The Latest and Greatest in SAP Extended Warehouse Management. Richard Kirker May 2011

Transcription

1 The Latest and Greatest in SAP Extended Warehouse Management Richard Kirker May 2011

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 2011 SAP AG. All rights reserved. 2

3 Warehousing Where do we come from? Evolution of Warehouse Operations First software systems support warehouse operations Optimization strategies Connecting to 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 SCM EWM 7.1 Storage Units Parallel Processing Integration PP QM LIS Rough Decentral Workload WM Estimate Prototype Picking of RF Waves Two Step picking Warehouse Monitor HR Integration Native RF Task & / SAP Console Resource HUM Mngmt. Packing ERP EWM XD YM VAS Slotting Rearrangement Warehouse Orders Warehouse Monitor Internal Routing Labor Mgmt MFS WH Cockpit RFID Integr. Batch Mgmt Serial Nr Catch Weight ESA Graphical WH Layout Production Supply Merchandis e Distrib. XD Task Interleaving Integration to LE-TRA Enhancements to Claims & Returns BOBJ Integration Enterprise Focus Network Focus 2011 SAP AG. All rights reserved. 3

4 What Keeps the Logistics Director Awake at Night? Typical CEO Questions When it Comes to Warehousing How do we coordinate the flow of materials and information? High Warehouse Productivity/Efficiency Inventory Accuracy Better Space Utilization Better Customer Service How do we optimize the flexibility, cost, and efficiency of the logistics 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 maximize efficiency 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? Integrated Warehousing and Logistics Handling Resources Source: ddd 2011 SAP AG. All rights reserved. 4

5 Warehouse Objectives Demand View Warehouse Objectives IT Requirements/Functionality Top Barriers to Better Warehouse Performance High Warehouse Productivity/Efficiency Inventory Accuracy Better Space Utilization Better Customer Service Integrated Warehousing and Logistics Handling Resources On-boarding New Customers 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 and Processes 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 support warhouse technology initiave % of respondents citing as among their top 3 challenges IT capabilities are the key to the WMS selection process 2011 SAP AG. All rights reserved. 5 33% 33 % 37% 48% 47% 52% 10 % 20 % 30 % 40 % 50 % Source: AberdeenGroup

6 Market Situation Warehouse Technology Adoption Rates Warehouse analytics for score carding, metrics and analysis 29% -Have today 59% -Plan to adopt 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 30% 27% 34% 12% 27% 40% 35% 33% 29% 56% 10% 20% 30% 40% 50% 2011 SAP AG. All rights reserved. 6

10 Supporting Functions Cross Processes Core Warehouse Operations and Inventory Management SAP Extended Warehouse Management Solution Overview Inbound Processing Storage and Operations Outbound Processing Receive ASN data Rearrangement Order deployment ASN Validation & Correction Inventory Counts / Record Accuracy Route Determination Transporation Unit Arrival Replenishment Wave Management Manage Transportation Unit Freight Order Management Picking Bin Determination Goods Receipt Kit-to stock Warehouse Order Creation Putaway Bin determination Work Assignment Unload Transportation Unit Picking Internal Routing Packing Slotting Staging Deconsolidation Loading & Goods Issue Putaway Kit-to order Returns / Reverse Logistics Manual outbound deliveries Goods Receipt - Optimization Production Supply Claims & Returns SAP SCM-EWM 5.0. Transportation Cross Docking Labour Management Task Interleaving SAP SCM-EWM 5.1. Picking fr. Inb./ Push Deployment Opportunistic Cross Docking Execution Constraint SAP SCM-EWM 7.0. Yard Management Merchandise Distr. X-Docking Semi-System-Guided work SAP SCM-EWM 7.1. Packaging Specification Integration to QIE RFID Enablement Integration to GTS RF support for all exec.processes Material Flow System Integration to EH&S Batch Management Warehouse Cockpit esoa enablement Serial Numbers Graphical Warehouse Layout Catch Weight Integration to Transp. Processes Integration to BOBJ (Dashboards) 2011 SAP AG. All rights reserved. 10

11 EWM Deployment Options und Focus SCM Extended Warehouse Management Multiple EWM s connected to one ERP back end Multiple ERPs Connected to 1 EWM EWM Add-On Deployment SAP ERP Inventory Management SAP ERP Inventory Management SAP ERP Inventory Management SAP ERP Inventory Management SAP SCM SAP SCM SAP SCM Extended Warehouse Management Extended Warehouse Management Extended Warehouse Management Extended Warehouse Management 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, MFS integration, catch weight enabled, etc. Logistics service provider multi-customer warehouses 2011 SAP AG. All rights reserved. 11

13 Overview: CIF Interface between ERP and SCM ERP SCM Master Data / Transaction Data Core Interface (Data Selection and Extraction) Remote- Function- Call (RFC) Master Data / Transaction Data 2011 SAP AG. All rights reserved. 13

14 Organizational Data Transfer via CIF Master Data Plant ERP Initial Data Transfer EWM Supply Chain Unit (with Category) Master Data Customer / Supplier Product Shipping Point CIF MRP Area Material Master Change Transfer 2011 SAP AG. All rights reserved. 14

18 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. qrfc ERP Delivery Document EWM Delivery Document Shipment Document IDoc IDoc Transportation Units 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. Preliminary Plan Subject to Change 2011 SAP AG. All rights reserved. 18

19 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 2011 SAP AG. All rights reserved. 19

20 Transportation Planning Scenarios (1/3) Transportation Planning in LE-TRA ERP EWM Outbound Delivery replication Outbound Delivery Request locking unlocking Outbound Delivery Order Shipment Goods Issue Posting for Outbound Delivery Vehicle* SHPMNT05 Transportation Units ppf-action triggered on goods issue posting /SCWM/SR_SEND_SHPMNT Update Picking Packing Staging Loading Outbound Delivery Final Delivery Shipment Update * Using Vehicles is optional and depends on settings on Means-of-Transport [/SCWM/PM_MTR] Preliminary Plan Subject to Change 2011 SAP AG. All rights reserved. 20

21 Transportation Planning Scenarios (2/3) Transportation Planning in EWM ERP EWM Outbound Delivery replication Outbound Delivery Request Outbound Delivery Order Vehicle* Picking Packing Transportation Units ppf-action triggered on goods issue posting Staging Loading /SCWM/SR_SEND_SHPMNT Outbound Delivery Final Delivery Goods Issue Posting for Outbound Delivery update Shipment SHPMNT05 * Using Vehicles is optional and depends on settings on Means-of-Transport [/SCWM/PM_MTR] Preliminary Plan Subject to Change 2011 SAP AG. All rights reserved. 21

22 Transportation Planning Scenarios (3/3) Transportation Planning for Inbound Shipments ERP EWM Inbound Delivery Inbound Delivery replication Notification locking unlocking Inbound Delivery Vehicle* Shipment SHPMNT05 Transportation Units Unloading Goods Receipt Goods Receipt for Inbound Delivery update Preliminary Plan Subject to Change 2011 SAP AG. All rights reserved. 22

24 Warehouse Order Creation Process A list of warehouse requests are created WHR WHR1 1 WHR1 WHR1 These warehouse requests will be grouped into one wave Wave 1 Based on the wave, numerous warehouse tasks (WTs) will be created WT WHR1 1 WHR1 WHR1 WT WHR1 n WHR1 WHR1 All WTs will pass the Black Box warehouse order creation. Depending on customizing, warehouse orders can contain WTs from Warehouse Order Creation different deliveries WO 1 WO 2 WO n TO WHR1 WHR1 TO WHR1 WHR1 TO WHR1 WHR SAP AG. All rights reserved. 24

25 Warehouse Order Creation Schematic Flow WHR 1 WHR 2 WT WT WT WT WT WT WT Grouping by Activity Area: AA 01 WT WT WT AA 02 WT WT WT WT WO Creation Rules (Customizing): AA 01 a) WOCR1 b) WOCR2 c) WOCR3 AA 02 a) WOCR3 b) WOCR2 AA 02 a) WOCR1 1 WT WT 2 WT WT WT 3 AA 03 Try WOCR3 WT 1 WT 3 WT 2 WT 4 AA 02 Created Warehouse Order 4711 WT 3 WT WHR: Warehouse Request WT: Warehouse Task WOCR: Warehouse Order Creation Rule AA: Activity Area WT 1 WT 2 6 Try WOCR SAP AG. All rights reserved. 25 AA 02 Created Warehouse Order WT 1 WT 2

26 Wave Management WM request x Delivery x Item 1 Dx Item 1 Item 2 Dx Item 2 Item 3 Dx Item 3 Wave Wave Creation methods to control amount of work released to the warehouse floor at a specific time Content: Automatic, Immediate or Manual release Full or Partial delivery may belong to a wave Release time /date Order Type (e.g. Emergency / Stock) Process Type Grouping by route, pick area(s), packing lanes... Warehouse Order x WO Item 1 WO Item 2 WO Item 3 Bundle assigned to a worker 2011 SAP AG. All rights reserved. 26

28 Efficiency and Cost Labor Management Labor 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 Measure the quality and safety for each employee s performance 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 2011 SAP AG. All rights reserved. 28

29 Labor Measurement and KPIs Labor Measurement and Key Performance Indicators (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) 2011 SAP AG. All rights reserved. 29

30 Planning and Simulation Standards creation and feedback Traditional measurement: Measure lines per hour, cases per hour, 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 2011 SAP AG. All rights reserved. 30

31 MFS Variants EWM Stock SAP ERP SAP ERP SAP ERP SAP ERP Warehouse Management 3 rd Pty. WHS SAP WM SAP WM SAP EWM SAP TRM Material Flow 3 rd Pty. MFS 3 rd Pty. MFS 3rd Pty. MFS RFC Adaptor RFC Adaptor Machine Control PLC PLC PLC PLC 2011 SAP AG. All rights reserved. 31

32 EWM Controls Movement Steps Aisle 1 Aisle 2 EWM Interim Destination Final Dest. b) Task HU 1 From CP01 To CP02 a) Scanner- Message HU 1 at CP01 CP02 1 Scanner CP01 TCAR PLC Scanner read Move 2011 SAP AG. All rights reserved. 32

33 EWM Controls Movement Steps EWM Aisle 1 Aisle 2 Final Dest. Warehouse Task Interim Dest. Task confirmation CP11 CP02 1 CP02 Scanner TCAR PLC Sensors Drives TCAR and Conveyors 2011 SAP AG. All rights reserved. 33

34 EWM Controls Movement Steps Aisle 1 Aisle 2 EWM Final Dest Interim Dest Task Confirmation Warehouse Task CP11 1 CP11 CP12 TCAR Scanner PLC Sensors Drives Conveyors 2011 SAP AG. All rights reserved. 34

35 EWM Controls Movement Steps Aisle 1 Aisle 2 EWM Final task confirmation Final Dest. Warehouse Task to Rack Feeder Bin Task Confirmation CP12 1 CP12 PLC Drives Rack Feeder (for Rack Feeder) PLC (for conveyors) Sensors 2011 SAP AG. All rights reserved. 35

42 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 to critical situations quickly 2011 SAP AG. All rights reserved. 42

46 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 2011 SAP AG. All rights reserved. 46

47 Business Pain Points and EWM Compatibility Handling of multi-step picking and putaway Finding the best location in the warehouse based on product demand (fast changing) and product dimensions Optimize warehouse constantly (Housekeeping) Assign the right workload (weight, volume, number of items) to the warehouse worker, that can be picked together 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 Wave picking based on flexible criteria Central monitoring of the warehouse activities Transportation of HUs across different DCs or WHs Internal routing Slotting Rearrangement Warehouse Order Creation Resource Management Wave Management Warehouse Monitor Transportation Cross-Docking 2011 SAP AG. All rights reserved. 47

48 Business Pain Points and EWM Compatibility Manage the time and productivity of warehouse workers Labor Management Monitor the performance of workers, teams, warehouse areas Warehouse Cockpit Create Inbound Deliveries based on shipping documents Expected Goods Receipt Automate your business processes and react flexibly to changes in your business processes esoa Enablement Connect and control an automatic warehouse Material Flow System Create kits and transfer to stock Optimize warehouse processes by using RFID technology Kit-to-Stock RFID Enablement Generate outbound delivery orders indirectly Create Outbound Delivery manually 2011 SAP AG. All rights reserved. 48

49 Agenda Overview Why Did We Develop SAP EWM? Integration Enhancement Pack 1 for EWM Efficiency and Cost Labor Management and Warehouse Order Processing, Analytics, Cross Docking Visibility and Usability Graphical Warehouse Layout, Warehouse Monitor, Cockpit Business Pain Points and EWM Compatibility Customer Status and Value of EWM Wrap-up

50 Resources Online Help ( Select Overview of SAP Documentation SAP Business Suite SAP Supply Chain Management SAP Extended Warehouse Management (select language) SCM Portal ( *) Choose Warehousing Extended Warehouse Management in SAP SCM EWM Landing Page on sap.com * Requires login credentials to the SAP Service Marketplace 2011 SAP AG. All rights reserved. 50

51 Thank You! Contact information: Richard Kirker