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 to changes.

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.

Figure 1
How the new WM functionalities fit into the SCM landscape

Christoph Leßmöllmann

Dr. Christoph Leßmöllmann received his masters degree in mechanical engineering at the University of Karlsruhe in 1986 and a PhD in mechanical engineering from the University of Karlsruhe in 1992. He joined SAP in 1996 as a consultant in logistics applications. From 1999 to March 2003, he was product manager for the Logistics Execution System at SAP AG. Since April 2003, he has been director for Supply Chain Execution in Global Product Marketing at SAP AG, Walldorf.

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