03 sunil warehouse functions

Managing Complex Warehouse

Sunil Srinivasan, Solution Engineering6thJune 2008

© SAP Summit 08 /

1. Challenges2. Extended Warehouse Management3. Inbound & Outbound Process4. New Enhancements5. Conclusions

Agenda

© SAP 2007 /

Challenges in the Warehouse

Why the warehousehas to change

Flexible process modelingNew services (kitting, VAS, QM, etc.)Integration with overall logistics(cross docking, hubs, contractpackagers, logistics providers, etc.)

Greater specialist demands onwarehouse logistics

Paperless handlingPick by voicePick by lightNew technologies such as RFID

New technologies

High resource utilizationHigh transparency to operationalcontrol (resource planning tool,KPIs, etc.)Efficient processes (flexibleprocesses, bundling)

Efficiency

System integration and harmonizationfrom TCO perspective (standardsoftware)One solution for multiple requirements(central warehouse, regionalwarehouse, product diversity, etc.)

Cost pressure

EWM Big picture – Overview of Extended WarehouseManagement Functions

Ad-hoc Movements

Inventory Buckets

Transfer Ordercreation

Customer Returns

Inventory Counting

Location Management

Scrap Management

Slotting

ASN Management

WM Monitor

Packing

Inbound Processing Warehouse Internal Processing Outbound Processing

Picking Locationdetermination

Picking

Put away

Replenishment

Route Determination

Shipping

Transportation

Unloading & GR

Wave Management

Stock Visibility on the Resource, Hazardous Management

Resource Management

Yard Management

Cross-docking

Kitting

Yard ManagementQM

EWM – Warehouse Modelling

Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3

GR Area Quality ControlRepack/Deconsolidation

Storage BinsExplicit aisle, column and level for

easy path definition


Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3


Staging AreasModelled as Storage BinsSource for loading / destination for

unloading


Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3


Work StationsModelled as Storage BinsOperational Tasks w/o Material

movement


Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3


Work StationsModelled as Storage BinsUsed for Splitting or Consolidation

of Materials


Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3


ResourcesExecution of Warehouse OrdersStock Transparency during

Execution of Movements

EWM – Inbound Process

Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3

1 GR Area

2

Quality Control3

5

8

6

Repack/Deconsolidation

4

7

Process and Layout oriented RoutingFlexible Process Modelling, e.g.

Unloading, Counting, Repacking, Sorting,Putaway

Stock Transparency for each ProcessStep


Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3

1 GR Area

2

Quality Control3

5

8

6


4

7

DeconsolidationSorting of mixed Handling Units for

efficient Putaway ProcessDynamic Determination of

Deconsolidation Process


Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3

1 GR Area

2

Quality Control3

5

8

6


4

7

Inverse PickingOptimal Path Putaway Process


Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3

1 GR Area

2

Quality Control3

5

8

6


4

7

Quality Control and ReturnsCheck for incoming Goods andReturnsDetermination of Samples (Integration

with ERP and CRM)Decision Taking with follow-up actions


Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3

1 GR Area

2

Quality Control3

5

8

6


4

7SlottingDemand Criteria for Determination of

optimal Storage areaQuick Access for Fast Moving Items

Physic Criteria like Material Data andPack Data for Determination of optimalBin size

Warehouse Space OptimizationCombination with Rearrangement

EWM – Outbound Process

Small Parts Storage

Pallet Storage

Packing Work Station

Door 2

Door 1

Door 3

PHU1

PHU2

PHU1

PHU2

GI Area &Packing 2

Picking WavesControl through Wave Templates

(Determination of Time Frame, CapacityLimits, Control Parameters)

Automatic/Manual Assignment ofDelivery Items

Automatic/Manual Wave Release


Small Parts Storage

Pallet Storage


Door 2

Door 1

Door 3

PHU1

PHU2

PHU1

PHU2

GI Area &Packing 2

Pick OrderRule based Creation of Pick Orders

(e.g. Picking Area, Size, Priority)Determination of Picking Strategy:

Pick&Pack versus PickOptimal Path for PickerCase Calculation and Determination of

Packing workstationPrinting Pick Papers, Label Printingalso on mobile Printers


Small Parts Storage

Pallet Storage


Door 2

Door 1

Door 3

PHU1

PHU2

PHU1

PHU2

GI Area &Packing 2

Process and Layout oriented RoutingFlexible Processmodelling, e.g. Picking,

Packing, Kitting, VAS, Staging, LoadingStock Transparency for each Process

Step


Small Parts Storage

Pallet Storage


Door 2

Door 1

Door 3

PHU1

PHU2

PHU1

PHU2

GI Area &Packing 2

KittingKit-to-Order Process SupportStrong Integration in CRM und

SPP


Small Parts Storage

Pallet Storage


Door 2

Door 1

Door 3

PHU1

PHU2

PHU1

PHU2

GI Area &Packing 2

Value Added Services (VAS)Planing and Execution of Value

Added Services like specificPackaging, Labelling etc. for certainBusiness Partners

Combination with Kitting possible

Internal Routing

Following are the possible steps to support theoutbound process

PICKVALUE ADDED SERVICESQUALITY INSPECTIONPACKSTAGELOAD

Overview – Outbound Process

WO 1

WHR1WHR1WHR1WHR1Task

WO 2


WO n


PICK

VAS

LOAD

PICK

PACK

STAGE

LOAD PICK

Outbound Process with Internal Routing

Activity Area = TD01

Activity Area = 0020

Pick-HUHU# 462911

Pick-HUHU# 462910

Packing Work centerTD10

Ship Staging area9020

Pack -HUHU# 462912

DoorTUVehicle

Pack -HUHU# 462912

Rearrangement optimizes warehouse managementand reduces operational costs

Pick Orderbefore Optimization

RearrangementExecution

‚Golden Zone‘for Fast Movers

and...Improved Service Level !

Business Case

60.000 line items a day ~ 450 hours timesaving per day

> 1.000.000$savings per year!

© SAP 2007 /

Labor Management

For an effective management of the labor supply chain, it is necessary to:Get the right person to the right place at the right timeTrack people throughout the day and measure performance on individual tasksMeasure the quality and safety of each individualProvide alerts when performance falls below expectationsCalculate costs and incentives for employeesSimulate impacts to labor as a result of changes to the process flow or inventoryMake visible the cost and efficiency of individual employees, facilities, teams andthe enterprise

Labor management modules are used to better manage thetime and productivity of warehouse workers. They consistsof the ability to plan, measure, view and simulate laboractivities.

© SAP 2007 /

Kit to stock Process

Picking ofcomponents

Kitting bin

Post components GI

Post kits GR

Packing

Putawayof kits

Outbound

Inbound

© SAP 2007 /

Warehouse Cockpit

Intended for Supervisor and WarehouseManagerMonitors team performanceMonitors the performance of areas or thewhole warehouseAt-a-glance view of several key figuresenables you to react to critical situationsquickly

SpaceCost/Utilization

Smaller inventory investment:Slotting, Bin Determination and RearrangementWave Management and wave release controlOptimal work algorithms in warehouse ordercreation

10% - 20%10% - 20%5% - 15%

Warehousing – Benefits

Tangible Benefits % of Impact

Dealer/Customer

Satisfaction

Increased Dealer/Customer Satisfaction to:More efficient work distribution to workers with WOBetter visibility, work, and alert MonitoringTiming and Flexibility of release of work to floor

10% - 20%25% - 50%20% - 35%

On-Time

Delivery

Slotting, Bin Determination, Replen & RearrangeWork in Process and Alert MonitorWave ManagementWarehouse Order Creation (Bundling)

5%-15%10% - 30%15% - 25%10% - 25%

Increase in On-time delivery contributed to:

Source: SAP Customer

ProductivityProducts in the optimal Bins and RearrangementWarehouse Monitor for visibility and trackingOptimizing Warehouse Orders to workers

10% - 30%10% - 50%10% - 70%

Increased Productivity Contributed to:

© SAP Summit 08 /

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Functional Enhancements in EWM 2007

Labour Management

Easy Graphic Framework

RFID enablement

Kitting enhancements (Kit-to-stock)

Batch Enhancements

Material Flow Systems

Goods Receipt from Production

Delivery Creation in EWM

ESA Enabling

GI direct sales and account assignment inEWM

Serial Number Enhancements

03 sunil warehouse functions

Documents

extended warehouse management3

execution of warehouse

inbound outbound process4

high transparency

flexible process modelling

flexible process modeling

high resource utilization

new enhancements5