Inventory and
Warehouse Processes
Introduction
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Inventory and warehouse management are
closely related to the fulfillment and
production processes
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Warehouses often supply raw materials to
manufacturing
Warehouses store and move finished and semifinished goods
Warehouse management is an optional
subsystem that must be enabled and configured
Processes
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Process change
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Picking and return
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http://www.youtube.com/watch?v=Q20nhhT07f
0
http://vimeo.com/12948899
Automated pharma
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http://vimeo.com/72337318
Inventory without WMS
Inventory With WMS
Types of Goods Movement
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Receipt from production or procurement
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Goods issue to production or fulfillment
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Decreases raw material inventory
Transfer postings change the status of a good
Stock transfers
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Increases finished goods inventory
Move goods from plant to plant or storage
location
I’ll go through these in sequence
Goods Movement
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Goods can be received in the warehouse as a
result of
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Procurement
Production
You received purchased goods in the
procurement lab
Goods leave the warehouse
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Through shipping
Through disposal
SteelCase Case
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10 plants
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Small short-term warehouses to store goods for
a matter of hours
6 regional distribution centers
Goods Status
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Goods in the warehouse can be
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Unrestricted
Held for a customer or other reason
In quality inspection
In transit
These goods are stored in storage locations
Goods Status (Example)
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MB52 Warehouse stock
Search for goods in a plant
Restrict by materials types
Goods Status (Example)
Goods Status (Discussion)
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We can sell unrestricted stock
Transit/Transf stock is stock in motion
Restricted use stock includes reservations
Blocked stock is stock received “conditionally”
pending acceptance
A batch is a subset of stock managed
separately from the material itself
Goods Movement (SAP)
Goods Receipt
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Remember it’s a receipt of goods into
inventory from a vendor
Goods receipts are triggered by
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Goods received from vendor from purchase
Unplanned receipts
Customer returns
Logistics / Materials Management / Inventory
Management / Goods Movement
Goods Receipt (SAP)
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Again, these are configurable
Goods receipt (Other) MB1C
Types of Goods Receipts
Goods Issue
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To review, goods are leaving inventory
typically sold to a customer
Goods issue event is triggered by
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Planned resulting from a sales order
Unplanned
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Scrap / internal consumption / sampling
Goods Issue
(Types)
Internal Warehouse Processes
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What happens in the warehouse stays in the
warehouse
We are just moving goods around. We are
not revaluing them, buying them, or selling
them
We will discuss in 2 parts
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The organizational units
The processes of moving goods
WM Organizational Units
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A warehouse number defines a warehouse
complex made up of one or many buildings
Within a warehouse we have storage types
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We can configure as a
physical or logical
subdivision of the
warehouse complex
WM Organizational Units
WM Organizational Units
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There will likely be several storage bins
having the same storage type
Storage bins belong to a section and
picking area (other organizational units),
and have a capacity (weight, units, or both)
WM Config
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We have transaction codes to create
warehouses, storage types and other needed
OUs
WM Organizational Units
WM Bin Reports
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We can look at bin utilization and time in bin
WM Bin Creation
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We create storage bins based on templates or
perhaps manually
WM Organization
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Doors are locations where goods are received
or shipped
WM Organization (Door)
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Doors are configured through the IMG
WM Processes
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We add additional steps to move goods from
GR loading area to the warehouse (bins)
We add additional steps to move goods from
warehouse to GI loading area
And a bunch of steps within the warehouse
itself to do the picking and packing
Transfer Postings
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Change the status of a material in stock
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Unrestricted use
QA / QC
Blocked
In transit
Transfer postings do not always result in the
physical movement of goods
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They might just change the logical status of a
good
Transfer Postings (Examples)
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From vendor owned inventory to company
owned inventory
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The vendor stores their materials in our
warehouse (consignment stock)
Change a material’s characteristics over time
Transfer Postings
(Movement Types)
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Selected transfer postings
Process Example (GR)
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We receive goods into an interim storage
area
We move goods into the warehouse through
a stock transfer
Process Example (GR)
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I issued a GR for a purchase order where WM
is enabled
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The goods are received into a holding area with
a storage bin corresponding to the PO
Process Example (GR)
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The detail shows
‘interim storage
Process Example (GR)
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We create a transfer order to put away the
material
Process Example (GR)
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And finally the transfer order gets processes
(here we put away)
Process Example (GR)
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And now my goods show up in the bins
Stock Transfers
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Use to physically move materials from one
organizational level to another
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Plant
Storage location
Etc.
Types of Stock Transfers
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Storage location to storage location
Plant-to-pant transfer
Company-code-to-company-code transfer
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Stock transfers do not take into account
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Transportation costs
Negotiated value or changes in pricing
Stock Transport Orders satisfy this need
Stock
Transfer
(SAP)
Stock Transfer (Illustration)
Stock Transfer (Details)
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The procedure can be performed two ways
1-step process
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2-step process
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Goods issue and goods receipt happen at the
same time
Goods go through an in-transit status between
goods issue and goods receipt
A FI document is generated to record the
change in inventory
Stock Transport Orders
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These orders account for delivery and stock
in transit
Billing can also be performed
Valuation can be changed
Progress of the transport can be tracked
The sending plant is the seller and the
receiving plant is the buyer
Warehouse Organizational
Data
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First, the warehouse management sub
system must be enabled for the following to
work
Enabling the warehouse management process
involves additional steps in the goods issue
and goods receipt phase
Fulfillment Steps
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After outbound delivery and before goods
issue
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Warehouse issues transfer orders
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Create and confirm
Goods physically move from storage bins
(locations) to interim storage
Production (steps)
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The same confirmations are made
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When raw materials are issued to production
When finished goods are transferred back to the
warehouse
WH Controlling
WH Controlling
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http://www.tcodesearch.com/transactioncodes/search?module=LE&comp=LEWM&desc=Warehouse%20Management