Warehouse and DC
Management (Lean WM)
SAP Best Practices for Retail (US)
SAP Best Practices
Scenario Overview 1
Purpose and Benefits:
Purpose

This scenario describes the processing of merchandise in the distribution center
with inventory management done at the level of storage location – Lean
Warehouse Management.
Benefits

Since storage procedures depend on space limitations, organization and the
type of merchandise being stored, this scenario should be seen as one example
of an implementation. However, this example can be easily adjusted to fit the
warehouse of SAP customer.
Key process flows covered





Goods Receipt Processing
Return Deliveries
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 Sales Person

Retail Warehouse Manager

Retail Sales Person
Retail Warehouse Clerk
Process Flow Diagram
3.3.1
Create Purchase
Order
3.3.2
Create Inbound
Delivery
3.4.1
Posting Rough
Goods Receipt
3.4.3
Goods Receipt with
Reference to Rough
Goods Receipt
Document Flow in the Warehouse
PO
Inb. Delivery
Rough GR
GOODS RECEIPT
PUTAWAY
TRANSFER ORDER
There is no stock
keeping in Lean-WM,
but just recording
of movements using
transfer orders.
FIXED
STORAGE
BIN
Outb. Del.
GOODS ISSUE
PICKING
TRANSFER ORDER
Inventory Management - IM vs. WM
Inventory Management on article
level
Site
Storage Location
Whose number
Storage type
Fixed storage bin can be maintained
in the article master (text field)
No additional level of stock keeping
below IM.
Warehouse number and type are just
used for the recording of stock
movements using the transfer
order, but no stock posting is
triggered when moving
merchandise at this level.
Using Lean WM
When you implement Lean WM, inventory management takes place solely at
storage location level. The system does not update the stock data at storage bin
level using the quants like the Warehouse-Management-System (WMS) .
You use Lean WM solely for processing goods receipts and goods issues.
Using Lean WM, you process the warehouse movements in basically the same
way as if using the Warehouse Management System: you work with deliveries,
and you create transfer orders for these deliveries. These transfer orders serve
as pick lists.
The use of transfer orders in Lean WM provides the following advantages:

You can reprint transfer orders at any time.
 You can split transfer orders and thus distribute the workload better among
the staff in your warehouse.
 You can use mass processing functions based on the transfer order (for
example wave picks).
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
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
Processes Goods Receipt and Return
Deliveries
Processes Picking and Goods Issue
Process Physical Inventory