Inventory and Warehouse Processes - PowerPoint PPT Presentation

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Inventory and Warehouse Processes

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  1. Inventory and Warehouse Processes

  2. Introduction • Inventory and warehouse management are closely related to the fulfillment and production processes • Warehouses often supply raw materials to manufacturing • Warehouses store and move finished and semi-finished goods • Warehouse management is an optional subsystem that must be enabled and configured

  3. Processes • Process change • • Picking and return • • Automated pharma •

  4. Inventory without WMS

  5. Inventory With WMS

  6. Types of Goods Movement • Receipt from production or procurement • Increases finished goods inventory • Goods issue to production or fulfillment • Decreases raw material inventory • Transfer postings change the status of a good • Stock transfers • Move goods from plant to plant or storage location • I’ll go through these in sequence

  7. Goods Movement • Goods can be received in the warehouse as a result of • Procurement • Production • You received purchased goods in the procurement lab • Goods leave the warehouse • Through shipping • Through disposal

  8. SteelCase Case • 10 plants • Small short-term warehouses to store goods for a matter of hours • 6 regional distribution centers

  9. Goods Status • Goods in the warehouse can be • Unrestricted • Held for a customer or other reason • In quality inspection • In transit • These goods are stored in storage locations

  10. Goods Status (Example) • MB52 Warehouse stock • Search for goods in a plant • Restrict by materials types

  11. Goods Status (Example)

  12. Goods Status (Discussion) • We can sell unrestricted stock • Transit/Transf stock is stock in motion • Restricted use stock includes reservations • Blocked stock is stock received “conditionally” pending acceptance • A batch is a subset of stock managed separately from the material itself

  13. Goods Movement (SAP)

  14. Goods Receipt • Remember it’s a receipt of goods into inventory from a vendor • Goods receipts are triggered by • Goods received from vendor from purchase • Unplanned receipts • Customer returns • Logistics / Materials Management / Inventory Management / Goods Movement

  15. Goods Receipt (SAP) • Again, these are configurable • Goods receipt (Other) MB1C

  16. Types of Goods Receipts

  17. Goods Issue • To review, goods are leaving inventory typically sold to a customer • Goods issue event is triggered by • Planned resulting from a sales order • Unplanned • Scrap / internal consumption / sampling

  18. Goods Issue (Types)

  19. Internal Warehouse Processes • What happens in the warehouse stays in the warehouse • We are just moving goods around. We are not revaluing them, buying them, or selling them • We will discuss in 2 parts • The organizational units • The processes of moving goods

  20. WM Organizational Units • A warehouse number defines a warehousecomplex made up of one or many buildings • Within a warehouse we have storagetypes • We can configure as a physical or logical subdivision of the warehouse complex

  21. WM Organizational Units

  22. WM Organizational Units • There will likely be several storage bins having the same storage type • Storage bins belong to a section and picking area (other organizational units), and have a capacity (weight, units, or both)

  23. WM Config • We have transaction codes to create warehouses, storage types and other needed OUs

  24. WM Organizational Units

  25. WM Bin Reports • We can look at bin utilization and time in bin

  26. WM Bin Creation • We create storage bins based on templates or perhaps manually

  27. WM Organization • Doors are locations where goods are received or shipped

  28. WM Organization (Door) • Doors are configured through the IMG

  29. WM Processes • We add additional steps to move goods from GR loading area to the warehouse (bins) • We add additional steps to move goods from warehouse to GI loading area • And a bunch of steps within the warehouse itself to do the picking and packing

  30. Transfer Postings • Change the status of a material in stock • Unrestricted use • QA / QC • Blocked • In transit • Transfer postings do not always result in the physical movement of goods • They might just change the logical status of a good

  31. Transfer Postings (Examples) • From vendor owned inventory to company owned inventory • The vendor stores their materials in our warehouse (consignment stock) • Change a material’s characteristics over time

  32. Transfer Postings (Movement Types) • Selected transfer postings

  33. Process Example (GR) • We receive goods into an interim storage area • We move goods into the warehouse through a stock transfer

  34. Process Example (GR) • I issued a GR for a purchase order where WM is enabled • The goods are received into a holding area with a storage bin corresponding to the PO

  35. Process Example (GR) • The detail shows ‘interim storage

  36. Process Example (GR) • We create a transfer order to put away the material

  37. Process Example (GR) • And finally the transfer order gets processes (here we put away)

  38. Process Example (GR) • And now my goods show up in the bins

  39. Stock Transfers • Use to physically move materials from one organizational level to another • Plant • Storage location • Etc.

  40. Types of Stock Transfers • Storage location to storage location • Plant-to-pant transfer • Company-code-to-company-code transfer • Stock transfers do not take into account • Transportation costs • Negotiated value or changes in pricing • Stock Transport Orders satisfy this need

  41. Stock Transfer (SAP)

  42. Stock Transfer (Illustration)

  43. Stock Transfer (Details) • The procedure can be performed two ways • 1-step process • Goods issue and goods receipt happen at the same time • 2-step process • Goods go through an in-transit status between goods issue and goods receipt • A FI document is generated to record the change in inventory

  44. Stock Transport Orders • These orders account for delivery and stock in transit • Billing can also be performed • Valuation can be changed • Progress of the transport can be tracked • The sending plant is the seller and the receiving plant is the buyer

  45. Warehouse Organizational Data • First, the warehouse management sub system must be enabled for the following to work • Enabling the warehouse management process involves additional steps in the goods issue and goods receipt phase

  46. Fulfillment Steps • After outbound delivery and before goods issue • Warehouse issues transfer orders • Create and confirm • Goods physically move from storage bins (locations) to interim storage

  47. Production (steps) • The same confirmations are made • When raw materials are issued to production • When finished goods are transferred back to the warehouse

  48. WH Controlling

  49. WH Controlling