ewm applying extended warehouse management to the wholesale distribution industry

7/25/2019 EWM Applying Extended Warehouse Management to the Wholesale Distribution Industry

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SCM EWM: Applying Extended

Warehouse Management to theWholesale Distribution Industry

Gavin Klaus, LogiStar Solutions LLC



[ Agenda

Introduction EWM Update

EWM for Wholesale

Applying Best Practices with your organization



[ LogiStar Services

3

Expertise

• SAP Supply ChainExecution is our solefocus

• Average experience10+ years with SAP

Certifications

• SAP ServicesPartner

• SAP SpecialExpertise Partner

• Pre-Release Test

Partner• SAP EEP Reseller

• Certified EWM RDSPartner

Solution Focus

• SAP SCM EWM

• SAP LES WM

IndustryExpertise

• Medical Devices

• Pharmaceuticals

• Food & Beverage

• Service Parts

• WholesaleDistribution

• Automotive

• Retail



[

SAPWAREHOUSE MANAGEMENT

SAP Supply Chain Execution Solutions

RF & Barcoding

Voice Picking

Small Parcel Shipping

Transportation

Management

SAP SCE Strategy

SAP Logistics Solution

Architecture

Labor Management

Warehouse and Labor

Analytics



[ Key Learnings

The Wholesale Distribution industry has some of the mostadvance distribution operations and processes. Learn

how SAP EWM facilitates best practices in the Wholesale

Industry

Learn how many of these best practices are cross-

industry and the key features that can lead to key

performance gains within your operation.



[ SCM EWM Update

SCM EWM offers significant functionality above andbeyond ERP WM offering functional parity with Best of

Breed WMS solutions including:

Labor Management

Slotting

Material Flow Systems

RF Wizard

Quality Inspection Engine

Resource Management

Cross-Docking

Value Added Services and Kitting

Yard Management



[ SCM EWM Update

The SAP EWM solution was introduced to compete withbest of breed solutions. Now on its fourth release, EWM is

gaining traction in the market, offers the features and

functions you would expect in a robust solution, and offers

distinctive value propositions not offered by other leading

suppliers.

So is SAP EWM a rival to best of breeds? Yes they are.

Source: ARC Advisory Group, “ SAP EWM: A Rival to

Best of Breed Solutions? “, October 2010



[ SCM EWM Update

EWM has been implemented globally in a wide variety ofindustries:

Third Party Logistics

Wholesale Distribution

Food and Beverage

Automotive

Retail

Life Sciences

Industrial Manufacturing

Aerospace

8



[ Wholesale Distribution Requirements

Multiple vendors Multiple customers

High number of SKU’s

High service level

Small orders Parcel shipping

Low eaches per line

Short order cycle time and late cut offs

Multiple Transportation methods, will call, customer pay,company pay, parcel, LTL, Courier, Milk run, own fleet

Value added services

Order flexibility9



[ Wholesale Distribution Industries

Retail/CPG (Food, Beverage/Spirits, Sundries) Hi Tech (Consumer and B2B)

Pharmaceutical/Medical Supply

Automotive

Building and Industrial Supply

10



[ Batch Picking

In batch picking, groups of orders are picked at the sametime to minimize repeat visits to the same product bin

location. The WMS can arrange a group of orders in the

most efficient picking sequence.

Relevant for operations with:

Multiple each or overpack items to a shipping case or tote

Multiple cases or large eaches to a pallet

Industry relevance – All



[ Batch Picking

Warehouse Task (WT)

Task creation functionality is embedded in SAP EWM

In addition to picking execution, WT is used for actual or logical

goods movement such as packing, staging and loading

The warehouse task contains the following information;

The product to be moved Quantity

Source and Destination location information

A WT can be a Product WT (material, quantity) or HU WT

(containing HU).

12



[ Batch Picking

Warehouse Order (WO)

SAP TRM functionality is inherited in SAP EWM that allows

Logical grouping of WTs into warehouse order for efficient

processing – a work package

It is at the warehouse order level that resources are assigned to

execute the work.

13



[ Deconsolidation

Deconsolidation is the process of dividing a mixed receipt

into putaway zones or groups based on your facility

layout. (aka fanning, zoning)

Typically leveraged for operations with high volumes of

parcel receipts, mixed containers, and mixed pallets

Reduces travel time by grouping putaway tasks

SCM EWM provides a system directed solution to allow

for confirmation of each process via RF or GUI

Industry relevance – Retail, CPG, AMP, Manufacturing



[ Deconsolidation

Deconsolidation

Deconsolidation provides ability to regroup contents of an

HU and putaway separately

EWM utilizes consolidation groups to determine if

products can be putaway together

Deconsolidation is relevant if:

The Activity Areas of the products within an HU are different

The Activity Areas of the products within and HU are the

same but the consolidation groups are different

The AA and consolidation groups are the same but the

maximum number of warehouse tasks for the HU has been

exceeded

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[ Deconsolidation

All tasks are managedwithin EWM and can

be executed on GUI or

RF

In addition toDeconsolidation,

Process Oriented

Storage Control allows

for system directed

work, supporting

multiple processes

16

Source: SAP Extended Warehouse Management: Processes, Functionality, and Configuration by SAP Press



[ Wave Planning

The process of grouping multiple orders to be picked at one

time

In a WMS, you can create order waves to see how much labor

you'll need to allocate and how much time it will take to

complete each wave. As the wave works its way through the

DC, you'll be better able to allocate how many downstreamoperators you'll need once the picking process is completed.

Key objectives

Grouping of orders to control the flow of work to the warehouse

floor

Ability to control the volume or work effort to create manageable

units of work

Allow for a well orchestrated replenishment process

Industry Relevance – All, Retail, CPG, AMP



[ Wave Management

18

Wave Management

Outbound Delivery Order (ODO) items can be independently

assigned to wave

ERP WM requires entire delivery to be assigned to a wave

Items grouped based on a common attribute

Picking Area,

Method of Picking Product Attributes

From SAP Extended Warehouse Management:

Processes, Functionality, and Configuration by SAP

Press



[ Wave Management

19

Wave Template

Wave Templates are used to manage the automatic assignment of

warehouse request items to waves

Waves can be managed through the Wave Monitor

Manual Release

Assignment or un-assignment of request items

Block/Unblock Split/Merge/Delete



[ Labor Management

Labor Management Basics

Better scheduling and planning Reduction of hours (OT, VTO, staffing levels, temp)

The Management Team can leverage the tool to drive hours out of thefacility

Increased utilization of the workforce

Employees respond to the Management Team’s expectations Management is given visibility into the distribution operation at the

task level

Employees are measured against the SOP

Associate pace and skill improvement (setting the rightexpectation)

Improved processes (reduced steps)

Shortened learning curve for new associates

Industry Relevance – Any operation can leverage an LMS withreasonable expectancies. Due to the effort to develop ELS, typicallya 25 person operation will justify



[ Labor Management

Labor Management program savings are significant

Quality of Supervision

--30%30%--40%40%--60%60%

Norms (no LaborNorms (no Labor MngMng..

System)System)

GoodAveragePoor Level of Measurement

+25%+25%+10%+10%--10%10%LMS w/ ELS and IncentivesLMS w/ ELS and Incentives

+5%+5%--5%5%--15%15%LMS w/ Engineered StandardsLMS w/ Engineered Standards

--10%10%--20%20%--30%30%LMS w/ ReasonableLMS w/ Reasonable

ExpectanciesExpectancies

--20%20%--30%30%--40%40%LMS w/ Historical RatesLMS w/ Historical Rates

Quality of Supervision

--30%30%--40%40%--60%60%

Norms (no LaborNorms (no Labor MngMng..

System)System)

GoodAveragePoor Level of Measurement

+25%+25%+10%+10%--10%10%LMS w/ ELS and IncentivesLMS w/ ELS and Incentives

+5%+5%--5%5%--15%15%LMS w/ Engineered StandardsLMS w/ Engineered Standards

--10%10%--20%20%--30%30%LMS w/ ReasonableLMS w/ Reasonable

ExpectanciesExpectancies

--20%20%--30%30%--40%40%LMS w/ Historical RatesLMS w/ Historical Rates



[ Stock Specific Unit of Measure

Ability to manage multiple Stocking

UoM for the same SKU (a 6 packand an 8 pack)

Inbound Process

Apply alternative UoM from ERP

delivery

Propose preferred UoM

Change of UoM at different steps

Putaway strategy via UoM/quantity

classifier

Internal Process

Physical Inventory

Monitoring

Outbound Process

Small/Large quantity picking (w/o

packaging specification)

Send UoM information to ERP

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Pallet



[

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Key Learnings

SCM EWM is a robust WMS solution offering full

capabilities known to be in a state of the art WMS

SCM EWM is credited for being able to accommodate

some of the most complex requirements of a wholesale

distribution operation and many of these can be applied

across many industries



THANK YOU FOR PARTICIPATING.

SESSION CODE: 0207

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ewm applying extended warehouse management to the wholesale distribution industry

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