An Introduction to Extended

Warehouse Management
Supply Chain Execution
SCM 5.0
Duration of the eBook: 06 minutes

Note: This eBook contains spoken text that requires a headset and at least Adobe Acrobat Reader 6.0.
The Adobe software can be found under the “Viewer Software” link at the top of each Learning-Map.
Landscape
Positioning
Landscape
Positioning
 What is EWM?

EWM Software component:

„ SCM 5.0 in mySAP SCM 2005 (SCM EWM)
„ ECC 5.0 in mySAP ERP 2004 (shipment started with SCM Enterprise
Extension 2.0) (ERP EWM)

Ramp-up:
„ Participation in SCM 5.0 and mySAP ERP 2005 ramp-up
„ ECC 5.0 is out of RU with mySAP ERP 2004

© SAP AG 2005
 Landscape Overview – Decentralized WM (SAP ECC)

SAP CRM SAP SRM ERP SAP SCM

TRM
WM
WM TRA
TRA
„ Full SAP ECC
installation
IM
IM SD
SD PP
PP QM
QM PM
PM
„ Only Warehouse LE
LE
HR
HR FI
FI
Management Logistics
Logistics
configured
Cross
Cross Application
Application Objects
Objects (SAP
(SAP ABA)
ABA)

Web
Web Application
Application Server
Server (SAP
(SAP Web
Web AS)
AS)
Decentralized WM

© SAP AG 2005
 Service Parts Management – Building Blocks

SAP CRM 2005

SAP SCM 2005
Service Parts Execution
Marketing Campaign Processing Service Parts Planning
Sales Order Processing Strategic Supply Chain Design
Billing incl. Invoice Corrections Parts Demand Planning
and Entitlement Management Parts Inventory Planning
Complaints and Returns Processing Parts Supply Planning
Parts Distribution Planning
Analytics
Parts Monitoring
Execution Collaboration Supply Network Collaboration
Supply Chain Analytics
SAP NetWeaver 2005
Service Parts Execution
Quality Assurance and Control
Warehousing and Storage
Physical Inventory
SAP ERP 2005 Cross Docking
Outbound Processing
Service Parts Execution Transportation Management
Purchase Order Processing Execution Monitoring
Inbound Processing and Execution Collaboration
Receipt Confirmation Analytics
Analytics
SAP NetWeaver 2005

SAP NetWeaver 2005

© SAP AG 2005
 Landscape Overview - Decentralized EWM (SAP SCM 5.0)

Central SRM Central MDM SAP

SCM ERP CRM

SAP APO

„ Fully Integrated
into SCM suite
SNP PP
PP
DP
DP TP/VS
TP/VS SNP gATP
gATP
DS
DS
„ Installation on a
separate server is
EWM
EWM SPP EM ICH
SPP EM ICH
Live
Live Cache
Cache
recommended
Cross
Cross Application
Application Objects
Objects (SAP
(SAP ABA
ABA 7.00)
7.00)

Web
Web Application
Application Server
Server (SAP
(SAP Web
Web AS
AS 7.00)
7.00)

SAP SCM 5.0

© SAP AG 2005
Landscape
Positioning
 The scope of supply chain has increased.

Trading Partners Enterprise View Network View

Historical data
Long
Long term
term
Faster order planning
planning
to delivery
cycles Mid
Mid term
term
planning
planning

Short
Short term
term Replenishment
Replenishment
planning
planning
Shorter
product life
cycles Sense and Respond
to Demand Customers
and
Consumers
Faster High
Warehouse Higher
product Warehouse Availability
Management Service
development Management
Levels As Needed
cycles Transportation
Transportation
Management
Management

Suppliers Distribution Centers Stores

Manufacturing
Manufacturing
© SAP AG 2005
 The reality of a complex supply chain network is an
everyday occurrence.
Suppliers Manufacturer Regional Retail and/or Customers
DC Wholesale and
DC Consumers
„ Single channel
supply chains
are no longer
the norm Repair
North

„ All or portions
of your supply
chain may be West

outsourced
Returns

„ Product will flow

in numerous East
directions Returns

„ Adapting to
changes quickly
is no longer an
exception
process

© SAP AG 2005
 Success in a supply chain network requires integrated
Planning and Execution by design (not after the fact).

Global Visibility and Event Management

Plan PUSH Execute

Long
Long term
term
planning
planning Demand
Demand
Fulfillment
Fulfillment
Mid
Mid term
term
planning
planning Shipment
Shipment
Management
Management
Trading Short
Short term
term Customers
Partners planning
planning and
Trading
Trading Partner
Partner Consumers
Enablement
Enablement
Supplier
Supplier
Learn
Collaboration
Collaboration
Manufacturing
Manufacturing
Order
Order
Fulfillment
Fulfillment
PULL
Replenishment
Replenishment
Signal
Signal

Respond Sense

Suppliers Manufacturer Distribution Centers Stores

© SAP AG 2005
 The “Pull” components have been affected by the changing
networks.

„ Real-time buying data from multiple sources

require immediate attention
ƒ (POS Signals, Internet Orders, Telephone, RFID, etc.)

„ Network in-stock positions can mutate

beyond expectations

„ Pre-defined inventory deployment may not be

in line with customer needs

„ Shortage situations demand reliable order

promising and substitution processes

„ Manufacturing capacity data assists with

meeting customer expectations

© SAP AG 2005
 How have the “Execution” components changed?

„ Continued pressures to reduce overall Supply

Chain costs

„ Increasing demands from the customers for

the perfect order

„ Capacity constraints push carriers and

suppliers into integrated relationships

„ Communicating out-of-plan activities are

more critical than ever

„ Revised operating models are no longer

supported by existing warehouse systems

„ Postponement strategies are creating more

value added processes in fulfillment centers

© SAP AG 2005
 “Trading Partners” are integral members of the changing
network.

„ Additional pressures are applied to decrease

overall inventory levels and product costs

„ Suppliers must provide greater visibility

across the board

„ Federal mandates and customer compliance

programs mandate seamless adherence

„ Suppliers and their partners are taking on

more critical roles in execution

„ Short term planning becomes a critical factor

for successful execution within this new
environment

© SAP AG 2005
 How has “Global Visibility” and “Performance Management”
been affected by the changing networks?

„ The need to be Real World Aware for

production, inventory, operations and
consumption events is advanced

„ Increasing demands from consumers to meet

and/or exceed fulfillment expectations
requires track and trace abilities

„ Inclusive views of inventory across multiple

systems and the network is mandatory in
real-time

„ Timing of a new course of action for changing

processes/channels/suppliers not meeting
business objectives is critical

© SAP AG 2005
 Your ASCN can succeed with the SAP SCE
application suite.
Global Visibility

Plan PUSH Execute

Long
Long term
term
planning
planning Demand
Demand
Fulfillment
Fulfillment
Mid
Mid term
term
planning
planning Shipment
Shipment
Management
Management
Trading Short
Short term
term Customers
Partners planning
planning and
Trading
Trading Partner
Partner Consumers
Enablement
Enablement
Supplier
Supplier
Analyse / Report
Collaboration
Collaboration
Manufacturing
Manufacturing
Order
Order
Fulfillment
Fulfillment
PULL
Replenishment
Replenishment
Signal
Signal

Respond Sense

Suppliers Manufacturer Distribution Centers Stores

© SAP AG 2005
 Key Capability: Service Parts Execution

Service Parts Execution enables a logical flow of parts through

the service network.

This includes:
„ procurement
„ goods movement of new parts and returned parts
„ quality management
„ and warehouse and storage management.

New Parts
Quality
Inspections
Warehouse
Management
Goods Movement

Returned Parts
Repair Services

Physical
Inventory

Cross Docking
© SAP AG 2005
 Service Parts Execution

„ Warehouse Monitor for overview of all warehouse activities

Parts Execution Monitoring

Parts
Inbound Parts Parts Quality Physical Parts Cross-
Warehousing
Processing Management Inventory Docking
and Storage

„ Stock visibility in staging area Warehouse optimization „ Physical inventory „ Transportation cross-
„ Counting triggered by various „ Slotting: Find the best bin for a management based docking:
criteria material on various strategies Forward parts to the
„ Bundling: Group warehouse (strategy for slow end facility / customer
„ Packaging for consolidation and
management requests to movers, fast movers, via one or more
deconsolidation of parts / critical parts etc) intermediate facilities
optimize picking, packing and
inbound packaging for long term
staging of goods
storage
„ Transportation chain route
„ Scrapping requests (all or optimization
expect best n pieces) and „ Kitting: Enhanced kit-to-order
scrapping strategies for part process
identification
„ Rules-based rebalancing
„ Enhanced customer returns based on planning results
management process and full „ Flexible warehouse modeling
visibility (storage bins, staging areas,
„ Contract Packager inbound work stations)
processing „ Emergency replenishment –
picker encountered empty bin
„ Picker-directed replenishment
– picker does replenishment by
himself
© SAP AG 2005
 EWM Basics – Example of Business Requirements

Handling of multi step picking and putaway Æ Internal routing

Finding the best location in the warehouse based on

product demand (fast changing) and Æ Slotting
product dimensions.
Optimize warehouse constantly Æ Rearrangement
(Housekeeping)

Assign the right workload (weight, volume,

number of items) to the warehouse worker, Æ Warehouse Order Creation
that can be picked together

Handling Resources (Fork lift, picker) in the

warehouse and assign only the work that can
Æ Resource Management
be done by this resource.
Visibility of stock on resources
Wave picking based on flexible criteria Æ Wave Management

Central monitoring of the warehouse activities Æ Warehouse Monitor

Drive Warehouse logistics by Handling Units Æ Cross delivery HU and delivery Split

© SAP AG 2005