Inventory and Warehouse Management

Main Process

 

Processes rapid material turnover in a distribution center or warehouse where the goods are brought from the goods receipt directly to goods issue without being stored.

Planned Cross Docking

Matches inbound deliveries to outbound deliveries:

a) One-step Cross Docking: Transfers goods with one transfer order from inbound to outbound.

b) Two-step Cross Docking: Transfers goods from inbound to an interim storage type (for example, staging area, repacking zone) and creates a subsequent transfer order from the interim storage type with destination outbound deliveries.

Opportunistic (Unplanned) Cross Docking

Detects opportunities for cross docking in a dynamic environment. One-step Cross Docking: Transfers goods with one transfer order from inbound to outbound.

Processes warehouse-internal movements and storage of materials.

Inventory Management

Manages the stocks of a company in quantities and values. It is integrated with supply chain accounting and is responsible for goods receipts and goods issues, and for managing different stock categories (available, blocked stock, in quality assurance, and so on) and special stocks (including consignment stock, project stock, and so on). Enables a summarized visibility of stocks in the supply chain.

Strategies

SAP Warehouse Management allows you to manage your material flow, using advanced putaway and picking strategies. In the standard system, these strategies for putaway include random putaway (next empty bin), bulk storage, fixed bin, or addition to stock. The picking strategies include standard strategies first-in first-out (FIFO), last-in first-out (LIFO), picking by shelf life expiration date (SLED), or partial quantities first. For customer-specific strategies, solutions can be self-defined in user exits.

Production Supply

The material supply of storage bins in production can be handled with SAP Warehouse Management. Picking for work orders is supported by advanced strategies and combined with handling unit management. It is possible to pack for a specific work order.

Task & Resource Management

Controls the tasks in the warehouse and optimizes the sequence in which the tasks are executed. Ensures that, in the warehouse, the right task is processed by the right resource at the right time. Helps minimize the routes in the warehouse. Is easy-to-handle and seamlessly integrates into the SAP Logistics Execution System.

Radio Frequency/Barcoding

SAP provides direct radio frequency (RF), allowing the use of mobile RF terminals and handhelds with scanning devices. This enables immediate and error-free data transfer -- setting a high standard of quality for warehouse transactions. The character-based or graphical terminals and handhelds receive data directly from the SAP system without using a middleware product and transfer results immediately to wherever they are needed. The configurable barcode setup allows you to use barcode standards (for example, EAN128 or SSCC) as well as any defined barcode systems you define yourself.

Handling Unit Management

You can use handling unit management (HUM) to reflect packing-based logistics structures in SAP ERP. In SAP Warehouse Management, you can use handling units to process warehouse movements, such as putaway, picking, or stock transfers. Furthermore, handling units can be created in the warehouse, labeled, and picked for existing deliveries. HUM allows you to uniquely identify packages, for example, pallets, in the warehouse and throughout the supply chain. This includes EAN128 and SSCC18 labeling. The handling units can be nested and packed with different materials or batches.

Storage and Stock Management  

1. Serial Numbers: Handling unit management makes serial numbers known in the warehouse.
2. Batch Management: Batch management is integrated into all SAP WM processes. This includes the handling of batches and batch determination for delivery picking, for production supply, or in internal warehouse processes. Also, active ingredient processing is integrated into the batch determination process in SAP WM.
3. Hazardous Materials: Although many materials that are classified as dangerous can be placed into storage along with other goods, some require special handling and placement into specially designed storage facilities. Some examples of these materials include explosives, petroleum fuels and oil, poisons, corrosive liquids, and radioactive materials. SAP WM is designed to manage the handling and storage of hazardous materials.

Quality Management Integration

SAP Warehouse Management is integrated with quality management (QM), thus allowing warehouse administrators to manage and track inspection lots that are stored in the warehouse.

Visibility

1. Warehouse Activity Monitor: The warehouse activity monitor helps a manager oversee, plan, and optimize work processes in the warehouse. It provides a tool to notify those responsible if there are delays or errors in the overall system. The warehouse activity monitor also helps to identify and correct warehousing problems or critical processes soon after they occur.

• Radio Frequency (RF) Monitor: The monitor for RF activities lets you display the current workload and resource capacity in the entire warehouse. A graphical tool that gives an overview of the current workload status in the groups that workers are assigned to, it enables a warehouse manager to easily access and influence the work process by redistributing tasks between different work groups and prioritizing the tasks within a group.
• Task Monitor (available with task and resource management): The task monitor allows you to manage and control the resources and tasks in a site. It enables a manager to influence the allocation of tasks to different resources and to perform various operations (tasks and resources, for example). Compared to the RF monitor, the task monitor drills down to a more detailed view of tasks (such as picking, packing, and weighing) that can be generated from different SAP enterprise documents.

Decentralized Warehouse

Customers can decide to use SAP WM as a stand-alone system, connected with a central ERP system. This interface is also available as a standard interface for the connection of certified partner WM systems. The system distributes master data and inbound/outbound deliveries automatically. All quantity-related processes, physical movements, and picking/packing operations are handled in the decentralized WMS. All financial- based functions (such as valuation, credit limit check, and ATP) are handled in the central system. An enhancement of the system communication covers the changeability of deliveries triggered centrally.

Automated Workload Release

Supports the control and timing of activities in the warehouse, based on progress control and the time it takes to pick, pack, and move the demanded goods to the outbound area. Activities of several picking groups can be monitored through the physical goods movement processes.

Manages physical inventory for your organization's own stocks or for special stocks in your warehouse. The following physical inventory procedures are supported:

1. Periodic inventory
2. Continuous inventory
3. Cycle counting
4. Inventory sampling

Physical inventories for legal reasons, for balance sheet purposes, or for internal controlling reasons are also supported.

Planning Phase of Physical Inventory

The physical inventory process can plan which material has to be counted at which storage location on which date. Stocks can be blocked for goods movements before the beginning of counting, measuring, and weighing.

Counting Phase of Physical Inventory

RF transactions support stock counting. After the results have been entered, you can monitor the differences and trigger a recount if necessary. If you post quantity differences for your locations, an update of the material valuation and financial accounting is triggered automatically.

Monitoring of the Physical Inventory Activities

Detailed functions for monitoring the completeness of the physical inventory, the status of open and completed physical inventory activities, and the results of historical physical inventory activities are available. You can monitor the activities on material or location level.