Grainger's SAP EWM Implementation at a Large, Highly Automated Distribution Center

James Kress - Business Systems Manager, Grainger M. Brian Carter - EWM Practice Manager, SAP America, Inc

Goals For Today

 Provide an overview of SAP’s Extended Warehouse Management Solution  Understand who Grainger is and how our story may be relevant to you.  Present opportunities to learn from our successes, our oversights and overall experiences with the implementation of EWM in large, complex distribution center environments.  Create connections that last beyond this event to enable us to help each other moving forward.

History of SAP Warehouse Management .

Extended Warehouse Management Overview .

Outbound Processing .

Material Flow System Architecture .

7 Billion IN E-COMMERCE SALES IN 2012 Access to 1 million + Products .400 team members United States Latin America Asia Named to 2013 FORTUNE 100 Best Companies to Work For® list 15th Largest e-retailer in US and Canada 2.About Grainger $9 billion in sales in 2012 Global Operations 2.0MILLION ACTIVE CUSTOMERS Canada Europe 715 branches 27 distribution centers 22.

Grainger Products .

Logistics Network .

Systems Landscape .

Systems Landscape EWM Instance 1 Performance ERP EWM Instance 2 EWM Instance 3 Maintenance Risk Mitigation 11 .

EWM to WCS Integration EWM & MFS EWM & Web Services/PI  Starting point for us with our first install  Overall MFS is very robust but was overkill for our design. Our strategy was to focus on the WMS and allow the Hardware Vendor to focus on the WCS  Utilized MFS for communications (telegrams)  For our Goods To Person (GTP) we migrated to Web Services for a better fit  Volume  Ability to bundle records into a single message  Recovery /Speed  Improved restart ability  Real-time (No delay) communications after outages .

Why SAP EWM?  Supports strategy for a stable and agile Warehouse Management System (WMS) platform  Ability to leverage strategic SAP partnership  Allows native integration with other SAP components and modules  Capability to take advantage of SAP’s continued product investment  Maintains long term hardware and software vendor relationships .

Project Approach  Blueprinted a US Distribution Center baseline template with “phased in” functionality  Completed the SAP EWM installation at a single pilot distribution center (Greenfield)  Went live with a SAP EWM solution that integrated with Goods To Person (Currently in ramp up)  In the process of Rolling out to the remaining network (Converting existing facilities) .

Grainger’s EWM Installations Patterson. CA Minooka. IL  Both Greenfield Locations  Conversion of existing facilities in process now .

EWM DC’s – Key Statistics Patterson DC  800.000.5 miles of conveyor  200.000 sq ft  5+ miles of conveyor  Good to Person integration  500.000 sq ft  4.000 items projected .000+ items Minooka DC  1.

Major Warehouse Processes Bin Module (Small Parts Storage)  Integrated with the conveyor to move items  Leveraged zone put away and picking Bin Carton  Utilized hundreds of thousands of bin locations  Used a mixture of fixed and non-fixed locations .

Major Warehouse Processes cont. Reach/Pallet  Reach – One item per location  Pallet – Multiple cartons per pallet Packing and Consolidation  Optimized work areas characteristics  Enabled the ability to dynamically add or reduce stations .

Shipping Label (Print and Apply)  Enhanced documentation handling  Enabled fully automated labeling Small Package Trailer Loading  Permitted multiple small parcel trailers to be shipped daily  Utilized automated conveyor extensions .Major Warehouse Processes cont.

Goods To Person .

Development Approach  No core modifications to base SAP EWM code  Utilized on-shore and off-shore developers  Conducted technical code review with SAP’s Max Attention for some of our more complex enhancements  Key EWM Enhancements for Grainger     Wave Management (Flowco) Streamlined Receiving Picking and Outputs Slotting .

Successes .Training .

Successes .Testing .

Successes .Testing  Integration Testing  Executed 100+ test scripts  Performed multiple tested cycles with all test scripts  Volume Performance  Executed using automated testing tool  Performed multiple cycles at 200% of peak volume  Performed with SAP SME’s monitoring (Max Attention)  Production Validation  Production test with live data  Testing Included:  Conveyor system  Printers/Output Management  RF Devices .

Oversights – Key Learning  We underestimated the transition of regular SAP ABAP developers learning the object oriented ABAP utilized by EWM  More emphasis should have been placed up front on the “In House” knowledge and understanding of the configuration options  Would have benefited from tighter controls over customization and scope changes post Blueprint  Lack of master data management caused delays in testing and resulted in additional rework .

Best Practices .

Connections .

Additional Resources .

ASUG.com . visit www. SESSION CODE: 3103 For ongoing education on this area of focus.LEARNING POINTS THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application.

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