[
SCM EWM: Applying Extended
Warehouse Management to the
Wholesale Distribution Industry
Gavin Klaus, LogiStar Solutions LLC
[ Agenda
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Introduction
EWM Update
EWM for Wholesale
Applying Best Practices with your organization
[ LogiStar Services
Expertise
• SAP Supply Chain
Execution is our sole
focus
• Average experience
10+ years with SAP
3
Certifications
• SAP Services
Partner
• SAP Special
Expertise Partner
• Pre-Release Test
Partner
• SAP EEP Reseller
• Certified EWM RDS
Partner
Solution Focus
• SAP SCM EWM
• SAP LES WM
Industry
Expertise
• Medical Devices
• Pharmaceuticals
• Food & Beverage
• Service Parts
• Wholesale
Distribution
• Automotive
• Retail
[ SAP Supply Chain Execution Solutions
RF & Barcoding
Voice Picking
Small Parcel Shipping
Transportation
Management
SAP
WAREHOUSE MANAGEMENT
Labor Management
SAP SCE Strategy
Warehouse and Labor
Analytics
SAP Logistics Solution
Architecture
[ Key Learnings
 The Wholesale Distribution industry has some of the most
advance distribution operations and processes. Learn
how SAP EWM facilitates best practices in the Wholesale
Industry
 Learn how many of these best practices are crossindustry and the key features that can lead to key
performance gains within your operation.
[ SCM EWM Update
 SCM EWM offers significant functionality above and
beyond ERP WM offering functional parity with Best of
Breed WMS solutions including:
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Labor Management
Slotting
Material Flow Systems
RF Wizard
Quality Inspection Engine
Resource Management
Cross-Docking
Value Added Services and Kitting
Yard Management
[ SCM EWM Update
 The SAP EWM solution was introduced to compete with
best of breed solutions. Now on its fourth release, EWM is
gaining traction in the market, offers the features and
functions you would expect in a robust solution, and offers
distinctive value propositions not offered by other leading
suppliers.
 So is SAP EWM a rival to best of breeds? Yes they are.
 Source: ARC Advisory Group, “SAP EWM: A Rival to
Best of Breed Solutions? “, October 2010
[ SCM EWM Update
 EWM has been implemented globally in a wide variety of
industries:
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Third Party Logistics
Wholesale Distribution
Food and Beverage
Automotive
Retail
Life Sciences
Industrial Manufacturing
Aerospace
[ Wholesale Distribution Requirements
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Multiple vendors
Multiple customers
High number of SKU’s
High service level
Small orders
 Parcel shipping
 Low eaches per line
 Short order cycle time and late cut offs
 Multiple Transportation methods, will call, customer pay,
company pay, parcel, LTL, Courier, Milk run, own fleet
 Value added services
 Order flexibility
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[ Wholesale Distribution Industries
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Retail/CPG (Food, Beverage/Spirits, Sundries)
Hi Tech (Consumer and B2B)
Pharmaceutical/Medical Supply
Automotive
Building and Industrial Supply
[ Batch Picking
 In batch picking, groups of orders are picked at the same
time to minimize repeat visits to the same product bin
location. The WMS can arrange a group of orders in the
most efficient picking sequence.
 Relevant for operations with:
 Multiple each or overpack items to a shipping case or tote
 Multiple cases or large eaches to a pallet
 Industry relevance – All
[ Batch Picking
 Warehouse Task (WT)
 Task creation functionality is embedded in SAP EWM
 In addition to picking execution, WT is used for actual or logical
goods movement such as packing, staging and loading
 The warehouse task contains the following information;
 The product to be moved
 Quantity
 Source and Destination location information
 A WT can be a Product WT (material, quantity) or HU WT
(containing HU).
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[ Batch Picking
 Warehouse Order (WO)
 SAP TRM functionality is inherited in SAP EWM that allows
Logical grouping of WTs into warehouse order for efficient
processing – a work package
 It is at the warehouse order level that resources are assigned to
execute the work.
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[ Deconsolidation
 Deconsolidation is the process of dividing a mixed receipt
into putaway zones or groups based on your facility
layout. (aka fanning, zoning)
 Typically leveraged for operations with high volumes of
parcel receipts, mixed containers, and mixed pallets
 Reduces travel time by grouping putaway tasks
 SCM EWM provides a system directed solution to allow
for confirmation of each process via RF or GUI
 Industry relevance – Retail, CPG, AMP, Manufacturing
[ Deconsolidation
 Deconsolidation
 Deconsolidation provides ability to regroup contents of an
HU and putaway separately
 EWM utilizes consolidation groups to determine if
products can be putaway together
 Deconsolidation is relevant if:
 The Activity Areas of the products within an HU are different
 The Activity Areas of the products within and HU are the
same but the consolidation groups are different
 The AA and consolidation groups are the same but the
maximum number of warehouse tasks for the HU has been
exceeded
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[ Deconsolidation
 All tasks are managed
within EWM and can
be executed on GUI or
RF
 In addition to
Deconsolidation,
Process Oriented
Storage Control allows
for system directed
work, supporting
multiple processes
Source: SAP Extended Warehouse Management: Processes, Functionality, and Configuration by SAP Press
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[ Wave Planning
 The process of grouping multiple orders to be picked at one
time
 In a WMS, you can create order waves to see how much labor
you'll need to allocate and how much time it will take to
complete each wave. As the wave works its way through the
DC, you'll be better able to allocate how many downstream
operators you'll need once the picking process is completed.
 Key objectives
 Grouping of orders to control the flow of work to the warehouse
floor
 Ability to control the volume or work effort to create manageable
units of work
 Allow for a well orchestrated replenishment process
 Industry Relevance – All, Retail, CPG, AMP
[ Wave Management
 Wave Management
 Outbound Delivery Order (ODO) items can be independently
assigned to wave
 ERP WM requires entire delivery to be assigned to a wave
 Items grouped based on a common attribute
 Picking Area,
 Method of Picking
 Product Attributes
From SAP Extended Warehouse Management:
Processes, Functionality, and Configuration by SAP
Press
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[ Wave Management
 Wave Template
 Wave Templates are used to manage the automatic assignment of
warehouse request items to waves
 Waves can be managed through the Wave Monitor
 Manual Release
 Assignment or un-assignment of request items
 Block/Unblock
 Split/Merge/Delete
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[ Labor Management
 Labor Management Basics
 Better scheduling and planning
 Reduction of hours (OT, VTO, staffing levels, temp)
 The Management Team can leverage the tool to drive hours out of the
facility
 Increased utilization of the workforce
 Employees respond to the Management Team’s expectations
 Management is given visibility into the distribution operation at the
task level
 Employees are measured against the SOP
 Associate pace and skill improvement (setting the right
expectation)
 Improved processes (reduced steps)
 Shortened learning curve for new associates
 Industry Relevance – Any operation can leverage an LMS with
reasonable expectancies. Due to the effort to develop ELS, typically
a 25 person operation will justify
[ Labor Management
 Labor Management program savings are significant
Quality of Supervision
Level of Measurement
Poor
Average
Good
-60%
-40%
-30%
-40%
-30%
-20%
-30%
-20%
-10%
LMS w/ Engineered Standards
-15%
-5%
+5%
LMS w/ ELS and Incentives
-10%
+10%
+25%
Norms (no Labor Mng.
System)
LMS w/ Historical Rates
LMS w/ Reasonable
Expectancies
[ Stock Specific Unit of Measure
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Ability to manage multiple Stocking
UoM for the same SKU (a 6 pack
and an 8 pack)
Inbound Process
 Apply alternative UoM from ERP
delivery
 Propose preferred UoM
 Change of UoM at different steps
 Putaway strategy via UoM/quantity
classifier
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Internal Process
 Physical Inventory
 Monitoring
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Outbound Process
 Small/Large quantity picking (w/o
packaging specification)
 Send UoM information to ERP
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Pallet
[ Key Learnings
 SCM EWM is a robust WMS solution offering full
capabilities known to be in a state of the art WMS
 SCM EWM is credited for being able to accommodate
some of the most complex requirements of a wholesale
distribution operation and many of these can be applied
across many industries
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THANK YOU FOR PARTICIPATING.
SESSION CODE: 0207
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