Best Practices for mySAP Retail

Distribution CenterLogistics with Warehouse

Management

SAP AG 2003, Title of Presentation, Speaker Name / 2

GR AreaGR Area

Shipping Area

Shipping Area

GOODS ISSUEGOODS ISSUE

GOODS RECEIPTGOODS RECEIPT

Document Flow in the Warehouse

WAREHOUSE

PUTAWAYTRANSFER ORDER

PUTAWAYTRANSFER ORDER

PICKINGTRANSFER ORDER

PICKINGTRANSFER ORDER

Outb. Del.Outb. Del.

POPO

Inb. DeliveryInb. Delivery

Rough GRRough GR

SAP AG 2003, Title of Presentation, Speaker Name / 3

Inventory Management - IM vs. WM

Storage Location

Storage bin

Site

Inventory Management on article level

Fixed storage bin can be maintained in the article master (text field)

Inventory Management on bin level

Putaway / Picking strategies are used

Storage bin is master data and can be determined by strategy (other than fixed)

Whse numberStorage typeStorage section

SAP AG 2003, Title of Presentation, Speaker Name / 4

GI-Area

GR-Area

1

Gate 1

2

Gate 2

3

Gate 3

4

Gate 4

H01High Rack StorageRandom Storage

Section 001 Fast moving items

Section 002 Slow moving items

K01Picking storage typeFixed storage bins

Section 001 Fast moving items

Section 002 Slow moving items

Warehouse Structure - Warehouse PC1

H01 / B01 / F01

Storage for

Special Goods

(depending on

master data)

Section 001 Total Section

SAP AG 2003, Title of Presentation, Speaker Name / 5

Storage Bins - Warehouse PC1

10 Aisles, 10 Stacks, 10 LevelsLevel 01 - 04 Fast moving items

Level 05 - 10 Slow moving items

Bins 01-01-01 to 10-10-10

21 aisles, each with 50 binsBins 01-20 Fast moving, Bins 21-50 Slow moving

Aisles 01-07 Picking Area 001Aisles 08-14 Picking Area 002Aisles 15-21 Picking Area 003

Bins KOM-01-001 to KOM21-050

5 aisles,

25 bins each

All Storage bins in

Total Section

Bins 01-001 to 05-025 GI-Area

GR-Area

1

Gate 1

2

Gate 2

3

Gate 3

4

Gate 4

SAP AG 2003, Title of Presentation, Speaker Name / 6

Putaway – Post Goods Receipt

GI Document

Goods Receipt

Movement type Article Quantity Site Stor. location

Goods Receipt

Movement type Article Quantity Site Stor. location

Transfer Requirement

Quant

in the GR-Area of the Warehouse

WMWarehouse

SAP AG 2003, Title of Presentation, Speaker Name / 7

Putaway – Transfer Order

Transfer Requirement

Quant Putaway(physical movement)

Confirm Transfer Order

Confirm storage bin and quantity

Create Transfer Order

Automatical determination

of storage bins

Transfer OrderTransfer Order

SAP AG 2003, Title of Presentation, Speaker Name / 8

Article Master Data Warehouse Management

Warehouse Data in the Article Master

Warehouse number (PC1) Storage type (K01) Picking storage type (K01)

Storage bin (KOM-04-003)

Maximum bin quantity (50) Minimum bin quantity (10) Rounding quantity (blank) Control quantity (blank) Replenishment qty. (blank)

SAP AG 2003, Title of Presentation, Speaker Name / 9

Stock check – Triggering Replenishment

Reserve storage

Picking Zone

Stock in binsmaller than

minimum quantity?

Triggerreplenishment

Transfer request is generated

Create Transfer Order

ConfirmTransfer Order

Physical Goods Transport

SAP AG 2003, Title of Presentation, Speaker Name / 10

Delivery is relevant for picking

Transfer order required

!!

Picking – Delivery

Delivery Article Quantity Site Stor. Location

Delivery Article Quantity Site Stor. Location

DeliveryDelivery

Goods Issue

WMWarehouse

SAP AG 2003, Title of Presentation, Speaker Name / 11

Picking – Transfer Order

Quant

ConfirmTransfer Order

Confirm Picking Quantity

Picking(physical movement)

Quant

In the shipping zone

Create Transfer Order

Automatical determination of storage bins

Picking ListPicking List

Transfer OrderTransfer Order

DeliveryDelivery

Picking Storage Type

SAP AG 2003, Title of Presentation, Speaker Name / 12

Goods Issue

GoodsIssue

GoodsIssue

Delivery is relevant for picking

Transfer order required

!!

Picking – Goods Issue

Delivery Article Quantity Site Stor. Location

Delivery Article Quantity Site Stor. Location

DeliveryDelivery

WMWarehouse

Picking is finished

SAP AG 2003, Title of Presentation, Speaker Name / 13

Mass Processing of Deliveries

Manual creation in the outbound delivery monitor using selection by:Shipping pointPicking dateRoute, carrier ...Free selection

Automatic generation using selection by:Picking date / timeAdditional filter by several criteria (e.g. route, shipping point, ship-to-party ...)

Considering capacity restrictions:Weight, volumeMaximum items on the picking listWorking time...

Group of Outbound Deliveries

orWave Pick

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

SAP AG 2003, Title of Presentation, Speaker Name / 14

Mass Processing of Deliveries

Collective Follow-On-Processing:

Create transfer orderConfirm transfer orderPost goods issue

Group of Outbound Deliveries

orWave Pick

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

SAP AG 2003, Title of Presentation, Speaker Name / 15

Warehouse Activity Monitor

List of all processes within a critical timeframe for execution:• Unconfirmed transfer orders• Open transfer requirements• Critical deliveries• ...

Direct follow-on-processingof the critical documents

List of all critical documents

SAP AG 2003, Title of Presentation, Speaker Name / 16

Information on:

• needed manpower• needed

transport capacity

Estimated Workload in:

Quantity Weight Volume Execution time

Calculation of workload using:

Logistics Load Category Unit of Measure Whse no. / storage type Warehouse process

Rough Workload Estimate

Planned Goods Issue

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

DeliveryDelivery

SAP AG 2003, Title of Presentation, Speaker Name / 17

R/3Application

Mobile Data Entry in WM

User interface SAPGui

SAPConsole

Online processing

Mobile Data Entry:

Mobile terminals in a radio frequency networkRobust hardware made for use in the warehouseBuilt-in barcode scannerTouch screen for easy useSimplified SAPGui (SAPConsole) as user interface

SAP AG 2003, Title of Presentation, Speaker Name / 18

Controlling the Warehouse via RF-Monitor

• transfer orders run into workload queues

• The warehouse employees are assigned the these queues and thus a workload of TOs.

• The overload of a queue can be avoided by monitoring the displayed TOs/employee relation.

RF-Monitor of the warehouse manager

The system provides the warehouse employees with transfer orders from their queue continuously.

Touch screen of the warehouse employee

Transfer Orders

SAP AG 2003, Title of Presentation, Speaker Name / 19

Physical Inventory with WM

Continuous Physical Inventory

InventoryDifference

Block storage bins

Unblock storage bins

Create Physical InventoryDocument

Print / ReleaseCount List

Count, Weigh, Measure, Estimate

Record Inventory CountResults

ProcessDifference List

Activate Physical Inventory Document

Clear differences in Warehouse Management

Clear differences in Inventory Management

Initialize Recount

SAP AG 2003, Title of Presentation, Speaker Name / 20

Better distribution of workload in the warehouse

The inventory can be carried out in periods with lower workload

Periodic Inventories are usually time consuming and labour intensive

Up-to-date information on the availability of the stock in the warehouse

The cost of the inventory can be reduced by planning it carefully

Benefits of Continuous Physical Inventory

SAP AG 2003, Title of Presentation, Speaker Name / 21

Processes Goods Receipt and Return Deliveries

SAP AG 2003, Title of Presentation, Speaker Name / 22

Processes Replenishment and Goods Issue

SAP AG 2003, Title of Presentation, Speaker Name / 23

Process Variant Mass Processing of Deliveries

SAP AG 2003, Title of Presentation, Speaker Name / 24

Process Warehouse Physical Inventory