Inventory and Warehouse Processes. Slide 2 Introduction Inventory and warehouse management are closely related to the fulfillment and production processes.

Inventory and Warehouse Processes

Slide 2

Introduction Inventory and warehouse management

are closely related to the fulfillment and production processes Warehouses often supply raw materials to

manufacturing Warehouses store and move finished and

semi-finished goods Warehouse management is an optional

subsystem that must be enabled and configured

Slide 3

Processes Process change

http://www.youtube.com/watch?v=Q20nhhT07f0

Picking and return http://vimeo.com/12948899

Automated pharma http://vimeo.com/72337318

Slide 4

Inventory without WMS

Slide 5

Inventory With WMS

Slide 6

Types of Goods Movement Receipt from production or procurement

Increases finished goods inventory Goods issue to production or fulfillment

Decreases raw material inventory Transfer postings change the status of a

good Stock transfers

Move goods from plant to plant or storage location

I’ll go through these in sequence

Slide 7

Goods Movement Goods can be received in the

warehouse as a result of Procurement Production

You received purchased goods in the procurement lab

Goods leave the warehouse Through shipping Through disposal

Slide 8

SteelCase Case 10 plants

Small short-term warehouses to store goods for a matter of hours

6 regional distribution centers

Slide 9

Goods Status Goods in the warehouse can be

Unrestricted Held for a customer or other reason In quality inspection In transit These goods are stored in storage

locations

Slide 10

Goods Status (Example) MB52 Warehouse stock Search for goods in a plant Restrict by materials types

Slide 11

Goods Status (Example)

Slide 12

Goods Status (Discussion) We can sell unrestricted stock Transit/Transf stock is stock in motion Restricted use stock includes

reservations Blocked stock is stock received

“conditionally” pending acceptance

A batch is a subset of stock managed separately from the material itself

Slide 13

Goods Movement (SAP)

Slide 14

Goods Receipt Remember it’s a receipt of goods into

inventory from a vendor Goods receipts are triggered by

Goods received from vendor from purchase

Unplanned receipts Customer returns

Logistics / Materials Management / Inventory Management / Goods Movement

Slide 15

Goods Receipt (SAP) Again, these are configurable Goods receipt (Other) MB1C

Slide 16

Types of Goods Receipts

Slide 17

Goods Issue To review, goods are leaving inventory

typically sold to a customer Goods issue event is triggered by

Planned resulting from a sales order Unplanned

Scrap / internal consumption / sampling

Slide 18

Goods Issue (Types)

Slide 19

Slide 20

Internal Warehouse Processes What happens in the warehouse stays in

the warehouse We are just moving goods around. We

are not revaluing them, buying them, or selling them

We will discuss in 2 parts The organizational units The processes of moving goods

Slide 21

WM Organizational Units A warehouse number defines a

warehouse complex made up of one or many buildings

Within a warehouse we have storage types We can configure as a

physical or logical subdivision of the warehouse complex

Slide 22

WM Organizational Units

Slide 23

WM Organizational Units There will likely be several storage

bins having the same storage type Storage bins belong to a section and

picking area (other organizational units), and have a capacity (weight, units, or both)

Slide 24

WM Config We have transaction codes to create

warehouses, storage types and other needed OUs

Slide 25

WM Organizational Units

Slide 26

WM Bin Reports We can look at bin utilization and time

in bin

Slide 27

WM Bin Creation We create storage bins based on

templates or perhaps manually

Slide 28

WM Organization Doors are locations where goods are

received or shipped

Slide 29

WM Organization (Door) Doors are configured through the IMG

Slide 30

WM Processes We add additional steps to move goods

from GR loading area to the warehouse (bins)

We add additional steps to move goods from warehouse to GI loading area

And a bunch of steps within the warehouse itself to do the picking and packing

Slide 31

Transfer Postings Change the status of a material in stock

Unrestricted use QA / QC Blocked In transit

Transfer postings do not always result in the physical movement of goods They might just change the logical status

of a good

Slide 32

Transfer Postings (Examples) From vendor owned inventory to

company owned inventory The vendor stores their materials in our

warehouse (consignment stock) Change a material’s characteristics

over time

Slide 33

Transfer Postings (Movement Types) Selected transfer postings

Slide 34

Process Example (GR) We receive goods into an interim

storage area We move goods into the warehouse

through a stock transfer

Slide 35

Process Example (GR) I issued a GR for a purchase order

where WM is enabled The goods are received into a holding area

with a storage bin corresponding to the PO

Slide 36

Process Example (GR) The detail shows

‘interim storage

Slide 37

Process Example (GR) We create a transfer order to put away

the material

Slide 38

Process Example (GR) And finally the transfer order gets

processes (here we put away)

Slide 39

Process Example (GR) And now my goods show up in the bins

Slide 40

Stock Transfers Use to physically move materials from

one organizational level to another Plant Storage location Etc.

Slide 41

Types of Stock Transfers Storage location to storage location Plant-to-pant transfer Company-code-to-company-code

transfer

Stock transfers do not take into account Transportation costs Negotiated value or changes in pricing Stock Transport Orders satisfy this

need

Slide 42

Stock Transfer (SAP)

Slide 43

Stock Transfer (Illustration)

Slide 44

Stock Transfer (Details) The procedure can be performed two

ways 1-step process

Goods issue and goods receipt happen at the same time

2-step process Goods go through an in-transit status

between goods issue and goods receipt A FI document is generated to record

the change in inventory

Slide 45

Stock Transport Orders These orders account for delivery and

stock in transit Billing can also be performed Valuation can be changed Progress of the transport can be tracked The sending plant is the seller and the

receiving plant is the buyer

Slide 46

Warehouse Organizational Data First, the warehouse management sub

system must be enabled for the following to work

Enabling the warehouse management process involves additional steps in the goods issue and goods receipt phase

Slide 47

Fulfillment Steps After outbound delivery and before

goods issue Warehouse issues transfer orders

Create and confirm Goods physically move from storage bins

(locations) to interim storage

Slide 48

Production (steps) The same confirmations are made

When raw materials are issued to production

When finished goods are transferred back to the warehouse

Slide 49

WH Controlling

Slide 50

WH Controlling

Slide 51

http://www.tcodesearch.com/transaction-codes/search?module=LE&comp=LE-WM&desc=Warehouse%20Management