MM WM Notes

7/28/2019 MM WM Notes

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SAP Warehouse Management System


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Warehouse Management has become very effectiveprocessing logistic requirement within a company.

It provides flexible ,automated support to assist you

in processing of all goods movements and

maintaining current stock inventories in yourcomplex warehousing.


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SAP R/3 has the following modules under Logistics functions.

Material Management (Inventory Management, MM/IM)

Production Planning (PP)

Quality Management (QM)

Sales & Distribution (SD) ,etc.

The above modules and Remote Data Processing (Radio

Frequency, RF) are the interfaces, for the working of SAP

Warehouse Management System.

SAP Integration


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Cross Functional Integration


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PURPOSE OF SAP WMS

Efficient support for all logistics processes

within the warehouse complex

Systematic and detailed tracking of Materials

Automated support pertaining to Goods Movement and

storage space at Bin Level

Flexibility in Operations

Integration with other Warehouse Activities


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Warehouse Structure in SAP -WMS


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Warehouse Management Structure

The WM components are as below :

PlantOrganizational unit within Logistics, serving to subdivide an

an enterprise according to production,procurement,maintenance and

materials planning.

Storage LocationAn organizational unit allowing differentiationbetween various stocks of a material in a plant.

Warehouse NumberNumber that represents the complex,physical

warehouse structure within WMS.

Storage TypeIt is a sub division of a complex, physical Warehouse.


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Warehouse Management Structure Contd

Storage Types

The examples of the Storage Types are as below:

Heady Duty Storage Type

Shelf Storage Type

Multiplex Open Storage Type

Bulk Storage Type

Interim Storage Types such as GR area,GI area etc.

Storage Type IndicatorThis is a key to control whether certainmaterials are placed into or removed from stock in certain storage

type.


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Interim Storage Areas (Types )

The Inventory Management component communicates with WMthrough interim storage types.

It is through the interim storage areas that the stock quantities remain

constant in both IM and WM. The total sum of the stock of all the WM

storage areas for a warehouse number, both physical and logical, shouldalways be identical to the sum of the stock in the IM storage location

The Interim Storage Types are as follows :

Goods Receipt Area

Goods Issue Area Interim Storage area for differences

Posting Change Area.


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Storage Section-

Logical or Physical subdivision of a storage type.Several storage bins with the same characteristics are grouped

together into one storage section.

Examples are

Fast Moving Section

Slow Moving Section

Total Section


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Storage BinSmallest addressable unit of space in a warehouse.

Since the address of a storage bin is frequently derived from a

Co-ordinate system,it is referred to as a coordinate,for example

02-02-03 refers to Row 02, Stack 02 and Level 03.

Bin StructureIt is a combination of letters and numbers for a

Storage bin coordinate.E.g.RR-SS-LL.

QuantUnique code within a warehouse number used to identify

The material stock of a particular category in a storage bin.


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Storage Bin Structure in WMS


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Strategies in WMS

The WMS system supports the strategies in order to receive proposals

From the SAP system

Regarding which storage bins the goods are to be putaway.

From which storage bins the goods are to be picked.

There are two basic strategies in the system.

Putaway Strategies

Picking Strategies


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Strategies in WMS Contd..

Putaway Strategies

The system searches for a suitable bin in a storage type using these

strategies.

Some of the strategies are

Fixed Bin Storage

Open Storage

Addition to existing stock

Empty storage bin

Pallets ( Storage Units)

Bulk Storage

No strategy (manual bin location assignment)


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Strategies in WMS Contd

Picking Strategies

The system searches during a pick for a suitable quant within astorage type using these strategies.

Some of the strategies are

FIFO (First In First Out)

Strict FIFO

LIFO ( Last In First Out)

Partial Quantity

Large / Small Quantities


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Movement Types in WM

Definition -

The movement type is a classification key in the WMS that describesa warehouse movement within a warehouse number.

Together with other indicators, a movement type that is used for

a goods movement in IM refers to a WM reference movement type.

The reference movement type provides the following information:

Movement type for WM

Stock category for the quants created by the movement

Indicator controlling the creation of transfer requirements and

posting change notice


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Movement Types in WM Contd

WM movement types provide the following information that is

needed to move stock into or out of the warehouse:

Interim storage area

Type of interim storage bin (predefined, dynamic, fixed)

Control indicators for processing, confirming, and printingtransfer orders

Indicator for finding the storage type in the warehouse


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Movement Types in WM Contd


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Stock Categories in WM

Stock category gives the status of the stock.

Stock in the warehouse is categorized in WM as follows:

Available Stock (Blank)

Unrestricted-use stock that is physically located in the warehouse,

valuated, and not subject to any kind of usage restrictions.You can

carry out all stock movements for this stock to include stock transfers,putaway and picking

Inspection Stock (Q)

This stock carries the stock category "Q" to indicate that it is inquality inspection. Stock in quality inspection has been valuated but

does not count as unrestricted-use stock


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Stock Categories in WM Contd

Blocked Stock (S)In IM it is possible to designate goods as blocked stock. These

materials are a company's own stock that should not be used. Stock

can be blocked, for example, because it has been damaged and for

various other reasons.

Blocked Stock Returns(R)

When delivered goods are returned by a customer, they are first

posted in the system to "blocked stock returns" with a stock categoryof "R". This stock is neither valuated nor is it considered to be

unrestricted-use stock


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FLOW CHARTFor Goods Receipts In WM


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Receipt-Binning Process Mapping

Scheduling Agreement/Purchase Order

Inbound Delivery

Material Receipt in Goods Receipt

Area (Interim Storage Area)

Quality Inspection

Transfer Order by

Transfer RequestMaterial put in

Destination Bin

Reject/ReworkNot ok

OK

Post change and

Confirm Transfer

Order for sameBar code mat id

Label printing

IM/MM

WM

(TR)


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Receipts

QC

Scrap

Return to vendor

QR

U/c Packing

Prod

Items For Kit Making

Vendors

OK

Reject

ScrapSale

OK

NO

Yes

Putaway to Storage Areas

FromPlant&R

WH


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Stages In WM are :

Transfer Requirement( Planning )

Transfer Order (Execution)

Confirmation (Completion)

Posting Change Notice ( Stock to Stock Posting)

Stages In WM


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Transfer Requirement

This is a document that serves to plan goods movements using the

WMS.

The transfer requirement contains all the necessary information on a

planned goods movement.

What should be moved?

Which quantity should be moved?

When should it be moved?The planning date is important for further automatic processing.

Stages In WM Contd


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Transfer Requirement

Which transfer type is the basis of the goods movement?

Each goods movement in the warehouse is classified by a transfer type

indicator. This key differentiates between:

A stock putaway

A stock pick

A stock transfer

Why is it to be moved?

Stages In WM Contd


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Transfer Order

Document used for executing goods movements with the help of WM.

A transfer order contains all the necessary information on a planned

goods movement.

What should be moved?

Which quantity should be moved?

From where (source storage bin) should the bin be moved, and wheret

(destination storage bin)?Types of Transfer Order are Putaway,Picking etc.

Stages In WM Contd


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Transfer Order Confirmation

The physical completion of the activity such as Putaway,removal or

stock transfer is done by TO confirmation.

This updates the available quantities in the respective storage types.

Stages In WM Contd


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Posting Change Notice

A posting change generally refers to a change in information about a

particular material. For most posting changes, such as changing a batch

number or releasing blocked stock, the goods themselves remain in the

same physical location.

Reasons for Making Posting Changes

Posting changes are made for several reasons. These include:

Releasing stock from inspection into available stock

Converting blocked stock to inspection stock

Stages In WM Contd


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Reasons for Making Posting Changes contd..

Designating available material as inspection stock

Changing a Material Number

Splitting available materials into two or more batches

Converting special stock, such as consignment stock or returned

stock, into the company's own stock

Changing ownership of stock in the same warehouse from one plant

to another

Stages In WM Contd


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Integration of WM with other SAP modules.

Inventory tracking at Bin level.

Optimization of resources.

FIFO can be followed for Put away/Picking using SU

management in WM

Accurate /Automated data processing.

Expeditious picking, clubbing deliveries for fast picking.

Warehouse Activity monitoring.

Benefits of SAP-WMS


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Standard Reporting.

Rough Work-load estimation.

Physical Inventory can be carried out in different ways.Business need not be stopped for this activity. This can be an

ongoing activity.

Improvement in operations and monitoring of thewarehouse activities.

Benefits (contd ..)


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Receipt-Binning Process Mapping

WM

Movement of Material via

Interim Storage Types

Storages possible based on

actual Infrastructure

(e.g..Heavy Duty, Pallets,Multiplex etc)

Clear identification of Bins in

respective Storage Types

Storage Sectioning(Fast/Slow moving) possible

IM

Movement of Material isdirectly in Storage Location

Storage is at a broad level

i.e Storage Location

No Bins exists.

Sectioning not possible.It canbe done manually only


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Process Comparison for WM and IM(contd)

WM

Material can be tracked at

Bin level

Automatic Bin Search

possible for Binning

Inventory is at Storage

Type/Bin level, hence

business can continue even

while Inventory is in Process,

since only selected Bins areblocked

IM

Material is tracked at Storage

Location level

Not possible in IM

Inventory is at Storage

Location level, which stops

movement of material while

Inventory is in process.Hence

business stops


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Unconfirmed transfer orders.

Open transfer requirements.

Open posting change notices.

Negative stocks.

Critical stocks for production supply.

Critical Deliveries.

Interim storage stock without movement.

Activity Monitor (LL01)


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Stocks ---Per Storage Bin/storage unit,For all materials,Per

material-bin related/aggregated.

Storage binsEmpty bins,Bin Status report,

capacity load utilization,list of fixed storage bins.

Physical Inventory,Transfer order,productionsupply, Posting change notice related.

Standard analysis .(MCL1/5/9/D/H)

SAP has provided various ready reports and outputs.

Warehouse stocks of material on hand

Reporting in SAPWMS


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THANK YOU

Documents

MM WM Notes