Professional Documents
Culture Documents
Physical inventory
Carry out physical inventory at the material level Perform inventory adjustments
Real-time updates
When transactions are entered, the results the stock updates real time to reflect actual changes
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> Inability to assign incoming materials to outbound demand to avoid multiple material handling
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Extension set 2.0 for Enterprise to include Cross Docking, Yard Management, Value Added Services
IM Level WM Level
Typical assignment is one storage location to one warehouse It is possible to have multiple storage locations managed by a single warehouse
Key WM Features
> Management of materials
Provides bin-level tracking Inventory management functions Various placement and removal strategies
> Cross-docking
Management of inbound and outbound movements Appointment scheduling, check in and check out, assignment of dock doors, loading/unloading activities
> SD-WM
Two-step picking with SD-WM integration Wave picking opportunities Processing individual deliveries
> PP-WM
Production support with PP-WM integration Supplying materials to the shop floor Internal and external automated replenishment options
Hand-held terminals-WM
Processing of transfer requirements Processing of transfer orders Bin and material inquiries
Benefits of WM
> Benefits
Better control of inventory
More accurate inventory Able to maintain lower inventory levels
Benefits of WM (cont.)
> Measurable benefits
16-25% Picking Productivity Improvement 11-25% Reduction in Customer Returns 10-25% Savings in Material Handling Labor 10-40% Space Utilization Improvement 13-30% Reduction in Scrap 8-15% Reduction in Carrying Costs
> IM menu
Goods movements Material documents Reservations Environment
Focused on reporting, lists and LIS
Complex processes
Automated systems, wide spread site
Evaluating IM vs. WM
> 1 Define business processes > 2 Evaluate ROI of a WMS solution > 3 Consider RF functionality > 4 Training resources and schedule > 5 Focus on optimization opportunities
> Reduces order fill process cycle time > RF projects often have a 1 year or less payback period
Source: Intermec
Compare current receipt process to the time saved when the task is aided by automatic data collection (ADC)
5 - Optimization Opportunities
> Picking operations and inventory accuracy
What are your baseline requirements What is the volume of activity Evaluate picking paths and demand Look at your accuracy numbers over a period of time
Perhaps monthly, quarterly, annually
> Material handling labor costs > Space utilization improvements > Packing tasks
Can you benefit from packing while picking
Limited trace-ability
Only visibility is when the system posting took place No visibility to the follow on physical activities
> Evolved from SD pick list > Put-away and pick from 1 or more fixed bins > Bin is hard assigned on material master > TOs are created for picks and put away, and pick list is created from TOs
Additional inventory methods (annual, zero stock) The module is FREE with the purchase of SAP
Configuration requirements
Designing the warehouse layout and set up
> Communication is through BAPIs for transactions and IDOCs for master data > Goods movements done through delivery notes to the stand-alone SAP WM system
Can add additional warehouses without impact to the core system Can communicate to multiple core ERP systems
IDOC failures
Human intervention is required to work the error queue
IDOC overhead
IDOCs do not offer all of the available field options that a user may or may not use with the PC transaction Must modify the IDOC
SAPConsole has to be set up in the decentralized system and in the core system
Decentralized WM
Transaction Volume
WM IM Only Lean WM
Operational Complexity
Resources
> How to Select a WMS
By Christopher Trunk, TotalSupplyChain.com,
> Gartner Report TU-09-0762 > Supply Chain Forum White Paper
By John Hill, ESYNC, Logistics Execution System Perspective
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> Decentralized WM offers functionality that will work with SAP and other ERP solutions > Implement RF to increase accuracy, speed, real time inventory and status updates with any solution