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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
Westernacher Consulting and Services Staying Ahead of the Competition —Techniques to Leverage the Full Capabilities of SAP Extended Warehouse Management
© Westernacher │ www.westernacher-consulting.com │ Version 1.0 Final
Knowing where to go is important, but reaching your goals is the real achievement.
Neil Wightman
© Westernacher │ www.westernacher-consulting.com
STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
1
Traditionally, there was always a trade-off between the amount of functionality a software package offers and the
speed and flexibility with which it can be implemented
On the other hand, companies are more and more demanding when it comes to connecting to eCommerce
solutions, integrating contract logistics, while flexibly modeling end-to-end warehouse processes to meet
existing and future logistics requirements
• Learn how to leverage the full potential of SAP EWM and its core functionality
• Understand how SAP EWM can help you to flexibly model end-to-end intra-logistics processes – sharing best
practices and lessons learned from real customer examples
• Get an overview of how SAP EWM integrates with SAP TM
• See how SAP EWM can be integrated in an end-to-end eCommerce scenario leveraging latest Hybris
technology
In This Session
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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Business Imperatives by Industry
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
• In light of decreasing margins, rising customer expectations, and mounting supply chain complexity,
companies face the challenge of ensuring the cost-efficient and reliable execution of their logistic and
warehouse operations
• Best-run companies master this challenge by optimizing logistics and fulfillment execution processes,
which is of paramount importance in order to remain competitive in today’s environment
• Despite industry-specific requirements, we do see a common trend when it comes to …
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
3
Business Imperatives by Industry, continued
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
Heterogeneous sales and distribution channels
• Seamless integration of warehouse logistics, multi-channel order taking, as well as contract logistics
• Shorter lead times and missing consolidation opportunities and flexible replenishment
• Store, eCommerce, and network distribution as well as industry-specific processes and best practices
Broader assortments and shorter Inventory range
• High volumes and throughput, low quantities, high frequency
• Optimal asset, space, and resource utilization
• Complex warehousing processes with high degree of variations
Shorter response and reaction time – from order to shipment
• Customer-, channel-, and demand-based optimization of warehouse activities
• Order, promotion, and special stocks as well as dynamic distribution models
• High ratio of customer and store returns
Industry-specific processes and value-added services
• Mixed pallets, low article stock, heterogeneous inventory, and stock purity
• Labeling and tagging, best-before date tracking, and catch-weight, “floor-ready” distribution
• Industry-specific product/article attributes and parameters
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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• Warehouse operation-centric logistic
model primarily focusing on
outsourced contract logistics
• eCommerce and order management
integration
• Sophisticated value-added service
offerings and process flexibility for
competitive differentiation
• Integration to Transportation
Management
• Industry-specific processes
• Reverse logistics
Warehouse Centric Network Logistics Transportation CentricProduction
Distribution Center Spare Parts Management Hubs and Yards Embedded Logistics
Ind
ustry
Ve
rtica
l
Business Imperatives by Warehouse Type
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
• Service parts management based
on a bill-of-distribution model
• Service-level commitments
• Order processing, fulfillment, and
returns management
• Supply chain coordination and
inventory planning, balancing,
replenishment, and distribution
• Different logistic scenarios and
multi-echelon supply chains with
different LSP roles and levels of
integration
• Load building and multi-stage cross-
docking
• Customs clearance
• Necessary step in globalized supply
chains
• Staging for complex supply chain
processes
• Planning and workload visibility
• Railcar, container, and vehicle
management
• Trans-shipment processing
• Commoditized service and asset
management
• Production supply-focused
in-house logistics
• Supplier consolidation
• Kanban/JIT/JIS
• Recycling/waste
• Replenishment
• Large investment in assets
(buildings, production
facilities, etc.)
• Large scale – single entity
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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Warehouse Centric Network Logistics Transportation CentricProduction
Distribution Center Spare Parts Management Hubs and Yards Embedded Logistics
Business Imperatives by Warehouse Type, continued
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
Business Imperatives
• Efficient Space Utilization
• Optimized Movements
• Increased Logistics Speed
• Core Warehousing Operations
• Customs Handling
• Transportation Integration
• Shipment Consolidation
• Value-Added Services
• Reverse Logistics
• Cross-Docking
• Order entry processing & fulfillment
• Warehouse Automation
• Inventory Planning/Deployment
Process RelevanceHub & Yard
Operations
Embedded
Logistics
Spare Parts
ManagementDistribution
Center
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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• For supply chain networks, in order to be able to respond to changes and provide the required flexibility,
warehouse execution needs to be seamlessly integrated into the entire supply chain to monitor exceptions
and to provide insight into planning and operations
• All this requires visibility into the logistics network and traceability of material flows and logistics
execution
• Companies are challenged to offer multi-site, multi-service warehouse operations and execution to their
customers while mitigating technical challenges – all under a constant pressure to meet their customers’
expectations and flexibly react to changes
Lessons Learned
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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Implementing state-of-the-art warehouse solutions
• Implement industry-specific warehouse processes
• Implement warehouse solutions – from large to mid-size, as well as small warehouse locations
• Set up streamlined product flows and reduced handling, such as flow through and cross-dock
Lessons Learned, continued
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
Integration and automation
• Seamlessly integrate warehouse solutions with the existing IT footprint and Infrastructure
• Leverage warehouse automation, voice picking, and storage and retrieval systems
• Transportation management, eCommerce scenarios, and complex fulfillment requirements
Scalability and flexibility
• Functional flexibility and scalability to meet ambitious process and business requirements
• Hybrid scenarios and deployment options, cloud-based usage concepts, and virtualizations
• Flexible process modeling, second- and third-level support
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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• Ever since the first SAP R/3-based versions
and leading right up to the current SAP SCM-
based systems, functionality has been
continually expanded and adjusted
according to customers’ needs
• In 2005, in addition to Warehouse
Management (WM) as part of SAP ERP, SAP
introduced SAP EWM
SAP Extended Warehouse Management – Introduction
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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SAP EWM was originally developed for complex warehouse and distribution centers with a high number of
different products and a high document volume, and in contrast to WM, it offers many new and expanded
functions and process-modeling capabilities.
Warehouse
Request
(optional)
Wave ManagementPicking
Putaway
Posting Change
Stock Transfers
Scrapping Warehouse
Task(s)
Warehouse
Order
Manual
Creation
Confirmation
Exceptions
Physical
Inventory DocumentAutomatic
Creation
WHT
WO
RF Queues
Manual
Modeling and controlling flexible warehouse processes
Combining your storage process steps into one storage process – you
use EWM storage control to map complex putaway or stock removals.
You can use the process-oriented as well as layout-oriented
methods for storage control. The goal of storage control is to
display your complex putaway or stock removal process
steps based on your processes or your layout data.
Process-Oriented Storage Control
Layout-Oriented Storage Control
1 2 3a
3b
1 2 3
2a 2b
1 2 3
SAP EWM Core Concepts
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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Storage &
OperationsInbound
Processing
Goods Receipt Putaway Processing
Goods Receipt
Preparation
Putaway
Execution
Cross-Docking
ASN Handling
Transportation unit handling
Unloading
Goods receipt
Import customs processing
PLC communication via Material Flow System
Storage ConditionsHandling & storage
Outbound
Processing
Bin determination
Returns handling
Slotting
Putaway
Preparation
Quality Inspections
Deconsolidation
Catch weight
Repacking
Labeling & Tagging
WorkCentre
Goods Receipt
On Dock
Merchandise Distribution
Flow-through X-Docking
SAP EWM supports the execution of inbound logistics processes by providing visibility of supply chain activities
from truck arrival to storage – including door scheduling, optimized goods receipt, and storage processes with
quality management, slotting, and handling of best-before dates, catch weights, and different pack sizes.
SAP EWM Inbound Processing
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
• Better use of manpower
• Facilitate cross-docking
• Streamline receiving and dock
management
• Optimize inventory placement
• Improve inbound inventory
visibility
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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SAP EWM helps to flexibly manage and integrate all internal warehouse processes, such as the replenishment of
picking areas and physical inventory. Through extensive reporting, alerts, event management, and labor
management functionality, retailers are able to establish transparent processes for all their warehousing and
distribution operations.
SAP EWM Storage and Operations
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
• Eliminate annual physical counts
• Track every unit down to the
lowest level
• Efficiently place new items
• Manage inventory balances
• Synchronize the movement of
products
• Eliminate inefficient movements
and redundancies
• Improve facility utilization
• Improve the alignment of
activities to resources
Kit-to-Stock
Outbound
Processing
Inbound
ProcessingStorage &
Operations
Rearrangement
Replenishment
Value-Added Services
Storage Conditions
Physical Inventory
Cold Storage
ScrappingStaging & Consumption for Production
Receipt from Production
Production Integration
+ =
Posting Changes
“Lean Manufacturing”
Internal
Movements
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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SAP EWM also supports the execution of outbound logistics processes. Wave management and shipment unit
planning help to maintain an optimized picking process for outbound deliveries, including options for packaging,
value-added services, and staging.
SAP EWM Outbound Processing
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
• Greater inventory accuracy and
availability
• Reduce picking, shipping, and
billing errors
• Higher customer-service levels
• Shorten order turnaround times
• Provide value-added services
quickly
• Take advantage of cross-dock
opportunities
• Simplify rough workload planning
and balancing monitoring
employee performance
Picking
Preparation
Channel Integration
Order Allocation
Route Determination
Outbound
Processing
Storage &
Operations
Inbound
Processing
Preparation & Picking Loading &
Goods Issue
Cross-Docking
Packing
Cartonization
Kit-to-Order
Palletization
PrintingPick-Point
Picking Execution
Paper-, RF-, & Voice-based picking
Picking &
Packing
WorkCentre
Consolidation &
Staging
Loading &
Goods Issue
MFS/PLC
Wave Management
Stock removal Strategies
Picking bin determination
Pick path
Work planning optimization
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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Transportation
(Pick-up) Request
Planning &
Dispatching
Dock/Door
Assignment
Transportation
Execution
Sub-Contracting
Requirement
Planning
(e-)Sourcing
Contract
Management
Operational
Procurement
Invoice
Processing
Inbound Delivery
Processing
Unloading & ROD
Internal Routing
Deconsolidation
Quality Inspection
Repacking
Putaway
Bin Determination
Catch-Weight
Cross-Docking (Planned & Opportunistic)Pick-up
Truck-Avis
Yard Operations
Unloading Report
Inbound POD
Unloading & Receipt
on Dock
Scrapping
Cartonization
Slotting
Rearrangement
Inventory Counts
Replenishment
Scrapping
Batch Management
Best-Before
Labor & Resource
Management
Labeling, Tagging, Kitting, Value-Added Services
Outbound Delivery
ProcessingTransportation
Requirements
Planning &
Dispatching
Dock/Door
Assignment
Transportation
Execution
Sub-Contracting
Truck-Avis
Yard Operations
Outbound POD
Loading Report
Carrier Booking
Sales Order
Processing
eCommerce
Integration
Customer
Service
Order Fulfillment
Billing & Cash
Collection
Claims & Returns
Financial Services
Route Determination
Wave Management
Pallet Building
RF Optimization
Picking Execution
Goods Issue
Packing/Labeling
Consolidation
Loading/Printing
Staging
Storage &
Operations
Inbound
ProcessingOutbound
ProcessingOutbound
Transportation
Sales &
ServicesPlanning &
Procurement
Events &
Promotions
Serialization
Master Data MonitoringAlerts & Exceptions Shipping CockpitRFID/RF
Consignment
Storage Conditions Repair
Operations
Field
Service
Import ExportWarehouse Automation & Material Flow Control
Supply Chain Visibility & Transparency/Track & Trace
Forecasting &
Replenishment
Store
Replenishment
Listing &
Exclusion
Inbound
Transportation
TU & Vehicle Appointment TU & Vehicle Appointment
SAP EWM Function Map
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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SAP ERP
SAP
EWM
SCM Server
SAP ERP
SAP EWM
Non-SAP SAP ERP
SAP EWM
standalone
Non-SAP Non-SAP
Ava
ilable
sin
ce 2
00
6R
ele
ase
d N
ov.
20
15
SAP EWM
SCM Server
SAP EWM
standalone
S/4HANAS/4HANAS/4HANAS/4HANA
SAP EWM on
SCM Server
SAP EWM
standalone
SAP EWM
Add-On
No conversion path to S/4HANA, de-
installation of EWM Add-On will be
mandatory.
See SAP Note 1606493
SAP EWM Deployment Options Best
Practices
Flexible Deployment Options
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
• SAP EWM can be used in any warehouse environment and also can be integrated with SAP TM, ERP, CRM, APO,
and latest SAP eCommerce and e-procurement innovations
• Since release 5.1, EWM can be deployed as an SAP ERP Add-On, or as part of an SAP SCM Server system
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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Existing
Mid-Term
Long-Term
Embedded
SAP EWM
LE-WM
LE-WM
Embedded
SAP EWMLE-WM
Phase-out of WM: 31st December 2020Source: SAP Note 2269324
LE-WM
(LES)
SAP EWM
On-Premise
De-CentralCentral
LE-WM
(LES)
SAP EWM
On-Premise
LE-WM
(LES)
SAP EWM
On-Premise
S/4HANA On-Premise
S/4HANA On-Premise
S/4HANA On-Premise
Embedded SAP EWM
• EWM part of the S/4HANA 1610 software
stack
• Planned RTC: October 10th 2016
• Scope of EWM 9.4 is used
• No functional enhancements planned with
1610 release
• Focus on simplification and reduction of
redundant objects and data
Quote from SAP Note 2269324:
„
The Warehouse Management (LE-
WM) is not strategic anymore within
SAP S/4HANA, on-premise edition.
The (already available) alternative
functionality is Extended Warehouse
Management (SAP EWM). „
Flexible Deployment Options, continued
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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Inbound Processing
• Inbound Delivery replicate
• Inbound Delivery replace
• Inbound Delivery replace response
• Inbound Delivery replace
• Inbound Delivery replicate
• Inbound Delivery split
• Inbound Delivery goods receipt
• ...
Outbound Processing
• Outbound Delivery replicate
• Outbound Delivery delete
• Outbound Delivery (w/o order) replicate
• Outbound Delivery quantity change
• Outbound Delivery quantity change reject
• Outbound Delivery split
• Outbound Delivery goods issue
• ...
Inventory Management
• Goods movement
• Posting Changes
• …
SAP ERP
SAP EWM
Seamless Integration
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
A selection of ERP Interfaces …
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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EWM
ERP
Freight Order
Management
Site Logistics
Processing
Outbound
Processing
Inbound
Processing
Labor
Management
Warehouse
Logistics
SCM
SCM
Global ATP
Sales
(ATP)
Logistics
Execution
Human
Resources
Quality
Management
Materials
Management
APO
Shipment,
freight doc.
Check
ATP
Check ATP,
create inv.
Outbound/
Inbound
Delivery
Ext. wage
component
QI, Q-Result
Goods movements, stock transfer
requ.
Legacy
Transport Management
Stock (TU) in Yard, Yard Layout
TU + Vehicle + Door
Appointment
TU + Delivery
HU Assignment.
ASN
Outbound
Delivery Information
Compliance Check/
Customs check
Posting change for customs blocked stock
Legacy
Yard Management
Legacy
Loading Optimization
Legacy
Logistics Execution
SCM
SAP TM
SAP GTS
Inbound
Delivery Information
SAP BW
Legacy Warehouse Control Unit Legacy Physical
InventoryLegacy Graphical
WH Layout/Dashboard
Seamless Integration, continued
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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Cost: Interfaces are expensive to design, develop, and maintain if they are not available as standard
Time: Implementing multiple interfaced systems will take longer than implementing one single integrated system
Risk: Integration is one of the common reasons for project sub-optimal performance, failure, or overrun
Solution Value =Benefits Expected
Cost X Risk X Time
Data Mapping and Field Discrepancy Resolution 7 Days
Process Mapping and Discrepancy Resolution 6 Days
Interface Development: 5 Days
Testing and Documentation 2 Days
Total 20 Days
Sample Calculation and Non-Functional complications
Cost Consideration
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
SAP EWM provides best-of-breed functionality and seamlessly integrates with other SAP Business Suite
components.
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
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An app development starts with initial checks,
ideally introduced by a design-thinking exercise
• Check vehicle
• Check cargo
• Navigate to customer
• Unload from truck
• Lots of variants
• Customer present? Neighbor?
• Alcohol and age
• Damaged goods
In our example we started
with manual drawings …
Fiori Front-End Server (Gateway)
Back-End Server (incl. Gateway)
App-specific UI Add-ons
Fiori Infrastructure
App-specific Add-ons
SAP
Mobile Device
OData via HTTPS(s)
OData via trusted RFC
Ease of Use
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
Introduced in 2013 as a collection of apps, SAP Fiori has evolved into the new user experience (UX) for SAP
software, and now includes design guidelines and development resources, adding great flexibility and user
experience to SAP EWM
This modern UX reflects a broader paradigm shift, moving from a focus on features and functions to users and
their experience
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
20
The Design …The Idea … The Result …
Ease of Use – From Idea to Result
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
Using a design mockup tool – to create “clickable” results
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
21
• Click dummy is very easy to understand
• It tells functional people what to expect and developers what to do
• But: Avoid highly polished screens during first design steps
• Keep focus on functionality and interactions
• Know about technical limitations and guidelines
• Use a tool that functional people understand
• Consult developers during design
Ease of Use – Lessons Learned
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
22
OperationsUpgrade Projects/
User acceptance
Continuous
Improvement
Hardware/Software
Ongoing costImplementation
Hardware &
Software
Business
Improvements
Technical
Improvements
Rollouts
Application
Upgrade
System Upgrade
End-user
Operations
Productivity Loss
Application
Operations
System
Operations
Application
Software
System Software
Technical
Infrastructure
Training
Testing
Project
Management
Business Setup
Technical Setup
Organizational
Change
Process Design
Application
Software
System
Software
Technical
Infrastructure
L1
L2
“If TCO is what you measure, use the pencil not the PC, because the pencil has a lower TCO”
– Forrester Research
Implementation and Best Practices
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best
PracticesDemo Wrap-Up
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
23
Product functionality
• Core operations and Ease of use
• Interfaces and Integration
• Flexibility, Scalability, and
Extensibility
Solution Value =Benefits Expected
Cost X Risk X Time
Customers expect Solutions and not Products!
Customer Expectations and Value Drivers
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best
PracticesDemo Wrap-Up
• Companies are becoming less accepting of expensive, never-ending projects
• Projects will start with smaller, more targeted implementations
• Companies will reduce support and maintenance costs
• Packaged, or productized, services offerings will gain traction
• SaaS and cloud computing has a strong impact on logistic software
• Enterprise mobility features are becoming must-have tools
• Collaboration and training will gain momentum
Implementation skills
• Training, Documentation, and
Resources
• Previous installation experience
• Internal resources
Solution Implementation time
• Project implementation and Rollout
• Cost of implementation (TCI)
• Onboarding
Implementation risk
• Vendor-related criteria
• References
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STAYING AHEAD OF THE COMPETITION — TECHNIQUES TO LEVERAGE THE FULL CAPABILITIES OF SAP EXTENDED WAREHOUSE MANAGEMENT
24
Customer quotes
Restocking
Inbound
Processing
Outbound
Processing
Storage &
Operations
Cross-Processes & Functions
Outbound
Processing
Vendor
Distribution Center
Inbound
Processing
Store BInbound
Processing
Store A
Purchasing Sales
ASNPOHomogenous or
mixed pallets
Delivery
Customer
Order
eCommerce
3PL/LSPOrder
STO
STO
Store Distribution
Dire
ct D
eliv
ery
Contract
Logistics
Internal
Replenishment
Cross-Docking
Returns
Vendor
Returns
Interfaces and Integration
Example: Retail/eCommerce – A Typical Scenario …
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best
PracticesDemo Wrap-Up
10x Quicker inventory turnover period
(from more than 20 days to as little
as 2 days)
38% Faster document printing time for
hand-to-hand goods (from 40
minutes to 20 minutes per wave
count)
33% Faster quality control time of
warehoused products for a single
store (from 30 minutes to 20 minutes)
33% Faster loading time per truck for
dispatching (from 75 minutes per
truck to 50 minutes per truck)
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Outbound
Processing
Integration
• Integration to Planning
• Integration to eCommerce
• Integration to SAP TM
Storage &
Operations
Warehouse Planning
• Labor Management
• Replenishment
• Kit-to-order
Inbound
ProcessingGoods Receipt
• Putaway bin determination
• Print putaway Documents
• Putaway Execution
• Scanning
• Goods receipt
• EDI Confirmation
Wave
Management
• Work planning
optimization
• Pick path
• Picking bin
determination
• Picking
Strategies
• Printing
Container
LoadingPacking &
Pallet Building
• Export compliance checking
• Transportation unit handling
• Yard management
• RF Loading
• Printing
• Cartonization
• Kit-to-order
• Packing
Execution
• Palletization
• Printing
Picking
• Labor planning
optimization
• Variety of Pick
strategies
• Paper-, RF-, and
voice-based picking
• Picking
Execution
• MFS Integration
Material Flow
System• Material retrieval via direct integration to
PLC
• Monitoring of MFS via central
warehouse monitor
Cross-
Docking
Example: Retail/eCommerce – Sample Process Flow
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best
PracticesDemo Wrap-Up
Flexibility, Scalability, and Extensibility
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Fiori Logon and
Launchpad
Order Overview and
Pick-HU Creation
Pick Execution
with WT List
Pick-HU
Loading
Example: Retail/eCommerce – Bespoke Fiori Picking App
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best
PracticesDemo Wrap-Up
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• Order taking and customer check-out
• Hybris Server asynchronously (B2C) connected to SAP ERP
• Data replication via Datahub and Idoc order integration
• Order creation in SAP ERP and status replication to Hybris
• Automatic Delivery creation and replication to SAP EWM
• Picking execution in SAP EWM
Demo
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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1. SAP EWM functionality supports flexible modeling of warehouses and processes
Stock and process transparency
Optimization in process execution
2. SAP EWM seamlessly integrates with the SAP Business Suite and other solutions
Integration with technical components (RFID/MFS)
SAP ERP, eCommerce environment, and external software components
3. SAP EWM offers best-of-breed warehouse functionality
For all kind of warehouses – from small to large, from simple to complex
For all industries, flexible and scalable
7 Key Points to Take Home
Business Imperatives and Lessons Learned
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IntegrationImplementation and Best Practices Demo Wrap-Up
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4. SAP EWM can help you to improve your warehouse productivity and efficiency
Labor management
Integrated MFS for automated storage
Warehouse monitor and warehouse analytics
5. SAP EWM increases transparency and inventory accuracy
6. SAP EWM built-in functionality optimizes space, resource, and asset utilization
7. SAP EWM can help you to leverage cost savings in logistic core processes
Efficiency improvements and fast ROI
Flexible deployment and implementation options
7 Key Points to Take Home, continued
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
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SAP Generic Information about EWM
SAP Extended Warehouse Management (EWM) 9.4 on the SAP Help Portal
SAP Solution Explorer (SAP EWM)
Westernacher Tutorial Videos
Management Overview
Outbound Processing
Bob Caswell, “Build Your Own SAP Fiori App in the Cloud – 2016 Edition” (open SAP, February 2016)
https://open.sap.com/courses/fiux2
SAP Notes
Complexity Scope Matrix for SAP S/4 HANA – On-premise
Where to Find More Information
Business Imperatives and Lessons Learned
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IntegrationImplementation and Best Practices Demo Wrap-Up
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Your Turn!
Business Imperatives and Lessons Learned
SAP EWM Process ModelingDeployment Options and
IntegrationImplementation and Best Practices Demo Wrap-Up
Westernacher Consulting ME FZ-LLC
Building 12, 1st Floor, Dubai Internet City,
Dubai, United Arab Emirates
Phone: +971 4 313 2980
Web: www.westernacher-consulting.com
E-Mail: [email protected]
License no. 93894
Neil Wightman
Head of Supply Chain, Middle East
Phone: +971 4 313 2980
Mobile: +44 (0) 755432332
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