h2Application of a SAP SCM EWM warehouse management system for distribution centers in a retail chain/h2
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h6Project figures /h6
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li2 distribution centers in Moscow, Minsk/li
liOver 100 own stores in various formats/li
liAbout 300 suppliers/li
liMore than 10 commodity groups/li
liAbout 7,000 items in the retail center’s product range/li
liUp to 500 items per order/li
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h6Main inventory groups/h6
p class=img-ico-drimg src=/wp-content/uploads/Klienti/almi/almi-tab-ico-01.pngGrocery/p
p class=img-ico-drimg src=/wp-content/uploads/Klienti/almi/almi-tab-ico-02.pngWater, juices /p
p class=img-ico-drimg src=/wp-content/uploads/Klienti/almi/almi-tab-ico-03.pngPerishable meat and dairy products/p
p class=img-ico-drimg src=/wp-content/uploads/Klienti/almi/almi-tab-ico-04.pngDeep frozen products/p
p class=img-ico-drimg src=/wp-content/uploads/Klienti/almi/almi-tab-ico-05.pngFruits and vegetables/p
p class=img-ico-drimg src=/wp-content/uploads/Klienti/almi/almi-tab-ico-06.pngAlcohol and tobacco goods/p
p class=img-ico-drimg src=/wp-content/uploads/Klienti/almi/almi-tab-ico-07.pngRelated non-food products/p
p class=img-ico-drimg src=/wp-content/uploads/Klienti/almi/almi-tab-ico-08.pngHousehold chemistry/p
pimg src=/wp-content/uploads/Klienti/almi/almi-tab-01.png/p
h6Basic operations at distribution centers/h6
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liReceipt of goods from domestic and foreign suppliers/li
liProcessing of returns/li
liQuality inspection/li
liPlacement of goods on various types of shelves, with due account for storage requirements/li
liPicking by items, boxes and pallets/li
liWave picking, breakdown by commodity groups and delivery routes/li
liOrder picking supervision/li
liDistribution cross docking/li
liWeight checks during receipt and disposal (shipping)/li
liControl of the loading onto transport vehicles/li
liScheduled and selective stock-taking/li
liAccounting of returnable packages/li
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h6Problem statement, WMS requirements/h6
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liThe client regains control of the previously outsourced warehouse operations transferring them to its own warehouses. The company uses the SAP WMS system, a component of the SAP ERP corporate core, as a transitional solution. SAP WMS does not meet today’s business requirements and needs quite a number of improvements. A decision is made to apply the SAP SCM EWM (Extended Warehouse Management) system at two logistics facilities with a two-month interval/li
liThe new WMS must have a user-friendly interface to enable warehouse employees to quickly learn and master the new functions/li
liEnsure reliable integration with the main SAP ERP corporate accounting system in the way of exchange of transactional and basic data/li
liEnsure error-free transfer of leftovers to the new WMS/li
liSystem scalability depending on the company’s business expansion/li
liQuick replication of processes at new logistics facilities/li
liSupport integration with external software including the mechanical warehouse equipment (conveyer belts, weighing equipment)/li
liOf critical importance is to significantly increase the order performance (percentage of successfully executed orders) and picking accuracy, to reduce the number of loading errors and to strictly observe shipment deadlines/li
liAll warehouse operations must be performed online using RF terminals/li
liHighly automated warehouse processes and planning of warehouse operations/li
liTransparency and personalization of all processes. Ensure convenient on-line monitoring of warehouse operations/li
liAppropriate storage conditions for different commodity groups/li
liSupport the stock accounting of catchweight goods (fruits, vegetables, cheeses, sausages etc.) in terms of two units of measure (kilograms and packaging units), so as to use the basic unit of weight (kilogram) for primary accounting purposes, packaging units (boxes, baskets, heads, loafs, etc.) for speedy order picking/li
liSupport of different types of storage rack systems (frontal racking system, gravity bins, shelves for small-piece products)/li
liAccounting of returnable packaging (thermal containers, shipping nets, pallets, boxes)/li
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h6TLS Solution/h6
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liIn-depth review of the warehouse structure and operations, internal commodity flow and principles of commodity exchange with counterparties. Allowance for specific features of goods storage and handling operations, consideration of the customer’s preferences to the extent of their implementability in the system. Proposals to optimize warehouse processes, modeling of the future solution./li
liRecommendations for changing the business processes of the warehouse logistics, the functional responsibility of employees, the topology of the warehouse facilities/li
liDetermination of the functional implementation profile adjusted for the specifics of this business. Search of best solutions./li
liStatement of technical requirements to improve the system with due consideration of the optimal business logic, interface ergonomics, and customer preferences/li
liAllowance for specifics of a warehouse with a large variety of products and a limited number of storage positions / bins:
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liensured the cross-docking process with products distributed around the floor/li
liconfigured the two-step consolidation-deconsolidation picking process in the processing center using a wave picking option/li
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/li
liThe wave picking option also enables to link order picking operations to shipping intervals and commodity groups (storage areas)/li
liConfiguration of integration settings enables to meet the acceptance control requirement: the receipt of goods is posted to the ERP after the acceptance of goods by the storekeeper is duly checked for errors by the operator/li
liConfigured tolerances for excess / incomplete deliveries and the excess acceptance logic/li
liConfigured various placement and picking strategies taking into account business requirements and the warehouse topology:
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liPlacement next to a fixed picking place/li
liPlacement with respect to the types of warehouses and storage areas linked to different product line groups/li
liSingle-piece picking using an optimal route among shelves/li
liRuntime customized replenishment of box picking bins/li
liReplenishment of fixed bins rounded upward to the required unit of measure/li
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h6TLS Solution/h6
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liSystemic segmentation of commodity flows within a warehouse into stages including levels of authority for resources/li
liConfiguration of catchweight goods handling processes; improvements to the business logic to enable the automatic choice of the required alternative unit of measure; integration with the warehouse weighing equipment/li
liDeveloped an option to change the status of outgoing handling units involving the Handling Unit Completion operation as part of the picking control process to prevent shipment of unchecked pallets/li
liConfiguration of processes for the Yard Management module to enable due control over the loading of outgoing handling units onto transport vehicles and to control vehicle capacity when creating loading tasks/li
liConfigured the Resource Management option to break down the workforce, machinery and equipment by their roles (functions) and by access permissions in relation to certain storage areas./li
liActivated the System-run Operation mode. Configured the warehouse task queues for different processes/li
liDesigned and configured a virtual shipment exchange scheme to offset shipment discrepancies detected when the goods are accepted in outlets (shops)/li
liDeveloped extensions for the standard EWM warehouse monitor/li
liDeveloped the necessary analysis reports for the by-shift staff performance and for the turnover/li
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h6Result/h6
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liTimely launch of two storage facilities with a full set of functions; after-launch support, training and adaptation of employees to new working conditions/li
liHigh flexibility of processes in relation to different commodity groups/li
liHigh flexibility of processes in relation to different commodity groups/li
liProcess automation and staff performance control enabled to reduce the warehouse headcount by 20% while increasing turnover by 10-15%/li
liEnd-to-end control over all warehouse operations/li
liPicking accuracy increased by 20-30%/li
liOrder performance increased by 35-50%/li
liOnline sessions for operations with RF terminals enabled to increase the validity of data on storage bin content several times/li
liThe Low Stock Control function enables runtime stock review across bins in the order picking process, which also significantly improved the validity of data on leftovers at picking places/li
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