Make the Most of SAP WM Inventory Count Capabilities

  • by Jose Senra, Senior SAP Solutions Architect and Project Manager, Hewlett-Packard (January 2009)
  • May 15, 2007
Learn about the three main inventory count methods in Warehouse Management — annual inventory, continuous inventory, and cycle counting — and see how you can determine which process is best for your situation. Then find out how to configure each process.
Key Concept
The goal of the inventory count process is to ensure the accuracy of stock figures by checking actual physical values against the data recorded in the systems, and then taking corrective actions to reconcile them. The more accurate the information is, the more effective the processing of shipping and replenishing orders. This results in reduced costs and a streamlined supply chain.
Optimizing the warehousing operation is a compelling objective in all types of industries. Having correct stock information delivered at the right time is one of the key factors to achieve an optimized warehouse. This is evident, for example, in the outbound shipping operation.

Delays caused by “out-of-stock” situations from inaccurate stock figures may have severe consequences, including financial penalties for unfulfilled customer orders, extra cost for transportation delays, and problems in the manufacturing and planning systems because you must accommodate orders in a rush mode for the missing products. The inventory count strategy can help you avoid these types of situations.

First, I’ll help you select the inventory count method that is most suited to your environment by providing an overview of how SAP addresses inventory count processes. Second, based on my experience, I’ll provide advice about the choices for running the transactions required in the process and performing the configuration in the system. I’ll guide you through the process to complete an optimum configuration for the standard inventory count options for SAP Warehouse Management (WM) centralized with SAP Materials Management (MM) in SAP ERP Central Component (ECC 6.0). However, the process I describe also applies to previous versions of WM.

Jose Senra

Jose Senra is a senior solutions architect and project manager (PMP) located in Barcelona, Spain. His focus is on designing and deploying SAP supply chain global business process templates for large international corporations. In his more than ten years of IT experience working for Procter & Gamble and Hewlett-Packard he has covered a wide range of the ERP logistics area. He is certified in SAP Logistics Execution System, Warehouse Management, Production Planning, Plant Maintenance, Project System, and Solution Manager. He also has experience in EDI, Manufacturing Execution Systems (MES), and the design of applications management and development using ITIL principles. He has participated in numerous industry conferences, such as Logistics and Supply Chain Management 2008 in Orlando and the HP SAP upgrade factory event Barcelona 2008.

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Comments

6/29/2015 9:02:07 PM
Siddharth

Hi,

Thank you for the detailed article in WM physical inventory. However I have one doubt. How do you calculate inventory accuracy KPIs in WM?

BR,
Siddharth

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