SAP Solution in DetailSAP Supply Chain Management

ExtEnDED WArEhouSE MAnAgEMEnt With SAP® SuPPly ChAin MAnAgEMEnt

�

©Copyright�007SAPAG.Allrightsreserved.

NopartofthispublicationmaybereproducedortransmittedinanyformorforanypurposewithouttheexpresspermissionofSAPAG.Theinformationcontainedhereinmaybechangedwithoutpriornotice.

SomesoftwareproductsmarketedbySAPAGanditsdistributorscontainproprietarysoftwarecomponentsofothersoftwarevendors.

Microsoft,Windows,Excel,Outlook,andPowerPointareregisteredtrademarksofMicrosoftCorporation.

IBM,DB�,DB�UniversalDatabase,OS/�,ParallelSysplex,MVS/ESA,AIX,S/390,AS/400,OS/390,OS/400,iSeries,pSeries,xSeries,zSeries,Systemi,Systemi5,Systemp,Systemp5,Systemx,Systemz,Systemz9,z/OS,AFP,IntelligentMiner,WebSphere,Netfinity,Tivoli,Informix,i5/OS,POWER,POWER5,POWER5+,OpenPowerandPowerPCaretrademarksorregisteredtrademarksofIBMCorporation.

Adobe,theAdobelogo,Acrobat,PostScript,andReaderareeithertrademarksorregisteredtrademarksofAdobeSystemsIncorporatedintheUnitedStatesand/orothercountries.

OracleisaregisteredtrademarkofOracleCorporation.

UNIX,X/Open,OSF/1,andMotifareregisteredtrademarksoftheOpenGroup.

Citrix,ICA,ProgramNeighborhood,MetaFrame,WinFrame,VideoFrame,andMultiWinaretrademarksorregisteredtrademarksofCitrixSystems,Inc.

HTML,XML,XHTMLandW3CaretrademarksorregisteredtrademarksofW3C®,WorldWideWebConsortium,MassachusettsInstituteofTechnology.

JavaisaregisteredtrademarkofSunMicrosystems,Inc.

JavaScriptisaregisteredtrademarkofSunMicrosystems,Inc.,usedunderlicensefortechnologyinventedandimplementedbyNetscape.

MaxDBisatrademarkofMySQLAB,Sweden.

SAP,R/3,mySAP,mySAP.com,xApps,xApp,SAPNetWeaver,Duet,PartnerEdge,andotherSAPproductsandservicesmentionedhereinaswellastheirrespectivelogosaretrademarksorregisteredtrademarksofSAPAGinGermanyandinseveralothercountriesallovertheworld.Allotherproductandservicenamesmentionedarethetrademarksoftheirrespectivecompanies.Datacontainedinthisdocumentservesinformationalpurposesonly.Nationalproductspecificationsmayvary.

Thesematerialsaresubjecttochangewithoutnotice.ThesematerialsareprovidedbySAPAGanditsaffiliatedcompanies(“SAPGroup”)forinformationalpurposesonly,withoutrepresentationorwarrantyofanykind,andSAPGroupshallnotbeliableforerrorsoromissionswithrespecttothematerials.TheonlywarrantiesforSAPGroupproductsandservicesarethosethataresetforthintheexpresswarrantystatementsaccompanyingsuchproductsandservices,ifany.Nothinghereinshouldbeconstruedasconstitutinganadditionalwarranty.

3

ContEntS

Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Advantages of Extended Warehouse Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5InboundProcesses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

YardManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5PutawayandStockRemovalStrategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5ExpectedGoodsReceipt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Cross-Docking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5PickfromGoodsReceiptandPushDeployment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6TransportationCross-Docking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Value-AddedServices.................................................................. 6QualityManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

OutboundProcesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7WaveProcessing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7ReplenishmentProcessing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

StorageBinManagementandOptimization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8ManagingHandlingUnits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Slotting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8TakingPhysicalInventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

DistributionCenterProcesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9PlanningandMonitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9RadioFrequencySupport. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9SerialNumberSupport. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9ResourceManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9LaborManagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Automation,SupportforMaterialFlowSystems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Improved Warehouse Control: Key to Greater Supply-Chain Efficiency.................. 11

––––––––

––

–––

––––––

4

Allcompaniestodayareoperatinginaturbulenteconomicenvironment.Everydimensionofbusinessrequiresgreaterspeedandefficiency.Theabilitytoplanandexecuteefficientlyaswellassenseandrespondtoreal-timesignalsisfastbecomingacom-petitivefactor.SAPempowerscompaniestoadapttoanever-changingcompetitiveenvironmentbyofferingthemnotonlytheplanningandexecutionsoftwaretomanageenterpriseoperations,butalsothevisibilityandcollaborationtechnologytoextendthoseoperationsbeyondcompanyboundaries.

Tokeeptheirsupplychainsrunningsmoothly,companiesneedtomanagetheirwarehousesefficiently.Theyarelookingforsoft-warethatcanhelpthemimprovetheirwarehousemanagementprocesses.

TheSAP®SupplyChainManagement(SAPSCM)applicationoffersextendedwarehousemanagement(EWM)functionalitythatincludessupportforinboundandoutboundprocessing,facilitymanagementandstorage,andphysicalinventorymanagementaswellasforcross-docking,workloadbalancing,andlabormanagement.ThisfunctionalityhasnowbeenenhancedtoprovidebroadersupportandisavailableintheSAPExtendedWarehouseManagement(SAPEWM)applicationforSAPSCM.

SAPEWMprovidesflexible,automatedsupportforprocessinggoodsmovementsandmanagingstockinyourwarehousefacili-ties.Itisdesignedtoworkspecificallyinhigh-volumewarehousesthatrequiresupportforcomplexprocesses.Theapplicationbringsplanningandexecutionfunctionsclosertogether,enablingwarehousestotakeadvantageofplanningfunctionsaswellascomplexexecutionfunctions.

WithSAPEWM,youhavetheoptionofmappingallyourwarehousefacilitiesindetail,downtostorage-binlevel.Thisnotonlygivesyouanoverviewoftheentirequantityofmaterialinthewarehouse,butalsoletsyoudetermineinexactlywhichbinacertainmaterialislocated.Asaresult,youcanoptimizetheuseofvariousstoragebinsandstockmovementsaswellasstorematerialstocksfromseveralplantstogetherinrandomstorageareas.

BecauseSAPEWMiscompletelyintegratedwithinventoryman-agementanddeliveryprocessingsoftware,itenablesyoutocon-trolandoptimizevariouswarehouseprocesses.Businessprocess-estriggeredinotherapplicationcomponentstriggermovementsinyourwarehouse.Youcanorganize,control,andmonitorthesemovementsinSAPEWM.

ExECutivE SuMMAryADvAntAgES of ExtEnDED WArEhouSE MAnAgEMEnt

5

Putawaystrategiesincludemanualentry,fixedbinstorage,generalstorage,additiontoexistingstock,emptystoragebin,nearfixedpickingbin,palletstorage,andbulkstorage.Strategiesforstockremovalincludefirstin,firstout;lastin,firstout;firstexpiration,firstout;partialquantitiesfirst;removalaccordingtoquantity;shelf-lifeexpiration;andfixedbin.Anyofthesestrate-giescanbeenhancedormodifiedusingbusinessadd-in(BAdI)technology.

Expected Goods Receipt

Normally,anadvancedshippingnotification(ASN)orinbounddeliveryiscreatedintheenterpriseresourceplanning(ERP)sys-temtostartthegoodsreceiptprocessinthewarehouse.WithSAPEWM�007,theERPpurchasingdocumentisrepresentedasaplannedgoodsreceiptenablinggoodsreceiptprocessestobegininthewarehouse.ThegoodsreceiptisthenstreamlinedwithinSAPEWM,allowingyoutocreateandverifyinbounddeliveriesbasedonthearrivalofthetruck.Tolerancechecksareprocessedontheincomingreceipts.ThewarehousesupervisorcanchecktheworkloadandplanfuturereceiptsbasedonthenumberofASNandpurchase-orderitemsscheduledfortheday.Goodsreceiptfunctionsincorporateinternalreceiptsfromproductionordersandstocktransportsfromotherfacilitiesaswellasreceiptsfromexternalsuppliers.

Cross-Docking

WithSAPEWMyoucanreducewarehousecostsbyminimizingproducthandling.Cross-dockingletsyoutransportproductsdirectlyfromgoodsreceipttogoodsissue,therebyincreasingthenumberofhandlingunitsprocessedandexpeditingthefulfill-mentofurgentorderswhilereducingprocessingandstoragecosts.

highlightS

ThefollowingsectionsdescribethekeyfunctionsandbenefitsofSAPEWM.

inbound Processes

Yard Management

Withtheapplication’snewyardmanagementfunctionality,youcanmanagetrucksandtrailersinyouryard,maptheirmove-mentsbasedonwarehousetasks,andmonitortheyardviaawarehousemonitor.Youcandefinetheyardwithintheware-housestructure.Thisdefinitioncanbeuniquetoonewarehouseorusedformultiplewarehouses.Oryoucandefinemultipleyardsforonewarehouse.Parkingspacesaremappedasstandardstoragebinsthatcanbegroupedintoyardsections.Vehiclesarecheckedintoandoutoftheyardusingcheckpoints.Fromacheckpoint,avehiclemightbedirectedtoaparkingspaceortoadoorforimmediateloadingorunloading.Aninboundtrailercanbeunloadedandthenimmediatelyloadedasanoutboundtrailertoincreaseassetutilization.Yardmovementsareper-formedviaradiofrequency(RF)ordesktoptransactions.Theservice-enabledarchitectureoftheyardmanagementfunction-alityprovidestheadditionalflexibilityyouneedtoenhanceschedulingandstreamlinevehicleortransportunitactivities.

Putaway and Stock Removal Strategies

WithSAPEWM,putawayandremovalstrategiesareusedtoassignappropriatebinsforplacementandpicking.Thesestrate-giesdeterminethecorrectbineachtimeawarehousetaskiscre-ated.Forgoodsreceipt,theputawaystrategyusesparametersintheproductmasterdatatomaximizewarehousecapacity,auto-maticallydeterminingsuitablestoragebinsforincomingprod-ucts.Ongoodsissue,removalstrategiesaredeterminedfromproductmasterdatatofindtheoptimalpickingbin.Theapplica-tionalsoletsyouprocesscertaingoodsmovementsmanually,overridingsourceanddestinationstoragebinsthatarenormallydeterminedautomatically.Putawayandremovalstrategiesarealsousedtoprocessinternalmovements–forexample,replenishmentandrearrangement.

6

Pick from Goods Receipt and Push Deployment

Pickfromgoodsreceipt(PFGR)andpushdeployment(PD)functionsareopportunisticorunplannedcross-dockingactivities.Forunplannedcross-docking,youworkwithstandardinbounddeliveriesandstartbyusingthestandardgoodsreceiptprocess.Atthetimeofgoodsreceipt,thewarehouseprocesstypeandstocktypearecheckedtodeterminewhethertheproductisrelevantforputawaydelay.Ifrelevant,theputawaydelayisstartedandthegenerationofputawaywarehousetasksisdelayed.Ifaback-ordersituationexists,anoutbounddeliverydocumentiscreatedandtheproductiscross-dockedtotheshippingarea.Ifthewarehouseprocesstypeandstocktypearenotrelevant,thewarehousetasksaregeneratedforputawaywithoutdelay,whichmeansthatPDandPFGRfunctionsarenotperformed.

TheSAPAdvancedPlanning&Optimization(SAPAPO)com-ponentdefineswhetheraninbounddeliveryisPD-relevantorPFGR-relevant.ThismeansthatSAPAPOdefinesthecross-dockingrelevanceafterpostinggoodsreceipt.

InPFGR-relevantdeliveries,SAPAPOdetermineswhetherstockistobemoveddirectlyafterreceipttoacustomerortoadifferentwarehouse.ThedecisionisbasedononeorseveralbackordersheldintheSAPCustomerRelationshipManagement(SAPCRM)application.ForPD-relevantdeliveries,SAPAPOdecideswhethergoodsaretobemovedfromonelocationtoanother.Thisdecisionistriggeredbygoodsreceiptandisbasedonasalesforecast.

Transportation Cross-Docking

Transportationcross-docking(TCD)isaformofplannedcross-dockingthatallowsyoutooptimizetransportationcosts.TCDsupportsthetransportofhandlingunitsacrossdifferentdistributioncentersorhubsontothefinaldestination.Itallowsyoutoconsolidatemultipledeliveriestonewtransports,changethemeansoftransport,orprocessexportactivitiescentrally.Ifthefinaldestinationisadistributioncenterorwarehouseatthecustomersite,asalesorderinSAPCRMformsthebasisforTCD.However,youcanalsouseTCDtotransporthandlingunitstoyourownfinalwarehouse.Inthiscase,astocktransferorderformsthebasisforTCD.

Value-Added Services

WithSAPEWM,value-addedservices(VAS)canbeexecutedinthewarehouseusingorders.TypicalVASactivitiesareassemblingproduct,labeling,packing,orkitting.TheVASorderinstructsthewarehouseworkeraboutwhatactivityneedstobeperformedforwhichproducts.Theorderlinksthedeliveryitemwiththepackagingspecificationcontainingthedetailsfortheservicethatistobeexecuted.ThepackagingspecificationtellswhatVASactivitiesneedtobeperformed,andthedeliveryitemtellstheexactamountofworktobedone.AuxiliaryproductsusedforparticularservicesarealsorecordedintheVASorder.YoucanusethedatacollectedintheVASorderasabasisforcalculatingexternalbillingandinternalserviceproviders.TheVASorderalsoservesasdocumentationoftheactivity.

7

Quality Management

Qualitymanagement(QM)functionsinSAPEWMareenabledthroughaqualityinspectionengine(QIE)thatmapsinspectionprocesses.TheQMfunctionsletyoucheckwhetherdeliveredproductssatisfyyourqualitycriteria.Upongoodsreceipt,youcaninspecttheentiredelivery,inspectdeliveredhandlingunits,countthedeliveredproducts,andinspectthedeliveredproductsforacustomerreturn.Withinthewarehouse,youcantriggeraqualityinspectionmanuallyforaproductthathasbeenputaway.UsingSAPCRM,youcandefineparametersthatinfluencethegoodsreceiptandqualityinspectionprocessofcustomerreturns.Theresultsofaninspectionareevaluatedandcanthentriggerlogisticalfollow-upactionssuchasstocktransferorscrapping.

SAPEWMalsousestheQIEtoprocessqualityinspectionfunc-tions.Aqualityinspectionallowsyoutouseadefectcatalogtoappraisethequalityofanobject(suchasadelivery),handlingunit,orproduct.Youcanalsointegratetheseinspectionfunc-tionsintovariousapplicationsintheSAPBusinessSuitefamilyofbusinessapplicationsaswellasintonon-SAPapplications.Theinspection-enginefunctionssupplementthecomprehensiveQMfunctionsintheSAPProductLifecycleManagement(SAPPLM)application.TheQIEwasdesignedforuseinaheterogeneoussys-temlandscape.Becauseitisservice-oriented,itcansupportnewprocessessuchastheprocessforexecutinginspectionsviathedecentralizedwarehousemanagementsoftwareinSAPSCM.

outbound Processes

Wave Processing

Awavegroupswarehouserequestitemstocontrolwarehouseprocessessuchaspickingactivitiesorpostingchanges.Thesegroupingsarethenprocessedtogether.Warehouserequestandsplititemscanbegroupedintowavesbasedonactivityarea,route,orproduct.Wavescanbegeneratedautomaticallyorman-uallyusingtemplates.Thewavetemplatedefinestheattributesofthewaveandservesastheinfrastructureforautomaticwaveassignment.Templatesenablethesamewaveattributestobereusedfordifferentwarehouserequestitemsthatcomplywiththesameconditions.Theycanalsobeusedinmanualwavecreation.Inthecaseofautomaticwavecreation,templatesmustbeusedtoassignorsplititemstoexistingwaves.

Theoutboundprocessstartsbygroupingdeliverylineitemsintowavesthatcanmodelaconstraint-basedcalculationthattakesmaterialhandlingequipmentintoconsideration.Withthenum-berofpalletassemblypositionsknown,anappropriateamountofworkcanbeidentifiedandreleasedtothefloor.Certainpicks,suchasfullpallets,areidentifiedtobypasstheconveyorsystemandinsteadbepickedfromreserveanddirectlystagedforship-ping.Thisresultsinasignificantlaborsavings.Otheritemsarepickedtoaconveyor,wheretheyareroutedtoeitherapallet-buildingstationoraparcel-shippingstation.Afterbeingplacedonapalletormanifested,productsareloadedandagoodsissueisposted.

8

Replenishment Processing

Replenishmentprocessesensurethatforwardpickareasarestockedinappropriatequantitiestosupportpickingrequire-ments.Therearemultiplepossibilitiesformanagingreplenish-mentincludingminimumandmaximumstocklevels,demand-basedstockrequirements,andexception-basedreplenishment.Inareplenishmentsystembasedonminimumandmaximumlevels,whentheminimumlevelisreached,areplenishmenttaskiscreatedtorefillthebininpalletquantitiesuptothemaximumlevel.Demand-basedreplenishmentplansarebasedonopenwarehouserequests.Directorexception-basedreplenishmentprocessesreacttoshortfallsthatbecomeapparentduringwarehousetaskconfirmation.

Storage Bin Management and optimization

Yourfacilityisdescribedandmappedbasedonthedifferentstor-ageareaswithinSAPEWM.Forexample,high-rackstorageareas,bulkstock,andfixedbinareasaremappedasstoragetypeswithinthewarehousestructure.Stockscanbemanagedasacombina-tionofproductsandpackagingmaterialsdefinedashandling units.Handlingunitsprovideflexibilityofmovementaswellasvisibilityintothecontentsofapalletorcontainer.

Productstocksaremanagedatastorage-binlevel.Storagebinsaredefinedaccordingtoyourrequirements,usingtemplates.Everystoragebinismappedinyourwarehouse,enablingyoutoconstantlytrackallmovementsindetail.Youhavecompletevisibilityofyourwarehouseproductsatalltimes.

WithSAPEWMyoucanoptimizestorageofyourwarehousestockssothateachproductisstoredinthemostoptimumbinaccordingtosizeandfrequencyofaccess.Firstyouuseslottingfunctionstosuggestthebestfitforaproductwithintheware-house,thenyoureorganizethewarehouse,relocatingproductsthatarenotcurrentlystoredinoptimumpositions.TheslottingfunctionenablesSAPEWMtoupdatemasterdatatoensureproperplacementandpickingofproductsinthefuture.

Inventorymanagementandextendedwarehousemanagementarefullyintegrated.Byenablingyoutousephysical inventoryproceduresandenterstockdifferences,SAPEWMensuresthatthebookinventorybalanceininventorymanagementalwaysmatchestheactualwarehousestock.

Managing Handling Units

Ahandlingunitisaphysicalunitcomprisingthepackagingmaterialandtheproduct.Youcanaccessalltheinformationcontainedintheproductfromthehandlingunit.Theitemscomprisingahandlingunitcanconsistofthematerialitems,auxiliarypackagingmaterials,orotherhandlingunits,whichcanbedisplayedinanoverview.Eachhandlingunitisuniquelyidentified.

Generalstatusmanagementenablesyoutodocumentthephysi-calstatusofthehandlingunit(suchasplannedorrealized)andotherattributes(suchasweighed,loaded,blocked,orpostedgoodsissue).Additionallyyoucandefineauserschematocreateyourownstatusforapackagingmaterialtype.

Slotting

Slottingdeterminestheproductmasterdatathatdirectsput-awayandremovalstrategies.UsingtheslottingfunctioninSAPEWM,youcanpreventstorage-bindeterminationforproductsthathavenotyetbeenslotted.Atthewarehouselevel,youcancontrolwhetherstorage-bindeterminationofaproductistobepermittedwhenslottinghasnotyetbeenperformed.

Theslottingsoftwaretakesintoaccountproductdata,require-mentdata,andpackagingdatatodeterminethemostoptimumstoragebininthewarehouse.Theseparametersdescribetheareainwhichtheproductistobestored,thepropertiesrequiredforthestoragebin,andtheputawaystrategytobeused.Slottingsoftwarealsolooksatmasterdatathatisdependentontheexe-cutionprocess.Ifaputawayprocessisdependentonexecutiondata,thisinformationisincludedduringthestorage-bindeter-

9

minationprocessbutdoesnothaveanaffectontheslottingresults.Youcansimulateslottingresultsbyrunningtheslottingfunctionwithoutupdatingtheproductmaster.Whenyouaresatisfiedwiththeresult,youcansaveandactivateit.

Taking Physical Inventory

WithSAPEWM,physicalinventoryisperformedattheware-houselevel.Regularcyclecountingensuresyouhavetherightamountoftherightproductintherightbin.YouarefreetodefinethefrequencyforcountingA,B,andCitems.Ananalyzer,availablewithconfigurabletolerancegroups,letsyoumanagestockdifferencesandthenevaluateandpostthedifferencesbacktotheERPsystem.Youcanalsodefinethemaximummonetaryorpercentagelimitallowabletospecificusersforpostingdiffer-ences.Andyoucanmanagecountsataproductorbinlevelbycyclecounting,verifyingthattheproductisintherightlocation,verifyingthebalanceatthetimeofputawayorpick,conductingzeroorlow-stockchecks,andconductingannualwall-to-wallphysicalinventoryprocedures.

Distribution Center Processes

Planning and Monitoring

AcentralwarehousemonitorinSAPEWMgiveswarehousepersonnelcompleteandup-to-datevisibilityintoallwarehouseactivity.Thewarehousemonitordisplaysinformationonpicking,putaway,physicalinventory,resourcemanagement,warehousestocks,oranywarehouseactivity.Userscansetupthemonitortoshowonlythebusinessprocessesthatinterestthem.Theycanalsousethemonitorasaninteractivetoolforassigning,initiating,andcontrollingwork.

Radio Frequency Support

SAPEWMsupportsradiofrequencytechnologyforfaster,moreaccuratedataentry.RFdevicesinteractdirectly,ensuringaccuratedatavalidation.Theyletyouenterandverifydatausingbarcodesortags,whichensuresahigh-qualitystandardinyourwarehouse.SAPsoftwareisdeviceagnosticandprovidestoolstotranslatemessagesandinformationfromtheRFdeviceasneces-sary.Youcanuseradiofrequencyidentificationthroughoutyourwarehouseprocessesfortaskconfirmation,packing,loading,andunloading.

Serial Number Support

SerialnumbersarealsosupportedinSAPEWMandcanbeman-agedatthedocumentleveloratthebinlevel.Ifserialnumbersaretrackedatthedocumentlevel,yourecordtheserialnumberonlyatthetimeofinboundoroutbounddelivery.Iftrackedatthebinlevel,thenumbersarenotonlyrecordedatthetimeofreceiptandissuebutarealsocapturedforeachtaskconfirmation.

Resource Management

Throughitsresourcemanagementfunctionality,SAPEWMmaximizestheefficiencyofwarehouseprocessesbyfacilitatingthemanagementanddistributionofworkviaqueues.TheresourcecanbeineitheranRFornon-RFenvironment.Thequeueshelpyouoptimizeselectionofwarehouseordersfortheresourcerequestingworkwhilethewarehousemonitorhelpsyoumonitorandcontrolresourceseffectively.

Assigningresourcestoqueuesensuresfocusedmanagementanddistributionoftasksthroughoutthewarehouse.Workcanbeassignedautomaticallyormanuallytoavailableresources.Resourcesrequestingsystem-guidedworkareprovidedwiththeoptimumtasks,basedonarangeoffactorsincludingmode,lateststartdate,executionpriorities,assignedqueues,resourcequalifications,andwarehouseorderstatus.

10

Awarehouseorderrepresentstheoptimumexecutableworkpackageawarehouseemployeeshouldperformataspecifictime.Itconsistsofeitherwarehousetasks–whicharegroupedintowarehouseordersandavailableforprocessing–orphysicalinventoryitems.Thescopeandtypeofawarehouseordercanbeadjustedbyusingthewarehouseordercreationrulesthataredefinedincustomizing.Warehouseordersareassignedtowarehouseworkersviaresourcemanagementfunctionality.

Labor Management

SAPEWMoffersrobustlabormanagementfunctionalitythatallowsyoutotrackemployeeperformanceagainstengineeredlaborstandardsorotherperformancemetrics.Withthisfunc-tionalityyoucanmanageyourworkforceefficientlyusingEWMtoolsforplanning,simulating,andmeasuringemployeeactivi-ties.SAPEWMtracksdirectandindirectlabor,givingyouanaccurateoverviewofallwarehouseemployeeactivities.Usingauthorizationprofiles,itkeepssensitiveinformationsecureandupholdsassociateanonymity.

Withthisnewlabormanagementfunctionality,youarebetterabletomanageandmeasureemployeeproductivityandtoplan,simulate,measure,andviewwarehouseactivities.Out-of-the-boxreportingletsyouviewemployeeperformancebyindividualorbygroupforbothdirectandindirectactivities.EmployeescanhaveimmediatefeedbackontheirownefficiencybyviewingtransactionresultsontheirRFdeviceorinthewarehousemoni-tor,accessiblefromtheirdesktop.Traveltimesarecalculatedforbothverticalandhorizontalmovements.Supervisorscanplanandsimulateactivitiesacrossvarioustime“buckets.”

Thenewfunctionalityalsoletsyoudefinekeyperformanceindi-cators(KPIs)thatsupportyourbusinessmodelandconfigurealertswhenKPIsarenotmet.TheseKPIscanbedisplayedinagraphicalframeworkthatallowsyoutodisplaymultipleservicesatonce,givingyouaquickvisualofthemostimportantKPIsyouaretracking.Becausetheselabormanagementfunctionsareintegratedwithhumanresources(HR)software,youcannowofferincentive-basedwages.ThesupervisorhasanopportunitytoreviewandapprovetheworkloaddatapriortopassingbonuscalculationstotheHRsystem. Automation, Support for Material Flow Systems

SAPEWMalsocontainsaninterfacetoexternalsystems(ware-housecontrolunits),allowingyoutointegrateautomatedput-awayandstorage-retrievalsystems,forkliftcontrolsystems,con-veyorsystems,andotherautomatedequipmentforallproductmovementsusingstandardapplicationlinkingandembeddingprocessing.

Amaterialflowsystemallowsadirectconnectiontoautomaticstorageandretrievalsystems.Yousimplyconnectaprogram-mablelogiccontrollertoSAPEWM.Youcanusethismaterialflowsystemtocontrolmovementofhandlingunitsinautomatedsystems,toactivateordeactivateconveyorsegments,togroupconveyorsegments,ortoactivateordeactivatecorrespondenceatvariouslevels.Thewarehousemonitorgivesyouvisibilityformonitoringcommunicationpoints,currentandpreviousflow,andthecompleteflowforahandlingunit.

11

SAPEWMgivesyoufullcontroloverwarehouseprocesses,man-agingmovementswithinthewarehousefromthepointofgoodsreceipttogoodsissueandextendingtotheyardfromthetimeatrailerchecksinallthewaythroughtoproductcheckout.Itfeaturestheadvancedfunctionalityforslottingandrearrange-mentthatkeepsyourproductsstoredinoptimumlocationsandthelaborandresourcemanagementfunctionalitythathelpsyoumanageyourwarehousepersonnelandmeasuretheireffectivenessandefficiency.

SAPEWMalsogivesyouthetoolsyouneedtoimproveyourwarehouseefficiency.Forexample,whenanexceptiontothenormalprocessoccurs,SAPEWMprovidesthefunctionalityyouneedtokeeptheexceptionfrombecomingmajorissue.

Theapplicationextendsyourreal-timevisibilityandcontrolofwarehouseoperations.Itcantransformyouroperationsintoanadaptivefulfillmentsupplychaininwhichcommunitiesofcus-tomers,suppliers,andpartnersshareknowledgeandresourcestoadjustintelligentlytomarketconditions.Withtheabilitytorespondfastertochangesinsupplyanddemand,youincreaseyourcompetitivenessandultimatelyimproveyourbottomline.

TofindouthowSAPSCMandSAPEWMcanstreamlinewarehouseoperationsatyourcompany,pleasecallyourSAPrepresentativetodayorvisitusonlineatwww.sap.com/scm.

iMProvED WArEhouSE Control: KEy to grEAtEr SuPPly-ChAin EffiCiEnCy

Deployment Options

The SAP® Extended Warehouse Management

(SAP EWM) application was originally released

with the 2005 release of SAP Supply Chain

Management. It is connected to other SAP

software as follows:

• In a full landscape, it connects to the SAP ERP

2005 application using queued remote function

call (qRFC) and core interface (CIF) technology.

• Connections to SAP ERP software from release

SAP ERP 4.6C through release SAP ERP 2004

use an IDoc interface with CIF for master data.

• SAP EWM 2007 can also be deployed with the

SAP ERP 2005 software landscape using qRFC

and CIF technology.

50 080 992 (07/05)

www.sap.com/contactsap