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SAP Extended Warehouse Management Operational Excellence in Warehousing Product Management, SAP EWM Public

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SAP Extended Warehouse Management (EWM)

Introduction

Solution Overview and Highlights

Solution Details

SAP EWM Implementation

SAP Development Focus & Strategy

Summary & Wrap-Up

Introduction


SAP Customers are Producing….

Of sport shoes worldwide

86% Of chocolate

worldwide

70% Of branded jeans

worldwide

50%

Cars per day

77.000 Tons of cheese

9 Mio. Of beer production worldwide

72%

...and all of this has to be transported & stored


SAP Customers are Investing in Warehousing for…

Increased efficiency & productivity

Greater visibility & decision support

Higher customer service

Reduced inventory & labor costs

Process automation and scaleability

Compliance and sustainability


History (1994–2014) A long history of warehouse management business, process, and IT expertise

1994 2007 2014

SAP R/3: warehouse management functionality (SAP R/3 2.0–4.7)

SAP Supply Chain Management (SAP SCM) SAP EWM application

….

Best-in-class warehouse management

(SAP EWM 7.0–7.02)

Advanced warehouse management

(SAP EWM 5.0– 5.1)

Distribution center logistics

Goods storage Logistics execution

…. (SAP EWM 9.1)


SAP EWM Positioning New generation warehouse process flexibility, performance and coverage

SAP SCM

Extended Warehouse Management

(Strategic investment solution / strong roadmap)

SAP ERP Warehouse

Management (Continuous

improvement / maintenance)

Migration Tools

Basic warehouse processes Simple warehouse operations Small & medium-sized

warehouses

Comprehensive warehouse mgmt. processes

Full process transparency Flexible automated processes High performance, high volume

warehouse operations Medium & large-sized warehouses


SAP Transportation & Logistics Coverage Today Processes, players and collaboration

Planning, orchestration, execution and tracking of the physical movement of goods

Shipper Consignee

Freight Forwarder

Carriers

Order Management

Transportation Planning

Warehouse Execution

Freight Execution & Monitoring

Freight Settlement

Tracking

Presenter

Presentation Notes

Even thought fairly high-level the message here is that there are definable roles for each functional block. Each one of these can have their own look & feel as well as screen customization to suppress irrelevant data for the process. That way a specific-user role can be much more productive in high-volume environments without sacrificing quality.


SAP Supply Chain Execution Mission and Strategy

Integrated Connected Best-in-class Verticalized

Freight Forwarder

Carriers

Shipper Consignee

The World's Best Supply Chain Execution Platform Mission

Capacity Procurement & Network Planning

Order Management

Warehouse Execution


Customer Billing & Freight Settlement

Tracking


SAP Supply Chain Execution Platform Strategy

SAP Event Management (Track & Trace)

SAP Transport. Management

SAP Extended Warehouse Mgmt.

Supply Chain Execution Platform

Supply Chain Execution Platform • Synchronized solution delivery • SCE Suite implementation in 1 instance • Out-of-the box SCE integration

SAP ERP • Order-to-Cash • Procure-to-Pay • Dangerous Goods Mgmt.

SAP GTS • Customs & compliance mgmt.


SAP Supply Chain Execution Platform

Holistic Track & Trace

Process & logistics execution milestone tracking

In-transit visibility of goods & assets

Event & exception management

Comprehensive Transportation Mgmt.

Multi-mode

Domestic, international, inbound & outbound transportation

Shipper & freight forwarder processes

Best-in-class Warehouse Mgmt.

All industries

Distribution centers & production warehouses

Simple & complex, high volume warehouse operations

SAP Event Management (Track & Trace)

SAP Transportation Management

SAP Extended Warehouse Mgmt.



SAP Supply Chain Execution Platform Highlights

Powerful decision support Deep process integration Best-in-class functionality

Flexibility & scaleability Rapid Deployment Solutions Native technology integration

Capacity Procurement & Network Planning

Order Management

Warehouse Execution


Customer Billing & Freight Settlement

Tracking


Analyst Validation

SAP is #1

Warehouse Management Systems: Worldwide Outlook 2011-2016." Steve Banker, Clint Reiser, ARC Report, August, 2012

So, is SAP EWM a rival to best of breeds? Yes they are.

“

“ SAP EWM: A Rival to Best of Breed Solutions? Steve Banker, ARC Brief, October 14, 2010, p. 5

#1 in the software WMS market

“SAP EWM has gained strong traction in the marketplace due to its robust functionality, interoperability with the SAP suite of solutions, and the large existing SAP installed base of potential customers.”

Solution Overview and Highlights


SAP Extended Warehouse Management Best-in-class warehouse managment

Storage & Operations

Inbound Processing

Outbound Processing

Best-in-class Warehouse Management All industries

Distribution centers & production warehouses

Simple & complex, high volume warehouse operations


SAP Extended Warehouse Management Overview A complete, integrated, best-in-class solution

Inbound Processing

Transportation Unit Processing Goods Receipt Management

& Optimization Inbound Quality Management Internal Routing

Outbound Processing

Outbound Planning (Route, Wave, Bin…) Picking Optimization,

Packing, Staging & Load Management


Physical Inventory Replenishment /

Rearrangement Kit-to-Stock Management

Resource & Labor Management

Cross Docking

Yard Management

Import / Export, Dangerous Goods & Compliance

Native Technologies (RF, RFID, Voice, Material Flow System)

Analytics & Reporting

SAP Extended Warehouse Management

TCI, TCO Reduction, HANA, Optimization Tools


Inbound Processing with SAP EWM

Inbound Processing

Inbound Processing Highlights • Advance Shipping Notification processing (Automatic/ manual creation)

• Automatic, rules-based process guidance

• Comprehensive quality management and returns management

• Leading-edge warehouse technology integration (PLCs (pallet/case conveyors, RF, RFID..)

• Integrated import and dangerous goods compliance (bonded warehouse; DG handling)

Goods Receipt

• ASN handling • Transportation

unit handling • Unloading • Goods receipt • Import customs

processing

Goods Preparation & Putaway Planning

Loading

Storage • Quality management • Returns handling • Deconsolidation • Repacking • Slotting / putaway bin

determination

• Cross-docking (opportunistic, transportation or merchandising)

• PLC communication via Material Flow System

• Dangerous goods handling & storage


Storage with SAP EWM

Storage Planning & Processing Highlights • Complete labor management solution (planning, execution, monitoring, HCM integration)

• Comprehensive slotting rules (condition technique), incl. rearrangement • Broad set of replenishment strategies • Value added service orders (Kit-to-stock, Kit-to-order, repackaging, labeling…)

Storage

Warehouse Planning

• Labor Management • Labor Demand Planning • Slotting • Replenishment • Kit-to-stock

Storage

• Put-away strategies • Rearrangement • Dangerous goods storage • Physical inventory • Value Added Services


Outbound Processing with SAP EWM

Outbound Processing Highlights • Wave, labor & cartonization optimization

• Full native technology support (mobile radio frequency, pick-by-voice, RFID)

• Material Flow System for direct PLC and conveyor system communication

• Transportation process integration

• Comprehensive warehouse performance analytics & operations monitoring

Wave Planning

• Work planning optimization

• Pick path • Picking bin

determination

Material Flow System Loading

Packing & Staging

• Material retrieval via direct integration to PLC

• Monitoring of MFS via central warehouse monitor

• Export compliance checking

• Transportation unit handling

• Yard management

• Cartonization • Kit-to-order

Picking

• Labor planning optimization

• Variety of Pick strategies

• Paper-, RF & voice-based picking

Outbound Processing


SAP Extended Warehouse Management Highlights

SAP EWM Solution Highlights • Powerful warehouse analytics and monitoring

• Advanced warehouse optimization

• High performance warehouse execution

• Built-in Material Flow System technology

• Deep integration with SAP Business Suite

• Comprehensive mobile offering for warehousing

• Industry-specific process support

• Implementation tools for lower TCI/TCO (Rapid Deployment Solutions and Migration Tools)

Solution Details

World-class analytics Built-in optimization High performance execution Industry-specific process support Deep SAP Business Suite integration


Cross-warehouse performance monitoring

Alert and exception monitoring

Drill-down and direct-action triggering

Comprehensive, central warehouse operation monitor

World-class Analytics with SAP EWM Comprehensive stock and process transparency

Supply chain manager Warehouse supervisor


Warehouse Performance Analytics

Key Performance Indicators • Outbound delivery items (value / # per worker)

• Service level analysis (% delivery errors / % on time)

• Warehouse capacity usage (% level / stock value)

Cross-Distribution Center Dashboard Labor Management Dashboard

Powerful, visual KPI dashboards for effective warehouse & labor performance analysis Analytics & Reporting

Key Performance Indicators • Warehouse activity area (volume / weight)

• Worker performance (average / per execution step)


Cross Distribution Center Performance Dashboard

Cross Distribution Center Performance Key KPI monitoring Service level analysis Warehouse capacity usage

overview Drill-down to details

Warehouse Performance Dashboard Warehouse performance overview at a glance with graphical display of top key performance indicators for DC comparison and decision support


Warehouse Operations Reporting & Monitoring

• Comprehensive, real-time warehouse operations overview • Activity and exception monitoring with alert management • Direct follow-up action / exception handling capabilities

Warehouse activity monitoring with direct activity triggering

Graphical view with SAP Cyrstal Reports

Multi-KPI / area monitoring cockpit with SAP Easy Graphics Framework

Full warehouse operations visibility for efficient performance monitoring & problem resolution Analytics & Reporting

Warehouse Management Monitor Warehouse Cockpit

Solution Details



Built-in Optimization in SAP EWM Wave management, labor management, and slotting

Slotting Advanced storage concept; ABC goods classification

Cartonization Automatic shipping-unit determination

Labor management Reduced labor costs; improved labor planning

Wave management Optimized work orders; efficient pick path


Slotting with SAP EWM


Inbound Processing

Outbound Processing

Slotting Optimal storage parameter determination

Planning Parameters

Slotting Determination • Storage section • Storage bin

properties • Put-away strategy

• Advanced, fully automatic slotting determination for efficient goods storage • Optimal storage determination for improved warehouse capacity utilization

• Storage bin determination

• Rearrangement • Replenishment

Supported Tasks

Product Demand • SAP APO forecast /

historical data

Product Data • Weight, volume, height…

Storage Requirements • # order items, storage qty.

Packaging data • Single item, pallet, cases,…


Cartonization Planning with SAP EWM


Inbound Processing

Outbound Processing

Product Data • Volume, Weight

Delivery Order Data • Customer • Carrier, Transport Mode • Quantity

Warehouse Data • Warehouse Activity Area

Planning Parameters

Algorithm Calculation • # of Packages

• Packaging Type

• Package Content

Supported Tasks

Picking Load Planning Packing Loading

Cartonization Planning Efficient packaging planning for improved load planning and lower material costs

• Manual / automatic cartonization planning with delivery order transfer • Early load / handling unit visibility for better labor & load planning • Advanced algorithm for packaging type and handling unit optimization


Advanced Wave Managment with SAP EWM Comprehensive wave planning, execution and monitoring tools


Inbound Processing

Outbound Processing

Wave Management Efficient workload planning & leveling

• Automatic, semi-automatic & manual wave planning & release • Template-driven wave creation (wave templates with predefined completion times)

• Delivery item grouping/split (according to route, pick area, packing lanes, product)

• Wave milestone status tracking and monitoring

Wave 2 • Pick 10:00 • Pack 11:00 • Stage 11:30 • Load 12:00

Wave 1 • Pick 11:00 • Load 12:00

Shipment • Departure 12:30

Delivery 100 • Item 10 • Item 20

Delivery 101 • Item 10 • Item 20 • Item 30 • Item 40


Labor Managment with SAP EWM

Labor Management Increased warehouse productivity with labor & resource planning, visibility and reporting

Workload Monitoring

Labor Planning /Simulation

Labor Analytics / Reporting

• Short & mid-term resource planning based on: − Planned workload

(ERP purchase orders & deliveries)

− Planned work duration (Engineered labor standards, historical data, route network / travel distances)

• Planned / executed task monitoring − Warehouse orders, indirect

labor, physical inventory…

• RF & desktop-based task confirmation

• Exceptions & alerts

• Task performance reporting − Employee & supervisor views − Direct & indirect labor − Planned & actual times

• Cross-warehouse / DC comparison

• Performance transfer to HCM − Compensation / incentives

• Accurate workload forecast for efficient capacity balancing • Real-time labor activity visibility for improved efficiency & timely problem

Labor Management


Labor Demand Planning

Interactive, graphical workload overview for shift planners with combined planned and forecast workload data

• Operational planning in real time

• Quick intuitive Setup

• Great user experience

Presenter

Presentation Notes

Desktop & Mobile User Interfaces Advanced Workload Calculation Actual planned workload Aggregated workload across delivery orders,�warehouse orders, & warehouse tasks Combined with forecasted workload HANAbased predictive analytics based on�historical workload data Flexible, Graphical Workload Display Time frame selection Graphical workload display per hour, day, or week for selected warehouses, activity areas & activities Storyline: Displayed is the Labor Demand planning view… Our shift manager… let me call him John… selects in the morning the date …and the view i.e. activities and activity areas …he is interested in…. The bar chart shows John for each hour today (… see the horizontal time axis…) how many warehouse workers he needs in the selected areas (...see the vertical bar heights…). Below the bar chart John gets further context information… The depicted pie chart tells John that the workload is calculated based on 60 % already released warehouse tasks and 40% deliveries in the system that are not yet released to the warehouse… this is just one example of context data available. Note: often an obstacle during workload planning is that the system doesn‘t have all orders yet received that have to be delivered today. Labor Demand Planning will support you perfectly to manage this obstacle by providing forecasting based on historical data. Not only you get a workload forecast for the current or next day. Labor Demand Planning derives also week workload patterns and workload trends for the next weeks. So you will be ready to plan your workforce for the current and see workforce demand trends for the coming weeks. Now you probably ask yourself: …Is it difficult to set up Labor Demand Planning? Not at all… Just few simple settings are needed. Especially there is no need to set up elaborate Engineered Labor Standards as Labor Demand Planning just uses historical data in the system to learn about durations warehouse tasks. Main message: Labor demand Planning…A very intuitive application helping John to efficiently plan his workers to activities.


Dock Appointment Scheduling

Collaborative, graphical planning cockpit for efficient handling of incoming & outgoing truck deliveries on warehouse doors

• Intuitive dock appointment planning

• Appointment monitoring & analysis

• Web Access for carriers

• Quick wizard-based setup

Presenter

Presentation Notes

Talking Points : Note: slide and this description is based on the SAP EWM 9.1 version of SAP Dock Appointment Scheduling Easy & intuitive dock appointment planning Ergonomic graphical user interfaces Graphical, interactive planning cockpit Role-specific views (warehouse & carrier) Easy navigation (drag & drop, mouse-over, color-coding,..) System supported appointment planning: Rules-based loading point determination (new in SAP EWM 9.1)�(based on product group) Automatic appointment length proposal (new in SAP EWM 9.1)�(based on number of pallets) Variable appointment length planning (new in SAP EWM 9.1)�(15 mins - X days) Appointment monitoring & analysis Separate planning & execution views (new in SAP EWM 9.1) Monitor current status of appointments at warehouse (planned, arrived, (un)loading in process, left warehouse) Monitor time of truck in warehouse yard – supports e.g. during demurrage discussions Web UI for transportation provider / carrier Not only the shipping office clerk enters appointment but the application provides also web access for a transportation provider / carrier to propose appointments Quick wizard based setup Low cost of implementation is achieved by providing a guided configuration with an implementation wizard


SAP EWM Shipping Cockpit

Shipping office clerk cockpit for outbound delivery planning, execution processing & monitoring

Planning View Shipment Execution & Monitoring

Presenter

Presentation Notes

Planning View Manual, drag & drop delivery planning Transportation unit / vehicle, staging area, �door & carrier assignment Wave creation Embedded contextual analytics Standard & flexible query definition�(i.e. TU weight & capacity utilization, open deliveries…) Shipment Execution & Monitoring Delivery status processing & monitoring Vehicle check-in/out, loading, dock/undock on door, goods issue (incl. DAS integration) Print documents (waybill & delivery notes) Invoice triggering (before goods issue) Embedded contextual analytics (i.e. Open / confirmed warehouse orders….) Let me first show you a screenshot of the planning view. The Planning View contains four major areas The search area for selecting the personal and current planning workload of the shipping office clerk The list of outbound delivery orders (ODO) on the left and its details on the bottom The list of transportation units (TUs) in the middle and its details on the bottom and The Side Panel with context information on the right e.g. as displayed on the screenshot the weight and volume capacity consumption of a transportation unit. Let me explain the shipping cockpit by telling the story of our imaginary shipping office clerk Sarah. Sarah uses the shipping cockpit during her daily work for planning, execution and monitoring. In the morning, Sarah begins with the Outbound Planning. She selects all due outbound delivery orders for the afternoon of the next day. She selects all ODOs of a route and asks the system for a TU proposal based on weight, volume or planned number of handling units (HUs) for the transport. The selected ODOs are automatically assigned to the new TUs. In case a carrier works regularly on the route, the system automatically proposes the carrier, the time slot and the door for the TU creation. In case there is no regular carrier for the route, Sarah searches for a carrier for the route (optional: sends a shipping note to all possible carriers by fax/email). She contacts the carrier and communicates the route as well as the total loading weight/volume. She agrees with the carrier on a time slot by checking the free doors on a time axis. She then enters the carrier, the door and the time slot in the TU … or as I will show two slides later creates a loading appointment using the integration of the shipping cockpit planning view with Dock Appointment Scheduling). The staging area is determined automatically from the door. Once she has assigned all due ODOs to TUs, either she triggers the creation of a wave for a TU, or waves are created automatically based on wave templates. If a last minute ODO appears in her cockpit, she assigns it manually to the TU created for the appropriate route. The last minute ODO is added automatically to the wave. Before the picking begins in the warehouse, the wave is released automatically. This is the last step of the Outbound Planning. With the wave release, the picking warehouse tasks and warehouse orders are created by the system and the picking can begin in the warehouse. In the afternoon, Sarah switches from the Outbound Planning view to the Outbound Execution view. Sarah checks the progress of the warehouse activities like picking, packing and staging in the warehouse for each TU in order to react to delays in a timely manner (for example, contact the warehouse manager or un-assign a delivery if it cannot be staged in time)…by the green and red traffic lights the status of the single activities is visualized… When a truck arrives, Sarah directs the truck driver to the planned door and sets the TU status to “arrival at door”. If necessary, she adds information to the TU, for example the tare weight of the truck or the contact information for the truck driver. When the loading is finished, either the loading end is set automatically with the loading of the last HU, or the truck driver parks the truck and comes back to Sarah, who then sets the loading end and departure from door. Sarah prints the delivery and transport documents and hand them over to the truck driver. In case of an export, she additionally triggers the printing of a pro forma invoice in ERP. When the truck driver leaves, Sarah posts the GI and sets the TU status to “departure from checkpoint”.

Solution Details



High Performance Execution with SAP EWM Leading-edge warehousing strategy, operations and technology support

High Volume Operations High performance & response times

Native Techologies Leading-edge technology integration

Cross Docking Direct transfer to goods issue

Internal Routing Automatic routing determination & control

Rearrangement Optimal product location storage

Value Added Services Customer-specific requirement support

Advanced Returns Mgmt. Efficient returns processing & follow-up action execution


High Volume / High Performance Operations Real-world simulation proves high performance, stability, and scalability

Day-in-the-life retail warehouse simulation • Retail-typical logistical volumes

− 10 picking waves for 42,000 delivery items

• Warehouse processes with retail-specific requirements − Inbound goods receipt (incl. MFS / PLC emulation) − Outbound goods issue − Flow-through & cross-docking

• ERP sales order transfer & wave creation in EWM (420,000 delivery items) 1 hr

• Picking wave release (42,000 per wave) 15 mins • Mobile response time 0.8 secs • Material Flow System response time 0.5 secs

Performance test results


Leading-edge Warehouse Technology Integration Increased accuracy, efficiency, and visibility

Material flow system (MFS) • Programmable logical controllers

(PLC)

• Pallet and case conveyors

Native technology integration • Mobile radio frequency (RF)

• Pick by voice

• RFID

Presenter

Presentation Notes

Warehouse Automation EWM provides via its functionality Material Flow System (MFS) a direct integration to the control unit of an automated warehouse. Resulting benefits are One Software One Monitoring One Technology Stack Lower TCO / TCI As the direct integration of EWM to the control units of automatic warehouses is one of the key differentiator for EWM we propose to support the message by a video of a customer using MFS


Comprehensive, Native Technology Support & Integration

Standard Mobile User Interfaces − Full set of mobile-based transactions

− Flexible configuration and personalization (UI sequence, layout, content, size, color, font)

− Native integration (Direct integration without 3rd party software / mapping tools)

Complete Warehouse Execution Support − Full RF/barcode execution support incl. EAN/GTIN

(Receiving, moving, physical inventory, picking, packing, loading..)

− Voice recognition support for picking

− RFID-supported receiving and goods issue

Native integration with the latest technolgies for efficient warehousing operations Native Technology


Pick-by-Voice with SAP EWM

Embedded in well established RF framework and Internet Transaction Server (ITS)

Widespread standards applied (XHTML+Voice)

Fast Pick-by-Voice Response Times

Non-disruptive error handling

Partnering with voice recognition providers (TopSystems, VoCollect)

Pick-by-Voice Seamless integrated optimized pick-by-voice transactions


Warehouse Automation with SAP EWM using MFS

Material Flow System Seamless, direct integration between SAP Extended Warehouse Mgmt. and programmable logic controllers (PLC)

• Flexible, well documented framework approach to connect PLCs • Complete routing & event modelling in SAP EWM • Comprehensive monitoring & control of Handling Unit events & exceptions in SAP EWM • Message & event control in sub-second response time via telegrams

EWM warehouse management monitor: Full overview of HUs, warehouse tasks and telegrams


Warehouse Management System Architecture Options SAP EWM with integrated Material Flow System (MFS)

SAP ERP

PLC PLC

3rd Party Material

Flow System

3rd Party Warehouse

Mgmt. System

SAP ERP

SAP EWM (including

Material Flow System)

Plant Connectivity

Order / Inventory Management

Warehouse Management

Material Flow Control

Programmable Logical Controller


Internal Routing with SAP EWM


Inbound Processing

Outbound Processing

Internal Routing Efficient, automatic routing determination for multi-step put-away, stock moves and picking

Goods Receipt Zone

• Complete process coverage - routing determination & step/process control • Layout-oriented routing (for equipment resources incl. material flow system conveyor segments)

• Process-oriented routing (based on sales / purchasing order, product, customer & vendor data)

High Rack

• Counting • Deconsolidation • Quality inspection • Packaging • Other Value Added Services

• Unloading

• Put-away

Workstation Internal routing


Advanced Returns Management with SAP EWM


Inbound Processing

Outbound Processing

Advanced Returns Management Comprehensive, end-to-end process support for efficient order processing & goods handling

Quality Inspection

Goods Receipt

Follow-up Actions Returns Mgmt.

Variants • Counter return • Customer returns order • Returns stock

transfer order

• Goods inspection • Inspection decision • Follow-up action

decision

in SAP EWM • Putaway (w/ batch change) • Scrap • Outbound delivery in SAP ERP • Internal/external repair • Return to vendor • Valuation posting / credit

memo request • Seemless integration with SAP ERP advanced returns management • End-to-end process support for comprehensive order and logistics activity support


Value Added Services in SAP EWM

Value-Added Services

• Kit-to-Order • Customer-specific

services (labels, price tags, accessories, docs.)

• Packaging

Value-Added Services

• Kit-to-Stock • Repacking

Loading Putaway


Inbound Processing

Outbound Processing

Value Added Services Flexible support of customer-specific requirements for high customer service

• Seemless integration with internal routing • Value added service time & material reporting

Inbound Process Outbound Process


Cross-Docking with SAP EWM


Inbound Processing

Outbound Processing

Cross-Docking Direct transfer from goods receipt to goods issue for reduced handling & storage costs

Goods Receipt Goods Issue

• Planned cross-docking − Transportation cross-docking (based on route determination from defined route network)

− Merchandise cross-docking (based on retail allocation for inbound delivery split across multiple retailers)

• Opportunistic cross-docking − Inbound-driven (automatic check at goods receipt for suitable outbound orders/delivery items)

− Outbound-driven (automatic check at wave release for suitable inbound orders / delivery items)

− Push deployment (automatic SAP Service Parts Planning (SPP) demand check for incoming parts)

− Pick from goods receipt (automatic SAP SPP customer back order check for needed parts in goods receipt)

Direct transfer to goods issue zone (without intermediate storage)


Rearrangement with SAP EWM


Inbound Processing

Outbound Processing

Rearrangement Optimal product location storage for better labor and picking efficiency

• Dynamic and planned rearrangement based on slotting optimization results (i.e. based on product demand data - promotions, seasonal plans, etc.)

• Flexible rearragement execution to fit capacity / workload plans

Rearrangement High & slow moving product relocation

"Golden Zone" for Fast Movers

Solution Details



Verticalized offering Examples of support for in-depth industry-specific processes in SAP EWM

Automotive

Production supply Kit to stock Kit to order

Retail

Merchandise distrib-tribution cross-docking

High-volume throughput

Best-before handling

Chemicals

Batch management Dangerous goods

Consumer products

Catch weight Batch management Best-before handling

Service parts

Slotting Kit to stock Kit to order

High tech

Serial numbers Production supply

Life sciences

Batch management Best-before

handling

Transportation and logistics

Transportation cross-docking

Dangerous goods Transport integration


Batch Management with SAP EWM

Batch Management Full tracking & traceability of batch managed products for all warehouse processes

EWM Batch Data • Batch number • Batch characteristics

- Production date, country of origin, expiration date, ingredient value

• Batch specifications • Batch status

EWM Batch-supported Processes • Goods receipt

(batch master creation, batch charact. recording)

• Putaway strategies (with batch compatibility & mixing rules)

• Movement control (via batch-based restrictions for replenishment, internal movement)

• Picking (via batch characteristics)

• Shipping (batch number recording)

•Full batch management or simple "documentary batch" support


Catch Weight Management with SAP EWM

Catch Weight Management Recording of logistical and weight unit of measures for material valuation and customer invoicing

• Stock kept in two independent units of measure − Logistic unit of measure for warehouse execution activities − Valuation unit of measure (weight ) for ERP material valuation & invoicing

• Flexible weight recording set-up to suit warehouse needs & defined processes

• Logistical UOM recording - Number of pieces - Number of cases

• Weight recording

Catch Weight -supported Processes • Goods receipt • Physical inventory • Shipping

Presenter

Presentation Notes

In food industry you have business scenerios where you need to keep track of two independent UoMs. Example: In a warehouse the handling of cheese wheels is done in pieces. So piece is the so-called logistical unit of measure (UoM). But on the other side. Cheese is sold by weight. Therefore the valuation of your inventory is done by weight. Unfortunately there is no unique rule to convert pieces of cheese wheels into weight. As consequence in the cheese business the requirement is to keep track of both UoMs. EWM is able to handle both logistics and valuation UoM on stock level, during process steps (picking, packing,...) and in monitoring. EWM helped Humana, a mid-size company in the food industry, producing milk products to solve the descibed catch weight scenario in their warehouses.


Serial Numbers in SAP EWM

Serial Number Recording in EWM • Recording for specific processes

- i.e. for shipping, returns management

• Recording at receiving and shipping - For serial number stock management at warehouse level

• Recording also with partial HU quantity moves - For serial number stock management at HU and/or bin level

Serial Numbers Flexible serial number management in warehouse processes for accurate location, & single unit life-cycle tracking

• Easy, flexible configuration for serial number tracking in any warehouse process • Serial number transfer to ERP to update delivery documents


Stock Specific Unit of Measure

Highlights Inbound Process Apply alternative UoM from ERP delivery Propose preferred UoM Change of UoM at different steps Putaway strategy via UoM/quantity classifier

Internal Process Physical Inventory Monitoring

Outbound Process Small/Large quantity picking (w/o packaging

specification) Send UoM information to ERP

Stock Specific Unit of Measure Handling of stock in different Unit of Measures (UoM) throughout warehouse processes

Pallet

Presenter

Presentation Notes

Stock-specific Unit of Measure is a unit of measure that can be used for a particular stock throughout the warehouse to reflect how the stock is physically handled more closely than the base unit of measure does. For example, for wine, a bottle might be the base unit of measure, but it could be more practical to handle it as a case of six bottles. Inbound Process Apply Alternative UoM from ERP Delivery Propose preferred AUoM Change/Enter of AUoM before GR during Expected Goods Receipt and Receiving of HUs during Deconsolidation/Inbound Packing during Putaway WT Confirmation Putaway strategy via AUoM/Quantity Classifier AUoM becomes attribute of the stock data QM sample in AUoM Warehouse Internal Processes Physical Inventory with AUoM Counting Monitoring Reconciliation Monitor stock with non-preferred AUoMs Correct AUoM directly via monitor node WCU interface supporting AUoM Outbound Process Pick non-preferred AUoM first Avoid picking partial AUoM quantities Small/Large quantity picking (w/o packaging specification) Pick-HU calculation based on AUoM UoM check during picking via EAN/GTIN Change of AUoM during picking confirmation Update AUoM in outbound delivery order item Split ODO item due to different AUoMs Send AUoM information to ERP Cartonization Planning is AUoM enabled


Production Integration with SAP EWM

Production Integration / Production Supply Integrated production and warehousing processes to support leading-edge production replenishment strategies and finished goods receipt

• Seamless, deep integration with ERP production planning & execution processes

• Modeling of production physical locations in EWM for efficient replenishment & accurate production stock visibility

Production Data • Production date • Production batch

Production Supply Strategies • Pick parts • Release order • Crate parts / Kanban

Component supply

Finished goods receipt

Presenter

Presentation Notes

Production supply to provide integration for manufacturing orders, whether production orders or process orders In order to use a product (component) for a manufacturing order, it has to be brought to the production supply area. When EWM is used, the products have to be picked in the warehouse and moved to the production supply area. There are several ways to provide components that are required for a manufacturing order: Pick parts/release order parts: The products that are needed as components for an individual order (pick parts) or for multiple orders (release order parts) have to be staged in the production supply area in time and in the required quantity. Crate parts/kanban: Products that are often used in the production area are provided independently from the existing orders. The warehouse is responsible for filling containers as requested by production. Kanban is a specialized way to handle crate parts. The integration of Extended Warehouse Management (EWM) with the component Production Planning and Control (PP) enables you to manage the storage, movement, and staging of components and finished products. With the integration of EWM into the processes of production planning, you benefit from powerful EWM functions that enable you to optimize the flexibility and transparency of your warehouse. You can use EWM in conjunction with the following PP application components: Production Orders (PP-SFC) Process Orders (PP-PI-POR) Repetitive Manufacturing (PP-REM) Kanban (PP-KAB) Modeling of production environment: You model in the production supply area (PSA) the places where to stage the components for production as storage bins.Therefore the SAP EWM system axactly knows where to put the components for production supply. Costumers running EWM in manufacturing warehouses are Kostal (midsize automobile supplier, headquater in germany) or Hilti More Information: ERP: http://help.sap.com/erp2005_ehp_04/helpdata/en/a3/19ab0daa6c4da8aaef07f35da4d548/content.htm EWM: http://help.sap.com/saphelp_ewm70/helpdata/en/25/2245dc92d247eeb7054b9bd58fc026/content.htm

Solution Details



Deep Integration with SAP Business Suite Comprehensive, smooth, and real-time process integration

• Order processing • Customer relationship management (CRM) • Back-order processing (global available to promise) • Advanced claims and returns management • Track and trace

• Comprehensive production supply support (process orders and crate parts)

• Dangerous goods handling • Storage and document printing

• Compliance with import and export regulations • Customs; bonded warehouse

• Advance shipping notification (ASN) • Inbound quality management

Sales and distribution

Procurement

SAP Manufacturing

SAP Environment, Health, and Safety Management

SAP Global Trade Services


SAP EWM Integration with SAP Env. Health & Saftey (EHS)

Hazardous Substance Handling & Dangerous Goods Mgmt Deep integration with SAP EHS for compliant handling and storage of hazardous products and dangerous goods in the warehouse

Hazardous Substance Handling • Put-away strategies and storage locations • Handling instructions - for print-out & radio frequency (RF) devices • Hazardous substance inventory list for fire departments

Dangerous Goods Management • Delivery note including dangerous goods data • Dangerous good-specific route and mode determination


SAP EWM Integration with SAP Global Trade Services

Import / Export Compliance & Customs Management Deep integration with SAP Global Trade Services (GTS) with automatic status checks & warehouse process control for regulatory compliance

Inbound • NCTS procedure support

(New Computerized Transit System)

- Inbound delivery status check ("Blocked" or "Released for customs")

- For transit, w/o customs clearance, &/or unpaid duty goods

Outbound

Storage

• Sanction party list screening (Consignee check)

• Embargo check (Country check)

• Export control (Product/material check)

• Bonded warehouse (Customs-blocked goods)


SAP TM & EWM Integration (via ERP) Overview

SAP Enterprise Resource Planning • Customer order • Delivery • Shipment



• Transportation Planning • Freight Order Mgmt. • Freight Settlement

• Picking, Packing, Staging • Loading • Goods Issue

Supported Integration Scenarios with Release 9.0 • Order and delivery-based planning and execution • Warehouse execution & freight settlement • Shipment cancellation

Presenter

Presentation Notes

One of SAPs strategic goals is to deliver the Supply Chain Execution platform … a real-time, seamless end-to-end integrated platform for planning, execution and monitoring of physical goods movements. A milestone in the strategy is the end-to-end integration of SAP Transportation Management with EWM using SAP ERP as middleware i.e. the transportation plan is communicated from SAP TM via the SAP ERP shipment document to SAP EWM. Vice versa the execution information is communicated back to SAP TM again using the SAP ERP shipment document.


Direct TM – EWM Integration




End-to-end, integrated transportation planning, warehouse execution, & freight settlement

via direct interface between SAP TM and SAP EWM

SAP Enterprise Resource Planning • Customer order • Delivery

Presenter

Presentation Notes

One of SAPs strategic goals is to deliver the Supply Chain Execution platform … a real-time, seamless end-to-end integrated platform for planning, execution and monitoring of physical goods movements. A major milestone in the strategy is the direct end-to-end integration of SAP Transportation Management with EWM. While in the last release 9.0 the integration between TM and EWM has been based on the ERP shipment document and therefore has only been possible via ERP acting as middleware now in release 9.1 having a direct communication channel between the TM Freight Order and the EWM Transportation Unit a tighter master data and configuration integration and simplified system landscape is achieved leading to a lower cost of implementation und due to reduced complexity also lower total cost of operation. Let me shortly explain you a typical integrated TM / EWM outbound process: Sales orders or deliveries are created in the ERP system. Based on sales orders or deliveries transportation management plans transportation. The transportation plan is reflected in the Freight Order… From the Freight Order a loading plan is transferred to the EWM system… In EWM based on the transferred loading plan a transportation unit with assigned corresponding deliveries is created. Picking, packing, staging and loading is executed in the warehouse in EWM. Once goods issue is posted… EWM transfers back to SAP TM what has been physically loaded on the TU. Deviations like planned goods that haven’t been loaded because they didn’t fit anymore on the transportation unit are recognized by TM as deviation and will go back into the transportation planning backlog of the transportation planner. Therefore a real business benefits is achieved by the direct TM / EWM integration as it provides transparency to the transportation planner in real-time about deviations from the loading plan and directly puts the re-planning work back in his personal work list… leading to efficiency gains. Also the invoice verifier benefits from the integration as EWM communicates back to TM what has physically been loaded to the TU and therefore what has been indeed transported when leaving the warehouse… leading to more accurate Freight settlements.

SAP EWM Implementation


Services and ecosystem around SAP EWM Strong service offering and ecosystem

Education

Classroom training

E-learning Certification

program

Ecosystem

SAP Community Network

User group for SAP EWM

Social networks for SAP EWM

SAP consulting practice

24x7 global support Quality assurance

services and SAP Safeguarding

Rapid-deployment solutions

Custom development

Partners

Global partners Expert logistics

partners Local partners Complementary

software products

Service and support

Presenter

Presentation Notes

Service & Support Reference visit / live call EWM Workshop / Demo EWM Business Assessment EWM Prototype / Proof of Concept EWM/ Sandbox on Demand EWM Deep Dive Workshop QA Services (Safeguarding, MaxAttention, etc.) EWM Prototype, Proof of concept Partner Ecosystem Bring examples of your local partners, Global Partner (IBM, Accenture, ...) Partners global, regional, special expertise complementary partner products (3D Graphics, Load Planning, Warehouse Layout Design, …) Education EWM Classroom Training Certification Ecosystem ASUG SAP Community Network: BPX, SDN, EWM Wiki, SCE Community, EWM Forum EWM Social Networks: LinkedIn


SAP EWM Documentation & Guides

Best Practice Full system documentation as well as best-practice installation, process & configuration guides for reduced implementation time, effort and cost

System Documentation / Help Full SAP EWM Documentation What's New - Release Notes Documents

System Administration and Maintenance Application Operations Guide

Installation and Upgrade Information Master Guide / Upgrade Master Guide Installation & Upgrade Notes

Configuration and Deployment Business Process Overview Presentations Business Process Documentation Configuration Guides


Warehouse Management with Preconfigured Processes A complete example warehouse

Configuration Guide & Process Descriptions SAP ERP and SAP EWM integration Sample warehouse structure Central master data Warehouse processes

Preconfigured, Best Practice Processes Inbound & outbound processes Periodic physical inventory & cycle counting Automatic replenishment Customer returns with quality inspection Scrapping based on expiration date

Basic EWM Processes Preconfigured Part of EWM Standard delivery: Complete ready-to-run sandbox warehouse implementation


EWM Rapid Deployment Solution A complete example warehouse

Configuration Guide & Process Descriptions SAP ERP and SAP EWM integration Sample warehouse structure Central master data Warehouse processes

Preconfigured, Best Practice Processes Inbound & outbound processes Periodic physical inventory & cycle counting Automatic replenishment Customer returns with quality inspection Scrapping based on expiration date

Predefined service offering Full implementation service Or lean service offering

PREDEFINED SERVICE

ENABLEMENT CONTENT

PRECONFIGURATION CONTENT

SOFTWARE

EWM RDS

EWM Rapid Deployment Solution Fixed scope, fixed cost solution and service for a complete ready-to-run warehouse implementation


SAP EWM Migration Tools SAP ERP WM > SAP EWM

Migration Tools Accelerated migration of data from WM in SAP ERP to SAP EWM

Migration Tools Master data migration − Products − Bins − Stock − Physical Inventory

Migration guide

SAP EWM

SAP ERP

Master data, inventory,…


Graphical Warehouse Layout

Warehouse Layout 2 dimensional graphical warehouse layout for warehouse master data set-up visualization and warehouse object details

Warehouse Layout Overview Visual display of master data set-up Warehouse & yard overview Color-coded storage types

(High rack, bins, handling unit, conveyor...)

Travel paths & distances Aerial warehouse & rack frontal views

(with zoom-in/out)

Drill-down Details Resource status / location Storage bin status (empty, blocked)

Warehouse layout - Aerial view

Rack - Front view with storage bin details


Overview SAP EWM Software Partners & Extension Areas

Warehouse Layout Planning & Optimization

Packing Optimization & 3D Visualization

Parcel Service Provider Integration Multi-client Warehousing Mobile Add-on Solutions

Load & Vehicle Space Optimization

SAP Extended

Warehouse Management

Web Services 3rd Party Software


High flexibility and adaptability Tailor SAP EWM to your specific needs

Personalization

Role-based menus User-specific reports Role-based user interfaces Multilingual support

Configuration

Warehouse layout Industry-specific warehouse

processes Strategies (picking, putaway,

and so on)

Customer-specific extension

Open code for reuse Documented interfaces Modification-free extensions Upgrade security or

upgrade-secure interfaces

Service-oriented architecture

Development of composite applications

Integration to legacy systems and third-party software


SAP ERP

SAP EWM

SCM Server

Solution architecture for SAP EWM Deployment options

SAP EWM

SAP ERP SAP ERP

SAP EWM add-on SAP EWM on SCM Server

SAP ERP

SAP EWM standalone

SAP ERP

SAP EWM standalone

SAP note 1606493 - SAP EWM Deployment Options Best Practices

Recommended option

Presenter

Presentation Notes

See SAP note 1606493: https://service.sap.com/sap/support/notes/1606493

https://service.sap.com/sap/support/notes/1606493

SAP Development Focus & Strategy


2011 Innovations for Warehousing Management

ERP WM > EWM Migration Tools • Master data migration • Migration guide • Rapid Deployment

Solution

SAP EWM

SAP ERP

Products, bins, stock, inventory,…

EWM Rapid Deployment Solution • Configuration guides • Sample warehouse

structure & master data • Preconfigured warehouse

processes • Predefined

implementation service

EWM Solution Round-offs • Returns & claims mgmt.

• Cartonization • Multiple GTIN/EAN • Material Flow System -

case conveyor support • Warehouse monitor using

Chrystal Reports

SAP EWM 7.02



EWM - TM Integration (via ERP) • Order or delivery-based

planning and execution • Warehouse execution &

transportation costs • Cancellation Scenario

Dock Appointment Scheduling • Dock planning & workload

scheduling • Carrier appointment

planning • Un/load execution

monitoring & control

EWM Solution Round-offs • Analytics dashboards:

Cross-distribution center; Top 15 KPIs

• Stock-specific unit of measure

• …

SAP EWM 9.0



Shipping Cockpit • Shipping planning • Shipping execution

monitoring

Labor Demand Planning • Advanced workload

analytics • Shift planning decision

support

Solution Round-offs • Direct EWM-TM integration • Dock Appointment

Scheduling • Retail enhancements • TCO / TCI reduction

SAP EWM 9.1

SAP TM SAP EWM

Presenter

Presentation Notes

Major focus of EWM release 9.1 has been Reducing total cost of implementation (TCI) and operation ( TCO) Improve User Experience and Leverage innovations by taking advantage of new SAP technologies like mobile SAPUI5 and the super fast in memory database technology SAP HANA. Highlights in terms of new functionalities are The Shipping Cockpit setting a new standard for user experience in EWM Dock Appointment Scheduling with major functional enhancements Labor Demand Planning a HANA based mobile application at the cutting edge of technology and user experience Let me begin with showing and explaining some details for the Shipping Cockpit…. ...The Shipping Cockpit supports the shipping office clerk in his daily activities such as building transportation units, assigning doors, managing the arrival, loading and departure of trucks, printing waybills and posting goods issue. The Shipping Cockpit is a user-centric User Interface designed especially for the shipping office clerk. One major aspect of the cockpit is the user experience for the shipping office clerk, for example reducing navigation by presenting all information needed for one action on one screen, offering personalization options and providing automatisms or mass data processing for tedious manual steps whenever possible… in order to meet the expectations on user experience as much as possible our development team went out to out customers, to end users and SAP EWM implementation partners in order to review concepts and mock ups. … the result is has been two dedicated user interfaces for a shipping office clerk that gives him all tools and visibility what he needs in order to complete his tasks super efficiently. One desktop based user interface for planning the outbound deliveries from the warehouse and one desktop based User Interface for monitoring the execution of the plan in the warehouse.

http://imagedirectory.wdf.sap.corp:6085/ImageLibrary/ImageDetailsView?imageId=b04c6841-c045-4478-b11f-027880ac94b0

Summary & Wrap-Up


The best are leading the way with SAP EWM

Near zero customer-complaint rate

Increased speed and significantly reduced picking times

34% ongoing labor cost reduction

20 warehouses live using the same template

http://www.dsg.dk/da/Pages/Forside.aspx


Overview SAP EWM Customer & Market Status Strong customer growth and implementation momentum

Facts and figures Sample customers

Live customers and live sites Customer geographical coverage

Coca-Cola Enterprises

0

100

200

300

400

500

600

Dez 07 Dez 08 Dez 09 Dez 10 Dez 11 Dez 12 Dez 13

Warehouses

Customers

600 Customers

15 Industries

24 Countries

http://www.wuerth.de/web/de/awkg/index.php

http://www.daimler.com/dccom/home/de

http://www.dsg.dk/da/Pages/Forside.aspx


Customer benefits of SAP EWM

Increased warehouse productivity

Greater transparency

Better service levels

Increased accuracy

Reduced costs

Flexibility and scalability


Differentiators and value of SAP EWM Comparison of SAP EWM with WM functions of SAP ERP

SAP’s strategic warehouse management solution

Strong investment and supply chain execution roadmap

Enhanced process flexibility

Full warehouse visibility

Latest technology support

Labor management

Better performance

Manage stock at storage location

Bin management

Placement strategies

Removal strategies

Pick logic – wave management

Replenishment

Standard mobile RF technology

Handling / storage unit management

Yard management

Enhanced configurable RF technology

Task and resource management

Material flow system

Value added services

Cross-docking

Dynamic cycle counting

Unloading of transport units

Deconsolidation

Slotting / rearrangement

Labor management

Multi client warehousing

Flexible process modelling

Functional area WM SAP EWM


Wrap-up

Best-in-class, integrated warehouse management solution

Comprehensive, deep warehouse management expertise

Strong and growing customer base

Strategic investment area for SAP

Integral part of platform road map for supply chain execution

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Thank you


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