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Modules (cont.) IMWM ? Processing of all material movements ? Automated munication with configurable processing SDWM ? Twostep picking with SDWM integration ? Wave picking opportunities ? Processing individual deliveries PPWM ? Production support with PPWM integration ? Supplying materials to the shop floor ? Internal and external automated replenishment options WM Integration With Other Key R/3 Modules (cont.) QMWM ? Handling of inventory samples ? Inspection lot is maintained with the material data Handheld terminalsWM ? Processing of transfer requirements ? Processing of transfer orders ? Bin and material inquiries Benefits of WM Benefits ? Better control of inventory – More accurate inventory – Able to maintain lower inventory levels ? Better control of information – Visibility to picking and put away status ? Reduced cycle time – Gartner: 1625% Picking Productivity Improvement ? Better manage work and workforce to gain efficiencies – Tools to balance and optimize resources ? Increased picking / shipping accuracy – 1125% Reduction in Customer Returns Benefits of WM (cont.) Measurable benefits ? 1625% Picking Productivity Improvement ? 1125% Reduction in Customer Returns ? 1025% Savings in Material Handling Labor ? 1040% Space Utilization Improvement ? 1330% Reduction in Scrap ? 815% Reduction in Carrying Costs ? Source: Gartner Report What We?ll Cover … Understanding the difference between WM and IM Choosing between WM and IM Optimizing and overing limitations with IM and WM When Is Inventory Management the Answer? IM is great when... ? Small facility ? Lower levels of inventory on hand ? Simplistic material handling processes ? Lower volume of activity ? Outsourced warehouse operations – Only need storage location or bucket of inventory visibility Key Elements With IM Required data for IM ? Plant, valuation and storage location data Relevant data for IM ? Work scheduling, accounting, materials planning, purchasing, classification, storage and quality management IM menu ? Goods movements ? Material documents ? Reservations ? Environment – Focused on reporting, lists and LIS When is Warehouse Management the Answer? WM is great when ? Larger facilities ? Large number of materials on hand ? Higher volume or flow through ? Traceability and visibility is critical – Track material flow, status, inventory levels ? Complex processes – Automated systems, wide spread site Key Elements With WM Extend material master ? Warehouse management view ? No required data Define warehouse structure ? Minimize the number of storage types – Define based on similar and different rules for storing materials – Mixed stock, Storage or Handling Unit Management Define the WM Processes ? Automatic, semiautomatic and manual processing – Transfer order creation, confirmation, posting changes Evaluating IM vs. WM 1 – Define business processes 2 – Evaluate ROI of a WMS solution 3 – Consider RF functionality 4 – Training resources and schedule 5 – Focus on optimization opportunities Step 1 Define Business Processes Start with receiving, inventory and pick/ship first ? Create and evaluate process flow charts ? Look at process improvement opportunities ? Score the level of plexity Target areas for improvement ? Reduce travel time ? Inventory accuracy ? Reduce material handling Map improvements to IM and WM functionality 1 Define Business Processes (cont.) “The level of functionality that customers need in a WMS is pletely dependent upon their environment. Customers have to define their needs before they can realistically look for a WMS.” Source: Integrated Solutions Step 2 Evaluate ROI of a WMS Solution Measure productivity and accuracy before and after the WMS installation Review and analyze picking operations ? Key area of improvement Review and analyze inventory accuracy ? When supported with RF, accuracy can reach 98% 2 Evaluate ROI of a WMS Solution (cont.) “There is no ?right? time for paying back a WMS, but typical paybacks are within six to 18 months, depending on the inefficiencies of the current operation and how much safety stock was needed to cover daily ope