Warehouse and DC
Management (WM)
SAP Best Practices for Retail (India)
SAP Best Practices
Scenario Overview 1
Purpose and Benefits:
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 flows covered



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

Goods Receipt Processing
Return Deliveries
Internal Warehouse Replenishment
Goods Issue Processing
Warehouse Physical Inventory
Tools and Workbenches
Scenario Overview 2
SAP Applications Required:
Required

SAP EHP3 for SAP ERP 6.0
Company roles involved in process flows



Retail Warehouse Clerk
Retail Store Manager
Retail Warehouse Manager
Retail Warehouse Clerk
Process Flow Diagram
4.1.1.1
Create Purchase
Order for Single
Article
4.1.1.2
Create Purchase
Order for
Generic Article
4.1.2
Create Inbound
Delivery
4.1.3
Appointment
Planing
5.1.3.1
Issuing the
Article
Document as
Goods Issue /
Receipt Slip
5.1.2
Create a Return
Delivery
5.1.1
Search for the
Article
Document for
Goods Receipt
4.4.2.2
Log-on to the
Terminal
4.2
Receipt of
incoming
Goods
Alternative 1:
Confirm without
difference
5.1.3.2
Create a
Transfer Order
in the
Warehouse
Retail
Warehouse
Manager
4.2.2
Enter an
Actual
Appointment
4.4.1
Alternative 1:
Asynchronous
Warehouse
Management
4.3
Put away
Preparation
Alternative 2:
Confirm with
difference
6.1
Replenishment
Planning
6.2.1
Create a
Transfer
Order
6.2.2
Confirm
Transfer
Order
Retail Store
Manager
5.1.4
Goods
Collection
4.2.1
Post Rough
Goods
Receipt
7.1
Create an
Outbound
Delivery
4.2.3
Goods
Receipt with
Reference to
the Rough
Goods
Receipt
4.4.2.3
Putaway
Processing
4.4.2.1
Ressource
Planning with
the RF Monitor
Retail
Warehouse
Manager
Retail Warehouse Clerk
Process Flow Diagram
7.2.1
Create Transfer
Order as a
Picking
Document
7.2.2.1
Alternative 1:
Asynchronous
Warehouse
Management
7.4.5
Subsequent
Delivery Split
7.4.4
Confirm
Transfer Orders
in Collective
Processing
7.4.6
Goods Issue in
Collective
Processing
8.2.2
Trigger
Inventory
Recount
8.1
Create a
Physical
Inventory
Document
8.2.1
Manual Entry
Alternative 1:
Confirm without
difference
Alternative 2:
Confirm with
difference
7.4.3
Create Transfer
Orders in
Collective
Processing
7.2.2.2.1
Resource
Planning in the
Monitor for
Mobile Data
Entry
7.4.2.1
Alternative 1:
Automatic
Capacity-Driven
Creation of
Wave Picks
7.2.2.2.2
Log-on to the
Terminal
7.2.2.2.4
Monitor from
Mobile Data
Entry Monitor
7.3 Post Goods
Issue
7.4.2
Creating
Wave Picks
7.4.1.1
Alternative 1:
Manual
Creation
7.4.1
Create
Deliveries with
Planned
Picking Time
7.4.2.2
Alternative 2:
Creating Wave
Picks Manually
8.2.3
Carry Out
Inventory
Recount
9.4.2
Rough Workload
Estimate After
Goods Issue
8.3.1
Post Differences
in Warehouse
Management
9.4.1
Rough Workload
Estimate After
Creation of
Outbound
Deliveries
8.3.2
Post
Differences in
Inventory
Management
8.4.1
Difference
Statistics
8.4.2
Determine
Inventory
Status
9.3
Wave Pick
Monitor
9.2
Outbound
Delivery
Monitor
9.1
Warehouse
Activity
Monitor
Document Flow in the Warehouse
PO
Inb. Delivery
Rough GR
GOODS RECEIPT
GR Area
PUTAWAY
TRANSFER ORDER
WAREHOUSE
Outb. Del.
GOODS ISSUE
Shipping
Area
PICKING
TRANSFER ORDER
Inventory Management - IM vs. WM
Inventory Management on article
level
Site
Storage Location
Fixed storage bin can be maintained
in the article master (text field)
Inventory Management on bin level
Whse number
Storage type
Putaway / Picking strategies are
Storage section
used
Storage bin
Storage bin is master data and can
be determined by strategy (other
than fixed)
Warehouse Structure - Warehouse PC1
Gate 1 Gate 2
1
Section 002 Slow moving items
H01
High Rack Storage
Random Storage
2
GR-Area
Section 001 Fast moving items
Section 001
Total Section
H01 / B01 / F01
Storage for
Special Goods
(depending on
master data)
Section 002 Slow moving items
K01
Picking storage type
Fixed storage bins
Section 001 Fast moving items
GI-Area
3
4
Gate 3
Gate 4
Storage Bins - Warehouse PC1
Gate 1 Gate 2
1
2
10 Aisles, 10 Stacks, 10 Levels
Level 01 - 04 Fast moving items
Level 05 - 10 Slow moving items
Bins 01-01-01 to 10-10-10
5 aisles,
25 bins each
GR-Area
21 aisles, each with 50 bins
All Storage bins in
Total Section
Bins 01-20 Fast moving, Bins 21-50 Slow moving
Aisles 01-07 Picking Area 001
Aisles 08-14 Picking Area 002
Aisles 15-21 Picking Area 003
Bins KOM-01-001 to KOM21-050
Bins 01-001
to 05-025
GI-Area
3
4
Gate 3
Gate 4
Putaway – Post Goods Receipt
Goods Receipt
Movement type
 Article
 Quantity
 Site
 Stor. location

WM
Warehouse
Quant
in the GR-Area of
the Warehouse
Transfer Requirement
Putaway – Transfer Order
Transfer Requirement
Quant
Create
Transfer Order
Automatical
determination
of storage bins
Transfer Order
Confirm
Transfer Order
Confirm storage bin
and quantity
Warehouse Data in the Article Master
Article Master Data
Warehouse Management

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Warehouse number
Storage type
Picking storage type
(PC1)
(K01)
(K01)
Storage bin
Maximum bin quantity
Minimum bin quantity
Rounding quantity
Control quantity
Replenishment qty.
(KOM-04-003)
(50)
(10)
(blank)
(blank)
(blank)
Stock check – Triggering Replenishment
Stock in bin
smaller than
minimum quantity?
Trigger
replenishment
Reserve storage
Transfer request
is generated
Create
Transfer Order
Picking Zone
Physical Goods Transport
Confirm
Transfer Order
Picking – Delivery
Delivery
Delivery
 Article

Quantity
 Site
Stor. Location
Goods Issue
WM
Warehouse
!
Delivery is relevant for picking
! Transfer order required
Picking – Transfer Order
Delivery
Quant
Create
Transfer Order
Automatical
determination
of storage bins
Picking Storage Type
Picking List
Quant
Transfer Order
Confirm
Transfer Order
Confirm Picking Quantity
In the
shipping
zone
Picking – Goods Issue
Delivery
Delivery
 Article
Goods
Issue

Quantity
 Site
 Stor. Location
Goods Issue
WM
Warehouse
!
Delivery is relevant for picking
order required
Picking
is finished
! Transfer
Mass Processing of Deliveries
Manual creation in the outbound delivery monitor
using selection by:
Delivery
Delivery
Delivery
Delivery
Delivery




Shipping point
Picking date
Route, carrier ...
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
Deliveries
or
Wave Pick




Weight, volume
Maximum items on the picking list
Working time
...
Mass Processing of Deliveries
Delivery
Delivery
Delivery
Delivery
Delivery
Delivery
Delivery
Collective Follow-On-Processing:



Group of Outbound
Deliveries
or
Wave Pick
Create transfer order
Confirm transfer order
Post goods issue
Warehouse Activity Monitor
List of all processes within a critical
timeframe for execution:
• Unconfirmed transfer orders
• Open transfer requirements
• Critical deliveries
• ...
Direct
follow-on-processing
of the critical
documents
List of all
critical documents
Rough Workload Estimate
Planned
Goods Issue
Delivery
Delivery
Delivery
Delivery
Calculation of
workload using:




Estimated
Workload in:
Logistics Load Category
Unit of Measure
Whse no. / storage type
Warehouse process




Quantity
Weight
Volume
Execution time
Delivery
Information on:


needed manpower
needed transport
capacity
Mobile Data Entry in WM
Mobile Data Entry:
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

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
R/3
Application
Online processing
User interface
SAPGui
SAPConsole
Controlling the Warehouse via RF-Monitor
RF-Monitor of the warehouse manager
•
transfer orders run into workload
queues
•
The warehouse employees are
assigned the these queues and thus
a workload of TOs.
•
The overload of a queue can be
avoided by monitoring the displayed
TOs/employee relation.
Touch screen of the
warehouse employee
The system provides the warehouse
employees with transfer orders from their
queue continuously.
Physical Inventory with WM
Continuous Physical Inventory
Create Physical Inventory
Document
Activate Physical Inventory
Document
Block storage bins
Print / Release
Count List
Count, Weigh, Measure,
Estimate
Record Inventory Count
Results
Initialize Recount
Process
Difference List
Clear differences in
Warehouse Management
Unblock storage bins
Inventory
Difference
Clear differences in
Inventory Management
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