S/4 HANA Warehouse Management Offerings

S/4 HANA Warehouse Management Offerings

Februrary 21, 2020

2 © 2020 ASUG Confidential

AGENDA❖ Intro to Mindset Consulting

❖ History and evolution of SAP warehouse

management

❖ Overview of S/4 HANA WMS offerings

❖ Key differences between LE-WM, Stock Room

Mgmt and EWM

❖ Migration Options & Strategy

❖ How do you decide on a deployment strategy?

❖ Mobility – Fiori & ITS


ABOUT ME • Started in SAP in 1998 (at the age of 12)

• Certified in MM and LE-WM

• Self proclaimed warehouse geek

• 1st time ASUG speaker

• Practices yoga 5x week

• Greatest passion: travelling, exploring and

adventuring


OUR MISSION

At Mindset, our mission is to create

remarkable software experiences for work.

We empower people with our SAP

solutions for innovation, productivity, agility

and experience.


MINDSET SAP CAPABILITIES

Design Thinking & AppHaus

● Process or Application Design Thinking

● One-day Design-to-Prototype Delivery Option

● Complete Agile Estimation & Delivery of apps to Fiori/UI5

● Full visual definition of SCP use cases

● Workflow optimization ahead of S/4 migration

● SAP Architect-facilitated AppHaus & Services

SAP Innovation & Digital Transformation

● Journey Maps for Business Transformation

● Technology Stack Definition for Business Transformation

○ Cloud first strategy, Micro APIs, etc.

● Rapid Delivery of POC for Business Transformation

● Leverage latest technology to enhance the user experience

○ SAP Co-Pilot, Machine Learning, RPA, Leonardo etc.

●

SAP Cloud

● Strategy and Enablement

● Fiori Cloud for S/4HANA and Business Suite

● CX/UX, Web Design and Application Development

● Microservices using Cloud Foundry

● Mobile Strategy and Development

● SAP HANA Design and Development

● API Management and Integration

SAP S/4 HANA Digital Transformation

● Agile S/4 UI/UX Development & Delivery

● Design Thinking-led S/4 Innovation workshops

● S/4 HANA WMS Advisory

● S/4 HANA WMS Implementation Services

● ITS Mobile Design and Development




management



Mgmt and EWM


❖ Mobility – Fiori and ITS Mobile



History and Evolution of SAP WM (1994 – Present)

1994 2006 - 2014 2015 2016 2017 - 2019 Future

S/4 HANA 1511

•Only decentralized EWM offered

S/4 HANA 1610

•EWM 9.4 offered as an embeddedapplication component eliminating the need to replicate business partners, master data or transactional data

SCM EWM (5.0-9.1)

•Only decentralized EWM offered

•Evolved into a best of breed WMS system with new innovative functionality (e.g. slotting, rearrangement, kitting, VAS and tighter integration to TRM, QM, YM and automated systems)

SAP R/3, ECC

•Basic warehouse management functionality (e.g. storage-bin level inventory mgmt., stock putaway and removal strategies, ability to track all goods movements, mobile data entry)•Widely adopted with over 7000+ customers worldwide

S/4 HANA 1709/1809

•Continues to evolve with new functionality (e.g. pick by cart, embedded analytics, advanced labor management, enhanced warehouse optimization)

•EWM 9.5 built on S/4 HANA platform and HANA database

S/4 HANA 1909

•Release of Stock Room Management




management



Mgmt and EWM





S/4 HANA WAREHOUSE OFFERINGS

Plant

SLOC 1 SLOC 2 SLOC 3 SLOC 4 SLOC 5 SLOC 6 SLOC 7

Inventory Mgmt

LE-WMStock Room

MgmtEmbedded EWM Basic

Embedded EWM

Advanced

DecentralEWM on

Netweaver / SCM

Decentral EWM on S/4

HANAScheduled to be phased out in 2025

SAP S/4 HANA


STOCK ROOM MANAGEMENT

• Basically the ECC WM component (LE-WM) without the following capabilities or functionality:

✓ Task & Resource Management✓ Value Added Services✓ Yard Management ✓ Cross-Docking✓ Wave Management✓ Decentral WM

• Included in the S/4HANA (1909) Enterprise Management license

• Provides customers using standard ECC WM the ability to keep their existing warehouse

structures untouched and continue to use basic warehouse functionality in S/4 HANA

beyond 2025

• All new warehouse related enhancements or functionality will occur within EWM and not

Stock Room Management

❖ Ideal for low-complexity warehouses that would not benefit from the added functionality of EWM

❖ Helps accelerate and reduce risk of deploying S/4 HANA


EMBEDDED EWM

Embedded EWM first available with the release S/4 HANA 1610 and has two versions:• Basic embedded EWM• Advanced embedded EWM

Key advantages of embedded EWM:

• Simplified Systems Landscape• Seamless Integration• Accelerated Implementation• Flexible Licensing• Real-time Insights• Reduced Data Duplication


EMBEDDED EWM: BASIC VS. ADVANCED

• Inventory management optimization • (e.g. slotting)• Inbound process optimization • (e.g. deconsolidation)• Outbound process optimization (e.g. waves)• Yard management (e.g. dock appt

scheduling)• Labor management• Value Added Services (VAS)• Kitting • Cross-docking• Warehouse billing• TM integration• Material Flow Systems (MFS)

• Inventory management• Inbound processing• Outbound processing• Internal warehouse processes• Physical inventory• Reporting

S/4 HANA Embedded EWM

BASIC

S/4 HANA Embedded EWMADVANCED

❖ Basic embedded EWM is included in the S/4HANA

Enterprise Management license

❖ Advanced embedded EWM and decentralized EWM

require additional licensing costs


Embedded EWM – Reduced Data Duplication

❖ No need to duplicate the following master✓ Business Partners✓ Material Master Records✓ Batch Master Records

Master Data

Configuration

Transactional Data

Predecessor Documents

Quality Inspection Document

S/4 HANA – Embedded EWM

Shared Material Master

ERP EWM

Material Master

Material MasterReplicate Materials



Master Data

Configuration

Transactional Data



❖ No need to duplicate configuration in both systems✓ Handling Unit Types✓ Packaging Material Types✓ Shipping Conditions✓ Among many other things…

ERP EWM

ECC Configuration

EWMConfiguration


Shared Configuration



Master Data

Configuration

Transactional Data



❖ No longer need intermediary documents✓ Outbound Delivery Request (ODR)✓ Inbound Delivery Notifications (IDN)

ERP EWM

Outbound Delivery

Outbound Delivery Request (ODR)

Replicate Delivery

Outbound Delivery Order

Outbound Delivery


S/4 HANA Outbound Delivery

EWM Outbound Delivery Order



ERP EWM

Purchase Order

Expected Goods Receipt

Replicate Orders

EWM Inbound Delivery

Inbound Delivery


S/4 HANA Purchase Order

S/4 HANA Inbound Delivery

EWM Inbound Delivery

Direct Read

Master Data

Configuration

Transactional Data



✓ No longer need Expected Goods Receipt (EGR)✓ Can receive directly with reference to purchase order

and production order



Master Data

Configuration

Transactional Data



✓ Eliminate QIE Inspection Document✓ QM is performed with reference to a single document (S/4 HANA

inspection lot triggers follow-on function automatically)

ERP EWM

Inspection LotQIE Inspection

Document

EWM Follow-On Functions


S/4 HANA Inspection Lot

EWM Follow-on Functions


Decentralized EWM

Classic Decentral EWM (versions < EWM 9.5)• Deployed on either SAP Netweaver or separate SCM stack with any

database. • Connect to S/4 HANA using remote function calls and CIF• End of life is schedule for 2025

Decentral EWM 9.5 • Built on S/4 HANA platform and HANA database (released May 2019)• Core Interface (CIF) not required to transfer master data• ALE / IDOC interface will be used to transfer master data• Bi-directional transfer of transactional data will continue to use the same

queue RFC interface• Essentially the same functionality as embedded EWM, with a few key

exceptions: ✓ Re-use of delivery number✓ Synchronous stock posting with IM✓ Better visibility to ERP storage location assignment✓ New & enhanced Fiori apps

PlantShipping PointVendorCustomer

Material Master

LocationBusiness Partner

Product Master

ERP Transactional

Data

EWM Transactional

Data

CIF

CIF

qRFC

SCM/EWMERP

PlantShipping PointBusiness Partner

Material Master

LocationBusiness Partner

Product Master

ERP Transactional

Data

EWM Transactional

Data

IDOC

IDOC

qRFC

EWM on S/4 HANAS/4 HANA


Embedded EWM vs. Decentralized EWM

Criteria Embedded EWM Classic Decentral EWM EWM 9.5 on S/4 HANA Platform &

DatabaseMaster Data No transfer of master data

between the systems

Transfer of master data required via

CIF

Transfer or master data required via

ALE / IDOC

Core Interface CIF is NOT required CIF is required CIF is NOT requiredCustomizing Objects

Transfer

NOT required Required Required

Document duplication Inbound and outbound

deliveries are created directly in

embedded EWM

Replica of inbound and outbound

deliveries called Inbound Delivery

Notification (IDN) and Outbound

Delivery Request (ODR) are created

in decentralized EWM

Same as classic decentral EWM

Expected Goods Receipt NOT required Required in cases where no

deliveries are created


Quality Inspection No inspection document is

required

Inspection document created

through Quality Inspection Engine

and Inspection lot from ERP are

required





management


❖ Key differences between LE-WM, Stock

Room Mgmt and EWM





S/4 HANA WMS Deployment Options: High-Level Comparison

Stock Room

Management

Embedded

EWM – Basic

Embedded

EWM – Advanced

Decentralized

EWM

Inbound Processing ✓ ✓✓ ✓✓✓ ✓✓✓

Outbound Processing ✓ ✓✓ ✓✓✓ ✓✓✓

Internal Warehouse Movements ✓ ✓✓ ✓✓✓ ✓✓✓

Physical Inventory ✓ ✓✓ ✓✓✓ ✓✓✓

High Volume ✓✓ ✓✓✓ ✓✓✓ ✓✓

Operational Complexity ✓ ✓✓ ✓✓✓ ✓✓✓

Value Added Services ✓✓✓ ✓✓✓

Kitting (Make-to-Stock, Make-to-Order) ✓✓✓ ✓✓✓

Slotting ✓✓✓ ✓✓✓

Wave Management ✓✓✓ ✓✓✓

Advanced Integration with TRM, QM, YM ✓✓✓ ✓✓

Integration of Labor Management ✓✓✓ ✓✓

Integration with External Automation System

(MFS, ASRS)

✓ ✓✓ ✓✓✓ ✓✓✓

Reporting Capability ✓ ✓✓ ✓✓✓ ✓✓

RF / Fiori Capability ✓✓ ✓✓✓ ✓✓✓ ✓✓

Multiple ERP Systems Connect to EWM ✓✓✓

3rd Party Manage Warehouses ✓✓✓

24x7 Capability ✓✓✓


Key Functional Differences: Outbound Processing

OutboundProcessing

LE-WM Stock Room Mgmt Imbedded EWM

Picking Strategies ✓ Multiple picking strategies supported

✓ Same as LE-WM ✓ Same as LE-WM

Complex (multi-step) outbound processing

✓ Not supported ✓ Not supported ✓ Supported with the use of process-oriented storage control

✓ Material Flow Systems for direct PLC and conveyor system communication

2-step picking ✓ Possible to pick cumulativequantity for several orders in onestep and distribute to individualorders in a second step


Wave Picking ✓ Basic wave management functionality• Deliveries can be grouped by

route, carrier, ship-to party

✓ Same as LE-WM ✓ Advanced wave management functionality• Automatic wave creation• Waves can be created based on various

criteria such as activity area, route, carrier, product, ship-to party, etc.

• Possible to assign same delivery to multiple waves

Packing ✓ Pick and pack into Handling Units

✓ Weigh scale integration

✓ Same as LE-WM ✓ Same as standard WM

✓ Cartonization

Pick to Cart ✓ Not supported ✓ Not supported ✓ Fully supported


Key Functional Differences: Internal Warehouse Processes

Internal Warehouse Processing

LE-WM Stock Room Mgmt Embedded EWM

Warehouse Optimization ✓ Only possible with offline analysis and manual stock transfers

✓ Same as LE-WM ✓ Slotting to determine optimal stock locations based on historical and forecast product movement

✓ Re-arrangement

Physical Inventory ✓ Various inventory methods are supported:• Cycle-counting• Continuous inventory• Annual (wall-to-wall)

counts• Zero stock check


✓ Low stock check during picking

Replenishment ✓ Supports replenishmentbased on material-specificmin/max levels and bin assignments or based on picking requirements


✓ Ability to trigger replenishment directly during picking

✓ Multiple fixed bins per material is supported

Value Added Services (e.g. MTO, MTS, repackaging, relabeling, etc.)

✓ Not supported (must use standard manufacturing process)

✓ Not supported ✓ Fully supported




management



Mgmt and EWM





Migration Strategy and Options

LE-WMLE-WM

Comp. PackStock Room

Mgmt

EWMBasic

EWMAdvanced

ECC

EWM Decentral

ECC

EWM Decentral

S/4 HANA

S/4 HANA

S/4 HANA S/4 HANA

S/4 HANA

1A 1B

2B2A

3A

3B

1A: Compatibility Pack enables a customer to move their existing WM to an S/4 HANA compatible version.

1B: No migration path announced.

2A/2B: SAP provides a migration tool within EWM to migrate existing objects.

3A: Set up decentral EWM utilizing same migration tools as 2A.


Migration Strategy: WM to EWM

Migrate Objects from WM to EWM• Warehouse structure

- Warehouse- Storage Types and Sections- Storage Bins Types- Storage Bins- Picking Area

• Cross Processing Objects- Handling Units- Packaging Material Types- HU Types- Warehouse Movement Types

• Warehouse Movement Strategies - Stock putaway strategy- Stock removal strategy- Stock replenishment strategy

• Stock and Master Data- Vendor Master Data- Customer Master Data- Bin Master Data- Inventory Data

Technical Migration

Blue Print RealizationTesting & Final Prep

Go-Live & Support

Migration EWM Specific Functionality Implementation


SAP Best Practices for SAP EWM

Best Practice Templates / Pre-configured Warehouse Management Processes

1G2: Basic Warehouse Outbound Processing to Customer 1FW: Physical Inventory in Warehouse1FY: Replenishment in Warehouse1FS: Basic Warehouse Inbound Processing from Supplier1G0: Scrapping in Warehouse1FU: Initial Stock Upload for Warehouse1VD: Advanced Warehouse Outbound Processing to Customer1V5: Warehouse Inbound Processing from Supplier with Batch Management1V7: Warehouse Outbound Processing to Customer with Batch Management1V9: Basic Warehouse Inbound Processing from Supplier with Quality Management1VB: Production Integration - Component Consumption and Receipt in Warehouse

How does it benefit?

❖ Quickly enable preconfigured warehouse

management processes

❖ Complete configuration settings and

assets to use as accelerators in

implementation projects

❖ Predefined warehouse structure and

sample master data




management



Mgmt and EWM





EWM Fiori Apps

❖ Roughly 25 EWM Fiori Apps delivered by SAP

❖ Majority designed for desktop or tablet

❖ Very similar to existing SAP GUI transactions


EWM Fiori App – Warehouse KPIs

For Example:

• Open Warehouse Tasks by Activity

Area

• Open Warehouse Tasks by Process

Category (e.g. Putaway, Picking,

Replenishment, etc.)

• Open Warehouse Tasks by Process

Types

• Overall ODO Items by GI Status

• Overdue ODO Items without GI by

Ship-to- Party


Fiori Apps: What’s Possible?

❖ Route or Shipment Status

❖ Outbound Dashboard

• Picking Productivity – Number of line items picked per hour

• Picking Accuracy – Percentage of orders picked and packed w/o error

• Picking Cycle Time – Time taken to pick each order


Fiori Apps: What’s Possible?

❖ Internal Warehouse Dashboard

• Pick Bin Replenishment Status

• Order Lead Time

• Rate of Return

• Carrying Cost of Inventory

• Kitting Monitor / Status

❖ Employee Performance Dashboard


S/4 HANA Mobile Strategy: On-Premise

ITS Mobile is still the main offering for mobile warehouse transactions in an ON-PREMISE system.

• Part of the SAP kernel and is fully integrated in the SAP landscape thus does not required a separate installation

• Browser based user interface based on ABAP-Dynpro programming model

• Template based application (generate and modify templates in less time)

• Supports a wide variety of devices types (e.g. GUI / character based

devices and browser based devices – does not support HTML5)

The RF framework provides standard RF-functionalities including:

• Picking

• Put Away

• Packing

• Physical Inventory

• Replenishment

• Queries (stock, bin, Handling Unit)


S/4 HANA Mobile Strategy: Cloud

•Cloud customer cannot enhance the screen / logic –cannot touch ABAP code

•Does not leverage the capabilities of modern devices

Use RF in the Cloud?

•Performance not sufficient for high-speed scanning

•Designs for shop-floor only applications not ready

Build Fiori Apps?

• Beautiful UI

• No ABAP skills required

• Same App on multiple devices

• App can use modern mobile features

• API Business Hub

• SAP Mobile Development Kit

• Additional license costs

Application Programming Interface (API)

SAP’s Current Direction: Open up the SAP EWM backend with published APIs to allow SAP partners and customers to consume EWM data on any device. APIs for warehousing have just started and more APIs are planned for the future.




management



Mgmt and EWM



❖ How do you decide on a deployment

strategy?


How to decide on a deployment strategy?

Key Questions / Considerations:

• Number of Warehouses (including expansion plans)

• Peak Warehouse Capacity

• Scale Up vs. Scale Out

• Downtime Management

• Upgrade Capability

• Warehouse Automation

• TCO and TCI


How to decide on a deployment strategy?

Start with an assessment…

• Understand current and future landscape and business requirements

• Understand key capabilities of each WMS offering

• Evaluate functional fit and “identify” gaps

• Identify business benefits, goals, KPIs

• Identify warehouse categories & develop a template approach

• Understand migration paths and necessary IT landscape adjustments

• Define mobile strategy

• Define roadmap and next steps

Questions?


Thank you.



Appendix A


Key Functional Differences: Warehouse Structure

LE-WM Stock Room Management

Embedded EWM

Warehouse Structure ✓ Storage types, storage sections and storage bins are used to model the physical area of the warehouse:

• Storage type/section = 3 characters

• Storage bin = 10 characters

✓ Doors, staging areas, picking areas not part of WM (these are yard management components)

✓ Sequential bin sequencing

✓ To be determined ✓ Storage types, storage sections and storage bins are used to model the physical area of the warehouse:

• Storage type/section = 4 characters

• Storage bin = 18 characters

✓ Doors, staging areas, work centers yards, parking spaces standard EWM functionality

✓ Enhanced bin sequencing via Activity Areas (U-Pick, Z-Pick, interweaving, etc.)


Key Functional Differences: Inbound Processing

Inbound Processing Standard WM Stock Room Mgmt Embedded EWM

Putaway Strategies ✓ Multiple putaway strategies supported• Fixed bin • Addition to stock • Next empty bin• Near picking bin

✓ Same as LE-WM ✓ Same as LW-WM

Capacity Check ✓ Based on weight, volume and dimensionless capacity figures (e.g. material and storage unit / pallet type)


✓ Maximum quantity

Quality Inspection ✓ Inspection lot sample handling during receipt and putaway


Complex (multi-step) inbound processing

✓ Not supported ✓ Not supported ✓ Supported with the use of process-oriented storage control

Deconsolidation of Mixed Pallets

✓ Not supported ✓ Not supported ✓ Mixed pallets can be deconsolidated at a work center prior to putaway


Key Functional Differences: Stock Management

Stock Management

LE-WM Stock Room Management

Embedded EWM

Stock Types ✓ Fully supports various stock statuses (e.g. unrestricted, QA, blocked)

✓ Fully supports special stock types (e.g. vendor / customer consignment stock)


✓ Supports additional stock types that distinguishes between stock that has been received and stock that has been putaway

Units of Measure ✓ Supports all UOM ✓ Same as LE-WM ✓ Same as LE-WM

✓ Supports stock specific UOMwhich allows multiple UOMs of the same material to be stored side-by-side (e.g. different case / pack size)

Batch Management ✓ Batch management and SLED fully supported


Serialized Materials ✓ Limited functionality✓ Requires the use of Storage

Units

✓ Same as LE-WM ✓ Fully supported down to the storage bin level, with or without handling units


Key Functional Differences: Cross-Functional Processing

Cross-Process Functionality

LE-WM Stock Room Mgmt Embedded EWM

RF Technology ✓ Approx. 50 RF SAP Console transactions provided

✓ To be determined ✓ Approx. 100 RF ITS Mobile transaction provided

✓ RF Wizard available for quick and easy changes to transactions

Labor Management ✓ Not supported ✓ Not supported ✓ Labor planning (e.g. planned workload, planned work duration) supported with implementation of engineered labor standards and distance calculations

✓ Work load monitoring

✓ Labor analytics / reporting• Task performance reporting• Cross-warehouse / DC comparison

Task & Resource Management

✓ Separate LES component ✓ Not supported ✓ Fully integrated with EWM

Yard Management ✓ Separate LES component ✓ Not supported ✓ Fully integrated with EWM

Reverse Logistics ✓ Supported ✓ To be determined ✓ Enhanced customer returns process can be activated viaintegration with SAP Customer Relationship Management(CRM)

✓ Includes integration with advanced returns management

Import / Export Compliance ✓ Not supported ✓ Not supported ✓ Deep integration with SAP GTS with auto checks and warehouse process control for regulatory compliance


Key Functional Differences: Reporting & Analytics

Reporting / Analytics LE-WM Stock Room Mgmt Embedded EWM

Reporting Capabilities ✓ Basic reporting of open/confirmed transfers, stock overviews, bin lists, etc.

✓ Warehouse activity monitor givesmanager a view of open/overduewarehouse activities

✓ Same as LE-WM ✓ More robust / advanced reporting and monitoring tools

✓ Advanced analytics, dashboards andreporting are possible using standard SAPBusiness Intelligence (BI) content

Workload Reporting and Analysis

✓ Rough workload estimator allows warehouse managers to performlabor planning for inbound andoutbound processes

✓ Not supported ✓ Labor planning and simulation cockpitpermits estimation and reporting of labortime across all warehouse activity types

Graphical Warehouse Layout

✓ Not supported ✓ Not supported ✓ EWM uses the easy graphics framework(EGF) to create visual representation ofwarehouse layouts

Shipping Cockpit ✓ Not supported (not available in asingle cockpit)

✓ Not supported (not available in a single cockpit)

✓ Ability to perform outbound deliveryplanning, monitoring and execution of alloutbound processes in EWM, includingtrailer creation, check in/check out, wavemanagement, task execution, print outputand invoicing (prior to GI). Graphicalsidebar analytics embedded into cockpit.