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Warehouse and DC Management (Lean WM)

SAP Best Practices for Retail


Purpose, Benefits, and Key Process Steps

Purpose
This scope item describes the processing of merchandise in the distribution center with
inventory management done at the level of storage location Lean Warehouse
Management.

Benefits
Since storage procedures depend on space limitations, organization and the type of
merchandise being stored, this scope item should be seen as one example of an
implementation. However, this example can be easily adjusted to fit the warehouse of SAP
customer.

Key Process Steps


Goods Receipt Processing
Return Deliveries
Goods Issue Processing
Warehouse Physical Inventory
Tools and Workbenches

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Required SAP Applications and Company Roles

Required SAP Applications


SAP Enhancement Package 7 for SAP ERP 6.0

Company Roles
Retail Store Manager
Retail Master Data Manager
Retail Replenishment Planner
Retail Warehouse Specialist

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Process Flow Diagram
Warehouse and DC Management (Lean WM)
Retail Replenishment Planner

Create Purchase
Order
Retail Warehouse Specialist

Create Inbound Posting Rough Goods Receipt with


Delivery Goods Receipt Reference to Rough
Goods Receipt

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Process Flow Diagram
Warehouse and DC Management (Lean WM) Return Deliveries (Optional)
Retail Warehouse Specialist

Article document Create Return Output of article


for goods receipt Delivery document as goods
issue slip

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Process Flow Diagram
Warehouse and DC Management (Lean WM) Goods Issue Processing
Retail Warehouse Specialist

Create Outbound Create transfer Alternative 1:


Delivery order as picking Confirmation
document without differences

Alternative 2: Mass processing of


Confirmation with Post goods issue outbound deliveries
fifference

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Process Flow Diagram
Warehouse and DC Management (Lean WM) Warehouse Physical Inventory (Optional)
Retail Warehouse Specialist

Create physical Process physical Clearing


inventory document inventory differences

Analyse physical
inventory

Alternative 1: Alternative 2:
Manual creation of Creation of physical
physical inventory inventory via batch-
input

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Document Flow in the Warehouse

PO
Inb. Delivery
Rough GR

PUTAWAY
GOODS RECEIPT
TRANSFER ORDER

There is no stock
keeping in Lean-WM, FIXED
but just recording
of movements using STORAGE
transfer orders. BIN
Outb. Del.
PICKING
GOODS ISSUE
TRANSFER ORDER

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Inventory Management - IM vs. WM

Inventory Management on article


level

Fixed storage bin can be


Site maintained in the article master
Storage Location (text field)

No additional level of stock keeping


Whose number below IM.
Storage type
Warehouse number and type are
just used for the recording of
stock movements using the
transfer order, but no stock
posting is triggered when moving
merchandise at this level.

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Using Lean WM

When you implement Lean WM, inventory management takes place solely at
storage location level. The system does not update the stock data at storage bin
level using the quants like the Warehouse-Management-System (WMS) .

You use Lean WM solely for processing goods receipts and goods issues. Using
Lean WM, you process the warehouse movements in basically the same way as if
using the Warehouse Management System: you work with deliveries, and you
create transfer orders for these deliveries. These transfer orders serve as pick lists.

The use of transfer orders in Lean WM provides the following advantages:

You can reprint transfer orders at any time.


You can split transfer orders and thus distribute the workload better among
the staff in your warehouse.
You can use mass processing functions based on the transfer order (for
example wave picks).

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Mass Processing of Deliveries

Delivery Manual creation in the outbound delivery


Delivery monitor using selection by:
Delivery Shipping point
Picking date
Delivery Route, carrier ...
Delivery Free selection
Delivery
Delivery Automatic generation using selection by:
Picking date / time
Additional filter by several criteria
(e.g. route, shipping point, ship-to-party ...)

Considering capacity restrictions:


Group of Outbound Weight, volume
Deliveries Maximum items on the picking list
or Working time
Wave Pick ...

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Mass Processing of Deliveries

Delivery
Delivery
Delivery
Delivery
Delivery
Delivery
Collective Follow-On-Processing:
Delivery Create transfer order
Confirm transfer order
Post goods issue

Group of Outbound
Deliveries
or
Wave Pick

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Rough Workload Estimate

Planned
Goods Issue Calculation of
workload using: Estimated
Delivery Workload in:
Delivery Logistics Load Category
Unit of Measure Quantity
Delivery Whse no. / storage type Weight
Delivery Warehouse process Volume
Execution time
Delivery
Information on:
needed manpower
needed transport
capacity

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Processes Goods Receipt and Return Deliveries

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Processes Picking and Goods Issue

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Process Physical Inventory

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