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Sap Warehouse Management Essay

1573 words - 7 pages

Introduction
Warehouse management is part of logistic and supply chain management system which is a vast and critical process. With the change of business nature due to globalization the complexity of warehouse management has increased more. As much of the business success of today’s competitive world depends on effective logistic and supply chain management system companies are relying more on integrated computerised system to manage their warehouse function more effective and efficiently. SAP Warehouse Management System is one of those kinds of solution which fulfil all the requirement of today’s business need. The system is flexible and provides automated support to process warehouse ...view middle of the document...

The system render flexibility and efficient automated support which helps to;
∆ Manage complex warehouse structure.
∆ Segmentation of storage areas for managing variety of storage such as high rack, block storage or fixed bin store.
∆ Process all related postings and transactions such as goods receipt, issue and stock transfer.
∆ Monitor stock movement.
∆ Identify stock difference and ensure correctness of the physical stock of the warehouse and the balance of the inventory management system.
∆ Quick flow of real time information with greater accuracy.
SAP’s Warehouse Management Solution
SAP warehouse management solution (WMS) is a flexible automated warehouse management solution. The system efficiently support the warehouse process by defining and managing complex warehouse structure, optimizing material flow using advanced put away & picking techniques and processing goods movement like receipt, issue and transfer of stock quickly and easily. In SAP R/3 system the warehouse management application is fully integrated as a result transactions which are integrated in other SAP components automatically process subsequent tasks in WM and organize or carryout actual physical transfer within warehouse (SAP AG 2011). According to SAPM AG (2001) few of the functions are;
□ Movement of materials and change of materials status, like release of goods from inspection.
□ Stagging of materials to the supply areas of production.
□ Sorting and shipping of goods for sales orders.
Integration of WMS

(Source: SAP AG- Guided to warehouse management)
According to SAP AG (2001) warehouse management system is interfaced with the following systems;
◊ Inventory Management: WM is interfaced with inventory management system as a result actions which begins at inventory management like goods receipts and issue, change of postings etc are subsequently processed in the WM. This reduces duplication of works and expedites the work process.
◊ Sales and Distribution: In order to process delivery documents for both integrated WM application and decentralized WM system, WM is integrated with sales and distribution with shipping module.
◊ Quality Management: Warehouse Management’s interface with Quality management permit administrators in tracking and managing inspection lots stored in warehouse.
◊ Production Planning: WM’s interface with production planning allows to provide materials to the supply areas of production.
Features of Warehouse Management Solution
According to SAP AG (2011) WM solutions has following features;
□ Storage Management: Based on requirement and storage type various storage facilities like automotive warehouse, high rack storage areas, bulk or fixed storage bins can be set in WMS. Mapping of bin level material stock management is possible. This helps to monitor all warehouse movements constantly and any particular items or materials can be located instantly. The inventory procedure and stock difference...

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