Warehouse and DC Management (WM)
SAP Best Practices for Retail
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Purpose, Benefits, and Key Process Steps
Purpose This scenario describes the processing procedure for retail goods in a distribution center, using a
warehouse management system with inventory management at storage bin level. In this scenario, distribution center will refer to a warehouse that is supplied by vendors, that stores the merchandise and then prepares it to be shipped to customers or stores.
Benefits As warehouse processes depend greatly on the amount of space available, the organization of
the warehouse and the merchandise stored there, this scenario should be viewed simply as an example for implementation purposes. However, with very little effort, this example can be adapted to fit any customer-specific situation.
Key Process Steps Goods Receipt Processing Return Deliveries Internal Warehouse Replenishment Goods Issue Processing Warehouse Physical Inventory Tools and Workbenches
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Required SAP Applications and Company Roles
Required SAP Applications SAP SAP enhancement package 5 for SAP ERP 6.0
Company Roles Retail Warehouse Specialist
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Process Flow DiagramWarehouse and DC Management (WM)
Create Purchase Order for
Single Article
Re
tail
Wa
reh
ou
se
Sp
ec
iali
st
Create Purchase Order for
Generic Article
Post Rough Goods Receipt
Create Inbound Delivery
Appointment Planing
Receipt of incoming
Goods
Enter an Actual
Appointment
Alternative 2:Confirm with
difference
Alternative 1:Confirm without
difference
Log-on to the Terminal
Search for the Article
Document for Goods Receipt
Create a Return
Delivery
Issuing the Article
Document as Goods Issue / Receipt Slip
Alternative 1:Asynchronous
Warehouse Management
Put away Preparation
Create a Transfer Order
in the Warehouse
Goods Collection
Replenishment Planning
Create a Transfer
Order
Goods Receipt with Reference to the Rough
Goods Receipt
Putaway Processing
Create an Outbound Delivery
Confirm Transfer
Order
Ressource Planning with the RF Monitor
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Process Flow DiagramWarehouse and DC Management (WM)
Create Transfer Order as a
Picking Document
Re
tail
Wa
reh
ou
se
Sp
ec
iali
st
Alternative 1:Asynchronous
Warehouse Management
Log-on to the Terminal
Alternative 1:Confirm without
difference
Alternative 2:Confirm with
difference
Resource Planning in the Monitor for Mobile Data Entry
Monitor from Mobile Data
Entry Monitor
Creating Wave Picks
Alternative 1:Automatic Capacity-
Driven Creation of Wave Picks
Create Transfer Orders in Collective
Processing
Alternative 2:Creating Wave Picks Manually
Confirm Transfer Orders
in Collective Processing
Subsequent Delivery Split
Post Goods Issue
Create Deliveries
with Planned Picking Time
Goods Issue in Collective
Processing
Create a Physical Inventory Document
Manual EntryCarry Out Inventory Recount
Difference Statistics
Determine Inventory
Status
Post Differences in
Inventory Management
7.4.1.1Alternative
1:Manual
Creation
Post Differences in
Warehouse Management
Trigger Inventory Recount
Warehouse Activity Monitor
Outbound Delivery Monitor
Wave Pick Monitor
Rough Workload
Estimate After Goods Issue
Rough Workload Estimate After
Creation of Outbound Deliveries
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Document Flow in the Warehouse
GR AreaGR Area
Shipping Area
Shipping AreaGOODS ISSUEGOODS ISSUE
GOODS RECEIPTGOODS RECEIPT
WAREHOUSE
PUTAWAYTRANSFER ORDER
PUTAWAYTRANSFER ORDER
PICKINGTRANSFER ORDER
PICKINGTRANSFER ORDER
Outb. Del.Outb. Del.
POPO
Inb. DeliveryInb. Delivery
Rough GRRough GR
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Inventory Management - IM vs. WM
Storage Location
Storage bin
Site
Inventory Management on article level
Fixed storage bin can be maintained in the article master (text field)
Inventory Management on bin level
Putaway / Picking strategies are used
Storage bin is master data and can be determined by strategy (other
than fixed)
Whse numberStorage type
Storage section
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Warehouse Structure - Warehouse PC1
GI-Area
GR-Area
1
Gate 1
2
Gate 2
3
Gate 3
4
Gate 4
H01High Rack StorageRandom Storage
Section 001 Fast moving items
Section 002 Slow moving items
K01Picking storage typeFixed storage bins
Section 001 Fast moving items
Section 002 Slow moving items
H01 / B01 / F01
Storage for
Special Goods
(depending on
master data)
Section 001 Total Section
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Storage Bins - Warehouse PC1
10 Aisles, 10 Stacks, 10 LevelsLevel 01 - 04 Fast moving items
Level 05 - 10 Slow moving items
Bins 01-01-01 to 10-10-10
21 aisles, each with 50 binsBins 01-20 Fast moving, Bins 21-50 Slow moving
Aisles 01-07 Picking Area 001Aisles 08-14 Picking Area 002Aisles 15-21 Picking Area 003
Bins KOM-01-001 to KOM21-050
5 aisles,
25 bins each
All Storage bins in
Total Section
Bins 01-001 to 05-025 GI-Area
GR-Area
1
Gate 1
2
Gate 2
3
Gate 3
4
Gate 4
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Putaway – Post Goods Receipt
GI Document
Goods Receipt
Movement type Article Quantity Site Stor. location
Goods Receipt
Movement type Article Quantity Site Stor. location
Transfer Requirement
Quant
in the GR-Area of the Warehouse
WMWarehouse
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Putaway – Transfer Order
Transfer Requirement
Quant Putaway(physical movement)
Confirm Transfer Order
Confirm storage bin and quantity
Create Transfer Order
Automatical determination of storage bins
Transfer OrderTransfer Order
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Warehouse Data in the Article Master
Article Master Data Warehouse Management
Warehouse number (PC1) Storage type (K01) Picking storage type (K01)
Storage bin(KOM-04-003)
Maximum bin quantity (50) Minimum bin quantity (10) Rounding quantity
(blank) Control quantity
(blank) Replenishment qty.
(blank)
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Stock check – Triggering Replenishment
Reserve storage
Picking Zone
Stock in binsmaller than
minimum quantity?
Triggerreplenishment
Transfer request is generated
Create Transfer Order
ConfirmTransfer Order
Physical Goods Transport
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Picking – Delivery
Delivery is relevant for picking
Transfer order required
!!
Delivery Article Quantity SiteStor. Location
Delivery Article Quantity SiteStor. Location
DeliveryDelivery
Goods Issue
WMWarehouse
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Picking – Transfer Order
Quant
ConfirmTransfer Order
Confirm Picking Quantity
Picking(physical movement)
Quant
In the shipping
zone
Create Transfer Order
Automatical determination of storage bins
Picking ListPicking List
Transfer OrderTransfer Order
DeliveryDelivery
Picking Storage Type
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Picking – Goods Issue
Goods Issue
GoodsIssue
GoodsIssue
Delivery is relevant for picking
Transfer order required
!!
Delivery Article Quantity Site Stor. Location
Delivery Article Quantity Site Stor. Location
DeliveryDelivery
WMWarehouse
Picking is finished
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Mass Processing of Deliveries
Manual creation in the outbound delivery monitor using selection by:
Shipping point Picking date Route, carrier ... Free selection
Automatic generation using selection by: Picking date / time Additional filter by several criteria
(e.g. route, shipping point, ship-to-party ...)
Considering capacity restrictions: Weight, volume Maximum items on the picking list Working time ...
Group of Outbound Deliveries
orWave Pick
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
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Mass Processing of Deliveries
Collective Follow-On-Processing:
Create transfer order Confirm transfer order Post goods issue
Group of Outbound Deliveries
orWave Pick
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
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Warehouse Activity Monitor
List of all processes within a critical timeframe for execution:• Unconfirmed transfer orders• Open transfer requirements• Critical deliveries• ...
Direct follow-on-processingof the critical documents
List of all critical documents
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Rough Workload Estimate
Information on:
needed manpower needed transport capacity
Estimated Workload in:
Quantity Weight Volume Execution time
Calculation of workload using:
Logistics Load Category Unit of Measure Whse no. / storage type Warehouse process
Planned Goods Issue
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
DeliveryDelivery
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Mobile Data Entry in WM
R/3Application
User interface SAPGui
SAPConsole
Online processing
Mobile Data Entry:
Mobile terminals in a radio frequency network Robust hardware made for use in the warehouse Built-in barcode scanner Touch screen for easy use Simplified SAPGui (SAPConsole) as user interface
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Controlling the Warehouse via RF-Monitor
• transfer orders run into workload queues
• The warehouse employees are assigned these queues and thus a workload of TOs.
• The overload of a queue can be avoided by monitoring the displayed TOs/employee relation.
RF-Monitor of the warehouse manager
The system provides the warehouse employees with transfer orders from their queue continuously.
Touch screen of the warehouse employee
Transfer Orders
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Physical Inventory with WM
Continuous Physical Inventory
InventoryDifference
Block storage bins
Unblock storage bins
Create Physical InventoryDocument
Print / ReleaseCount List
Count, Weigh, Measure, Estimate
Record Inventory CountResults
ProcessDifference List
Activate Physical Inventory Document
Clear differences in Warehouse Management
Clear differences in Inventory Management
Initialize Recount
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Benefits of Continuous Physical Inventory
Better distribution of workload in the warehouse
The inventory can be carried out in periods with lower workload
Periodic Inventories are usually time consuming and labour intensive
Up-to-date information on the availability of the stock in the warehouse
The cost of the inventory can be reduced by planning it carefully
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Processes Goods Receipt and Return Deliveries
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Processes Replenishment and Goods Issue
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Process Variant Mass Processing of Deliveries
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Process Warehouse Physical Inventory
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