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Inventory and Warehouse Processes

Inventory and Warehouse Processes. Introduction. Inventory and warehouse management are closely related to the fulfillment and production processes Warehouses often supply raw materials to manufacturing Warehouses store and move finished and semi-finished goods

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Inventory and Warehouse Processes

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  1. Inventory and Warehouse Processes

  2. Introduction • Inventory and warehouse management are closely related to the fulfillment and production processes • Warehouses often supply raw materials to manufacturing • Warehouses store and move finished and semi-finished goods • Warehouse management is an optional subsystem that must be enabled and configured

  3. Processes • Process change • http://www.youtube.com/watch?v=Q20nhhT07f0 • Picking and return • http://vimeo.com/12948899 • Automated pharma • http://vimeo.com/72337318

  4. Inventory without WMS

  5. Inventory With WMS

  6. Types of Goods Movement • Receipt from production or procurement • Increases finished goods inventory • Goods issue to production or fulfillment • Decreases raw material inventory • Transfer postings change the status of a good • Stock transfers • Move goods from plant to plant or storage location • I’ll go through these in sequence

  7. Goods Movement • Goods can be received in the warehouse as a result of • Procurement • Production • You received purchased goods in the procurement lab • Goods leave the warehouse • Through shipping • Through disposal

  8. SteelCase Case • 10 plants • Small short-term warehouses to store goods for a matter of hours • 6 regional distribution centers

  9. Goods Status • Goods in the warehouse can be • Unrestricted • Held for a customer or other reason • In quality inspection • In transit • These goods are stored in storage locations

  10. Goods Status (Example) • MB52 Warehouse stock • Search for goods in a plant • Restrict by materials types

  11. Goods Status (Example)

  12. Goods Status (Discussion) • We can sell unrestricted stock • Transit/Transf stock is stock in motion • Restricted use stock includes reservations • Blocked stock is stock received “conditionally” pending acceptance • A batch is a subset of stock managed separately from the material itself

  13. Goods Movement (SAP)

  14. Goods Receipt • Remember it’s a receipt of goods into inventory from a vendor • Goods receipts are triggered by • Goods received from vendor from purchase • Unplanned receipts • Customer returns • Logistics / Materials Management / Inventory Management / Goods Movement

  15. Goods Receipt (SAP) • Again, these are configurable • Goods receipt (Other) MB1C

  16. Types of Goods Receipts

  17. Goods Issue • To review, goods are leaving inventory typically sold to a customer • Goods issue event is triggered by • Planned resulting from a sales order • Unplanned • Scrap / internal consumption / sampling

  18. Goods Issue (Types)

  19. Internal Warehouse Processes • What happens in the warehouse stays in the warehouse • We are just moving goods around. We are not revaluing them, buying them, or selling them • We will discuss in 2 parts • The organizational units • The processes of moving goods

  20. WM Organizational Units • A warehouse number defines a warehousecomplex made up of one or many buildings • Within a warehouse we have storagetypes • We can configure as a physical or logical subdivision of the warehouse complex

  21. WM Organizational Units

  22. WM Organizational Units • There will likely be several storage bins having the same storage type • Storage bins belong to a section and picking area (other organizational units), and have a capacity (weight, units, or both)

  23. WM Config • We have transaction codes to create warehouses, storage types and other needed OUs

  24. WM Organizational Units

  25. WM Bin Reports • We can look at bin utilization and time in bin

  26. WM Bin Creation • We create storage bins based on templates or perhaps manually

  27. WM Organization • Doors are locations where goods are received or shipped

  28. WM Organization (Door) • Doors are configured through the IMG

  29. WM Processes • We add additional steps to move goods from GR loading area to the warehouse (bins) • We add additional steps to move goods from warehouse to GI loading area • And a bunch of steps within the warehouse itself to do the picking and packing

  30. Transfer Postings • Change the status of a material in stock • Unrestricted use • QA / QC • Blocked • In transit • Transfer postings do not always result in the physical movement of goods • They might just change the logical status of a good

  31. Transfer Postings (Examples) • From vendor owned inventory to company owned inventory • The vendor stores their materials in our warehouse (consignment stock) • Change a material’s characteristics over time

  32. Transfer Postings (Movement Types) • Selected transfer postings

  33. Process Example (GR) • We receive goods into an interim storage area • We move goods into the warehouse through a stock transfer

  34. Process Example (GR) • I issued a GR for a purchase order where WM is enabled • The goods are received into a holding area with a storage bin corresponding to the PO

  35. Process Example (GR) • The detail shows ‘interim storage

  36. Process Example (GR) • We create a transfer order to put away the material

  37. Process Example (GR) • And finally the transfer order gets processes (here we put away)

  38. Process Example (GR) • And now my goods show up in the bins

  39. Stock Transfers • Use to physically move materials from one organizational level to another • Plant • Storage location • Etc.

  40. Types of Stock Transfers • Storage location to storage location • Plant-to-pant transfer • Company-code-to-company-code transfer • Stock transfers do not take into account • Transportation costs • Negotiated value or changes in pricing • Stock Transport Orders satisfy this need

  41. Stock Transfer (SAP)

  42. Stock Transfer (Illustration)

  43. Stock Transfer (Details) • The procedure can be performed two ways • 1-step process • Goods issue and goods receipt happen at the same time • 2-step process • Goods go through an in-transit status between goods issue and goods receipt • A FI document is generated to record the change in inventory

  44. Stock Transport Orders • These orders account for delivery and stock in transit • Billing can also be performed • Valuation can be changed • Progress of the transport can be tracked • The sending plant is the seller and the receiving plant is the buyer

  45. Warehouse Organizational Data • First, the warehouse management sub system must be enabled for the following to work • Enabling the warehouse management process involves additional steps in the goods issue and goods receipt phase

  46. Fulfillment Steps • After outbound delivery and before goods issue • Warehouse issues transfer orders • Create and confirm • Goods physically move from storage bins (locations) to interim storage

  47. Production (steps) • The same confirmations are made • When raw materials are issued to production • When finished goods are transferred back to the warehouse

  48. WH Controlling

  49. WH Controlling

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