[ Extended Warehouse Management - A 3PL Perspective Max Spilker, Roberto Omiccioli (Westernacher) [ Learning Points Common challenges in a 3PL EWM implementation Best practices to overcome implementation gaps/issues Bill your WH operations to your customers Real Experience. Real Advantage. 2 [ Westernacher History in Warehouse Management 1980 Starting Warehouse Management activities • “Booming period” of automated highbay warehouses in Germany • Individual programming / mainframe systems 1993 Focus on SAP products & technology • R/2 and R/3 projects (FI, CO, PS, MM, SD, PP) • Logistics: Development of WLS®, our own WMS running 100% on ABAP; 1st release in 1994 2000 1st project with SAP LE-WM 4.6C 2004 WLS® running on Netweaver 2005 1st project with LE-TRM 2007 1st SAP-EWM implementation as a Partner of SAP Germany at a leading automotive OEM 2010 1st SAP-EWM go-live in 3PL industry. Birth of Warehouse Billing Engine. Real Experience. Real Advantage. 3 [ Questions that keep 3PLs awake at night 1. How to effortlessly integrate new clients, products, services and client specific processes? 2. How to organize the warehouse in order to achieve required service levels and work efficiently at the same time? 3. How to organize the material and information flows? 4. How to bill the client for the provided services? Real Experience. Real Advantage. 4 [ Some challenges are specific to the 3PL industry Challenge Unexpected goods receipt Description • EWM expects that ASN is available before unloading • 3PLs do not always know what to receive Product number issue • Client vs. own product number • Use client number for external use and own product number for internal processes Building interfaces to customer systems • In order to transfer customer’s master data and transaction data to own systems Onboarding new clients Billing for logistics services Real Experience. Real Advantage. • Requirement for quick IT support for new clients • Creation of organizational objects and master data • Make use of predefined logistics services and corresponding process templates • 3PL need capability to bill clients for provided logistics services 1 [ 3PLs do not always know what to expect… Standard SAP EWM Inbound Process Potential 3PL Inbound Process ASN GR Zone Item Material Qty 10 115566 500 20 133445 200 GR Zone Unloading ? Unloading Counting & Manual creation Qty correct? Inbound Delivery Yes Putaway Real Experience. Real Advantage. No Exception Item Material Qty 10 115566 500 20 133445 200 Inventory [ Some challenges are specific to the 3PL industry Challenge Unexpected goods receipt Description • EWM expects that ASN is available before unloading • 3PLs do not always know what to receive Product number issue • Client vs. own product number • Use client number for external use and own product number for internal processes Building interfaces to customer systems • In order to transfer customer’s master data and transaction data to own systems Onboarding new clients Billing for logistics services Real Experience. Real Advantage. • Requirement for quick IT support for new clients • Creation of organizational objects and master data • Make use of predefined logistics services and corresponding process templates • 3PL need capability to bill clients for provided logistics services [ Integrating multiple clients might lead to an issue with the material numbers Client 1 Number Range: A01 – B99 Client 3 Client 2 C01 – F99 G01 – H59 Material CIF ERP Material EWM 3PL Real Experience. Real Advantage. Client 4 B95 – B99 Recommendation: Assign material number from own number [ Our range. Use clients number for external purposes. ERP ERP Material Master EWM Warehouse Material Master CIF Real Experience. Real Advantage. [ Some challenges are specific to the 3PL industry Challenge Unexpected goods receipt Description • EWM expects that ASN is available before unloading • 3PLs do not always know what to receive Product number issue • Client vs. own product number • Use client number for external use and own product number for internal processes Building interfaces to customer systems • In order to transfer customer’s master data and transaction data to own systems Onboarding new clients Billing for logistics services Real Experience. Real Advantage. • Requirement for quick IT support for new clients • Creation of organizational objects and master data • Make use of predefined logistics services and corresponding process templates • 3PL need capability to bill clients for provided logistics services [ There is no unique solution to the interface challenges Web Portal Client 2 SAP ERP 3Pl IDOC Interface Invoicing Client 1 Communication Platform KA EWM 3Pl M FO Multiple sites / Warehouse numbers Real Experience. Real Advantage. [ Some challenges are specific to the 3PL industry Challenge Unexpected goods receipt Description • EWM expects that ASN is available before unloading • 3PLs do not always know what to receive Product number issue • Client vs. own product number • Use client number for external use and own product number for internal processes Building interfaces to customer systems • In order to transfer customer’s master data and transaction data to own systems Onboarding new clients Billing for logistics services Real Experience. Real Advantage. • Requirement for quick IT support for new clients • Creation of organizational objects and master data • Make use of predefined logistics services and corresponding process templates • 3PL need capability to bill clients for provided logistics services [ The 3PL onboards “ValueCustomer” as a new 3PL client ValueCustomer’s customers 3PL ValueCustomer’s products Client ValueCusto mer Goods Receipt Goods Distribution 3PL’s Services for ValueCustomer • Call Center Services • Order Management • Warehouse Logistics • Billing on behalf of ValueCustomer Real Experience. Real Advantage. [ Steps to be performed to support this business • Plant, storage location, integration into warehouse number 1. Customizing • Or, use vendor consignment stock to seperate from other stock in the warehouse. 2. Interface • Interface to client system for master / transactional data • Material Master • Packaging specifications 3. Master Data • (Customers) • (Prices) 4. Assign process templates • Assign process templates according to sales contract • Client specific labels 5. Programming • Requirements not covered by SAP standard and process templates Real Experience. Real Advantage. and Master data: Organizational elements required to onboard [ Customizing a new client such as ValueCustomer Object SAP Object Best Practice Approach • Plant and Storage Locations • Or vendor consignment stock • Customer and Vendor master data • Follow defined procedures / checklist. Create by copying sample data • ERP Customers • EWM Business Partners • Also possible to use one customer with multiple ship to addresses. • Interface via IDOC from ValueCustomer’s ERP system or via communication platform. • ERP and EWM product master data • Excel upload - LSMW ValueCustomer‘s Packaging Information • Packaging specifications should be created for each product to ensure smooth EWM processes • Excel upload – standard transaction available in EWM. ValueCustomer‘s product prices • SD pricing master data if required for printing or billing on behalf off. • Interface or • Excel upload • Sales contract • Basis for billing engine ValueCustomer ValueCustomer‘s Clients ValueCustomer‘s Products Agreement between Tech Data ValueCustomer Real Experience. Real Advantage. system, ERP and EWM support the integration of multiple 3PL clients [ Both into the same warehouse. ERP Plant 1 (ValueCustomer) SLOC ROD SLOC AFS Plant 2 (Client 2) SLOC ROD SLOC AFS EWM Warehouse Number 00A Warehouse Number 000A Stock A Owner: (ValueCustomer) Real Experience. Real Advantage. Stock A Owner: (Client 2) … … … EWM, stock but also warehouse tasks always contain a reference to the [ Instock owner Example of stock on bin: Example of pick warehouse •task: 1 In a multi client warehouse, stock and all tasks are always separated by owner. Real Experience. Real Advantage. templates: Predefined service offerings / process templates make [ Process onboarding easier… Procurement Management Strategic Purchasing Stock Financing Operational Purchasing Distribution Management Sales (cold calling) Billing Web Portal Customs Import Customs Warehouse Export Warehouse Logistics Goods Receipt Storage Quality Inspection Return Management Production Services Distribution Logistics Order Management Storage Picking Production Warehouse Real Experience. Real Advantage. Packaging material warehouse Value added services Packing Transport Production Supply Quality Inspection Preassembly Packaging Production Transport [ Some challenges are specific to the 3PL industry Challenge Unexpected goods receipt Description • EWM expects that ASN is available before unloading • 3PLs do not always know what to receive Product number issue • Client vs. own product number • Use client number for external use and own product number for internal processes Building interfaces to customer systems • In order to transfer customer’s master data and transaction data to own systems Onboarding new clients Billing for logistics services Real Experience. Real Advantage. • Requirement for quick IT support for new clients • Creation of organizational objects and master data • Make use of predefined logistics services and corresponding process templates • 3PL need capability to bill clients for provided logistics services [ Typical pain points for Logistics Service Providers with warehouse billing Real Experience. Real Advantage. 20 [ Development principles of Warehouse Billing Solution based on SAP EWM technology Real Experience. Real Advantage. 21 [ Warehouse Billing Solution – Architectural Overview EWM – Data extraction, and aggregation ECC – Combination with prices and materials to create invoice EWM with WBS ERP Contracts Daily Data Extraction Aggregation & Analysis Billing Run Material + Price Real Experience. Real Advantage. Debit Request Invoice [ Warehouse Billing Solution – Execution Mechanics Real Experience. Real Advantage. 23 [ Key Learnings Decide which approach to take for mapping customers into your system (vendor consignment vs plant) Create templates/standards to facilitate customer onboarding process Connect customer’s system to your system to streamline operations and increase productivity Have a flexible and scalable billing solution that doesn’t require tedious manual labor at month-end Real Experience. Real Advantage. 24 [ More information Max Spilker ([email protected]) Roberto Omiccioli ([email protected]) Website: http://www.westernacher.com/en/industry/logistics-service-providers Real Experience. Real Advantage. 25 [ ] Thank you for participating. Please remember to complete and return your evaluation form following this session. For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc [ Real Experience. Real Advantage. SESSION CODE: 1113 26
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