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Inventory and Warehouse Processes. Slide 2 Introduction Inventory and warehouse management are closely related to the fulfillment and production processes.

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Presentation on theme: "Inventory and Warehouse Processes. Slide 2 Introduction Inventory and warehouse management are closely related to the fulfillment and production processes."— Presentation transcript:

1 Inventory and Warehouse Processes

2 Slide 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 Slide 3 Processes Process change 0 0 Picking and return Automated pharma

4 Slide 4 Inventory without WMS

5 Slide 5 Inventory With WMS

6 Slide 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 Ill go through these in sequence

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

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

11 Slide 11 Goods Status (Example)

12 Slide 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 Slide 13 Goods Movement (SAP)

14 Slide 14 Goods Receipt Remember its 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 Slide 15 Goods Receipt (SAP) Again, these are configurable Goods receipt (Other) MB1C

16 Slide 16 Types of Goods Receipts

17 Slide 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 Slide 18 Goods Issue (Types)

19 Slide 19

20 Slide 20 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

21 Slide 21 WM Organizational Units A warehouse number defines a warehouse complex made up of one or many buildings Within a warehouse we have storage types We can configure as a physical or logical subdivision of the warehouse complex

22 Slide 22 WM Organizational Units

23 Slide 23 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)

24 Slide 24 WM Config We have transaction codes to create warehouses, storage types and other needed OUs

25 Slide 25 WM Organizational Units

26 Slide 26 WM Bin Reports We can look at bin utilization and time in bin

27 Slide 27 WM Bin Creation We create storage bins based on templates or perhaps manually

28 Slide 28 WM Organization Doors are locations where goods are received or shipped

29 Slide 29 WM Organization (Door) Doors are configured through the IMG

30 Slide 30 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

31 Slide 31 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

32 Slide 32 Transfer Postings (Examples) From vendor owned inventory to company owned inventory The vendor stores their materials in our warehouse (consignment stock) Change a materials characteristics over time

33 Slide 33 Transfer Postings (Movement Types) Selected transfer postings

34 Slide 34 Process Example (GR) We receive goods into an interim storage area We move goods into the warehouse through a stock transfer

35 Slide 35 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

36 Slide 36 Process Example (GR) The detail shows interim storage

37 Slide 37 Process Example (GR) We create a transfer order to put away the material

38 Slide 38 Process Example (GR) And finally the transfer order gets processes (here we put away)

39 Slide 39 Process Example (GR) And now my goods show up in the bins

40 Slide 40 Stock Transfers Use to physically move materials from one organizational level to another Plant Storage location Etc.

41 Slide 41 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

42 Slide 42 Stock Transfer (SAP)

43 Slide 43 Stock Transfer (Illustration)

44 Slide 44 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

45 Slide 45 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

46 Slide 46 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

47 Slide 47 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

48 Slide 48 Production (steps) The same confirmations are made When raw materials are issued to production When finished goods are transferred back to the warehouse

49 Slide 49 WH Controlling

50 Slide 50 WH Controlling

51 Slide 51 codes/search?module=LE&comp=LE- WM&desc=Warehouse%20Management codes/search?module=LE&comp=LE- WM&desc=Warehouse%20Management

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