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SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 9 (Automatic Picking, Packing, Batch Determination, 2-Step Picking in Warehouse)- Improves Warehouse efficiency and Performance Optimization)

¬†ūüėȬ† ūüôā Main Objective of this Blog is concentrating on performance Improvement Measures and Optimized use of Warehouse Automation activities which yield Improved Material handling, Time consumption, brings happiness to both management and warehouse Workers and Professionals. Thanks to SAP for bringing this much sophisticated system.¬† ūüôā¬† ūüôā

If in any warehouse if management analyze the performance and material handling time on many factors this automated features will definitely satisfy the end customer and bring them full hope on SAP. so that again saying SAP stands No-1 in ERP and SCM Field.¬† ūüôā

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 5

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 4

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 3

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 2

SAP WM ‚ÄďProcess, Functionality, Scope, Benefits, Advantages, Disadvantage- Complete Reference-Part 1

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Continued (Part 9) …..

Here some few business Process related to WM-PP Integration.

Inbound from external

(purchase orders) – ME21N

  • VL31N ‚Äď create inbound delivery with reference to purchase order.

  • VL32N (terminal)/ RF) – pack handling units and post goods receipt for inbound delivery.

  • VL33N ‚Äď display inbound delivery; use document flow or header details to confirm PGR (post goods receipt) is complete

  • Wait for Quality to inspect and complete system usage decision if applicable.

  • LT09 & LT12 (terminal) or we can do in RF¬†‚Äď put away to destination bin.

  • LS26/LS24 to validate stock overview and MB51 to see movement history. (mvt type 101).

Outbound to production

(production orders)

    • VL06O ‚Äď list outbound deliveries referencing production order to find the outbound delivery.

  • MB1A ‚Äď create outbound delivery with reference to production order; used if delivery must be created manually

  • CO03 (display production order) & VL03N (display outbound delivery) ‚Äď compare item category L non phantom line items from production order to delivery to ensure all stocked items passed to the delivery document.

  • LT03 & LT12 (terminal) or we can RF-¬†Create¬†transfer order, pick, pack and post goods issue material for production order.

    VL03N ‚Äď outbound delivery should automatically post goods issue when transfer order is confirmed. Can verify through document flow or header details.

  • MMBE/LS26/LS24 to validate stock overview and MB51 to see history. (mvt type 261).

 

Inbound from production

(production orders)

  • CO03 ‚Äď display production order; use to validate material, qty. and component requirements vs. qty. withdrawn

  • CO15 ‚Äď confirm production order.

  • MB31 ‚Äď create inbound delivery.

  • VL32N (terminal)/¬†or we can use¬†(RF) ‚Äď pack handling units and post goods receipt for inbound delivery.

  • Wait for Quality to complete system usage decision if applicable.

  • LT09 & LT12 (terminal)/¬†or we can use¬†(RF) ‚Äď put away to destination bin.

*** Related/helpful transactions: COOIS – production order information system; VL06I – inbound delivery monitor, list inbound deliveries to identify any given delivery number.

Outbound to external

(sales orders)

  • VL10H ‚Äď create outbound delivery for sales order.

  • Transfer order for outbound delivery should auto create. ¬† ¬† ¬† If need to create manually use LT03.

  • LT12 (terminal)/ or we can use¬†(RF) ‚Äď pick and pack handling units for sales order, confirm TO.

  • LT21/VL03N ‚Äď Validate TO confirmation.

  • We can use list of sales order transaction; VA03, display sales order.

Many People will ask how a TO will get confirm and how system execute it. if suppose TO having many line items how it execute the TO line items assigned to a Delivery. for the kind information we can club many Deliveries in TO and confirm it. so how it performs
Answer is TO is picking line by line I mean First line item in TO is checked and confirmed like wise second and then Third..to n- number of line items in TO. Even if you are confirming a TO in VMU it behaves like that.¬†¬† ūüôā¬† ūüôā

Automatic Picking, Packing, Batch Determination, 2-Step Picking in Warehouse- this process will help Warehouse user to waste time and quicken the Process and end result will result will be optimized Performance. Implementing SAP in a Warehouse itself a Automation and if we implement Auto picking, packing and Batch Determination and 2- Step picking. users will feel more happy¬† ūüôā¬† ūüôā¬† ūüôā and they can concentrate on more volumes of Orders without a hustle.

Configuration steps for automatic picking

Automatic picking happens with an output type ‚ÄúWMTA‚ÄĚ – Automatic TA,
we need to maintain an output condition record using t code: VV21.
Configuration steps for automatic picking….

¬†¬†¬†¬† WM should be active at delivery item level, t code: OVLP. Check ‚Äúrelevant for picking‚ÄĚ.

       To trigger WM transfer order in the delivery document we need one more config step in the IMG, for this go to SPRO à Enterprise Structure РAssignment РLogistics Execution РAssign warehouse number to plant/storage location.

      Along with these settings we also need WM consultants to configure the WM settings. This includes the settings related to lean WM or central WM.

     Number range for pick order should be maintained, for this go to à SPRO РLogistics Execution РShipping РPicking РDefine number ranges for pick order.

       Assign the output procedure for the delivery type, t code: v/71, or SPRO РLogistics Execution РShipping РBasic shipping functions РOutput control Рoutput determination Рmaintain output determination for outbound deliveries РAssign output determination procedures.

       During maintaining a condition record for WMTA output type you can have any key combination as per the business requirement. In this system I have selected a key combination of Delivery type and shipping conditions.

Configuration steps for automatic packaging

 

Automatic packing has some typical configuration and master data settings, see below:

       Maintain number ranges for handling units, menu path SPRO РLogistics Execution РShipping РPacking РDefine number ranges for Handling Units.

       Delivery type should be activated with Automatic Packing, menu path SPRO РLogistics Execution Рshipping РDeliveries Рdefine delivery types

       Define packaging material types Menu Path SPRO РLogistics Execution РShipping РPacking РDefine packaging material types.

       Define material groups for packaging materials, menu path: SPRO РLogistics Execution РShipping РPacking РDefine material groups for packaging materials.

       Define allowed packaging materials, menu path: SPRO РLogistics Execution РShipping РPacking РDefine allowed packaging materials.

Along with these basic settings we also need to configure in handling unit management module for automatic packing.

¬†¬†¬†¬† Maintain packing transaction profile, menu path: SPRO¬†– Logistics General¬†– Handling Units Management¬†– Automatic Packing¬†– Maintain packing transaction profile. ‚ÄúT code: OVHU2‚ÄĚ

Select the transaction profile ‚Äú0002 ‚Äď Outbound Delivery‚ÄĚ and go for details. Check ‚Äústart automatically‚ÄĚ in the details screen as shown below.


Also maintain the determination procedure for packing instructions as shown in the above screen.

       Determination procedure for Packing Instructions. Menu path SPRO РLogistics General РHandling Units Management РAutomatic Packing Рdetermination of packing instructions.

Handling units work based on the condition technique, configure all necessary config settings for condition technique to work appropriately.

I used the procedure as ‚ÄúZ00001 – Auto Pack Ref Material‚ÄĚ and determination type as ‚ÄúZPKG – Auto Packing Ref Mat‚ÄĚ

 

Access sequence that I used is ZPKG with a condition table ‚Äú901 – Reference material for materials packed in same way‚ÄĚ

¬†¬†¬†¬†¬† Maintain the master data for the packing instructions ‚Äút code: POP1‚ÄĚ, menu path: SAP Easy Access¬†– Logistics¬†– Central functions¬†– Handling Unit Management¬†– Master data¬†– Packing Instructions¬†– Create/change/display.

¬†¬†¬†¬†¬† Further maintain packing instruction determination record. ‚ÄúT code: POF1‚ÄĚ, Menu path: SAP Easy Access¬†– Logistics¬†– Central functions¬†– Handling Unit Management¬†– Master data¬†– packing instruction determination record¬†– create/change/display.

   Final master data settings need to be done in material master data under basic data tab and plant/general data tab for finished goods and also for packaging materials.

 

Configuration steps for automatic Batch determination in delivery

 

To trigger the batch number in the delivery document automatically we need to do necessary configuration and master data maintenance.

Batch management works on condition technique, menu path: SPRO РLogistics General РBatch management РBatch determination and Batch check.

Here we need to create new strategy types if necessary and access sequence if necessary, and also batch search procedure if necessary.

Allocate the SD batch search procedure using the menu path: SPRO РLogistics General РBatch management РBatch determination and Batch check РBatch Search Procedure Allocation and check activation РAllocate SD search procedure/Activate check.

Activate Automatic Batch Determination in SD using menu path: SPRO à Logistics General à Batch management à Batch determination and Batch check à Activate Automatic Batch Determination in SD. Here we have two options, 1. To activate batch determination for sales order item and 2. is to activate batch determination for delivery item, upon the requirement we can activate at both the places,

But in general batch are activated only at delivery item level.

If we need shelf life expiration date for the batch we need to create a class using ‚Äút code: CL01‚ÄĚ, type in a name for the class and select the class type as ‚Äú023 ‚Äď Batch‚ÄĚ and maintain the characteristics as LOBM_VFDAT and LOBM_HSDAT (this for production).

Once the class is created go to material master under classification tab and maintain the class created.

One more important setting in the material master is to check the batch management. This need to be done before you process the material for orders.

Go to create batches for materials using t code: MSC1N or menu path: SAP Easy Access¬†–¬† Logistics¬†–¬† Central Functions¬†–¬† Batch Management¬†–¬† Batch¬†–¬† Create/change/display.

You can create new batches for the materials and also maintain the Shelf life expiration date (SLED) in the batch master.

so as to determine the batch automatically we need to maintain a condition record for batch search strategy type using t code: VCH1 or menu path: SAP Easy Access¬†–¬† Logistics¬†–¬† Central Functions¬†–¬† Batch Management¬†–¬† Batch Determination¬†–¬† Batch Search Strategy¬†–¬† for sales and distribution¬†–¬† create/change/display.

During the maintenance, maintain the class also in the condition record.Go to create batches for materials using t code: MSC1N or menu path: SAP Easy Access РLogistics РCentral Functions РBatch Management РBatch РCreate/change/display.

You can create new batches for the materials and also maintain the Shelf life expiration date (SLED) in the batch master.

So as to determine the batch automatically we need to maintain a condition record for batch search strategy type using t code: VCH1 or menu path: SAP Easy Access РLogistics РCentral Functions РBatch Management РBatch Determination РBatch Search Strategy Рfor sales and distribution Рcreate/change/display.

¬†Reason for sharing pallet information here is for example if you are working with Putaway strategy especially Bulk strategy you should work on Max SU’s Allowed/ Stack height and¬†Storage calculation. so understanding of Pallet is more important. (When we Google it we can see n-number of information). like wise SAP WM consultant needs to know information on Warehouse space optimization related calculation, Performance tracking, bin size calculation, stack height, RF Tower vs. RF handled Devices- Scanners, Hand-held Devices and Fork-lifts mounted. so that WM Equipment’s will work efficiently. we need to know and learn information outside SAP WM also. That will help us many times while working in real- time Projects. I hope experienced guys can agree here.

¬†****Normally European union will change their policy, laws each and every year. so if applicable for 2017 will not be applicable to next coming years. Dynamic. ūüôā¬† ūüôā

Standard pallet ( We can get more number information in Google.

 

International Standard Pallet

 

In the United States, the standard wood pallet is 48 inches wide, 40 inches deep and 6.4 inches tall. Less common pallet dimensions range from the 36″ by 36″ pallet used in some beverage industries to the 48″ by 48″ pallet used to transport large barrels.

CHEP Pallet

 

CHEP (Commonwealth Handling Equipment Pool) is an international company dealing in pallet and container pooling services, serving customers in a range of industrial and retail supply chains. CHEP is owned by Brambles Limited. CHEP offers wooden and plastic pallets, small display pallets, crates and IBC containers.

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sizes of the pallets vary across regions in the world

In US/NA/LA, there a lot of chance that the pallet you will found will not have the same size as someone living in Asia, Europe or Australia for example. Even if pallet sizes vary considerably between the different countries in the world, much progress has been made in terms of standardization and reusability. This was necessary as increased global trade necessitated the need for standard pallet dimensions which are now reflected in the ISO Pallet list. Of the many different pallet sizes available, the International Organization for Standardization (ISO) has approved six pallet dimensions which are now widely used around the globe, you can check the ISO Pallets Dimensions table below but we also added the differents pallet sizes & dimensions available in the main geographical regions of the world.

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In SAP we can see this details in Configuration for Storage bin Types.- IP, CP,,etc,

We have IP assigned to storage type 004 and E1 is the allowed Storage bin type. We need to assign the SUT in WM2 view in material master

We will now do the Block structure,

While doing Goods Receipt we can see the Pallet Details in WM Tab in Item View

 

save and confirm TO. We can see the WM stocks as

 

Here I like to point out WM Views 1 & 2 Purpose (but for here in this blog, but somehow I missed to include in my earlier blogs.

Warehouse view data
‚Äď
Hazardous material record number
‚Äď
Capacity usage (e.g., 1 piece = 30 lbs)
‚Äď
Fixed bin number, when applicable
‚Äď
Fixed bin control data (minimum, maximum and replenishment quantity)
‚Äď
Palletization information (e.g., 84 units per pallet)
‚Äď
Storage type indicators for this specific material
‚Äď
Storage section indicators for this specific material (Fast Moving, Slow Moving, etc.)

The material master comprises two views
ÔÉė
The first view contains the basic WM specific data
ÔÉė
The second view is specific to the storage type

If we need to work on Bulk storage strategy then we need to populate Bulk storage Indicator in the filed Bulk Storage in WM 1 View in Material Master.

WM 1 View

WM 2 View

 TWO Step Picking Process

When click  on Set up 2 step picking for Transfer Requirements, another screen opens where we have 2 activities need to be performed as shown below.

Below Transfer requirement control, we have to make following setting

1) Assign 2 step picking under column 2stP for given Warehouse No

2) 2 Step is Material dependent or not. If check  column 2-stMatl, only those Materials  will be part of 2 steps picking where 2 step  provision is made  in Material  master under Warehouse view 1

3) Movement type 850 needs to be assigned as this is movement type will be used during first TO during collective picking to bring the materials to interim Storage Type 001.

Once it is done, we need to set up 2 step picking for transfer type- Stock removal under transfer type control.

Same configuration is involved for outbound Delivery. Configuration path can be found under Interface‚Äď>Shipping‚Äď>2 step picking

 

Pics5.jpg

 

Now once it is configured, We now need to set up Storage type search for 2 step picking. Here we need to assign operation 2 and give storage type as 001 as stock will be kept at storage type 200 before final allocation.

Configuration step will be same as we do for normal Put away and Stock removal Storage type search

SPRO‚Äď>Logistic Execution‚Äď>Warehouse Management‚Äď>Strategies

We have complete with 2- Step picking Process Configuration.

****Multiple processing allows SAP WM user to Group TR or Outbound deliveries and process the group at single shot. Processing a group of requirements or Deliveries, rather than converting each individual TR or each Outbound delivery into a TO, can reduce the time taken on these tasks. A group is defined a as work package containing a number of TR or Deliveries . This work package is used for optimal picking operations. Grouping together TR for same movement type or same storage type can increase the productivity f the Warehouse operation. Groups are often created for TR when many material movements in the warehouse are triggered by TR.  In a distribution Warehouse, a more number of movements are required to satisfy the deliveries to retail establishments. use of Transaction LT41 to create group for TR.

Two step picking field for relevancy indicates whether the system will perform 2- step picking. if the indicator is blank the group records will not be subject to 2-step picking. if the indicator is set to 2 then it is relevant for 2- step picking.

*****When Groups are used with respect to Outbound deliveries then they are called Waves. Wave pick is also a work package like a group- but i contains number of Outbound deliveries. Wave pick is created using Wave Monitor. The advantage of Wave pick is that it is possible to select the outbound delivery according to time slots. if a warehouse has 3000 Outbound deliveries per shift, th wave pick per group these deliveries for each time slot, if the shift starts @ 6 Am and end @ 2 PM a wave pick can be run for each time slot, which can be hourly and the deliveries cab be processed in that manner. we can create wave pick using outbound delivery monitor VL06P.

 

Scenario to test 2- Step Picking

Now We will take 2 step picking for transfer requirement document. We will create TR via Storage Location to Storage Location transfer. If both SLOC are warehouse Managed under same Warehouse no, Posting change notice is created but we need to have TR so I will transfer from WM managed Storage location 1000 to non WM managed Storage location 1100 in below example.

1) Assigning 2 step indicator in Material Master:2) Creation of TR via Transfer Posting in IM via MB1B with movement Type 311:
3) Creation of  group : Now we need to create group combining all these 3 TR’s  which will be reference documents for first TO for collective picking. Group is created via LT41 transaction.System will ask to enter Group no created above and Warehouse No. Execute the report. System will display 2 Row- Picking and allocation if group is 2 step relevant else System will give warning message.Press EnterNow Collective Picking process is done. We can see  Picking row will be green if we put cursor on pick row and press DataSo we can see that Allocation to respective TR has occurred via TO#98,99 and 100. Now we can see that LX39 report shows allocation green as it is completed.

We can see in LX39 the 2- step picking was completed.

 I hope below Flow Diagram is now easily understandable. how system groups the Delivery into Groups and it helps warehouse worker to minimize the Processing time of Deliveries and Optimize the efficiency. suppose a warehouse worker in particular shift can club the deliveries created and Process it in single shot.

Two step picking is used to achieve operational efficiency.

Cross Docking

Cross-docking is a practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between. … The US military began using cross-docking operations in the 1950s.

Crossdocking is a goods flow-through process in which inbound goods are directly used for shipping outbound orders, eliminating the need to store them in the warehouse

Many companies using CD for their cost reduction and increase customer satisfaction which improves overall warehouse efficiency.

Types of Cross Docking

Manufacturer Cross docking

Operation involves the receipt of purchased and inbound materials required by manufacturing. The warehouse receives the materials and prepares sub-assemblies for production orders.

Distributor Cross docking

Consolidation of Inbound materials from Different vendors into mixed pallet which is delivered into mixed Pallet, which is delivered to a customer when a material is received. e.g- computer parts distributors often source their components from various vendors and manufactures and combine them into one shipment for the customer. consolidation occurs in Shipping Area.

Transportation Cross Docking

Operation combines shipment from different shippers in the less than the truck-load and small package industries to gain economies of scale.

Retail cross Docking

Process involves the receipt of materials from multiple vendors and sorting onto outbound trucks for several retail stores.it is a cost saving measure.

Opportunistic Cross docking

This can be used in any kind of warehouse, transferring materials directly from the goods receiving dock to the outbound shipping dock to meet a known demand, such as customer sales orders.

Next we need to know which materials are suitable for cross docking:-

Materials which are perishable  and requires immediate shipment.

High quality items that does not required quality inspections during GR.

Material that are pre-tagged (bar code, RFID), pre-ticked and ready for sale @ the customer location ( example like TARGET RETAIL.. etc….).

Promotional items and materials that are being launched.

Retail materials with a constant demand or low demand variance.

Pre-picked, pre-packaged customer orders from a n external production plant, distribution center and Warehouse.

******SAP Supports both Planned CD and Opportunistic CD. The difference is Planned cross docking allows you to make decisions before materials arrives @ the warehouse, whereas opportunistic CD decisions occur after materials arrives to Warehouse. it is left to client to choose the CD based on their requirement and business Process they like to follow. SAP also supports to use both Planned and Opportunistic CD in the same warehouse. but planned CD reduces the need to deal with materials once they arrive @ the Warehouse

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SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 10 (IDOC’s used in SAP WM)

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 8 (Questionnaire for WM- requirements understanding / understanding clients business process)

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 7 (Comparing 4.6 C & ECC 6.0 WM Screens)

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 6 (Cut over activities Details)

SAP Warehouse Management_Step by Step configuration Document

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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6 Comments

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  1. Mark L lee

    Hi Shivakkumar

     

    Wonderful Blog on SAP WM. it is very useful to me. especially i like business functionality flow diagrams, types of pallets and how it is mapped in SAP.  Thanks again.

     

    Regards,

    Mark

    (0) 
    1. shivakkumar Geetha venkatesan Post author

      Hi Mark,

      Regret. I have removed Flow Diagrams, Pallet photos. I think it will get duplicated. Now updated this blog. Please share your thoughts here. that is considered more valuable. Thanks Mark.

      (0) 
  2. Elizabeth mary

    Good one. I am not finding Cross docking node in SPRO- LE- WM. Menu path. I hope we need to add/ activate the component.. can you please add those information if you know it. then it would be more interesting blog.

    can you please add configuration for CD. Also with Transactions,

    Mary Elis

    (0) 
  3. Elizabeth mary

    I have not gone through complete info on this blog. but i would appreciate your work on business flow diagram that i am sure it is easy for me to understand, I hope details furnished here are more productive.

    (0) 

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