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Warehouse Management Frameworks Essay

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Updated: Aug 26th, 2019


System support for the company and management of inventory has turn out to be vital for judicious, efficient dispensation of logistic requisites within an organization. The SAP Warehouse Management (WM) system offers non-rigid, computerized support for assisting organization to process all inventory transfers and to maintain present goods in the organization warehousing intricate (Magal & Word 2012).

SAP refers to a combined application package for enterprise systems. SAP involves various applications for ease of integration. Each application involves an individual element of enterprise (Barlett & Ghosai 2007). SAP refers to an authentic application. A company at all times look at up to date information and not past information. SAP R/3 in addition works as an enabler for several other enhancement programs, ultimately resulting in enterprise gains like improved turnover and reduced operating expenses (Ballou & Pazer 2005).

This Warehouse Management Report will define Warehouse Management, identify the benefits that the system provides, and offers information regarding SAP’s Warehouse Management solution. In addition, it provides two case organizations that have applied WM solution and identifies all concerns related to such implementation.

Warehouse Management

Even though it is likely for organization to control warehouse goods utilizing the Goods Management (GM) utility system, the key variation between controlling inventory in Warehouse Management and in Goods Management is that in Goods Management, the application can only demonstrate the general list of materials for a warehouse site. If a storage site is not big and simply controllable, then the application of Goods Management may be adequate for fulfilling company needs (Zhu & Meredith 2003).

Warehouse Management, alternatively, provides the ability to control inventory numbers in all warehouses in greatly intricate warehousing sites. This implies that, with Warehouse Management, an organization can maximize the application of each individual warehouse facility, combine goods belonging to a number of owners in arbitrarily slotted storage bins and identify precisely where a specific item is placed in the storage facility always (Wang & Pazer 2008).

Benefits of WM

The SAP Warehouse Management (WM) application offers the flexible, efficient, computerized facility that facilitates the organization in:

  • Managing greatly intricate storage designs and a number of diverse kinds of storage bins comprising computerized bins, custom-made warehouse sites, high shelf warehouse, block warehouse, permanent warehouse facilities and all other regularly utilized warehouse locations (Pazer 2004).
  • Defining and adapting different warehouse locations for utilization in the company’s exact storing facility.
  • Processing any necessary warehousing activity and transfer roles, like stock receipts, stock concerns, intrinsic and extrinsic inventory movements, computerized replacement of permanent storage sites, inventory staging to processing sites and goods variation managing.
  • Utilizing arbitrary allocating for several owners of goods.
  • Displaying regular analysis of all stock transfers in the storage bin.
  • Implementing several readily available packing and picking techniques comprising self-structured approaches.
  • Supporting the storage and removal of harmful items and any other item that requires specialized treatment.
  • Maintaining updated stock documents at the warehouse level utilizing authentic constant stock strategies (Monk & Wagner 2007).
  • Supporting the application of computerized barcode sensors and RF system for all inventory transfers.
  • Completely integrating the organization’s Warehouse Management application for real-time interface with other SAP applications to involve Goods Management (GM), Stock Management (SM), Process Management (PM), Quality Planning (QP) and Promotion and Marketing (PM).

Details: WM solution

The WM component is totally incorporated into the SAP R/3 system. A transaction that is implemented in other SAP applications cause matching activities in Warehouse Management which trigger the real natural movements within the storage facility (figure 1). Some of such tasks comprise:

  • Inventory transfers and a change in item status, like moving materials from quality control.
  • Stock staging to manufacturing storage bins.
  • Sorting and transporting materials for sales orders.
Warehouse Management Cycle.

Figure 1: Warehouse Management Cycle

Source: Magal & Word 2012, p. 45

Most tasks that occur within Warehouse Management are activated in Stock Control. For instance, most items inflow, stock concerns and recording variation are activated in GM and consequently developed in Warehouse Management (Kock 2001).

Warehouse Management is in addition integrated to Promotion and Marketing (PM) via the Transporting component with a view of processing delivery details not only for the interfaced Warehouse Management system but also for the distributed Warehouse Management application (Klaus & Gable 2000).

The Warehouse Management integration to QP facilitates storage bin managers in tracking and managing inspection batches that are housed in the storage complex. Warehouse Management is in addition integrated to the Process Management (PM) application for assisting to provide inventories to supply sites in production (Huang & Palzia 2001).

Flexibility in WM

SAP Warehouse Management supports the application of computerized warehouse sensors and RF system for all inventory transfers. RFID interfaced WM aids in scheduling the tasks in the storage bin effectively and cost-efficiently, and in controlling the warehouse employees’ task phases accurately and purely through portable RF devices (Hanseth & Braa 2001). Numerous of the intrinsic and extrinsic warehousing tasks in SAP are facilitated by the radio frequency link.

WM mostly focuses on describing and controlling complex storage facility designs within an organization. The following aspects have to be taken into account when integrating the SAP R/3 Warehouse Management application:

  • Path maximization as far as inventory allocation, stock release and inventory movement are concerned.
  • Uniform use of storage bin capacity.
  • Optimization of warehousing employees.
  • Likelihood for upgrading in storage bin stocking.
  • Dealing with modes of transportation for inventory allocation and inventory release.
  • Opportunity for upgrading of assignment schedules.

Warehouse Management application is one of the efficient instruments relevant for managing storage facilities and for keeping stock at maximum position. But the WM is an instrument and a company require a knowledgeable person who can understand the company needs and fulfil them utilizing the instrument (Clemmons & Simon 2001). Possibilities of the instrument have to be exploited completely for the best outcomes.

Hardware suppliers

Ecom Devices is an international working producer of portable instruments for industrial application. Particularly in the sector of ICT, Flashlights, M-computing and Measuring and Calibration, the company is the leading manufacturer of non-hazardous device. Such instruments are internally secure and have the basic documentations for operating in hazardous environments (Carton & Adam 2003). There is an integrated RFID system and WM application has the system developed for such instruments.

Pruftechnik is a support technology organization, established laser beam configuration and provides hardware and provisions in non-hazardous, configuration and condition checking. With branches and distribution centres in over 75 nations Pruftechnik supplies the production companies worldwide.

SAP’s Warehouse Management has developed the integration with one of the best devices for condition checking Vibtool (Benbasat & Mead 2002). The tool ensures that there is no physical recording for aspects like Temperature, Velocity and Vibration.

Implications of WM

The nature of the contemporary storage bin is one of continuous change. There is at all times a thought of remove the goods now and focus on the damage afterwards. Unluckily fixing the damage afterwards never occurs and the storage facility starts to operate incredibly poorly as warehouse blocking begins to occur as the search string does not select quantities based on the shelving for delivery (Belardo & Klein 2006).

Implementing a SAP could perhaps resolve a few of the warehousing challenges, since, for instance, the WM application is a combined monetary suite that offers companies with important data in an authentic way. Combined ERP frameworks need less duration in gathering significant data.

The data simply requires to be inserted into the model once and then the information is available all through the framework in a constant way. Whereas utilizing different bequest sub-applications, it takes a substantial period in finding the relevant data. Since ERP has a combined interface, the system of data is constant all through the company (Barlett & Ghosai 2007).

There are certain critical concerns that require to be taken into account when an organization is making the move to implement an ERP. The new framework’s merits and gains can simply be handled. However, specific staffs frequently stress the weak points of an integrated ERP. The system is extremely costly, it needs an enormous number of qualified staffs with technical knowledge, and it consumes time in developing and implementing. The next part provides examples of two companies that have implemented SAP’s WM.

Felix Schoeller

Felix is known to its clients as an extensive brand producer and leading distributor of high-quality speciality papers. So as to meet the increasing setbacks of the marketplace, the company needed specialized IT solutions that were customized to the unique situations not only in the sector but also of the international organization. In 1995, the company selected SAP as its enterprise solution for the lasting and efficient support SAP provided for its supply chain.

The organization made a decision to systematically implement SAP in all business sections. The different warehouse management frameworks have so far been unchanged by the synchronization aspects of the global IT setting. As component of the program, the interaction between the different sub-frameworks utilized was to be redesigned, and components of inventory planning were to be matched with SAP warehouse management.

Tempo Beverages

Tempo Beverages is known by many as a leading beverage producer and leading distributor of high-quality beverages. In order to meet the increasing competition needs of the global market, it needed dedicated information technology options that were customized to the exceptional condition both in the sector and of the global market. In 2001, Tempo Beverages chose SAP as its business alternative for the long-lasting and competent support SAP WM provided for its operation.

The organization chose to progressively implement SAP in all business departments. The different warehouse management frameworks have so far been unchanged by the synchronization aspects of the global IT setting. As component of the program, the interaction between the many sub-systems applied was to be restructured, and parts of inventory planning were to be in line with SAP WM requirements.


SAP frameworks have turn out to be a critical system for numerous of the globe’s leading organizations. The frameworks offer an advanced degree of incorporation for supporting key enterprise procedures. The availability of authentic information suites enhanced decision-making. However, the integration and utilization of SAP’s WM framework encounter several concerns because of its intricacy.

The utilization of SAP WM in managing activities in the storeroom, together with radio frequency method, advances the degree of computerization. Computerized storeroom operations bring about a more efficient utilization of resources in addition to improved procedure security.

In addition, goods are presently accessible in the model in an open way as inventory planning is currently incorporated into SAP Warehouse Management, which eases both stock management and material handling. So as to benefit from SAP WM, one of the conditions for this software was to structure the application in such a manner that SAP Warehouse Management could as well be executed on other locations.


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