1. SAP Extended Warehouse Management
Frédéric MAINAUD
Solution Expert
SAP FRANCE
Mardi 2 juin 2009

2. Agenda
History and Release
Functionalities
ERP WM versus SCM EWM 7.0 – Choice criteria
Questions ?
© SAP 2009 / Page 2

3. History of SAP’s Warehouse Management
1993
1995
1997
1998
2000
2002
1993 - R/3 Release 2.0/2.1
2003
2004
2007
2002 - R/3 Enterprise Release (Ext 1.1)
Storage Units
Parallel Processing
Task & Resource Management (TRM)
2004 - R/3 Enterprise Release (Ext 2.0)
1995 - R/3 Release 3.0 / 3.1
Integration
• Production Planning
• Quality Management
• Logistics Information System
ERP WM
Yard Management
Cross-docking
Value Added Services
1997 - R/3 Release 4.0
2005 – SCM 5.0 SPM
Rough Workload Estimate
Picking Waves / Two Step
Warehouse Monitor
Integration to HR
1998 - R/3 Release 4.5
WMS Stand Alone
Prototype of RF
2000 - R/3 Release 4.6
Native RF / SAP Console
Handling Unit Management
Packing Station
© SAP 2009 / Page 3
2005
Extended Warehouse
Management
2007 – SCM EWM 5.1
Labor management
RFID Enablement ...
2008 – SCM EWM 7.0
Production Supply
Graphical Warehouse
Layout ...

4. Service Parts Alliance for Service Parts
Management (2002)
Concept:
~ 80% common processes/ technology
Leverage Ford and Cat Logistics volumes
Commercialize system software
Exit development
Become implementers and integrators (Cat
Logistics)
Intellectual Property
Know-how
Capability
Scalability
Benefits:
Lower development costs
International capabilities
Natural (planned) technology
upgrade path
Increase 3PL market opportunities (Cat
Logistics)
Shared Risks between Cat Logistics, Ford, and
SAP
© SAP 2009 / Page 4
The Result:
State of the Art Service Parts
Management Solution Across
Multiple Industries
Sales (CRM)
Planning (SPP)
Sourcing (ATP)
Warehousing (EWM)
Coordination (ERP)

5. Decision SCDP CAT/Ford to develop new WMS
Reasons for developing a new SCM-based WMS rather than delivering a highly
modified LES:
Requirements for data volume, performance and process flexibility made a
new architecture necessary
Following the Decentralized SAP Warehouse concept
Extend the basic concept of Transfer Orders to enable process flexibility
Extend Inventory concept to enable data flexibility and accuracy
High risk to change architecture in a mature application with thousands of
live customers (contract: 80% to be retrofitted into standard!)
Mind Shift from Managing Stocks to Controlling Processes
© SAP 2009 / SCM Review Project
2007 Page 5

6. SAP WM Solution Offerings
Raw
Materials
Simple
Requirements
© SAP 2009 / Page 6
SCM EWM Decentralized
ERP WM with
Extensions (TRM, YM,
VAS…)
Decentralized
ERP WM
Decentralized
ERP WM
Centralized
Finished
Goods
Complex
Requirements

7. Enterprise, SCM EWM and Network Focus
Centralized Scenario
Decentralized ERP Scenario
ERP
Logistics
ERP
Other
ERP
ERP
FI/CO
SAP
ERP
SAP
LES WM
SAP
LES WM
Extended
Extended
Extended
WM
WMWM
SCM EWM
Add-On
SAP SCM
WM
WM decentralized
SAP Warehouse Management in SAP ERP
SCM Extended Warehouse Management
(centralized or decentralized WM)
Enterprise
Focus
© SAP 2009 / Page 7
Network Focus

8. Overview of Processes with decentralization
ERP
SAP EWM
ERP
Sales Order
Purchase Order
BAPI
Outbound
Delivery
Replication
BAPI
Goods Issue
Confirmation
In / Outbound
Delivery
BAPI
Inbound Delivery
Replication
Posting of
goods movement
BAPI
Confirmation
Invoice
Invoice
Note: Master Data replication uses CIF
© SAP 2009 / Page 8
Goods Receipt

9. Agenda
1.
2.
3.
4.
History and Release
Functionalities
ERP WM versus SCM EWM 2007– Choice criteria
Questions ?
© SAP 2009 / Page 9
2007
9

10. EWM Inbound Process Overview
Slotting
Receive ASN Data
Putaway Bin
Determination
Transport
Unit Arrival
Unload
Transport Unit
Manage
Transport Unit
Goods
Receipt
Deconsolidation
(Internal
Routing)
Putaway
Process Exceptions/Manage Work in Process
© SAP 2009 / Page 10

11. EWM Goods Receipt Process using Routing of
HU’s
1
Quality Inspection
GR-Zone
Door 1
Repack/
Deconsolidate
4
3
6
2
Door 2
Door 3
5
7
Pallet Storage
8
Small Parts Storage
© SAP 2009 / Page 11

12. EWM Outbound Process
Order/
Deployment
Work
Assignment
Route
Determination
Picking
Wave
Management
Packing
Picking
Bin
Determination
Shipping Staging
Process Exceptions/Manage Work in Process
© SAP 2009 / Page 12
Warehouse
Orders
Loading
and
Goods Issue

13. Overview: EWM Goods Issue Process
Packing Work Center
GI-Zone &
Packing (2)
Door 1
PHU1
PHU2
Door 2
Pallet storage
PHU1
PHU2
Small Parts Storage
© SAP 2009 / Page 13
Door 3

14. Documents in the Outbound Process
WHR 1
WHR1
WHR1
WHR1
WHR1
A list of Warehouse Requests is created
Wave 1
These Warehouse Requests are grouped
into a Wave
Task 1
WHR1
WHR1
WHR1
WHR1
…
Task n
WHR1
WHR1
WHR1
WHR1
All Tasks will pass the “Black Box”
warehouse order creation
Warehouse Order
Creation (Bundling)
WO 1
WO 2
WO n
Task
WHR1
WHR1
WHR1
WHR1
Task
WHR1
WHR1
WHR1
WHR1
Task
WHR1
WHR1
WHR1
WHR1
© SAP 2009 / Page 14
Based on the wave Warehouse Tasks
will be created
Warehouse Orders are created according to the
Creation Rules. They can contain items from
multiple deliveries

15. Warehouse Order Creation – Schematic Flow
Grouping by Activity Area:
AA 01
WT
WHR 1
WT
WT
WT
WT
WT
WT
AA 02
WT
WHR 2
WT
WT
WT
WT
WT
AA 01
AA 02
a) WOCR1 a) WOCR3
b) WOCR2 b) WOCR2
WT
c) WOCR3
WT
WT
WO Creation Rules (Customizing):
WT
AA 03
WT
WT
1
2
3
Try WOCR3
Created Warehouse
Order 4711
WT
1
WT
3
WT
2
WT
4
AA 02
WT
3
4
WT
4
5
Try WOCR2
WT
1
WT
2
6
© SAP 2009 / Page 15
AA 02
Created Warehouse
Order 4712
WT
1
7
WT
2
AA 02
a) WOCR1

16. EWM Internal Processes
Kitting
Replenishment
Process Exceptions/Manage Work In Process
© SAP 2009 / Page 16
Rearrangement

17. Additional Warehousing Processes
Yard Management
Quality Inspection
Engine
Management and
Tracking of Vehicles
and Transportation
Units from yard
check-in, throughout
the yard movements
tasks, and yard checkout
Service oriented Quality
Inspection Engine to
support the quality
processes for warehouse
management
Environmental
Health & Safety
EH&S data and checks
used in Product
Storage, Shipping
Documents and
Transportation Routing
Process Exceptions/Manage Work In Process
© SAP 2009 / Page 17
Foreign Trade/
Bonded
Warehouse
Customs management
SPL Screening
Re-exports
Duty unpaid returns

18. Labor Management
Labor management modules are used to better manage the
time and productivity of warehouse workers. They consist of
the ability to plan, measure, view, and simulate labor activities.
For effective management of the labor supply chain, it is necessary to:
Get the right person to the right place at the right time
Track people throughout the day and measure performance on individual tasks
Provide alerts when performance falls below expectations
Calculate costs and incentives for employees
Simulate impacts to labor as a result of changes to the process flow or inventory
Highlight the cost and efficiency of individual employees, facilities, teams, and the
enterprise
© SAP 2009 / Page 18

19. Warehouse Cockpit
■
Intended for Supervisor and
Warehouse Manager
■
Monitors team performance
■
Monitors the performance of
areas or the whole warehouse
■
At-a-glance view of several key
figures enables you to react to
critical situations quickly
© SAP 2009 / Page 19

20. Agenda
1.
2.
3.
4.
History and Release
Functionalities
ERP WM versus SCM EWM 7.0 – Choice criteria
Questions ?
© SAP 2009 / Page 20

21. SAP WMS solutions
ERP WM vs. SCM EWM 7.0– Choice criteria
EWM 7.0
ERP WM
Separate component SCM EWM or Add-on ERP
Part of SAP ERP all releases
Standard ERP WM product
TRM works with ERP WM
4800 customers are live with ERP WM
We continue to support ERP WM
Does not replace ERP WM
New WMS product.
Developed for large and complex
warehouses/distribution centers with high volume and
velocity
Can be used in combination with ERP WM in the
same landscape
14 sites are live for 11 customers (april 2009 status)
+ 60 projects in progress with more than 20 are due to
go live before Dec 2009
© SAP 2009 / Page 21

22. SAP WMS solutions
LES WM vs. EWM – Choice criteria
Key Question:
When do I choose ERP-WM and when do I choose SCM EWM
Guidelines:
Characteristic / Requirement
SCM
EWM
ERP
WM
ERP
DWM
Service Parts Industry
Highly Complex Warehouse Requirements – Picking, Packing,
Deconsolidation, Task Management, YM, VAS, Kitting, Slotting, Contract
Packaging, Extensive Cross-Docking, RF, Automation
Basic to Complex Warehouse Requirements – Picking, Packing, Task
Management, YM, Light VAS, Light Cross-Docking, RF, Automation
High Volume
DWM : Decentralized Warehouse Management
© SAP 2009 / Page 22

23. SAP WMS solutions
LES WM vs. EWM – Choice criteria
Characteristic / Requirement
Stock Location
Basic Pick / Placement Strategies
Wave Picking / Wave Management
Replenishment
Resource Management
Yard Management
Value Added Services
Cross Docking
Physical Inventory
© SAP 2009 / Page 23
SCM
EWM
ERP
WM
ERP
DWM

24. SAP WMS solutions
LES WM vs. EWM – Choice criteria
Characteristic / Requirement
RF Screen Enhancement
Deconsolidation During Putaway
Stock IDs
Slotting / Rearrangement
Kitting
Quality Inspection
Customer Returns
Discrepancy Processing for Stock Transport Orders
Delivery Split for Outbound Orders
EH&S Integration
© SAP 2009 / Page 24
SCM
EWM
ERP
WM
ERP
DWM

25. SAP WMS solutions
WM vs EWM – Selections criterias
Characteristic / Requirement
Serial Numbers
Labor Management
Delivered BI Content
© SAP 2009 / Page 25
2007
SCM
EWM
ERP
WM
ERP
DWM

26. SAP Extended Warehouse Management
Questions ?
© SAP 2009 / Page 26
2007
26

27. Thank you!
© SAP 2009 / Page 27