G.V.Shivakkumar venkatesansivakumar@yahoo.co.in gvshivakkumar2010cts@gmail.

com

Why WM requires?

I've got a client that is going to upgrade to mysap 2004 from 4.6C.
They currently use WM but I think they don't need it and they could manage their stock
perfectly via IM.

I need to prepare a questionaire to make sure that I give them the right advice.

Please tell me reasons why a company would need/want to use WM instead of just IM.
What do you think it's the requisite for someone to need to use WM?

cheers

Lot of factors go in before a decision on this can be made. In a nutshell:

1. Whether tracking material at storage bin/quant level is required

2. Are materials handled in different units within the plant?
3. Whether there are different people/process involved from the time a material arrives at the
gate till it is stored and vice-versa (Goods issue process)
4. Whether dangerous / hazardous goods are maintained.
5. RF / Barcoding?
6. Overall complexity if only IM is activated. (ex: picking a material / performing physical
inventory etc.)

Hi Luis:

Venkat offers some valid considerations, and as usual, Svetja is the master of digging out old
posts which remain relevant today.

I would suggest some other considerations for your client's specific situation.

You say that they already have SAP WM:

1) Is it working well for them?
2) Are the users properly trained?
3) Are the users able to run the WM System without a substantial level of IT or External
Consulting support?
4) What would the effort be for them to switch back to a Non-WM Managed Storage Location?

It is my guess that if they are considering moving back to a Non-WM environment, that either:

A) They didn't need WM in the first place and it was initially specified falsely for their
requirements or
B) They need WM, but they never organized enough training, or the critical mass of disciplined
users, which is required to run a smooth WM system.

Good Luck with your assessment.

Dear SAPFANs-

We are setting up a small warehouse for one of our facilities. We have the following
requirement:
Need the ability to track bin locations for each material movement in the warehouse.
Goods Receipt ability to place into a certain bin.
Ability to print bin location on a pick list
We are aware that there is a bin location field on the material master, but we get only one per
plant/storagelocation combination.
G.V.Shivakkumar venkatesansivakumar@yahoo.co.in gvshivakkumar2010cts@gmail.com

We are not looking for functionality for bin capacity or any of the extended functionality in the
Warehouse management module.

Any ideas on how we can meet this requirement. We've heard of Lean-WM but any ideas
would be greatly appreciated.

Regards,

Emre Ekmekci
emre_ekmekci@emak.com

HI,

Based on your 3 main requirements as stated in the first 3 lines of your message, you will
have to go for Warehouse Mgt (WM).

Its not at all complex. You can set up a simple WM Organisation Structure in SAP to cater to
all your requirements of tracking all material movements in the Bin including Stock Placements
& Removals. Also, if you need to take Physical Inventory at the Storage Bin level.

If you need any help for WM part, please feel free to write in detail giving your exact
requirements.

All the Best

Swap_MM

This is one of the few times that I have to disagree with Svetja. It is only my opinion, and
perhaps a philisopical one that that, but it is stupid to make more storage locations in one
plant that necessary. The idea of making 20, 50, or 100 Storage Locations in one plant to
avoid implementing WM is one of the stupidest thing that I have ever heard in SAP. Sure it
might work, but at what cost? You will have substantial problems with ATP and also with
Picking Location Determination in your deliveries.

I have to agree with Swap_MM here. Lean_WM is probably sufficient for you, but the effort to
implement a full Warehouse Management System in SAP is not that much greater, if you work
with an experienced consultant,
and the functionality is much more robust. You can make the Warehouse Definitition as simple
or complex as you want and as your business requires. If you decide to go this way, then I
advise you to spend the money to make sure that your personnel are properly trained, and
that all processes are reviewed, including ones that you did not mention (such as physical
inventory, scrapping, or returns).

If you need further assistance, please feel free to contact me.

Let me explain. I just said it is possible, please do not take it as a recommendation. Nobody is
able to tell you seriously via this forum if it would be better for you to go with or without WM.

You would need to do such analysis for each site seperatly. And then test business cases with
IM only and with WM to see advantages and disadvantages.
A small example:
WM can give you certainly more control, because a movement (transfer order) has to be
confirmed after the transfer has been done.
WM creates the paper work for Transfer orders.
Using IM, You can create GR/GI slips when posting the movement, however from my
experience in most cases the posting is done after teh fact, hence you either have to post the
movement before the physical movement or you have to create the paper (if needed)
G.V.Shivakkumar venkatesansivakumar@yahoo.co.in gvshivakkumar2010cts@gmail.com

manually.
However you rely on the warehouse people that they inform you if they have done it somehow
different to the paper. No way in SAP to control such situation, because there is no
confirmation in IM like it is in WM.

But WM is not that easy to use for many as some good and experienced consultants tell you.
If you disagree Robert, why would then be so much WM questions and issues disussed here in
the forum?

WM implementations succeed or fail with the level of commitment and knowledge of the
warehouse managers.

Hi Svetja:

Fair enough!! When you figure out how to jump over your shadow, please let me in on it,
because that's quite a neat trick.

Clearly I am a pro-WM guy, and I am often biased towards recommedning it in many a

situation. Of course, it is only a set of tools, and the tools work only as well, as they are
properly used, which is why I always recommend to invest in proper training. I read Emre's
requirement list, and I still feel that it would probably be a good idea for him to use the WM
module.

I also agree with your comments about the support of the Warehouse Managers, but you could
also say that about any SAP implementation in general. It can only be as successful as the
commitment from the management that is sponsoring the project in the first place.

Sometimes, its nice to disagree with respected colleagues, as something interesting and often
valuable usually comes out of it.

Can we deactivate WM after implementation?

have activated Warehouse management for a storage Location and Plant.

user has done WM transaction also.

Now user want to de-activate WM.

Is this possible and if done than what r the ill effect that can take place.

Hi ,

Yes ,you can deactivated but make sure about the material which are already maintaine under WH. if it's maintained so
you can not deactivated it until & unless mateiral(s) is blocked / delected for WH level.

Reg,
lalit

Solution

It is very easy do it, You can cancle the relation warehouse number and the plant and location, then the WM do not
work.

dont be too optimistic.

G.V.Shivakkumar venkatesansivakumar@yahoo.co.in gvshivakkumar2010cts@gmail.com

the open deliveries have a status set for WM relevance, so you may create problems with this open delivery if you just
disconnect the storage location

In this case you must recreate all deliveries income and outcome. That's all.

Hi Becca

I suggest that to be on the safe side that you ensure that all activity in WM is complete before you remove the
allocation. This means Transfer orders etc. and all SD deliveries for this storage location are goods issued. I would also
ensure that you have no negative stocks in interim storage types and that there are no PI documents open.
_________________
Sean

If this isn't done properly, what are the issues we would need to prepare for?

Hi All,

We now need to deactivate Warehouse Mangement for a particular storage location after going live with WM active.
What are the possible approaches to achieve the same without disrupting the business ?

I think one approach can be creating a different Storage location & transferring all WM stocks to that S.Loc. & then
block the S.loc. with WM for any further movements / posting.

Any other ideas ?

Thanks

Atul

Posted: Tue Jan 27, 2004 8:26 am Post subject:

I don't know how you want block the storage location, only way I can think of is to delete the location in config.

You can of course block all storage types and bins in WM using transaction LS06 and LS12 after you have moved all
stock to a non-WM-location. This would at least prevent everybody to put again material into WM.
Further I would recommend to delete the link between warehouse and storage location. IMG > enterprise structure >
Assignment > LE > Assign warehouse number to plant/storage location.

If you have plant to start with WM, then I guess you have done some setup for SD and PP as well, like Determine
Picking Location and setup of Control Cycle Production Supply.
check this areas as well .

Disadvantages of WM
G.V.Shivakkumar venkatesansivakumar@yahoo.co.in gvshivakkumar2010cts@gmail.com

1. Transaction intensive -
2. Master data – Extra master data must be maintained when using WM. Each material master requires two extra views
to maintain the stock placement/removal strategies, fixed bin information, replenishment quantities, etc. As well
storage bins must be maintained in the system.

3. Complexity – WM adds a layer of complexity to the system. Because transfer orders are typically initiated from IM
transactions reversing a transaction becomes more difficult.
4. Failed transfer orders – A large degree of automation can occur in WM by having IM transactions generate
automatic transfer order creation in WM. Quite often automatic transfer order creation will fail due to a lack of
inventory, inventory not being in the bin the system expects, or incorrect master data. If a failed transfer order is not
reprocessed often future automatic transfer orders will fail. As a result one WM error can compound into two or three
WM errors. Monitoring failed transfer orders is a daily task.

5. Discipline – Because of the complexity and failed transfer orders that can occur in WM a strict discipline is required
to maintain inventory accuracy. In WM inventory accuracy is not limited to count but also includes location.
6. Cycle counting – Cycle counting is more complicated when using WM as opposed to just IM. Cycle counting in WM
is a four-step process as opposed to three steps in IM. In addition, when performing a cycle count in WM the particular
storage bin will be blocked for stock placement/removal. Thus, if automatic transfer order creation is initiated from an
IM transaction at the time a WM cycle count is active the transfer order will fail due to the bin being blocked from the
cycle count.

Advantages of Warehouse Management

WM module provides flexible, efficient, automated support that enables you to:
• Manage complex warehouse structures
• Define and manage storage areas and storage bins in the warehouse
• Manage several different ‘Types of storage’
o High rack storage, Cold storage etc.
• Execute stock placements and removals using different put-away and picking strategies
• Interface to external non-SAP warehousing systems
• Manage inventory at the storage bin level