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SAP Extended Warehouse Management Operational Excellence in Warehousing Public

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SAP Extended Warehouse Management Operational Excellence in Warehousing

Public

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

Growing the business while satisfying customer demand is getting tougher

Shorter cycle times

Expectations

Compliance

Complexity

Costs Velocity E

ffici

ency

Inventory

Value added services Supply chain

Workforce

Aut

omat

ion

Qua

lity

Customers Visibility

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 3 Public

What does “better” mean to you?

Customer service

Warehouse transparency

Reduced labor costs

Inventory costs

Process automation

Compliance

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 4 Public

SAP Extended Warehouse Management (SAP EWM) Mission and strategy

The world’s best warehouse management solution The thought leader in supply chain execution

Mission

Warehouse mangement leadership

Presenter
Presentation Notes
Best-in-Class Solution Best in class functionality Complete, comprehensive solution Integrated & Connected Processes Intra & inter-enterprise solution End-to-end process integration Out-of-the-box connectivity Verticalized Offering Industry-specific functionality Multi industry offering

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 5 Public

History (1994–2014) A long history of warehouse management business, process, and IT expertise

1994 2007 2014

SAP R/3: warehouse management functionality (SAP R/3 2.0–4.7)

SAP Supply Chain Management (SAP SCM) SAP EWM application

….

Best-in-class warehouse management

(SAP EWM 7.0–7.02)

Advanced warehouse management

(SAP EWM 5.0– 5.1)

Distribution center logistics

Goods storage Logistics execution

…. (SAP EWM 9.1)

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 6 Public

SAP Extended Warehouse Management Best-in-class warehouse management solution

World-class analytics

High degree of flexibility and adaptability

Built-in optimization High-perfomance execution

Leading-edge warehouse technology integration

Comprehensive integration with SAP Business Suite

applications

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 7 Public

Overview of SAP Extended Warehouse Management A complete and integrated solution

Transportation unit processing Goods receipt mgmt.

and optimization Inbound quality

management Yard management

Outbound planning (route, wave, bin, cartonization, and so on) Picking optimization,

packing, staging, and load management Value-added services

Physical inventory Replenishment and

rearrangement Kit-to-stock management

Labor management Cross-docking

Compliance Native technologies Implementation tools

Analytics

Inbound processing

Storage and operations

Outbound processing

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 8 Public

Overview SAP EWM Customer & Market Status Strong customer growth and implementation momentum

Facts and figures Sample customers

Live customers and live sites Customer geographical coverage

Coca-Cola Enterprises

0

100

200

300

400

500

600

Dez 07 Dez 08 Dez 09 Dez 10 Dez 11 Dez 12 Dez 13

Warehouses

Customers

600 Customers

15 Industries

24 Countries

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 9 Public

Cross-warehouse performance monitoring

Alert and exception monitoring

Drill-down and direct-action triggering

Comprehensive, central warehouse operation monitor

World-class analytics with SAP EWM Comprehensive stock and process transparency

Supply chain manager Warehouse supervisor

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 10 Public

Built-in optimization Wave management, labor management, and slotting

Wave management Optimized work orders; efficient pick path

Labor management Reduced labor costs; improved labor planning

Cartonization Automatic shipping-unit determination

Slotting Advanced storage concept; ABC goods classification

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 11 Public

Leading-edge warehouse technology integration Increased accuracy, efficiency, and visibility

Material flow system (MFS) • Programmable logical controllers

(PLC)

• Pallet and case conveyors

Native technology integration • Mobile radio frequency (RF)

• Pick by voice

• RFID

Presenter
Presentation Notes
Warehouse Automation EWM provides via its functionality Material Flow System (MFS) a direct integration to the control unit of an automated warehouse. Resulting benefits are One Software One Monitoring One Technology Stack Lower TCO / TCI As the direct integration of EWM to the control units of automatic warehouses is one of the key differentiator for EWM we propose to support the message by a video of a customer using MFS

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 12 Public

Native integration with SAP Business Suite Comprehensive, smooth, and real-time process integration

• Order processing • Customer relationship management (CRM) • Back-order processing (global available to promise) • Advanced claims and returns management • Track and trace

• Comprehensive production supply support (process orders and crate parts)

• Dangerous goods handling • Storage and document printing

• Compliance with import and export regulations • Customs; bonded warehouse

• Advance shipping notification (ASN) • Inbound quality management

Sales and distribution

Procurement

SAP Manufacturing

SAP Environment, Health, and Safety Management

SAP Global Trade Services

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 13 Public

Verticalized offering Examples of support for in-depth industry-specific processes in SAP EWM

Automotive

Production supply Kit to stock Kit to order

Retail

Merchandise distrib-tribution cross-docking

High-volume throughput

Best-before handling

Chemicals

Batch management Dangerous goods

Consumer products

Catch weight Batch management Best-before handling

Service parts

Slotting Kit to stock Kit to order

High tech

Serial numbers Production supply

Life sciences

Batch management Best-before

handling

Transportation and logistics

Transportation cross-docking

Dangerous goods Transport integration

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 14 Public

High flexibility and adaptability Tailor SAP EWM to your specific needs

Personalization

Role-based menus User-specific reports Role-based user interfaces Multilingual support

Configuration

Warehouse layout Industry-specific warehouse

processes Strategies (picking, putaway,

and so on)

Customer-specific extension

Open code for reuse Documented interfaces Modification-free extensions Upgrade security or

upgrade-secure interfaces

Service-oriented architecture

Development of composite applications

Integration to legacy systems and third-party software

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 15 Public

Solution architecture for SAP EWM Deployment options

SAP ERP

SAP EWM

SCM Server

SAP ERP

SAP EWM on SCM Server

SAP EWM

SAP ERP

SAP EWM add-on

SAP note 1606493 - SAP EWM Deployment Options Best Practices

SAP ERP

SAP EWM standalone

SAP ERP

SAP EWM standalone

Recommended option

Presenter
Presentation Notes
See SAP note 1606493: https://service.sap.com/sap/support/notes/1606493

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 16 Public

Customer benefits of SAP EWM

Increased warehouse productivity

Greater transparency

Better service levels

Increased accuracy

Reduced costs

Flexibility and scalability

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 17 Public

The best are leading the way with SAP EWM

Near zero customer-complaint rate

Increased speed and significantly reduced picking times

34% ongoing labor cost reduction

20 warehouses live using the same template

© 2014 SAP AG. All rights reserved. 18

If there is NO appropriate image in the SAP library, and the image is $50 or less, purchase the image after internal approval. MAXIMUM of three metrics. MAXIMUM of 4 bullets of what the customer accomplished.

Chinese joint venture between First Automobile Works (FAW) and Volkswagen Group

With SAP software, FAW-Volkswagen (China) reports a 20% increase in warehouse efficiency and resulting cost savings.

.

SAP EWM and integrated RF technology achieved real-time visibility of warehouses.

Wave management greatly increased picking efficiency.

Precise bin management greatly increased accuracy.

70% increase in real-time visibility of daily workload and the pick, pack, and load status of an order

34% ongoing labor cost reduction

13% ongoing packaging material expense reduction

Presenter
Presentation Notes
Number Talks, SAP EWM increased warehouse efficiency by 20% + +∞ Barcode based SPM, a new stage of Warehouse Management +∞ EWM and integrated Radio Frequency Technology achieve real time visibility of warehouse business, clear control in both Beijing warehouse and remotely from Changchun office +10% Scheduled automatic replenishment increased on time delivery rate +40% Wave Mgmt greatly increases picking efficiency +70% Real time visibility of daily workload and order pick/pack/load status, Full visibility available now +10% Max bin volume and qty mgmt,Optimize storage utilization rate, reduces unnecessary work +20% Precise bin mgmt, greatly Increases accuracy +10% Storage rearrangement and replenishment at any time needed on RF devices, Increases flexibility. +10% Dynamic bin mgmt, free up empty bins promptly. +5% Bulk storage area utilization rate increases. -20% parts are not in EWM yet, needs transfer from legacy system upon goods receiving. (ECC Ehp3 upgrade required -30-50% Barcode scanning is required in many operation steps, accurate but not as fast as before From June to August 2011, saves labor cost by 33.887% per months, 69216 RMB ! From May to August 2011, saves pack. Mat. Cost by 12.63%, 133740 RMB!

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 19 Public

Analyst quotes

So, is SAP EWM a rival to best of breeds? Yes they are. SAP EWM: A Rival to Best of Breed Solutions? Steve Banker, ARC Brief, October 14, 2010, p. 5

“ SAP has global go-to-market and deployment capabilities, in addition to its experience.

Magic Quadrant for Warehouse Management Systems Dwight Klappich, Gartner, February 27, 2012, p. 21

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 20 Public

Analyst quotes

The vendor has a compelling vision for SCE convergence… It reaches beyond transportation to include process integration, with areas such as manufacturing, order management, global trade and EH&S. Magic Quadrant for Warehouse Management Systems Dwight Klappich, Gartner, February 27, 2012, p. 21

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 21 Public

Total cost of implementation: strategy for SAP EWM

Migration tools • Accelerated migration of data from WM

in SAP ERP to SAP EWM • Master data migration • Migration guide

Rapid-deployment solutions • Complete solution that is

ready to run • Fixed scope, fixed cost, and 100%

transparency

SAP EWM

SAP ERP

Master data, inventory,…

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 22 Public

Services and ecosystem around SAP EWM Strong service offering and ecosystem

Education

Classroom training

E-learning Certification

program

Ecosystem

SAP Community Network

User group for SAP EWM

Social networks for SAP EWM

SAP consulting practice

24x7 global support Quality assurance

services and SAP Safeguarding

Rapid-deployment solutions

Custom development

Partners

Global partners Expert logistics

partners Local partners Complementary

software products

Service and support

Presenter
Presentation Notes
Service & Support Reference visit / live call EWM Workshop / Demo EWM Business Assessment EWM Prototype / Proof of Concept EWM/ Sandbox on Demand EWM Deep Dive Workshop QA Services (Safeguarding, MaxAttention, etc.) EWM Prototype, Proof of concept Partner Ecosystem Bring examples of your local partners, Global Partner (IBM, Accenture, ...) Partners global, regional, special expertise complementary partner products (3D Graphics, Load Planning, Warehouse Layout Design, …) Education EWM Classroom Training Certification Ecosystem ASUG SAP Community Network: BPX, SDN, EWM Wiki, SCE Community, EWM Forum EWM Social Networks: LinkedIn

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 23 Public

Wrap-up

Best-in-class, integrated warehouse management solution

Comprehensive, deep warehouse management expertise

Strong and growing customer base

Strategic investment area for SAP

Integral part of platform road map for supply chain execution

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 24 Public

More Information on SAP EWM…

Landing page for SAP EWM www.sap.com/ewm

SAP EWM on SAP Community Network (SCN - External) http://scn.sap.com/community/extended-warehouse-management

Application Help for SAP EWM http://help.sap.com/ewm91

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

Contact information: F name MI. L name Title Address Phone number

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 26 Public

Differentiators and value of SAP EWM Comparison of SAP EWM with WM functions of SAP ERP

SAP’s strategic warehouse management solution

Strong investment and supply chain execution roadmap

Enhanced process flexibility

Full warehouse visibility

Latest technology support

Labor management

Better performance

Manage stock at storage location

Bin management

Placement strategies

Removal strategies

Pick logic – wave management

Replenishment

Standard mobile RF technology

Handling / storage unit management

Yard management

Enhanced configurable RF technology

Task and resource management

Material flow system

Value added services

Cross-docking

Dynamic cycle counting

Unloading of transport units

Deconsolidation

Slotting / rearrangement

Labor management

Multi client warehousing

Flexible process modelling

Functional area WM SAP EWM

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 27 Public

Countries with active EWM deployments Feb 14, 2014

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 28 Public

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG (or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP AG or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP AG or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP AG or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP AG’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP AG or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.