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Warehouse and DC Management (Lean WM)

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  1. Warehouse and DC Management (Lean WM) SAP Best Practices for Retail

  2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario describes the processing of merchandise in the distribution center with inventory management done at the level of storage location – Lean Warehouse Management. • Benefits • Since storage procedures depend on space limitations, organization and the type of merchandise being stored, this scenario should be seen as one example of an implementation. However, this example can be easily adjusted to fit the warehouse of SAP customer. • Key Process Steps • Goods Receipt Processing • Return Deliveries • Goods Issue Processing • Warehouse Physical Inventory • Tools and Workbenches

  3. Required SAP Applications and Company Roles • Required SAP Applications • SAP SAP enhancement package 6 for SAP ERP 6.0 • Company Roles • Retail Store Manager • Retail Master Data Manager • Retail Replenishment Planner • Retail Warehouse Specialist

  4. Process Flow Diagram Warehouse and DC Management (Lean WM) Retail Replenishment Planner Create Purchase Order Retail Warehouse Specialist Create Inbound Delivery Posting Rough Goods Receipt Goods Receipt with Reference to Rough Goods Receipt

  5. Process Flow Diagram Warehouse and DC Management (Lean WM) – Return Deliveries (Optional) Retail Warehouse Specialist Article document for goods receipt Create Return Delivery Output of article document as goods issue slip

  6. Process Flow Diagram Warehouse and DC Management (Lean WM) – Goods Issue Processing Retail Warehouse Specialist Create Outbound Delivery Create transfer order as picking document Alternative 1: Confirmation without differences Mass processing of outbound deliveries Alternative 2: Confirmation with fifference Post goods issue

  7. Process Flow Diagram Warehouse and DC Management (Lean WM) – Warehouse Physical Inventory (Optional) Retail Warehouse Specialist Create physical inventory document Process physical inventory Clearing differences Analyse physical inventory Alternative 1: Manual creation of physical inventory Alternative 2: Creation of physical inventory via batch-input

  8. Outb. Del. PO Inb. Delivery Rough GR Document Flow in the Warehouse L e a n - W M IM GOODS RECEIPT PUTAWAY TRANSFER ORDER optional There is no stock keeping in Lean-WM, but just recording of movements usingtransfer orders. FIXEDSTORAGEBIN GOODS ISSUE PICKING TRANSFER ORDER optional

  9. Inventory Management - IM vs. WM Inventory Management on article level Fixed storage bin can be maintained in the article master (text field) IM Site Storage Location No additional level of stock keeping below IM. Warehouse number and type are just used for the recording of stock movements using the transfer order, but no stock posting is triggered when moving merchandise at this level. Whose number Storage type L e a n - W M

  10. When you implement Lean WM, inventory management takes place solely at storage location level. The system does not update the stock data at storage bin level using the quants like the Warehouse-Management-System (WMS) . You use Lean WM solely for processing goods receipts and goods issues. Using Lean WM, you process the warehouse movements in basically the same way as if using the Warehouse Management System: you work with deliveries, and you create transfer orders for these deliveries. These transfer orders serve as pick lists. The use of transfer orders in Lean WM provides the following advantages: You can reprint transfer orders at any time. You can split transfer orders and thus distribute the workload better among the staff in your warehouse. You can use mass processing functions based on the transfer order (for example wave picks). Using Lean WM

  11. Manual creation in the outbound delivery monitor using selection by: • Shipping point • Picking date • Route, carrier ... • Free selection Delivery Delivery Delivery Delivery Delivery Delivery Delivery • Automatic generation using selection by: • Picking date / time • Additional filter by several criteria • (e.g. route, shipping point, ship-to-party ...) Group of Outbound Deliveries or Wave Pick • Considering capacity restrictions: • Weight, volume • Maximum items on the picking list • Working time • ... Mass Processing of Deliveries

  12. Collective Follow-On-Processing: • Create transfer order • Confirm transfer order • Post goods issue Delivery Delivery Delivery Delivery Delivery Delivery Delivery Group of Outbound Deliveries or Wave Pick Mass Processing of Deliveries

  13. Planned Goods Issue Delivery Delivery Delivery Delivery Delivery Rough Workload Estimate • Calculation of • workload using: • Logistics Load Category • Unit of Measure • Whse no. / storage type • Warehouse process • Estimated Workload in: • Quantity • Weight • Volume • Execution time • Information on: • needed manpower • needed transport • capacity

  14. Processes Goods Receipt and Return Deliveries

  15. Processes Picking and Goods Issue

  16. Process Physical Inventory