ASUG_IWM_Webcast_July_2010

SAP SCM Extended Warehouse Enhancement Pack 1

Richard Kirker SAP Labs, LLC July 22, 2010

Disclaimer

This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.

SAP AG 2009. All rights reserved. / Page 2

AGENDA1. Overview Extended Warehouse Management 2. 3. 4. New Functionality in SCM EHP1 Customer status Summary


Our Warehouse ExperienceSAP: 17 Years Warehouse ExperienceConnecting to relational databases Optimization strategies EDI Wireless data transfer First RFID eSOA Connecting Pick-by-light systems Browser Technology / Pick by voice

First software systems support warehouse operations 1975

Evolution of Warehouse Operations

1970

1980

1990

2000

2010

R/3 Release 2.0/2.1 Storage Units Parallel Proces sing

R/3 Release 3.0/3.1 Integration PP QM LIS

R/3 Release 4.0

R/3 Release 4.5

R/3 Release 4.6 Native RF / SAP Console HUM Packing

R/3 Release 4.7 EE1

R/3 Release 4.7 EE2

SCM EWM 5.0 Slotting Rearrange-ment Warehouse Orders Warehouse Monitor Internal Routing

SCM EWM 5.1 Labor Mgmt MFS WH Cockpit RFID Integr. Batch Mgmt Serial Nr Catch Weight ESA

SCM EWM 7.0

*SCM EWM 7.0 EhP 1

Rough Workload Decentral WM Estimate Prototype Picking of RF Waves Two Step picking Warehouse Monitor HR Integration

ERP EWM Task & Resource XD Mgmt YM VAS

Integration Graphical WH Layout to Transp Production Supply Processes Merchandise EnhanceDistrib. XD ments to Task Interleaving Claims & Returns BOBJ Integration

Enterprise Focus

Evolution of SAP Solutions

Network Focus*Planned

"...only a few vendors [like SAP] could provide a solution that is integrated from the end user perspective including a common user interface, security sign on, and master data definitionsSource: Forrester October 16, 2007 by Patrick Connaughton and Sharyn Leaver SAP AG 2009. All rights reserved. / Page 4

SAP Extended Warehouse ManagementSolution Overview

Inbound Processing Receive ASN data ASN Validation & Correction Transporation Unit Arrival Manage Transportation Unit Goods Receipt Putaway Bin determination Unload Transportation Unit Internal Routing Slotting Deconsolidation Putaway Returns / Reverse Logistics Goods Receipt - Optimization Claims & Returns SAP SCM-EWM 5.0. SAP SCM-EWM 5.1. SAP SCM-EWM 7.0. SAP SCM-EWM 7.1. Packaging Specification Supporting Functions Integration to GTS Integration to EH&S eSOA enablement Catch Weight SAP AG 2009. All rights reserved. / Page 5

Storage and Operations Rearrangement Inventory Counts / Record Accuracy Replenishment Freight Order Management Kit-to stock

Outbound Processing Order deployment Route Determination Wave Management Picking Bin Determination Warehouse Order Creation Work Assignment Picking Packing Staging Loading & Goods Issue Kit-to order Manual outbound deliveries Production Supply

Core Warehouse Operations and Inventory Management

Cross Processes

Transportation Cross Docking Picking fr. Inb./ Push Deployment Yard Management

Labour Management Opportunistic Cross Docking Merchandise Distr. X-Docking

Task Interleaving Execution Constraint Semi-System-Guided work

Integration to QIE RF support for all exec.processes Batch Management Serial Numbers Integration to Transp. Processes

RFID Enablement Material Flow System Warehouse Cockpit Graphical Warehouse Layout Integration to BOBJ (Dashboards)

AGENDA1. Overview Extended Warehouse Management 2. New Functionality in SCM EHP1Integration to Transportation Internal Logistics Network Analytics for EWM

3. 4.

Customer status Summary


ERP Transportation Management Integration ConceptIntegration The ERP Transportation Management integration in EWM is based on the IDoc interface already existing in SAP ERP. Apart from the new interface the new functionality is mainly integrated in existing EWM functionalities. According to this shipping and receiving objects like Transportation Units and Vehicles as well as Delivery Processing objects and functions are reused.

qRFCERP Delivery Document EWM Delivery Document

IDocShipment Document

IDoc

Transportation Units

System Requirement The EWM ERP Transportation Management (LE-TRA) integration is only running if an integrated SAP ERP 4.6c (or higher releases/EHPs) with SAP Extended Warehouse Management (EWM) 7.0 including SAP enhancement package 1 are in use. SAP AG 2009. All rights reserved. / Page 7

Preliminary Plan Subject to Change

ERP Transportation Management Integration FeaturesMain FeaturesThe main features of the integration of ERP Transportation Management (LE TRA) with EWM are: Receiving of a planning result in EWM about which outbound deliveries are to be shipped out when (times) how (e.g. route, carrier) by which shipment Distribution of the execution result from EWM to ERP on how a shipment has left the warehouse which outbound deliveries are shipped out when (times) how by which shipment Receiving of a planning result about which inbound deliveries are to be received when (times) how (e.g. carrier) by which shipment A smooth integration of transportation management planning results, in terms of a extended staging area and door determination and an extended consolidation group determination, into the internal warehouse processes.Preliminary Plan Subject to Change SAP AG 2009. All rights reserved. / Page 8

Transportation Planning Scenarios (1/3)Transportation Planning in LE-TRAERP EWM

Outbound Deliveryreplication locking

Outbound Delivery Request

Outbound Delivery Orderunlocking

Vehicle* ShipmentSHPMNT05

Picking Packing Staging

Transportation Unitsppf-Action triggered on goods issue posting /SCWM/SR_SEND_SHPMNT

LoadingOutbound Delivery Final Delivery

Goods Issue Posting for Outbound Delivery

Update

ShipmentUpdate * Using Vehicles is optional and depends on settings on Means-of-Transport [/SCWM/PM_MTR]

Preliminary Plan Subject to Change SAP AG 2009. All rights reserved. / Page 9

Transportation Planning Scenarios (2/3)Transportation Planning in EWMERP EWM

Outbound Deliveryreplication

Outbound Delivery Request

Outbound Delivery Order

Vehicle*

Picking Packing Staging

Transportation Unitsppf-Action triggered on goods issue posting /SCWM/SR_SEND_SHPMNT

LoadingOutbound Delivery Final Delivery

Goods Issue Posting for Outbound Delivery

update

ShipmentSHPMNT05 * Using Vehicles is optional and depends on settings on Means-of-Transport [/SCWM/PM_MTR]


Transportation Planning Scenarios (3/3)Transportation Planning for Inbound ShipmentsERP EWM

Inbound Delivery Inbound Deliveryreplication

Notification

locking

Inbound Deliveryunlocking

Vehicle* ShipmentSHPMNT05

UnloadingTransportation Units

Goods Receipt

update

Goods Receipt for Inbound Delivery


Transportation Planning - Processes

Outbound Process Planning in LE-TRAPlanning in ERP LE-TRA, Execution in EWM, Update of LE-TRA

1 2 3

VL01no: Creation of Outbound Delivery VT01n: Creation of Shipment /SCWM/PRDO: Check Outbound Delivery Order (ODO) and execute picking, packing and staging

4 5 6 7 8

/SCWM/CICO: Check-In Transportation Unit /SCWM/YMOVE: Move Transportation Unit to a door /SCWM/ADHU | /SCWM/LOAD | /SCWM/RFUI: Load Transportation Unit /SCWM/YMOVE: Move Transportation Unit back to checkpoint /SCWM/CICO: Post check-out for Transportation UnitPreliminary Plan Subject to Change



Outbound Process Planning in EWMPlanning in EWM, Execution in EWM, Update of LE-TRA

1 2 3 4 5 6 7 8

VL01no: Creation of Outbound Delivery /SCWM/PRDO: Check Outbound Delivery Order (ODO) in EWM /SCWM/TU: Create Transportation Unit (activity), assign ODO and post check-in /SCWM/PRDO: Execute picking, packing and staging /SCWM/YMOVE: Move Transportation Unit to a door /SCWM/ADHU | /SCWM/LOAD | /SCWM/RFUI: Load Transportation Unit /SCWM/YMOVE: Move Transportation Unit back to checkpoint /SCWM/CICO: Post check-out for Transportation Unit



Inbound ProcessPlanning in ERP LE-TRA, Execution in EWM

1 2 3 4 5 6 7

VL60: Creation of Inbound Delivery VT01n: Creation of Shipment /SCWM/CICO: Check-In Transportation Unit /SCWM/YMOVE: Move Transportation Unit to a door /SCWM/PRDI: Post Good Receipt for Inbound Delivery and execute unloading process /SCWM/YMOVE: Move Transportation Unit back to checkpoint and post check-out /SCWM/CICO: Post check-out for Transportation Unit


Enhanced Returns Handling Internal Logistics NetworksAdditional Item Discrepancy Process Wrong Items Return Process

STO rSTOCC1 CC1 CC2 CC2

Handle Additional Items in Stock Transfer Orders Intra-/Intercompany Case Subsequent STO creation initiated from EWM in receiving location

Return wrong items via Returns-STO Intra-/Intercompany Returns Initiate rSTO from EWM Perform Quality check in receiving location Financial clearance based on quality check results

Preliminary Plan Subject to Change SAP 2008 / Page 15 This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at rights reserved. Page SAP SAP AG 2009. All any time without /notice. 15 assumes no responsibility for errors or omissions in this document.

Returns Enhancements in the Distribution NetworkAdditional processes: additional Item process discrepancyProduct A in the delivery, but physically delivered is product B

Wrong item returnReturning of the wrong material via rSTO incl. inspection decision in the receiving EWM and financial handling in CRM billing


Returns Handling Enhancements

Visibility of Damage or loss of goods within an internal network Trigger follow up process from warehouse to ensure financial corrections Adjustments (pricing, quantity, returns, scrapping) enabled across company codes and countries Improved visibility of inventory across network locations and minimized time required for correction postings


Internal Logistics Networks (ILN)Claims and Returns in Internal Distribution Networks

Enhance existing EWM discrepancy and returns capabilities Cover exception processes via standardized procedures Document quality issues between internal locations

Create stock transparency and inventory correctness according to physical situation Improve material availability situation Keep Service Levels high Create customer supplier relationship between internal locations Improve shipment and delivery quality in the network Financial correctness between locations in case of intercompany business


Additional Item Discrepancy Process

Situation:Stock Transport Order for goods receipt notifies Product A in the system Physical goods receipt identifies product B on dock

Solution:Trigger Quantity Discrepancy Process for product A (100% loss) Process exists since SCM 5.0 Trigger Additional Item Process for product B New process

MotivationKeep stock situation in whole distribution network as transparent as possible Conduct inventory postings in a timely manner Correct financial situation in case of Intercompany Stock Transfer Order immediatelySTO

CC1

CC2


Additional Item Discrepancy Process INTRACOMPANY Process

STO Sending Warehouse

STO System (ERP)

STO Receiving Warehouse

Physical Receipt Product B

STO Product A

Additional Item Process

Quantity Discrepancy Process


Additional Item Discrepancy Process INTRACOMPANY ProcessSending Warehouse ERP System Receiving Warehouse


STO Product A



Inbound delivery Product B




STO Product A



Correction Delivery Outbound

STO Product B





STO Product A




STO Product B






STO Product A




STO Product B


Stock in Transfer Correction Delivery Outbound Goods Issue Inbound delivery Product B




STO Product A




STO Product B



Process inbound delivery Product B

Goods receipt Product B




STO Product A




STO Product B



Process inbound delivery Product B Synchronize

Solve Transfer Stock





STO Product A




STO Product B




Solve Transfer Stock



Additional Item Discrepancy Process INTERCOMPANY ProcessSituation:The logistics situation for an INTER company process is equal to the process described above for the INTRA company case In every INTER company Stock Transport Order there is a financial posting In an Service Parts Management Environment the financial posting for Intercompany STOs is handled via CRM billing and ERP Financials


Additional Item Discrepancy Process INTERCOMPANY ProcessCRM System Sending Warehouse ERP System Receiving Warehouse

Physical Receipt Product B Company Code 1 Company Code 2

STO Product A



Billing due list entry for Internal Invoice


STO Product B




Optional

Solve Transfer Stock Intercompany Payables FI / CO posting


Internal Invoice


Wrong Item Returns Process

Situation:The wrong item (e.g. an additional item) that has been received by a Stock Transport Order (STO) shall be moved back to the sending location The item is physically present at an inspection workstation in the warehouse in order to decide on the follow up process The receiver of the return will inspect the receipt

Solution:Trigger a wrong items return process from the EWM inspection workstation Send back the wrong item via a returns Stock Transport Order (rSTO) to the originally sending location

MotivationCreate a customer-to-supplier situation for the Returns Stock Transport Orders between internal locations for process quality improvement Track and document the return results between the partners in the Internal Logistics Network Archive financial correctness in case of intercompany stock transfers and their returns

rSTO

CC1 CC2


Wrong Item Returns Process (1/3) INTRACOMPANY ProcessSTO Sending Warehouse rSTO receiving ERP System STO Receiving Warehouse rSTO sending

Wrong Item in Quality Inspection

Create Inspection Result

Trigger follow up activity





Create rSTO






Create rSTO


Create Outbound Returns Delivery





Create rSTO


Create Outbound Returns Delivery

Process Outbound Delivery






Update rSTO

Goods Issue


Stock in Transfer



Create Inbound Returns Delivery

Update rSTO

Goods Issue


Stock in Transfer




Update rSTO

Goods Issue


Stock in Transfer

Process Inbound Returns Delivery




Update rSTO

Goods Issue


Stock in Transfer


Goods Receipt

Resolve Transfer Stock




Update rSTO

Goods Issue


Stock in Transfer


Goods Receipt

Resolve Transfer Stock

Q Inspection for Return

Q Inspection Document


Wrong Item Returns Process INTERCOMPANY ProcessSituation:In case the Returns Stock Transport Order (rSTO) is sending goods to a location/plant in a different company code it is required to trigger an financial flow (Intercompany Billing) In order to reflect the quality of the goods delivered via the rSTO the billing amount is based and influenced by the quality inspection result of the rSTO in the receiving warehouse The results of the quality inspection from EWM are reflected as condition records for reimbursement in the intercompany invoice calculation

Internal SAP AG 2009. All rights reserved. / Page 41Logistics Networks

Wrong Item Returns Process (3/3) INTERCOMPANY ProcessSTO Sending Warehouse rSTO receiving ERP System STO Receiving Warehouse rSTO sending


Only in case of INTER company return STO

CRM System

Billing Due List Entry





CRM System


Intercompany Billing





CRM System


Intercompany Billing optional

Intercompany Payables


Labor Management Executed WorkloadxCelsius Dashboard


Warehouse Performance Customer Order ItemsCrystal Reports


Warehouse PerformanceCrystal Reports


AGENDA1. Overview Extended Warehouse Management 2. 3. 4. New Functionality in EHP1 Customer status Summary


EWM Adoption Status: July, 2010EWM Live Customers and Sites


Select Active SCM EWM References July 2010CustomerBonita Cat Logistics Celesio AG Dansk Supermarket EvoBus GmbH F Hoffman La Roche Ferrero Ford Motor Company Humana Milchindustrie Maple Leaf Foods SFS Services AG Sony Electronics Schukat electonic WM Group Wollschlager Retail Automotive Wholesale Retail Automotive Life Science Consumer Products Automotive Consumer Products Consumer Products Metal High Tech Wholesale Logistics Wholesale

Industry

Market SegmentME LE LE LE LE LE LE LE LE LE LE LE ME ME LE

CountryGermany USA Germany Denmark Germany Switzerland Germany USA/ France Germany USA Switzerland USA Germany Germany Germany

Release5.1 7.0 5.1 5.1 7.0 7.0 7.0 5.1 7.0 7.0 5.1 5.1 5.1 5.1 5.1 Inconso

Partner

# of live Warehouses1 2 3 2 2 1 8 1 2 4 2 4 1 1 1

Cat, SAP Consulting and Deloitte IGZ Dansk SAP Consulting SAP Consulting Prismat ,Atos, Accenture, TSF and SAP SAP Consulting IGZ SAP Dematic and IGZ IBM and SAP Consulting Prismat Logiplus Prismat and SAP


AGENDA1. Overview EWM 2. 3. 4. New Functionality in EHP1 Customer status Summary


Resources

Online Help (http://help.sap.com) Select Overview of SAP Documentation SAP Business Suite SAP Supply Chain Management SAP Extended Warehouse Management SCM Portal (http://service.sap.com/scm *) Choose Warehousing Extended Warehouse Management in SAP SCM

Preliminary Plan subject to change SAP AG 2009. All rights reserved. / Page 52

Thank you!


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ASUG_IWM_Webcast_July_2010