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Warehouse Management

By Shuja Ansari
May 2006

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Warehouse Structure

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Warehouse Structure

Storage Unit

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Storage Types

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Storage Section

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Storage Bin
A storage type generally contains several storage spaces or slots. These are called storage bins in Warehouse Management (WM). The storage bin is the smallest available unit of space in a warehouse. The storage bin therefore describes the position in the warehouse where the goods are or can be stored. Since the address of a storage bin is frequently derived from a coordinate system, a storage bin is often referred to as a coordinate. The coordinate 01-02-03 for example, can refer to a storage bin in row 1, stack 2, and level 3.

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Storage Bin
You can also define the following additional characteristics of a storage bin: Maximum weight Total capacity Fire containment section Storage bin type (for example, for small or large pallets)

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AIME WM Structure
Material type Storage type
100(Floor) Semi Finished Goods 200(Drive-In) 300(Picking) 100(Bulk)

Storage section

Bin Type

Rack (Third, second, first, ground)

100(Floor)
Finished Goods 200(Drive-In) 300(Picking) 300 (Packed) Standard Rack (third, second, first, ground)

100(Floor) Packaging 200(Drive-In) 300(Picking) 500 (Packaging) Rack (Third, second, first, ground)

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Warehouse Processes
Receive products to stock from a regular purchase order Return products to a vendor from a stock location against a purchase order Move products from Incoming Inspection Area to stockroom location after acceptance by QA Move products from Incoming Inspection Area to a rejected stockroom location when rejected during incoming inspection Move products from a rejected stockroom location to a normal location after sorting or sampling Move from one product number to another to change the product number Transfer products from stockroom locations to WIP (production order) Complete and move Finished product to stock (production order)

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Warehouse Processes
Transfer products to shipping stockrooms locations Move products from one bin in a stockroom to bin in the same stockroom Move products from one location in one stockroom to another location in a different stockroom Scrap products from a stockroom location or a WIP location Miscellaneous issue from a stockroom location (e.g. samples for engineering) Miscellaneous receipt to a stockroom location (e.g. rework, return of samples) Throw out obsolete inventory Transfer products for deliveries Return products from customers Stock issue on cost center Stock entry on cost center Return from production

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Warehouse Processes
Goods Receipt in WM
Manufacturing outside SAP Confirm Production order

Purchase order

Mvt 501

Mvt 101 Manual Goods receipt TO creation TO printing Physical transfer TO Confirmation

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Warehouse Processes
GR Cancellation in WM
If cancellation happened after putaway

TO creation

TO printing

TO Confirmation

GRV

Accounting postings

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Warehouse Processes
Outbound Delivery / Goods Issue in WM

Outbound delivery

TO creation

TO printing

Physical transfer

TO Confirmation

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Warehouse Processes
TO creation: The TO is created according to the material and the storage type The TO is printed by manual validation Physical transfer: The forklift driver use the TO slip to know from where to take the stock If he wants to change the proposed quantity by storage bin, hell have to indicate it on the TO slip TO Confirmation: During TO confirmation, quantity differences can be recorded (in source storage bin or in difference storage type) For shipping Transfer Order, the confirmation will update the delivered quantity with the confirmed quantity

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Warehouse Processes
Inbound flows Purchased order goods receipt Purchased order goods receipt with manual TO creation Production order goods receipt Destination storage bin change during confirmation Cancellation of goods receipt

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Warehouse Processes
Outbound flows Goods issue on cost center Scrap Outbound delivery Picking Post Goods Issue

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Warehouse Processes
Physical Inventory Process
Four ways to handle the inventory: Full Physical inventory: The inventory is done once or twice a year for the complete stock Continuous inventory: The inventory is done by storage bin during the year, a list of storage bin being counted every week All storage bins are counted several times during the year Cycle counting: The physical inventory is done by material number, the frequency of the inventory based on the ABC code of the materials Manual: correct known differences as they are found.

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Warehouse Processes
Physical Inventory
ABC codes assignment Inventory document creation Inventory document activation Inventory document print Inventory document count Inventory document recount Inventory document Clearing in WM Inventory Clearing in IM

Manual Inventory document creation

FI

Automatic FI posting

C
Automatic CO posting

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