SCM Extended WarehouseManagement Detailed Overview

Elinor Castell

Solution Management EWM

SAP AG

AGENDA

1. Introduction & Roadmap

2. Detailed Overview

3. Upcoming Functionality in EWM 7.01

4. Summary

SAP: 16+ Years of Warehousing Expertise

Extending the Scope of our Warehousing solutions

20081993

• StorageUnits

• ParallelProcessing

1995

Integration• PP• QM• LIS

1997 1998

DecentralizedWM• Prototype

of RF

2000

• Native RF/SAP Console

• HUM• Packing Stn

2002

Task andResourceManagement

R/3Release2.0/2.1

R/3Release3.0/3.1

R/3Release

4.0

• Rough WorkloadEstimate

• Picking Waves/Two Step picking

• WarehouseMonitor

• Integration to HR

R/3Release

4.5

R/3Release

4.6

R/3Release4.7 EE1

2003

ERP EWM• XD• YM• VAS

R/3Release4.7 EE2

2005

SCMEWM5.0

SCMEWM5.1

SCMEWM7.0

20092006

•Slotting•Rearrange-ment

•WarehouseOrders

•WarehouseMonitor

•InternalRouting

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

SCMEWM7.1

•Integrationto Transp.processes

*ReverseLogisticsenhancements

•GraphicalWH Layout•ProductionSupply•MerchandiseDistrib. XD

•TaskInterleaving

2010

Enterprise, Service Parts Execution and Network Focus

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

Enterprise Focus SPE / Network Focus

Integrated Scenario

SAPSAPERPERP

Logistics FI/CO

WM

Decentralized ERP Scenario

ERPERP

SAPSAPLESLES

SAPSAPLESLES

OtherERP

Dec WM = full SAP ECC system

WMWM

SCM Extended Warehouse Management

SCM EWMAdd-OnExtended

WMExtended

WMExtended

WM SAP SCM

ERPERP

ERPERP

AGENDA

1. Introduction & Roadmap

2. Detailed Overview

3. Upcoming Functionality in EWM 7.01

4. Summary

EWM Inbound Process Overview

Process Exceptions/Manage Work in Process

Receive ASN DataASN Validationand Correction

TransportUnit Arrival

ManageTransport Unit

UnloadTransport Unit

GoodsReceipt

Deconsolidation

(InternalRouting)

Putaway

Slotting

Putaway BinDetermination

New New

New New

New

New

New Inbound Processes

Transportation Cross dock

Returns/Reverse Logistics

Pick From Receiving/Push Deployment

Packaging Execution

New New

New New

EWM Outbound Process

WarehouseOrders

Order/Deployment

RouteDetermination

WaveManagement

PickingBin

Determination

PickingWorkAssignment Packing Staging

Loadingand

Goods Issue

Process Exceptions/Manage Work in ProcessNew

New

New

EWM Internal Processes

Kitting

Replenishment

Inventory CountsRecord Accuracy

Rearrangement

Process Exceptions/Manage Work In ProcessNew

New

New

Additional Warehousing Processes

Yard Management Quality InspectionEngine

New

Management andTracking of Vehicles/Transportation Unitsfrom yard check-in,throughout the yardmovements tasks, andyard check-out

Service oriented QualityInspection Engine to supportthe quality processes forwarehouse management

EH&S data and checksused in Product Storage,Shipping Documentsand TransportationRouting

New

EnvironmentalHealth & Safety

New

Foreign Trade/Bonded

Warehouse

Customs managementSPL ScreeningRe-exportsDuty unpaid returns

Process Exceptions/Manage Work in ProcessNew

Central monitoring of the warehouse activities

Handling Resources (Fork lift, picker) in the warehouseand 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 onproduct demand (fast changing) andproduct 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

Warehouse Order Creation

Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs

Example of Business Requirements & EWM Functionality

Possibilities of Internal Routing

Layout based internal routing defining intermediate pointsbetween storage types for handling of multi-step picking andputaway

Process oriented internal routing definingmandatory / optional steps

Loading / UnloadingPackingCountingDeconsolidationPutaway / PickingStaging

Layout Oriented Internal Routing

High rack areaB

Goods receipt areaA

Check-pointY

Handling Unit

HU Warehouse Task

Z NodeWT not active

Active WT

Z

WT not activeWT active

From To IntermediateA B YY B Z

BasicConcept

WT active

Complex Putaway with Process Oriented Internal Routing

FinalSTypeJK04

Goods ReceiptSType: 9010Bin: GR-ZONE

FinalSTypeJK01

Deconsolidation Station: AP1SType: APDK

1

type: 9030Bin: Door1

2 Step: IB01Unloading

3 Step: IB02

Deconsolidation

4Step: IB03Put-away

Prod. WTMat. 2

Prod. WTMat. 1

Sec:AP1I

Sec: 0001Bin: AP1

Bin:AP1I

Example of Business Requirements & EWM Functionality

Central monitoring of the warehouse activities

Handling Resources (Fork lift, picker) in the warehouseand 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 onproduct demand (fast changing) andproduct 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

Warehouse Order Creation

Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs

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

Slotting

Slotting automatically determines a storage concept for a product.

The system determines the underlying storage parameters that are relevant for put-away on the basisof master data, including:

product datastorage requirement datapackaging data

These parameters describethe storage section in which the product is to be storedthe properties that the storage bin is to havethe putaway strategy that is to be used.

Slotting takes into account master data that is not dependent on the execution process. If the putawayprocess for a product is dependent on execution parameters, this dependency is taken intoaccount later on during storage bin determination. This does not, however, have an effect on theresults of slotting.

Slotting

Slotting determines the following storage parameters and updates the productmaster:

Putaway strategyMaximum quantity in storage typeStorage section indicatorStorage bin types

Slotting could also determine a fixed bin for product

Slotting provides the basis for Rearrangement (carrying out the results of theslotting run)

It is also possible to simulate the slotting run

Example of Business Requirements & EWM Functionality

Central monitoring of the warehouse activities

Handling Resources (Fork lift, picker) in the warehouseand 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 onproduct demand (fast changing) andproduct 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

Warehouse Order Creation

Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs

Rearrangement optimizes warehouse managementand reduces operational costs

Pick Orderbefore Optimization

RearrangementExecution

‚Golden Zone‘for Fast Movers

and...Improved Service Level !

Business Case

60.000 line items a day ~ 450 hours timesaving per day

> 1.000.000$savings per year!

Example of Business Requirements & EWM Functionality

Central monitoring of the warehouse activities

Handling Resources (Fork lift, picker) in the warehouseand 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 onproduct demand (fast changing) andproduct 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

Warehouse Order Creation

Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs

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 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.

WHR1WHR1WHR1WHR1WHR 1

WHR1WHR1WHR1WHR1WT 1WHR1WHR1WHR1WHR1WT n

WO 1

WHR1WHR1WHR1WHR1TO

WO 2

WHR1WHR1WHR1WHR1TO

WO n

WHR1WHR1WHR1WHR1TO

Warehouse OrderCreation

Wave 1

Warehouse Order Creation – Schematic Flow

WHR 2

WHR 1

1

WTWT

WT WT

WT

WT WT

WTWT

WT

2

AA 02WT1

WT3

WT2

WT4

4

Try WOCR3

AA 02WT1

WT2

6

Try WOCR2

Created WarehouseOrder 4711

WT3

WT4

5

Created WarehouseOrder 4712

WT1

WT2

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:

Wave Handling: Grouping of Delivery Lines

Example of Business Requirements & EWM Functionality

Central monitoring of the warehouse activities

Handling Resources (Fork lift, picker) in the warehouseand 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 onproduct demand (fast changing) andproduct 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

Warehouse Order Creation

Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs

Resource Management

Resource Management: Users and equipmentcombination which can be defined as beingallowed to execute work in the warehouse.

RF (automatic or manual)Non-RF environment (manual)Tracked and Displayed in the Warehouse MonitorVisibility of stock on Resources

Resource Type:

Groups resources with similar technical or physicalcharacteristics

Resource Group:

Groups resources for queue assignment purposes

Example of Business Requirements & EWM Functionality

Central monitoring of the warehouse activities

Handling Resources (Fork lift, picker) in the warehouseand 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 onproduct demand (fast changing) andproduct 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

Warehouse Order Creation

Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs

Wave Management

Delivery xDelivery x

Dx Item 1Dx Item 2Dx Item 3

WM request xWM request x

Item 1Item 2Item 3 WaveWave

Wave Creation methods to control amount of workreleased 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...

WarehouseOrder x

Bundle assignedto a worker

WO Item 1WO Item 2WO Item 3

Example of Business Requirements & EWM Functionality

Central monitoring of the warehouse activities

Handling Resources (Fork lift, picker) in the warehouseand 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 onproduct demand (fast changing) andproduct 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

Warehouse Order Creation

Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs

Warehouse Monitor

The warehouse monitor is a central tool for keeping warehouse managers constantly up-to-date as to the current situation in the warehouse and to enable them to initiate appropriateresponses accordingly.

Demo

Example of Business Requirements & EWM Functionality

Central monitoring of the warehouse activities

Handling Resources (Fork lift, picker) in the warehouseand 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 onproduct demand (fast changing) andproduct 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

Warehouse Order Creation

Resource Management

Wave Management

Warehouse Monitor

Transportation Cross-DockingTransportation of HUs across different DCs or WHs

Transportation Cross-Docking

Definition:

Procedure to plan & optimize transportation from source to destination viaintermediate cross-docking locations.

At any intermediate CD location the goods are brought directly from goodsreceipt to goods issue without being put away.

Only operates with HU’s

Transportation cross docking supportsoptimized warehouse processing at intermediate warehouses without the needfor storage or repackingoutbound deliveries from sales orders and stock transport ordersintegration with storage controlfull pallet operations with Pick-HU-WTs (HU only)

Main Features -EWM 5.1

Labor ManagementMeasurement and KPI’sPlanning and SimulationVisualization

Analytics

Warehouse CockpitUse EGF to configure graphical cockpit for visualizationof application data

RFID enablement

Goods receipt optimizationGoods receipt initiated in Extended WarehouseManagement (EWM)Production goods receipt

Kitting enhancementsKit-to-stock

Main Features -EWM 5.1

Batch management enhancements

Batch search in the picking process

Batch Classification during Goods Receipt

Batches in the outbound delivery

Manual creation of outbound deliveries inEWM

ESA enablement

Material Flow System (MFS)

Serial number enhancements

Pick individual serial numbers

Catch-Weight Support

SAP EWM

PLC 1 PLC 2

TCP/IP TCP/IP

RFC-Adapter

Channel 1

Channel 2

Event Res

pons

e

Task

TaskC

onfirmation

„pull“

„push“RFC

Location and HandlingUnit

Serial number /Product

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 andreact 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

Example of Business Requirements & EWM Functionality

Labor Management

Labor management modules are used to better manage thetime and productivity of warehouse workers. They consist ofthe 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 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 theenterprise

Activation of Labor Management

Labor Management is activated by Warehouse Number and Internal ProcessStep

Labor Management can be deactivated for particular External Process Steps

Warehouse EEG1 LM Active

Phys-ical

Inven-tory

Unload-ingPicking VAS

Activi-ties

Packing Decon-solid-ation

QualityInspec-

tion

NonStorageControlMoves

Loading

InternalProcess

Step:

ActivateLM

OilingPaintingShrink-wrapping

ExternalProcess

Step:

Deactivate LM

AdhocMoves

Replenish-ment

Measurement and KPIs

Track people throughout the day and measureperformance on individual tasksCapture direct vs. indirect timeInterface to HR

Time and attendanceCompensation 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 attendinga meeting.

Direct labor• Picking• Put away• Inventory counting• VAS• ...

Indirect labor• Sweeping the floor• Housekeeping• Cleaning• Meeting• ...

Unproductive time• Breaks• Bathroom• ...

Assumption: HRcapturesunproductive timeimplicitly

Assumption: Directlabor is captured inEWM via existingdocuments likeWO, PI document,VAS order, etc.

Assumption: Indirectlabor tasks are basedon external processsteps. You cancapture them viaindirect labordocument.

Indirect Labor Example

Processor

Planning and Simulation

Standards creation and feedbackTraditional measurement: Measure lines per hour, cases perhour, etc.Engineered labor standards: How long should it take tocomplete a specific task?

Workload and capacity planning for different aspectsMeasurement services/formula editorWorkforce and load simulationOperational 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

PreprocessingCreate planned workload

PreprocessingCreate planned workload

PlanDefine planning goal:

• workload• processor• KPI

PlanDefine planning goal:

• workload• processor• KPI

SimulateChange:

• planning goal• workload• processor• KPI

SimulateChange:

• planning goal• workload• processor• KPI

Services• workload• processor• KPI

Services• workload• processor• KPI

Labor Standards

• guesstimates• historical data• engineered standards

Calculate execution time:

Labor Standards

• guesstimates• historical data• engineered standards

Calculate execution time:

View• result• workload• processor• KPI

View• result• workload• processor• KPI

workload

workload

optional

must

optional

must

Planning

Operational Planning:

Operational Planning provides a short-term overview of the warehouse (next hours ordays)Used for short-term determination of work and resourcesRough estimate of workloadConsiders one or more activity areas and external process stepsYou can base it on preprocessingBased on the aggregated values (workload, processor) and measurement services

Simulation

Operational Simulation:

Simulation manual change of planning dataYou can change data in aggregated and detailed viewsChanges in detailed view also changes the aggregated viewPossible to change planning goal in simulation by calling theformula editorYou can recalculate the planning goal based on changed data

Visualization

Events and alertsExceptionsWorkforce analytics and reporting:

Actual vs. planned task timeReview performance data across multiple facilitiesalong common metrics

SAP NetWeaver® BI integrationExtractorsSAP NetWeaver BI contentStrategic planningDrill-down visibility

Executed Workload

Executed workloads contain:

Information about when, what, where, how long, and how much work was plannedActual 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 aparticular employeeEmployees use it to check their efficiencyCan view various time periods (daily to monthly)

Employee Performance: Supervisor’s View

Supervisor’s View …

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 andreact 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

Example of Business Requirements & EWM Functionality

Warehouse Cockpit

Intended for Supervisor andWarehouse ManagerMonitors team performanceMonitors the performance ofareas or the wholewarehouseAt-a-glance view of severalkey figures enables you toreact to critical situationsquickly

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 andreact 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

Example of Business Requirements & EWM Functionality

Daily list of expected deliveries

GR Process Based on Expected Goods Receipt(EGR)

Gate check-in

Goods receipt (GR) preparation

Door assignment

Physical GR

Release Door

New

New

New

Report on ExpectedGoods Receipt (EGR)/Planned DeIivery

Compare delivery papers – systema) EGR Planned Deliveryb) Assign Planned Deliveries toTransport Unit

Compare physical goods – systemIdentify Planned Delivery items

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 andreact 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

Example of Business Requirements & EWM Functionality

eSOA Enablement

Warehouse/Yard Organizational Data

Inbound/Outbound Delivery

Dock Appointments

Transportation Unit Appointments

Vehicle Appointments

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 andreact 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

Example of Business Requirements & EWM Functionality

MFS

SAP ERP

PLC

3rd Pty.MFS

SAP WM

SAP ERP

PLC

SAP ERP

PLC

3rd Pty.MFS

3rd Pty.WHS

Stock

WarehouseManagement

Material Flow

Machine Control

SAP ERP

SAP EWM

PLC

EWM 5.1Variants

RFC AdaptorRFC Adaptor

SAP WM

SAP TRM

3rd Pty.MFS

EWM Controls Movement Steps

PLC

EWM

Aisle 1 Aisle 2

a) Scanner-MessageHU 1at CP01

b) Task HU 1From CP01To CP02

CP02

Scanner1

InterimDestination

TCAR

Scanner read

Move

FinalDest.

CP01

EWM Controls Movement Steps

PLC

EWM

Aisle 1 Aisle 2

Taskconfirmation

Warehouse Task

CP02

CP11

Scanner1

TCARCP02

Final Dest.

Interim Dest.

Sensors

Drives TCAR and Conveyors

EWM Controls Movement Steps

TCAR

PLC

EWM

Aisle 1 Aisle 2

TaskConfirmation

Warehouse Task

CP11

Scanner

1

CP11

Sensors

Final Dest

Interim Dest

CP12

Drives Conveyors

EWM Controls Movement Steps

PLC(for Rack Feeder)

PLC(for conveyors)

EWM

Aisle 1 Aisle 2

TaskConfirmation

CP121

Final Dest.

CP12

Sensors

Bin

Drives Rack Feeder

Warehouse Task to Rack Feeder

Final task confirmation

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 andreact 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

Example of Business Requirements & EWM Functionality

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

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 andreact 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

Example of Business Requirements & EWM Functionality

RFID enabled EWM

Set unload status, confirm WT(with resource user) and post GR

based on ASN

UnloadConfirmationof WarehouseTask

Confirm WT incl. resource, e.g.:- internal stock transfer- change batch no- stock level change

Packing LoadingTagComissioning

Attach boxes/ itemsto Handling Unit,

set status to packed

Update HU andsend ASN

RFID Enabled Inbound Process in EWM

ASN InboundDelivery RFID Unload RFID

PutawayGR Posting

ERP

EWM

AII

1. ASN enriched withEPCs is received

2. InboundDelivery isautomaticallycreated basedon ASN

3. EPC enriched HUInfo is passed toEWM

5. AutomaticGR posting isdone withunloading.

4. A worker movesthe HU through agate with RFIDreader devices. AIIrecognizes themovement, scansthe RFID tag and theinformation is sentto EWM. In EWM theHU unloading statusis updated.

6. The confirmationof HU-WT can bedone automaticallyif the destinationbin has a stationaryreader. Analogunloading the HUidentification(decoded from EPCcode) is sent toEWM and the WT isconfirmed

RFID enabled Internal Warehouse Moves in EWM

EWM

AII

WH Move

a) Warehouse Worker

Scans source bin with barcode –scans RFID HUs and confirms withbarcode destination bin

b) Warehouse worker scans EPCidentified source bin, EPC HU andconfirms to EPC identifieddestination Bin

c) Warehouse worker scans EPCHU and moves EPC HU thru anRFID reader marking exit and entryzones

RFID Enabled Outbound Processing in EWM

ERP

EWM

AII

Pick RFIDPack

RFIDLoad GI ASNRFID Tag

Commissioning

Notsupportedwith RFID

2. After physical(re-)packing,creating new HUsin EWM andlabeling all HUs,the worker usesan RFID scanner(puts the HU on aconveyor beltwith a stationaryRFID reader) toupdate EWM withthe new HUhierarchy.

3. Worker uses aspecial RFID loading UI.He begins to load thetruck with moving theHUs through an RFIDgate. All HUs areidentified and loadedvia RFID. He gets a listwith all affectedoutbound deliveries,can do manualcorrections or cantrigger the GI postingafter finishing physicalloading.Sending outbounddelivery order incl.necessary EPCinformation to ERP

4. GI is posted andEPC enriched ASN

is sent

1. CommissionRFID Tags

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 andreact 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

Example of Business Requirements & EWM Functionality

Direct Outbound Delivery Order

Create Outbound Delivery manually in EWM

Pickup (direct sale or sell from stock)

Account assignment

Immediate delivery

Scrapping

Graphical Warehouse Layout

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

Provides graphical 2D representation of the warehouse and the yard of the warehouse enabling you tovisualize 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 totrack status progress in yard

Allows navigation from graphics to related information

Easy GraphicsFramework

Other technologyFor next release

Mappingfor

EGF

Mapping

Data preparationand functionality

Back end(already existingCore functions)

GraphicalRepresentation ofWarehouse

Select Warehouse to View

Enter Warehouse Number to view graphically:

Visual Representation of Selected Warehouse

Zoom Possibilities — To Bin Level

Link to Storage Bin Characteristics

Using the left mouse click on the storage bin, we can immediately see the mostimportant characteristics of the storage bin

Link to Storage Bin Maintenance Transaction

Using the right mouse click, we can go directly into the storage bin maintenancetransaction.

Status Overview of Objects: Conveyors

Selecting the conveyor status allows us to see that three conveyors need attention

Three New Enhancements

EWM will be enhanced in the following areas:Resource management to improve optimizationCross-docking to improve process flows across the warehouse and to provideretailers with efficient distribution methods to move merchandise through thewarehouse for preparation before final shipment to customers or storesProduction supply to provide integration for manufacturing orders, whetherproduction orders or process orders

Resource Management

Three Types of Optimization

To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:

Task interleaving: a process by which a resource, having just completed andconfirmed a task, is assigned a new task, the source of which is close to theresource’s current locationExecution constraint: enables you to control the execution of tasks in predefinedzones of a site, preventing resource bottlenecks and ensuring the workability of thesemi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actual task andrequests new work, the system checks the available open tasks in an area andsends a user to this area without assigning a specific task

Task InterleavingQueue Types for Task Sequencing

2 1

Inbound Internal Outbound

Execution Constraint

To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:

Task interleaving: a process by which a resource, having just completed andconfirmed a task, is assigned a new task, the source of which is close to theresource’s current locationExecution constraint: enables you to control the execution of tasks in predefinedzones of a site, preventing resource bottlenecks and ensuring the workability of thesemi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actual task andrequests new work, the system checks the available open tasks in an area andsends a user to this area without assigning a specific task

Execution Constraint Example

5 x Pickers2

2 x Pickers; 1 x Simple Forklift1ZN062

4 x Pickers2

1 x Picker; 1 x Simple Forklift1ZN041

Resource TypesCombinationZoneEC

There are currently four pickers subscribed to the destination zone ZN06 soEC 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 beassigned to the worker, Marcus.

Semi-System Guided Work

To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:

Task interleaving: a process by which a resource, having just completedand confirmed a task, is assigned a new task, the source of which is closeto the resource's current locationExecution constraint: enables you to control the execution of tasks inpredefined zones of a site, preventing resource bottlenecks and ensuringthe workability of the semi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actualtask and requests new work, the system checks the available open tasks inan area and sends a user to this area without assigning a specific task

2 1

Semi-System Guided Work Example (cont.)

Cross-Docking

Cross-docking is a method of materials processing by which materials thathave arrived at the warehouse are brought from goods receipt directly togoods issue without being put away:

Retail Merchandise XD is an existing cross-docking scenario in SAP ERP6.0 with Retail Solution switched on. Merchandise Distribution is essentialfor logistics processes in the retail industry. The retailers plan, control, andmanage their flow of merchandise from the vendors via distribution centersto the stores or customers.

Opportunistic cross-docking allows incoming deliveries to be redirectedto cover outbound requirements. The cross-docking decision is made inEWM based on information available in the warehouse.

Production cross-docking and production supply cross-docking.Opportunistic cross-docking for production supply.

Merchandise Distribution — Cross-Docking: Inboundand Outbound Deliveries

SAP Retail EWM

Inbound delivery

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

Run Collective PO Plan Allocation

Create Purchase Order

Vendor

ReceivePurchaseOrder

Send ASN/inbounddelivery

DistributionData

Create ASN/inbound delivery

Create “planned”outbound delivery Outbound delivery

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

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

Handling Unit (HU)-Ultimate consignee for HU

CD: Cross-Docking

Example 1: Retail Cross-Docking: Customer-Specific Pre-Packed Mixed HU

Goods Receipt

Final StorageType

Goods Issue

Active HU Warehouse Task (WT)Active Material Pick WT

Inactive Material Pick WTDeconsolidation

Mat AMat B

UC1Mat AMat B

UC1

Mat AMat B

UC1Mat AMat B

UC1

Inb.Del.Ref.Deleted

Door

Door

*UC1: Ultimate Consignee1

UC1

Example 2: Retail Cross-Docking:Mixed Handling Unit Within Ship-HU

Goods Receipt

Final StorageType

Goods Issue

Active HU WTActive Material Pick WTInactive Material Pick WT

Deconsolidation

Inb.Del.Ref.Deleted

Door

Door

CD Storage Type

Merchandise Distribution-Flow Through:Distribution by Customer (n:m Relationship)

STAGAREA1

Outb-1 Store1

Pick by (all) customer to distribute theproducts to the intermediate bins

= Warehouse Order (WO) 1= WO 2= WO 3= WO 4

Store1

Store2

1010

10 10

10

10

Material 1

Material 2

Outb-2 Store1Material 3

Outb-3 Store2Material 3

Material 2

Outb-4 Store3Material 3

Outb-5 Store4Material 1

Material 2

STAGAREA2Store3

DOOR1

DOOR2

101010

Store4

10 1010

10 10

10

10 10

Pick by customer, limit to number of stagingareas (here 2)

= WO 1= WO 2

CD Storage Type

Merchandise Distribution-Flow Through:Distribution by Article (n:m Relationship)

STAGAREA1

Outb-1 Store1

Putaway by product to distribute theproducts to the intermediate bins

= WO 1= WO 2= WO 3

Store1

Store2

1010

10 10

10

10

MAT1

MAT2

Outb-2 Store1MAT3

Outb-3 Store2MAT3

MAT2

Outb-4 Store3MAT3

Outb-5 Store3MAT1

Outb-6 Store4MAT1

MAT2

STAGAREA2Store3

DOOR1

DOOR2

1010

Store4

10 1010

10 10

10

10 10

Pick by customer, limit to number of stagingareas (two here)

= WO 1= WO 2

Merchandise Distribution-Flow Through: DeliveryAdjustment

Outb-1 CUST1

Item10

QTY = 15

PO-47-10

Outb-2 CUST2

Item10

QTY= 15

PO-47-10

CD Storage Type

Item20

QTY = 10

PO-47-20

Item20

QTY=10

PO-47-20

1010

10 10Fairshare:Reduce 15 to 10for each customer

Start deliveryadjustment afterGR is complete

Underdelivery:(only 20 deliveredinstead of 30)Inb-1

PO-47-10

Inb-2

PO-47-20

10 10

1010

Cross-Docking

Cross-docking is a method of materials processing by which materials thathave arrived at the warehouse are brought from goods receipt directly togoods issue without being put away:

Retail Merchandise XD is an existing cross-docking scenario in SAP ERP6.0 with Retail Solution switched on. Merchandise Distribution is essentialfor logistic processes in the Retail industry. The retailers plan, control, andmanage their flow of merchandise from the vendors via distribution centersto the stores or customers.

Opportunistic cross-docking allows incoming deliveries to be redirectedto cover outbound requirements. The cross-docking decision is made inEWM based on information available in the warehouse.

Production cross-docking and production supply cross-docking.Opportunistic cross-docking for production supply.

Example: Opportunistic Cross-Docking(Homogeneous Handling Unit) — Inbound

Goods ReceiptArea

Counting Station

Final StorageType

VAS Station Inbound

VAS Station OutboundPacking Station OutboundStaging Area

CUST_Inb

CUST_Outb

IB IB IB IB

OUTOUTOUTOUTOUT

Active HU WT (Warehouse Task)Active Material Pick WTInactive Material Pick WT

IB

Outbound

Delivery

Inbound

Delivery

Example: Opportunistic Cross-Docking(Homogeneous Handling Unit) — Outbound

Goods ReceiptArea

Counting Station

Final StorageType

Packing Station OutboundStaging Area

IB IB

OUTOUTOUT

Active Material Pick WT

IB

Outbound

Delivery

Inbound

Delivery

Active HU WT (Handling Unit Warehouse Task)

Production Supply

In order to use a product (component) for a manufacturing order, it has to bebrought to the production supply area. When EWM is used, the productshave to be picked in the warehouse and moved to the production supplyarea.

There are several ways to provide components that are required for amanufacturing order:

Pick parts/release order parts: The products that are needed as componentsfor 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 requiredquantity.

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

Standard Organizational Structure

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

AFS: Available for Sale

ROD: Received on Dock

Warehouse

Production Supply Area

Storage Location

Storage Bin

Alternate Organizational Structure

Non-EWM storage location: The stock in the Production Supply Area(s) is notmanaged in EWM, but in ERP MM-IM at storage location level.

AFS: Available for Sale

ROD: Received on Dock

Warehouse

Production Supply Area

Storage Location

Storage Bin

Alternate Organizational Structure (cont.)

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

AFS: Available for Sale

ROD: Received on Dock

Warehouse

Production Supply Area

Storage Location

Storage Bin

Scenario: Pick Parts and Release Order Partswith 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

Scenario: Crate Parts with Two EWM StorageLocations

Scenario: Kanban Parts with MM-IM StorageLocation

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

AGENDA

1. Introduction & Roadmap

2. Detailed Overview

3. Upcoming Functionality in EWM 7.01

4. SummaryPreliminary plan - subject to change

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies,developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors oromissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind,either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intentor gross negligence.

EWM 7.01Transportation Integration LE-TRA<->EWM

Benefit for the customer:

Out of the box integrationUp to now done as part of the implementation project2 pre defined scenarios easy to implementAllows integration of external transportation planning systemAllows usage freight cost calculation in ERP

Planned, in specification,subject to change

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies,developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors oromissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind,either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

Scope of SAP EWM — TransportationIntegration

Transportation Management Planning by means ofSAP ERP Transportation drives warehouseprocessing of SAP EWM

SAP EWM Warehouse Execution shall notify SAPERP Transportation about execution of plannedtransports (TU activities) in order to allow follow-upactions (e.g., freight cost calculation, follow-uptransport planning for complex multi-step transports.)

Planned, in specification,subject to change

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies,developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors oromissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind,either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

Scope of SAP EWM — TransportationIntegration (cont.)

Transportation Management Planning by means ofan external transportation management systemdrives warehouse processing in SAP EWM

SAP EWM Warehouse Execution notifies externaltransportation management system about executionof planned transports (TU activities) in order to allowfollow-up actions (e.g., freight cost calculation,follow-up transport planning for complex multi-steptransports.)

Planned, in specification,subject to change

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies,developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors oromissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind,either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

EWM 7.01Returns Handling Enhancements

Visibility of Damage or loss of goods within an internal network

Trigger follow up process from warehouse to ensure financial corrections

Adjustments (pricing, quantity, returns, scrapping) enabled across company codesand countries

Improved visibility of inventory across network locations and minimized timerequired for correction postings

Planned, in specification,subject to change

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies,developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors oromissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind,either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

Reverse Logistics FlowInternal Logistics Network Enhancements

Enhancements

Planned, in specification,subject to change

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies,developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors oromissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind,either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

Internal Logistics Networks

Additional Item Discrepancy Process Wrong Items Return Process

STO

CC2CC1

CC2CC1rSTO

Handle Additional Items in Stock TransferOrders

Intra-/Intercompany Case

Subsequent STO creation initiated fromEWM in receiving location

Return wrong items via Returns-STO

Intra-/Intercompany Returns

Initiate rSTO from EWM

Perform Quality check in receiving location

Financial clearance based on quality checkresults

Planned, in specification,subject to change

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies,developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors oromissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind,either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent

AGENDA

1. Introduction & Roadmap

2. Detailed Overview

3. Upcoming Functionality in EWM 7.01

4. Summary

Resources

Roll Out Map 2008SAP SCM Roll-out Map 2008

Learning Maphttps://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 SCM7.0 (select language) SAP Extended Warehouse Management (SAP EWM)

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

IDES: Quick Link: /ides

Resources specific to EWM 7.01 will be available at a laterdate.

© SAP 2007 / Page 113

Thank you!

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