furnishing dunelm’s warehouse with sap ewm _case study.pdf · sap logistics specialists. the...
TRANSCRIPT
Such expansive growth, had presented Dunelm with a storage challenge.
• Dunelm had outgrown its large warehouse facility in Stoke and had become reliant on outside storage to house its products.
• Dunelm needed a solution that would work for its diverse product range which includes large furniture units, that cannotfitonpallets,aswellassmallscalehouseholditems.
• Dunelm’s existing SAP WM system had already undergone a series of enhancements and was struggling to cope with their complex processes.
SAP Logistics Specialists
The Dunelm Challenge
Marketing leader in the £11bn UK homewares market
First bricks and mortar store in 1984
165 stores across the UK
9000 employees
SAP Logistics Specialists
The Objective
Build a brand new warehouse that:
Implement SAP EWM in their new warehouse to:
Integration with Dunelm’s store delivery 3PL was required to replace paper based systems.
Tasks are assigned to users based on location, so they only work on tasks located in the area they are currently in. When all the tasks in the queue are complete, they’re automatically assigned the next nearest tasks from an alternative task queue, so work never runs out.
Project partners, Jungheinrich, calculated the most efficient routes for their automated and semi-automated guided vehicles.
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2Improve accuracyIncrease productivity
Covers 525,000 sq ft
Ends Dunelm’s reliance on outside storage
Over 63,000 pallet locations 76 doors 200 parking spaces
Boost efficiency
Is an enjoyable place to work
The EWM implementation ran at the same time as the physical build of the new warehouse.
• The implementation team had to be based at an alternative site, in Dunelm’s existing warehouse, as the project team had to be based at Dunelm’s existing site, while the new facility was being built.
• The team had to design and implement systems without the ability to see processes in action.
• Thego-livedeadlinehadtocoincidewiththephysicalbuildfinishdate.
SAP Logistics Specialists
Practical Challenges
Stock from Dunelm’s existing warehouse and outside storage needed to be migrated to the new warehouse.
• Instead of employing new staff who were unfamiliar with Dunelm’s systems, a proportion of staff at the existing warehouse began work at the new site as they were familiar with Dunelm’s processes.
• The staff who stayed at the original site were still required to maintain the usual workload.
• The migration of stock to the new site had to be planned so it didn’t exceed the capacity of the staff working in the new warehouse.
• The original warehouse used SAP WM so orders that required picking from both sites needed careful management.
SAP Logistics Specialists
Migration Challenges
Goods Receipt:YardManagementwasintroducedtoimprovetheefficiencyandreal-timetraceabilityoftruckmovements.
• When a delivery arrives at the site, it is checked in and directed to a parking space using EWM’s Yard Management.
• 90% of stock is delivered unpalletised in containers.
• Stock is handballed onto pallets and license plates are attached.
• Users are advised of the TiHi quantity (the number/layout of items that can be built onto a pallet) via the RF device.
• When a pallet is built, its location is scanned. This triggers a message to an Automatic Pallet Mover (APM) via EWM’s Material Flow System (MFS).
• TheAPMmovesthepallettoaspecifiedpickanddroplocationreadytobeputaway.
SAP Logistics Specialists
The Solution: Inbound Processes
Improves Efficiency Automates Processes Real-Time Traceability
Putaway:Dunelmrealisedthatreducingthetraveldistancebetweendifferentputawaytaskswouldhavesignificant cost savings.
• Their system has been designed to allocate tasks based on warehouse location.
• Thesystemlogicidentifiestheclosesttrucktothejobandautomaticallyassignsittothetask.
• This putaway process was achieved using standard EWM putaway strategies and Location Orientated Storage Control (LOSC).
SAP Logistics Specialists
The Solution: Inbound Processes
Increases Productivity Improves Accuracy Automates Processes
Resource Management:Previously, Dunelm’s warehouse supervisors were responsible for assigning tasks. Now, they only intervene by exception.
• Each warehouse user is assigned a resource group and, when they start work, they log on to a resource (for example, a reach truck).
• Tasks are assigned based on location, so tasks on the same aisle are completed consecutively, by the same user.
• If all tasks in a queue are completed, users are automatically assigned nearby tasks from an alternative task queue, so work never runs out.
• Tasks are never assigned to a user on a resource that is not capable of completing the task. For example, a task in a high bay is never assigned to a user on a pallet truck.
• Warehousesupervisorshavemoretimetomonitorandtroubleshoottofurtherimproveprocessefficiency.
SAP Logistics Specialists
The Solution: Internal Processes
Reduces Labour Costs Reduces Downtime Improves Productivity
3PL Integration:Dunelm uses 3rd party transportation planners. Before EWM was implemented, the transport plan was sent to the warehouse team on a spreadsheet. This manual process has now been automated.
• The plan is sent via an interface to EWM. This assigns deliveries to vehicles and updates the time the vehicle needs to leave site.
• IDocs are sent from the external company to Dunelm’s EWM system which assigns deliveries to vehicles and specifiesthetimethevehicleneedstoleavethesite.
• EWM automatically releases a pick wave for a truck at the required time to meet the deadline of the load leaving the site.
SAP Logistics Specialists
The Solution: Outbound Processes
Reduces Errors Speeds Up Processes Improves Traceability
Picking:Pick waves are automatically released for each delivery truck.
• Apickwalkisgeneratedbydeterminingthemostefficientroute.
• The picker is sent to the correct area based on whether an individual pick, carton pick or pallet pick is required.
• Individual items are sent to pallet consolidation areas using Process Orientated Storage Control (POSC) logic, so they can be built into a full pallet to reduce the number of pallet footprints.
• Allitemsonthepalletarescannedtoconfirmthefullorderhasbeenpicked.
SAP Logistics Specialists
The Solution: Outbound Processes
Automates Processes Increases Efficiency Improves Accuracy
Improves Accuracy Increases Traceability Customer Satisfaction
Loading:Yard management is also used for outbound processes.
• Vehiclesaredirectedfromparkingspacestothecorrectdoor.ThemoveisconfirmedviaRF.
• Pallets loaded onto trucks are scanned to make sure the correct stock is on the right truck, they are loaded in the correct drop sequence and that the delivery is complete.
• When a vehicle leaves the site it is ‘checked out’ by the gatehouse using Yard Management. This triggers the Goods Issue of the deliveries assigned to the vehicle which leads to the printing of transport documentation and maintains accurate stock levels.
SAP Logistics Specialists
The Solution: Outbound Processes