Warehouse Structure in the Warehouse Management System

Before you implement the application component Warehouse Management (Warehouse Management System) you must first define the structure, that is, the physical structure, of your warehouse or warehouse complex and depict it in the system.

Warehouse Structure Without WMS

If you are not using the Warehouse Management System, the storage location is the lowest level of inventory management in the system. In the Inventory Management (IM) component, the storage location is defined as the location of physical stock in a plant. In this case, storage locations make up the various warehouse facilities (or areas) of a warehousing complex (for example, high rack storage, picking area or bulk storage). However, you can only manage material stock in a fixed bin warehouse. Random storage is not possible. This type of fixed bin is different from a WMS storage bin in that it is entered into the material master record at the storage location level. If you are using Inventory Management without WMS, you can assign one or several physical storage locations to each plant.

In this example, storage locations are assigned to two plants. The first plant has two storage locations: storage location 0001 (for example, high-rack storage) and storage location 0002 (for example, bulk storage). The second plant has three storage locations: storage location 0001 (for example, high-rack storage), storage location 0002 (for example, bulk storage), and storage location 0003 (for example, picking area). In this case, Inventory Management supplies information on the stock quantities at storage location level in the form of quantity totals. In addition to having a warehouse structure without the Warehouse Management System (WMS), you also have the option in fixed bin warehouses to process warehouse activities using Lean WM. Here you can use the advantages of transfer order processing without having to manage stock quantities at storage bin level. We recommend that you implement Lean WM in fixed bin warehouses for the purpose of picking deliveries.

Warehouse Structure With WMS

When you implement the Warehouse Management System (WMS) in a plant, you define the individual warehouses (high-rack storage, block storage, picking area, and so on) as storage types within a

warehouse complex and group them together under a warehouse number. As a rule, it is not necessary to define several storage locations for a plant since you assign the WMS warehouse number to a storage location from Inventory Management (IM). It is appropriate to define further storage locations for a plant if other warehouses (storage types) exist within a plant that is not managed using WMS but with Lean WM, for example. In WMS you define storage bins for each of the storage types. In this way, WMS manages stock information on all materials in the warehouse at storage bin level. In addition, the stock quantities of the material are managed in Inventory Management (MM-IM) at storage location level. In order to link the information at storage location level with the information from the storage bin, assign a warehouse number to the storage location.

This figure depicts two plants that each manage a storage location using WMS. Warehouse number 001 is assigned to storage location 0088 in the first plant. In warehouse complex 001 there are two storage types. Warehouse number 001 is assigned to storage location 0088 in the first plant. In warehouse complex 002, there are three storage types. You can also manage stock for several plants in the same warehouse at the same time. In this case, the same warehouse number is assigned to the storage locations for these plants.

As a rule, it is a good idea to manage only the stocks of one storage location and the same plant within a warehouse number. However, you can also manage several storage locations of one and the same plant within a warehouse number. For scenarios associated with this structural configuration, see Storage Locations in TRs, Tos and Posting Changes. For information on how to link a plant storage location in IM with a warehouse number in WMS, refer to the Implementation Guide under the path Enterprise Structure Assignment Logistics Execution Assign warehouse number to plant / storage location The system uses the links that you create to Inventory Management (IM) to ensure that certain processes in Quality Management (QM), Product Planning (PP), and Sales and Distribution (SD) are carried out in the Warehouse Management System (WMS) for the appropriate warehouse number.

Depiction of the Physical Warehouse in WMS

The warehouse structure in Warehouse Management is hierarchical and consists of the following elements: The Warehouse Number You can define an entire physical warehouse complex in WM using a single warehouse number. The Storage Type Each of the warehouse facilities or areas that make up the warehouse complex can be defined as a type of storage area or "storage type" on the basis of its spatial, technical, and organizational characteristics. Each storage type is divided into storage sections. A storage section generally includes all bins that have certain characteristics in common, such as bins for "fast-moving items" near a goods issue area. The Storage Bin

Each storage type and storage section consists of a row of storage spaces that are referred to in WMS as storage bins. The coordinates of the bins indicate the exact position in the warehouse where goods can be stored. The Quant The quant serves to perform inventory management of a material at the storage bin. To depict the setup of your physical warehouse in the system, first define the warehouse structures in WMS in the Customizing application. We recommend that you adhere to the following sequence when setting up your warehouse structure in the system. 1. Define the warehouse number in Customizing under the path Enterprise Structure Definition LogisticsExecution Assign warehouse number to plant / storage location 2. Define the storage types in Customizing under the path Logistics Execution Warehouse Management Master Data Define Storage Type. 3. Define the storage types in Customizing under the path Logistics Execution Warehouse Management Master Data Define Storage Type. 4. Create the storage bins.

Basic Functions of Warehouse Management

Inventory Management exact to storage bin level Mapping and control of all goods movements Monitoring of the processing of these goods movements Connection to mobile data entry as part of the integrated radio frequency solution Connection to specialist external systems using an interface

Warehouse Management enables a precise specification of the exact location of a particular quantity of material and informs you whether this quantity is currently in a storage bin or on the move. Warehouse Management uses a special document, the transfer order to map and control warehouse movements. When you create a transfer order, the system determine suitable storage bins to put away or pick stock (we can also manually specify the same).

Warehouse Management is equipped with monitoring tools, warehouse activity monitor allows you to identify and correct errors in a timely fashion. Allows Direct connection of mobile data entry devices to Warehouse Management. This is based on radio frequency (RF) technology and is neutral in terms of hardware. The transactions in SAP ECC for using RF solutions cover almost all inbound and outbound activities. Stocks can also be packed and loaded, and inventory counted.

Warehouse number contains a number of subordinate organizational units (depending on the settings in Customizing): Storage types, storage sections, and picking areas.

The storage type is used to map a storage space that forms a separate unit within a warehouse number, spatially and/or organizationally. Example: high rack, fixed bin, and bulk storage types Interim storage areas play a special role and can generally be recognized at first glance in the standard system by their key (which starts with a 9). These storage areas form a sort of bridge to Inventory Management. Goods receipt area and goods issue area are typical examples of interim storage areas.

Every goods movement that affects both Warehouse Management and Inventory Management is processed using an interim storage area. Example: a goods receipt for a purchase order, which is posted first in Inventory Management. The goods are then brought into the warehouse via an interim storage area, the goods receipt area. Storage sections are created within storage types to further divide the storage space. There can be various criteria for creating various storage sections. Example: store goods that are easily spoiled in a chilled area, store a fast-moving item in easily accessible storage sections. The system only takes storage sections into account during putaway. At least one storage section for each storage type needs to be created. Picking area is on the same hierarchical level as the storage section and can be used to subdivide the area of a storage type to control the stock removal process. Unlike the storage section, the picking area is an optional organizational unit. Storage bins are master data and are created within a storage section.

Construction of a Storage Bin Master Record

Storage bins are always created within a storage section. We can also assign a picking area and, where ever necessary, a fire containment section for hazardous goods management. Each storage bin is uniquely identified by coordinates in the storage type. Up to 10 characters are available for constructing the storage bin coordinates. Storage bins can also be assigned to a storage bin type. Storage bin types are particularly useful if storage bins of a particular storage type or storage section within a storage type have different dimensions.

System can use the storage bin types in the storage unit type check to determine whether the load carriers intended for the current putaway activity are suitable for the storage bin that was determined by the system. (In Customizing, storage bin types (groups of storage bins) are assigned to groups of (permitted) load carriers (storage unit types) for this purpose.) Storage bin stock is displayed in detail in the storage bin master data record. You can block a storage bin for putaway and/or stock removal directly from its master record.

Using Sort Variables

During putaway in an empty storage bin, the system uses an index of empty storage bins that is usually created on the basis of the complete storage bin coordinates. If a storage bin becomes empty as a result of stock removal, or if a previously empty bin is filled following a putaway activity, the system updates the empty bin index. If the coordinates are formed using a. shelf - stack - level. structure, as is typical for shelf storage, the system first fills all the levels of a stack from bottom to top and then fills all of the stacks, shelf-by-shelf from front to back. This process can lead to an unbalanced load in the warehouse, where individual shelves are (almost completely) filled, whereas others are (almost completely) empty. Using sort variables, which is assigned to a storage type, you can achieve cross-line stock putaway, that is, putaway across the direction of the shelves or aisles.