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Author's profile photo Janderson Livio

Update product through ABC Analysis

I was asked very recently about some application within EWM that would make mass analysis and updates of a specific parameter of product master. This parameter was the cycle counting indicator and for my client this parameter has a very dynamic behavior during the year.

I asked how they make these changes currently and the client told me that during the implementation project was built an ABAP report to read some transactional data and make the updates.

Immediately, I gave them a better solution once we already have a standard transaction to carry out these changes and I decided to share with the community this case, because surprisingly I searched for more information about this functionality and didn’t find much.

I hope it can help you in someway, enjoy the blog!

 

Business case

We have three waves of seasonality on our business and each season change the production volume of certain products. Due to this seasonality we have different ABC classification during the year for a different groups of goods. Currently the cycle counting indicator has being updated by an ABAP report that we developed but it has a very poor performance, we would like to have a better tool to carry out these updates.

 

Solution

There are since realease 1809 (I guess) the transaction /SCWM/ABC that can be used to update a few parameters from product master such as: putaway control indicator, storage section indicator and cycle counting indicator.

This is a pretty simple transaction that can be executed foregound or background, follows more details on how to use this transaction.

 

Selecion screen

The selection screen of this transaction has many selection criteria to support your data selection, also, to classify the information, I’ll split all these blocks and explain one by one.

Location & Production Selection

The first one is very simple to understand, here you have to define some key information, even though, the only mandatory parameter is the Warehouse Number, I strongly suggest that you try to filter as much as you can.

Confirmed Product Warehouse Task Selection

The second block provide some movement filters. For me, the most important parameter here is theĀ Confirmartion Date with it you can create a time slot to be analyzed and improve the program performance.

Analysis Strategy Selection

This block should be splitted in two sections:

1. Rules of your ABC analysis

    • ABC Analysis Basis – you should define between Number of confirmed warehouse tasks or Quantity moved, how the system should classify the selected data accordingly with de percentages defined.
    • No. of ABC Categories: this might be different depending on how many different cycle counting indicator there defined in your system.
    • Basis: the system can use percentage or quantity to calculate and classify the selected data, you should choose what better fits your requirement. For instance, in my scenario, I will define that category A should group the products that represent 80% of my WTs confirmed, category B – 15% and category C – 5%.

Note: those indicators on the left side A, B, C and so on. They are not the indicators that will be updated to your product master they are the categories that we create for our analysis.

2. New data definition

Accordingly to their categories, you define how the product master should be updated.

In this scenario, I setup three cycle count indicator, respectively A, B and C. The system will propose automatically based on my definitions at this screen the product updates.

Background Processing

If you want to schedule background job, remember to tick this checkbox.

Execution

After push the button Execute the system will analyze and display the products in form of a list.

In this list, you can make your changes manually if you wish and after that save the updates following these two steps.

 

More information

For more information about this subject:

SAP EWM Help – Look at section Goods receipt / Slotting / ABC Analysis

SAP FIORI Library – Check the app Perform ABC Analysis details

Note: I have no information about license restriction of the use regarding this functionality, consult your SAP account manager to know more about.

 

Thanks for reading, if this was helpful in anyway leave a comment or if you have any question.

 

Until next time.

 

All the best.

Janderson

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      5 Comments
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      Author's profile photo Martin Prokop
      Martin Prokop

      Very nice description, Livio.

      I have used ABC Analysis similar way so far and was always asking, why this functionality so much overlaps with Slotting. While Slotting is more rigid, everything has to be determined from customizing or condition records, and ABC is more "on-the-fly".

      Regards

      Martin

      Author's profile photo Janderson Livio
      Janderson Livio
      Blog Post Author

      Hi Martin.

      Thanks for the comment, I appreciate it.

      Indeed it seems to overlap some functionalities, but actually not.

      ABC Analysis is based only in confirmed warehouse task data, which means, based on the past.

      Slotting consider the WT data as well, but also the open demand, which means, it's going to help client to plan their best placement strategy for the present and near future.

      All the best.

      JL

      Author's profile photo Alexandra Ene
      Alexandra Ene

      Very nice description! Could you help me find the ABC indicator on warehouse product?

      I could only find the customizing path in EWM; but no field in warehouse product. There is no note that describes this.

       

      Thank you in advance!

      Alexandra

      Author's profile photo Janderson Livio
      Janderson Livio
      Blog Post Author

      Hi Alexandra.

      There's not ABC indicator field in product master, only cycle counting indicator, which you can use as an ABC indicator, but, this is not the purpose of this field.

      ABC classification is not static, it can change anypoint in time, so I guess that is why doesn't exist a field to store this information.

       

      BR.

      Janderson

      Author's profile photo Alexandra Ene
      Alexandra Ene

      I actually find out in the meantime while digging in... that you can insert the ABC indicator in ERP material master - MRP1 and it is transferred in EWM; but there is no real place to display it.

      However, you can see it in MASSD from EWM side. :)))