SAP eWM Delta Overview

SCM Extended WarehouseManagement 7.0 Overview

Solution Management EWM

SAP AG

AGENDA

1. Introduction and Overview

2. Graphical Warehouse Layout

3. Resource Management

4. Cross-Docking

5. Production Supply

6. Continuous Improvements

SCM Extended Warehouse Management

Newest warehouse management application from SAP on the SCM platform

Developed as an integral part of our Supply Chain Management Solution

Designed to handle business requirements from simple to complex warehouses forcompanies in a variety of industry sectors

Release 5.0 general availability since November 2006

Release 5.1 general availability since May 2008

Release 7.0 general availability since May 2009

SAP: 16+ Years of Warehousing Expertise

Extending the Scope of our Warehousing solutions

20081993

• StorageUnits

• ParallelProcessing

1995

Integration• PP• QM• LIS

1997 1998

DecentralizedWM• Prototype

of RF

2000

• Native RF/SAP Console

• HUM• Packing Stn

2002

Task andResourceManagement

R/3Release2.0/2.1

R/3Release3.0/3.1

R/3Release

4.0

• Rough WorkloadEstimate

• Picking Waves/Two Step picking

• WarehouseMonitor

• Integration to HR

R/3Release

4.5

R/3Release

4.6

R/3Release4.7 EE1

2003

ERP EWM• XD• YM• VAS

R/3Release4.7 EE2

2005

SCMEWM5.0

SCMEWM5.1

SCMEWM7.0

20092006

•Slotting•Rearrange-ment

•WarehouseOrders

•WarehouseMonitor

•InternalRouting

•Labor Mgmt•MFS•WH Cockpit•RFID Integr.•Batch Mgmt•Serial Nr•Catch Weight•ESA

SCMEWM7.1

•Integrationto Transp.processes

*ReverseLogisticsenhancements

•GraphicalWH Layout•ProductionSupply•MerchandiseDistrib. XD

•TaskInterleaving

2010

Enterprise, Service Parts Execution and Network Focus

SAP Warehouse Management in mySAP ERP(integrated or decentralized WM)

Enterprise Focus SPE / Network Focus

Integrated Scenario

SAPSAPERPERP

Logistics FI/CO

WM

Decentralized ERP Scenario

ERPERP

SAPSAPLESLES

SAPSAPLESLES

OtherERP

Dec WM = full SAP ECC system

WMWM

SCM Extended Warehouse Management

SCM EWMAdd-OnExtended

WMExtended

WMExtended

WM SAP SCM

ERPERP

ERPERP

AGENDA

1. Introduction and Overview

2. Graphical Warehouse Layout

3. Resource Management

4. Cross-Docking

5. Production Supply

6. Continuous Improvements

Graphical Warehouse Layout

Defines the structure of the warehouse layout and yard using a 2D graphical tool that allows you to createthe warehouse/yard structure visually, improving and accelerating configuration

Provides graphical 2D representation of the warehouse and the yard of the warehouse enabling you tovisualize warehouse activities and allow interactive interventions

Displays resources and status information

Displays yard resources, e.g., vehicles and trucks, and allows color coding or logos to be used in order totrack status progress in yard

Allows navigation from graphics to related information

Easy GraphicsFramework

Other technologyFor next release

Mappingfor

EGF

Mapping

Data preparationand functionality

Back end(already existingCore functions)

GraphicalRepresentation ofWarehouse

Select Warehouse to View

Enter Warehouse Number to view graphically:

Visual Representation of Selected Warehouse

Zoom Possibilities — To Bin Level

Link to Storage Bin Characteristics

Using the left mouse click on the storage bin, we can immediately see the mostimportant characteristics of the storage bin

Link to Storage Bin Maintenance Transaction

Using the right mouse click, we can go directly into the storage bin maintenancetransaction.

Status Overview of Objects: Conveyors

Selecting the conveyor status allows us to see that three conveyors need attention

AGENDA

1. Introduction and Overview

2. Graphical Warehouse Layout

3. Resource Management

4. Cross-Docking

5. Production Supply

6. Continuous Improvements

Resource Management

Three Types of Optimization

To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:

Task interleaving: a process by which a resource, having just completed andconfirmed a task, is assigned a new task, the source of which is close to theresource’s current locationExecution constraint: enables you to control the execution of tasks in predefinedzones of a site, preventing resource bottlenecks and ensuring the workability of thesemi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actual task andrequests new work, the system checks the available open tasks in an area andsends a user to this area without assigning a specific task

Task InterleavingQueue Types for Task Sequencing

2 1

Inbound Internal Outbound

Execution Constraint

To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:

Task interleaving: a process by which a resource, having just completed andconfirmed a task, is assigned a new task, the source of which is close to theresource’s current locationExecution constraint: enables you to control the execution of tasks in predefinedzones of a site, preventing resource bottlenecks and ensuring the workability of thesemi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actual task andrequests new work, the system checks the available open tasks in an area andsends a user to this area without assigning a specific task

Execution Constraint Example

5 x Pickers22 x Pickers; 1 x Simple Forklift1ZN0624 x Pickers21 x Picker; 1 x Simple Forklift1ZN041

Resource TypesCombination

ZoneEC

There are currently four pickers subscribed to the destination zone ZN06 soEC 2 is available.However, since the source zone ZN04 has reached its capacity of four pickers,EC 1 is unavailable.Since the movement task is subscribed to an unavailable EC, it cannot beassigned to the worker, Marcus.

Semi-System Guided Work

To optimize the work with RF devices in a warehouse, we focus on threetypes of optimization:

Task interleaving: a process by which a resource, having just completedand confirmed a task, is assigned a new task, the source of which is closeto the resource's current locationExecution constraint: enables you to control the execution of tasks inpredefined zones of a site, preventing resource bottlenecks and ensuringthe workability of the semi-system guided mode of task selectionSemi-system guided work: whenever the user has finished his actualtask and requests new work, the system checks the available open tasks inan area and sends a user to this area without assigning a specific task

2 1

Semi-System Guided Work Example (cont.)

AGENDA

1. Introduction and Overview

2. Graphical Warehouse Layout

3. Resource Management

4. Cross-Docking

5. Production Supply

6. Continuous Improvements

Cross-Docking

Cross-docking is a method of materials processing by which materials thathave arrived at the warehouse are brought from goods receipt directly togoods issue without being put away:

Retail Merchandise XD is an existing cross-docking scenario in SAP ERP6.0 with Retail Solution switched on. Merchandise Distribution is essentialfor logistics processes in the retail industry. The retailers plan, control, andmanage their flow of merchandise from the vendors via distribution centersto the stores or customers.

Opportunistic cross-docking allows incoming deliveries to be redirectedto cover outbound requirements. The cross-docking decision is made inEWM based on information available in the warehouse.

Production cross-docking and production supply cross-docking.Opportunistic cross-docking for production supply.

Merchandise Distribution — Cross-Docking: Inboundand Outbound Deliveries

SAP Retail EWM

Inbound delivery

-Ultimate consignee for HU-CD processing method- Item type-Difference indicator-PO number/item

Run Collective PO Plan Allocation

Create Purchase Order

Vendor

ReceivePurchaseOrder

Send ASN/inbounddelivery

DistributionData

Create ASN/inbound delivery

Create “planned”outbound delivery Outbound delivery

-PO number/item-CD processing method- Item type-Difference indicator

Inbound delivery-CD processing method-PO number/item-Item type-Warehouse process type-Stock type

Outbound delivery-PO number/item- Item type-Warehouse process type-CD processing method-Stock type

Handling Unit (HU)-Ultimate consignee for HU

CD: Cross-Docking

Example 1: Retail Cross-Docking: Customer-Specific Pre-Packed Mixed HU

Goods Receipt

Final StorageType

Goods Issue

Active HU Warehouse Task (WT)Active Material Pick WT

Inactive Material Pick WTDeconsolidation

Mat AMat B

UC1Mat AMat B

UC1

Mat AMat B

UC1Mat AMat B

UC1

Inb.Del.Ref.Deleted

Door

Door

*UC1: Ultimate Consignee1

UC1

Example 2: Retail Cross-Docking:Mixed Handling Unit Within Ship-HU

Goods Receipt

Final StorageType

Goods Issue

Active HU WTActive Material Pick WTInactive Material Pick WT

Deconsolidation

Inb.Del.Ref.Deleted

Door

Door

CD Storage Type

Merchandise Distribution-Flow Through:Distribution by Customer (n:m Relationship)

STAGAREA1

Outb-1 CUST1

Pick by (all) customer to distribute theproducts to the intermediate bins

= Warehouse Order (WO) 1= WO 2= WO 3= WO 4

CUST1

CUST2

1010

10 10

10

10

Material 1

Material 2

Outb-2 CUST1Material 3

Outb-3 CUST2Material 3

Material 2

Outb-4 CUST3Material 3

Outb-5 CUST4Material 1

Material 2

STAGAREA2CUST3

DOOR1

DOOR2

101010

CUST4

10 1010

10 10

10

10 10

Pick by customer, limit to number of stagingareas (here 2)

= WO 1= WO 2

CD Storage Type

Merchandise Distribution-Flow Through:Distribution by Article (n:m Relationship)

STAGAREA1

Outb-1 CUST1

Putaway by product to distribute theproducts to the intermediate bins

= WO 1= WO 2= WO 3

CUST1

CUST2

1010

10 10

10

10

MAT1

MAT2

Outb-2 CUST1MAT3

Outb-3 CUST2MAT3

MAT2

Outb-4 CUST3MAT3

Outb-5 CUST3MAT1

Outb-6 CUST4MAT1

MAT2

STAGAREA2CUST3

DOOR1

DOOR2

1010

CUST4

10 1010

10 10

10

10 10

Pick by customer, limit to number of stagingareas (two here)

= WO 1= WO 2

Merchandise Distribution-Flow Through: DeliveryAdjustment

Outb-1 CUST1

Item10

QTY = 15

PO-47-10

Outb-2 CUST2

Item10

QTY= 15

PO-47-10

CD Storage Type

Item20

QTY = 10

PO-47-20

Item20

QTY=10

PO-47-20

1010

10 10Fairshare:Reduce 15 to 10for each customer

Start deliveryadjustment afterGR is complete

Underdelivery:(only 20 deliveredinstead of 30)Inb-1

PO-47-10

Inb-2

PO-47-20

10 10

1010

Cross-Docking

Cross-docking is a method of materials processing by which materials thathave arrived at the warehouse are brought from goods receipt directly togoods issue without being put away:

Retail Merchandise XD is an existing cross-docking scenario in SAP ERP6.0 with Retail Solution switched on. Merchandise Distribution is essentialfor logistic processes in the Retail industry. The retailers plan, control, andmanage their flow of merchandise from the vendors via distribution centersto the stores or customers.

Opportunistic cross-docking allows incoming deliveries to be redirectedto cover outbound requirements. The cross-docking decision is made inEWM based on information available in the warehouse.

Production cross-docking and production supply cross-docking.Opportunistic cross-docking for production supply.

Example: Opportunistic Cross-Docking(Homogeneous Handling Unit) — Inbound

Goods ReceiptArea

Counting Station

Final StorageType

VAS Station Inbound

VAS Station OutboundPacking Station OutboundStaging Area

CUST_Inb

CUST_Outb

IB IB IB IB

OUTOUTOUTOUTOUT

Active HU WT (Warehouse Task)Active Material Pick WTInactive Material Pick WT

IB

Outbound

Delivery

Inbound

Delivery

Example: Opportunistic Cross-Docking(Homogeneous Handling Unit) — Outbound

Goods ReceiptArea

Counting Station

Final StorageType

Packing Station OutboundStaging Area

IB IB

OUTOUTOUT

Active Material Pick WT

IB

Outbound

Delivery

Inbound

Delivery

Active HU WT (Handling Unit Warehouse Task)

AGENDA

1. Introduction and Overview

2. Graphical Warehouse Layout

3. Resource Management

4. Cross-Docking

5. Production Supply

6. Continuous Improvements

Production Supply

In order to use a product (component) for a manufacturing order, it has to bebrought to the production supply area. When EWM is used, the productshave to be picked in the warehouse and moved to the production supplyarea.

There are several ways to provide components that are required for amanufacturing order:

Pick parts/release order parts: The products that are needed as componentsfor an individual order (pick parts) or for multiple orders (release order parts)have to be staged in the production supply area in time and in the requiredquantity.

Crate parts/kanban: Products that are often used in the production area areprovided independently from the existing orders. The warehouse is responsiblefor filling containers as requested by production. Kanban is a specialized way tohandle crate parts.

Standard Organizational Structure

Separate EWM storage location: Stocks in the Production Supply Area (PSA) aremanaged in a separate EWM-managed storage location, providing transparency forthe Production Supply Area stocks both in EWM (at bin level) and in ERP (atstorage location level).

AFS: Available for Sale

ROD: Received on Dock

Warehouse

Production Supply Area

Storage Location

Storage Bin

Alternate Organizational Structure

Non-EWM storage location: The stock in the Production Supply Area(s) is notmanaged in EWM, but in ERP MM-IM at storage location level.

AFS: Available for Sale

ROD: Received on Dock

Warehouse

Production Supply Area

Storage Location

Storage Bin

Alternate Organizational Structure (cont.)

EWM storage location in another EWM Warehouse: The staging to the ProductionSupply Area is a two-step process: an outbound process from the sending EWMwarehouse and an inbound process to the receiving EWM warehouse

AFS: Available for Sale

ROD: Received on Dock

Warehouse

Production Supply Area

Storage Location

Storage Bin

Scenario: Pick Parts and Release Order Partswith Two EWM Storage Locations

StLoc: Storage Location

POR: Production Supply Delivery Request

SPC: Production Supply Delivery

PP Order: Production Order

CONFIRM_DEC: Confirm Decentrally

GI: Goods Issue

Scenario: Crate Parts with Two EWM StorageLocations

Scenario: Kanban Parts with MM-IM StorageLocation

AGENDA

1. Introduction and Overview

2. Graphical Warehouse Layout

3. Resource Management

4. Cross-Docking

5. Production Supply

6. Continuous Improvements

Continuous Improvement

There are continuous improvements in the following areas:

Warehouse Monitor

Extensions in the putaway strategy

Improvements in process-oriented storage control for internal processes

Handling Unit process improvements

Material flow system enhancements

© SAP 2007 / Page 43

Thank you!

© SAP 2007 / Page 44

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