Task and Resource Management

Optimizing Your Warehouse Operations with SAP R/3 TRM

ABOUT THE AUTHOR

Catalyst International has long been recognized as an industry leader inwarehouse management and SAP R/3 implementation consulting with notedexpertise in SAP’s Logistics Execution System (LES), Warehouse Management(WM), and now Task and Resource Management (TRM).

As one of the few SAP-certified LES implementation partners worldwide, Catalystwas a key player in SAP’s internal, pre-release testing stage for TRM in Walldorf,Germany and is currently involved in the rollout of TRM with an R/3 Enterpriseramp-up customer. Catalyst also played an integral role with pre-release testingof SAP’s native radio frequency data collection product SAPConsole and was thefirst to implement it with a customer using R/3 release 4.6.

Our in-depth expertise of SAP LES products and functionality – along with ourclose relationship with SAP – provide us with an intimate knowledge of thedevelopment vector SAP is applying to the LES product suite and allows us toadvise customers on strategic operational decisions, provide them with detailedinformation on key integration points, and quickly assist them in identifyingfit/gaps with current and future release levels.

© 2003 Catalyst International, Inc.

Executive Summary 2

What is TaskResource Management? 2

TRM’s Unique Capabilities 3

TRM’s Bottom Line Value 5

Is TRM Right ForYour Warehouse? 6

The Future of TRM 7

Conclusion 8

White Paper

EXECUTIVE SUMMARY

This white paper is designed to give warehouse operations managers and ITmanagers a useful framework for understanding SAP’s Task and ResourceManagement (TRM) application. It presents an overview of TRM and its uniquecapabilities and benefits, provides key insight into which organizations will reapthe highest value from TRM and outlines SAP’s future release plans.The paper includes the following information:

■ What Is Task and Resource Management?SAP’s latest step toward logistics optimization, TRM strengthens theLES/WM solution via optimal task execution and resource deployment.

■ TRM’s Unique Capabilities.TRM offers unique features for optimized materials movement, a transparentview of warehouse processes and value added services support.

■ TRM’s Value.Bottom line, TRM will optimize your warehouse and distribution operations,improve your customer and partner relations and provide cost savings.

■ Is TRM Right For Your Warehouse?Warehouse operations with a high level of distribution activity, volume,operational complexity and value added services are the best fit for TRM.

■ The Future of TRM.By first quarter 2004, SAP expects to release Yard Management, Cross Dockingand Enhanced Value Added Services to further strengthen the application.

WHAT IS TASK AND RESOURCE MANAGEMENT?

SAP’s latest step toward logistics optimization is Task and Resource Management(TRM), an optional component of the SAP Logistics Execution System (LES)module, and more specifically the Warehouse Management (WM) module.

TRM strengthens and completes the LES/WM solution by optimizing materialflows via task execution and resource deployment. TRM breaks down materialmovements to a task and resource level and optimizes the sequence in whichthey are executed, ensuring that the right task is completed by the best resourceat the most optimal time.

TRM helps you to manage your warehouse processes more efficiently because itachieves an unparalleled degree of process visibility within the system by trackingany activity performed on the warehouse floor. TRM uses a systemic model of thewarehouse’s physical layout to deploy resources according to the actual workload,the resource’s qualifications and the current geographic positions of the resources.The efficient deployment of resources contributes to a considerable reduction ofcosts in material flow processing.

TRM strengthens the LES/WM

solution via optimal task

execution and resource

deployment.

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SAP WM and TRM are closely integrated and work hand-in-hand to manage and maintain theworkload in warehouses. WM provides the movement, operation demands, high-level schedulingand planning. TRM distributes the work among the various resources.

TRM’S UNIQUE CAPABILITIES

TRM is unique in that it uses task selection, prioritization, interleaving and othercapabilities to optimize materials movement while offering the user a transparentview of warehouse processes. Features and highlights include:

■ Warehouse Site Map.A detailed 3D-model of the entire warehouse including storage bins, pick-upand drop-off points (P&D), work centers, working areas, zones, and all othergeographical points that constitute the warehouse allows TRM to select tasksfor execution with consideration for the time required to execute the task,given a resource’s present position and the destination of the task.

■ Task Selection, Assignment and Execution.TRM selects tasks for assignment to the optimum resource at the optimumtime. Optimization is achieved through the use of priority rules that considerfactors such as the parent document’s priority (e.g., rush order), the basepriority for a type of task assigned in TRM (e.g., pick for outbound delivery overreplenishment), and the TRM route priority, which increases the priority of aparticular task based on the resource’s physical location in the warehouse andits proximity to completed tasks. TRM executes orders by using an algorithmthat takes several factors into consideration including the following:

> Physical structure of warehouse> Load> Availability of resources> Weighting and Priority> Location / length of travel

■ Task Bundling.TRM also supports task bundling when a group of tasks must be executed byone resource at a given time.

TRM offers unique features for

optimized materials movement,

a transparent view of

warehouse processes and value

added services support.

With TRM’s support for value

added services, you can easily

label goods or accommodate

customers’ special packaging

requests.

TRM Features

> Task Execution

> Prioritization

> Interleaving

> Value Added Services

> Tracking and Monitoring

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■ Prioritization.TRM uses a priority model to select tasks for assignment to resources. The modeluses objects such as the task priority inherited from the parent document, thephysical location of the resource, the route that a task would require, the attributesof the resource equipment element, the nature of the task’s load to be moved andother considerations to select a task for assignment to an available resource. Whenthe resource completes that assigned task, TRM again calculates which task hasthe highest priority for assignment to the resource and makes the assignment. Foreach task to be performed, TRM considers the costs of an available resourcecompared to the task priority. Overqualified resources are only assigned in case ofvery high priority given to task completion and a suitable resource is not available.

■ Interleaving.TRM assigns tasks in close proximity to one another, providing a continuousworkflow to the resource and minimizing or eliminating deadheading. Upontask completion, the system analyzes the resource’s current position toprovide it with tasks whose starting point is close to that current positionmaking deployment of resources as efficiently as possible.

■ Value Added Services Support.TRM provides modeling for value added services such as special labeling, pricing,and packaging such that the operation can be built into the routing of the materialmovement. For example, if there is a need for a special packaging operation orlabeling, then the user will be directed to move the material picked for a particulardelivery to the packaging work center, and after the service is completed, an additionalwork task will be generated to move the material to the dock or staging area.

■ TRM Monitor.TRM’s monitor makes all the necessary steps within a business processtransparent by keeping warehouse supervisors up to date about the currentstatus in the warehouse, providing continuous information about workloadbottlenecks, completed tasks, and available resources. Alert warnings for duedate violations give the supervisor the opportunity to initiate the right response.They can influence task priority and assign tasks to resources via the monitor.

■ Comprehensive Real-time Controls.TRM analyzes each event in the warehouse and can react immediately tounforeseen situations (e.g., immediately reassigning a replenishment task to aresource so that it is executed next).

Bottom line, TRM will optimizeyour supply chain management,improve your customer andpartner relations and provide costsavings.

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TRM’S BOTTOM LINE VALUE

TRM’s ability to optimize resource deployment, material flow, routing and processvisibility enables an accelerated supply chain, which in turn leads to improvedcustomer service, better partner relations and overall cost savings.

Benefits include:

■ Increased Resource Efficiency and Route Optimization.Resources are deployed based on capacity, qualification, and current positionon the warehouse floor, ensuring optimum routing.

■ Optimized Material Flow Processing.TRM organizes the flow of incoming and outgoing goods and internal goodsmovements in an optimum way.

■ Higher Visibility/Transparency.TRM enables you to always see which tasks and resources are available forexecution, assigned for execution, accepted for execution, and completed.

■ Accelerated Supply Chain Management.Better use of resources, improved routing and material flow accelerates andoptimizes the supply chain.

■ Improved Customer Service and Partner Relations.An optimized supply chain will ensure better customer service andsupplier/partner relations.

■ Cost Savings.Optimized processes and decreased labor requirements reduce operations costs.

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IS TRM RIGHT FOR YOUR WAREHOUSE?

TRM is tailored to be of most benefit to the warehouse with high activity levels,high volume and complex operations. These and other factors should beconsidered when determining whether TRM is a fit for your facility.

■ High Level of Distribution Activity & Materials Movement.TRM was designed to benefit warehouse operations that are more distributionoriented as opposed to material storage oriented (e.g., a production supplyfacility). If efficient management, movement and distribution of materials arecore competencies and critical success factors for your organization, TRM isa good fit and will significantly enhance your labor efficiencies and minimizeyour labor costs.

■ High Level of Volume.TRM offers the most value to those facilities with a high level of material flowvelocity (typically characterized by the number of transfer orders), hightransaction volume, a high number of warehouse associates per shift, andmultiple types of material handling equipment. The higher the number, thebetter the fit. For example, if you have 50 trailer load outbounds a day, you’llreap a much higher benefit from the system than if you only have five.

■ Operational Complexity.TRM offers strong functionality for complex material flows, such as the use ofspecial equipment that cannot physically make certain material moves efficiently,but instead uses pick and drop locations. The system’s decomposition of TOs intotasks offers an advantage for these complex scenarios.

■ Level of Value Added Services.TRM also offers strong functionality for value added services such as speciallabeling, pricing, packaging and hazardous materials notes on shippingdocuments. The higher the level of services you offer, the better the fit with TRM.

■ Current User of SAP WM and Decentralization.Current users of SAP WM will find an independent systems configurationaudit and warehouse operational review beneficial prior to undertaking theimplementation of TRM, but it is highly recommended that users consideringTRM as part of the initial WM roll-out seek experienced consulting supportbecause of TRM’s complexity andabstraction. Another factor thatshould be weighed whenconsidering the implementation ofTRM is the organization’s ability todecentralize the WM/TRM system.The decentralized WM architectureis strongly recommended for TRMusers because of the heavyprocessor load that TRM can posefor your core system. Implementingdecentralized WM should beconsidered a prerequisite toimplementing TRM.

Warehouse operations with a

high level of distribution activity,

volume, operational complexity

and value added services are

the best fit for TRM.

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THE FUTURE OF TRM

For companies with complex logistical requirements that include yardmanagement, cross docking, and extensive value added services – and requiresoftware to support those functions, it is important to note that SAP’s futurerelease of the R3 Enterprise product will include advanced functionality for thesethree areas. The second Enterprise release is currently in testing and isscheduled to be available first quarter 2004.

■ Yard Management (YM).Where traditional warehouse management systems have focused onmanagement of the physical warehouse, yard management is a starting pointfor extending warehouse management and control outside of the traditional andbeyond the four walls of the warehouse. Viewed as a “handshake function” tohand over goods from and to transportation, YM will optimize door and dockutilization and reduce immediate storage needs. Materials that are in trailersmanaged by the yard management system will be visible to the SAP systemeven though the materials have not been received. This will allow warehousemanagers to bring the right trailers to the receiving dock at the right time.

■ Cross Docking.A technique of processing goods in a warehouse or distribution center whereinbound materials are moved from goods receipt directly to goods issuewithout being stored. Cross docking will reduce double handling of materialsand optimize the flow of materials from inbound receipts to outbound demandwhile reducing transport paths in the warehouse.

■ Enhanced Value Added Services (VAS).Advanced functionality will be provided to create, monitor and invoice forenhanced VAS activities in the warehouse such as clothing hanger insertion,price marking, tagging, and customer-specific packaging and labeling. Thisenhancement will be integrated with both TRM and WM.

By first quarter 2004, SAP

expects to release Yard

Management, Cross Docking

and Enhanced Value Added

Services to further strengthen

the application.

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CONCLUSION

SAP’s Task and Resource Management module delivers value by optimizing laborutilization and providing warehouse process monitoring and controllingfunctionality. Bottom line, TRM enables warehouse activities to be executed better,faster and cheaper than possible without a warehouse optimization engine.

When determining whether TRM is the right fit for your operations, it is importantto consider that TRM best benefits warehouse operations with high levels ofdistribution activity, volume and operational complexity. Also important in thedecision-making process is SAP’s future release plans for Yard Management,Cross Docking and Enhanced VAS. Companies who decide to implement TRMwill gain the benefit of an accelerated supply chain, improved customer service,better partner relations and overall cost savings.

For more information on how TRM can optimize your warehouse operations,contact Catalyst International at www.catalystwms.com.

2003 Catalyst International. All rights reserved.

Corporate HeadquartersCatalyst International, Inc.8989 North Deerwood DriveMilwaukee, Wisconsin 53223United StatesPhone: 414.362.6800Toll Free: 800.236.4600Fax: 414.362.6794info@catalystwms.com

European HeadquartersCatalyst International, Inc.Capital Court30 Windsor StreetUxbridge UB8 1ABUnited KingdomPhone: +44 (0) 1895 450400Fax: +44 (0) 1895 450401

Internet Addresswww.catalystwms.com

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