Erp in Warehouse Management

8/13/2019 Erp in Warehouse Management

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ERP in WAREHOUSEMANAGEMENT

Presented By: Anand JignasaDhruv Sharma

Nitish Kumar

Raman Sadhwani

Sonam Anand


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Background

Warehouse management processes areconcerned with the storage and movementof material within an organization.

The underlying activity in inventory

management (goods movement). The four goods movements types are:

Goods receipt

Goods issue Stock transfer

Transfer posting


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Background

Warehouse management processes that

enable companies to manage materials

more effectively.

Linkages exist between inventory

management and warehouse management.


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Goods Movements


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Stock Transfer within a Plant

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Plant-to-Plant Transfer

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Movement of materials between two plants within

the same company code

A one-step or a two-step procedure can be used.

Difference is the stock status at the receiving plant.

Typically, only materials in the unrestricted use

status can be moved between plants.

Material documents are created. Financial impact (FI document)


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Plant-to-Plant Transfer

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Company Code-to-Company Code

Transfer

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Movement of materials between two

plants in different company codes

A one-step or a two-step procedure can beused

Two FI documents are created, one for

each company code One line item is for the material account.

One line item is for a clearing account created

to accommodate such a transfer.


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Inventory Management

Focus is on the extension of the goods movement.

Goods movement involves specific movementtypes.

Information needed to execute the movements. General ledger accounts are affected.

The key organization level is storage location.

Most relevant master data: Material master

Plant/data storage material master view


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Organizational Data in WM

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Key organizational data are the warehouse.

Warehouse is associated with one or multiple

combinations of plant and storage location.

Association between storage locations and awarehouse provides the linkage between IM

processes and WM processes.


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Organizational Data in WM

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When linking warehouses to storagelocations, the following rules apply:

A warehouse must be linked to at least one

storage location.

A warehouse can be linked to storage locations

across multiple plants.

A storage location can be linked to only one

warehouse.


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Organizational Data In WM

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A warehouse is divided into smaller areas in a

hierarchical manner

Storage type

Storage section/picking area

Storage bin


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Structure of a Warehouse

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Storage Section

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A storage section groups bins with similarcharacteristics:

Fast-moving

Slow-moving

Heavy

Light

Small

Each storage type must have at least one

storage section.


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Bins in Rack Storage

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Fabric Storage

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Rolled Steel Storage

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Master Data in WarehouseManagement

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Material master and storage bins are key

master data.


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Material Master

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The material master database contains descriptions

of all materials that an enterprise procures,

produces, and keeps in stock.


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Material Master

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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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Storage Bins

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Storage bins are the smallest unit of space in a

warehouse.

Can vary in size

Unique address

Can store different materials


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Storage Bin Addressing

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Storage Tubs (Bins)

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Warehouse Management Process

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Warehouse Management In Procurement

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Plan warehouse movement Interim storage area is the physical link between the

procurement and warehouse management processes.

Transfer requirement is created.

Execute warehouse movement

Ready to put away materials from interim storage areainto warehouse bins.

Transfer order is created.

Confirm warehouse movement Physically move materials from interim storage area

into warehouse bins. Transfer order is updated with confirmed quantity and

location.


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IM and WM Steps in Procurement

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Warehouse Management in Production

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Involves both goods issue (production) and goodsreceipt (storage).

Production order generates a transfer requirement.

Transfer order is created for materials placed intointerim storage area.

Goods issue has a financial impact and materialoutcomes.

After the production process has been completedand confirmed, finished goods are placed into

warehouse bins. Transfer order is created and confirmed after the

finished goods are placed into warehouse bins.


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IM and WM Steps in Production

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Warehouse Management in Stock

Transfers

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Warehouse management activities can be initiatedby stock transfers and transfer postings.

Transfer requirements are automatically generatedby ERP system when goods movement involves

warehouse management storage locations. Material documents are created when IM activities

involve goods issue and goods receipt; they mayresult in a financial impact

No FI impact generated by an internal transferbetween storage locations within same warehouse.


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WM Scenarios for Stock Transfers

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Reporting

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Warehouse management reporting is similar to reporting in

other processes that have been discussed.

Warehouse management reporting options are:

Reports

Work lists

Online lists

Information system

Document lists such as transfer requirements and transfer

order can be generated.


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Erp in Warehouse Management

Documents

Transcript of Erp in Warehouse Management