A Glance At The Fundamentals Of SAP WM And WMS

SAP WM begins as a sub-module of SAP Material Management Module that takes care of the Warehouse Management functionality. Well, it is possible to manage warehouses proficiently at bin location level with the help of the SAP WM module. Currently, SAP WM has been re-classified under SAP Logistics Execution module.

SAP WM module offers an efficient, flexible, and automated support that enables businesses to:

• Define & manage storage areas as well as storage bins a warehouse has

• Ensure that the stock posted in Inventory Management system appears to be the same as the warehouse stock

• Execute stock placements & removals with the help of varied put-away and picking strategies

• Integrate with product planning, materials management, quality management & sales and distribution

• Interface to the external non-SAP warehousing systems

• Manage complex warehouse structures

• Manage different types of storage like fixed bin storage, high rack storage or block storage

• Manage hazardous materials

• Manage inventory at storage bin level

• Monitor stock movements

• Process all the relevant postings & transactions like goods issues, goods receipts, and general stock transfers

• Process stock differences

• Use bar code scanners

SAP WM Module primarily aims at defining as well as managing the complex warehouse structures in a company

Following benefits can be gained by implementing SAP WM module:

Well, the SAP Warehouse Management module is a very effective tool that is available. It can manage the warehouse and keep the inventory at an optimum level. However, it is merely a business tool. You need an expert craftsman that can understand your business needs and fulfill them using this tool. He or she should be able to fully extract the potentials of this tool in order to deliver the best results.

What are the benefits of the Warehouse Management System?

Quicker inventory turns - A WMS is capable of reducing the lead times by restricting inventory movement and enhancing the accurateness of the inventory records, eventually supporting a JIT environment. Consequently, there is a decrease in the need for safety stock, thereby increasing inventory turnover as well as utilization of working capital.

Efficient use of the available warehouse space – Besides reducing the safety-stock needs, a WMS is capable of probably increasing the available space in the warehouse by efficiently locating items related to packing, receiving, assembly, and shipping points. Well, this increased efficiency can improve productivity as well as reduce inventory holding costs remarkably.

Reduction in inventory paperwork - A real-time WMS implementation can considerably bring down the paperwork associated with the warehouse operations traditionally as well as ascertain accurate and timely flow of both inventory and information. Getting reports, picking tickets, moving tickets, packing lists, and so on that are generally maintained as hard copies seem to be maintained electronically.

Enhanced cycle counting – It is possible for companies to use WMS so as to capture significant data to systematically scheduled personnel to facilitate cycle counts. These cycle counts not just improve accuracy of the inventory records meant for planning purposes but can get rid of or reduce the demand for complete and costly physical inventories as well.

Decreased dependency on warehouse personnel – Well, implementing an extensive WMS enables standardization of inventory movements, eventually picking methods & inventory locations. And, this standardization helps minimize trust on informal practices, thereby leading to reduced training costs & lowered error rates.

Improved customer service - By means of streamlining processes right from order to delivery, firms can more precisely determine availability of products and realistic delivery dates. In fact, a WMS can identify & release back-ordered inventory automatically. It can also reduce returns owing to increased shipment accuracy.

Enhanced labor productivity - A WMS aids in helping to optimize material flow generally incorporating a number of inventory picks into a single one or either by "cross docking". Well, cross docking appears to be a process which routes the incoming shipments to a location that is closest to the shipping dock (outbound), ultimately reducing warehouse handling.