SAP SCM EWM. Fagdag, Pearl Consulting. Trond Røvang, løsningsrådgiver 27. november 2009

SAP SCM EWM Fagdag, Pearl Consulting Trond Røvang, løsningsrådgiver 27. november 2009

SAP Warehousing - 16 år med løpende utvikling 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 Workload Estimate Picking Waves/ Two Step picking Warehouse Monitor Integration to HR Decentralized WM Prototype of RF Native RF/ SAP Console HUM Packing Stn Task and Resource Management 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 Merchandise Distrib. XD Task Interleaving Integration to Transp. processes *Reverse Logistics enhancements 1993 1995 1997 1998 2000 2002 2003 2005 2007 2008 2009 Extending the Scope of our Warehousing solutions

Anbefalt lesestoff: CapGemini Consulting Warehousing Report 2009 SAP 2007 / Page 3

Recent Analysis SAP 2008 / ASM SCM Page 4 SAP s latest release puts it on the cusp of becoming a leader. Potential buyers, now more than ever, should start considering SAP a viable alternative to best-ofbreed WMS. With the addition of new features like slotting optimization, labor management, and a more flexible UI, SAP is quickly closing the must have requirements gap for the majority of potential buyers. The Forrester Wave : Warehouse Management Systems, Q1 2008

Enterprise, Service Parts Execution og Network Focus Integrert scenario Desentralisert ERP scenario Annet ERP Logistics FI/CO WM Dec WM = full SAP ECC system Extended Extended Extended WM WM WM SAP SCM SCM EWM Add-On SAP Warehouse Management i SAP ERP (integrert eller desentralisert WM) SCM Extended Warehouse Management Enterprise Focus SPE / Network Focus

SAP 208 / Page 6 SCM EWM vs ERP EWM? Merk: Dette er en forenklet model! ERP EWM SAP ERP Core WM Picking Putaway Replenishment Wave Picking 2-Step Picking Etc. SAP ERP 4.7 EE 1.1 -Task & Resource Management SAP ERP 4.7 EE 2.0 - Dynamic Cycle Count ERP EWM - Value Added Services - Cross-Docking - Yard Management EWM SCM EWM SAP SCM EWM Extended Warehouse Management (EWM) - Picking - Putaway - Deconsolidation - Replenishment - Wave Picking - 2-Step Picking - Slotting - Process Oriented Storage Control - Value Added Services - Cross-Docking (TCD, PFGR, & PD) - Labor Management - Etc., Etc., Etc.

Hvordan velge rett EWM-løsning Viktige faktorer: SCM EWM erstatter ikke ERP EWM, men SCM EWM inneholder ekstra funksjonalitet som dekker mer komplekse situasjoner og spesifikke krav Ikke alle lager vil kreve SCM EWM, selv i en kompleks supply chain. SCM EWM og ERP EWM utelukker ikke hverandre og kan brukes i en kombinasjon innenfor et og samme systemlandskap SAP 2008 / Page 7

Integrasjon til andre moduler og komponenter Materials Management og Inventory management (MM og IM) Production Planning (PP) og Service Parts Planning (SPP) Quality Management (QM) Environment, Health and Safety (EH&S) Transportation Management (TMS) Sales and Distribution (SD) og Customer Relationship Management (CRM) SAP 2008 / Page 8

EWM inngående prosess-oversikt New New Slotting Receive ASN Data ASN Validation and Correction Transport Unit Arrival Manage Transport Unit New New Goods Receipt Putaway Bin Determination Unload Transport Unit Deconsolidation New (Internal Routing) New Process Exceptions/Manage Work in Process Putaway

Nye inngående prosesser New New New Pick From Receiving/ Push Deployment New Transportation Cross dock Returns/Reverse Logistics Packaging Execution

EWM Utgående prosess-oversikt New Order/ Deployment Route Determination Wave Management Picking Bin Determination Warehouse Orders Work Assignment Picking Packing Staging Loading and Goods Issue New New Process Exceptions/Manage Work in Process

EWM Interne prosesser New Kitting Inventory Counts Record Accuracy New Replenishment Rearrangement New Process Exceptions/Manage Work In Process

Øvrige Warehousing-prosesser New New New Yard Management Management and Tracking of Vehicles/ Transportation Units from yard check-in, throughout the yard movements tasks, and yard check-out Quality Inspection Engine Service oriented Quality Inspection Engine to support the quality processes for warehouse management Environmental Health & Safety EH&S data and checks used in Product Storage, Shipping Documents and Transportation Routing Foreign Trade/ Bonded Warehouse Customs management SPL Screening Re-exports Duty unpaid returns New Process Exceptions/Manage Work in Process

EWM prosess-landskap SAP EWM 7.0 5.0 5.0 Counts / Record Accuracy 5.0 5.0 5.0 Unload Unit 5.0 5.0 5.0 5.0 SAP 2008 / ASM SCM Page 14

Example of Business Requirements & EWM Functionality 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

Slotting Finner og optimaliser lokasjon for en vare Fysiske kriteria for å finne riktig bin type -> Space optimization Etterspørselkriteria for å finne riktig lokasjon -> Time optimization Slotting legger grunnlaget for rearrangement -> Closing the optimizing loop

Rearrangement optimerer lagerstyringen og reduserer driftskostnadene Plukkordre før optimalisering Rearrangement utførelse Golden Zone for Fast Movers Business Case 60.000 line items a day ~ 450 hours time saving per day > 1.000.000$ savings per year! og økt servicegrad!

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

Warehouse Order Creation Schematic Flow WHR 1 WHR 2 WT WT WT WT WT WT WT Grouping by Activity Area: WT WT WT AA 01 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 WT 2 WT WT 3 AA 03 Try WOCR3 WT 1 WT 3 WT 2 WT 4 AA 02 Created Warehouse Order 4711 WT 3 WT 4 4 5 Try WOCR2 WT 1 WT 2 AA 02 Created Warehouse Order 4712 WT 1 WT 2 6 7

Wave Handling: Grouping of Delivery Lines

Resource Management Resource Management: Users and equipment combination which can be defined as being allowed to execute work in the warehouse. RF (automatic or manual) Non-RF environment (manual) Tracked and Displayed in the Warehouse Monitor Visibility of stock on Resources Resource Type: Groups resources with similar technical or physical characteristics Resource Group: Groups resources for queue assignment purposes

Wave Management Item 1 Item Dx 2 Item 1 Item Dx 3 Item 2 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

Warehouse Monitor The warehouse monitor is a central tool for keeping warehouse managers constantly up-todate as to the current situation in the warehouse and to enable them to initiate appropriate responses accordingly.

Example of Business Requirements & EWM Functionality 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

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

GR Process Based on Expected Goods Receipt (EGR) New New New Daily list of expected deliveries Gate check-in Goods receipt (GR) preparation Door assignment Physical GR Report on Expected Goods Receipt (EGR)/ Planned DeIivery Compare delivery papers system a) EGR Planned Delivery b) Assign Planned Deliveries to Transport Unit Compare physical goods system Identify Planned Delivery items Release Door

esoa Enablement Warehouse/Yard Organizational Data Inbound/Outbound Delivery Dock Appointments Transportation Unit Appointments Vehicle Appointments

MFS Variants EWM 5.1 Stock SAP ERP SAP ERP SAP ERP SAP ERP Warehouse Management 3 rd Pty. WHS SAP WM SAP WM SAP EWM Material Flow 3 rd Pty. MFS 3 rd Pty. MFS SAP TRM 3rd Pty. MFS RFC Adaptor RFC Adaptor Machine Control PLC PLC PLC PLC

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

EWM Controls Movement Steps Aisle 1 Aisle 2 EWM Final Dest. Warehouse Task Interim Dest. Task confirmation CP11 1 CP02 CP02 Scanner TCAR PLC Sensors Drives TCAR and Conveyors

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

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

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

RFID enabled EWM Unload Confirmation Tag of Warehouse Comissioning Task Packing Loading Set unload status, confirm WT (with resource user) and post GR based on ASN Confirm WT incl. resource, e.g.: - internal stock transfer - change batch no - stock level change Attach boxes/ items to Handling Unit, set status to packed Update HU and send ASN

RFID Enabled Inbound Process in EWM ASN Inbound Delivery RFID Unload GR Posting RFID Putaway 1. ASN enriched with EPCs is received ERP 2. Inbound Delivery is automatically created based on ASN 4. A worker moves the HU through a gate with RFID reader devices. AII recognizes the movement, scans the RFID tag and the information is sent to EWM. In EWM the HU unloading status is updated. 5. Automatic GR posting is done with unloading. 6. The confirmation of HU-WT can be done automatically if the destination bin has a stationary reader. Analog unloading the HU identification (decoded from EPC code) is sent to EWM and the WT is confirmed 3. EPC enriched HU Info is passed to EWM AII EWM

RFID enabled Internal Warehouse Moves in EWM WH Move a) Warehouse Worker Scans source bin with barcode scans RFID HUs and confirms with barcode destination bin b) Warehouse worker scans EPC identified source bin, EPC HU and confirms to EPC identified destination Bin c) Warehouse worker scans EPC HU and moves EPC HU thru an RFID reader marking exit and entry zones AII EWM

RFID Enabled Outbound Processing in EWM Pick RFID Tag Commissioning RFID Pack RFID Load GI ASN Not supported with RFID ERP 1. Commission RFID Tags 2. After physical (re-)packing, creating new HUs in EWM and labeling all HUs, the worker uses an RFID scanner (puts the HU on a conveyor belt with a stationary RFID reader) to update EWM with the new HU hierarchy. 3. Worker uses a special RFID loading UI. He begins to load the truck with moving the HUs through an RFID gate. All HUs are identified and loaded via RFID. He gets a list with all affected outbound deliveries, can do manual corrections or can trigger the GI posting after finishing physical loading. Sending outbound delivery order incl. necessary EPC information to ERP AII 4. GI is posted and EPC enriched ASN is sent EWM

Direct Outbound Delivery Order Create Outbound Delivery manually in EWM Pickup (direct sale or sell from stock) Account assignment Immediate delivery Scrapping

Three Types of Optimization To optimize the work with RF devices in a warehouse, we focus on three types of optimization: Task interleaving: a process by which a resource, having just completed and confirmed a task, is assigned a new task, the source of which is close to the resource s current location Execution constraint: enables you to control the execution of tasks in predefined zones of a site, preventing resource bottlenecks and ensuring the workability of the semi-system guided mode of task selection Semi-system guided work: whenever the user has finished his actual task and requests new work, the system checks the available open tasks in an area and sends a user to this area without assigning a specific task

Task Interleaving Queue Types for Task Sequencing Inbound Internal Outbound 2 1

Cross-Docking Cross-docking is a method of materials processing by which materials that have arrived at the warehouse are brought from goods receipt directly to goods issue without being put away: Retail Merchandise XD is an existing cross-docking scenario in SAP ERP 6.0 with Retail Solution switched on. Merchandise Distribution is essential for logistics processes in the retail industry. The retailers plan, control, and manage their flow of merchandise from the vendors via distribution centers to the stores or customers. Opportunistic cross-docking allows incoming deliveries to be redirected to cover outbound requirements. The cross-docking decision is made in EWM based on information available in the warehouse. Production cross-docking and production supply cross-docking. Opportunistic cross-docking for production supply.

Example 1: Retail Cross-Docking: Customer- Specific Pre-Packed Mixed HU Door UC1 Mat A Mat B Goods Receipt UC1 Mat A Mat B Active HU Warehouse Task (WT) Active Material Pick WT Inactive Material Pick WT Deconsolidation *UC1: Ultimate Consignee1 Inb.Del.Ref. Deleted Final Storage Type UC1 Mat A Mat B UC1 Mat A Mat B Door Goods Issue

Example 2: Retail Cross-Docking: Mixed Handling Unit Within Ship-HU Door Goods Receipt UC1 Active HU WT Active Material Pick WT Inactive Material Pick WT Deconsolidation Inb.Del.Ref. Deleted Final Storage Type Door Goods Issue

Merchandise Distribution-Flow Through: Distribution by Customer (n:m Relationship) Outb-1 Store1 Material 1 Material 2 Store1 10 10 10 Outb-2 Store1 Material 3 10 10 10 Store2 10 10 STAG AREA1 DOOR1 Outb-3 Store2 Material 3 Material 2 10 10 10 Store3 10 STAG AREA2 DOOR2 Outb-4 Store3 Material 3 10 10 10 CD Storage Type Store4 10 10 Outb-5 Store4 Material 1 Material 2 Pick by (all) customer to distribute the products to the intermediate bins = Warehouse Order (WO) 1 = WO 2 = WO 3 = WO 4 Pick by customer, limit to number of staging areas (here 2) = WO 1 = WO 2

Merchandise Distribution-Flow Through: Delivery Adjustment Inb-1 Underdelivery: (only 20 delivered instead of 30) Outb-1 CUST1 Item10 PO-47-10 PO-47-10 QTY = 15 10 10 10 10 Start delivery adjustment after GR is complete Fairshare: Reduce 15 to 10 for each customer Item20 QTY = 10 PO-47-20 Inb-2 PO-47-20 Outb-2 CUST2 Item10 PO-47-10 10 10 QTY= 15 10 10 CD Storage Type Item20 PO-47-20 QTY=10

Example: Opportunistic Cross-Docking (Homogeneous Handling Unit) Inbound Goods Receipt Area Counting Station CUST_Inb VAS Station Inbound IB IB IB IB IB Inbound Delivery Active HU WT (Warehouse Task) Active Material Pick WT Inactive Material Pick WT Outbound Final Storage Type Delivery CUST_Outb OUT OUT OUT OUT OUT Staging Area Packing Station Outbound VAS Station Outbound

Example: Opportunistic Cross-Docking (Homogeneous Handling Unit) Outbound Goods Receipt Area Counting Station IB IB IB Inbound Delivery Active HU WT (Handling Unit Warehouse Task) Active Material Pick WT Outbound Delivery Final Storage Type OUT OUT Staging Area OUT Packing Station Outbound

Takk! SAP 2007 / Page 62

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