Do you know that SAP Warehouse Management is used in more than 1,000 operations around the world? We are familiar with SAP, but What is SAP Warehouse Management? Let me tell you. A warehouse is a commercial place usually used for storing goods. It plays an important role in achieving the business' productivity goals. A warehouse management system makes the process more efficient, consistent and quality controlled by assisting us in moving goods via the warehouse at maximum speed, enhancing each stage of the fulfillment process. In this blog, let us understand warehouse management offered by SAP, why it is used and how the warehouse management is done. So, Let's get started with SAP Warehouse Management.
SAP Warehouse Management is an ERP software which integrates the functions of a warehouse and simplifies and controls all the processes of the warehouse for creating an efficient operation. It enables the users to manage all the structures present in the warehouse operation, whatever their complexity, while monitoring inventory differences and controlling dangerous goods. It also uses barcode scanners to accelerate the inventory processes.
Stock transfers and receipts of goods can be handled while monitoring the inbound and outbound goods all day long. All the logistics required for a successful warehousing operation can be ensured, and many of the time-taking processes may be automated to retain resources. Automates resource-intensive processes and takes advantage of inventory management at the bin level to improve the organization's accuracy and organization. It tracks the physical locations inside as well.
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It allows us to understand where the stock is, the way labor is allocated, and how the automation tools work. Find out what the problems are and fix them before they become expensive problems later. Multinational companies can take advantage of this platform to make sure that all essential regulatory and international trade requirements are met.
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The activities that are included in SAP Warehouse Management are:
Warehouse Management assists us in identifying the stock status of the material at the Bin Level. It helps us to process the goods' movements and maintain the inventories. Inventory Management starts the Warehouse Management process. In Addition, it is integrated with Production Planning, Sales and Distribution, and Quality management to operate as an ERP system.
Warehouse Management is completely integrated with the SAP R/3 system. Transactions which are started in other SAP components give rise to corresponding tasks in the Warehouse Management that enable actual physical transfers to the warehouse.
SAP Warehouse Management enables us to define and map the physical warehousing structure in the System, process the movement of goods such as issues, stock transfers, and receipts, and maintain stock inventory updates in the warehouse complex at the storage bin level. Warehouse Management is embedded with Sales and Distribution, Material Management, and quality management modules. For the material movement, the base material will be generated either in SD, QM, or MM modules. For Goods receipt from the vendors as well as other plants, the base document is generated from the MM module. And for the goods issue for production or the other plants, the base document is generated from the MM module. Since quality management is an active part of the organization, all materials will be subject to the quality inspection process. At the same time, GI and GR and the post-change document is generated in the quality management for placing or removing material in the warehouse.
During production, during the process of GR quality, as well as online inspection, the base document for returning the material to the vendor is generated in the QM module. For the goods delivery against the sales order, the delivery document is generated in the SD module for the material removal from the warehouse. To handle the material returned by the customer, the basic document is generated in the SD module. Inventory will be handled both at the storage location level at the inventory management level and at the bin level in the warehouse management. The WM module is also equipped with RFID & Barcode reading features. These may be explored and implemented in the future as a distinct project.
In this blog, we have learned about SAP Warehouse Management (WM), why we use the SAP Warehouse management system, the benefits of SAP WM, and an overview of SAP Warehouse Management. We hope you found this information helpful! For more blogs such as this, keep an eye out for HKR Trainings.
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