINAUD Solution Expert SAP FRANCE Mardi 2 juin 2009

2. AgendaHistory and Release Functionalities ERP WM versus SCM EWM 7.0 Choice criteria Questions ? SAP 2009 / Page 2 3. History of SAPs Warehouse Management1993199519971998200020021993 - R/3 Release 2.0/2.12003200420072002 - R/3 Enterprise Release (Ext 1.1)Storage Units Parallel ProcessingTask & Resource Management (TRM)2004 - R/3 Enterprise Release (Ext 2.0)1995 - R/3 Release 3.0 / 3.1 Integration Production Planning Quality Management Logistics Information SystemERP WM Yard Management Cross-docking Value Added Services1997 - R/3 Release 4.02005 SCM 5.0 SPMRough Workload Estimate Picking Waves / Two Step Warehouse Monitor Integration to HR1998 - R/3 Release 4.5 WMS Stand Alone Prototype of RF2000 - R/3 Release 4.6 Native RF / SAP Console Handling Unit Management Packing Station SAP 2009 / Page 32005Extended Warehouse Management2007 SCM EWM 5.1 Labor management RFID Enablement ...2008 SCM EWM 7.0 Production Supply Graphical Warehouse Layout ... 4. Service Parts Alliance for Service Parts Management (2002) Concept: ~ 80% common processes/ technology Leverage Ford and Cat Logistics volumes Commercialize system software Exit development Become implementers and integrators (Cat Logistics)Intellectual Property Know-how Capability ScalabilityBenefits: Lower development costs International capabilities Natural (planned) technology upgrade path Increase 3PL market opportunities (Cat Logistics) Shared Risks between Cat Logistics, Ford, and SAP SAP 2009 / Page 4The Result: State of the Art Service Parts Management Solution Across Multiple Industries Sales (CRM) Planning (SPP) Sourcing (ATP) Warehousing (EWM) Coordination (ERP) 5. Decision SCDP CAT/Ford to develop new WMSReasons for developing a new SCM-based WMS rather than delivering a highly modified LES: Requirements for data volume, performance and process flexibility made a new architecture necessary Following the Decentralized SAP Warehouse concept Extend the basic concept of Transfer Orders to enable process flexibility Extend Inventory concept to enable data flexibility and accuracy High risk to change architecture in a mature application with thousands of live customers (contract: 80% to be retrofitted into standard!) Mind Shift from Managing Stocks to Controlling Processes SAP 2009 / SCM Review Project 2007 Page 5 6. SAP WM Solution OfferingsRaw MaterialsSimple Requirements SAP 2009 / Page 6SCM EWM DecentralizedERP WM with Extensions (TRM, YM, VAS) DecentralizedERP WM DecentralizedERP WM CentralizedFinished GoodsComplex Requirements 7. Enterprise, SCM EWM and Network FocusCentralized ScenarioDecentralized ERP ScenarioERP LogisticsERPOther ERPERPFI/COSAP ERPSAP LES WMSAP LES WMExtended Extended Extended WM WMWMSCM EWM Add-OnSAP SCMWMWM decentralizedSAP Warehouse Management in SAP ERPSCM Extended Warehouse Management(centralized or decentralized WM)Enterprise Focus SAP 2009 / Page 7Network Focus 8. Overview of Processes with decentralization ERPSAP EWMERPSales OrderPurchase Order BAPIOutbound DeliveryReplicationBAPI Goods Issue ConfirmationIn / Outbound DeliveryBAPI Inbound Delivery ReplicationPosting of goods movementBAPI ConfirmationInvoiceInvoiceNote: Master Data replication uses CIF SAP 2009 / Page 8Goods Receipt 9. Agenda1. 2. 3. 4.History and Release Functionalities ERP WM versus SCM EWM 2007 Choice criteria Questions ? SAP 2009 / Page 9 2007 9 10. EWM Inbound Process OverviewSlottingReceive ASN DataPutaway Bin DeterminationTransport Unit ArrivalUnload Transport UnitManage Transport UnitGoods ReceiptDeconsolidation(Internal Routing)Putaway Process Exceptions/Manage Work in Process SAP 2009 / Page 10 11. EWM Goods Receipt Process using Routing of HUs 1Quality InspectionGR-ZoneDoor 1Repack/ Deconsolidate 4362Door 2Door 357Pallet Storage 8Small Parts Storage SAP 2009 / Page 11 12. EWM Outbound ProcessOrder/ DeploymentWork AssignmentRoute DeterminationPickingWave ManagementPackingPicking Bin DeterminationShipping StagingProcess Exceptions/Manage Work in Process SAP 2009 / Page 12Warehouse OrdersLoading and Goods Issue 13. Overview: EWM Goods Issue ProcessPacking Work CenterGI-Zone & Packing (2) Door 1PHU1PHU2Door 2Pallet storage PHU1 PHU2Small Parts Storage SAP 2009 / Page 13Door 3 14. Documents in the Outbound Process WHR 1 WHR1 WHR1 WHR1 WHR1A list of Warehouse Requests is createdWave 1These Warehouse Requests are grouped into a WaveTask 1 WHR1 WHR1 WHR1 WHR1Task n WHR1 WHR1 WHR1 WHR1All Tasks will pass the Black Box warehouse order creationWarehouse Order Creation (Bundling)WO 1WO 2WO nTask WHR1 WHR1 WHR1 WHR1Task WHR1 WHR1 WHR1 WHR1Task WHR1 WHR1 WHR1 WHR1 SAP 2009 / Page 14Based on the wave Warehouse Tasks will be createdWarehouse Orders are created according to the Creation Rules. They can contain items from multiple deliveries 15. Warehouse Order Creation Schematic Flow Grouping by Activity Area: AA 01WT WHR 1WTWTWTWTWT WTAA 02 WTWHR 2WTWTWTWTWTAA 01AA 02a) WOCR1 a) WOCR3 b) WOCR2 b) WOCR2WTc) WOCR3WT WTWO Creation Rules (Customizing):WTAA 03WTWT1 23 Try WOCR3 Created Warehouse Order 4711 WT 1WT 3WT 2WT 4AA 02 WT 34WT 45 Try WOCR2WT 1WT 26 SAP 2009 / Page 15AA 02Created Warehouse Order 4712 WT 17WT 2AA 02 a) WOCR1 16. EWM Internal ProcessesKittingReplenishmentProcess Exceptions/Manage Work In Process SAP 2009 / Page 16Rearrangement 17. Additional Warehousing ProcessesYard ManagementQuality Inspection EngineManagement and Tracking of Vehicles and Transportation Units from yard check-in, throughout the yard movements tasks, and yard checkoutService oriented Quality Inspection Engine to support the quality processes for warehouse managementEnvironmental Health & Safety EH&S data and checks used in Product Storage, Shipping Documents and Transportation RoutingProcess Exceptions/Manage Work In Process SAP 2009 / Page 17Foreign Trade/ Bonded Warehouse Customs management SPL Screening Re-exports Duty unpaid returns 18. Labor ManagementLabor 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 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 SAP 2009 / Page 18 19. Warehouse CockpitIntended for Supervisor and Warehouse ManagerMonitors team performanceMonitors the performance of areas or the whole warehouseAt-a-glance view of several key figures enables you to react to critical situations quickly SAP 2009 / Page 19 20. Agenda1. 2. 3. 4.History and Release Functionalities ERP WM versus SCM EWM 7.0 Choice criteria Questions ? SAP 2009 / Page 20 21. SAP WMS solutions ERP WM vs. SCM EWM 7.0 Choice criteriaEWM 7.0ERP WMSeparate component SCM EWM or Add-on ERP Part of SAP ERP all releases Standard ERP WM product TRM works with ERP WM 4800 customers are live with ERP WM We continue to support ERP WMDoes not replace ERP WM New WMS product. Developed for large and complex warehouses/distribution centers with high volume and velocity Can be used in combination with ERP WM in the same landscape 14 sites are live for 11 customers (april 2009 status) + 60 projects in progress with more than 20 are due to go live before Dec 2009 SAP 2009 / Page 21 22. SAP WMS solutions LES WM vs. EWM Choice criteria Key Question: When do I choose ERP-WM and when do I choose SCM EWM Guidelines:Characteristic / RequirementSCM EWMERP WMERP DWMService Parts Industry Highly Complex Warehouse Requirements Picking, Packing, Deconsolidation, Task Management, YM, VAS, Kitting, Slotting, Contract Packaging, Extensive Cross-Docking, RF, AutomationBasic to Complex Warehouse Requirements Picking, Packing, Task Management, YM, Light VAS, Light Cross-Docking, RF, AutomationHigh VolumeDWM : Decentralized Warehouse Management SAP 2009 / Page 22 23. SAP WMS solutions LES WM vs. EWM Choice criteria Characteristic / RequirementStock Location Basic Pick / Placement Strategies Wave Picking / Wave Management Replenishment Resource Management Yard Management Value Added ServicesCross DockingPhysical Inventory SAP 2009 / Page 23SCM EWMERP WMERP DWM 24. SAP WMS solutions LES WM vs. EWM Choice criteria Characteristic / RequirementRF Screen Enhancement Deconsolidation During Putaway Stock IDs Slotting / Rearrangement Kitting Quality Inspection Customer Returns Discrepancy Processing for Stock Transport Orders Delivery Split for Outbound Orders EH&S Integration SAP 2009 / Page 24SCM EWMERP WMERP DWM 25. SAP WMS solutions WM vs EWM Selections criteriasCharacteristic / RequirementSerial Numbers Labor ManagementDelivered BI Content SAP 2009 / Page 25 2007SCM EWMERP WMERP DWM 26. SAP Extended Warehouse ManagementQuestions ? SAP 2009 / Page 26 2007 26 27. Thank you! SAP 2009 / Page 27