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Computer support for the organization and management

of warehouses has become imperative for timely, effective processing of logistic requirements within a company. The SAP Warehouse Management (WM) application component provides flexible, automated support to assist you in processing all goods movements and in maintaining current stock inventories in your warehousing complex. WM supports warehousing processes by making it possible for you to Define and manage complex warehousing structures Optimize material flow using advanced putaway and picking techniques Process goods receipts, goods issues and stock transfers quickly and easily
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Selection Criteria Although it is possible for you to manage warehouse inventories

using the Inventory Management (IM) application component, the primary difference between managing stock in WM and in IM is that in IM, the system can only display the total stock of a material for a storage location. If a warehouse is small and easily manageable, then the use of the Inventory Management component may be sufficient to fulfill your needs. WM, on the other hand, offers the capability to manage stock quantities in each individual storage bin in highly complex storage facilities. This means that, with WM, you can optimize the use of all storage bins, mix pallets belonging to several owners in randomly slotted warehouses and know exactly where a particular material is located in the warehousing complex at all times.

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Integration The Warehouse Management application component

is fully integrated into the SAP R/3 system. Transactions that are initiated in other SAP components result in corresponding tasks in WM which activate the actual physical transfers within the warehouse. A few of these activities include: Material movements and changes in material status, such as releasing goods from inspection Material staging to production supply areas Picking and shipping goods for sales orders
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Most activities that take place within WM are initiated in the

Inventory Management (IM) application component. For example, most goods receipts, goods issues and posting changes are initiated in IM and subsequently processed in WM. WM is also interfaced to the Sales and Distribution (SD) component through the Shipping module to process delivery documents for both the integrated WM component and the decentralized WM system. The WM interface to the Quality Management (QM) component allows warehouse administrators to track and manage inspection lots that are stored in the warehouse. WM is also interfaced to the Production Planning (PP) system to assist in providing materials to supply areas in production.
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Features The WM component provides several features that support warehousing activities. These include the following: Warehouse Structure Management of complex warehousing facilities to include automatic warehouses, customdesigned storage areas, high rack storage, bulk storage, fixed bin storage and all other commonly used storage areas Definition and adaptation of a limitless variety of storage bins for use in your specific warehousing complex Goods Movements Processing of all relevant warehousing activities, such as goods receipts, goods issues, deliveries, internal and external stock transfers, automatic replenishment of fixed bins, material staging to production areas and stock difference handling Utilization of random slotting for multiple owners of goods Implementation of a variety of putaway and picking strategies including self-designed strategies Processing of multiple goods movements with transfer requirements and deliveries simultaneously Storage and retrieval of hazardous materials and all other goods that require special handling Setup of "forward pick" areas and production supply areas with automated replenishment from case or reserve storage when stock quantities reach a certain threshold

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Controlling Optimization of capacity and material flow utilizing storage units in the warehouse Monitoring and display of stocks on hand and summary evaluations of all goods movements via warehouse controlling tasks Inventory Capability to maintain up-to-the-minute inventory records with the aid of stock transfer confirmation Archiving of records of all goods movements and inventory activity With its inventory functions, WM ensures that book inventories in the Inventory Management component match the stock in the warehouse at any time. Because SAP components are fully integrated, you do not need separate interface programs between IM and the Warehouse Management component. Printing Tasks Printing (of pallet slips, move orders, delivery slips, inventory documents, and so on) is available for all relevant transactions Although it is possible to print material documents for each separate transaction in the warehouse, WM facilitates automatic flowthrough warehousing tasks that are virtually paperless.

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Interface to External Systems Support for the use of bar code scanners, RF technology, AS/RS and automated forklift systems for all stock movements through an automated ALE warehouse control interface Lean WM This warehousing structure makes it possible to create transfer orders for deliveries when no storage bins are managed in the system. For Lean WM, no goods receipts or goods issues are processed as a subsequent process in the WM component. This means that no bin data and no stock is updated at the storage bin level using quants. Instead, this transaction takes place at the storage location level. It is used primarily to handle pick orders for deliveries. See also: Using a Transfer Order as a Pick Order in Lean WM Decentralized WM Interface to an SAP R/2 host system using the decentral R/3 systems user-friendly screens and menus For users who already have the SAP R/2 System, it is possible to install WM as an R/3 component so that WM functions can be carried out independent of the availability of the central R/2 host system. See also: Decentralized Warehouse Management

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Storage Unit Management


Management and control of material flow

utilizing storage units within the warehouse. See also: Stock Placement Strategies

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The Warehouse Structure Without WM

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The Warehouse Structure With WM

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Setting up the Connection Between IM and WM


warehouse structure

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Creating the Warehouse Structure in WM


You should define the warehouse structure in the

following order: Define the warehouse number (Customizing). Define the storage types (Customizing). Define the storage sections (Customizing). Create the storage bins (WM function).

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The Warehouse Number Definition You normally define an entire physical warehousing complex in WM using a single warehouse number. The warehouse number can be used to manage several storage types located in one or more buildings. As an example, the warehouse for company XYZ consists of a(n) Goods receipt area Goods issue area Hall with high rack shelves Bulk storage area Picking area with fixed bins Outside storage yard for special goods (This is also used when other areas are already filled to capacity.) In WM, all of these can be combined under one warehouse number and depicted in a diagram.

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The Storage Type Definition A storage type is a storage area, facility or zone that

can be defined for a warehouse number in WM. It is a unique area within a warehouse or warehouse complex that is characterized by the space it occupies and the way it is organized. It is a type of storage area that consists of one or more storage bins. You can define several storage types for each warehouse number. The following illustration depicts five storage types assigned to a single warehouse number.
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Typical examples of storage types that you can define using WM include: Bulk storage Open storage High rack storage Picking area Shelf storage The storage types in the above list are physical storage types. You can also define storage types in WM that are shared by both the IM and WM application components. These are called interim storage areas and include the following: Goods receipt area Goods issue area Interim storage area for differences Posting change area

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Definition A storage section is a logical or physical subdivision in a storage


type that groups together storage bins with similar characteristics such as Heavy materials Fast moving items Slow moving items High rack storage areas frequently consist of many storage bins that vary in size. For example, in many such storage areas, the bins in the lower level are larger for especially large and heavy parts while those in the upper levels are smaller. Often, a high rack storage area is separated into two storage sections. The forward section is for fast moving items and the rear section is used for materials with a slower rate of turnover. This is depicted in the graphic below.
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The separation of a storage type into two or more storage

sections is not absolutely necessary, but you must define at least one storage section for each storage type. A storage section within a storage type does not have any additional control indicators that regulate it. Instead, the storage section can simply be used as an organizational aid for the putaway of goods in the warehouse. Defining a Storage Section You must define at least one storage section for each existing storage type in WM. To define a storage section for a storage type, see Master data Define storage section in the Warehouse Management IMG documentation.
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A storage type generally contains several storage spaces or slots.

These are called storage bins in WM. The storage bin is the smallest addressable unit of space in a warehouse. Since the address of a storage bin is frequently derived from a coordinate system, a storage bin is often referred to as a coordinate. 02-02-03 refers to a storage bin in row 2, stack 2 and level 3 Generally speaking, you can use any combination of letters and numbers for a storage bin coordinate with the exception of certain alphanumeric characters that are used for stock placement strategy P (according to pallet or storage unit type). You should consider, however, that when goods are placed into storage, the system selects coordinates in increased order and assigns the next available storage bin based on the coordinate structure you define for creating bins.
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