Warehouse and DC Management (Lean WM)SAP Best Practices for
Retail (India)
SAP Best Practices
Scenario Overview 1/2Purpose 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 2/2SAP 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
Process Flow Diagram (1/3)Goods Receipt Processing
3.2.1 Create Purchase Order
3.2.2 Create Inbound Delivery
3.2.3 Appointment Planning (Optional)
3.3.1 Posting Rough Goods Receipt
kr e C es uoher a Wi a e R l l t
3.3.2 Entering Actual Appointment (Optional)
3.3.3 Goods Receipt with Reference to Rough Goods Receipt
er o Sli a e R t t
Process Flow Diagram (2/3) Return Deliveries (Optional)
4.2.1 Search of Article Document of the Goods Receipt
4.2.2 Create Return Delivery
4.2.3 Output of Article Document as Goods Issue Slip
kr e C es uoher a Wi a e R l l t
Process Flow Diagram (3/3)Goods Issue Processing
5.2 Create Outbound Delivery
5.3.1 Create Transfer Order as Picking Document
5.3.2 Process Picking
5.4 Post Goods Issue
5.5.2.1 Capacity-driven Automatic Generation of Wave Picks
Variant: Mass Processing of Variant: Mass Processing of
Alternative 1 Alternative 1 Outbound Deliveries Outbound
Deliveries
5.5.4 Confirm Transfer Orders by Multiple Processing
5.5.3 Create Transfer Orders by Multiple Processing
5.5.2 5.5.2 Create Wave Picks Create Wave Picks
5.5.1 Create Outbound Delivery with Planned Picking Time
kr e C es uoher a Wi a e R l l t
5.5.2.2 Create Wave Pick manually
Alternative Alternative 2 2
5.5.5 Subsequent Delivery Split
5.5.6 Multiple Processing of Goods Issue
Document Flow in the WarehousePO Inb. Delivery Rough GR
GOODS RECEIPT
l PUTAWAY na o TRANSFER ORDER pti oThere is no stock keeping in
Lean-WM, but just recording of movements using transfer orders.
FIXED STORAGE BINOutb. Del.
GOODS ISSUE
t op
PICKING al TRANSFER ORDER ion
Inventory Management - IM vs. WM
Inventory Management on article level Fixed storage bin can be
maintained in the article master (text field)
Site Storage Location
Whose number Storage type
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
Delivery Delivery Delivery Delivery Delivery Delivery
Delivery
Manual creation in the outbound delivery monitor using selection
by:Shipping point Picking date Route, carrier ... Free
selection
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 PickWeight, volume Maximum items on the picking list
Working time ...
Mass Processing of Deliveries
Delivery Delivery Delivery Delivery Delivery Delivery
Delivery
Collective Follow-On-Processing:
Create transfer order Confirm transfer order Post goods
issue
Group of Outbound Deliveries or Wave Pick
Rough Workload EstimatePlanned Goods IssueDelivery Delivery
Delivery Delivery Delivery
Calculation of workload using:
Logistics Load Category Unit of Measure Whse no. / storage type
Warehouse process
Estimated Workload in:
Quantity Weight Volume Execution time
Information on:
needed manpower needed transport capacity
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