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Magal and Word | Integrated Business Processes with ERP Systems | 2011
Learning Objectives
Discuss the four goods movements associated
with inventory management.
2. Describe the organizational levels in
warehouse management.
3. Analyze the master data associated with
warehouse management.
4. Identify and explain the key steps in the
warehouse management processes.
1.
Magal and Word | Integrated Business Processes with ERP Systems | 2011
Learning Objectives
Demonstrate how inventory and warehouse
management processes are integrated with
other processes.
6. Effectively use SAP ERP to execute the key
steps in the warehouse management process.
7. Extract and analyze meaningful information
about the warehouse management process
utilizing SAP ERP.
5.
Magal and Word | Integrated Business Processes with ERP Systems | 2011
Background
Inventory and warehouse management
Transfer posting
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Background
Warehouse management processes that
Magal and Word | Integrated Business Processes with ERP Systems | 2011
Inventory Management
Focus is on the extension of the goods
movement.
Goods movement involves specific movement
types.
Information needed to execute the movements.
Magal and Word | Integrated Business Processes with ERP Systems | 2011
Goods Movements
Magal and Word | Integrated Business Processes with ERP Systems | 2011
Goods Receipt
Movement of materials into inventory (increase)
Unplanned receipt
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Goods Issue
Results in a decrease in inventory
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Transfer Postings
Are used to change the status or type of materials
in stock.
Four common stock statuses:
Unrestricted use
In quality inspection
Blocked
In transit
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Stock Transfers
Used to physically move materials within the
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Stock Transfers
Three options are available for moving material,
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Plant-to-Plant Transfer
Movement of materials between two plants within
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Plant-to-Plant Transfer
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management
STO created directly or referenced to other
documents (PR)
Only the two-step procedure can be used
Material document created to record movement
Goods receipt recorded against the STO
One or two FI documents may be created
Financial impact
General ledger accounts
Material accounts
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Clearing accounts
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Organizational Data in WM
Key organizational data are the warehouse.
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Organizational Data in WM
When linking warehouses to storage locations,
location.
A warehouse can be linked to storage locations
across multiple plants.
A storage location can be linked to only one
warehouse.
Not all storage locations must be linked to a
warehouse.
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Organizational Data In WM
A warehouse is divided into smaller areas in a
hierarchical manner
Storage type
Storage section/picking area
Storage bin
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Storage Type
Storage type is a division of a warehouse based
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Structure of a Warehouse
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Storage Section
A storage section groups bins with similar
characteristics:
Fast-moving
Slow-moving
Heavy
Light
Small
section.
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Picking Area
A picking area is a division of a storage area
specific bins
A delivery can be allocated to multiple picking areas
to facilitate parallel picking.
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Fabric Storage
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data.
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Material Master
Material master has been previously discussed in
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Material Master
Warehouse management view:
Basic data
Data used in defining stock placement and removal
strategies
Data regarding the storage bins where the materials
will be stored
Basic data are relevant to all processes.
Some data are redefined for warehouse
management.
Placement and removal strategies
Bin-related data
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master
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Storage Bins
Storage bins are the smallest unit of space in a
warehouse.
Can vary in size
Unique address
Can store different materials (quants)
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bins
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Processes in Warehouse
Management
The warehouse management process is typically
Production
Inventory management
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Delivery document
Production order
No financial impact
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movement.
Transfer order can be created directly from
transfer requirement or posting change notices.
Transfer order can be created manually to
facilitate internal warehouse transfers.
Transfer order consists of a header and one or
more line items.
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and Word | Integrated
Business Processes with ERP Systems | 2011
No
financial
impact
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movement is confirmed.
The same transfer order created to authorize the
physical movement of materials is used for
confirmation
ERP system automatically updates the associated
reference documents such as :
Delivery document
Transfer requirement
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Integrated notice
Business Processes with ERP Systems | 2011
Posting
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Warehouse Management In
Procurement
Plan warehouse movement
Interim storage area is the physical link between the
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movements
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Warehouse Management in
Fulfillment
Plan warehouse movement
Involves fulfillment processes and both inventory
requirement
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Warehouse Management in
Fulfillment
Confirm warehouse movement
Materials have been picked from proposed bins
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movements
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Warehouse Management in
Production
Involves both goods issue (production) and goods
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receipt (storage).
Production order generates a transfer
requirement.
Transfer order is created for materials placed into
interim storage area.
Goods issue has a financial impact and material
outcomes.
After the production process has been completed
and confirmed, finished goods are placed into
warehouse bins.
Magal and Word
| Integrated
Processes
withconfirmed
ERP Systems | 2011
Transfer
order
isBusiness
created
and
after the
finished goods are placed into warehouse bins.
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Reporting
Warehouse management reporting is similar to
Work lists
Online lists
Information system
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Quants in a Bin
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