Accelerating Deployment of SAP EWM by using the most recent rapid-deployment solutions SAP EWM RDS and SAP EWM for Retail RDS ASUG | September 2013 Igor Becker, SAP AG

SAP History of Rapid-Deployment Innovation 5 Solutions at SAPPHIRE NOW

SAP ASAP Methodology released

Cloud Offerings with HP, Amazon, IBM

Hybrid Deployments with…

Cloud-based Quick Start

SAP All-in-One introduced

1996

…

2003

“The New Standard”

Global Launch

+1,700 Customers

– Jim Hagemann Snabe, SAP co-CEO

2010 5

2011 SOLUTIONS

2012 46

100+

PARTNER OFFERINGS

Average projects go from +15 to 8 months

Mid-market ERP projects go from 8 to 3 months

© 2011 SAP AG. All rights reserved.

Today: Run Better in Weeks

…SuccessFactors, Ariba & SAP JAM

Leading Suite/CRM powered by SAP HANA Ramp-up

2013 … 150+

170+

SAPSAP Rapid HANA Deployment customers Entryway toof live • SAP HANA • Cloud Solution via SAP Rapid Customers Deployment buy • Analytics • Mobile Innovation more Solutions than one

25% 1/3

2

Secret Sauce! What’s in Each Solution?

SOFTWARE Address the most urgent business needs

© 2011 SAP AG. All rights reserved.

CONTENT SAP-supported best practices, templates, and tools

ENABLEMENT Guides and educational material to speed end-user adoption

SERVICES Fixed scope and price maximum predictability & lower risk

3

Rapid-Deployment Solution Implementation Methodology Shorter time to start, deploy, and run through best practices 0

Traditional Project

10

Preparation

Savings up to…

RapidDeployment Solution

20

30

40

Business blueprint

95%

Discover

Start

50

60

70

Realization

50%

Testing

30%

Deploy

80

90

100

Go-live

At least 40% time and effort reduction compared to similar scope of traditional project Run

Tobias Ortwein, PAC. Sept. 2012

Rapid-deployment solutions can help drastically reduce implementation efforts compared to a classic approach, since the base processes within the solution scope are very well defined best practices, and more efficient than defining custom-specific processes. © 2011 SAP AG. All rights reserved.

4

The Best of SAP, Fast & Simple

SAP FAST. SIMPLE. Deploy in 8 weeks or less. Clear entry-way to innovation Fixed-price implementation. Speeds end-user adoption.

FOCUSED on BUSINESS OUTCOMES Modular. Integrated.

© 2011 SAP AG. All rights reserved.

ALL environments: Cloud, On-Premise, Mobile

5

SAP Rapid Deployment Solutions for LoB Supply Chain

SAP Value Map for Supply Chain Demand-Driven Supply Chain

Logistics and Order Fulfillment

Sales and Operations Business Planning

Demand Planning

Supply Network Planning

Advanced Production Scheduling

TM for Planning

TM for Freight Tendering

Sales and Operations Planning

Global Available to Promise

Supply Chain Response Management

Demand Signal Management

TM for Ocean Carrier Booking

Order tracking and exception management

Supplier Collaboration

Customer Collaboration

Extended Warehouse Management

EWM for Retail

Supply Chain Monitoring

Service Supply Chain

© 2011 SAP AG. All rights reserved.

Supply Chain Performance Management

Service Parts Planning

6

Rapid-deployment Solutions for Extended Warehouse Management

https://service.sap.com/rds-ewm https://service.sap.com/rds-ewm-retail

Rapid Deployment Solutions (RDS) for EWM EWM Rapid Deployment Solutions Fixed scope, fixed cost solution and service to accelerate your warehouse implementation EWM RDS V 2.702 (2011) Key warehouse processes Implementation accelerators „built-in“ Preconfigured Warehouse

© 2011 SAP AG. All rights reserved.

EWM RDS V 3.90

EWM for Retail

v 4.90 planned Oct 2013

(Jan. 2013)

Assemble-to-Order with ERP Best Practice

Retail specific distribution center processes

Narrow-Aisle as first module

Replenishment of stores

Wide Aisle and Batch prod.

8

Rapid-deployment Solutions for SAP EWM Value

Advantages of a fixed scope solution Best Practice approach to realize common customer requirements Preconfigured software and standardized service reduces implementation time and effort Proven deployment method at fixed time and fixed price Reliable solution with a predictable success Market leading SAP warehousing applications with full integration into your SAP landscape Flexibility to extend the use of the SAP EWM applications after deployment

© 2011 SAP AG. All rights reserved.

9

SAP Extended Warehouse Management rapid-deployment solution

Main conceptual features of the RDS EWM 9.0 CI Narrow-Aisle (Q2), Wide-Aisle, Bin Sectioning and Batch managed Products (Q4)

Automatic High Rack Narrow Aisle Rack Storage

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Wide Aisle Rack Storage

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EWM Storage Concept: Narrow Aisle Access -

Low Level Trucks (see A) can access the lower levels of the aisles and handover points only (see C)

-

High Level Trucks (see B) can operate in one or several aisles but can not move to GR-Zone or Packing Area. They can access all levels in the Narrow Aisle.

-

Only one truck is allowed in one aisle at the same time

-

To pick from the lower levels, the low level truck is faster (more optimal) than the high level truck

-

The high level truck is slower than the low level truck, especially the going up in height is time-consuming. Changing of aisles are also time-consuming.

© 2011 SAP AG. All rights reserved.

Narrow Aisle is modelled in EWM with 3 storage types: Y001 – handover points (see C) Y051 – lower levels Y011 – upper levels

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EWM Storage Concept: Mezzanine Inbound/Receiving: -Small

products received in small quantities are stored in mezzanine -Transport

from Goods receipt zone to final bin using storage container -One

storage container holds same quantity as one final bin -Storage

container is returned empty from mezzanine to GR-Zone Outbound: -If

customer orders a small product in a small quantity (less than a pallet), this product is picked from mezzanine -No

forklift/truck access in mezzanine, Operator uses a trolley with 3 compartements for multi-customer picking

© 2011 SAP AG. All rights reserved.

Mezzanine is modelled in EWM with storage type Y021

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Business process scope covered in RDS SAP Extended Warehouse Management

Inbound Processing

Storage & Operations

Goods Receipt Management & Optimization Quantity based putaway Cross-Line Putaway Clarification process

Outbound Processing

Replenishment as “letdown” and “cross-aisle” Physical Inventory Cycle Counting Bin Sectioning Pick Point

Large-Small quantity picking with picking waves Consolidation for packing at “bus stops” Staging Loading on transportation unit

Batch managed Products Task Interleaving Structure: Narrow-Aisle with Handover Points, Wide-Aisle with Pick Point, Mezzanine Assemble-to-Order with SAP ERP Best Practice Analytics & Reporting Native Technologies (RF), Queues following physical paths TCI, TCO Reduction © 2011 SAP AG. All rights reserved.

14

Sample Warehouse Layout

v 4.90 planned Oct 2013

Sample Warehouse Structure © 2011 SAP AG. All rights reserved.

15

Diskussion Template Example Warehouse YER2

Overview

Y930 Doors Inbound YDI1

SAP ECC 6.0

Create O.DLV

Create ODR

Create ODO

© 2011 SAP AG. All rights reserved.

YDI2

GR-YDI2

YDI3

GR-YDI3

Receiving Office

Create SO

Pack

Y910 Goods Receipt GR-YDI1

Hand-over

Hand-over

Point

Point

Y031

Y001

High Rack

Y011 High Rack

Y021 Mezzanine

Y970 Clarification Zone

NA

Y831 Packing Zone Y002

Pick Point

Y051 Picking

Y920 - Provide in Goods Issue

SAP EWM 9.0

Outbound to Customer from Narrow Aisle Storage / Mezzanine

Sales Orders to sell goods Creation of Outbound Delivery Assignment to picking waves automatically by route and pl. shipment Picking by quantity with removing full pallets via Hand-over point Packing at bus stops into Shipping HUs Loading to Transportaion Unit by HU

Y003

Y970 Quality Inspection

Y840 Scrapping Area

GI-YDO1

GI-YDO2

Y930 – Doors Outbound YDO1 YDO2

GI-YDO3

YDO3

Shipping Office

Update O.DLV & Stock

Wave Assignment Create Stage WT

Release Wave

Confirm Stage WT

Create WO and WT

Confirm Pick WT

Create TU

Load

Departure TU & GI 16

Rapid deployment of SAP EWM Key Facts Value Proposition Rapid availability to pre-configured, ECC integrated EWM 9.0 Sandbox Rapid implementation that reduces the TCI Standard functionality, which is scalable with other functionalities Training and hands-on with users can start quickly Flexible choice of functionalities based on building block principle Anytime enhancement and upgrading possibility (-> Standard SAP Solution) Blueprint Accelerator with a higher blueprint quality Fixed Price Model

A clear path to your full EWM vision

Related Services EWM Business Assessment Deployment of Add-ons for SAP Extended Warehouse Management

Service Description The Service consists of Preparation & Workshop, Solution Activation and Knowledge Transfer The customer receives in his sandbox system a new client with a predefined warehouse layout and working processes It is the foundation for a subsequent SAP EWM implementation project The activation is done for 1 company code and 1 warehouse

Service Content The service content for the rapid deployment of SAP EWM for CI includes Project kick-off Setting-up SAP ERP – SAP EWM connectivity Integration and set-up of relevant master data objects Solution Activation Validation of selected processes Hand-over process workshop with key users

Delivery Details On-site and remote with a consultant from local market unit Implementation time: ~ 4 weeks Effort: ~ 26 person days Costs: contact local market unit © 2011 SAP AG. All rights reserved.

17

SAP EWM Rapid Deployment Solution

Foundation

Process

IT

Additional services not covered by this RDS

Exception handling System Installation

Outputs

Develop Outputs Security and Authorization RF Unit Adoption

Customer Return Scrapping

Inventory Count Replenishment

Innbound Outbound

Resource Management Warehouse Structure EWM Master Data

ERP-EWM Integration Master Data Integration

Adopt to customers Process

What is in and what is out

Performance Testing Data cleansing and data Conversion Integration to Warehouse Automation Interface to Legacy Systems

RDS EWM

SAP Extended Warehouse Management rapid-deployment solution

© 2011 SAP AG. All rights reserved.

ERP-EWM integration Complete and ready-to-run RDS system with best-in-class processes Enterprise & warehouse structure and central master data

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SAP Extended Warehouse Management for Retail rapid-deployment solution V1.900 Overview Presentation

Built-in optimization for Retail Wave management

Optimized work orders; efficient pick path

Labor management

Reduced labor costs; improved labor planning

Slotting

Advanced storage concept; ABC goods classification

Cartonization

Automatic shipping-unit determination

Multiple Stock UoM

Process flow for parallel stock specific UoM from inbound, storage, picking determination to outbound

© 2011 SAP AG. All rights reserved.

20

Distriubution center and warehouse processes Conceptual overview Distribution Center Vendor: PCS-V321

Store M004

Store M005

Inbound Process with same Merchandise Inbound Process with mixed Merchandise Outbound Process for Retail Stores

Store M001

Merchandise Distribution process with Cross-Docking Merchandise Distribution process with article-driven FlowThrough Warehouse Processes with Merchandise in different Pack Sizes Warehouse Processes with Catch Weight Article Warehouse Processes with Best Before Date Article © 2011 SAP AG. All rights reserved.

21

Diskussion Template Example Warehouse YER1

Overview Collective PO contains aggregated quantities for both stores 1 Inbound delivery 2 Outbound deliveries Quantity adjustment in EWM due to underdelivery from supplier Stores are served by the same route

T930 Doors Inbound YDI1

Y910 Provide in Goods Receipt GR-YDI1

YDI2

GR-YDI2

YDI3

GR-YDI3

SAP ECC 6.0 SAP EWM 9.0

Merchandise Distribution Flow Through

Y810 MD Flow-Through Sorting Area

Y050 Hich Rack Picking Zone

Y920 - Provide in Goods Issue GI-YDO1 Receiving Office

Create STO

Y020 Mezzanine

Y010 High Rack Buffer

Create Coll. PO

Create I.DLV

Y840 Scrapping Zone

GI-YDO2

T930 – Doors Outbound YDO1 YDO2

GI-YDO3 Shipping Office YDO3

Update I.DLV & Stock

Update O.DLV & Stock

Create O.DLV Create IDN Create ODR

© 2011 SAP AG. All rights reserved.

Create PDI

Create ODO

Unload

Wave Assignment

Post GR Quantity Adjustment

Create TU

Putaway to Sorting Release Wave

Create WO and WT

Confirm Pick WT

Stage

Departure TU & GI

Load

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Rapid-deployment of SAP EWM for Retail

What’s included – Service scope The implementation of the SAP EWM for Retail RDS is based on a one-landscape system (ECC 6.0 EhP5 and above, EWM 9.0) which is a Development or Sandbox system with core SAP EWM Retail processes. No Quality System or Production System is part of the scope of this service. The service includes: Check installation Plan project schedule Prepare Best Practice Activation Conduct kick-off workshop System configuration Transfer master data Execute configuration guides Unit testing Conduct hand-over workshop Receive sign-off Overall effort of service is 23 person days within 5 weeks © 2011 SAP AG. All rights reserved.

A special step-by-step guide describes each activity during the deployment

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System landscape

Decentral solution architecture

SAP EWM standalone

SAP EWM as an add-on SAP EWM

SAP ERP

SAP ERP

SAP ERP SAP ERP

SAP EWM Server for SAP SCM

© 2011 SAP AG. All rights reserved.

SAP EWM SAP NW

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SAP EWM RDS packages - Optional Delivery via Cloud SAP Pre-Assembly & Cloud Logistics Services Pre-assembled by SAP in the Cloud

EXECUTE Quick Start in the cloud

MIGRATE to Customer environment

ERP RDS ERP / EWM

*)

ERP

EWM *) connection to existing customer system possible

INNOVATE

EWM

Accelerate SAP implementations with preconfigured business processes in the cloud Quickly configure, enhance, and test in the cloud Use as sandbox or development environment Experience no delay (hardware availability) to project kick-off Run productive environment on-premise or another private cloud For more information please contact SAP Value Prototyping.

© 2011 SAP AG. All rights reserved.

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SAP Rapid-Deployment solutions The fastest way to run your business better

Solution Details SAP EWM Features of EWM leveraged in EWM RDS

green = used in EWM RDS

SUPPORTING AREAS

CROSS PROCESSES

CORE PROCESSES

EWM 5.0 EWM 5.1 EWM 7.0 EWM 7.01 EWM 7.02 EWM 9.0

Inbound Processing

Storage & Operations

Outbound Processing

ASN data receiving, validation, correction Transporation unit mgmt. Goods receipt Putaway bin determination Internal routing Slotting Deconsolidation Putaway Returns / reverse logistics Goods receipt optimization Advanced returns mgmt.

Rearrangement Inventory counts / record accuracy Replenishment Freight order management Kit-to stock

Order deployment Route determination Wave management Picking bin determination Warehouse order creation Work assignment Picking, packing, staging Loading & goods issue Kit-to-order Manual outbound deliveries Production supply

Transportation cross docking Pick from goods receipt/ push deployment Yard management

Labor management Opportunistic cross docking Merchandise distr. X-docking Stock specific unit of measure Packaging specification Batch management Serial numbers Catch weight Material Flow System Warehouse cockpit Dock Appointment Scheduling Integration with SAP TM via SAP ERP

Task interleaving Execution constraint mgmt. Semi-system-guided work

RF / RFID Enablement Quality inspection Import / export integration EH&S integration eSOA enablement Migration Tools Pick by Voice

© 2011 SAP AG. All rights reserved.

Graphical warehouse layout Transp. integration (LES) Claims & Returns ERP transportation integration Multiple EAN Cartonization Rapid deployment package KPI‘s, Performance dashboard 27