warehouse management -fundamentals

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© 2005 IBM Corporation

WarehouseManagement

Overview

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© 2003 IBM Corporation2 Apr 8, 2023

Warehouse Management

Warehouse management, is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, putaway and picking.

Warehouse management deals with receipt, storage and movement of goods, normally finished goods, to intermediate storage locations or to final customer

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Course Overview Unit 1: Warehouse Hierarchy

Unit 2: Structural Elements

Unit 3: Interface Between IM and WM

Unit 4: Putaway Control

Unit 5 : Stock Removal Control

Unit 6: Delivery Processes with WM

Unit 7: Posting Changes and Stock Transfers

Unit 8: Internal Procurement processes with MM

Unit 9: Warehouse Activity Monitor

Unit 10: Physical Inventory

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Warehouse Hierarchy

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Warehouse Hierarchy

Warehouse Number – Highest level under which an entire Warehouse Complex is configured. This is assigned to the plant.

Storage Type – Warehouse is further divided into Storage types based on Spatial, Technical and/or Organizational Characteristics e.g.:- Bulk Storage ,Open Storage, High Rack Storage, Picking Area, Shelf Storage.

There are some storage types shared by WM and IM for operational purposes called as Interim Storage Areas. They are :-

– Goods Receipt Area

– Goods Issue Area

– Interim Storage Area for differences

– Posting Change Zone

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Warehouse Hierarchy

Storage Section- It is an Organizational sub division of Storage Type ,that groups together Storage Bins ( next level).

Criteria for Storage Section – The criteria would be grouping Fast moving items, Slow moving items, Casting /forging commodities, Proprietary items etc… Storage Type – Warehouse is further divided into Storage types based on Spatial, Technical and/or Organizational Characteristics e.g.:- Bulk Storage ,Open Storage, High Rack Storage, Picking Area, Shelf Storage.

Storage Bin – A storage type is further divided into further slots / spaces called as Storage Bins.

Assignment – Storage bins are assigned to the Warehouse number and Storage type. It also has to be assigned to a Storage Section.

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Warehouse Hierarchy

Quant – Stocks with same features within a bin belong to one quant. In simplistic terms batches can be treated as different Quants.

The quants serve to manage stocks at storage bin level.

The quantity of a quant can be increased by an addition to existing stock.

Quants can be created or deleted solely through goods movements.

Quants are classified on the basis of :-

– Material

– Batch

– Stock Category

– Special Stock Indicator

– Plant

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Main Features of WM – Basic Functions

Inventory Management exact to storage bin level

Mapping and control of all goods movements

Monitoring of the processing of these goods movements

Connection to mobile data entry as part of the integrated radio frequency solution

Connection to specialist external systems using an interface

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Main Features: Application Components

Inventory Management (MM-IM)

Delivery Processing (LE-SHP)

Production Planning and Control (PP, PP-PI)

Quality Management (QM)

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Main Features: Interfaces to other Components

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Organizational Units

Master Data

Organizational Connection to IM

Quant

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Organizational Units: Structure of Warehouse

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Master Data: Storage Bin Types

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Organization Connection to IM: Customizing

PLANT

SLOC

Warehouse

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The Quant

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Quant: Addition to Existing Stock

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Quant: Mixed Storage

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Movement Types

TO Creation in Background

Special Movement Indicator

Storage Location Control

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Movement Types: Flow of GR Process

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Movement Types: Connection of Movement Types

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Movement Types :Interim Storage Area and Storage Bin Search

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TO Creation in Background: GR for a PO

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TO Creation in Background: Immediate TO Creation

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TO Creation in Background: Automatic TO Creation

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The Putaway Process

Storage Bin Search for Putaway

Influence of Material Master

Forms of Capacity Check

Quality Check in Warehouse

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The Putaway Process: Putaway with a Transfer Order

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The Putaway Process: Putaway Control

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Storage Bin Search for Putaway: Putaway Strategies

Fixed bin (F)

Open storage (C)

Addition to existing stock (I)

Next empty bin (L)

Pallets/storage unit type (P)

Bulk storage (B)

Near picking bin (K)

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Storage Bin Search for Putaway: Pallets Putaway Strategy (P)

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Influence of Material Master on Putaway: WM Views

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Influence of Material Master on Putaway: St. Type Indicator

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Influence of Material Master on Putaway: Palletization Data

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Check based on the maximum weight per storage bin

Check based on the first palletization proposal

Check based on the maximum quantity (base unit of measure) per storage bin

Check based on the key figure of the material

Check based on the key figure of the storage unit type

Check based in the key figures of the material and the storage unit type

Forms of Capacity Check: Capacity Check Methods

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Interim storage of inspection samples in a work center

Remain in the goods receipt area

Put away the inspection lots and the remaining quantities

Pass over transfer requirement items that belong to an inspection lot

Quality Check in the Warehouse: Handling Inspection Lots

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Unit 5: Stock Removal Control

Stock Removal Process

Storage Bin Search for Stock Removal

Settings Relevant to Stock Removal

Batch Determination

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Stock Removal Process: Stock Removal with TO

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Stock Removal Process: Control of Stock Removal

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Stock Removal Process: Storage Type Indicator

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Storage Bin Search for Stock Removal: Stock Removal Strategies

First in first out (F)

Stringent FIFO (***)

Last in first out (L)

Partial pallet quantity (A)

Large/small quantities (M)

Expiration date (H)

Fixed bin (P)

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Settings Relevant to Stock Removal: Dealing With Remaining Quantities

Return transfer to the source bin

Putaway in another bin

Remain in destination storage bin

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Unit 6: Delivery Processes With WM

Putaway for an Inbound Delivery

Stock Removal for Outbound Delivery

Special Procedure for Stock Removal for Outbound Delivery

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Putaway for an Inbound Delivery: GR with Inbound Dly

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Putaway for an Inbound Delivery: Putaway Process with Inbound Delivery

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Stock Removal for Outbound Dly: Goods Issue Process with Outbound Delivery

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Stock Removal for Outbound Dly: Determining the Warehouse Number in a Outbound Delivery

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Special Procedure for Stock Removal for Outbound Delivery: Return Transfer for Outbound Delivery

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Posting Changes

Stock Transfers

Replenishment Control

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Posting Changes: The booking flow

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Stock Transfers: Quant Characteristics

Material number

Stock category

Special stock assignment

Plant and storage location assignment

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Stock Transfers: Posting Changes

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Replenishment Control Example: Report RLLNACH1

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Unit 8: Internal Procurement Processes with WM

Process Flow

Process Control

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Process Flow: Staging for a Work Order Using the Interface

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Process Flow: Stock Removal using WM-PP Interface

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Configuration

Usage

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Configuration: Warehouse Activity Monitor Objects

01 - unconfirmed transfer orders

02 - open transfer requirements

03 - open posting change notices

04 - open deliveries

05 - negative stocks

06 - interim storage stock

07 - critical stocks for production supply

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Configuration: Warehouse Activity Monitor

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Usage: Warehouse Activity Monitor - Evaluation Results

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Course Overview

Unit 1: Warehouse Hierarchy










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Inventory Procedure

Technical Posting Procedure

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Inventory Procedure: Inventory Procedures in R/3

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Inventory Procedure: Forms of Continuous Inventory

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Technical Posting Process: Physical Inventory Process

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Technical Posting Process: Inventory Differences

warehouse management -fundamentals

Documents

storage type warehouse

warehouse hierarchy

wm unit

storage types

im delivery

bulk storage

open storage

shelf storage