Tuesday, April 7, 2009

WM module of SAP R/3

SAP is a integrated software package for business applications. SAP package is divided into many 'Modules' for ease of implementation. Each module covers a special aspect of business. Few examples are "MM" module covers 'Materials Management', 'CO' module deals with 'Costing' etc. All these modules are integrated i.e., they look for the same file for a data. Thus data redundancy can be eliminated. SAP is real time system. You always look current data and not historical data.

SAP R/3 also acts as a 'facilitator' for a number of other improvement projects, finally resulting into business benefits such as increased sales and lower cost of operations.

'WM' sub-module of 'MM' module takes care of 'Warehouse Management ' functionality. Warehouse can be managed efficiently at 'Bin location' level using WM module.

WM module of SAP R/3 provides the flexible, efficient, automated support that enables you to:

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  • manage complex warehouse structures

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  • define and manage storage areas and storage bins in the warehouse

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  • manage several different types of storage, such as high rack storage, block storage or fixed bin storage

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  • process all relevant postings and transactions such as goods receipts, goods issues and general stock trasfers.

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  • monitor stock movements

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  • execute stock placements and removals using different put-away and picking strategies

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  • process stock differences

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  • manage hazardous materials

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  • use bar code scanners

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  • interface to external non-SAP warehousing systems

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  • manage inventory at the storage bin level

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  • ensure that stock posted in the Inventory Management system is the same as the stock in the warehouse

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  • integrate with materials management, product planning, quality management and sales and distribution

It primarily aims at defining and managing complex warehouse structures within a company.

The following points must be considered while implementation of SAP R/3 WM module,

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  • Path optimization for
    • stock placements
    • stock removal
    • stock transfer (for example, replenishment)

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  • Even utilization of warehouse capacity

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  • Balanced utilization of warehouse personnel

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  • Possibility for improvement in warehouse stocking

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  • Handling of means of conveyance for stock placement and stock removal

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  • Possibility for improvement of work papers
WM' module is one of the effective tools available to manage Warehouse and keep inventory at optimum level. But it is a 'Tool' and you need a skillful craftsman who can understand your business needs and satisfy them using the tool. Potentials of the tool must be extracted fully for the best results.