dcom be en warehouse management sap ewm

7/16/2019 Dcom Be en Warehouse Management SAP EWM

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Warehouse Management

at Ford with SAP EWM.



In the last quarter of 2009,the last milestone of the

SAP-EWM implementation atthe Ford spare parts warehousein Estrées-Saint-Denis wascompleted.


http://slidepdf.com/reader/full/dcom-be-en-warehouse-management-sap-ewm 3/8Warehouse Management at Ford with SAP EWM 3

Some history: Ford Motor Company – Caterpillar

Sotware Alliance

In November 2001, Ford Motor Company and

Caterpillar started a contractual alliance aiming to

build a new service parts management solution. At

the end o the evaluation process in July 2002, SAP

has been selected by both companies to co-develop

the sotware. In 2003, Deloitte joined the Alliance as

system integrator. Ater three years o common design,

development and testing, Ford Motor Company and

Caterpillar started their own implementation projects,

supported by SAP and Deloitte.

Extended Warehouse Management, new SAP

warehouse management solution

As part o that Service Parts solution, a complete new

warehouse management solution has been developed,

based on Ford and Caterpillar requirements and

expertise in the specic area o spare parts. SAP EWM

has been initially designed to cover those requirements

with lots o new and enhanced unctionalities over

ERP WM. However, looking at EWM capabilities today,

the solution is not exclusively dedicated to service

parts management and can also satisy more generic

warehouse requirements or various industries.

Global template at Ford Motor Company

Deloitte started the SAP EWM implementation at Ford

with a global blueprint exercise. The main objective

was to review and discuss all warehouse processes

and agree on 80 % o global commonality. Two teams,

US and Europe, were in charge o delivering business

processes documentation and SAP EWM prototyping.In addition, global master data and FRICEs (Forms,

Reports, Interaces, Conversions and Enhancements)

requirements were agreed upon and documented.

Multiple workshops were organized or detailed reviews

and prototyping demo by process. At the end o each

workshop global commonalities and regional dierences

were ocially identied.

SAP EWM pilot implementation (at Ford Estrées

Saint-Denis France)

For the EWM implementation at Ford, the French

customer acing depot in Estrées-Saint-Denis was

selected to be the pilot. Within Ford, this depot is

categorized as small/medium size with the ollowing

main characteristics:

•36.000m²storagespace

•140workers,2shifts

•32.000productsarestoredatthewarehouse

•Averagenumberoflines

- Inbound : 800 (+/- 10 trucks)

- Outbound : 12.500 (+/- 20 trucks)

•320dealersareservedfromthewarehouse

Beore the SAP EWM implementation, the warehouse

in Estrées-Saint-Denis was running with multiple

systems. Receiving operations and products overall

stock inormation were managed with a European Ford

system. Stock in reserve locations and replenishment

activities were handled via a local and isolated system.

For the remaining operations a local system running on

MS Access databases was used. These Access databases

mainly had a scheduling role or all outbound fows but

process execution was paper-based.

Implementation strategy and local blueprint

Based on the global template, the rst step was to

dene the local scope and the implementation strategy.

In terms o unctional scope, most o the topics had

been covered during the global blueprint. The picture

below provides an overview o the unctional scope by

process category:

Warehouse Managementat Ford with SAP EWM

Quality

Management

Return from

Vendor

Inbound Delivery

Processing

Inbound

Ford ESD EWM - Functional Scope

Putaway Location

Determination

Return from

Dealer

Goods Receipt

/Unload

Putaway

Adhoc Moves

SAP

Organizational

Structure

Physical

InventoryReplenishment Manage Scrap

Quality

Management

Cross-Functional / Warehouse Internal / Integration

Warehouse

Order Creation

Shipping,

Loading, GlCancel Order

Outbound Delivery

Processing

Outbound

Picking Location

Determination

Packing

Route Determination

Transportation Planning

Wave

Management

ReferralsMonitoring,

Reporting

Integration to

other SAP

Components

Integration to

Legacy

Components



For the implementation strategy, a rst split was done

by process category, Inbound and Outbound. The

Inbound category covered the receiving process rom

receiving documentation creation until nal putaway

into primary storage bins only. The Outbound category

grouped outbound processes but also warehouse

internal or cross-unctional processes. A launch strategy

was dened by category. For Inbound, a ull warehouse

launch was selected. For the outbound activities, go-live

was staggered by warehouse zone in 3 phases.

1.Carrousel (mechanized system):40%of

warehouse products

2.Small zones: less than 5 % o outbound volume but

covering approximately 80% o the required end-state

unctionalities

3. All remaining zones : high volume and interace to

transportation management

The ollowing timeline describes the project phases by

process category:

Realization phase and upgrade to SAP EWM 2007

Based on the nal process design and specications

rom the blueprint, conguration and development

activities took place at the beginning o the realization

phase, in parallel with test case denition. While all

these tasks were perormed based on the unctionality

o EWM 5.0, the question o upgrading to the EWM

2007 release was raised close to the completion o

inbound unit testing and integration testing. Ater a

detailed impact analysis, the decision was made to

perorm the upgrade beore the rst go-live (inbound).

Although there was a signicant impact on the project

deliverables and project timing, this approach was

considered to have the best benets on the overall

project. The new release had more unctionality,

corrections and high improvement on perormance

level, all elements that were crucial or the outbound

processes.

Four SAP EWM go-lives at Ford Estrées-Saint-

Denis

Basically, all go-lives have been quite smooth. Although

all scenarios and potential issues cannot be identied

upront, the general system behavior was much more

than satisactory. The main issues aced were on the

integration side or both inbound and outbound

go-lives. Specically or outbound, the shipping and

goods issue posting took longer to be stabilized.

By the way, the implementation strategy reduced the

impact o the issues: it allowed the operations to identiy

the issues while working with low volumes so that theproject team could x them beore the next launches.

Benefts or Ford Estrées- Saint-Denis

•TherstobjectivefortheFrenchwarehousewas

to limit the impact o a new system and RF devices

implementation on the warehouse operations and

customer service level. In addition, one o the main

expected benets was the quality improvement and

inormation availability, which could be achieved by

using a single warehouse management system.

•AftertwomonthswithSAPEWMrunningforthecomplete warehouse, the warehouse operations have

always been under control. The number o issues is

reduced week ater week and the ownership has been

taken progressively by the warehouse to come to

complete autonomy.

•Allprocessescanstillbeperformedtocopewith

the physical constraints, productivity optimization

and service level requirement. On top o that, any

movement inormation is available rom the receiving

o a product in the warehouse to the shipping o

this product to the nal customer, which helps

the warehouse to improve on operations control,

monitoring and reporting.

Ford ESD EXM - Implementation Strategy and Project Phases

i n b o u n d

o u t b o u n d

Project Preparation Blueprint Final Preparation SupportRealization

GL

GL GL GL



Maryan Jacek

Oce Operations Manager and SAP EWM Project

Manager

Ford o France

Why Ford did implement a new WMS?

The current European systems architecture shows

dierent Warehouse Management Systems per country.

In combination with the aging o the European Common

legacy system, the need arose to dene a strategy or the

replacement o those systems, ideally onto 1 platorm. At

global level, a project was started to build a WMS specic

to the Service Parts business in Alliance with CAT Logistics,

this newly created WMS was then the opportunity or a

European systems harmonization.

Which Warehouse Management System was used

in Estrées-Saint- Denis prior to SAP EWM ?

Basically, we had multiple tools to manage dierent

processes but no real warehouse management system.

Inbound operations and physical inventory were handledvia a European Ford system; replenishment operations

and movements to/rom reserve locations were managed

in a local isolated system. Outbound operations were

supported by a local system running on MS Access

database. Ford Estrées conducts continuous improvement

workshops that lead to have lean process to cope with

high customer satisaction and top eciency. Our local

system was a tailor made solution supporting the physical

processes and providing required fexibility.

What did you expect rom this SAP EWM

implementation?

First o all, as we were the rst worldwide Ford warehouse

to be implemented on this new technology, it was really

challenging.

SAP EWM is a brand new solution, which generated

a lot o questions and some uncertainty. Change was

conducted with communication, local events and rein-

orced training. All the employees were mobilized and

motivated to make it a success.

For the warehouse, we had two main apprehensions:

•Keeptheabilitytoprocessouroperationsasweused

to do, since it is based on an extensive optimization

analysis and because o the link with transportation

management in Outbound, which is executed by a 3PL.

•IntroductionandimplementationofRFscanning

devices, since all warehouse operations were paper-

driven prior to SAP EWM.

What has been most challenging or you ?As previously mentioned, our outbound processes are

very specic. Due to limited space in our shipping area

and transportation planning that is managed by the 3PL

carrier, the timing and scheduling o our picking activities

is critical.

In that respect, SAP EWM oers plenty o conguration

options, which were used extensively. However, in order to

cope with our requirements, some extra unctionality have

been developed in addition to the already extensive SAP

unctionality.

Client Testimonial



Another challenge was integration in its broadest sense,

which was mainly because o the chosen implementation

strategy. To reduce risk or customer service and

operations, a phased go-live approach was selected, with

following4phases:1. Inbound or the complete warehouse.

2. Outbound or mechanized system area representing

40%ofstockedpartsandcover90%oftheinterfaces

in scope.

3. Outbound and internal processes or some small and

specic areas representing 5% o the delivering lines

but cover 80% o the business processes. It allowed

end user rotation to get practice ater training without

impacting customer satisaction.

4.Outboundandinternalprocessesforallremaining

warehouse areas

Due to this approach it was inevitable to adjust some

interaces by phase to guarantee stock accuracy in all

relevant and aected systems. Nevertheless, we learned

rom each phase in terms o interace stabilization

requirements as well as in terms o execution on the shop

foor. In hindsight, I would say that this phased approach

was or us the best option.

What improvements did SAP EWM bring to the

warehouse ?

Warehouse operations are managed by a single system

containing all inormation. SAP EWM provides a very

powerul reporting engine to control and steer the

operations. This Warehouse Monitor allows you to access

all relevant data rom a single transaction.

Stock is managed on bin level and we are able to trace

all movements rom receiving in the warehouse to parcel

data at the dealers.

O course, implementing SAP EWM combined with RF

devices is a huge change and impact on warehouse

operations execution cannot be avoided. By the way, we

expect that quality will improve once the “learning” phase

will be over.

What has been Deloitte’s role during this

implementation ?

Deloitte has been involved rom the very beginning

together with Ford and SAP to develop the complete

SPM (Spare Parts Management) solution. For EWM, they

have been part o the Global Template project beore our

implementation in France.

For us, their project experience has been a key actor

in the success o our Warehouse Management System

implementation. SAP expertise combined with business

knowledge made Deloitte an ideal partner to make the

link between our business and IT teams. It has been a

pleasure to notice the commitment, dedication and team

spirit throughout the project.



Deloitte’s ServiceEffectiveness Dimensions

The right product at the right place at the right time at the right price. Deloitte works with the world’s leading atermarket organizations and

solution providers to help our clients get these three actors in sync. We provide a ully integrated service oering including conceptualizing and

strategizing, enterprise applications, processes and people

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Technology

Strategy

Process

People

•Wehaveawiderangeofexperiencedprac-

titioners in various domains and possess the

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•Wearetrulyaglobalorganizationthathas

the capabilities to reach out to each other to

ensure that obstacles can get resolved with

the right people

•Wehaveavastmajorityofpeoplethatareskilled

in the various solution providers required to

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Strategy

•Our executive relationships with best in class after-

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up and focus upon solutions to address them

•Wearesingularlypositionedwiththescale,

scope, and multi-disciplinary capabilities

necessary to address the most complex business

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•Asanintegratedprofessionalservicesrm,we

can draw upon a broad range o nancial, tax,

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expertise ranging in the various domains relevant

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o a strong Enterprise Application / Technology

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•Wehavebeennominatedasintegrationpartner

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Process

•Basedontheexperiencesofworkperformedat

best in class atermarket companies, we estab-

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translation towards technology solutions

•Weapplygloballyastructuredmethodologyand

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ContactsIn case you want to know more about this please don’t hesitate to contact us:

Philippe Bouchot

Senior Manager Supply Chain Management

Lead Extended Warehouse ManagementTel:+3227495954

Email: [email protected]

Sacha Van Hoever

Senior Manager Supply Chain Management

Lead Warehouse Management

Tel:+3227495746


Steven Moors

Director Supply Chain Management

Lead Service EectivenessTel:+3227495698


Eric Desomer

Partner

EMEA Lead Manuacturing

Tel:+3227495691


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