Warehouse and DC
Management (WM)
SAP Best Practices for Retail (France)
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






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
Create Purchase
Order for Single
Article
Create Purchase
Order for
Generic Article
Create Inbound
Delivery
Appointment
Planing
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
Receipt of
incoming
Goods
Alternative 1:
Confirm without
difference
Replenishment
Planning
Create a
Transfer
Order
Confirm
Transfer
Order
Retail Store
Manager
Retail
Warehouse
Manager
Enter an
Actual
Appointment
Alternative 1:
Asynchronous
Warehouse
Management
Put away
Preparation
Alternative 2:
Confirm with
difference
Create a
Transfer Order
in the
Warehouse
Goods
Collection
Post Rough
Goods
Receipt
Create an
Outbound
Delivery
Goods
Receipt with
Reference to
the Rough
Goods
Receipt
Putaway
Processing
Ressource
Planning with
the RF Monitor
Process Flow Diagram
Retail Warehouse Clerk
Alternative 1:
Confirm without
difference
Create Transfer
Order as a
Picking
Document
Alternative 1:
Asynchronous
Warehouse
Management
Subsequent
Delivery Split
Confirm
Transfer Orders
in Collective
Processing
Goods Issue in
Collective
Processing
Retail
Warehouse
Manager
Create a
Physical
Inventory
Document
Resource
Planning in the
Monitor for
Mobile Data
Entry
Log-on to the
Terminal
Monitor from
Mobile Data
Entry Monitor
Post Goods
Issue
Creating
Wave Picks
Alternative 1:
Manual
Creation
Create
Deliveries with
Planned
Picking Time
Alternative 2:
Confirm with
difference
Create Transfer
Orders in
Collective
Processing
Trigger
Inventory
Recount
Manual Entry
Alternative 1:
Automatic
Capacity-Driven
Creation of
Wave Picks
Alternative 2:
Creating Wave
Picks Manually
Carry Out
Inventory
Recount
Rough Workload
Estimate After
Goods Issue
Post Differences
in Warehouse
Management
Rough Workload
Estimate After
Creation of
Outbound
Deliveries
Post
Differences in
Inventory
Management
Difference
Statistics
Determine
Inventory
Status
Wave Pick
Monitor
Outbound
Delivery
Monitor
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









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:





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
Legend
<Function>
Symbol
Description
Usage
Comments
Band: Identifies a user role, such as Accounts
Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.
Role band
contains tasks
common to that
role.
Symbol
Diagram
Connection
The other process flow symbols in this table go into
these rows. You have as many rows as required to
cover all of the roles in the scenario.
Hardcopy /
Document
External
to SAP
External Events: Contains events that start or end the
scenario, or influence the course of events in the
scenario.
Business
Activity /
Event
Flow line (solid): Line indicates the normal sequence
of steps and direction of flow in the scenario.
Flow line (dashed): Line indicates flow to infrequentlyused or conditional tasks in a scenario. Line can
also lead to documents involved in the process flow.
Connects two
tasks in a
scenario
process or a
non-step event
Business Activity / Event: Identifies an action that
either leads into or out of the scenario, or an outside
Process that happens during the scenario
Does not
correspond to a
task step in the
document
Unit Process: Identifies a task that is covered in a
step-by-step manner in the scenario
Corresponds to
a task step in
the document
SubProcess
Reference
Proces
s
Decisio
n
Usage Comments
To next / From last Diagram: Leads
to the next / previous page of the
Diagram
Flow chart continues on the next /
previous page
Hardcopy / Document: Identifies a
printed document, report, or form
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Financial Actuals: Indicates a
financial posting document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Budget Planning: Indicates a
budget planning document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Manual Process: Covers a task
that is manually done
Does not generally correspond to
a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.
Existing Version / Data: This block
covers data that feeds in from an
external process
Does not generally correspond to
a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines
System Pass / Fail Decision: This
block covers an automatic
decision made by the software
Does not generally correspond to
a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.
Financial
Actuals
Budget
Planning
Manual
Proces
s
Unit Process
Process
Reference
Description
Process Reference: If the scenario references another
scenario in total, put the scenario number and name
here.
Sub-Process Reference: If the scenario references
another scenario in part, put the scenario number,
name, and the step numbers from that scenario here
Process Decision: Identifies a decision / branching
point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.
Corresponds to
a task step in
the document
Corresponds to
a task step in
the document
Does not
usually
correspond to a
task step in the
document;
Reflects a
choice to be
made after step
execution
Existing
Version /
Data
System
Pass/F
ail
Decisio
n