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Warehouse Management has become very effective processing 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 your complex warehousing.
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.
Cross Functional Integration .
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 .
Warehouse Structure in SAP -WMS .
procurement. Storage Location – An organizational unit allowing differentiation between various stocks of a material in a plant. serving to subdivide an an enterprise according to production.Warehouse Management Structure The WM components are as below : Plant – Organizational unit within Logistics. Warehouse Number – Number that represents the complex. . physical Warehouse.maintenance and materials planning.physical warehouse structure within WMS. Storage Type – It is a sub division of a complex.
. Storage Type Indicator – This is a key to control whether certain materials are placed into or removed from stock in certain storage type.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.
. It is through the interim storage areas that the stock quantities remain constant in both IM and WM. both physical and logical. The total sum of the stock of all the WM storage areas for a warehouse number. should always 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.Warehouse Management Structure Contd… Interim Storage Areas (Types ) The Inventory Management component communicates with WM through interim storage types.
Several storage bins with the same characteristics are grouped together into one storage section. Examples are – Fast Moving Section Slow Moving Section Total Section .Warehouse Management Structure Contd… Storage SectionLogical or Physical subdivision of a storage type.
Quant – Unique code within a warehouse number used to identify The material stock of a particular category in a storage bin.it is referred to as a coordinate. Since the address of a storage bin is frequently derived from a Co-ordinate system.Warehouse Management Structure Contd… Storage Bin – Smallest addressable unit of space in a warehouse.RR-SS-LL.E.g. Stack 02 and Level 03. Bin Structure – It is a combination of letters and numbers for a Storage bin coordinate. .for example 02-02-03 refers to Row 02.
Storage Bin Structure in WMS .
Putaway Strategies Picking Strategies . • From which storage bins the goods are to be picked.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. There are two basic strategies in the system.
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) .. Putaway Strategies – The system searches for a suitable bin in a storage type using these strategies.Strategies in WMS Contd.
Some of the strategies are FIFO (First In First Out) Strict FIFO LIFO ( Last In First Out) Partial Quantity Large / Small Quantities .Strategies in WMS Contd… Picking Strategies – The system searches during a pick for a suitable quant within a storage type using these strategies.
Together with other indicators. a movement type that is used for a goods movement in IM refers to a WM reference movement type.Movement Types in WM Definition The movement type is a classification key in the WMS that describes a warehouse movement within a warehouse number. 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 .
confirming.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. fixed) •Control indicators for processing. and printing transfer orders •Indicator for finding the storage type in the warehouse . dynamic.
Movement Types in WM Contd… .
and not subject to any kind of usage restrictions. putaway and picking Inspection Stock (Q) This stock carries the stock category "Q" to indicate that it is in quality inspection. valuated.You can carry out all stock movements for this stock to include stock transfers. Stock in quality inspection has been valuated but does not count as unrestricted-use stock .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.
Blocked Stock Returns (R) When delivered goods are returned by a customer. for example.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. because it has been damaged and for various other reasons. they are first posted in the system to "blocked stock returns" with a stock category of "R". This stock is neither valuated nor is it considered to be unrestricted-use stock . Stock can be blocked.
FLOW CHART For Goods Receipts In WM .
Receipt-Binning Process Mapping Scheduling Agreement/Purchase Order IM/MM Inbound Delivery (TR) OK Material Receipt in Goods Receipt Area (Interim Storage Area) Quality Inspection WM Post change and Confirm Transfer Order for same Not ok Reject/Rework Material put in Destination Bin Bar code mat id Label printing Transfer Order by Transfer Request .
Receipts Vendors OK QC Reject Scrap Scrap Sale Return to vendor QR From Plant & RWH Prod Items Yes For Kit Making OK NO U/c Packing Putaway to Storage Areas .
Stages In WM Stages In WM are : Transfer Requirement ( Planning ) Transfer Order (Execution) Confirmation (Completion) Posting Change Notice ( Stock to Stock Posting) .
The transfer requirement contains all the necessary information on a planned goods movement.Stages In WM Contd… Transfer Requirement – This is a document that serves to plan goods movements using the WMS. . •What should be moved? •Which quantity should be moved? •When should it be moved? The planning date is important for further automatic processing.
This key differentiates between: •A stock putaway •A stock pick •A stock transfer •Why is it to be moved? .Stages In WM Contd… 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.
Picking etc. . A transfer order contains all the necessary information on a planned goods movement. and whereto (destination storage bin)? Types of Transfer Order are Putaway.Stages In WM Contd… Transfer Order – Document used for executing goods movements with the help of WM. •What should be moved? •Which quantity should be moved? •From where (source storage bin) should the bin be moved.
. This updates the available quantities in the respective storage types.Stages In WM Contd… Transfer Order Confirmation – • The physical completion of the activity such as Putaway.removal or stock transfer is done by TO confirmation.
For most posting changes. such as changing a batch number or releasing blocked stock. the goods themselves remain in the same physical location.Stages In WM Contd… Posting Change Notice A posting change generally refers to a change in information about a particular material. These include: •Releasing stock from inspection into available stock •Converting blocked stock to inspection stock . Reasons for Making Posting Changes Posting changes are made for several reasons.
. such as consignment stock or returned stock.Stages In WM Contd… Reasons for Making Posting Changes contd. into the company's own stock •Changing ownership of stock in the same warehouse from one plant to another . • Designating available material as inspection stock •Changing a Material Number •Splitting available materials into two or more batches •Converting special stock.
Optimization of resources. FIFO can be followed for Put away/Picking using SU management in WM Accurate /Automated data processing. clubbing deliveries for fast picking.Benefits of SAP-WMS Integration of WM with other SAP modules. . Inventory tracking at ―Bin‖ level. Expeditious picking. Warehouse Activity monitoring.
Improvement in operations and monitoring of the warehouse activities. Rough Work-load estimation.. This can be an ongoing activity.) Standard Reporting. Physical Inventory can be carried out in different ways. .Benefits (contd . Business need not be stopped for this activity.
• Sectioning not possible. Pallets.e Storage Location • No Bins exists.It can be done manually only ..Receipt-Binning Process Mapping WM • Movement of Material via Interim Storage Types • Storages possible based on actual Infrastructure (e.Heavy Duty.g. Multiplex etc) • Clear identification of Bins in respective Storage Types • Storage Sectioning (Fast/Slow moving) possible IM • Movement of Material is directly in Storage Location • Storage is at a broad level i.
Hence business stops . since only selected Bins are blocked IM • Material is tracked at Storage Location level • Not possible in IM • Inventory is at Storage Location level. hence business can continue even while Inventory is in Process.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. which stops movement of material while Inventory is in process.
. Open transfer requirements.Activity Monitor (LL01) Unconfirmed transfer orders. Interim storage stock without movement. Critical Deliveries. Critical stocks for production supply. Open posting change notices. Negative stocks.
For all materials.Per material-bin related/aggregated. Storage bins —Empty bins.(MCL1/5/9/D/H) SAP has provided various ready reports and outputs. Warehouse stocks of material on hand .Transfer order.Reporting in SAP – WMS Stocks ---Per Storage Bin/storage unit.list of fixed storage bins. Physical Inventory.Bin Status report. capacity load utilization. Standard analysis . Posting change notice related.production supply.
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