1113 extended warehouse management - a 3pl perspective

8/10/2019 1113 Extended Warehouse Management - A 3PL Perspective

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Extended Warehouse Management - A

3PL PerspectiveMax Spilker, Roberto Omiccioli (Westernacher)

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Real Experience. Real Advantage.

[

2

Learning Points

Common challenges in a 3PL EWM implementation

Best practices to overcome implementation gaps/issues

Bill your WH operations to your customers




[ Westernacher History in Warehouse Management

3

Focus on SAP products & technology• R/2 and R/3 projects (FI, CO, PS, MM, SD, PP)

• Logistics: Development of WLS®, our own WMS running 100% on

ABAP; 1st release in 1994

1st project with SAP LE-WM 4.6C

1980

1993

2000

2004

2005

2007

Starting Warehouse Management activities• “Booming period” of automated highbay warehouses in Germany

• Individual programming / mainframe systems

WLS ® running on Netweaver

1st project with LE-TRM

2010

1st SAP-EWM implementation as a Partner of SAP Germany at

a leading automotive OEM

1st SAP-EWM go-live in 3PL industry. Birth of Warehouse

Billing Engine.




[ Questions that keep 3PLs awake at night

4

1. How to effortlessly integrate new clients, products,

services and client specific processes?

2. How to organize the warehouse in order to achieve

required service levels and work efficiently at the

same time?

3. How to organize the material and information flows?

4. How to bill the client for the provided services?




[ Some challenges are specific to the 3PL industry

Unexpected goods

receipt

• EWM expects that ASN is available before unloading• 3PLs do not always know what to receive

DescriptionChallenge

Billing for logistics

services • 3PL need capability to bill clients for provided logistics services

Onboarding new

clients

• Requirement for quick IT support for new clients• Creation of organizational objects and master data• Make use of predefined logistics services and corresponding process

templates

Product number

issue

• Client vs. own product number• Use client number for external use and own product number for internal

processes

Building interfaces tocustomer systems

• In order to transfer customer’s master data and transaction data to ownsystems




[

Standard SAP EWM Inbound Process Potential 3PL Inbound Process

3PLs do not always know what to expect…1

ASN

Item Material Qty

10 115566 500

20 133445 200

Unloading

Qty

correct?

Putaway Exception

Yes No

?

Counting & Manual creationGR Zone

Unloading

GR Zone

Inbound Delivery

Item Material Qty

10 115566 500

20 133445 200

Inventory





Unexpected goods

receipt





Onboarding new

clients


templates

Product number

issue


processes






[ Integrating multiple clients might lead to an issue with the material numbers

3PL

E R P

E W M

C

I F

Material

Material

Client 1 Client 2 Client 3 Client 4

Number

Range:

C01 – F99 G01 – H59 B95 – B99A01 – B99





Unexpected goods

receipt





Onboarding new

clients


templates

Product number

issue


processes






[ There is no unique solution to the interface challenges

SAP ERP

3Pl

EWM

3Pl

KAKA

FOFO

MM

EWM

3Pl

KA

FO

M

InvoicingInvoicing

Client 1

Web

Portal

Multiple sites /

Warehouse numbers

Communication

Platform

Client 2IDOC Interface





Unexpected goods

receipt





Onboarding new

clients

• Requirement for quick IT support for new clients• Creation of organizational objects and master data

• Make use of predefined logistics services and corresponding processtemplates

Product number

issue


processes






[ The 3PL onboards “ValueCustomer” as a new 3PL client

3PL

Client

ValueCusto

mer

ValueCustomer’s

customers

ValueCustomer’s

products

Goods

Distribution

Goods

Distribution

• Call Center Services• Order Management• Warehouse Logistics• Billing on behalf of ValueCustomer

3PL’s Services for ValueCustomer

Goods

Receipt

Goods

Receipt




[ Steps to be performed to support this business

1. Customizing

• Plant, storage location, integration into warehouse number

• Or, use vendor consignment stock to seperate from other stock

in the warehouse.

2. Interface • Interface to client system for master / transactional data

3. Master Data

• Material Master

• Packaging specifications

• (Customers)

• (Prices)

4. Assign

process

templates

• Assign process templates according to sales contract

5.

Programming

• Client specific labels

• Requirements not covered by SAP standard and process

templates




[SAP ObjectObject

Customizing and Master data: Organizational elements required to onboard

a new client such as ValueCustomer

ValueCustomer

• Plant and Storage Locations

• Or vendor consignment stock

• Customer and Vendor master data

• Follow defined procedures /

checklist. Create by copying sample

data

Best Practice Approach

ValueCustomer‘s Clients

• ERP Customers• EWM Business Partners

• Also possible to use one customer

with multiple ship to addresses.

• Interface via IDOC fromValueCustomer’s ERP system or via

communication platform.

ValueCustomer‘s Products• ERP and EWM product master data • Excel upload - LSMW

ValueCustomer‘s Packaging

Information

• Packaging specifications should be

created for each product to ensure

smooth EWM processes

• Excel upload – standard transaction

available in EWM.

ValueCustomer‘s product prices• SD pricing master data if required

for printing or billing on behalf off.• Interface or • Excel upload

Agreement between Tech Data -

ValueCustomer

• Sales contract • Basis for billing engine




[ Both system, ERP and EWM support the integration of multiple 3PL clients

into the same warehouse.

……

…

Plant 1

(ValueCustomer)

Plant 2

(Client 2)

SLOC

ROD

SLOC

AFS

SLOC

ROD

SLOC

AFS

WarehouseNumber

00A

Warehouse

Number 000A

Stock A

Owner:

(ValueCustomer)

Stock A

Owner:

(Client 2)

E R P

E W M




[

• 1• 1

In EWM, stock but also warehouse tasks always contain a reference to the

stock owner

Example of stock on bin:

Example of pick warehouse task:

In a multi client warehouse, stock and all tasks are always

separated by owner.




[ Process templates: Predefined service offerings / process templates make

onboarding easier…

Procurement Management

Strategic

Purchasing

Stock

Financing

Operational

Purchasing

Distribution Management

Sales

(cold calling)

Billing Web Portal

Customs

ImportCustoms

Warehouse

Export

Warehouse Logistics

Goods

Receipt

Quality

Inspection

Return

Management

Storage

Production

Warehouse

Packaging

material

warehouse

Distribution Logistics

Order

Management

Picking

Value added

services

Storage

Packing Transport

Production Services

Production

Supply

Pre-

assembly

Production

Quality

Inspection

Packaging

Transport





Unexpected goods

receipt





Onboarding new

clients


templates

Product number

issue


processes






[ Typical pain points for Logistics Service Providers with

warehouse billing

20




[ Development principles of Warehouse Billing Solution

based on SAP EWM technology

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[ Warehouse Billing Solution – Architectural Overview

EWM – Data extraction, and aggregation

ContractsContracts

InvoiceInvoice

Daily DataExtraction

Aggregation &AnalysisAggregation &Analysis

Material +

Price

Material +

Price

EWM with WBS ERP

Billing Run Debit RequestDebit Request

ECC – Combination with prices and

materials to create invoice




[ Warehouse Billing Solution – Execution Mechanics

23




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More information

Max Spilker ([email protected])

Roberto Omiccioli ([email protected])

Website:

http://www.westernacher.com/en/industry/logistics-service-providers




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1113 extended warehouse management - a 3pl perspective

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