Overview page 1

Warehouse Management in SAP is specifically known as SAP EWM that is extended warehouse
management. The software solution designed to optimize and automate various logistical
processes within a warehouse environment. It provides functionalities to manage the
entire flow of goods, from the moment they arrive at the warehouse until they are
shipped out to customers.

We have two warehouse management system depending on our needs:

 Basic Warehouse Management (WM): This comes included with S/4HANA and
covers essential warehouse tasks like receiving goods, put-away (storing them),
picking orders, issuing goods, and stock counting. It's suitable for businesses with
basic warehousing needs.

 Extended Warehouse Management (EWM): This requires an additional license
and offers more advanced features for complex warehouses. It includes
functionalities like multi-warehouse management, labor management, value-added
services, and enhanced picking strategies.

Both Systems provide :

Real-time transparency: Track inventory levels and warehouse activities in real-time
for better decision-making.
Improved efficiency: Optimize warehouse processes through automation and
optimized picking strategies.
Reduced errors: Minimize picking and inventory errors with barcode scanning and
system-directed workflows.
Integration with other modules: Seamless integration with other S/4HANA modules
like Sales & Distribution and Production Planning for a unified view of your supply chain.

Warehouse management solution is suitable for various businesses with complex

warehouse operations, particularly those dealing with high volumes, diverse product
ranges, or strict quality control requirements like mentioned below.
1. Manufacturing companies with large production facilities and extensive finished
goods warehouses.
2. Distribution centers handling a high volume of inbound and outbound goods.
3. Third-party logistics providers managing inventory and fulfillment for multiple
clients.
4. Businesses in industries with stringent quality control requirements, such as
pharmaceuticals or electronics.

Some core functionalities of SAP EWM:

1. Inventory Management: It provides comprehensive tools to manage stock

levels throughout their lifecycle. This includes functionalities like receiving goods,
 putting them away in designated storage locations, optimizing storage space,
conducting cycle counts for verification, and making adjustments to inventory records.
2. Warehouse Layout and Operations: It allows you to define your warehouse
layout, strategically assign storage bins to different items, and manage picking ,
packing , and loading processes efficiently.
3. Inbound and Outbound Processes: The system facilitates streamlining goods
receipt processes, order fulfillment activities , and shipment preparation, ensuring a
smooth flow of goods through the warehouse.
4. Labor Management: The system can support features for optimizing labor
resources by allocating tasks to warehouse personnel and potentially tracking their
work performance.
5. Quality Management: It offers functionalities for managing quality control
processes, including creating inspection lots for specific goods and potentially
integrating with quality control equipment.
6. Reporting and Analytics: It generates comprehensive reports and analytics on
various warehouse performance indicators (KPIs) such as inventory accuracy, order
fulfillment rates, and overall warehouse throughput.

Overall warehouse management plays a crucial role in transforming warehouse

operations from manual processes to a more automated and data-driven approach. By
leveraging its functionalities, businesses can achieve significant improvements in
efficiency, accuracy, and overall supply chain performance.

Organization Structure 2
Organization structure : The organization structure in SAP Warehouse
Management refers to the hierarchical framework that defines how your physical
warehouse and its operations are mapped within the system. It essentially creates a
digital representation of your warehouse layout and functionalities.
We have different organizational units like plant and storage location which relates to
material management but performs the process with warehouse management units in
the system.
Plant
A core organizational unit in SAP which represents a manufacturing or production unit
while its not complete MM unit it also supports WM as well.
A warehouse number can be assigned to one or more plants.
Storage Location
A organizational Unit which allows the differentiation of material in a plant. Which
stores the material received at storage location level.
One storage location is assigned to one plant where as plant can have more than one
storage locations assigned to it.
Warehouse Number
 This is the highest level of organization in WM. Each physical warehouse or storage
area is assigned a unique warehouse number in SAP.
Storage type
A physical storage area inside the warehouse which holds the storage sections and
further bins. Storage type differs according to organizational criteria.
Storage Section
A sub-division with in a storage type, It groups storage bins with similar attributes for
optimized storage to put away the stocks and retrieve it whenever in need.
Storage Bin
The smallest available space in warehouse to store the products which identifies the
exact location of goods in a warehouse.

Some of the key elements in warehouse management are:

Storage Unit: This refers to the smallest physical unit of storage, such as a pallet,
carton, or individual item. Storage units are managed and tracked within storage bins.
Storage Section Control: This defines rules and parameters for managing storage
sections, including storage capacities, picking strategies, and replenishment methods.
Storage Bin Control: It involves settings and configurations for individual storage bins,
including bin types, capacities, picking and put-away strategies, and hazardous material
handling.
Storage Unit Management: This component manages the movement and tracking of
individual storage units within the warehouse, including put-away, picking, and inventory
processes.
Warehouse Tasks: These are specific activities performed within the warehouse, such
as goods receipt, goods issue, internal movements, and physical inventory. Tasks are
created, assigned, and executed based on warehouse processes and priorities.
Warehouse Management Master Data: This includes material master data, storage
bin master data, warehouse product master data, and other relevant information needed
to manage warehouse operations effectively.

Now lets see how business is benefitted with this defined organization structure and
how smooth the process goes.

1. Improved Warehouse Efficiency: A well-defined structure facilitates optimized

storage allocation, efficient picking routes, and streamlined warehouse operations.
2. Enhanced Inventory Control: Clear organization allows for precise stock
tracking at each level (warehouse, storage type, bin), ensuring accurate inventory
data.
3. Simplified Material Flow Management: The structure defines the flow of goods
within the warehouse, from receiving to picking, packing, and shipping.
4. Better Reporting and Analysis: By linking activities to specific locations within
the structure, EWM can generate reports with granular details for better
performance analysis.
By establishing a well-defined organization structure in SAP EWM, you can create a
digital replica of your warehouse, enabling efficient management of storage space,
inventory control, and overall warehouse operations.

Process Flow in warehouse management

The complete process flow in SAP Warehouse Management involves a series of
integrated activities that manage the movement and storage of goods within a
warehouse.

1.Goods receipt :
A crucial process where system marks the arrival and acceptance of goods into
warehouse
Verifies the delivery of goods against purchase orders and records the goods in
warehouse and stores into particular storage type/ bins based on material category.

Supplier delivers goods: The warehouse receives a notification of incoming goods,

often with a Bill of Lading (BOL) or packing slip detailing the items.
Verification and inspection: Warehouse staff verifies the quantity and condition of
goods against the received documents. Discrepancies are documented.
Data entry: Verified information is entered into the Warehouse Management System
(WMS) to update inventory records.

2. warehouse Goods Movement :

Track the flow of goods within the warehouse from the point of arrival and to the point of
departure from warehouse
Transfer of goods between storage location with in the warehouse or across the
warehouse and updates the status of goods and post the stock to particular storage
section or bin.

3. Put-away:
 Location assignment: Using the WMS, staff determines the optimal storage
location for the received goods based on factors like item size, weight, and
demand.
 Product movement: Goods are transported to their designated storage
locations within the warehouse.

4. Storage:
 Inventory Management: The WMS tracks the location and quantity of all stored
goods.
 Stock control: Regular inventory checks ensure accuracy and prevent
stockouts.

5. Picking:
  Order processing: When a customer order arrives, the WMS generates a pick
list detailing the items needed to fulfill the order.
 Order picking: Warehouse staff use the pick list to locate and retrieve items
from storage. The WMS may guide them through optimized picking routes for
efficiency.

6. Packing:
 Order consolidation: Picked items are brought together and verified for
accuracy.
 Packing and labeling: The order is securely packed with appropriate protective
materials and labeled with customer and shipping information.

7. Goods Issue:
 Order dispatch: The packed order is prepared for shipment by the chosen
carrier. Shipping documents are generated.
 Inventory update: The WMS updates inventory records to reflect the reduction
in stock due to the fulfilled order.

Benefits of defined process flow in warehouse management.

1. Improved Efficiency: Streamlined workflows and automation capabilities within
EWM lead to faster processing times and efficient movement of goods.
2. Enhanced Accuracy: It facilitates data accuracy throughout the process flow,
minimizing errors in receiving, picking, packing, and shipping activities.
3. Increased Visibility and Control: Real-time data and insights into warehouse
operations allow for better decision-making, proactive issue resolution, and
improved inventory control.
4. Optimized Resource Utilization: It helps optimize storage space utilization,
labor allocation, and potentially transportation costs through better planning and
execution.

Over all a well defined process flow of warehouse management helps businesses to
achieve a more automated, data-driven, and efficient warehouse operation, ultimately
contributing to a stronger overall supply chain performance.

Master Data
What is master data in SAP?
A core building block for business purposes where it holds essential information about
the products, objects, materials, entities in a system.
Long lasting of data with minimal changes when updates occurred, it serves as a
reference point in terms of transaction data for business processes.

In the warehouse management we have core master data is

1.Storage Bin.
Storage bin master data defines the individual storage locations within a designated
storage type in the warehouse.
It essentially provides the precise address for each bin, allowing you to locate the exact
spot where an item is placed.
Each storage bin has a unique ID with in the warehouse with alphanumeric to follow the
system coordination.
Additional Bin attributes can be defined based on the needs of materials to be stored.

Considerable Master data that is

2.Storage types
This specifies whether the material needs special storage conditions for example
hazardous materials storage.

Relevant data that is

3.Handling unit
An HU represents a physical grouping of items, typically placed on a pallet, shrink-
wrapped together, or otherwise combined for easier handling and storage.
4.Work center
A Work Center represents a specific location within the warehouse dedicated to a
particular activity.

Let's elaborate the concepts with deep diving in master data of warehouse
management.

1. Warehouse Structure:
Warehouse Number: This represents your entire warehouse facility, potentially
encompassing a single building or a complex with multiple storage areas.
Storage Types: Warehouses are further divided into storage types based on various
characteristics. This could include:
 Function: Dedicated areas for raw materials, finished goods, hazardous
materials, or temperature-controlled storage.
 Equipment: Areas designed for specific storage/retrieval systems like
automated storage and retrieval systems (AS/RS).
 Security Requirements: High-value items or sensitive materials might
require designated secure storage areas.
Storage Sections: Each storage type can be further subdivided into sections for better
organization within a specific area. These sections might be based on:
 Product Category: Grouping similar items together for easier access and
picking.
 Item Size: Storing bulky items in designated sections separate from
smaller items.
 Retrieval Frequency: Frequently picked items might be placed in more
accessible sections.
Storage Bins: The most granular level represents individual storage compartments
within a section. Each bin has a unique identifier and capacity to reflect its storage
limitations.
2. Item Master Data:
Material Master Data: This core data, often integrated from the Material Management
(MM) module in SAP, provides essential details about each item stored in the
warehouse:
 Material Number: Unique identifier for each item.
 Description: Basic information about the item.
 Weight and Dimensions: Important for storage space allocation and
weight restrictions.
 Picking Unit: The unit in which the item is typically picked (e.g., box,
piece).
 Special Handling Instructions: Specific requirements for storage or
handling (e.g., fragile, flammable).

Comprehensive and well-maintained warehouse management master data forms
the backbone of efficient warehouse operations. By providing the WMS with
essential details about your warehouse structure, items, resources, and
processes, you can enable better organization, streamlined workflows, and
ultimately, a more efficient and accurate warehouse environment.

Inbound Receiving
The inbound process in SAP Warehouse Management refers to all the activities
involved in receiving goods from suppliers and storing them within the warehouse. It's a
crucial stage in the overall supply chain, ensuring a smooth flow of goods and
maintaining accurate inventory levels.

1. Hand Over Stocks to warehouse explains the process of transferring ownership

and responsibility of goods from one party to the warehouse department. It's a
crucial step in the supply chain, ensuring the warehouse has accurate inventory
data and the items are properly stored and managed.
2.
2. Posting a goods receipt in warehouse management signifies the final step in
formally receiving and recording incoming goods within the warehouse system. It
essentially updates the warehouse's inventory levels to reflect the arrival of new
stock.
3.
3. Putaway, in warehouse management is the entire process of storing received
goods in their designated locations within the warehouse. It's a crucial step that
bridges the gap between receiving inventory and making it available for picking
and fulfillment.
4.
4. Confirming goods in warehouse management refers to the process of verifying
the accuracy of inventory records against the physical stock present in the
warehouse.
Lets understand it with some elaboration :

1. Pre-Inbound Activities :
 Purchase Order Creation (MM): The inbound process typically begins with the
creation of a purchase order in the Materials Management module. This document
specifies the items being ordered, quantities, and the expected delivery date from
the supplier.
 Inbound Delivery Notification (WM): Based on the purchase order, an inbound
delivery notification is automatically generated in WM. This notification informs the
warehouse about the upcoming delivery, allowing for preliminary planning activities
like allocating resources or reserving storage space.
2. Goods Receipt:
 Delivery Arrival: When the goods arrive at the warehouse, a worker verifies the
delivery against the shipping documents or purchase order details. This might
involve checking for quantity, damages, or missing items.
 Goods Receipt Document Creation: Once the delivery is verified, a goods
receipt document is created in WM. This document captures details like the
received quantity, batch information and any issues noted during verification.
3. Quality Control :
 Inspection Lots: For certain items or depending on company policies, quality
control checks might be required before accepting the goods into the warehouse.
WM allows for creating inspection lots, which group specific quantities of received
goods for quality checks. Integration with separate quality control systems might be
possible.
4. Put-away:
 Storage Location Determination: The system identifies the optimal storage
location for the received goods based on predefined storage strategies. These
strategies might consider factors like item characteristics at activity level or special
storage requirements
 Put-away Tasks: WM generates put-away tasks or instructions, which specify
the items, quantities, and designated storage locations for the received goods.
Warehouse personnel might utilize mobile devices or barcode scanners to confirm
put-away activities and update the system.
5. Inventory Update:
 Stock Posting: Upon completing the put-away process, a stock posting is
triggered in WM. This updates the inventory record for the specific items, reflecting
the increased quantity in the designated storage location.

Benefits of an Efficient Inbound Process in warehouse management :
 Improved Inventory Accuracy: Accurate goods receipt and putaway processes
ensure a clear picture of on-hand inventory, minimizing stock discrepancies.
 Enhanced Receiving Efficiency: Streamlined procedures for verifying,
inspecting, and storing goods lead to faster processing times and reduced
congestion in the receiving area.
 Optimized Warehouse Space Utilization: Effective putaway strategies based
on item characteristics allow for better space allocation within the warehouse.
  Faster Order Fulfillment: Timely receiving and storing of goods ensures they
are readily available to meet customer order fulfillment requirements.

Over all to conclude inbound process businesses can achieve efficient goods receipt,
maintain accurate inventory data, and ultimately contribute to a smoother and more
responsive supply chain.

Warehouse Internal process

Prepare ASN data : Getting ready to receive an incoming shipment based on the
information provided in an Advanced Shipping Notice (ASN) from the supplier or
vendor.

Receive Goods : The process of accepting, checking, and storing incoming shipments.
It's essentially the first step in making those goods available to be shipped out to
customers or used in production.

Inspection : Inspection of goods refers to a series of checks performed on incoming or

outgoing inventory to ensure various aspects like quality, condition, and accuracy.

Put away : As discussed in the above slides Put away is the warehouse task where
products received are stored in the assigned storage bin which is the final storage of
goods in warehouse.

Stocking : Refers to the entire process of overseeing the flow of goods within a
warehouse. It encompasses everything from strategically planning inventory levels to
the physical storage and organization of items.

Delivery Order : A delivery order, specifically an outbound delivery order, is

a document where products or goods are picked up for several purposes throughout
the entire outbound delivery process.

Picking : Picking refers to the process of selecting the exact items and quantities
required to fulfill a customer order, delivery order, transfer request, or production need.
It is the mandatory step within the outbound delivery process and involves ensuring
accuracy and efficiency.

Packing : Packing refers to the process of preparing picked items for shipment. It
involves grouping, securing, and labeling the items according to specific requirements to
ensure safe and efficient transportation to the customer.

Inspection : Inspecting goods before shipping is not a mandatory step in outbound

delivery process . There are functionalities and configurations that allow for quality
checks of goods at various points, depending on the specific needs of customer with
instructions.

Shipping : Shipping refers to the final stage of the outbound process where goods are
prepared and sent to customers. It involves a series of activities that ensure the safe
and timely delivery of orders.

Quality management in warehouse

Quality Inspection in internal warehouse process

 Inspection Types: WM facilitates quality inspections for various scenarios:
 Goods Receipt Inspection: Inspecting delivered goods from suppliers
before accepting them into the warehouse.
 In-Warehouse Inspection: Manually triggering an inspection for specific
items already stored in the warehouse
 Customer Return Inspection: Inspecting returned goods from customers
to determine their condition and appropriate actions.
 Inspection Lots: For efficient quality checks, WM allows grouping specific
quantities of goods into inspection lots. This could involve a sample from a larger
delivery or all items from a particular production batch.
 Inspection Rules: Predefined rules within WM determine when and how quality
inspections are conducted. These rules might be based on:
 Item Category: Certain item categories might always require inspection
upon receipt.
 Supplier History: Suppliers with a history of quality issues might have
stricter inspection procedures.
 Value of Goods: High-value items might warrant more thorough
inspections.
 Inspection Decision: After completing the inspection, personnel record the
results within EWM. The system allows for:
 Usage Decision: Based on the inspection outcome, a decision is made
on how to handle the goods (accepted, rejected, reworked).
 Recording Findings: Documenting any defects or quality issues
identified during the inspection.
These are some steps involved.
Creation of Inspection Lot : An inspection lot essentially represents a request for a quality
inspection on a specific quantity of material. It serves as a record within the system for
documenting the inspection process and results.

Creation of warehouse task : Warehouse tasks is a crucial step that translates

warehouse orders or requests into actionable instructions for warehouse personnel. A
warehouse task essentially specifies the exact activities required to move goods within
the warehouse

Process warehouse task : Processing a warehouse task refers to the activities

involved in fulfilling a specific task within the warehouse. Warehouse tasks are
essentially instructions or documents that guide the movement and handling of goods
within the warehouse.

Record usage of stock : The process of capturing and documenting the inventory
stock due to various warehouse activities to be performed in next steps.

Stock Posting in warehouse

Posting stock : Posting Stock in warehouse management refers to the process of
electronically documenting an increase in the quantity of a particular material within a
specific storage location in the warehouse. This update reflects the physical arrival of
new stock and ensures accurate inventory records within the system.

Each stock posting activity is associated with a specific movement type in WM.
Movement types categorize different goods movement scenarios within the warehouse.
Here are some common movement types related to warehouse stock postings:
1. Goods Receipt from an external supplier.
2. Goods Issue for fulfilling a sales order or internal transfer.
3. Inventory Transfer between storage locations within the warehouse.
4. Inventory Adjustment (positive or negative) due to factors like shrinkage or
damage.
5.
When a stock posting is triggered, the WM system performs the following steps
 Identifies the Item: The system identifies the specific item affected by the
warehouse activity based on the material number or other relevant identifiers.
 Updates Inventory Record: The stock level for the item in the designated
storage location (bin) is updated. This could be an increase or a decrease (e.g.,
picking).
 Batch Management : If the item is batch-managed (meaning it has expiry dates
or production lot information), the system might update the stock level for a specific
batch within the storage location.
 Accounting Integration: Depending on the configuration, the stock posting
might trigger updates in integrated accounting modules to reflect the change in
inventory value.

KANBAN Process in warehouse management
Kanban is a visual inventory replenishment system that relies on signaling mechanisms
to maintain optimal stock levels. While SAP WM doesn't have a dedicated Kanban
module, it offers functionalities to configure and manage Kanban-based replenishment
strategies for warehouse operations.

This is how kanban works in SAP warehouse management

Helps In Master Data Setup:
 Control Cycle Definition: A Kanban control cycle is created in WM, specifying
the items to be managed using the Kanban system. This cycle defines:
 Material: The specific item being replenished using Kanban.
 Plant: The warehouse or storage location where the Kanban system is
implemented.
 Supply Area : The designated area within the warehouse where Kanban
containers are stored.
 Replenishment Strategy: Defines how the warehouse is notified about
the need for replenishment. Here are common Kanban replenishment
strategies in EWM:
 Stock Transfer with Delivery: Material is transferred from a
designated source storage location to the Kanban area upon
notification.
 External Procurement: Triggers a purchase order for the Kanban
material from an external supplier.
 In-house Production: If the Kanban material is produced in-house,
a production order might be triggered upon notification.
 Kanban Quantity: This defines the number of Kanban containers used for a
specific material. Each container typically holds a fixed quantity of the material.
 Maximum Empty Allowed: This defines the maximum number of empty Kanban
containers allowed before a replenishment notification is triggered.

Production Integration
Production integration in warehouse management refers to the seamless flow of
information and materials between the warehouse and the production floor. This
integration ensures that the production process has the necessary materials available at
the right time, while also managing the finished goods produced.
Benefits of Production integration process
Improved efficiency.
Reduced inventory levels.
Enhanced order fulfillment.
Better production planning.

Production integration in SAP WM allows for a seamless flow of materials between the
warehouse and production processes. This integration ensures that:
 Raw materials are readily available for production when needed.
  Finished goods are efficiently received and stored after production.

There are two primary approaches to production integration in EWM:
1. Delivery-Based Production Integration:
This is the traditional approach and involves the following steps:
 Production Planning & Control (PP): In the SAP Production Planning (PP)
module, a Production Order is created, specifying the items to be produced,
quantities, and required materials.
 Bill of Materials (BOM): The BOM, also defined in PP, lists the components and
raw materials needed to produce the finished good.
 Material Reservation: Based on the Production Order and BOM, EWM
automatically reserves the required materials in the warehouse. This ensures the
materials are available for picking when needed.
 Picking for Production: A warehouse worker picks the reserved materials
based on a picking list generated by EWM.
 Goods Issue: Once picked, the materials are issued to production through a
goods issue process in EWM. This updates inventory records and reflects the
materials consumed in production.
 Production Confirmation (PP): In the PP module, a confirmation is made upon
completion of production, specifying the quantity of finished goods produced.
 Goods Receipt for Finished Goods: Based on the production confirmation,
EWM generates a goods receipt document for the finished goods. This document is
used to receive and store the finished products in the warehouse.

2. Advanced Production Integration (API):
This approach offers a more tightly integrated and automated process, particularly
suitable for repetitive manufacturing scenarios. Here's how it works:
 Production Material Request (PMR): The PP module creates a PMR in EWM
when a Production Order is released. The PMR specifies the components and
quantities needed for production.
 Staging: EWM generates staging tasks for the required materials. This instructs
warehouse personnel to move materials from storage locations to a designated pre-
production staging area.
 Consumption: Production consumes the materials directly from the staging
area. Consumption can be confirmed electronically or manually through EWM.
 Automatic Goods Receipt: Upon confirmation of production completion, EWM
automatically generates a goods receipt document for the finished goods,
eliminating the need for a separate process.

Why we use Production integration process what benefits we get from It let's see

 Improved Inventory Visibility: Provides real-time visibility into raw material

stock levels and finished good production quantities.
 Reduced Lead Times: Streamlines material movement between warehouse and
production, potentially reducing production lead times.
 Enhanced Planning & Control: Enables better planning for material availability
and production scheduling.
  Reduced Errors: Automates processes and minimizes manual intervention,
reducing the risk of errors in picking and issuing materials.

Outbound Process GI

Lets elaborate the outbound process in warehouse management.

The outbound process in SAP Warehouse Management encompasses all activities

involved in fulfilling customer orders, shipping products, and managing the flow of goods
out of the warehouse. Let's delve into a detailed breakdown of this process:
1. Initiating the Outbound Process:

 Sales Order Creation : The starting point typically lies in the Sales and
Distribution module, where a sales order is created. This document specifies:
 Customer details
 Ordered items
 Requested quantities
 Delivery date

2. Order Fulfillment Checks:

 Inventory Availability Check: WM verifies if sufficient inventory exists to fulfill

the sales order. This check considers:
 On-Hand Stock: The available quantity of each ordered item in the
designated storage locations.
 Reservations: Any existing reservations on the items due to other sales
orders or planned movements.
 Batch Management : For batch-managed items WM might check for
specific batches requested by the customer.

3. Picking and Packing:

 Picking Tasks: WM generates picking tasks or instructions for warehouse

personnel.
These tasks specify:
 Items to be picked
 Quantities required
 Designated storage locations (bins)

 Picking Execution: Pickers utilize mobile devices or paper pick lists to navigate
the warehouse and retrieve items from designated locations. They might scan
barcodes to confirm picking accuracy and update the system in real-time.

  Pick Confirmation: Pickers confirm the completion of picking tasks in WM,
updating inventory records to reflect the reduced stock levels for the picked items.

 Packing: Picked items are staged in a designated packing area. Packing
personnel might utilize functionalities like:

 Packing List Generation: WM generates packing lists that detail the
items, quantities, and packaging instructions for each shipment.
 Packaging Material Selection: The system might suggest appropriate
packaging materials based on item characteristics and shipping requirements.
 Weight and Dimension Capturing: The weight and dimensions of the
packed goods might be captured for shipping cost calculation or compliance
purposes.
4. Goods Issue and Shipment Preparation:
 Goods Issue Posting: Once the items are picked and packed, a goods issue is
posted in WM. This process:
 Debits the inventory records for the shipped items.
 Updates accounting records to reflect the cost of goods sold.
 Delivery Creation: Based on the sales order and packing information, WM might
generate a delivery document. This document serves as a packing slip and shipping
instruction, containing details like:
 Customer information
 Ordered items
 Shipped quantities
 Weight and dimensions.

5. Shipment Execution and Completion:

 Shipment Release: The prepared shipment is released for outbound
transportation. This might involve:
 Handing over the shipment to a designated carrier.
 Self-delivery using company-owned vehicles .
 Shipment Tracking : WM might integrate with tracking systems to monitor
shipment progress and provide real-time updates to customers.
 Delivery Confirmation: Upon successful delivery to the customer, a delivery
confirmation might be received in WM, potentially triggering invoice creation in the SD
module.

By effectively managing the outbound process in SAP WM, businesses can ensure
efficient order fulfillment, timely deliveries, and accurate inventory tracking. This
contributes to increased customer satisfaction, improved operational efficiency, and
overall supply chain optimization.

Here we conclude with complete Warehouse management process in SAP

Thank you