New mySAP SCM WM Features Support Rapid Turnover of Materials
- by Christoph Leßmöllmann, Director for Supply Chain Execution in Global Product Marketing, SAP AG
- October 1, 2003
Three new features delivered with SAP R/3 Enterprise SCM Extension 2.0 are designed to help you increase the turnover of goods in your warehouses. Yard Management lets you manage inbound and outbound carriers. Cross-Docking allows you to direct inbound goods straight from goods receipt to goods issue, and value-added services help you capture value-adding costs. The author describes each new feature and provides examples of how you might use them.
Companies face increasing pressure to turn over goods in warehouses
and distribution centers more rapidly. The benefits of reducing
the transportation and distribution times throughout the supply
chain are obvious: less inventory is needed, the operation is more
efficient, and the supply chain has more potential to react flexibly
As a result of this increased turnover of goods, processes inside
the warehouses are changing. The total storage time of goods in
the warehouse is becoming shorter, and the number of goods movements
in the warehouse (putaway, picking, stock transfer) are constantly
being reduced. To support these changes, SAP has added new features
to the Warehouse Management (WM) capability of mySAP Supply Chain
Management (mySAP SCM): Yard Management, Cross-Docking, and value-added
services (VAS). These features were delivered this year as part
of SAP R/3 Enterprise SCM Extension 2.0.
Figure 1 shows an overview of how these new functionalities
within WM are embedded into the big SCM picture. WM is one of the
most-used functionalities in SCM, supporting all activities from
inbound processing through internal task optimization, replenishment,
physical inventory, and outbound activities such as picking, packing,
loading, and shipping. People inside the warehouse are supported
with real-time, mobile data-entry functions directly connected to
the system. WM also tightly interacts with planning schedules, demand,
and transportation plans, availability checks, and supply network
planning, thus ensuring that fulfillment is done on time, on schedule,
and with the required quality.
How the new WM functionalities fit into the SCM landscape
Would you like to see this full item?