Warehouse process optimisation using SAP and integrated complementary technology

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1. Optimising warehouse operations using SAP and integrated complementary technologies <br />Presenter: Stephen Hackett<br />Created on: 27/01/09<br…
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  • 1. Optimising warehouse operations using SAP and integrated complementary technologies <br />Presenter: Stephen Hackett<br />Created on: 27/01/09<br />Version 1.5<br />Copyright © Rocket Consulting Limited 2009.<br />All Trademarks are hereby acknowledged.<br /> <br />This document contains information that is proprietary to Rocket Consulting<br />and must not be disclosed in whole or in part to any third party.<br />
  • 2. Seminar Overview<br />The seminar will focus on:<br /><ul><li>The opportunities for warehouse process optimisation provided by the SAP Warehouse Management, Logistics Execution and Supply Chain Management software
  • 3. How substantial business benefit can be achieved with the integration of complementary technologies such as Voice, Mobile (RF) Data Entry, and warehouse automation.
  • 4. An overview of how to integrate complementary technologies directly into an SAP based solution and the advantages of this approach compared to interfacing other external solutions. </li></li></ul><li>Introduction<br /><ul><li>Rocket Consulting is a specialist SAP consultancy dedicated to helping businesses meet the demands of today’s supply chain and warehouse management operations.
  • 5. We work across the entire project with your business experts delivering practical and optimal solutions that add value across the industry.
  • 6. Rocket provides professional solutions using SAP software, complementary technology such as mobile (RF) data and voice devices, RFID and warehouse automation, and specially designed SAP add-ons.
  • 7. With a strong track record of delivering successful projects across a diverse range of industries, Rocket offers a valuable combination of knowledge, fresh thinking and best practices.</li></li></ul><li>Warehouse Process Optimisation using SAP<br />Two main SAP Warehouse Management solutions available:<br /><ul><li>Enterprise Resource Planning (ERP)
  • 8. Extended Warehouse Management (EWM)
  • 9. Supply Chain Management (SCM)
  • 10. Extended Warehouse Management (EWM)</li></ul>Not all customers realise the full business potential of functionality already available in their existing SAP WM systems.<br />
  • 11. ERP Extended Warehouse Management<br /><ul><li>The standard SAP ERP warehousing solution can be enhanced/extended greatly using Task & Resource Management, and Yard Management. Both have been available for a number of years and can significantly improve your business process.
  • 12. Task and Resource Management (TRM)
  • 13. Extends the basic SAP warehousing solution, which focused purely on the activity that should be performed, allowing you to control/monitor when and how each activity is performed.
  • 14. Yard Management (YM)
  • 15. Provides greater “real time” control of all yard movements from the arrival to departure from the site.
  • 16. Integrates directly into SAP Shipping and Transportation components providing more accurate planning and controlling data.</li></li></ul><li>SCM Extended Warehouse Management<br /><ul><li>SCM-EWM was developed as a replacement to ERP-EWM taking many of the advanced components (TRM, YM) and integrating these into a single seamless package.
  • 17. Most importantly SCM-EWM provides true seamless integration between physical layout and business process.
  • 18. Can be run as an integrated solution with ERP 6.0, or a decentralised solution connected to SAP ERP 6.0 back to 4.6C.</li></li></ul><li>SCM Extended Warehouse Management<br />Release 7.0 in ramp-up Q3/4 2008, improvements:<br /><ul><li>Resource Management, Cross Docking, Production Supply
  • 19. Graphical Warehouse Layout</li></ul>Release 7.0 includes a graphical warehouse layout tool, however Rocket Consulting have also developed a 3D graphical warehouse tool (call Virtual Warehouse Monitor) that is backward compatible with all SAP Warehouse Management Implementations (with some restrictions and requirements for non-TRM based solutions).<br />Graphical Warehouse Layout<br />Virtual Warehouse Monitor<br />
  • 20. Warehouse Process Optimisation with Complementary Technologies<br />Technologies allowing you to streamline your existing supply chain operations giving your existing systems and processes a major efficiency boost.<br /><ul><li>Radio Frequency
  • 21. Replaced the traditional paper based approach to executing tasks within a warehouse.
  • 22. Reduced double entry
  • 23. Increased accuracy and efficiency
  • 24. Voice
  • 25. Frees hands and eyes of the worker
  • 26. Improves productivity (approx 25% on RF)
  • 27. Automation
  • 28. Reduction in labour
  • 29. Better space utilisation
  • 30. Improved throughput</li></li></ul><li>Implementing Complementary TechnologiesIntegrated or Interfaced?<br />Integrated<br /><ul><li>A single application supports all the business requirements in the entire warehouse.</li></ul>Interfaced<br /><ul><li>Two or more separate applications are utilised in order to support a business process and build a system.
  • 31. Communication structures (interfaces) are setup in order to transfer the necessary information between the applications (e.g. master data, pick request, pick confirmation).</li></li></ul><li>Integrated or Interfaced?<br /><ul><li>Business and Control logic
  • 32. Keeping the business and control logic in a single system simplifies the definition and implementation of warehouse processes.
  • 33. As soon as the business and/or control logic is distributed to other applications, the responsibilities of each application becomes much more complex to manage.
  • 34. Management Tools
  • 35. The ability to provide up-to-date real time reporting is made far simpler if the dataset can be accessed locally and completely.
  • 36. The dissemination of information on other systems requires the implementation of a central Business Content repository and appropriate data maintenance tools.</li></li></ul><li>Integrated or Interfaced?<br /><ul><li>Users and Master Data
  • 37. Both solutions offer single sign-on benefit, however some interfaced solutions will only use a generic logon with ERP reducing traceability and increasing the complexity of user authorisations and restrictions.
  • 38. Master Data distribution can become a hot topic during business process design, especially if the desired functionality is over and above the middleware’s Out of the Box capabilities.
  • 39. Support
  • 40. With an integrated solution, existing support contracts can remain with little or no alterations required, compared with having to setup a second support contract with a new vendor requiring a clear demarcation of system boundaries.</li></li></ul><li>Integrated or Interfaced?<br /><ul><li>Continuous Improvement
  • 41. System enhancements for evolving business requirements can be handled by existing systems support on a integrated platform, whereas middleware based solutions can be more complex/difficult requiring specialist “niche” vendors.</li></ul>The Rocket methodology places high emphasis on implementing integrated solutions with SAP.<br />
  • 42. Radio Frequency (RF) <br /><ul><li>Paper based operations require initial recording of data by a user and then re-entry into the system by a clerk, whereas an RF solution will only require entry of information once.
  • 43. The users actions can be verified in real-time enabling greater accuracy of warehouse processes.
  • 44. Execution and extraction of transactional data can be simplified with the integration of optical and RFID scanning technologies.
  • 45. Information on task execution by a user can be tracked in real-time providing the necessary data for performance reporting and traceability.</li></li></ul><li>Benefits of an Integrated SAP RF Solution<br /><ul><li>Implementation is kept simple as all relevant business logic is in the same system as the RF transaction.
  • 46. Faster implementation times
  • 47. Enhancements can be made easily and quickly
  • 48. SAP already supplies a large amount of RF transaction as standard covering most warehouse operations (loading/unloading, picking, packing, physical inventory, VAS)
  • 49. Development tools for these RF “dialog” transactions have evolved from SAP Mobile Data Entry, TRM Presentation Management and now RF Framework, which has taken the best elements of flexibility and functionality.</li></li></ul><li>RF Integration Options with SAP<br />Connects with Telnet Client<br />Telnet Server<br />SAP<br />WMS<br />SAP Console<br />Web Server<br />SAP<br />WMS<br />WebSAP Console<br />Connects via Internet Browser<br />SAP<br />WMS<br />Integrated<br />ITS<br />
  • 50. Voice<br />Voice control liberates the workforce’s Eyes and Hands to do their jobs effectively<br /> Provides natural person to system communication<br /><ul><li> Better concentration on the job helps eliminate mistakes
  • 51. Removes need to focus on or hold a device or paper</li></ul> Increased accuracy<br /><ul><li> Substantial miss-pick (product inversion, quantity) reduction</li></ul> Increased efficiency<br /> Very quick and easy to train new operators<br /> Improved workplace safety<br /> Operators like it!<br />
  • 52. How does Voice compare?<br />
  • 53. Voice Integrated with SAP<br /><ul><li>Voice controlled operations achieved with SAP through Rocket and TopSystems partnership</li></ul>Web Server<br />SAP<br />WMS<br />Voice Enabled Web Browser<br /><ul><li>Carries out voice presentation
  • 54. Interprets spoken responses</li></ul>WebSAP Console<br />Voice <br />Control<br />SAP<br />WMS<br />Integrated<br />ITS<br />Voice Control<br />
  • 55. Warehouse Automation<br /><ul><li>Warehouse Automation covers a large scope:
  • 56. Automatic transportation of boxes/totes between locations.
  • 57. Automated storage and retrieval of pallets.
  • 58. Automatic sorting, labeling, and staging of goods for customer deliveries.
  • 59. Benefits of Warehouse Automation
  • 60. Decreased inventory handling and therefore reduced chance of damage to articles.
  • 61. Decreased personnel and labour costs.
  • 62. Improved efficiency and accuracy.
  • 63. Increased throughput.</li></ul>Traditional implementations involved the development of interfaces between SAP and Warehouse Control Systems.<br />
  • 64. Warehouse Automation Integrated with SAP<br />SAP Material Flow System (MFS) has been introduced with EWM 5.0 (part of the SCM platform) to provide an integrated solution to warehouse automation.<br /><ul><li>Communicates directly with PLC’s and other automation equipment removing the need for Warehouse Control Systems.
  • 65. A single system can monitor the entire operation. This is especially important for deliveries that may contain pick requests that are divided between conveyor and non-conveyor operations (historically requiring creative reporting).
  • 66. Delivers all the required tools to monitor communication and reacting accordingly in the event of failure.
  • 67. Added flexibility for process improvement.</li></li></ul><li>Warehouse Automation Integrated with SAP<br /><ul><li> Integrated with Graphical Warehouse Layout tool in version SCM 7.0</li></li></ul><li>Thankyou for you time.<br />Please visit us at stand 95 if you have any further queries.<br />www.rocket-consulting.com <br />
  • 68. Appendix Slides<br />
  • 69. Radio Frequency Interfaced with SAP<br />Middleware<br />SAP<br />WMS<br /><ul><li>Single sign-on to Middleware
  • 70. Transactional elements (menu’s, fields, buttons, etc) are stored and handled in the Middleware
  • 71. Transaction logic and verifications can be executed in Middleware
  • 72. Middleware executes all requests to SAP on the users behalf (sometimes via a single user ID).
  • 73. Communication between SAP and Middleware usually via IDoc interface, although tRFC/qRFC also possible</li></li></ul><li>Examples of Recent Voice Experience <br /><ul><li> Brady Corporation (Integrated)
  • 74. High variety of SKUs (health & safety and office consumables)
  • 75. Trolley put-away
  • 76. Trolley picking by transfer order item
  • 77. Trolley picking by material with accumulated quantity
  • 78. Integration into SAP warehouse management
  • 79. Laithwaites / Direct Wines (Interfaced)
  • 80. High volume wine distribution centre
  • 81. Picking and packing of wines cases onto conveyor
  • 82. Interfaced into SAP warehouse management with </li></ul> task and resource management<br />
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