Empowering the Warehouse Worker:
Handheld Equipment Increase
Warehouse Performance
Thomas Klyvø
SBN, October 2015
Content
• Get an overview of tools and techniques proven to improve warehouse productivity by empowering the warehouse
worker
• Attend this session for lessons to:
– Understand the potential of empowering your warehouse workers
– Learn how to extend SAP ERP warehouse management barcode transactions to equip warehouse staff with more
capabilities
– Empower warehouse workers to conduct ad hoc task handling by leveraging the radio frequency (RF) framework
in SAP EWM
– Establish an effective warehouse management performance framework that tracks critical KPIs
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What We’ll Cover
Why the need for Warehouse Empowerment?
Utilize SAP Standard in SAP ERP WM RF transactions
Extend SAP ERP RF transactions to gain more online capabilities
Leverage the RF framework in SAP EWM
Wrap-up
3
Why the Need for Empowerment?
• In todays economy, top managers are demanding lowered
operating costs and improved performance
• At the same time, the western world is experiencing increased
international competition from countries with low labor cost
• This leads to demands for cost effective operations
– Higher degree of process automation
– Better utilization of FTE resources
– Working smarter – Rather than harder
• Through RF empowerment, you allow your warehouse workers to
supply your warehouse operations with intelligence and execution
power
4
?
The Power of Worker Empowerment
Provide the warehouse workers with tools and systems for utilizing
their warehouse knowhow in order to maintain and improve effective
warehouse operations
• Move execution of complete SAP processes from PC screens to
the warehouse floor
• Correct errors immediately when discovered – at the warehouse
floor
• Perform process adjustments during execution to utilize worker
know-how
• Utilize the power of real-time data updates
• Supply your operation with agility, flexibility, and efficiency
5
Mobile Equipment Is the Key
Wifi Antenna
Barcode Scanner
Display
Keyboard
• Todays “mobile revolution” is not just for telephones
• Small handheld devices – Preferably with a barcode or RFID scanner – Put
great power of execution into the hand of the warehouse worker
6
SAP Mobile
• The SAP ERP Warehouse Management
and SAP EWM solutions offer a wide
range of warehouse transactions which
can be executed by warehouse workers
using a mobile device
• Using these mobile transactions, you
perform warehouse movements by
scanning bin labels, pallet barcodes, and
material numbers
7
“Static” WM Is Simply Too Inflexible
The transfer order (moving goods in the warehouse) is a static object when executed without RF equipment
Start Picking,
Create TO
Pick with TO as
pick list
Pack
Load
Deviations?
Go to terminal to
correct.
8
Goods Issue
The Advantages of Using Mobile Warehouse Equipment
• Paper-free warehouse – Fast and accessible
• Quick and error free data entry through scanning
• Make online process registrations and perform
deviation handling as the processes are actually taking
place
• Effective handling of unique Load Carriers (HU) and,
therefore, effective warehouse traceability
• Failsafe processes due to inline data-check
(a must-have within the pharma, food, and beverage
industries)
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What We’ll Cover
Why the need for Warehouse Empowerment?
Utilize SAP Standard in SAP ERP WM RF transactions
Extend SAP ERP RF transactions to gain more online capabilities
Leverage the radio frequency framework in SAP EWM
Wrap-up
10
The Technical Enablers …
• ITS mobile – A Web-based solution for porting
SAP transactions to mobile devices
• Runs on any device capable of running a
Web browser with JavaScript support
• “Translates” normal SAP GUI to Web-based
graphical screens (HTML and JavaScript)
• With the ITS mobile solution, you are executing
online SAP transactions from the warehouse floor
– and need WIFI access whenever a transaction
is executed
11
All Warehouse Movements Can Be Carried
Out with RF
• Put-away of P.O.
• Staging to Production
• Put-away from Production
• Replenishment of pick-bin
• Picking of Delivery
12
Using the Mobile Menu, Performing Tasks
• Warehouse workers access customizable menus on RF
• Jobs (TOs) presented to user automatically or by manual selection
• TOs confirmed by scanning bin-number, pallet number, etc.
13
RF Empowerment in SAP ECC
• Most standard RF transactions are TO confirmation
– Picking of outbound delivery
– Put away of purchased goods
– Performing replenishment (internal movement)
– Staging to production
• Standard RF also provides:
– Online entry of differences during confirmations
– Physical counting of existing inventory documents
– Pallet loading
– Lookup of material or pallet data
• RF empowerment in standard SAP is about::
– Allowing the warehouse worker to influence task execution
– Performing entire processes from the warehouse floor
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Empower Your Warehouse Workers by
Letting Them Influence the Work Execution from the RF Terminal
In standard SAP ECC WM, the worker can influence
the TO confirmation process by difference handling
• Register that not all products needed for picking
were available
– Have the SAP system automatically move the
wrong stock quantity to a “Lost & Found” bin
• Register that you are simply picking more, or less,
than the Transfer Order asks for
– E.g., to actually move a full container, even though
less is needed
15
Registering Differences in TO Execution
• When confirming a movement in the standard RF
transactions, clicking the “Diff” button will allow the
user to pick a different quantity
• The user enters a one letter difference indicator,
which controls one of two behaviors:
– The entered difference is adjusted from stock (to
“lost & found”)
– Picked Quantity is simply changed (no stock
adjustment)
Note: Correcting larger stock level errors can take several iterations this way!
16
Empower Your Warehouse Workers by
Letting Them Perform Complete Processes from RF Terminals
• Most warehouse movements start or end by an IM movement
• Besides the actual picking and put-away tasks, Goods Issue and
Goods Receipt posting is also possible with RF – With some limitations
GI/GR
WM
– GR/GI is only available in connection with deliveries
– Goods issue to production, only if staging through outbound deliveries
– Goods receipt of purchase orders, only if using Inbound Deliveries
Utilizing Inbound Deliveries is a sometimes overlooked functionality that
highly extends the functionality of inbound Logistics!
17
GR/GI
Complete Goods Receipt from the Warehouse
Floor Using Inbound Deliveries
• Goods receipt of a purchase order directly is not covered by standard RF transactions
• Using inbound deliveries in the inbound process allows you to complete the entire GR process using RF equipment
GR
To
To
18
GR
Performing Goods Receipt Using RF Equipment
Purchase Order Created
19
Performing Goods Receipt Using RF Equipment (cont.)
Inbound Delivery created by ASN, by background job, or manually
20
The Delivery Is Completely Processed on RF Terminal
The Warehouse Worker initiates the Goods receipt
process by creating TOs for the Inbound Delivery
21
The Delivery Is Completely Processed on RF Terminal (cont.)
TOs are created and the Warehouse worker picks up the
goods, identified by pallet number or product label
22
Registering Differences During Actual Put Away
Differences discovered during the put away are entered by
pressing “Diff” (Changing put-away quantity from 50 to 45 Ea)
23
Goods Receipt Posted on the RF Device (After Put Away)
And the
received
quantity can
be automatically updated
back into
the del.
24
Advantages of RF with Inbound Deliveries
• All processes related to the Goods Receipt are carried out on the RF device
(no need to access an office terminal)
• Any differences discovered during put away are registered in real-time
• Actual GR posting does not take place until after put away
• GR done on the actually received quantities
Inbound deliveries can be created by electronically receiving an Advanced Shipping
Notification from the vendor with detailed information of the products that have been
shipped:
• Actual quantities sent
• Vendor batch number
• Packaging data (SSCC takeover, etc.)
Note: SSCC = Serial Shipping Container Code
25
Further Standard Empowerment – Allow Users to Perform Ad Hoc
Physical Counting
• “Dynamic Cycle Counting” is available in
SAP ERP 6.0, EHP 7
• Allows user to:
– Create and post counting results on the fly
– Flag bins with open TOs for counting (and
automatically have the bin blocked for
counting when the last TO is confirmed)
• Users can correct stock-count errors as soon
as they are discovered
• Users can utilize any spare time for
spreading out the physical Inventory effort
26
A Great Use of RF Execution in Standard SAP ERP
• Utilize the RF availability during picking to spread out your Inventory count effort with “Zero Stock Check”
G
GR
• During Picking, the system quantity goes to Zero. User
is prompted to perform a “Zero Stock Check.”
GI
• User enters any remaining quantity (or confirms zero)
and the bin is marked as counted in SAP
• Dramatically increased stock accuracy
• Lower year-end counting cost
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What We’ll Cover
Why the need for Warehouse Empowerment?
Utilize SAP Standard in SAP ERP WM RF transactions
Extend SAP ERP RF transactions to gain more online capabilities
Leverage the radio frequency framework in SAP EWM
Wrap-up
28
Extend Standard SAP with Missing RF Transactions
• Why SAP standard is not enough for most
warehouses
– Ad hoc warehouse movements
– Blocking/unblocking of bin, products, or
pallet
1. Inbound Proc. >
– Maintenance of master data by RF
– GI to production/Cost Center/Project, etc.
2. Outbound Proc. >
– GR of purchase orders (without Inbound
delivery)
3. Ad Hoc Move >
– ID and re-print pallet labels
– Adding additional process checks
• Missing transactions are programmed in
ABAP, added to the RF menu, and
translated into HTML
4. Inquiries >
5. Master Data >
6. Int. Whs. Proc. >
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Don’t be afraid of
extending standard SAP
with your own RF
transactions
Example of a Developed Transaction – Ad Hoc Movement
The movement is started by scanning the bin number,
material number, or pallet number (Storage Unit)
By making a data lookup, the quants that can be moved
are shown. User selects the product and bin from the list.
The available quantity is displayed. Movement of
more than is available is not possible. In the
background, the material is moved to a transit bin.
The destination bin label is scanned
and the movement is completed
30
Other Examples of RF Transactions Created
in Previous Projects
• Reprint pallet labels
– ID the pallet by scanning the bin and selecting from a list or by scanning the non-missing labels
• Change picking strategy, put-away strategy, or palletization data of a material from terminal
– ID product by scanning product EAN label, SAP product number, or by scanning pallet or bin number
• Let the user overview picking queues (and number of open TOs)
– Select queue and TO to execute from list instead of “system guided”
• Post Goods Issue to production
– Scanning: Product number, Batch number, or the Storage Unit
• Various checks: Batch to delivery, Product to HU and more.
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What We’ll Cover
Why the need for Warehouse Empowerment?
Utilize SAP Standard in SAP ERP WM RF transactions
Extend SAP ERP RF transactions to gain more online capabilities
Leverage the radio frequency framework in SAP EWM
Wrap-up
32
EWM – Built for RF Execution
• ERP WM – Built for one step (static) movements
• EWM – Built for multiple step (dynamic) movements
ERP WM
Transfer Orders
G
GR
• One source.
• One Destination.
• One movement.
• Warehouse Tasks
Unload  QI/DC  Put-away
EWM
G
GR
QI
• Movement evolves as it goes along
DC
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Comparing RF Functionality – EWM vs. ERP WM
Mobile Warehouse Functionality
ERP
EWM
Loading and Unloading
+
+
Deconsolidation
-
+
Pack and GR of inbound delivery
+
+
Confirmation Correction
-
+
Put away
+
+
Picking
+
+
Block storage bin
-
+
Pack and Goods Issue of outbound delivery
+
++
Execution of planned Physical Inventory
+
+
Interleaving execution
+
++
Stock, HU, and order query
+
++
Ad Hoc packaging
+
++
Ad Hoc movement
-
+
Ad Hoc Physical Inventory
+
-/+
Handling of differences in the picking process
+
++
Other exception handling
-
++
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Standard RF Framework in EWM
• RF framework looks similar to the ERP framework
– Conceptual addition of “Resources”
– Possibility added to perform flexible screen design
– New standard functionality for data lookup during execution
• New standard Ad Hoc transactions added
– Move HU or material
• New concept for handling deviations introduced
– Confirmation correction
– Deviation handling through exception codes
35
EWM Ad Hoc Transaction
• Ad hoc movements
have been added to
the standard RF
portfolio in SAP EWM
• Move both HUs or
products
• In addition, tasks and
stock queries of HUs,
products, and bins
are available during
most RF movements
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Get in Control of Process Deviations in EWM
with Exception Codes
• With EWM, “Process Exceptions” enter the RF environment through 4 letter exception codes
• Exception Codes are configured in the system and are a way for the warehouse worker to register process
deviations
• Based on the exception codes, the system can perform a number of follow-up tasks
– Create/change the warehouse task(s)
– Change status for the bin or the Handling Unit
– Change the quantities of the referencing delivery document (e.g., reduce delivered quantity)
– Start additional processes through SAP Workflow (replenishment, mail notification, etc.)
– Notify warehouse supervisors by raising warehouse alerts
37
Exception Codes Are Entered During RF
Execution to Register Deviations
A process deviation process is started by entering a 4 letter Exception Code
Entry of Exception Code
Enter “LIST” in the Exception Code field to get a list of all relevant Exception
Codes for the current process step
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Example – Splitting Pick-Task to Multiple
Pallets
Pick HU “Pallet” created
As the quantity is to be confirmed, picker
realizes that pick HU will only hold 3 EA
For a delivery, we need to pick 5 EA of product T-EWM300
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Example – Splitting Pick-Task to Multiple
Pallets (cont.)
“Warehouse Task Split” is selected
Picker brings up list of exception codes
(LIST)
If warehouse worker cannot remember the process code to use, he can get
them displayed in a selection list
40
Example – Splitting Pick-Task to Multiple
Pallets (cont.)
… and confirmed
Split Quantity is entered
The warehouse task is split into two
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Example – Splitting Pick-Task to Multiple
Pallets (cont.)
User enters packaging material “PALLET”
and has a new HU created
User wants to create a new pick HU, enters
Exception code CHHU
The remaining quantity has automatically been moved to another task that is
automatically processed
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Example – Splitting Pick-Task to Multiple
Pallets (cont.)
All process deviations were carried out
without leaving the picking process
User confirms the remaining pick to the new
HU
A new HU is created as part of the picking process and the task is confirmed
43
Confirmation Correction with RF
With “Confirmation Correction,” you can even change processes that have already been confirmed from the
mobile equipment!
1. Inbound delivery of 11 PC is received and putaway task is initiated
GR
2. From GR Zone, the pallet is taken into Storage
and placement is confirmed
11 PC
Inbound Del
11 PC
11 PC
10 PC
10 PC
3. After stock placement, it is discovered that pallet
only contains 10 pc
10 PC
4. User enters Confirmation Correction, IDs the task,
and corrects the quantity to 10 pc
5. EWM executes the confirmation Correction back
to the Inbound Delivery and the Goods Received
quantity is corrected
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What Is Achieved with Exception Codes and Confirmation Correction?
Warehouse workers are given the option to solve
everyday deviations and errors as they are
discovered
• No flow interruption
• Errors corrected as they occur
(and while we still know what went wrong)
• Higher stock accuracy
• Small errors are solved by small effort
(not the other way around)
45
Other Advanced Utilization of RF Execution in EWM
• In SAP EWM, the continuous inventory method
“Zero stock check” has been replaced by a “Low
stock check” to ensure earlier error correction
• Additionally, a number of functionalities have been
added that are utilizing the RF execution framework
– Opportunistic RF Cross-Docking
– Pick/Put-away Interleaving
– Resource Execution Constraints
46
Utilize RF – Cross-Docking, Making Put-Away
Process More Effective
The standard put-away and picking process
GR
GI
1. GR posted, stock enters
warehouse
2. Stock put-away, available for
picking
3. A new picking task can pick
from the stock
Put-away process with opportunistic cross-docking
1. Picking task exists
GR
GI
2. GR posted of prod.
3. Existing Pick Task deleted,
Put-away directly to shipping
Only possible through RF, as the picking source is updated dynamically
47
Utilize RF – Interleaving Pick and Put Away
Reduce deadheading by defining a “Queue Execution Sequence” for Task Interleaving
Through system-guided execution,
warehouse workers are assigned to
work tasks from changing queues
GR
GI
48
Utilize RF – Resource Execution Constraints
Avoid waiting time by limiting the resource access to warehouse zones
• By knowing the position of each
RF device, SAP EWM can be
set up to avoid overloading
areas in the warehouse
• Utilizing the “real-time”
environment of online RF
49
Alternatives to Normal RF Execution Are
“Hands Free”
Voice
picking
Hands free picking. Tasks
communicated through
headphones. Voice used for
confirmation.
Pick by
light
Hands free picking. Visual
indication of picking location and
quantity. Confirmation by
physical touch.
50
What the Future Might Have in Store
• Google Glass (and similar devices) is on its way to the warehouse
• Provides a heads up display in glasses – A wearable data screen
• SAP & Vuzix bring you augmented reality solutions
Source: http://en.sap.info/sap-goes-wearable/94444 June 2013
51
What the Future Might Have in Store (cont.)
52
What the Future Might Have in Store (cont.)
53
What We’ll Cover
Why the need for Warehouse Empowerment?
Utilize SAP Standard in SAP ERP WM RF transactions
Extend SAP ERP RF transactions to gain more online capabilities
Leverage the radio frequency framework in SAP EWM
Wrap-up
54
What We’ll Cover
Why the need for Warehouse Empowerment?
Utilize SAP Standard in SAP ERP WM RF transactions
Extend SAP ERP RF transactions to gain more online capabilities
Leverage the radio frequency framework in SAP EWM
Wrap-up
55
Where to Find More Information
• http://help.sap.com/SCENARIOS_BUS2012/helpdata/EN/71/5f4296318f4493a815eebce7c0e7a6/frameset.htm
– Description and examples of Exception Handling
• http://en.sap.info/sap-goes-wearable/9444
– Video of Augmented Reality Solutions for the Enterprise by SAP & Vuzix
• www.supplychain247.com
– Survey on U.S. Warehouse Operations, October 2013
• http://help.sap.com/saphelp_scm70/helpdata/EN/f8/09302b46504a15980f2f5d713b3fd8/content.htm
– Information about SAP NetWeaver BI in SAP EWM
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Your Turn!
How to contact me:
Thomas Klyvø
tkl@Implement.dk
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Disclaimer
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their respective companies. Wellesley Information Services is neither owned nor controlled by SAP.
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