[
Extended Warehouse Management - A
3PL Perspective
Max Spilker, Roberto Omiccioli (Westernacher)
[ Learning Points
Common challenges in a 3PL EWM implementation
Best practices to overcome implementation gaps/issues
Bill your WH operations to your customers
Real Experience. Real Advantage.
2
[ Westernacher History in Warehouse Management
1980
Starting Warehouse Management activities
• “Booming period” of automated highbay warehouses in Germany
• Individual programming / mainframe systems
1993
Focus on SAP products & technology
• R/2 and R/3 projects (FI, CO, PS, MM, SD, PP)
• Logistics: Development of WLS®, our own WMS running 100% on
ABAP; 1st release in 1994
2000
1st project with SAP LE-WM 4.6C
2004
WLS® running on Netweaver
2005
1st project with LE-TRM
2007
1st SAP-EWM implementation as a Partner of SAP Germany at
a leading automotive OEM
2010
1st SAP-EWM go-live in 3PL industry. Birth of Warehouse
Billing Engine.
Real Experience. Real Advantage.
3
[ Questions that keep 3PLs awake at night
1. How to effortlessly integrate new clients, products,
services and client specific processes?
2. How to organize the warehouse in order to achieve
required service levels and work efficiently at the
same time?
3. How to organize the material and information flows?
4. How to bill the client for the provided services?
Real Experience. Real Advantage.
4
[ Some challenges are specific to the 3PL industry
Challenge
Unexpected goods
receipt
Description
• EWM expects that ASN is available before unloading
• 3PLs do not always know what to receive
Product number
issue
• Client vs. own product number
• Use client number for external use and own product number for internal
processes
Building interfaces to
customer systems
• In order to transfer customer’s master data and transaction data to own
systems
Onboarding new
clients
Billing for logistics
services
Real Experience. Real Advantage.
• Requirement for quick IT support for new clients
• Creation of organizational objects and master data
• Make use of predefined logistics services and corresponding process
templates
• 3PL need capability to bill clients for provided logistics services
1
[ 3PLs do not always know what to expect…
Standard SAP EWM Inbound Process
Potential 3PL Inbound Process
ASN
GR Zone
Item
Material
Qty
10
115566
500
20
133445
200
GR Zone
Unloading
?
Unloading
Counting & Manual creation
Qty
correct?
Inbound Delivery
Yes
Putaway
Real Experience. Real Advantage.
No
Exception
Item
Material
Qty
10
115566
500
20
133445
200
Inventory
[ Some challenges are specific to the 3PL industry
Challenge
Unexpected goods
receipt
Description
• EWM expects that ASN is available before unloading
• 3PLs do not always know what to receive
Product number
issue
• Client vs. own product number
• Use client number for external use and own product number for internal
processes
Building interfaces to
customer systems
• In order to transfer customer’s master data and transaction data to own
systems
Onboarding new
clients
Billing for logistics
services
Real Experience. Real Advantage.
• Requirement for quick IT support for new clients
• Creation of organizational objects and master data
• Make use of predefined logistics services and corresponding process
templates
• 3PL need capability to bill clients for provided logistics services
[ Integrating multiple clients might lead to an issue with the material numbers
Client 1
Number
Range:
A01 – B99
Client 3
Client 2
C01 – F99
G01 – H59
Material
CIF
ERP
Material
EWM
3PL
Real Experience. Real Advantage.
Client 4
B95 – B99
Recommendation: Assign material number from own number
[ Our
range. Use clients number for external purposes.
ERP
ERP Material Master
EWM
Warehouse Material Master
CIF
Real Experience. Real Advantage.
[ Some challenges are specific to the 3PL industry
Challenge
Unexpected goods
receipt
Description
• EWM expects that ASN is available before unloading
• 3PLs do not always know what to receive
Product number
issue
• Client vs. own product number
• Use client number for external use and own product number for internal
processes
Building interfaces to
customer systems
• In order to transfer customer’s master data and transaction data to own
systems
Onboarding new
clients
Billing for logistics
services
Real Experience. Real Advantage.
• Requirement for quick IT support for new clients
• Creation of organizational objects and master data
• Make use of predefined logistics services and corresponding process
templates
• 3PL need capability to bill clients for provided logistics services
[
There is no unique solution to the interface challenges
Web
Portal
Client 2
SAP ERP
3Pl
IDOC Interface
Invoicing
Client 1
Communication
Platform
KA
EWM
3Pl
M
FO
Multiple sites /
Warehouse numbers
Real Experience. Real Advantage.
[ Some challenges are specific to the 3PL industry
Challenge
Unexpected goods
receipt
Description
• EWM expects that ASN is available before unloading
• 3PLs do not always know what to receive
Product number
issue
• Client vs. own product number
• Use client number for external use and own product number for internal
processes
Building interfaces to
customer systems
• In order to transfer customer’s master data and transaction data to own
systems
Onboarding new
clients
Billing for logistics
services
Real Experience. Real Advantage.
• Requirement for quick IT support for new clients
• Creation of organizational objects and master data
• Make use of predefined logistics services and corresponding process
templates
• 3PL need capability to bill clients for provided logistics services
[ The 3PL onboards “ValueCustomer” as a new 3PL client
ValueCustomer’s
customers
3PL
ValueCustomer’s
products
Client
ValueCusto
mer
Goods
Receipt
Goods
Distribution
3PL’s Services for ValueCustomer
•
Call Center Services
• Order Management
• Warehouse Logistics
• Billing on behalf of ValueCustomer
Real Experience. Real Advantage.
[ Steps to be performed to support this business
• Plant, storage location, integration into warehouse number
1. Customizing • Or, use vendor consignment stock to seperate from other stock
in the warehouse.
2. Interface
• Interface to client system for master / transactional data
• Material Master
• Packaging specifications
3. Master Data
• (Customers)
• (Prices)
4. Assign
process
templates
• Assign process templates according to sales contract
• Client specific labels
5.
Programming • Requirements not covered by SAP standard and process
templates
Real Experience. Real Advantage.
and Master data: Organizational elements required to onboard
[ Customizing
a new client such as ValueCustomer
Object
SAP Object
Best Practice Approach
• Plant and Storage Locations
• Or vendor consignment stock
• Customer and Vendor master data
• Follow defined procedures /
checklist. Create by copying sample
data
• ERP Customers
• EWM Business Partners
• Also possible to use one customer
with multiple ship to addresses.
• Interface via IDOC from
ValueCustomer’s ERP system or via
communication platform.
• ERP and EWM product master data
• Excel upload - LSMW
ValueCustomer‘s Packaging
Information
• Packaging specifications should be
created for each product to ensure
smooth EWM processes
• Excel upload – standard transaction
available in EWM.
ValueCustomer‘s product prices
• SD pricing master data if required
for printing or billing on behalf off.
• Interface or
• Excel upload
• Sales contract
• Basis for billing engine
ValueCustomer
ValueCustomer‘s Clients
ValueCustomer‘s Products
Agreement between Tech Data ValueCustomer
Real Experience. Real Advantage.
system, ERP and EWM support the integration of multiple 3PL clients
[ Both
into the same warehouse.
ERP
Plant 1
(ValueCustomer)
SLOC
ROD
SLOC
AFS
Plant 2
(Client 2)
SLOC
ROD
SLOC
AFS
EWM
Warehouse
Number
00A
Warehouse
Number
000A
Stock A
Owner:
(ValueCustomer)
Real Experience. Real Advantage.
Stock A
Owner:
(Client 2)
…
…
…
EWM, stock but also warehouse tasks always contain a reference to the
[ Instock
owner
Example of stock on bin:
Example of pick warehouse •task:
1
In a multi client warehouse, stock and all tasks are always
separated by owner.
Real Experience. Real Advantage.
templates: Predefined service offerings / process templates make
[ Process
onboarding easier…
Procurement Management
Strategic
Purchasing
Stock
Financing
Operational
Purchasing
Distribution Management
Sales
(cold calling)
Billing
Web Portal
Customs
Import
Customs
Warehouse
Export
Warehouse Logistics
Goods
Receipt
Storage
Quality
Inspection
Return
Management
Production Services
Distribution Logistics
Order
Management
Storage
Picking
Production
Warehouse
Real Experience. Real Advantage.
Packaging
material
warehouse
Value added
services
Packing
Transport
Production
Supply
Quality
Inspection
Preassembly
Packaging
Production
Transport
[ Some challenges are specific to the 3PL industry
Challenge
Unexpected goods
receipt
Description
• EWM expects that ASN is available before unloading
• 3PLs do not always know what to receive
Product number
issue
• Client vs. own product number
• Use client number for external use and own product number for internal
processes
Building interfaces to
customer systems
• In order to transfer customer’s master data and transaction data to own
systems
Onboarding new
clients
Billing for logistics
services
Real Experience. Real Advantage.
• Requirement for quick IT support for new clients
• Creation of organizational objects and master data
• Make use of predefined logistics services and corresponding process
templates
• 3PL need capability to bill clients for provided logistics services
[ Typical pain points for Logistics Service Providers with
warehouse billing
Real Experience. Real Advantage.
20
[ Development principles of
Warehouse Billing Solution
based on SAP EWM technology
Real Experience. Real Advantage.
21
[ Warehouse Billing Solution – Architectural Overview
EWM – Data extraction, and aggregation
ECC – Combination with prices and
materials to create invoice
EWM with WBS
ERP
Contracts
Daily Data
Extraction
Aggregation &
Analysis
Billing Run
Material +
Price
Real Experience. Real Advantage.
Debit Request
Invoice
[ Warehouse Billing Solution – Execution Mechanics
Real Experience. Real Advantage.
23
[ Key Learnings
Decide which approach to take for mapping customers into your system
(vendor consignment vs plant)
Create templates/standards to facilitate customer onboarding process
Connect customer’s system to your system to streamline operations and
increase productivity
Have a flexible and scalable billing solution that doesn’t require tedious
manual labor at month-end
Real Experience. Real Advantage.
24
[ More information
Max Spilker (max.spilker@westernacher.com)
Roberto Omiccioli (roberto.omiccioli@westernacher.com)
Website:
http://www.westernacher.com/en/industry/logistics-service-providers
Real Experience. Real Advantage.
25
[
]
Thank you for participating.
Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the
Year-Round Community page at www.asug.com/yrc
[
Real Experience. Real Advantage.
SESSION CODE:
1113
26