Warehouse and DC Management (WM)
SAP Best Practices for Retail
Purpose, Benefits, and Key Process Steps
Purpose
 This scope item 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 scope
item, 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 scope item 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 Steps






Goods Receipt Processing
Return Deliveries
Internal Warehouse Replenishment
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 Warehouse Specialist
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Process Flow Diagram
Retail Warehouse Specialist
Warehouse and DC Management (WM)
Create
Purchase
Order for
Single Article
Create
Purchase
Order for
Generic Article
Create Inbound
Delivery
Appointmen
t Planing
Receipt of
incoming
Goods
Post Rough
Goods
Receipt
Enter an
Actual
Appointmen
t
Issuing the
Article
Document as
Goods Issue /
Receipt Slip
Create a
Return
Delivery
Search for the
Article
Document for
Goods Receipt
Log-on to
the Terminal
Alternative 1:
Confirm
without
difference
Alternative 1:
Asynchronous
Warehouse
Management
Put away
Preparation
Create a
Transfer Order
in the
Warehouse
Goods
Collection
Alternative 2:
Confirm with
difference
Replenishment
Planning
Create a
Transfer
Order
Confirm
Transfer
Order
Putaway
Processing
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Ressource
Planning with
the RF Monitor
Create an
Outbound
Delivery
Goods
Receipt with
Reference
to the
Rough
Goods
Receipt
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Process Flow Diagram
Warehouse and DC Management (WM)
Create Transfer
Order as a
Picking
Document
Alternative 1:
Confirm
without
difference
Alternative 1:
Asynchronous
Warehouse
Management
Retail Warehouse Specialist
Alternative 2:
Confirm with
difference
Subsequent
Delivery Split
Confirm
Transfer Orders
in Collective
Processing
Goods Issue in
Collective
Processing
Trigger
Inventory
Recount
Create a
Physical
Inventory
Document
Manual Entry
Create Transfer
Orders in
Collective
Processing
Resource
Planning in
the Monitor
for Mobile
Data Entry
Alternative 1:
Automatic
CapacityDriven Creation
of Wave Picks
Log-on to
the Terminal
Monitor from
Mobile Data
Entry
Monitor
Post Goods
Issue
Creating
Wave Picks
7.4.1.1
Alternative
1:
Manual
Creation
Create
Deliveries
with Planned
Picking Time
Alternative 2:
Creating Wave
Picks Manually
Carry Out
Inventory
Recount
Rough
Workload
Estimate After
Goods Issue
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Post
Differences in
Warehouse
Management
Post
Differences in
Inventory
Management
Difference
Statistics
Determine
Inventory
Status
Wave Pick
Monitor
Outbound
Delivery
Monitor
Warehouse
Activity
Monitor
Rough Workload
Estimate After
Creation of
Outbound
Deliveries
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Document Flow in the Warehouse
PO
Inb. Delivery
Rough GR
GOODS RECEIPT
GR Area
PUTAWAY
TRANSFER ORDER
WAREHOUSE
Outb. Del.
GOODS ISSUE
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Shipping
Area
PICKING
TRANSFER ORDER
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Inventory Management - IM vs. WM
Inventory Management on article
level
Site
Storage Location
Whse number
Storage type
Storage section
Storage bin
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Fixed storage bin can be maintained
in the article master (text field)
Inventory Management on bin level
Putaway / Picking strategies are
used
Storage bin is master data and can
be determined by strategy (other
than fixed)
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Warehouse Structure - Warehouse PC1
Section 002 Slow moving items
H01
High Rack Storage
Random Storage
Gate 1
Gate 2
1
2
GR-Area
Section 001 Fast moving items
Section 001
Total Section
H01 / B01 / F01
Storage for
Special Goods
(depending on
master data)
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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
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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
All Storage bins in
Total Section
Bins 01-001
to 05-025
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GR-Area
21 aisles, each with 50 bins
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
GI-Area
3
4
Gate 3
Gate 4
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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
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Putaway – Transfer Order
Transfer Requirement
Quant
Create
Transfer Order
Automatical
determination
of storage bins
Transfer Order
Confirm
Transfer Order
Confirm storage bin
and quantity
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Warehouse Data in the Article Master
Article Master Data
Warehouse Management
 Warehouse number
 Storage type
 Picking storage type
(PC1)
(K01)
(K01)
 Storage bin
003)
 Maximum bin quantity
 Minimum bin quantity
 Rounding quantity
 Control quantity
 Replenishment qty.
(KOM-04-
© 2014 SAP SE or an SAP affiliate company. All rights reserved.
(50)
(10)
(blank)
(blank)
(blank)
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Stock check – Triggering Replenishment
Stock in bin
smaller than
minimum quantity?
Trigger
replenishment
Reserve storage
Transfer request
is generated
Picking Zone
Create
Transfer Order
Physical Goods Transport
Confirm
Transfer Order
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Picking – Delivery
Delivery
Delivery
 Article
 Quantity
 Site
Stor. Location
Goods Issue
WM
Warehouse
!
Delivery is relevant for picking
! Transfer order required
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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
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In the
shipping
zone
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Picking – Goods Issue
Delivery
Delivery
 Article
 Quantity
 Site
 Stor. Location
Goods
Issue
Goods Issue
WM
Warehouse
!
Delivery is relevant for picking
is finished
order required
! TransferPicking
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Mass Processing of Deliveries
Delivery
Delivery
Delivery
Delivery
Delivery
Manual creation in the outbound delivery monitor
using selection by:




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




© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Weight, volume
Maximum items on the picking list
Working time
...
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Mass Processing of Deliveries
Delivery
Delivery
Delivery
Delivery
Delivery
Delivery
Delivery
Collective Follow-On-Processing:
 Create transfer order
 Confirm transfer order
 Post goods issue
Group of Outbound
Deliveries
or
Wave Pick
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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
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Rough Workload Estimate
Planned
Goods Issue
Delivery
Delivery
Delivery
Delivery
Calculation of
workload using:
 Logistics Load Category
 Unit of Measure
 Whse no. / storage type
 Warehouse process
Delivery
Estimated
Workload in:
 Quantity
 Weight
 Volume
 Execution time
Information on:
 needed manpower
 needed transport
capacity
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Mobile Data Entry in WM
Mobile Data Entry:





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
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Online processing
User interface
SAPGui
SAPConsole
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Controlling the Warehouse via RF-Monitor
RF-Monitor of the warehouse manager
• transfer orders run into workload
queues
• The warehouse employees are
assigned 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.
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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
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Inventory
Difference
Clear differences in
Inventory Management
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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
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Processes Goods Receipt and Return Deliveries
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Processes Replenishment and Goods Issue
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Process Variant Mass Processing of Deliveries
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Process Warehouse Physical Inventory
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