Warehouse Management 1

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WAREHOUSE MANGEMENT



If you are not using the Warehou se Management System , the storage

location is the lowest level of inventory management in the system.



When you implement the Warehou se Management System (WMS) in a plant, you

define the individual warehouses (high-rack storage, block storage, picking area, and so

on) as storage types within a warehouse complex and group them together under a

warehouse number .



Warehouse Number : New Creation

A warehouse complex is represented in the Warehouse Management

system as a warehouse number.3 Character Alphanumeric key that defines a complex warehousing system

consisting of different organizational and technical units (storage areas).



Warehouse Number : Features

All warehouse procedures, such as stock placements and stock removals of

materials, are always executed within a warehouse number.

A warehouse number has the following characteristics:

• A warehouse number does not have an address, but a short descriptive

text.

•It is possible to store material data that is specific to a warehouse number.

•Within each warehouse number , the stock figures are managed as

quantities, not as values .

•

Within a plant it is not possible to assign several storage locations tothe same warehouse number.



Storage Type Definition A physical or logical subdivision(storage area, warehouse facility, or a

warehouse zone) of a complex warehouse ( warehouse number),

distinguished by the warehouse procedures used, the space used

or its organization form or function.

Examples

•goods receipt area

•goods issue area

•picking area

•high rack storage



Storage Type : New Creation



Storage Type : Features

A warehouse number is divided up into a number of storage types. A storage type is defined on the basis of its spatial or organizational features

(for example, high rack storage area, bulk storage area, goods receipt area).

HIGH RACK STORAGE AREA A warehouse area with high-rack shelving units. The individual shelves are separated by aisles. These areas are usually operated on the basis of random storage, that is, each new incoming quantity

is assigned to the next available storage bin. BULK STORAGE AREAWarehouse area without shelves where similar pallets or containers are stacked.

The storage bins in bulk storage are usually separated by lines drawn on the floor. Each bin may only

store a single material (cases of 1 liter bottles of orange juice, for example).

A storage type has the following features: •

A storage type does not have an address, but a short description.

•It is possible to store storage-type-specific material data.

•Within a storage type, inventory is executed for each storage bin.



Storage Section : Definition

In Warehouse Management (WM), a storage section is an organizational

subdivision of a storage type that groups together storage bins with

similar features for the purpose of putting away stock.



Storage Section : Example



Picking Area : Definition

A picking area is a section within a storage type in which all picking activities are carried out inthe same way.

The pick ing area groups storage bins together from the viewpoint of

pick ing strategies and is a counterpart to the storage section, which

groups bins from the viewpoint of putaway strategies.



Storage Bin : Definition

A storage type generally contains several storage spaces or slots known asstorage bins.The storage bin is the Smallest add ressable unit of space in

a warehouse where the goods are or can be stored.

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)



Storage Bin Type: Definition

Storage bins may be divided into groups (for example, large storage bins,

small storage bins, and so on). A suitable storage bin is proposed by the system

during stock placement in combination with the storage unit type.



Staging Area : Definition

A staging area is an interim storage area for goods that have been receivedfrom goods receipt and afterwards need to be transferred into the warehouse. It is also an interim storage area for goods that were picked in a warehouse and

are to be loaded for goods issue through loading ramps or doors.



Staging Area : Definition

Staging area may be assigned various functions like: •goods receipt •goods issue

•cross-docking•flow-through

A door m ay also assign ed be to a staging area as a default value.



Door : Definition

This is the location where the goods arrive at or leave the warehouse. The doors are located in physical proximity to the respective staging areas.



Door : Definition

Various functions which may be to assigned a door ( even simultaneously):

•Goods receipts - Denotes a physical inward movement of goods or materials.

•Goods issues - A reduction in warehouse stock due, for instance, to a withdrawal of

stock or the delivery of goods to a customer.

•Cross-docking - The goods are brought from goods receipt directly to goods issue without

being put away, without being repacked between being received and issued

from the distribution center.

•Flow through - The goods are transported at goods receipt to a zone for repackaging and

are then brought to the goods issue area. There is no placement into storage

between being received and issued from the distribution center. The extra

repackaging step differentiates the flow-through process from that of cross-

docking.



Door : Definition

You can assign different functions to a dock door, for example: •Goods receipt •Goods issue •and other transactions such as cross-docking and flow-through.



Quant : Definition

This is the stock of any material with the same features in one storage

bin.

•When you store goods in an empty storage bin in WM, the system automatically

creates a quant in this bin & automat ical ly assign s a quant number.

•The quant is automatically deleted by the system when the material quantity is

picked.

Quant : Record

This data includes.

•Quant identification

•Plant

•Material number

•Batch number

•Stock category

•Special stock indicator and number



Quant

It is a quantity of material with similar characteristics in a single storage bin.

Bin4 has 2 quants of material 5.

The first quant is quality inspection stock with a stock category of "Q".

The second quant of material 5 has been released from inspection and is now

"unrestricted" stock that is available for use.

Bin1 has two quants,

• a single quant for material 1

• a single quant for material 2.

Bin2 contains 2 quants of material 3,

each with a separate batch number.

Bin3 has a single

quant of material 4.



Changing Quant Data

Logistics Logistics Execution

Internal Whse Processes

Bins and Stock

Display Single Displays

Quant

Enter the warehouse number , the storage type and the bin

coordinate

To access the quant, choose Stock

To change a quant in the list, position the cursor on the quant you want

to display and choose Change Quant .

Save



Stock

Special stock is managed separately in the Warehouse Management (WM)

application for reasons of ownership or for various factors reflecting the location

in which they are kept. Following special stock using WM:

•Individual Customer (Sales Order) Stock (E)- (make-to-order) stock The special

stock number is made up of the sales order number (10 digits) and the sales order item (6

digits).

•Consignment Stock (K)

•Returnable Transport Packaging (RTP) Vendor (M)

•Project Stock (Q)



Stock Category Stock is categorized in WM as follows:

•Available Stock- Unrestricted-use stock

•Inspection Stock - This stock carries the stock category "Q" to indicate that it is in quality

inspection.

Once this stock has been inspected and a usage decision has been made, you carry out

a Transfer Pos t ing in the Inventory Management component and subsequent Post ing

Change in WM to remove the category Q, thus converting it to available stock.

•

Blocked Stock -This stock is displayed in WM with a stock category of "S " . This stock is processed in exactly the same manner as inspection stock. This stock is

processed in exactly the same manner as inspection stock.

•Blocked Stock Returns - When delivered goods are returned by a customer, they are first

posted in the system to "blocked stock returns" with a stock category of "R " .

You must carry out a posting change to return it to available stock.



Stock Status When goods arrive in the warehouse, they are usually received in the Goods

Receipt Area (GR-Area) near the receiving dock. Later, they are transferred

using a transfer order to another area within the warehouse.

During the period of time when move orders have been created for the

movement of goods, two availability statuses exist for this stock which has not

yet been moved.

Hence these goods appear on the display lists under the following three

headers:

•

Quantity or Total Stock- This is the total quantity of material quants stored in thewarehouse that does not include quantities for planned putaways and picks.

•For Stock Placement- A transfer order has been created for this stock to move it from

one storage bin to another. It has been marked for putaway (storage) in the warehouse.

•For Stock Removal - A transfer order has been created to pick this stock from a

storage bin in the warehouse. In most cases, this stock will be transferred to a storage binin the goods issue area.



Unit Of Measure



WM INTERFACE TO IM

The Inventory Management component communicates with WM through

interim storage types.

When you process a goo ds receipt in IM that is posted to a WM -

managed storage location, the quantity is automatically posted to an

inter im s torage area (goods receipt area). Afterwards, WM posts the

goods to a storage bin in the warehouse. This increases the total stock

quantity in both IM and WM.

When you process a goods issue , the system posts a quantity to an

inter im s torage area (goods issue area or shipping zone). This time,

however, a quant with a negative quantity is created since the IM

posting reduces the total stock quantity



WM INTERFACE TO IM



GR in the IM

for a PO

1. GR doc. Is created in IM

2. Stock is posted to Storage Location

1. Automatic transfer requirement in WM w.r.t. GR doc.

2. Stock is noted in a storage bin in Interim storage Area.

Transfer order in WM

w.r.t.

Transfer Requirement

Physical stock movement

to Storage Bin

WM INTERFACE TO IM

Warehouse Management 1

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