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Empowering the Warehouse Worker:Handheld Equipment Increase Warehouse Performance

SBN, October 2015

Thomas Klyvø


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Content

• Get an overview of tools and techniques proven to improve warehouse productivity by empowering the warehouse

worker

• Attend this session for lessons to:

– Understand the potential of empowering your warehouse workers

– Learn how to extend SAP ERP warehouse management barcode transactions to equip warehouse staff with more

capabilities

– Empower warehouse workers to conduct ad hoc task handling by leveraging the radio frequency (RF) framework

in SAP EWM

– Establish an effective warehouse management performance framework that tracks critical KPIs


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What We’ll Cover

Why the need for Warehouse Empowerment?

Utilize SAP Standard in SAP ERP WM RF transactions

Extend SAP ERP RF transactions to gain more online capabilities

Leverage the RF framework in SAP EWM

Wrap-up


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Why the Need for Empowerment?

?• In todays economy, top managers are demanding lowered

operating costs and improved performance

• At the same time, the western world is experiencing increased

international competition from countries with low labor cost

• This leads to demands for cost effective operations

– Higher degree of process automation

– Better utilization of FTE resources

– Working smarter – Rather than harder

• Through RF empowerment, you allow your warehouse workers to

supply your warehouse operations with intelligence and execution

power


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Mobile Equipment Is the Key

Wifi Antenna

Barcode Scanner

Keyboard

Display

• Todays “mobile revolution” is not just for telephones

• Small handheld devices – Preferably with a barcode or RFID scanner – Put

great power of execution into the hand of the warehouse worker


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SAP Mobile

• The SAP ERP Warehouse Management

and SAP EWM solutions offer a wide

range of warehouse transactions which

can be executed by warehouse workersusing a mobile device

• Using these mobile transactions, you

perform warehouse movements by

scanning bin labels, pallet barcodes, and

material numbers


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“Static” WM Is Simply Too Inflexible

The transfer order (moving goods in the warehouse) is a static object when executed without RF equipment

Start Picking,

Create TO

Pick with TO as

pick list Pack Load Goods Issue

Deviations?

Go to terminal to

correct.


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The Advantages of Using Mobile Warehouse Equipment

• Paper-free warehouse – Fast and accessible

• Quick and error free data entry through scanning

• Make online process registrations and perform

deviation handling as the processes are actually taking

place

• Effective handling of unique Load Carriers (HU) and,

therefore, effective warehouse traceability

• Failsafe processes due to inline data-check

(a must-have within the pharma, food, and beverage

industries)


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What We’ll Cover




Leverage the radio frequency framework in SAP EWM

Wrap-up


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The Technical Enablers …

• ITS mobile – A Web-based solution for porting

SAP transactions to mobile devices

• Runs on any device capable of running a

Web browser with JavaScript support

• “Translates” normal SAP GUI to Web-based

graphical screens (HTML and JavaScript)

• With the ITS mobile solution, you are executingonline SAP transactions from the warehouse floor

– and need WIFI access whenever a transaction

is executed


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All Warehouse Movements Can Be Carried

Out with RF

• Put-away of P.O.

• Staging to Production

• Put-away from Production

• Replenishment of pick-bin

• Picking of Delivery


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Using the Mobile Menu, Performing Tasks

• Warehouse workers access customizable menus on RF

• Jobs (TOs) presented to user automatically or by manual selection

• TOs confirmed by scanning bin-number, pallet number, etc.


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RF Empowerment in SAP ECC

• Most standard RF transactions are TO confirmation

– Picking of outbound delivery

– Put away of purchased goods

– Performing replenishment (internal movement)

– Staging to production

• Standard RF also provides:

– Online entry of differences during confirmations

– Physical counting of existing inventory documents

– Pallet loading

– Lookup of material or pallet data

• RF empowerment in standard SAP is about::

– Allowing the warehouse worker to influence task execution

– Performing entire processes from the warehouse floor


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Empower Your Warehouse Workers by

Letting Them Influence the Work Execution from the RF Terminal

In standard SAP ECC WM, the worker can influence

the TO confirmation process by difference handling

• Register that not all products needed for picking

were available

– Have the SAP system automatically move thewrong stock quantity to a “Lost & Found” bin

• Register that you are simply picking more, or less,

than the Transfer Order asks for

– E.g., to actually move a full container, even though

less is needed


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Registering Differences in TO Execution

• When confirming a movement in the standard RF

transactions, clicking the “Diff” button will allow the

user to pick a different quantity

Note: Correcting larger stock level errors can take several iterations this way!

• The user enters a one letter difference indicator,

which controls one of two behaviors:

– The entered difference is adjusted from stock (to“lost & found”)

– Picked Quantity is simply changed (no stock

adjustment)

E Y W h W k b


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Empower Your Warehouse Workers by

Letting Them Perform Complete Processes from RF Terminals

Utilizing Inbound Deliveries is a sometimes overlooked functionality that

highly extends the functionality of inbound Logistics!

• Most warehouse movements start or end by an IM movement

• Besides the actual picking and put-away tasks, Goods Issue and

Goods Receipt posting is also possible with RF – With some limitations

– GR/GI is only available in connection with deliveries

– Goods issue to production, only if staging through outbound deliveries

– Goods receipt of purchase orders, only if using Inbound Deliveries

GI/GR WM GR/GI

C l t G d R i t f th W h


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Complete Goods Receipt from the Warehouse

Floor Using Inbound Deliveries

• Goods receipt of a purchase order directly is not covered by standard RF transactions

• Using inbound deliveries in the inbound process allows you to complete the entire GR process using RF equipment

GR

GRTo

To


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Performing Goods Receipt Using RF Equipment

Purchase Order Created


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Performing Goods Receipt Using RF Equipment (cont.)

Inbound Delivery created by ASN, by background job, or manually


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The Delivery Is Completely Processed on RF Terminal

The Warehouse Worker initiates the Goods receipt

process by creating TOs for the Inbound Delivery


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The Delivery Is Completely Processed on RF Terminal (cont.)

TOs are created and the Warehouse worker picks up the

goods, identified by pallet number or product label


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Registering Differences During Actual Put Away

Differences discovered during the put away are entered by

pressing “Diff” (Changing put-away quantity from 50 to 45 Ea)


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Goods Receipt Posted on the RF Device (After Put Away)

And the

received

quantity can

be automati-

cally updated

back into

the del.


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Advantages of RF with Inbound Deliveries

• All processes related to the Goods Receipt are carried out on the RF device

(no need to access an office terminal)

• Any differences discovered during put away are registered in real-time

• Actual GR posting does not take place until after put away

• GR done on the actually received quantities

Inbound deliveries can be created by electronically receiving an Advanced Shipping

Notification from the vendor with detailed information of the products that have been

shipped:

• Actual quantities sent

• Vendor batch number

• Packaging data (SSCC takeover, etc.)

Note: SSCC = Serial Shipping Container Code

Further Standard Empowerment – Allow Users to Perform Ad Hoc


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Further Standard Empowerment Allow Users to Perform Ad Hoc

Physical Counting

• “Dynamic Cycle Counting” is available in

SAP ERP 6.0, EHP 7

• Allows user to:

– Create and post counting results on the fly

– Flag bins with open TOs for counting (and

automatically have the bin blocked for

counting when the last TO is confirmed)

• Users can correct stock-count errors as soon

as they are discovered

• Users can utilize any spare time for

spreading out the physical Inventory effort


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A Great Use of RF Execution in Standard SAP ERP

• Utilize the RF availability during picking to spread out your Inventory count effort with “Zero Stock Check”

G GIGR

• During Picking, the system quantity goes to Zero. User

is prompted to perform a “Zero Stock Check.”

• User enters any remaining quantity (or confirms zero)and the bin is marked as counted in SAP

• Dramatically increased stock accuracy

• Lower year-end counting cost


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What We’ll Cover





Wrap-up


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Extend Standard SAP with Missing RF Transactions

• Why SAP standard is not enough for most

warehouses

– Ad hoc warehouse movements

– Blocking/unblocking of bin, products, or

pallet

– Maintenance of master data by RF

– GI to production/Cost Center/Project, etc.

– GR of purchase orders (without Inbound

delivery)

– ID and re-print pallet labels

– Adding additional process checks

• Missing transactions are programmed in

ABAP, added to the RF menu, and

translated into HTML

Don’t be afraid of

extending standard SAPwith your own RF

transactions

1. Inbound Proc. >

2. Outbound Proc. >

3. Ad Hoc Move >

4. Inquiries >

5. Master Data >

6. Int. Whs. Proc. >


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The movement is started by scanning the bin number,

material number, or pallet number (Storage Unit)

By making a data lookup, the quants that can be moved

are shown. User selects the product and bin from the list.

The available quantity is displayed. Movement of

more than is available is not possible. In the

background, the material is moved to a transit bin.

Example of a Developed Transaction – Ad Hoc Movement

The destination bin label is scanned

and the movement is completed

Other Examples of RF Transactions Created


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in Previous Projects

• Reprint pallet labels

– ID the pallet by scanning the bin and selecting from a list or by scanning the non-missing labels

• Change picking strategy, put-away strategy, or palletization data of a material from terminal – ID product by scanning product EAN label, SAP product number, or by scanning pallet or bin number

• Let the user overview picking queues (and number of open TOs)

– Select queue and TO to execute from list instead of “system guided”

• Post Goods Issue to production

– Scanning: Product number, Batch number, or the Storage Unit

• Various checks: Batch to delivery, Product to HU and more.


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What We’ll Cover





Wrap-up


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EWM – Built for RF Execution

• ERP WM – Built for one step (static) movements

• EWM – Built for multiple step (dynamic) movements

Transfer Orders

• One source.

• One Destination.

• One movement.

GGR

ERP WM

• Warehouse Tasks

Unload QI/DC Put-away

• Movement evolves as it goes along

GGR

EWM

QI

DC


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Comparing RF Functionality – EWM vs. ERP WM

Mobile Warehouse Functionality ERP EWM

Loading and Unloading + +

Deconsolidation - +

Pack and GR of inbound delivery + +

Confirmation Correction - +

Put away + +

Picking + +

Block storage bin - +

Pack and Goods Issue of outbound delivery + ++

Execution of planned Physical Inventory + +

Interleaving execution + ++

Stock, HU, and order query + ++

Ad Hoc packaging + ++

Ad Hoc movement - +

Ad Hoc Physical Inventory + -/+

Handling of differences in the picking process + ++

Other exception handling - ++

S


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Standard RF Framework in EWM

• RF framework looks similar to the ERP framework

– Conceptual addition of “Resources”

– Possibility added to perform flexible screen design – New standard functionality for data lookup during execution

• New standard Ad Hoc transactions added

– Move HU or material

• New concept for handling deviations introduced

– Confirmation correction

– Deviation handling through exception codes

EWM Ad H T ti


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EWM Ad Hoc Transaction

• Ad hoc movements

have been added tothe standard RF

portfolio in SAP EWM

• Move both HUs or

products

• In addition, tasks and

stock queries of HUs,

products, and bins

are available during

most RF movements

Get in Control of Process Deviations in EWM

ith E ti C d


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with Exception Codes

• With EWM, “Process Exceptions” enter the RF environment through 4 letter exception codes

• Exception Codes are configured in the system and are a way for the warehouse worker to register process

deviations

• Based on the exception codes, the system can perform a number of follow-up tasks

– Create/change the warehouse task(s)

– Change status for the bin or the Handling Unit

– Change the quantities of the referencing delivery document (e.g., reduce delivered quantity)

– Start additional processes through SAP Workflow (replenishment, mail notification, etc.)

– Notify warehouse supervisors by raising warehouse alerts

Exception Codes Are Entered During RF

E ti t R i t D i ti


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Execution to Register Deviations

Enter “LIST” in the Exception Code field to get a list of all relevant Exception

Codes for the current process step

A process deviation process is started by entering a 4 letter Exception Code

Entry of Exception Code

Example – Splitting Pick-Task to Multiple

Pallets


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Pallets

For a delivery, we need to pick 5 EA of product T-EWM300

Pick HU “Pallet” created As the quantity is to be confirmed, picker

realizes that pick HU will only hold 3 EA


Pallets (cont )


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Pallets (cont.)

If warehouse worker cannot remember the process code to use, he can get

them displayed in a selection list

Picker brings up list of exception codes

(LIST)

“Warehouse Task Split” is selected


Pallets (cont )


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Pallets (cont.)

The warehouse task is split into two

Split Quantity is entered … and confirmed


Pallets (cont )


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Pallets (cont.)

The remaining quantity has automatically been moved to another task that is

automatically processed

User wants to create a new pick HU, enters

Exception code CHHU

User enters packaging material “PALLET”

and has a new HU created


Pallets (cont )


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Pallets (cont.)

A new HU is created as part of the picking process and the task is confirmed

User confirms the remaining pick to the new

HU

All process deviations were carried out

without leaving the picking process

Confirmation Correction with RF


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Confirmation Correction with RF

With “Confirmation Correction,” you can even change processes that have already been confirmed from the

mobile equipment!

GR

Inbound Del11 PC

11 PC11 PC

10 PC 10 PC

10 PC

1. Inbound delivery of 11 PC is received and put-away task is initiated

2. From GR Zone, the pallet is taken into Storage

and placement is confirmed

3. After stock placement, it is discovered that pallet

only contains 10 pc

4. User enters Confirmation Correction, IDs the task,

and corrects the quantity to 10 pc

5. EWM executes the confirmation Correction back

to the Inbound Delivery and the Goods Received

quantity is corrected

What Is Achieved with Exception Codes and Confirmation Correction?


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What Is Achieved with Exception Codes and Confirmation Correction?

Warehouse workers are given the option to solve

everyday deviations and errors as they are

discovered

• No flow interruption

• Errors corrected as they occur(and while we still know what went wrong)

• Higher stock accuracy

• Small errors are solved by small effort

(not the other way around)

Other Advanced Utilization of RF Execution in EWM


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Other Advanced Utilization of RF Execution in EWM

• In SAP EWM, the continuous inventory method

“Zero stock check” has been replaced by a “Low

stock check” to ensure earlier error correction

• Additionally, a number of functionalities have been

added that are utilizing the RF execution framework

– Opportunistic RF Cross-Docking

– Pick/Put-away Interleaving

– Resource Execution Constraints

Utilize RF – Cross-Docking, Making Put-Away

Process More Effective


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The standard put-away and picking process

GR GI

Put-away process with opportunistic cross-docking

GR GI

Only possible through RF, as the picking source is updated dynamically

1. GR posted, stock enters

warehouse

3. A new picking task can pick

from the stock

2. Stock put-away, available for

picking

1. Picking task exists

3. Existing Pick Task deleted,

Put-away directly to shipping

2. GR posted of prod.

Utilize RF – Interleaving Pick and Put Away


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g y

Reduce deadheading by defining a “Queue Execution Sequence” for Task Interleaving

GR

GI

Through system-guided execution,warehouse workers are assigned to

work tasks from changing queues

Utilize RF – Resource Execution Constraints


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Avoid waiting time by limiting the resource access to warehouse zones

• By knowing the position of each

RF device, SAP EWM can be

set up to avoid overloading

areas in the warehouse

• Utilizing the “real-time”environment of online RF

Alternatives to Normal RF Execution Are

“Hands Free”


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Hands free picking. Tasks

communicated through

headphones. Voice used for

confirmation.

Voice

picking

Hands free picking. Visual

indication of picking location and

quantity. Confirmation by

physical touch.

Pick by

light

What the Future Might Have in Store


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• Google Glass (and similar devices) is on its way to the warehouse

• Provides a heads up display in glasses – A wearable data screen

• SAP & Vuzix bring you augmented reality solutions

Source: http://en.sap.info/sap-goes-wearable/94444 June 2013

What the Future Might Have in Store (cont.)

http://en.sap.info/sap-goes-wearable/94444http://en.sap.info/sap-goes-wearable/94444http://en.sap.info/sap-goes-wearable/94444http://en.sap.info/sap-goes-wearable/94444http://en.sap.info/sap-goes-wearable/94444http://en.sap.info/sap-goes-wearable/94444


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What the Future Might Have in Store (cont.)


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What We’ll Cover


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Wrap-up

What We’ll Cover


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Wrap-up

Where to Find More Information


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• http://help.sap.com/SCENARIOS_BUS2012/helpdata/EN/71/5f4296318f4493a815eebce7c0e7a6/frameset.htm

– Description and examples of Exception Handling

• http://en.sap.info/sap-goes-wearable/9444

– Video of Augmented Reality Solutions for the Enterprise by SAP & Vuzix

• www.supplychain247.com

– Survey on U.S. Warehouse Operations, October 2013

• http://help.sap.com/saphelp_scm70/helpdata/EN/f8/09302b46504a15980f2f5d713b3fd8/content.htm

– Information about SAP NetWeaver BI in SAP EWM

Your Turn!

http://help.sap.com/SCENARIOS_BUS2012/helpdata/EN/71/5f4296318f4493a815eebce7c0e7a6/frameset.htmhttp://en.sap.info/sap-goes-wearable/9444http://www.supplychain247.com/http://help.sap.com/saphelp_scm70/helpdata/EN/f8/09302b46504a15980f2f5d713b3fd8/content.htmhttp://help.sap.com/saphelp_scm70/helpdata/EN/f8/09302b46504a15980f2f5d713b3fd8/content.htmhttp://www.supplychain247.com/http://en.sap.info/sap-goes-wearable/9444http://en.sap.info/sap-goes-wearable/9444http://en.sap.info/sap-goes-wearable/9444http://en.sap.info/sap-goes-wearable/9444http://en.sap.info/sap-goes-wearable/9444http://help.sap.com/SCENARIOS_BUS2012/helpdata/EN/71/5f4296318f4493a815eebce7c0e7a6/frameset.htm


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How to contact me:

Thomas Klyvø

[email protected]

Disclaimer


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SAP, R/3, mySAP, mySAP.com, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP products and services

mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany

and in several other countries all over the world. All other product and service names mentioned are the trademarks of

their respective companies. Wellesley Information Services is neither owned nor controlled by SAP.

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