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SAPIMvs.WM:HowtoChoose,Use,andOptimizeGavinKlausCatalystInternational,Inc.WhatWe’llCover…UnderstandingthedifferencebetweenWMandIMChoosingbetweenWMandIMOptimizingandovercominglimitationswithIMandWMInventoryManagement(IM)Keyfeatures/strengths•Inventorymanagementbyquantity–Visibilityofon-handquantitybystoragelocation–Managementofspecialstocks•Entryanddocumentationofallmaterialmovements–Real-timeupdatesofinventory–Documentationofallreceipts,issuesandtransfers•Physicalinventory–Carryoutphysicalinventoryatthemateriallevel–PerforminventoryadjustmentsR/3InventoryManagement(IM)(cont.)Keyfeatures/strengths(cont.):•Inventorymanagementbyvalue–Postingsupdateaccountassignmentsforcostaccounting–UpdatesG/Laccountforfinancialaccounting•Keyintegrationpoints–IntegratesdirectlywithMRP,purchasingandinvoiceverification–ProvidesinformationforMRP,updatesPO;usedtocheckconformityduringinvoiceverification•Real-timeupdates–Whentransactionsareentered,theresultsthestockupdatesrealtimetoreflectactualchangesSAPOrganizationalStructureCompanySLocCompanyCompanyClientSLocSLocPlantOrganizationalStructureattheIMLevelChallengeswithInventoryManagementLackofdetailedvisibilitytomaterialflow•e.g.Whenthedeliverypicklistisgenerated,thedelivery’s“actualpickquantity”isupdatedpriortoactualpicking•RequiresmanualupdateswhenquantitiesdifferInabilitytoassignincomingmaterialstooutbounddemandtoavoidmultiplematerialhandlingcontinued...ChallengeswithInventoryManagement(cont.)Immediateupdateofinventoryreceiptsandissues•SysteminventoryandstatusNOTrepresentativeofthephysicalprocessLimitedvisibilitytolocationsofmaterials•Onlypossibletoassignasinglefixedbinlocationperstoragelocation•Binlocationis“text”only;nostrategiesareavailableSolution:R/3WarehouseManagementInitiallyreleasedwithR/2asanExtensionofIM•IM-WMintegrationisreal-timeandautomaticEnablesgranulartraceabilityandcontrol•Abilitytosynchronizethesystemandmaterialflow•Simple-to-complexplacementandremovalstrategies•Assignmentofinboundorderstooutbounddeliveries•AllocationofstoragebinsProcessingofallstockmovementsvalidforWM•Receipts,issues,transfers•Utilizesstockplacementandremovalstrategies–e.g.Nextemptybin,additiontostock,FIFO,LG/SMqtys.Solution:R/3WarehouseManagement(cont.)Infancytomaturity•Functionalityconsiderablyexpandedwith4.6xandhigher–Two-steppicking,two-stepconfirmation,managingmultiplestoragelocationswithasinglewarehouse•Extensionset2.0forEnterprisetoincludeCrossDocking,YardManagement,ValueAddedServicesWMPicksUpWhereIMLeavesOffTypicalassignmentisonestoragelocationtoonewarehouseItispossibletohavemultiplestoragelocationsmanagedbyasinglewarehouseQuantBin1QuantQuantQuantBin2Stor.Type2Stor.Type3Warehouse1Stor.Location1Stor.Type1Warehouse2Stor.Location2Plant1Location1Plant2CompanyIMLevelWMLevelStor.Type1KeyWMFeaturesManagementofmaterials•Providesbin-leveltracking•Inventorymanagementfunctions•VariousplacementandremovalstrategiesValue-addedservices•e.g.Specialhandlingrequirements(labeling,packaging)Powerfulpickingcontrol•Two-steppicking,wavepicking•FIFO,LIFO,large/smallquantitypickingstrategiesKeyWMFeatures(cont.)Warehouseactivitymonitors•WAM,RFMonitor,outbounddeliverymonitor,wavepickingmonitor,TRMMonitor,YardManagementCockpit,Cross-DockingMonitorCross-docking•ManagementofinboundandoutboundmovementsYardManagement•Appointmentscheduling,checkinandcheckout,assignmentofdockdoors,loading/unloadingactivitiesTaskResourceManagement•EnhancesWMbybreakingworkdownintodistincttaskFullyIntegratedwiththeotherSAPApplicationsFeatures:•FlexibleWarehouseStructures•GoodsMovements•Control•InventoryWMIntegrationWithOtherKeyR/3Modules(cont.)Source:SAPWM[LO530]WMIntegrationWithOtherKeyR/3Modules(cont.)IM-WM•Processingofallmaterialmovements•AutomatedcommunicationwithconfigurableprocessingSD-WM•Two-steppickingwithSD-WMintegration•Wavepickingopportunities•ProcessingindividualdeliveriesPP-WM•ProductionsupportwithPP-WMintegration•Supplyingmaterialstotheshopfloor•InternalandexternalautomatedreplenishmentoptionsWMIntegrationWithOtherKeyR/3Modules(cont.)QM-WM•Handlingofinventorysamples•InspectionlotismaintainedwiththematerialdataHand-heldterminals-WM•Processingoftransferrequirements•Processingoftransferorders•BinandmaterialinquiriesBenefitsofWMBenefits•Bettercontrolofinventory–Moreaccurateinventory–Abletomaintainlowerinventorylevels•Bettercontrolofinformation–Visibilitytopickingandputawaystatus•Reducedcycletime–Gartner:16-25%PickingProductivityImprovement•Bettermanageworkandworkforcetogainefficiencies–Toolstobalanceandoptimizeresources•Increasedpicking/shippingaccuracy–11-25%ReductioninCustomerReturnsBenefitsofWM(cont.)Measurablebenefits•16-25%PickingProductivityImprovement•11-25%ReductioninCustomerReturns•10-25%SavingsinMaterialHandlingLabor•10-40%SpaceUtilizationImprovement•13-30%ReductioninScrap•8-15%ReductioninCarryingCostsSource:GartnerReportWhatWe’llCover…UnderstandingthedifferencebetweenWMandIMChoosingbetweenWMandIMOptimizingandovercominglimitationswithIMandWMWhenIsInventoryManagementtheAnswer?IMisgreatwhen...