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Author's profile photo Luan Wagner

Automatic Replenishment in SAP S/4HANA Cloud Warehouse Management

Hello SAP Community,

This is a continuation of my blog series about Replenishment Strategies in SAP S/4HANA Cloud Warehouse Management.

In my previous blog post, I focused on Planned Replenishment. In this blog post, I will focus on Automatic Replenishment and setup an example using fixed bins.

Automatic Replenishment is triggered when the warehouse operative confirms a picking warehouse task that decreases the quantity in the storage bin to below the minimum quantity threshold. The system automatically triggers a replenishment warehouse task creation in the background.

Characteristics of Automatic Replenishment:

  • Calculates replenishment according to existing stocks in the picking area and the minimum and maximum quantities from fix bins or product master
  • It’s only started when the stock figure is lower than the minimum quantity
  • It is triggered automatically upon warehouse task confirmation
  • The system rounds down the replenishment quantity to a multiple of the minimum replenishment quantity
  • Replenished quantity will not be higher than the maximum quantity

Figure%201.%20Automatic%20Replenishment

Figure 1. Automatic Replenishment

Master Data Setup:

The Master Data Setup is very similar to Planned Replenishment.

1. Activate Replenishment Strategy: Manage Your Solution > Supply Chain > Warehouse Management > Internal Warehouse Processes > Activate Replenishment Strategies in Storage Types

Figure%202.%20Activate%20Replenishment%20Strategies%20customizing%20view

Figure 2. Activate Replenishment Strategies customizing view

2. Assign fixed bins to products: in Assign Fixed Bins app assign fixed storage bins to the product, informing the minimum and maximum quantity for the bin

Note: these maximum and minimum quantities in the fixed bin are solely used for replenishment, it’s not a physical limitation, e.g. I can manually move more than 50 PC to my storage bin below

Figure%203.%20Assign%20Fix%20Bins%20app

Figure 3. Assign Fix Bins app

3. Set Stock Removal Control Indicator: the removal indicator will tell the system where to pick the stock from and what is the removal rule (e.g. FIFO). Please take a look at KBA 3075567 in case you notice your replenishment warehouse task is using the Putaway Control Indicator instead of Stock Removal Control Indicator.

You define it in Manage Product Master Data app > Warehouse Management > Stock Removal

Figure%204.%20Stock%20Removal%20in%20Product%20Master%20Data

Figure 4. Stock Removal in Product Master Data

4. Define replenishment quantity in the product master (optional): this setting defines what is the minimum quantity for the replenishment WT, and the min. and max. replenishment quantity in the storage type. For example, if the minimum replenishment quantity is 5 PC the system will not create any task for less than 5 PC and only for multiples of 5 (5, 10, 15, and so on).

You define it in Manage Product Master Data app > Warehouse Management > Warehouse > Storage Type > Replenishment

Figure%205.%20Storage%20Type%20Specific%20Replenishment%20in%20Product%20Master%20Data%20app

Figure 5. Storage Type Specific Replenishment in Product Master Data app

Procedure:

After the automatic replenishment is customized, the system will automatically create a replenishment WT (in open status) once a picking WT that reduces the stock quantity to less than minimum quantity defined in step 2 is confirmed.

Conclusion

With this process, you can automate the creation of replenishment warehouse tasks to ensure the right inventory levels for your product in the areas where picking is done.

At the end of the process, the warehouse operative confirms the warehouse tasks and makes sure that the stock is moved from the reserve area to the picking area.

Additional Information

SAP Help Portal Replenishment Control: https://help.sap.com/viewer/87f9b54f9c4f4e75aff0061860a6589a/latest/en-US/a8f8c1c6de10466cb6a335df94d16ae1.html

SAP Help Portal Configuration for Replenishment Control: https://help.sap.com/viewer/87f9b54f9c4f4e75aff0061860a6589a/latest/en-US/0bfbc5fe6cfb4a34af90f72307386eba.html

Best Practice for SAP S/4HANA Cloud > Supply Chain > Warehousing > Scope Item Replenishment in Warehousing (4A2): https://rapid.sap.com/bp/#/browse/packageversions/BP_CLD_ENTPR

Please feel free to leave any comments or questions below and any additional topics you think are valuable to have included in this and future blog posts. 

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      Author's profile photo Jens Koyen
      Jens Koyen

      Hello Luan Wagner ,

      Thank you for these valuable insights into the new replenishment functionalities in S/4HANA Cloud WM. It certainly is an added value to our cloud customers!

      However, I have 1 question based on the example above. You are assigning SRCI S001 to your product so that the system proposes to replenish the fixed bins in ZF01 from the standard storage S001. However, then during your outbound process, your system will not propose to pick from ZF01 to ship to customers, but also from S001?

      Can it be that additional setup is required for the warehouse process type S310, such as: 'Storage type search sequence' + 'Storage type search sequence for stock removal' + 'stock removal indicator'?

      Thank you for your feedback!

       

      See below print screen + REF to another Blog on EWM Replenishment setup (ref. C K REDDY):

      https://blogs.sap.com/2016/07/27/ewm-replenishment-process/ref%20C%20K%20Reddy

      ref C K Reddy

      Author's profile photo Luan Wagner
      Luan Wagner
      Blog Post Author

      Hi Jens Koyen,

      Thanks for your feedback and thanks a lot for the question, I will use the setup here in a future blog post!

      You are correct, leaving the customizing as it is the system will try to pick from S001 during outbound process. In this example, I followed the steps from SAP Help Portal which is recommending adding the SRCI to the product directly:

      https://help.sap.com/viewer/87f9b54f9c4f4e75aff0061860a6589a/LATEST/en-US/0bfbc5fe6cfb4a34af90f72307386eba.html

      In C K Reddy’s blog post, he’s also assigned the SRCI REPL to the product master in /SCWM/MAT1, which is the same scenario. The additional customizing for search sequence was created because his replenishment was happening from Storage Types SHIR and REAR. REAR is the Putaway Control Indicator as well, so I understand the stock is supposed to be putaway’ed to REAR than replenished to REPL storage type. There must be additional customizing to pick from REPL storage type as well. Here I used only Storage Type S001, so the stock is putaway’ed to S001 and replenished from S001 to ZF01.

      The full customizing here to have system working properly would be the following:

      In app “Manage Your Solution”:

      Supply Chain > Warehouse Management > Cross-Process Settings:

      25. Define Warehouse Process Type: Here I created the WPT Z210 (for the picking)

      Figure%201.%20Define%20WPT

      Figure 1. Define WPT

      26. Assign Storage Bins to Warehouse Process Type (Optional): I defined I want WPT Z210 to move the product directly to GI Storage Type S920

      Figure%202.%20Assign%20storage%20bins%20to%20WPT

      Figure 2. Assign storage bins to WPT

      27. Define Control Indicators for Determining Warehouse Process Types: “Allows you to define control indicators for products, which you can then use to group products for warehouse process type determination.”

      I’m using standard S1 in this example.

      Figure%203.%20Define%20CI%20for%20WPT

      Figure 3. Define CI for WPT

      28. Determine Warehouse Process Type: Here we tell the system that Control Indicator S1 will assign WPT Z210.

      Figure%204.%20Determine%20WPT

      Figure 4. Determine WPT

      Supply Chain > Warehouse Management > Goods Issue Processes:

      2. Specify Storage Type Search Sequence: Created the search sequence to search in Storage Type ZF01:

      Figure%205.%20Specify%20Storage%20Type%20Search%20Sequence

      Figure 5. Specify Storage Type Search Sequence

      4. Determine Storage Type Search Sequence for Stock Removal: Assigned WPT Z210 to use storage type search sequence ZF01

      Figure%206.%20Determine%20St.%20Type%20Search%20Seq.%20for%20Stock%20Removal

      Figure 6. Determine St. Type Search Seq. for Stock Removal

      5. Optimize Access Strategies for Stor. Type Determination in Stock Removal:

      Here is an important thing: System will use the Process Type (Z210) before using SRCI (S001). It means if there isn’t a matching stock in ZF01 (based on search sequence for WPT Z210), it will then use the SRCI.

      Figure%207.%20Optimize%20Access%20Strategies%20for%20Stor.%20Type%20Determination%20in%20Stock%20Removal

      Figure 7. Optimize Access Strategies for Stor. Type Determination in Stock Removal

      In app “Manage Product Master Data” > Warehouse Management > Warehouse:


      Figure%208.%20Manage%20Product%20Master%20Data%20app

      Figure 8. Manage Product Master Data app

       

      Now once we create the picking WT, the expectation is that system will use WPT Z210, seach inside Storage Type ZF01 and move product directly to Storage Type S920:

      Figure%209.%20Picking%20WT

      Figure 9. Picking WT

      Best regards,

      Luan

      Author's profile photo Jens Koyen
      Jens Koyen

      Hello Luan Wagner ,

      Thank you for this additional information. I am trying out a similar setup as above but we are using Order-related replenishment to replenish our pick bins. However, our pick bins are not fixed, thus it is being replenished on storage type level.

      Unfortunately, even though everything seems to be set-up correctly (both replenishment customizing + rough-bin determination in storage type and in warehouse process type + foresaw some stock in our mass pallet storage type + ensure there is no stock in pick bin storage type + foresaw an ODO as a requirement), still the system does not find any replenishments... (see attachment).

      Cloud%20WM%20Order-related%20replenishment%20issue

      Cloud WM Order-related replenishment issue

      In SAP EWM for order-related replenishment the storage bin field for an Outbound Delivery Order Item is filled with *** indicating that rough-bin determination has been successfully executed and thus the storage type is linked to the warehouse request. This behaviour does not present itself in Cloud WM.

      EWM%20ODO%20Item%20with%20bin%20assigned%20for%20order-related%20replenishment

      EWM ODO Item with bin assigned for order-related replenishment

      Therefore, I believe the order-related replenishment is not working yet it seems. I will log a ticket for further analysis, but please let me know your findings here.

      Thank you very much for your feedback!

      Kind regards,

      Jens