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    Kyle Sorensen

    Director, SAP Solution Consultants

    AN EVOLUTION IN SAP WAREHOUSEMANAGEMENT: CHOOSING THE RIGHTAPPLICATION

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    AGENDA

    About InfoLogix

    Task & Resource Management

    SAP ERP WM Overview

    Terminology

    SAP ERP WM Evolution

    Functional Overview

    SAP ERP EWM

    SAP SCM EWM

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    OVERVIEW

    Leaders in Enterprise Mobility Services Since 2001

    2009 Sales in Excess of 100MM - NASDAQ IFLG

    Large SAP Footprint with more than 2,200 clients

    Two Strategic Business Units Healthcare 55% - Commercial 45%

    Leaders in Enterprise Mobility Services

    Proprietary world class client care portal - over 50,000 assets

    Handle all aspects of the mobility lifecycle

    Strong Patent Portfolio

    19 patents related to mobility and RFID

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    SAP LES SERVICES OVERVIEW

    SAPWM ,TRM & EWM

    Eliminate costly3rd party WMsystems, anddrive warehouse

    efficiency gains

    Optimizewarehousingoperations byleveraging nativeSAP features &functions

    SAP Console &Web Dynpro

    Extend real-timefunctionality &reach of yourshop floor

    personnel

    Tasked based realtime automaticdata collection foreither character orbrowser based RFterminals

    Built in SAP

    Applications

    Fulfilling keyoperationsoutside of SAPcore functionality,

    such as parcelshipping,cartonization andyard management

    Development offullyintegrated objectoriented ABAP applications tomeet specificcustomerrequirements inSAP LES and SAPSCM arena

    Cross Docking& Yard

    Expedite yourreceiving andshippingprocesses and

    gain yard stockvisibility

    Leverageenhancedfeatures withinSAP to reducetime consumingreceiving andshippingprocesses

    XMIIIntegration

    Connectingdisparate 3rd partysystems andintegration of

    MHE

    Seamlessconnectivity withnative SAPsolutions,PLC andconveyer controlASRS integration

    TransportationManagement

    Quick andefficientorganization oftransportation

    activities

    Monitoringtransportationactivities.

    Settlement ofcosts for eachservice agent

    CHALLENGE

    SOLUTION

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    SELECT CLIENT LIST

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    SAP ERPWarehouse Management

    The Building Blocks of SAP SCM Extended

    Warehouse Management

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    TERMINOLOGY

    SAP ERP WM

    All SAP ERP versions up to mySAP ERP 4.7 with Extension Set. 1.1

    SAP ECC 5.0 and ERP 6.0

    SAP ERP EWM

    mySAP ERP 4.7 with Extension Set 2.0

    SAP ECC 5.0 and ERP 6.0 with Enterprise Extension SCM (EA-SCM)

    SAP SCM EWM

    SCM EWM 2006 (also known as 5.0) running decentralized only

    SCM EWM 2007* (also known as 5.1)

    SCM EWM 7.0*

    SCM EWM 7.1*

    This can run centralized or decentralized

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    VERSION/RELEASE INFORMATION

    ERP WM(Traditional WM)

    ERP WM DecentralizedWM (dWM)

    ERP

    3.14.0

    ERP

    4.54.6C

    ERP

    4.7extset1.1

    ERP

    4.7extset2.0

    ERP

    ECC5.0 &6.0

    SCM

    EWM5.05.17.07.1

    ERP ExtendedWM (EWM)

    SCM Extended WM(EWM)

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    SAP ERP WM OVERVIEW

    Prior to the Release of SCMExtended WarehouseManagement (EWM), SAPhad Continued to Build on itsOriginal R/3 Warehouse

    Functionality with EachRelease

    The Following Slides Showthe Evolution of the ERP

    Package and its Offerings

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    SAP ERP EVOLUTION - SAP RELEASES BY DATE

    R/2

    1990s - WM was a sub module with the R/2 system (strong locator

    system, but not a robust WMS)

    R/3

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    Placement/Removal Strategies

    Data Collection with SAP Console

    Basic Wave Planning

    Unique Pallet ID Management Storage Units

    Inventory / Cycle Count Strategies

    Packing

    Handling Unit Management

    Decentralized WM (dWM)

    Warehouse Monitoring Tools

    TRM Task and Resource Management

    SAP ERP WM EVOLUTION

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    Warehouse Management Systems (WM) Inbound/Outbound DeliveryTransfer Order

    Inventory Document

    TRM (LANDSCAPE)

    Guided from LES Controls Resources Communications Instructions

    RF Terminal RF Terminal RF Terminal

    SAP LES

    Controls Storage Bins Controls Goods

    Task & Resource Management (TRM) Task Creation Task Selection & Submission Task Confirmation Exception Handling

    Guided from LES Controls Resources Communications Instructions

    Source: SAP

    Work & Equipment Interface

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    TRM OVERVIEW

    So, What Does TRM Mean?

    XYZs Interleaving

    Mechanization/Automation integration

    P&D locations (High Bay, N/A Storage)

    Handling Units Catalyst

    Bundling tasks

    Pick and pass

    What Drives a Client to TRM?

    ROI from automated task assignment

    Interleaving

    Complex, process (multi-step, clustering)

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    TRM

    Resources

    Equipment + Worker = Resource

    Define properties of equipment and

    resource

    Assign capabilities and allowed

    activities

    Assign prioritization assignments

    Resource evaluated with availability,

    location, task status, and current

    load content

    Source: SAP

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    TRM

    Site Map Management

    Bins (Storage Bin, Work Center, P&D)

    Grouping of locations

    Define Routes with properties (length, duration, priority)

    Two Components

    Bin Management

    Route Management

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    TRM

    Source: SAP

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    TRM ASSIGNMENT

    AvailableTasks

    Tasks waitingfor execution

    AllowsTasks

    Task permittedfor resources

    Tasksortingstrategy

    Sorting &prioritization

    Taskselectionprocess

    Sorting &interleaving

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    TRM MONITORING TASK & RESOURCES

    Source: SAP

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    TRADITIONAL WM VS. TRM: THE DIFFERENCE

    Source: SAP

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    SAP ERP EWM

    SAP ERP EWM (Release 4.7 Extension Set 2.0)

    Dynamic Cycle Counting

    Cross-Docking

    Yard Management

    Value-Added Services

    TRM Enhancements

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    SAP SCM Extended Warehouse Management

    SAP Supply Chain Management Suite 7.0

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    SAP SCM EWM OVERVIEW

    Fully Integrated into SAP SCM Suite

    A Part of the Service Parts Execution (SPE) Section of SAP SCM 7.0

    Recommended Installation on a Separate Server (Decentralized)

    Connection Exists Back to ERP Release 4.6C with Service Pack 6.0

    SAP NetWeaver 2004s Platform New qRFC Technology for Interface to ERP System (Combination of

    BAPI and CIF Technology)

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    SAP SCM EWM OVERVIEW (CONT)

    4 Digit Warehouses, Storage Types, and Storage Sections; 18 Digit

    Bins

    TRM Functionality Embedded into the Solution

    Assignment of work can be manual, automatic, or per request by activity

    Priority Weightings

    Improved Packing Specifications from ERP Solution for Different

    Processes of Warehouse Activity

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    SAP SCM EWM OVERVIEW (CONT)

    Improved Standard RF Execution with Delivered RF Wizard for Screen

    Flow

    Greater Flexibility for Process Design with Standard Configuration

    Example, the introduction of activity areas. These are logical groupings of

    bins for warehouse activities such as picking and put-away. Allows for

    complex sorting of bins by area.

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    SAP SCM EWM OVERVIEW (CONT)

    Handling Unit Management Defined at Storage Type Level

    Can exist with non-handling unit items in the same storage type and bin

    Core functionality around the use of handling units

    Serial Number Tracking at the Bin Level

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    KEY DIFFERENTIATORS OF ERP WM VS. SCM EWM

    More flexible warehouse structures

    Fully integrated packaging specifications

    Improved standard RF transaction

    capability, enhanced screen flows and

    simplified customization

    Ability to integrate different process flows

    into warehouse design and task

    execution

    More flexibility in replenishments

    Enhanced monitoring and reporting

    capabilities

    More complex putaway strategies

    possible

    More flexibility in replenishments

    Enhanced monitoring and reporting

    capabilities

    More complex putaway strategies

    possible

    True kitting functionality (kit to stock or

    kit to order)

    Advanced slotting and rearrangement

    capabilities

    Integrated Labor Management module

    Integrated warehouse automation

    control module (MFS)

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    SAP SCM EWM INBOUND PROCESSING

    New Complex Putaway Strategies

    Unloading

    Counting

    Deconsolidation

    Value-added services (packaging)

    Putaway

    Quality Inspection Engine within EWM

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    SAP SCM EWM OUTBOUND PROCESSING

    Wave Planning and Execution

    Definition and release at the delivery line item level

    Defined process routings for steps such as picking, VAS, packing,

    Staging, and loading

    SAP delivered wave templates

    Automatic, manual, or immediate release

    Kit to Order and Kit to Stock

    Delivery Split Functionality

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    SAP SCM EWM SLOTTING & REARRANGEMENT

    Slotting

    Process to ensure efficient storage and picking of goods

    Determines the optimal putaway parameters like storage type, storage

    section, and bin type

    Can determine a product fixed bin

    Considers product data, storage requirement data, and packaging data

    Automatic update of product master

    Can execute in simulation

    Subsequent Tool for System-Guided, Warehouse Rearrangement

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    SAP EWM FUNCTIONAL AREAS

    Loading/Unloading

    Receiving Quality Inspection

    Putaway

    Replenishment

    Picking

    Packing

    Value Added Services

    Kitting

    Palletization/Container

    Management Yard Management

    Production Supply/Receiving

    Task Interleaving RF Processing

    Labor Management

    Slotting

    Batch Management

    Serialization

    Units of Measure

    Monitoring

    Reporting

    Analytics

    Security

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    ADDITIONAL FUNCTIONALITY

    Additional Functions of EWM

    Yard Management

    Cross-Docking (integrated with Transportation)

    Transportation Management

    GTS (Global Trade Services) Country of Origin

    EH&S (Environmental, Health & Safety)

    Value-Added Services

    Route Determination

    Customer Returns

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    ADDITIONAL FUNCTIONALITY (CONT)

    Labor Management System

    Enhanced Yard Management Solution

    Kitting-to-Stock

    Batch Management Enhancements

    Catch Weight Support

    RFID Enablement

    Goods Receipt Optimization

    Production Integration Enhancements

    Serial Number Search capability Enhancement

    More Robust Material Flow Systems Support

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    PLANNED FUNCTIONALITY FOR SAP SCM EWM 7.1

    Transportation Integration Enhancements

    Standard integration to ERP transportation (LE-TRA)

    Can integrate to an external transportation planning system

    Allows usage freight cost calculation in ERP

    Allows for complex, multi-step and multi-modal (i.e. rail, truck, sea, air)

    transports

    Enhanced Returns Handling / Reverse Logistics

    Visibility of damage within internal network

    Adjustments (price, quantity, scrap, returns) allowed across company

    codes and countries

    Return purchase orders

    Return stock transport orders

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    SAP SCM EWM VERSION INFORMATION

    Integration Options Deployment Options

    Master Data Transactional Data EWM 5.0 EWM 5.1 / 7.0 / 7.1

    ERP

    Release

    4.0-4.6b Custom IDoc Custom IDoc (D) (D)

    4.6c IDoc IDoc (D) (D)

    4.7 (EE 2.0) CIF IDoc (D) (D)

    ECC 5.0 CIF IDoc (D) (D)

    ERP 6.0 CIF qRFC (D) (D)

    ERP 6.0 EhP3 CIF qRFC (D) (D) or (C)

    ERP 6.0 EhP4 CIF qRFC (D) (D) or (C)

    (D) = Decentralized(C) = Centralized

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    EWM VERSION FUNCTIONALITY MATRIX

    EWM 5.0 EWM 5.1 EWM 7.0 EWM 7.1Core WM

    Slotting

    Yard Management

    Material Flow System

    Kit to Order*

    Kit to Stock*

    Centralized on ERP*Labor Management

    RFID Enablement***

    Batch Mgmt Enhancements*

    Production Receiving*

    Production Supply**

    Opportunistic Cross Docking

    Graphical Warehouse LayoutResource Management

    Transportation Mgmt Integration**

    * Dependent on ERP 6.0 with Enhancement Pack 3 - ** Dependent on ERP 6.0 with Enhancement Pack 4*** Integration with SAP Auto ID Infrastructure (AII) - Planned for Ramp-Up release Q4 2009

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    WHATS THE FIT?

    Good Excellent* Environmental Health & Safety

    Distribution Activity

    High Volume

    Operational Complexity

    Value Added Services

    ERP WM Standard dWM SCM EWMTRM

    Warehouse-Only QM

    Tight Integration to EH&S*

    RF Capability (SAP console)

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    SAP ERP EVOLUTION (CONT)

    Functionality built within SAP WM3.X included the following:

    Storage and Facility Management managedifferent batches, stock types (vendorconsignment stock, own), and stock status(quality, unrestricted)

    Warehouse Structure basic building blocks ofthe warehouse (storage type, storage sections,and bins)

    Stock Management mixed storage and

    homogeneous storage possible Material Master Data addition of WM fields in

    MM views Units of Measure WM unit possible at WM level SLED Posting Changes material to material, stock

    status to stock status Transfer Requirements/Transfer Orders See

    Appendix A

    Ability to Post Stock Differences upon putawayonly

    Fixed Bin Replenishment Putaway Strategies Picking Strategies Storage Unit Management HAZMAT Inbound Material Processing

    Internal Movements Outbound Material Processing Posting Changes material to material, stock

    status to stock status Transfer Requirements/Transfer Orders See

    Appendix A Ability to Post Stock Differences upon putaway

    only Fixed Bin Replenishment Putaway Strategies Picking Strategies

    Storage Unit Management HAZMAT Inbound Material Processing Internal Movements Outbound Material Processing Physical Inventory

    * Annual* Continuous* Cycle Count

    * Zero Stock Check- Basic Reporting- Authorizations- Archiving- Interfaces Available to External Systems (i.e. RF

    devices)- User Exits Available

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    SAP ERP EVOLUTION (CONT)

    Functionality built within SAP WM 4.0included the following:

    Lean WM New Org. Structures such as gates, picked

    items zone, and pick area Capacity to search up to 30 Storage Types

    (previously 10) Number of Storage Unit Types increased to 30

    (previously 10)

    Number of Storage Sections searchedincreased to 30 (previously 10) Up to 99 items can be managed in a bin with

    Putaway strategy P (previously 14) More than 1 storage location can be warehouse

    managed under the same warehouse number(previously only 1 warehouse per storagelocation and plant was manageable).

    Pick strategy performance enhanced (active

    capacity check) WM unit of measure possible at material level Enhanced stock search (i.e can search own

    stock before vendor consignment stock) Enhanced storage section search capability Create TO for GR from Return Stock

    functionality Customer Exit available for Replenishments

    Planned TO times used for the basis ofworkload calculation and incentive wage

    TO Splitting balance workload between users Ability to change a TR Ability to process posting changes completely in

    WM Enhanced putaway strategy K and Bulk putaway

    (ability to block from further stock placements toensure FIFO)

    Ability to process QM samples in thebackground

    2 Step Picking Enhanced strategy M through roundingquantities on the material master

    +++ calls a customer exit for Stringent FIFO Pre-picked shipping units Free Packing Planning and Monitoring Tools Picking Waves Rough Workload Estimator

    WAM (warehouse activity monitor) Physical Inventory Changes monetary limits

    can be set for recounts Quantity reduction Display material texts with Release Order Parts

    Staging

    S O O (CO )

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    SAP ERP EVOLUTION (CONT)

    Functionality built within SAP WM4.5A included the following:

    New component added (LES) vs. WM

    dWM (Decentralized Warehouse Management)available

    KANBAN capabilities

    Destination bin changeable upon putaway TOconfirmation

    Ability to close out TRs (i.e. set deliverycomplete)

    TO processing comment added

    Basic pre-allocated stock cross docking (hot list)

    Inbound delivery becomes available

    Ability to putaway stock that was incorrectlypicked on a delivery

    Enhanced picking reports

    Enhanced HAZMAT processing

    Physical inventory enhanced inspection lotprocessing

    Functionality built within SAP WM4.6A/B included the following:

    Ability to suppress differences in confirming TOs

    Two-step TO confirmation possible

    Native RF capabilities

    RF Monitor available

    Enhanced dWM capabilities

    Use of Enjoy transactions (LS01 to LS01N) make

    transactions easier to use Reports converted to ABAP List Viewer (ALV)

    gives the user the ability to sort, sum, etc

    SAP ERP EVOLUTION (CONT)

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    SAP ERP EVOLUTION (CONT)

    Functionality built within SAP WM4.6C included the following:

    Added additional SAP Console (RF)transactions and fixed many bugs

    Ability to create a replenishment TOautomatically

    Handling Unit Functionality

    Physical Inventory Changes counting at quant

    level possible Basic interleaving possible

    Enhancements to dWM posting changesinitiated from dWM, delivery split

    Proof of Delivery functionality

    Packing Station

    Functionality built within SAP WM 4.7ext. 1.1 included the following:

    1 TO possible for multiple deliveries

    Partial GR for an IBDN possible

    TRM (Task and Resource Management)introduced

    Data changes to dWM can be timed

    Several ERP systems can be tied to a single

    dWM instance

    SAP ERP EVOLUTION (CONT)

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    SAP ERP EVOLUTION (CONT)

    Functionality built within SAP WM 4.7ext. 2.0 included the following:

    Support for DSD (Direct Store Delivery)

    Planned and Opportunistic Cross Dockingfunctionality

    Value Added Services

    Yard Management

    Dynamic Cycle Counting

    TRM enhancements (Log monitor, capacitychecks at the node level)

    RF serial number capture possible on theDelivery

    Functionality built within SAP ERP2004 (ECC 5.0) or SAP ERP 2005 (ECC

    6.0) included the following:

    Advanced Transportation Planning and VehicleScheduling using APO

    Direct Store Delivery enhancements

    Archiving enhancements

    Progress Confirmation of jobs (background status

    update every 30 min, foreground every 10seconds)

    WCU (Warehouse Control Unit) controlsautomation of warehouse devices; optimizedwhen used in conjunction with TRM

    SAP ERP EVOLUTION (CONT)

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    SAP ERP EVOLUTION (CONT)

    Functionality built within SAP SCMEWM 5.0 includes the following:

    Slotting

    Rearrangement

    Transportation Cross Docking

    Tight EH&S Integration

    Enhanced Customer Returns requires CRM

    Kit to Order requires CRM

    HUM activated at the Storage Type Level

    Serial Number Enhancement can track SN toa bin without needing an HU

    Storage type and section now 4 digits

    Bin name is now 18 digits

    Material Flow Systems support

    Functionality built within SAP SCMEWM 5.1 includes the following:

    Labor Management RFID enablement YMS Enhancements Kit to Stock Goods Receipt Optimization Batch Management Enhancements Production Integration Enhancements

    Serial Number search capability enhancement Catch Weight Support More Robust Material Flow Systems support

    SAP ERP EVOLUTION (CONT)

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    SAP ERP EVOLUTION (CONT)

    Functionality built within SAP SCMEWM 7.0 includes the following:

    Production Supply

    Opportunistic Cross Docking

    Graphical Warehouse Layout

    Resource Management

    Functionality built within SAP SCMEWM 7.1 includes the following:

    Integration to SAP ERP Transportation (LE-TRA)

    Integration to External TMS (such as SAP TM7.0/8.0)

    Enhancements for Return Logistics