Dear Consultants,

In this Blog I like to discuss on Warehouse and its Design, Application, Purpose, functionalities and usage & which application process set-up how it is utilized. Advantage & Disadvantage of an Warehouse Design. How SAP is used in making Warehouse Putaway & Picking Operation. how to achieve efficiency and cut down the unnecessary warehouse movements and help the company to run its business successfully.

SAP Warehouse Management Introduction

• A Distribution Centre (DC) is a warehouse where the products from various supply points are received and (value added) processes like consolidation, break pack and re-palletization and cross-docking are carried out to reduce the distribution costs and increase supply chain efficiency.  In simple terms, its main function is distribution rather than storage.

• One DC may include one of more physical warehouses.

• Warehouse Manages inventory, space, equipment, and labor resources to direct the flow of materials and information from receiving and putaway to light assembly, order picking, value-added processing and shipment and it indirectly helps one organization to improve its revenues and returns. We can say it is Indirect factor.

Is Warehouse adoption only a storage facility? Is it just alternate solution to Storage location? This Question will raise to many people before getting into Warehouse.

Answer is No. Warehouse is not just storage but it is helps to economize the cost/ labour charges / reduced human efforts/ optimize the stock placement and Removal operation/ Speeding up the internal warehouse operations.

1. A warehouse is generally viewed as a place to store inventory.

2. However, in many logistical system designs, the role of the warehouse is more properly structured/ viewed as a switching facility as contrasted to a storage facility.

1. Warehouse Operating Principles

2. Once it has been determined to use a warehouse, the next step is designing it.

3. Whether the warehouse is a small manual operation or a large automated facility, the following three principles are relevant:

   1. Design criteria,

   2. Handling technology, and

   3. Storage plan.

Warehouse Design Criteria to be considered before implementing the Design.

1. Warehouse design criteria address physical facility characteristics and product movement.

2. Factors to be considered in the design process are:

   1. the number of storey's in the facility,

   2. height utilization (Maximize Height), and Minimize Aisles

   3. Product flow.

   4. Efficient Materials Handling

   5. Effective storage Plan

Number of storey in the Warehouse facility

1. The ideal warehouse design is limited to a single storey so that product does not have to be moved up and down. But in modern Warehouse this is not possible. we require multiple stories. Even when I worked for our company warehouse layout. users demand is multi storeyed layout. But here again automation in Warehouse is quite challenging.

2. The use of elevators to move product from one floor to the next requires time and energy. Multi storied layout in big warehouse need of vertical & Horizontal elevators or couresels is more useful.

3. The elevator is also often a bottleneck in product flow since many material handlers are usually competing for a limited number of elevators. This bottleneck is overcome by modern warehouse automated system.

4. While it is not always possible, particularly in central business districts where land is restricted or expensive, warehouses should be limited to a single story. So here space matrix utilization is more important. Specialized Warehouse experts will overcome this problem by expertise warehousing models.

Height utilization in Warehouse for Optimized Putaway/ Picking Operations

1. Regardless of facility size, the design should maximize the usage of the available cubic space by allowing for the greatest use of height on each floor.

2. Most warehouses have 20- to 30-feet ceilings         (1 foot = 12 inch; 1 inch = 2.54 cm), although modern automated and high-rise facilities can effectively use ceiling heights up to 100 feet.

3. Through the use of racking or other hardware, it should be possible to store products up to the building's ceiling.

4. Maximum effective warehouse height is limited by the safe lifting capabilities of material-handling equipment, such as forklifts. Handy Warehouse Equipments.

Product flow

1. Warehouse design should also allow for straight product flow through the facility whether items are stored or not.

2. In general, this means that product should be received at one end of the building, stored in the middle, and then shipped from the other end.

3. Straight-line product flow minimizes congestion and confusion and avoids time wastage and optimized warehouse operator efforts. Normally picking point storage type should be nearer to Shipping point. So that additional movements in warehouse is avoided.

.

Storage Plan

1. According to the third principle, a warehouse design should consider product characteristics, particularly those pertaining to volume, weight, and storage.

2. Product volume is the major concern when defining a warehouse storage plan.it is more critical plan.

3. High-volume sales or throughput product should be stored in a location that minimizes the distance it is moved, such as near primary aisles and in low storage racks.

4. Such a location minimizes travel distance and the need for extended lifting.

Conversely, low-volume product can be assigned locations that are distant from primary aisles or higher up in storage racks.

1. Similarly, the plan should include a specific strategy for products dependent on weight and storage characteristics.

2. Relatively heavy items should be assigned to locations low to the ground to minimize the effort and risk of heavy lifting.

3. Bulky or low-density products require extensive storage volume, so open floor space or high-level racks can be used for them.

4. On the other hand, smaller items may require storage shelves or drawers.

5. The integrated storage plan must consider and address the specific characteristics of each product.

Normally in any Warehouse Main Layout Objectives

1. Maximizing Warehouse Capacity

2. Efficiency of Warehouse Movements

3. Maximizing Productivity

Planning the Distribution Warehouse

1. The initial decisions of warehousing are related to planning.

2. A master plan of the layout, space requirements, and material-handling design should be developed first and a specific site for the warehouse selected.

3. These decisions establish the character of the warehouse, which, in turn determines the degree of attainable handling efficiency.

Site Selection is very important in any Warehouse setup/ Design Phase

1. Location analysis techniques are available to Improve in selecting a general area for warehouse location.

2. Once warehouse location analysis is completed, a appropriate building site must be selected for installing the storage area/pick path and putaway path.

3. Three areas in a community may be considered for location:

   1. 1) commercial zones, 2) outlying areas served by AGV, Cranes, Fork lifts only, and 3) central or downtown areas.

4. The primary factors in site selection are the availability of services and cost Involved.

5. The cost of procurement is the most important factor governing site selection. It should be too high and wont take the majority of cost required to run the business.

6. A warehouse need not be located in a major industrial area nearing Zones. We cannot maintain in far locations or not in the middle of the town.

7. In many cities, we can observe warehouses among industrial plants and in areas zoned for light or heavy industry.

8. If pallets are to be utilized, the first step is to determine the pallet size.

9. A pallet of nonstandard size may be desirable for specialized products, but whenever possible, standardized pallets should be used because of their lower cost.

10. The most common sizes are 40 by 48 inches and 32 by 40 inches.

11. In general, the larger the pallet loads, the lower the cost of movement per package over a given distance.

12. The packages to be placed on the pallet and the related patterns will determine, to a certain extent, the size of pallet best suited to the operation.

13. Regardless of the size finally selected, management should adopt one size for the total operation.

14. The second step in planning a layout involves the pallet positioning.

15. The basic method of positioning pallets in a mechanized warehouse is a ninety-degree, or square, placement.

16. Square placement means that the pallet is positioned perpendicular to the aisle.

17. The square method is widely used because of layout ease.

WMS – Labor Standards

1. Attendance System

2. Engineering Standards

   1. Engineering standards for each warehouse tasks have to measured and configured.

   2. e.g. Case picking, Piece picking, Pallet handling, Pallet breaking, Forklift Turn, Forklift Travel, Picker travel with various equipment, Battery recharge, Fatigue, other delays

3. Location Co-ordinates, assignment starting point

4. Equipment Safety and other safety standards

5. Expected standard time calculation, at task creation and task execution

6. Incentive programs (Group and individual based on standard time)

ERP Warehouse Management (SAP WM)

Different WMS Products available in Market.

Manhattan WMS (NTier, PkMS, iSeries )

• Highjump WMS

• Infor  WMS (Exceed 9 Web-based, Exceed 2000, Exceed 4000)

• RedPrairie WMS

• SAP Extended WM & WM.

• Others

  • Oracle WMS, Catalyst, etc

Each Product is having Specific Focus in their Design. But among this SAP WM & EWM will have significant importance and it covers all Warehouse Day to Day Operation and Data is more perfect, Accurate & Flexible control over Inventory.

Why and what is the need of WM control system. ?

1. Many People will have a Question in mind à  why a company would need/want to use WM instead of just IM.
   Lot of factors go in before a decision on this can be made. In a nutshell:
   
   1. whether tracking material at storage bin/quant level is required. Many warehouse people will say yes.
   2. Are materials handled in different units (KG/Carton/ L) within the plant? Yes. In any normal warehouse material units are maintained in different UOM’s.
   3. Whether there are different people/process involved from the time a material arrives at the gate till it is stored and vice-versa (Goods issue process)
   4. Whether dangerous / hazardous goods are maintained in the Process
   5. RF / Bar-coding is required and if required what is the exact usage. Because implementing sophisticated technology will increase the cost and also some time time consuming for the warehouse if it undergone damages. Warehouse needs do manual tracking.
   6. Overall complexity if only IM is activated. (ex: picking a material / performing physical inventory etc.)

Not only above mentioned advantage with SAP WM. We are having many more advantages described in coming chapters.

Even when I am working my clients & users are asking why we need SAP WM if we have already IM in Place (Where MM is already in Place.) & also some clients asking we already have SAP WM and why we need to continue SAP WM when SAP MM is more comfortable for Inventory Stock management.

We can say that they already have SAP WM:
1) Is it working well for them?
2) Are the users properly trained?
3) Are the users able to run the WM System without a substantial level of IT or External Consulting support?
4) What would the effort be for them to switch back to a Non-WM Managed Storage Location?

It is my guess that if they are considering moving back to a Non-WM environment, that either:
A) They didn't need WM in the first place and it was initially specified falsely for their requirements or
B) They need WM, but they never organized enough training, or the critical mass of disciplined users, which is required to run a smooth WM system.

I cannot say Handling SAP MM is not good but when Warehouse Size matters and if operation requires more critical and automation required with minimum time in handling Stock placement & Removal and to handle various customer @ same time during peak Receipt & issue operation. SAP WM will help more to the business users.

WM can give you certainly more tight control than MM-IM, because a movement (transfer order) has to be confirmed after the transfer has been done.
WM creates the paper work for Transfer orders. It is my opinion, and perhaps a philosophical one that making more storage locations in one plant to handles different stock Types is very Robust and no experienced and expertise consultants will suggest (Maintaining Stock with more number of Storage location @ IM Level). The idea is to avoid making 20, 50, or 100 Storage Locations in one plant to avoid implementing WM is not good enough. Here SAP WM places a vital role. SAP WM can handle various kind of stocks at very ease step. Also putaway & Picking and Internal WM movements are nowadays automated and very minimum time required between Warehouse Operations. So it removes the thinking when SAP WM is implemented it is more complex for users to handle and more time required to complete the business operation and lot more down time required. I hope by reading these SAP WM book users, Super users & Consultants will get an Positive/ Practical approach towards SAP WM.

Main Warehouse Operations Includes.

• Yard Management and Appointment scheduling

• Quality Checking

• Inventory Control (Stock Take, Cycle count)

• Value Added Services – Special packing, assembling kits, break packing.

• Cross-docking

• Reverse Logistics Management – Processing for Re-distribute/refurbish/recycle/scrap.

Appointment and Yard Management

• Appointment Scheduling for delivery (or Pickup)

  • Supplier, 3PL, DC, Own Transportation, Customer

• Dock and Door assignment to the delivering truck along with the appointment time.

  • Delivery document (PO or other purchase delivery detail)

  • Availability of Dock/Door

• Yard Management

  • Truck/trailer placement for waiting, unloading, loading (shipping)

  • Effective Yard Space Management

  • Demurrage

• Appointment delays

  • Appointment Reschedule

  • Yard Management

  • Supplier Performance

SAP Warehouse Management (SAP WM) is a component of SAP Logistics Execution system (SAP LE) and deals with the following tasks: Inventory management in randomly-organized and fixed-bin storage types; Processing all relevant movements and tasks in the warehouse, such as goods receipt, goods issue, movements within the warehouse. The WM application component is not installed as a stand-alone solution, but is integrated in all areas of the SAP business system (such as MM, SD, PP, QM, and TM). Based on the complexity of the warehouse operations and the business requirements, a Lean WM, or a standard WM or a Decentralised WM or an Extended WM can be selected for implementation.

Functions in WM Application Components include-

WM Inbound: Receipt, inspection, and putaway of inventory (receipt, interface to quality inspection, putaway)

Receiving

• PO, ASN

• Unload, Re-Palletizing, Labeling

• Receipt Creation, Corrections

• Rejections

  • Damaged

  • Excess Quantity

  • Product Not Ordered

  • Product outside date window (expiry, life)

• Express Receiving/Trusted Supplier Receiving

• EDI

• QA, Special Process.

Putaway

• Created in Receiving

• System driven and user driven Putaway

• Putaway tasks

  • Regular Putaway

    • To Reserve, Pick, Bulk storage, staging

    • Cross-dock moves

    • Flow through moves

• Putaway rule configuration based on product attributes, location attributes, distribution strategies.

1. E.g.

   • Empty pick locations are preferable over reserve locations as putaway destination for selected products

   • If open full pallet pick exists for same products with similar attribute, close full pallet pick and move received product directly to staging lane of shipping dock.

WM Outbound: Processing for outbound shipments of goods (pick, pack, load, ship).

Outbound

WM Intra Warehouse: Internal Warehouse Moves/Replenishments, Physical Inventory/Cycle Counting, Production Staging

Optimizing the use of inventory storage space usage by using strategies for stock placement and removal and Optimization of Warehouse Yard with the help of Yard Management System

Optimization of the physical flow of inventory through a facility with effective use of strategies, replenishments

Optimization of resource usage in warehousing operations (equipment and people with Task and Resource Management, Task Interleaving and Cross Docking Functionalities)

WM Interfaces: Integration of specialized material handling equipment (Mobile Data Entry, Label Printing, Conveyors, Scales, Automated Storage and Retrieval Systems)

Integration with 3rd party software solutions for niche applications (freight rating etc.,)

Improvement of operational uptime options (Decentralised WM, Extended WM etc)

Master data maintenance, workflow and archiving

General warehousing management reporting and metrics (with Warehouse Activity Monitor, RF queue monitor and LIS reports)

WMS Functions in Detail

1. Receiving Stock called Putaway

Blind Operation

Advanced Shipping Notification /Electronic Data Interchange

Conventional or Automatic Method

1. Putaway

Single-Dedicated, Random or Combined

Selection: System or Operator oriented

Put Confirmation

1. Picking and Shipping  (Outbound process to Customer)

Pick by Order, Batch, Wave Process

Pick Confirmation Process

Shipping Check Lists

Manifests, Bills of Lading (Shipment)

Creating a Responsive WMS

1. Accurate execution of receiving, storage, and move tasks

2. Error-free picking, replenishment, and shipping

3. Traceability

4. Real-time visibility of inventory availability

   • by SKU, quantity, lot number, serial number and shelf life by location

1. Real-time order confirmation and status for customers

2. Event-driven exception handling

• Facilitate a quick match of available resources to current and expected inbound, replenishment, and outbound workload

  1. Select the best operators and equipment for tasks based upon proximity, skill sets and priority

  2. Task operators to immediately store or cross-dock receipts.

  3. Support returns processing and reverse logistics

  4. Use task interleaving to minimize deadheading

  5. Improve order consolidation, wave planning, inventory allocation, and pick sequencing

  6. Identify consolidation opportunities to free space and reduce outside storage requirements

  7. Support bill of material, work order, and value-added processing

  8. Update inventory records as events occur

  9. Provide accuracy that allows replacement of full physicals with scheduled cycle counts

  10. Time stamp each transaction and identify the operator who performed it

  11. Provide feedback to the workforce and support performance measurement

  12. Measure supplier and carrier performance

Warehouse arranging the pallets

Forklift Operations.

Locations

• Location levels

  • Zone

  • Aisle

  • Level

  • Bin

  • Location ID

  • e.g AA – 01 – 04 (Aisle – Level - Bin)

• Location Types

  • Reserve

  • Case Pick

  • Unit Pick

  • Bulk storage location

  • Abandon/issue zone

  • Special areas (Goods in, shipping, special processing, hazardous, fast pick, promotions, flow through, cross dock).

Order Processing is Determined by Following Factors

• Order Type

  • Store

  • Customer

  • Other DCs (transfers)

• Order grouping (wave)

  • Product availability

  • Picking volume

  • Delivery date & time

• Order grouping (wave)

  • Staging Lane, Shipping Dock, Door

  • Pick methods, techniques

  • Packaging details

• Order Release/processing

  • Create picks (units and case picks)

  • Create full pallet picks

  • Create replenishments

  • Create Loading

Picking

Picking Technique

• Order Picking

• Batch picking or Line picking

• Full Pallet or bulk storage picks

Picking Method

• Paper picking – Pick list, label

• RF picking

• Voice picking

• Wearables picking

• Pick to light

Other picking classifications

• Man to product (AGV, Manual)

• Product to man (Carousels, A-Frame)

Picking

• Pick sequencing

• Pick task grouping

  • Zone, hazardous materials, packing containers, restricted products, Packing instructions

Shorts Management

• Delayed pick

• Markouts

• Event Driven Count

Advantages of Warehouse Management

WM module provides flexible, efficient, automated support that enables you to:
• Manage complex warehouse structures
• Define and manage storage areas and storage bins in the warehouse
• Manage several different ‘Types of storage’
o High rack storage, Cold storage etc.
• Execute stock placements and removals using different put-away and picking strategies
• Interface to external non-SAP warehousing systems
• Manage inventory at the storage bin level.

Disadvantages of WM
1. Transaction intensive -
2. Master data – Extra master data must be maintained when using WM. Each material master requires two extra views to maintain the stock placement/removal strategies, fixed bin information, replenishment quantities, etc. As well storage bins must be maintained in the system.
3. Complexity – WM adds a layer of complexity to the system. Because transfer orders are typically initiated from IM transactions reversing a transaction becomes more difficult.
4. Failed transfer orders – A large degree of automation can occur in WM by having IM transactions generate automatic transfer order creation in WM. Quite often automatic transfer order creation will fail due to a lack of inventory, inventory not being in the bin the system expects, or incorrect master data. If a failed transfer order is not reprocessed often future automatic transfer orders will fail. As a result one WM error can compound into two or three WM errors. Monitoring failed transfer orders is a daily task.
5. Discipline – Because of the complexity and failed transfer orders that can occur in WM a strict discipline is required to maintain inventory accuracy. In WM inventory accuracy is not limited to count but also includes location.
6. Cycle counting – Cycle counting is more complicated when using WM as opposed to just IM. Cycle counting in WM is a four-step process as opposed to three steps in IM. In addition, when performing a cycle count in WM the particular storage bin will be blocked for stock placement/removal. Thus, if automatic transfer order creation is initiated from an IM transaction at the time a WM cycle count is active the transfer order will fail due to the bin being blocked from the cycle count.

Warehouse Solution

There are three solutions that SAP provides: SAP-IM, Lean SAP-WM and Full SAP-WM that meet or address the different requirements of warehouse processes. SAP-IM is a basic requirement before Lean or Full SAP-WM can be implemented. SAP-IM documents the stock movements of a storage location and accounts for the overall stock level of that storage location. Full SAP-WM is an extension of SAP-IM. It manages the stocks up to the storage bin level and monitors the overall operation of the warehouse. Additionally, it manages and optimizes different warehousing procedures in the warehouse. A scaled down version of SAP-WM is Lean SAP-WM. It monitors stock at the storage location level but it only supports fixed bin warehousing.

SAP-IM (SAP Inventory Management)

The straightforward stock placement and stock removal processes of SAP-IM are recommended for small, low complexity warehouses. The stock counting capabilities of IM is also adequate (rather than quantities within a specific bin location) at warehouses with lesser SKUs. This recommendation applies for low complexity finished package warehouses, all bulk depots and all raw material warehousing operations.

Advantages

Straightforward and simpler warehouse procedures. Less complicated tasks and steps to be carried out by the warehouse personnel Supports fixed bin warehousing

Disadvantages

Random warehousing is not supported.

Difficult to locate oldest shelf life product in the warehouse.

Warehouse optimization is not possible.

Does not support stock placement and stock removal strategies.

Distributed warehouse personnel workload is not possible.

Lean Warehouse Management

Lean Warehousing is used to manage stocks at the storage location level with fixed bin locations assigned to individual materials. Transfer Orders are still created and serve as pick lists. Lean Warehousing is ideal for warehouses where picking still takes place using a picking list without the complexity of full WM.

Advantages

Fixed bin warehousing is supported.

Wave picking is supported. We can group the Warehouse activities w.r.to shift/ Day/ Week. So that we can reduce the frequent loads and combining it in one activity.

Distribution of workload still possible for warehouse Operators.

Disadvantages

Does not support random warehousing.

More complex picking procedure compared to SAP-IM as transfer orders have to created and confirmed (same  as  full SAP-WM).

Warehouse optimization is not possible because of fixed bin warehousing.

Full SAP-WM (SAP Warehouse Management)

As warehouses grow in size and operational complexity, it is more required the need for a full  Set-up of SAP-WM becomes a necessity. SAP-WM optimizes and streamlines warehouse operations. However, its added complexity over SAP-IM is its single drawback.

Advantages

Information about the exact location of a stock in the warehouse is available.

Random warehousing is supported.

Stock placement and stock removal strategies are available.

Distribution of workload for warehouse Operators

Supports all inventory counting methods practised in the Normal Warehouse

Warehouse optimization is more possible.

Can be linked to RF technology to further improve stock movement processes and avoids wastages and economically utilize the time in Warehouse Operation.

Disadvantages

More complex & advanced put away and picking procedures in the warehouse may adversely affect warehouse operation.

SAP-Warehouse Management is suggested for large, complex warehouses. Its storage bin level management capability, high level integration with the rest of the SAP modules, stock management strategies, random warehousing capability and cycle counting support can be of much help in improving efficiency in the day to day operations of the warehouse. Its ready integration with RF technology will further boost SAP-WM efficiency. SAP-WM has one disadvantage; it places an additional workload on warehouse personnel to enter transactions related to handling and movement of product within the warehouse. Since SAP-WM manages more accurate and more specific activities than SAP-IM, more Coarse transactions are required in the system.

Below is the comparison of the three solutions.

Inventory Management

Inventory Management tracks the quantity and value of a material as it Progress throughout the location.

Stock is managed by storage locations, which are used to represent logical sections of the site where goods are stored.

Inventory Management Provides very limited information about Individual lots, such as which materials are stored in specific storage bins.

Material Handling Interfaces used in Normal Warehouse. This Interfaces are set-up though WCS or through EDI/IDOC Methods.

• Conveyor Handling Interface to SAP

• Sortation Process

• Palletizer

• AGVs à

• Pick (Pack)-To-Light

• Carousel interface to SAP

• AS/RS à

Systems Interfaces

• Purchasing (MM)

• Order Management (SD)

• MRP / MES (PP)

• Labor Standards / LMS (HR)

• Load Planning (Normally used in all type of Warehouses).

• Freight Rating / TMS (Logistics)

• Slotting (Special functionality used in big Warehouses)

Receiving

• Advanced Shipping Notifications / Purchase Order (PO)Receiving

• Carrier Appointment Scheduling (CAS)

• Pre-Tagged Receipts. Generally called ID organized Receipts.

• Blind (Unanticipated) Receipts

• Load Tagging/Labeling. Very important process used in putaway & Picking operations.

• Quality Assurance (QM Management)

• Returns (Returns Process).

Warehouse Management Interfaces

This page provides information about the links for most of the FAQs in the area of WM Interfaces with external systems that includes Radio Frequency Devices, Label Printers (Normally called Zebra Printers because the Bar code is looking like continuous patterns of lines with mix of black and white colour lines, Material Handling Devices like Flow Conveyors, Automated Storage and Retrieval Systems (WM ASRS, Warehouse Execution Systems (WM WES). Due to the nature of the area, the information provided in this section will be functional as well as technical.

The WM Interfaces in a warehouse can include

Interfaces with Radio frequency Devices (RF)

Interfaces with Label Printers (Zebra printers)

Interfaces with Material Handling Devices (MHS)

Interfaces with Automated Storage and Retrieval Systems (AS/RS)

Interfaces with external Warehouse Execution Systems (WES)

This section should also provide Information regarding

SAP standard WM Interfaces for IDOCs and BAPIs

Business Functionality of the WM Interfaces

Configuration Settings Required for the WM Interfaces.

ASRS- Automated Storage Retrieval Systems

Numerous Warehouses operate automated storage and Retrieval systems( ASRS). These can be horizontal carousels, vertical carousels, or vertical lift modules (VLMs). These storage machines utilize chain and track linkages that rotate box-structure shelving modules in vertical or horizontal; plane. Carousels are available in a variety of load carrying capacities, shelf module dimensions, and heights. When activated, the shelves rotate to bring the requested bin location to the operator. Carousels are integrated with SAP systems so that the machines operate with SAP ERP.

Here I am sharing advantages of ASRS.

Main preference of ASRS is we don’t need to pay cost to workers to do warehouse operations that could be possible by machines.

Organization paying salaries without considering whether they get enough work load.

Automated ASRS systems functioning as per design and it avoids mal-functioning, Errors and thereby avoiding human errors and increase process optimization Also organizations can efficiently handles the market competition and competitors and earn good profit.

Radio Frequency (RF) Solution in SAP Warehouse Management

The ability to run SAP transactions directly on radio frequency equipment through a handheld or forklift mounted device eliminates the need for middleware since the devices connect to SAP R/3. Due to the varying screen size of the different RF devices, SAP has developed special transactions with very easy-to-use logic. The SAP solution is focused on real-time handling of material flow through RF scanning devices (Motorola, Philips, and Baxtronics Devices). The concept of having the screens and the business logic within the SAP system makes it easy to administrate, easy to distribute new processes to each device, and easy to set up integration test scenarios. Also it is client focused. Based on their requirement we need to design and implement the Solutions/ HW Equipments.

RF enabled Warehouse

SAP does not use any middleware product. On the one hand, this saves a lot of money and, on the other, it reduces the effort required to work with additional software serving as a middleware product. Furthermore, it enables you to keep the number of partners low. It is relatively easy to implement additional processes or change existing functions, since the entire business logic lies within the SAP ABAP workbench. In essence it provides seamless integration with SAP.

Now you might have question, if I have any of above type of warehousing process configured in SAP system and you would like to implement RF solution, can I implement RF solution? Technically RF (Radio Frequency) solution can be implemented for any type of warehousing function regardless IM, Lean or Full warehouse. Analyze the requirement and need to implement RF solution. Standard SAP provides in built SAP RF Applications which covers all warehouse process defined using LM** Transaction.

Steps in SAP RF Implementation (Scanning):

SAP WM configuration

SAP Console / SAP Web console configuration

Telnet server configuration (through which we can connect the SAP system to external HW Devices).

Network Security design (NSD)  and SAP Radio Frequency architecture

ABAP development (SAP RF programming) in case standard LM** t code does not meet the business requirement. (Covered in Detail in implementing RF Device in Warehouse Chaper).

RF Antenna set-up in Warehouse for using RF/RFID Applications. (Picking/Putaway/Internal  Warehouse Operations)

Selecting RF Antenna in Warehouse is very much important which facilitates automated RF Warehouse Functionalities such picking, Putaway & other internal warehouse Operations. Here Antenna selection and related articles are not related but even readers of the book will get visibility on RF Antenna selection and it’s Importance.

ITS mobile is a SAP technology alternate to SAP Console to connect mobile devices to a SAP system in order to run applications based on the widely used Dynpro programming model. In simple terms, it used to run a Web-dynpro-based application on a browser-based mobile device such as a handheld mobile device or Warehouse forklift. Details in elaborate given in Implementing RF Devices in RF Device Implementation chapter.

Warehouse Handling Equipments

We can see Warehouse operator can use automated Forklifts Equipped with AGV’s, Laptop, RF controls/ Wi-Fi activated and hand held/ Vehicle Mounted scanners for scanning Pallets Labels.

Difference between WM and IM

The primary difference between managing stock in WM & IM

• In IM, the system can only display the total stock of a material for a storage location. If a warehouse is small and easily manageable, then the use of IM may be sufficient to fulfill your needs.

• In WM, on the other hand, offers the capability to manage stock quantities in each individual storage bin in highly complex storage facilities.

• This means that, with WM, you can optimize the use of all storage bins, mix pallets belonging to several owners in randomly slotted warehouses and know exactly where a particular material is located in the warehousing complex at all times.

Warehouse Implementation Methods

• Centralized Warehouse Management

• ( WMS) as a stand-alone centralized system that is dependent of a central Enterprise Resource Planning (ERP) System.

• Decentralized Warehouse Management

• Warehouse Management System

• Decentralized Warehouse Management system is responsible for goods receipt, storage

              and distribution

Lean Warehouse Management

• This warehousing structure makes it possible to create transfer orders for deliveries when no storage bins are managed in the system.

            For Lean WM, no goods receipts or goods issues are processed as a subsequent process    in WM. This means that no bin data and no stock is updated at the storage bin level using quant.

            Instead, this transaction takes place at the storage location level. It is used primarily to    handle pick orders for deliveries.

Lean-WM

Implementation of the basic functions of the Warehouse Management module (WM) in simply structured warehouses with no stock management at storage bin level.

Implementation of all functions in Warehouse Management (WM)

The use of the WM transfer order as a putaway order offers you the following advantages:

Determination of target data for transfer orders

Splitting transfer orders according to target data

Printing transfer orders or transmitting them in IDoc format

Creation of actual data from the putaway

Confirming transfer orders

I hope this Blog article is very useful for the consultants.