SAP Extended Warehouse Management (EWM) is applied to efficiently manage inventory in the Warehouse and for supporting the processing of goods movement. It allows the company to control its Warehouse inbound and outbound processes and the movement of goods in the Warehouse.
The main method in a Warehouse is incoming and outgoing materials, goods receipt and goods issue, fulfill customer orders and distribution of goods. When a company doesn’t store any goods, then there is no need for Warehouse management to manage goods.
The inbound process
includes the storage of goods in the warehouse and their location and the
Outbound process includes picking up the goods. Whenever a material is stored
in a warehouse, it is stored in the storage bin and you can find its current
location.
With the help of SAP EWM (Extended Warehouse Management), all the goods movement is controlled by a warehouse management system and provides you the tools to monitor warehouse activities. You can also manage additional functions in the Warehouse like creating a serial number, batch number, vendor management inventory, resource optimization, and value-added services. SAP Extended Warehouse Management enables you to not only monitor the number of goods in the Warehouse but to manage other critical functions and delivery of goods efficiently.
Key Features of Extended Warehouse Management
The following are the
key features in SAP EWM −
- Using SAP EWM, you can command the warehouse activities like picking, posting, and managing storage box and good receipts.
- You can determine storage concepts applying to slot for products and optimize the arrangement of goods warehouse automatically.
- It allows you to control and track vehicles as well as other transportation units from the terminal check-in to yard check-out, including movements and other tasks within the yard.
- SAP EWM also includes storage and handling of hazardous substances and their transportation by the regulations from SAP Environmental Health & Safety EHS.
- You can perform deconsolidation of handling units that contain different products before putting them away in different storage sections.
- It allows you to perform executable tasks like work packages, consisting of warehouse tasks warehouse employees should perform as part of warehouse management activities.
- You can set an alert for changed data before goods receipt from EWM to the ERP system, reversal or correction of the receipt of the goods from EWM to the ERP system, and an inbound delivery split from EWM to the ERP system.
- In SAP EWM, you can also plan labor times and resources more effectively, and hence you can make your Warehouse efficient by managing key resource management tasks efficiently.
- In SAP EWM, you can use the Warehouse cockpit that allows you to display warehouse key figures graphically and to evaluate or monitor activities using defined chart types.
- You can use cross-docking that allows you to perform transportation of handling units across different distribution centers or warehouses till they reach their final location in the Warehouse.
Types of Organization Units
There are different
organization units in a Warehouse system at different levels −
- Warehouse Number − Each warehouse consists of a warehouse number which is at the highest level in a warehouse management system. Each warehouse number consists of a substructure that maps the warehouse relationship.
- Storage Type − There are different types of stores where products are physically stored in a warehouse such as open storage, goods issue and goods receipt, racks.
- Storage Section − This is a part of the storage type and represents a group of bins with the same characteristics. Commonly used storage sections are fast-moving or slow-moving items, etc.
- Storage Bin − The Storage bins represent the physical location of the storage space where the products are stored in the Warehouse. They are at the lowest level of the organization structure and when you store an item in a Warehouse you need to mention its exact location.
- Activity Areas − Storage bins are further categorized in this activity area. It includes activities like picking, put away or a physical inventory. As per the activity, you can assign the same storage bin to multiple activity areas.
- Quant − The number of goods in the storage bin is represented by Quant. The quant is used for managing inventory in a storage bin.
Types of Stores
There are different
types of stores where products are physically stored in a warehouse such as −
- Open storage
- Goods Issue
- Goods Receipt
- Racks
A Storage type is a
four-character name and shows a physical or a logical subdivision of a
warehouse. A Storage type can consist of one or more storage sections and bins.
A storage type is defined by the role it is used for in a warehouse.
A storage type can be
used for the following roles −
- Standard Storage Type − Physical area where products are stored in a warehouse.
- Identification Point − An area where products are labeled, identified, or cross-checked during a goods receipt process.
- Pick Point − Goods are packed when a goods pick-up process is performed.
- Work Center − This represents an area in the warehouse where deconsolidation, inspection, or VAS processing is done.
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