SAP SCM Extended Warehouse Management (EWM): A Detailed Overview of Processes and

Functionality : Table of Contents by Varun Uppuleti

1. EWM in SCM
1.1. Introduction
1.1.1. Warehouse Master Data
1.1.2. Warehouse Organization Structure
1.1.3. Interface to ERP
1.2. Integration of EWM
1.2.1. Integration with ERP
1.2.2. Integration with CRM
1.2.3. Integration with APO
1.2.4. Integration with GTS
1.2.5. Integration with EH&S
1.2.6. Integration with Other Systems
1.3. Types of Documents in EWM
1.3.1. Warehouse Documents
1.3.2. Types of Delivery Processing
1.3.3. Direct Outbound Delivery Order
1.3.4. Expected Goods Receipt
1.4. Features of EWM
1.4.1. Slotting
1.4.2. Deconsolidation
1.4.3. Storage Control
1.4.4. Wave Management
1.4.5. Rearrangement
1.4.6. Integrration of Production Supply of EWM into Production Planning with ERP
1.5. Configuration
1.5.1. Condition Technique
1.5.2. Post Processing Framework

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 1.5.3. Warehouse Process Type
1.5.4. Wizard
1.6. EWM Inbound Process
1.7. EWM Outbound Process
1.8. Yard Management
1.8.1. Vehicles and Transportation Units
1.8.2. Yard Structure
1.8.3. Yard Movements
1.9. Resource Management
1.9.1. Resource Type
1.9.2. Assignment of Warehouse Order to Resource
1.9.3. RF Functionality
1.10. Value Added Services
1.10.1. VAS Order
1.10.2. Goods Receipt and Goods Issue with VAS Order
1.10.3. Warehouse Internal Processes with VAS Order
1.11. Cross Docking
1.11.1. Transportation Cross Docking
1.11.2. Push Deployment and Pick from Goods Receipt
1.12. Monitoring
1.12.1. Warehouse Monitor
1.12.2. Warehouse Cockpit
1.12.3. Monitoring with CCMS
1.13. Additional Features
1.13.1. Physical Inventory
1.13.2. Quality Managmeent
1.13.3. RFID
1.13.4. Catch-Weight
1.13.5. Labor Management

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SCM Extended Warehouse management has extensive and flexible support for
automatic processing of goods movements and warehouse processes. SCM
EWM is best suitable for warehouses that have high volume of operations with
complex functionality.

1 SAP SCM Extended Warehouse Management

(EWM): A Detailed Overview of Processes and
Functionality
Extended Warehouse Management (EWM) maps an entire warehouse in the
system down to storage bin level and is integrated with SAP ERP system.
Business process execution in the ERP system creates goods movements in the
warehouse, and the organization and control of these goods movements is done
by the EWM system. The EWM system supports planned and efficient
processing of all logistics operations in a warehouse.

1.1. Introduction
In the ERP system, materials are created with various views. This material
master data can be downloaded in to the SCM system using APO Core
Interface (CIF). Let’s look at some important master data configuration.

1.1.1. Warehouse Master Data

Materials in EWM system are called products and can have both warehouse
dependent and independent (global) data. The following global data is
transferred from ERP system to the SCM system: Handling unit types;
warehouse product group; warehouse storage control, warehouse handling
indicator, serial number profiles, and quality inspection groups. Figure 1.1
shows the global warehouse data for a product.
The views of the material that are seen in the picture contain APO specific
data. Once a product is created in SCM, it can be extended to include
warehouse dependent information. This can be done by the transaction
/SCWM/MAT1. A warehouse and business partner must be assigned to the
product during this process. Figure 1.2 shows warehouse dependent views.
Some of the fields’ information is selected from the possible entries, defined in
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the configuration of EWM. Transactional data like warehouse stock, deliveries,
stock transport orders, etc is also sent to SCM.

Figure 1.1: Global (Warehouse Independent) Product Data

Figure 1.2: Warehouse Dependent Product Data

Note
Great care should be taken in creating the CIF integration models that send
Master data and Transactional data between ERP and EWM. User exits for CIF
(CIFMAT) can be used to send warehouse specific data from ERP to EWM.

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1.1.2. Warehouse Organizational structure
Warehouses of EWM and ERP systems have the same structure like storage
type, storage bins, and storage sections. EWM has additional features like
activity areas, work centers, etc. The storage types in EWM have numerous
additional features which be shown next.
Warehouse Number
The organizational and physical attributes of a company’s warehouse complex
are grouped together under one warehouse number in EWM. Warehouse
creation can be accessed from IMG menu path: EXTENDED WAREHOUSE
MANAGEMENT•MASTER DATA•DEFINE WAREHOUSE NUMBER. A
Warehouse number is assigned to a supply chain unit of type warehouse. A
supply chain unit consists of time zone, business partner and address
information, has to be created (using /SCMB/SCUMAIN) and then a
warehouse has to be assigned to it. The assignment of warehouse to a supply
chain unit can be accessed from the IMG menu path EXTENDED
WAREHOUSE MANAGEMENT•MASTER DATA•ASSIGN WAREHOUSE
TO SUPPLY CHAIN UNIT. Figure 1.3 shows the above two configurations.

Figure 1.3: Warehouse Creation and Assignment to a Supply Chain Unit

A warehouse should also be assigned to a business partner. For customers and

vendors in ERP, you can create Business Partners in SCM during the CIF
model activation (in transaction CFM2). A business partner can also be created
manually in SCM using the transaction BP.
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Note
Although, Service parts planning industry is the first to fully utilize the
functionality of SCM EWM, EWM is designed to work for multiple industries.
For utilizing some of the functionality in EWM, you will find that there are pre-
requisites referencing to Service Parts Management configuration.
Storage Type
A Storage type is a storage space that you define for a warehouse. This
configuration can be accessed from the IMG menu: EXTENDED
WAREHOUSE MANAGEMENT•MASTER DATA•DEFINE STORAGE
TYPE. Figure 1.4 shows a storage type.

Figure 1.4: Storage Type

Notice that there are predefined storage type roles in EWM. For example, yards
use only storage types with role G.
Storage Section
A storage section is part of a storage type that groups’ together storage bins
with common attributes. This configuration can be accessed from the IMG

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menu path: EXTENDED WAREHOUSE MANAGEMENT•MASTER
DATA•DEFINE STORAGE SECTION. Figure 1.5 shows storage sections

Figure 1.5: Storage Section

Storage Bin Types-Storage Bin Access Types-Storage Bin Identifiers

Storage bins can be grouped together into storage bin types, according to their
physical types. During slotting, the system determines the best storage type for
a material. Storage access type is a qualification type for a resource. It can be
assigned to storage bins and resources. The storage access type limits the
number of resources that can access a bin. Storage bin identifiers are defined to
uniquely identify storage bins. Storage bin identifiers are also assigned to
activity areas. They are also used in the definition of the storage bin structure.
The configuration for these can be accessed from the SAP IMG menu path:
EXTENDED WAREHOUSE MANAGEMENT•MASTER DATA•STORAGE
BINS. Figure 1.6 shows the configuration.
Storage Bin Structure
Storage bin structure definition is a template, for creating storage bins for a
storage type. The concept of TRM co-ordinates is predefined in the structure
definition. Bin access types, bin types can also be assigned to the bin structure.
This configuration is accessed from the IMG menu path: EXTENDED
WAREHOUSE MANAGEMENT•MASTER DATA•STORAGE
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BINS•DEFINE STORAGE BIN STRUCTURE. Figure 1.7 shows the
configuration. After the storage bin structure definition, storage bins can be
generated by using the Transaction /SCWM/LS10.

Figure 1.6: Storage Bin Types, Access Types and Identifiers

Figure 1.7: Storage Bin Structure

Activity Area
Activity areas are group of storage bins generated for storage types. Each
activity area has different activity types. For example an activity area WKCT
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can have only activities of type Packing/Unpacking, where as another activity
area STRG can have only activities of type Loading/Unloading. This
configuration can be accessed from IMG menu path: EXTENDED
WAREHOUSE MANAGEMENT•MASTER DATA •ACTIVITY
AREAS•ASSIGN STORAGE BINS TO ACTIVITY AREA. Figure 1.8 shows
a sample activity area. Once a set of storage bins are attached to an activity
area, they have to be sorted for the activity purposes. A sort sequence is created
for each activity type of an activity area.

Figure 1.8: Activity Area

Work Center
Work center is a physical unit in a warehouse where activities like packing,
deconsolidation, kitting, etc are performed. A work center has to be assigned to
a storage type, with one of the roles E, B or C. A work center layout has to be
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created and has to be assigned to a work center. This configuration can be
accessed from IMG menu path: EXTENDED WAREHOUSE
MANAGEMENT•MASTER DATA•WORK CENTER•SPECIFY WORK
CENTER LAYOUT. Figure 1.9 shows the configuration

Figure 1.9: Work Center Layout

Note
The configuration that is shown till now is only a small part of EWM
configuration. Due to limitations, the whole configuration cannot be shown in
this presentation. Refer to EWM configuration material for more details.

1.1.3. Interface to ERP

When implementing EWM, the SCM system must be connected to the ERP
system. Most of the data processing is performed in the ERP system, and the
physical goods movements are executed in the EWM system. Warehouses
should be created and have to be mutually assigned to each other in both the
systems. This assignment is done in the ERP system from IMG menu path:
INTEGRATION WITH OTHER MYSAP.COM COMPONENTS•ASSIGN
WAREHOUSE NUMBER TO WAREHOUSE NUMBER OF
DECENTRALIZED SCM SYSTEM. In the SCM system, this can be accessed
from IMG menu path: EXTENDED WAREHOUSE MANAGEMENT•
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INTERFACES • ERP INTEGRATION • GENERAL SETTINGS • MAP
WAREHOUSE NUMBERS FROM ERP SYSTEM TO EWM. Figure 1.10
shows these configurations.
Next session discusses about the integration of EWM with other systems.

Figure 1.10: Interface to ERP

1.2. Integration of EWM

EWM functionality has many integration points to other functional systems like
ERP, CRM, APO, Global Trade Systems (GTS), EH&S. This section describes
the integration points and how the information flow takes place between the
systems

1.2.1. Integration with ERP

Document types, item types have to be mapped between the two systems.
Master data, transactional data has to be downloaded using CIF models.

Packaging specifications, batch data can also be mapped from the ERP
system to the SCM system. VAS Orders can be created in ERP and sent to
SCM. Kitting information, Serial number ranges can be downloaded into
the SCM system.

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Inbound/Outbound deliveries, Stock transport orders that are created in the
ERP system are used as reference in SCM system to create EWM related
Inbound/Outbound deliveries.

Labor Management in SCM system is integrated with ERP HR system

As of EWM 7.0, EWM can be used in connection with an ERP system to
store and stage products used for production by transporting them to a
Production supply area (PSA).

1.2.2. Integration with CRM

SCM is integrated with CRM. The following shows the integration points.

Before posting a goods issue, an invoice can be created in the SCM system
with a invoice request to CRM Billing

When a sales order is created in CRM, this information is sent to ERP and
then ERP creates an outbound delivery which is in turn used in EWM to
create an outbound delivery.

CRM sends return delivery information to EWM where the follow up
activities are performed.

Route determination can be executed in CRM and this information can be
sent to EWM.

Pick denial in EWM is sent to CRM via ERP system

Sales order from CRM forms the basis for Transportation Cross Docking
(TCD) in the EWM system.

1.2.3. Integration with APO

APO calculates the priority points for the inbound deliveries and sends this
information to EWM via ERP. EWM uses this information to create an
optimal unloading sequence of the vehicles.

Availability check can be performed in the APO for various transactions in
the EWM system

Slotting in the EWM system takes demand data of a product from APO
system and uses this to calculate the most suitable storage type.

ATP check for Kit-to-Order is performed in APO
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Packaging specifications of EWM system can be sent to other systems
through APO CIF.

APO system defines whether an Inbound Delivery is relevant to Push
Deployment (PD)/ Pick from Goods Receipt (PFGR).

Means of transport are created in APO and used in EWM.

1.2.4. Integration with Global Trade Service (GTS)

Processing of Direct Outbound Delivery Orders is linked to GTS

Delivery processing in EWM is integrated with GTS. With this, compliance
checks and customs checks can be performed for a delivery

GTS geography data is specified in route created in EWM

A call is made to GTS during Transportation Cross Docking

Yard Management in EWM is integrated with GTS

1.2.5. Integration with EH&S

When a delivery is printed in EWM, a call is made to EH&S which sends
information about possible dangerous goods in the delivery.

Dangerous goods check is performed in EH&S during routing
determination in EWM

1.2.6. Integration with other systems

EWM system can be integrated to other non-SAP systems

Material flow systems (MFS) can be integrated to the EWM system.

1.3. Types of Documents in EWM

The most important document of ERP Warehouse Management is transfer
order. It is heavily integrated with other ERP modules, and most of work in a
warehouse is represented by a transfer order. Let’s look at some of the most
important documents available in EWM.

1.3.1. Warehouse Documents

EWM has its own warehouse documents. They are Warehouse request,
warehouse task and warehouse order. Warehouse request is a document that

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enables the processing of warehouse activities like picking, putaway, posting
change, stock transfer and scrapping. The following types of warehouse
requests exist in EWM: Inbound Delivery, Outbound delivery order, posting
change, internal stock transfer. Warehouse requests are created manually or
automatically.
Two types of warehouse tasks exist in EWM: Product Warehouse task (PWT)
and Handling Unit Warehouse Task (HUWT).Warehouse Tasks are either
created with reference to a warehouse request or without a reference to a
document. By default, warehouse tasks are created manually/automatically
from releasing waves. Warehouse tasks can also be created by Post Processing
Framework (PPF). You can identify the type of the warehouse task from the
warehouse process type in the warehouse task.
EWM groups number of deliveries as wave items into a single wave. When the
wave is released, EWM creates warehouse tasks which are in turn grouped in to
warehouse orders according to the warehouse order creation rules.

1.3.2. Types of Delivery processing

Four types of Warehouse processes exist in EWM. They are inbound,
outbound, internal stock transfer and posting change. Each process is
represented with multiple documents:

Inbound Process: Inbound delivery notification, inbound delivery. Inbound
delivery notification is created automatically when EWM receives delivery
information from ERP. Inbound delivery is created after activating the
inbound delivery notification.

Outbound Process: Outbound delivery request, outbound delivery order and
outbound delivery. Outbound delivery request is created automatically
when EWM receives delivery information from ERP. Outbound delivery
order is created after activating the outbound delivery request. One or
several outbound deliveries can be created from outbound delivery order.

Posting change Process: Posting change request, posting change. The
delivery processing receives a message from a reference document and a
posting change request is created. Posting change is created automatically
from posting change request.

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Internal stock transfer: Internal stock transfer document. Rearrangement,
replenishment and adhoc movements come under this category.
Warehouse requests can be created for each of the above documents. Figure
1.11 shows the document Internal stock transfer.

Note
Almost all the documents in EWM have the same structure as shown in figure
1.11. Each document has a header and item detail section with individual
methods. We can create our own document types in EWM for various
warehouse processes.

1.3.3. Direct Outbound Delivery Order

For some warehouse processes, you might have to generate documents in EWM
to record usage of products. Direct outbound delivery orders fulfill this
requirement, and are generated locally in EWM. They don’t need a reference
document from ERP. Direct outbound delivery orders are mainly used for direct
sales, scrapping, kit to stock and immediate delivery purposes. Once a
document of this type is created, EWM sends this information to ERP system.
The availability check for the products can be carried out in APO or ERP or
EWM.

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Figure 1.11: Internal stock transfer

1.3.4. Expected Goods Receipt

For receiving goods using production order or purchase order, you may not
want to use ASN. Instead, you can use expected goods receipt to record the
receiving process. Expected Goods Receipt is a temporary document generated
in the EWM system from which you can create an inbound delivery. You can
then post goods receipt for the inbound delivery in EWM which sends this
information to the ERP system. You can also configure the system in such a
way that ERP system generates expected goods receipts and then the EWM
system can creates identical expected goods receipts locally.

1.4. Features of EWM

Extended Warehouse Management has greatly evolved in the past 4 years.
There are mainly 3 versions of SCM system: SCM 5.0, SCM 5.1 and SCM 7.
Manufacturing Flow System (MFS) is used to map automated storage retrieval
systems in EWM. Post Processing Framework (PPF) helps in generating
condition dependent actions. For example, conditions can be set so that if an
inbound delivery is created and saved, a vehicle can be created in the
background. PPF is discussed further in the chapter.

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Table shows the available features in different SCM systems. An X indicates
that corresponding functionality is unavailable in a system.
Evolution of EWM SCM 5.0 EWM EWM EWM
5.10(SCM 2007) 7.0(SCM 7)
Batch Management New Enhanced Available
Cross Docking New Available Enhanced
MFS(Manufacturing New Enhanced Enhanced
Flow System)
PPF(Post Processing New Available Enhanced
Framework)
Printer Determination New Enhanced Available
Serial Numbers New Enhanced Available
Catch weight X New Available
Direct outbound delivery X New Available
order
Expected goods receipt X New Available
Kit to stock X New Available
Labor Management X New Enhanced
RFID X New Available
Route determination in X New Available
Delivery
Travel distance X New Available
calculation
EWM monitoring with X X New
CCMS
Graphical warehouse X X New
layout
Integration with ERP PP X X New
Table 1.1: EWM functionality in different SCM systems.

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1.4.1. Slotting
Slotting is a process relevant for put-away, which is run to determine a storage
concept for a product, During Slotting, the system determines putaway control
indicator, maximum quantity in a storage type, storage section indicator and
storage bin type, and assigns these values to the product data. Putaway control
indicator, storage section indicator and storage bin type are calculated using the
condition technique. Slotting provides the basis for Rearrangement.
For calculating the maximum quantity in a storage type, slotting interfaces with
APO to read relevant requirement data of a product. HU types and packaging
specification details also influence slotting procedure. Refer figure 1.2 to look
at the slotting parameters. Slotting run can be simulated and can also be used to
determine a fixed bin for a product.

1.4.2. Deconsolidation
In warehouses, sometimes packages arrive on pallets with different products.
There is a necessity to unpack the pallets and putaway different products in
different activity (storage) areas. In EWM, a work center can be used as a
deconsolidation station where unpacking in performed.
Depending on the HU type, different deconsolidation stations can be proposed
by the system. Once the HU arrives at the deconsolidation station, it is
unpacked and warehouse tasks are created for different products to move them
to their destination storage types. You can also set limits for number of
warehouse tasks that can be created at a deconsolidation station.

1.4.3. Storage control

Storage control is used to define the complex steps of your putaway and stock
removal process. Process-oriented storage control is defined according to the
warehouse process and Layout-oriented storage control definition is based on
the warehouse layout. You can also use a combination of both to describe your
putaway/stock removal process. Figure 1.12 shows both process oriented
storage control and layout oriented storage control
A storage process GDRE (goods receive) is defined for warehouse VA01 with a
sequence of steps that have to be executed in order. The steps are 70-Unload
80-quality inspection during putaway, 60-Deconsolidate and 40-Putaway. For

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each process step you can define the source and destination storage types to
which products have to be moved.

Note
Separate Warehouse process types can be created to represent putaway and
removal process and can be assigned to storage control.

Figure 1.12: Process oriented and Layout oriented storage control

You can use layout oriented storage control for your warehouse stock
movements that move through intermediate storage bins. Notice in figure 1.12
that for a warehouse process type REMO (Removal), if material has to moved
from storage type HIGH to storage type YARD, it has to go through an internal
storage type WKCT. Figure 1.13 shows the storage control process graphically.

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Figure 1.13: Graphical representation of storage control

1.4.4. Wave Management

Wave Management helps in combining items from warehouse requests for
outbound deliveries into waves. A wave template serves as infrastructure for
automatic wave generation and is determined using condition technique.
Capacity profiles are defined and assigned to wave templates.
BAdI /SCWM/IF_EX_WAVE_PLAN is available to influence the automatic
assignment of warehouse request items to waves. Delivery items of the same
delivery can be assigned to different waves and waves can be generated either
automatically or manually.

1.4.5. Rearrangement
Rearrangement is used to optimize the arrangement of the warehouse products
by moving stock to optimal storage bins. The system compares the current
storage type, storage section and storage bin type with the optimal parameters
from slotting. If the current storage parameters are not optimal then system
proposes an optimal storage bin using the slotting parameters.

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1.4.6. Integration of Production Supply of EWM into Production planning in ERP
Production Supply areas group work centers, and exist directly in the
production area. Materials are staged to these work center/production bins and
are directly used in production. If work centers run out of material stock,
replenishment is performed from storage to work center bins for re-stocking.
As of SCM 7.0, EWM can be used to store and stage products used for
production, by transporting them to a production supply area (PSA). The
products have to be picked in the warehouse and moved to a PSA. After
moving the stock to a PSA, the stock can be consumed on the basis of a
production order. Production supply areas are created in warehouse
management and are assigned to work centers, materials, BOM (Bill of
Materials).
There are several ways to provide products that are required for a
manufacturing order. They are: Pick Parts/release order parts and crate
parts/kanban. Depending on the order type, materials can be manually/timely
moved to a PSA. Staging can also be done for KANBAN, Repetitive
Manufacturing orders in Production Planning and can be managed with stock
transfer order in EWM.

1.5. Configuration
This session looks at some of the most important configuration in EWM. The
configuration specified here is extensively used as templates for different
applications in EWM.

1.5.1. Condition Technique

Condition technique is a determination process for defining output values based
on pre-defined input values. The input values are created as condition records.
The condition technique in EWM is similar to ERP condition technique.
Steps involved with Condition Technique:

Create field catalog.

Define condition tables

Define Access Sequences

Define Condition Types

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Define Determination Procedure

Assign Determination Procedure

Figure 1.14 shows the condition technique process for Printing Warehouse
Order. The condition tables are created from the field catalog. Access
sequences are defined, that specify the order in which condition tables are
searched for condition records. Condition types are defined, and contain access
sequence. Determination procedures are defined with condition types and can
be assigned to document types, packaging material types or warehouse process
types. Finally, Condition records are created from the EWM easy access menu.

Different condition records can be specified for the condition types, based on
different fields of the condition tables. For example, if the storage process is
receiving, select a printer at the door, if the storage process is packing, select
the printer at the work center, and so on.

Note
Standard SAP condition technique configuration is available for Wave template
determination, physical inventory document print, HU print, Printing
Warehouse Order and Packaging Specification Determination. Custom
condition tables, access sequences, condition types should be created for
slotting parameter determination.

Figure 1.14: Condition Technique in Printing Warehouse Order

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1.5.2. Post Processing Framework (PPF)
Post Processing Framework is a SAP Basis technology, used in application
processing for scheduling and processing actions, with reference to certain
documents. In simple words, the system creates follow-up actions after certain
conditions are met for warehouse documents. PPF describes what (action
definition) should be done, why or under what conditions (schedule conditions)
an action should be executed and when (start condition) an action should be
executed. PPF configuration can be accessed from the IMG menu path: SAP
SCM • INVENTORY COLLABORATION HUB • SUPPLIER
COLLABORATION • ACTIONS • DEFINE ACTION PROFILES AND
DEFINITIONS.
Figure 1.15 shows action profile for Freight Documents. When a freight
document is printed, a PPF action with action definition Freight Document with
Smart Form Determination is created. This created action helps in printing the
freight document using a smart form. The figure also shows other actions that
can be created for freight documents. Figure 1.11 shows PPF action “Create
Warehouse task for stock transfer” created for an internal stock transfer.

Note
PPF is extensively used in delivery processing, shipping and receiving,
Transportation Management, Physical inventory, Printing VAS/HU/Warehouse
Orders. Custom PPF actions can also be created for certain documents.

1.5.3. Warehouse Process Type

Warehouse processes like goods receipt, goods issue, posting change,
repacking, re-arrangement, and so on can be representing using different
warehouse process types. Figure 1.16 shows a sample warehouse process type.
A warehouse process type can be of one the following warehouse process
category: Putaway, stock removal, internal stock movement and posting
change.
For each WH process type, you can assign source and destination storage
type/storage bins. Storage control, activities, warehouse order creation rules can
also be assigned that help in creation of warehouse orders. Warehouse Process
Types are extensively used in EWM. Storage type searches, 2-step picking are

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influenced by warehouse process types. Pick denial, automatic wave generation
can be defined at WH process type level.

Figure 1.15: PPF action profile for freight documents

1.5.4. Wizard
Resources elements in ERP TRM can be created using a wizard. Similarly,
different wizards exist in EWM. Wizards can be used to create document types
and item types for Inbound/Outbound/Posting Change/Stock Transfer
documents. PPF Actions for deliveries can also be created using a wizard.

Figure 1.16: Warehouse Process Type

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1.6. EWM Inbound Process
This section discusses about the steps involved the Inbound Process of a
delivery. In the Inbound process, you can manage orders placed with partners,
and schedule pickups and the receipt of deliveries. You can create deliveries in
reference to purchase orders and advance shipping notifications and stream line
the goods receipt process. Let’s look at a typical inbound process in EWM.

The process begins when SAP ERP receives an advanced shipping
notification from an external system (for example, SAP CRM) for a
planned inbound delivery.

The ERP system uses this advanced shipping notification to create an
inbound delivery, and distributes it to EWM.

EWM uses this data to create an inbound delivery.

A TU (transport unit) is created in EWM and assigned to the delivery and
checked into the yard. Doing so updates the delivery status to In Yard.

The TU is moved to the unloading dock and unloaded. The corresponding
delivery items are assumed to be packed in a HU and are moved to the
receiving area.

Goods Receipt (GR) for the EWM Inbound Delivery is performed
automatically through PPF actions. Before GR posting, you can also create
quality inspection documents for the delivery and execute counting.

Depending on the warehouse process type assigned to the inbound delivery,
the product is either moved to the deconsolidation area or directly putaway
into storage.

If the delivery has to be processed through layout oriented storage control,
according to the configuration, the product is moved to a deconsolidation
area for the HU to be unpacked.

After Unpacking, different warehouse putaway tasks are created for
different products/delivery-items to move them to warehouse storage. The
system determines the appropriate storage types/sections/bins according to
determination rules defined in configuration.

Confirming the putaway tasks completes the inbound process. The EWM
system informs ERP system about the confirmation through qRFC
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 communication and the corresponding ERP delivery status is updated to
Complete.

Goods receipt optimization; kit to stock, reverse kitting, and confirmation
correction are some additional features that can be utilized in the inbound
process.

1.7. EWM Outbound Process

This section explains the outbound process of a delivery in EWM. EWM
supports picking, replenishment, packing and loading in outbound process.
Sales orders for the same ship-to party can be combined and large orders can be
split to optimize delivery processing. Cross Docking is available for direct
transfer of goods between inbound and outbound processes. Let’s look at a
typical outbound process in EWM.

The ERP system receives orders from external system (like SAP CRM) and
creates outbound deliveries and distributes this to EWM.

EWM uses this data to create outbound delivery requests and outbound
delivery orders.

These warehouse requests are assigned to a wave on item level and the
wave is released. At release, warehouse tasks are created and stock
determination rules can be used to determine the storage types and bins
from which the products have to be picked.

All tasks pass through warehouse order creation. Warehouse orders are
created according to the Warehouse order creation rules defined in
configuration. A warehouse order can contain items from multiple
deliveries.

If the picking process is influenced by process oriented storage control,
warehouse orders are picked and may be moved to a packing area. Here the
products are packed and labeled.

After packing, these products are moved to a shipping area. An empty TU
is created and checked in to the yard and deliveries can be assigned to this
TU. The TU is moved to shipping area and the products are loaded on to
the vehicle.

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Goods Issue is performed to the outbound delivery orders and the vehicle is
checked out. EWM informs this to ERP system and the corresponding
outbound delivery statuses are updated.

Kit to Order, replenishment, scrapping are some additional features that can
be utilized in the outbound process. Quantity differences during picking can
be handled, and scrapping can be performed for damaged products.

1.8. Yard Management

In this section, Yard Management functionality in EWM and its features are
discussed briefly. YM in EWM is part of Shipping and Receiving functionality
where you can manage trucks and trailers in your yard. You can monitor the
yard using the warehouse monitor. Other features of Shipping and Receiving
include loading/unloading, staging area and door determination, transportation
management and route determination.

1.8.1. Vehicles and Transportation Units

Similar to Yard Management in ERP, vehicles in EWM are managed using
Handling Unit Management. A Transportation Unit (TU) is the smallest
loadable unit of a vehicle and a vehicle can consist of multiple TUs. Materials
are packed into HUs and the HUs’ are assigned to TUs. Different types of
Means of Transport can be defined in APO and while creating vehicles, you can
use these means of transport as a vehicle types.

1.8.2. Yard Structure

A Yard is defined as storage type with role yard, and can be unique to one
warehouse or used for multiple warehouses. You can also define multiple yards
for one warehouse. Figure 1.17 shows a Yard Structure. Checkpoints, parking
spaces are created as storage sections. A checkpoint storage section contains
only one storage bin where as parking space storage sections contain multiple
storage bins, and each storage bin represents an individual parking space for a
vehicle.

1.8.3. Yard Movements

Vehicles are checked into and out of the yard using checkpoints. From a
checkpoint, a vehicle might be moved to a parking space or a door for
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immediate loading or unloading. You perform a goods receipt for the TU and
then you execute yard movements for the TU. Each time you want to move a
TU in a yard, you have to create warehouse tasks manually. Yard movements
can be performed using RF or desktop transactions.

Figure 1.17: Yard Structure in EWM

1.9. Resource Management

In EWM, warehouse management and TRM are integrated and you can
automatically identify the right people and equipment to execute the right task
at the right time.

1.9.1. Resource Type

Resource types are configured in the system and have multiple parameters such
as: horizontal velocity, qualifications, preferences, bins access types, and so on.
Resources are created using resource types and can log on to a RF on non-RF
environment. Once a resource is logged on to the system, it can receive work
for execution, and can be tracked and displayed in the warehouse monitor.

1.9.2. Assignment of Warehouse Order to Resource

You can define different queues for picking, putaway and for internal
warehouse processes and assign them to various activity areas. While defining
resources you can assign these queues for efficient work distribution.
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Warehouse orders can also be assigned to queues automatically; the system
searches for queues defined for the activity areas where the warehouse orders
are created.
Warehouse orders can be assigned to resources manually from the warehouse
monitor, both manually and automatically in an RF environment. In the case of
automatic warehouse order assignment to a resource, the warehouse order must
belong to a queue to which the resource is assigned, and which the resource is
authorized to work in.

1.9.3. RF Functionality
Figure 1.18 shows the standard EWM RF functionality. Once a resource log-ins
into the system, it can perform various activities like picking, unloading,
putaway, loading, deconsolidation, and so on.

Figure 1.18: EWM RF Functionality

Using the Enhancement/Split screen wizards, you can add/remove the fields
that are displayed in a RF transaction.

1.10. Value Added Services

Value Added Services (VAS) are operations performed on materials which
enhance their value, worth, functionality or usefulness, and can be executed in
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the warehouse work centers using VAS orders. Typical VAS activities are
assembling products, labeling, packing or kitting.

1.10.1. VAS Order

A VAS order is an instruction to perform a VAS on one or more materials or
items, based on a reference (inbound/outbound) document. VAS order consists
of the following levels: Order header, VAS activities, Items and auxiliary
products.
A VAS order instructs a warehouse worker about what needs to be performed
with which products, and establishes a relationship between a reference
documents and VAS pack specification. Auxiliary products are used for
performing a VAS activity and examples include paint, pallets, lids, and
packaging materials.

1.10.2. Goods Receipt and Goods Issue with VAS Order

A VAS order links a delivery item and a packaging specification containing the
details of the service that is to be executed at a work center. Figure 1.19 shows
VAS execution during goods receipt and goods issue process.

Figure 1.19: Goods Receipt and Goods Issue with VAS

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VAS can be configured as an interim step during GR or GI process using
process oriented storage control. Handling Unit Warehouse tasks can be created
automatically to move products to work centers for execution of VAS. You can
also use layout oriented storage control where Product Warehouse Tasks are
created to move products.
VAS orders can then be created for both inbound and outbound documents. In
goods issue process, you can also use the VAS order to assemble kits at the
work centers.

1.10.3. Warehouse Internal Processes with VAS Order

VAS can also be executed for products without posting any goods movements.
This enables you to perform certain processes at short notice, such as new
packing, or painting a product, more quickly and flexibly.
You have to manually create VAS orders for which the system generates one or
more warehouse tasks with destination bins as work centers. Then a resource
withdraws the product from the storage and moves it to the work center where
VAS activities are executed. Finally, the resource moves the product back to
storage.

1.11. Cross Docking

Cross Docking in SCM is similar to cross docking in ERP that we have seen in
chapter 6. Three types of Cross Docking exist in SCM EWM: Transportation
Cross Docking and Push Deployment/Pick from Goods Receipt.

1.11.1. Transportation Cross Docking

Transportation Cross Docking (TCD) is a form of planned cross docking that
allows you to optimize transportation costs. Transportation cross docking
relevance is defined BEFORE the arrival of the stock. A stock transport order
or a sales order from CRM form the basis for TCD.
TCD is integrated with service parts management of ERP. If the ERP system
finds relevance for TCD, it generates a delivery pair and sends this information
to EWM. Then EWM system specifies the cross docking destination storage
bins and updates the warehouse tasks of inbound and outbound deliveries.
Nested HUs with process oriented storage control is also supported for TCD.

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1.11.2. Push Deployment and Pick from Goods Receipt
Push Deployment (PD) and Pick from Goods Receipt (PFGR) are opportunistic
or unplanned cross-dock activities. For opportunistic cross docking, you work
on inbound deliveries during the goods receipt process.
The PD/PFGR relevance of an inbound delivery is defined by the APO system.
In PFGR, the APO system determines whether stock is to be moved directly
after receipt to a customer or to a different warehouse. The decision is based on
back orders held in CRM system. For PD, APO decides that goods are to be
moved from one location to another; the decision is triggered by goods receipt
and is based on a sales forecast. As of SCM 7.0, opportunistic cross docking
can be triggered by the EWM system.

1.12. Monitoring
In this section different EWM Monitors and EWM warehouse activity execute
is discussed.

1.12.1. Warehouse Monitor

The warehouse monitor is the central tool that provides up-to-date information
of a warehouse. The monitor also consists of methods, alert monitoring
capabilities to execute various warehouse activities. Figure 1.20 shows SCM
warehouse monitor.
SCM warehouse monitor consists of various objects like: inbound documents,
outbound documents, internal warehouse documents, physical inventory
documents, resources, stock and bin, and so on. For each object, the system
consists of various methods that can be executed.

1.12.2. Warehouse Cockpit

Using warehouse cockpit, you can display your warehouse key figures
graphically and can evaluate or monitor them. You must use Easy Graphics
Framework to define your own objects and can display them in the cockpit.
Different chart types exist for different warehouse objects. Figure 1.20 shows
warehouse cockpit. Notice in the figure that bars, stacks, speedometer and table
chart types are used to display physical inventory documents.

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Figure 1.20: Warehouse Monitor and Warehouse Cockpit

1.12.3. Monitoring with CCMS

Computer Center Management Systems (CCMS) is a framework available in
SAP Netweaver into which monitoring and administration functions can be
added. “SAP SCM Basis Monitor Templates” monitor set contains “CIF Master
Data Queue monitor” where you can monitor Inbound and Outbound queues
for the SAP Core Interface (CIF).
EWM Monitor can also be accessed using the SCM Basis monitor where you
can monitor inbound and outbound queues for external and internal message
processing.

1.13. Additional Features

This section discusses about some of the features available in SCM EWM.

1.13.1. Physical Inventory

You can use Physical Inventory to regularly check the physical stock in your
warehouse and check these values with the EWM data. If there are stock

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differences, then using the difference monitor, you can post the differences and
update the stock data in your warehouse.
You can perform Physical Inventory on storage bins and products. Three
options exist for executing Physical Inventory: Periodic, Continuous and Cycle
Counting. Physical Inventory is supported by the RF functionality.

1.13.2. Quality Management

SCM quality management uses the quality inspection engine (QIE) to map
inspection processes. You can map your warehouse process to include quality
functionality and inspect deliveries and count the products in deliveries.
Triggering of the quality related execution can be performed manually or
automatically.
When you receive an inbound document, you can trigger the QM functionality
and inspect the sample. Depending upon the decision of the inspection, you can
trigger follow up activities like scrapping, putaway, and so on. This data is then
sent to the ERP system for further processing.
You have to define QM specific master data in EWM that includes quality
inspection groups, quarantine periods, sample-drawing procedures. Using
inspection object types, you can map the EWM documents to QM documents.
QM related information can be viewed using the warehouse monitor.

1.13.3. RFID
RFID (Radio Frequency Identification) is an identification method that stores
and retrieves data using devices such as RFID tags or transponders. RFID tags
are extensively used in warehouses to provide product tracking and real-time
inventory status automatically. They are also commonly used in toll collection
on highways and in Passports where RFID-readers read the data.
You can integrate SCM EWM with SAP Auto-ID Infrastructure (AII) to utilize
the functionality of RFID. Integration can be done either by using web services
or by establishing RFC connections.
In AII, you can execute the following EWM related processes after scanning
the RF tags: Automatic confirmation of warehouse tasks, loading/unloading,
and automatic packing. By creating new actions and rules in AII, you can also
define custom EWM RFID process execution.

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BAdI’s are available in EWM to print RFID labels, assign RFID tags to
resources to track resources in a warehouse, and so on. You can also optimize
your goods receipt and goods issue process using RFID.

1.13.4. Catch-Weight
Catch Weight management was introduced with SAP Enhancement Package 4
for SAP ERP 6.0. It is used commonly used in Food/chemical industry where
products are managed in parallel unit of measure (Logical/Valuation UoM). For
example, you can sell a box of meat containing 5 pieces, where you manage the
product (meat) as 1 BOX (Logical Unit) and you also weigh the box and
manage the product in KG as Valuation Unit. Each box of meat can be priced
differently depending on the weight of the box.
SCM EWM supports the catch weight to manage your products in independent
units of measure. You can create catch weight profiles and assign them to
products. Catch Weight in EWM is integrated with ERP and can be executed
using RF devices. Catch weight functions are integrated in delivery processing,
physical inventory and quality inspection.

1.13.5. Labor Management

Labor Management (LM) was introduced with SAP SCM 5.1 system and is
used to monitor employee performance. Formulas and conditions are created
for employees that help track their performance during warehouse activity
execution. You can also record employee performance through performance
documents and send them to ERP system.
Using LM, you can record both direct and indirect labor of a warehouse.
Warehouse managers can plan, simulate and measure employee workload and
compare planned and actual times.
Key Performance Indicators (KPIs) can be created for your business model and
alerts can be displayed when KPIs are not met. KPIs can be displayed in a
graphical framework that provides accurate tracking information. EWM system
can be integrated with other SAP HR/External systems. You can send bonus
calculation information to HR systems depending on the user work load. You
can also create authorization profiles to limit users in accessing sensitive
information. LM information can be viewed in the warehouse monitor.

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