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ERPGenie.COM -> SAP Functional -> SAP Warehouse Management (WM)

  • Article on Blocking Stock in WM and the management of ATP (Author: Jonathan Pickard)
    "The blocking of stock in the warehouse can and should be used extensively by warehouse staff to change the available stock in the warehouse. It may be necessary to manipulate the available to promise stock level due to stock inspections, damage or some other reason. Jonathan Pickard sets out some of the decisions that have to be made before blocking stock in the warehouse then sets about explaining the different ways to block stock in warehouse management." (Download Article)

  • Article on Automatic material master maintenance and storage bin utilization (Author: Jonathan Pickard)
    "The greater the number of storage bins in the warehouse the less chance that stock in a bin will be reduced to zero before the system tries to move on to another bin, the bin could be blocked, the batches could be different or any other reason. Unless the users are managing the warehouse correctly (which rarely happens) the storage bins can become blocked with less than full pallet quantities that will make the stock foot print becomes very fragmented. We defragment our hard drives monthly, we should do the same in the warehouse." (Download Article)

  • Why do companies require a WM Consultant for a SAPConsole Implementation? (Author: Asriel Saporta)

SAP is an integrated software package for business applications. SAP is divided into many 'Modules' for ease of implementation. Each module covers a special aspect of business. Examples are "MM" module covers 'Materials Management', 'CO' module deals with 'Costing' etc. All these modules are integrated i.e., they look at the same data when queried. Thus data redundancy can be eliminated. SAP is a real time system. You always look at current data and not historical data.

SAP R/3 also acts as a 'facilitator' for a number of other improvement projects, finally resulting in business benefits such as increased sales and lower cost of operations.

'WM' sub-module of 'MM' module takes care of 'Warehouse Management ' functionality. Warehouses can be managed efficiently at 'Bin location' level using WM module.

WM module of SAP R/3 provides flexible, efficient, automated support that enables you to:

  • manage complex warehouse structures

  • define and manage storage areas and storage bins in the warehouse

  • manage several different types of storage, such as high rack storage, block storage or fixed bin storage

  • process all relevant postings and transactions such as goods receipts, goods issues and general stock transfers.

  • monitor stock movements

  • execute stock placements and removals using different put-away and picking strategies

  • process stock differences

  • manage hazardous materials

  • use bar code scanners

  • interface to external non-SAP warehousing systems

  • manage inventory at the storage bin level

  • ensure that stock posted in the Inventory Management system is the same as the stock in the warehouse

  • integrate with materials management, product planning, quality management and sales and distribution

It primarily aims at defining and managing complex warehouse structures within a company.

The following points must be considered when implementing the SAP R/3 WM module:

  • Path optimization for:

stock placements

stock removal

stock transfer (for example, replenishment)

  • Even utilization of warehouse capacity

  • Balanced utilization of warehouse personnel

  • Possibility for improvement in warehouse stocking

  • Handling of means of conveyance for stock placement and stock removal

  • Possibility for improvement of work papers

'WM' module is one of the effective tools available to manage Warehouse and keep inventory at optimum level. But it is a 'Tool' and you need a skillful craftsman who can understand your business needs and satisfy them using the tool. Potentials of the tool must be extracted fully for the best results.

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