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SAP Warehouse Management System

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 Integration
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

Warehouse Management Structure


The WM components are as below : Plant Organizational unit within Logistics, serving to subdivide an an enterprise according to production,procurement,maintenance and materials planning. Storage Location An organizational unit allowing differentiation between various stocks of a material in a plant. Warehouse Number Number that represents the complex,physical warehouse structure within WMS. Storage Type It is a sub division of a complex, physical Warehouse.

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 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


Interim Storage Areas (Types ) The Inventory Management component communicates with WM through 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, 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


Storage SectionLogical 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

Warehouse Management Structure Contd


Storage Bin Smallest 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 Structure It is a combination of letters and numbers for a Storage bin coordinate.E.g.RR-SS-LL. Quant Unique code within a warehouse number used to identify The material stock of a particular category in a storage bin.

Storage Bin Structure in WMS

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

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)

Strategies in WMS Contd


Picking Strategies The system searches during a pick for a suitable quant within a storage 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

Movement Types in WM
Definition The movement type is a classification key in the WMS that describes a 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

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 printing transfer orders Indicator for finding the storage type in the warehouse

Movement Types in WM Contd

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 in quality inspection. Stock in quality inspection has been valuated but does not count as unrestricted-use stock

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 category of "R". This stock is neither valuated nor is it considered to be unrestricted-use stock

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)

Stages In WM Contd
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
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
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 whereto (destination storage bin)?

Types of Transfer Order are Putaway,Picking etc.

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.


This updates the available quantities in the respective storage types.

Stages In WM Contd
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
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

Benefits of SAP-WMS
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 (contd ..)


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 the warehouse activities.

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 is directly in Storage Location Storage is at a broad level i.e Storage Location

No Bins exists.

Sectioning not possible.It can be done manually only

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 are blocked

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

Activity Monitor (LL01)


Unconfirmed transfer orders. Open transfer requirements.

Open posting change notices.


Negative stocks. Critical stocks for production supply. Critical Deliveries. Interim storage stock without movement.

Reporting in SAP WMS


Stocks ---Per Storage Bin/storage unit,For all materials,Per material-bin related/aggregated.

Storage bins Empty bins,Bin Status report, capacity load utilization,list of fixed storage bins.
Physical Inventory,Transfer order,production supply, 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

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