How to Overcome Gaps in SAP EWM Putaway Strategies
Efficient warehouse management hinges on effective putaway strategies. Many companies leverage SAP Extended Warehouse Management (SAP EWM) to streamline goods movement. However, standard SAP EWM has a significant gap: it lacks flexibility in the bin search sequence within the goods receipt buffer. This gap can be a major hurdle, but a customised enhancement can bridge this gap and optimise the flow of merchandise into distribution centres.
The key points of the blog
Understanding Standard SAP EWM Putaway Strategy
Understanding Standard SAP EWM Putaway Strategy
SAP EWM’s standard putaway strategy is largely controlled by master data-specific criteria, which means each product follows a fixed putaway strategy. The bin allocation sequence relies on the LAGP table’s sort order based on bin names, assuming the physical space is already optimised. This assumption doesn’t always hold true in real-world scenarios where bin allocation needs to adapt to varying business conditions, such as customs or specific picking requirements.
Typical gaps in putaway strategies
Typical Gaps and Disadvantages in Putaway Strategies
The gaps in the standard SAP EWM putaway strategy can lead to several disadvantages:
Inflexibility in Handling Diverse Products
Example: In a pharmaceutical warehouse, products requiring cold storage need different handling than those stored at room temperature. The standard EWM strategy may not efficiently accommodate this variability.
Inefficient Space Utilisation
Example: In a food and beverage warehouse, space utilisation is critical. Standard putaway strategies might lead to inefficient use of available space, causing higher operational costs.
Longer Putaway Times
Example: Quick turnaround times are essential in an e-commerce fulfilment centre. Fixed bin sequences can lead to longer putaway times, affecting overall productivity and customer satisfaction.
Inability to Adapt to Seasonal Variations
Example: In the fashion industry, seasonal products require different storage strategies. The standard EWM strategy may not be flexible enough to adapt to these seasonal changes, leading to inefficiencies.
Industry gaps in the SAP EWM putaway strategy
Industry Gap in the Standard SAP EWM Putaway Strategy
To illustrate this gap, consider the fashion retail industry. Here, products can undergo different processes like customs clearance or additional logistical services (e.g., conversion from laid to hanging goods, steam treatment, and relabeling). The flexibility to dynamically adapt putaway strategies based on these requirements is crucial but not supported in the standard SAP EWM.
In fashion retail, one product may go through different subsequent processes. For instance, a piece of clothing may initially be subject to customs block due to its import from a non-EU zone. This means the product must be moved directly to a separate area and may only be processed further in the putaway process after customs clearance. Without flexibility, this process can become cumbersome and inefficient.
Filling the gap with a custom approach
Filling the Gap with a Custom Approach
A customised enhancement involves introducing three new tables to influence the standard bin determination:
Mapping Table: Defines user-specific storage process types for standard types.
The Z mapping table maps primary process types to activities and sequences, allowing for different subsequent actions based on conditions. For example, a product subject to customs clearance can be mapped to a specific process type that directs it to a customs area.
Internal Sorting Table: Re-sorts storage bin candidates.
This table re-sorts bin candidates based on user-defined sequences. For instance, during the putaway task creation, bins are re-sorted according to the custom sort order rather than the fixed LAGP order.
Master Data Table: User-defined and adaptable for more flexibility.
The master data table contains sort sequences for different activities, allowing for dynamic sorting based on real-time needs. Bins are sorted differently for products needing additional logistical services compared to those for immediate storage.
These tables allow for the creation of condition records that can dynamically adapt the bin allocation sequence based on various scenarios, providing the required flexibility missing in the standard system.
Achieving optimal product storage
Would you like more in-depth insights? Read more in our whitepaper! Explore the details on how to close any gaps in SAP EWM putaway strategies to achieve more flexible product storage. This practical guide showcases concrete steps to implementing the custom approach and a real-world example.
Advantages of the custom approach
The benefits of the custom approach
The main benefits of this approach to overcoming any gaps in SAP EWM putaway strategies include the following:
- Flexibility: Adapts to varying scenarios and business needs.
- Scalability: Easily scalable by adding new conditions and mappings.
- Efficiency: Optimises bin utilization and reduces handling times.
Implementing the solution
Implement the Custom Solution
To implement this custom solution:
- Create Condition Records: Define scenarios and corresponding bin sequences.
- Sort Bin Candidates: Use custom tables to sort bin candidates dynamically.
- Adapt to Scenarios: Continuously update condition records to reflect changing business needs.
Real-world examples of customer putaway strategies
Real-World Examples of Custom Putaway Solutions
Example 1: Pharmaceutical Industry
In the pharmaceutical industry, certain products need to be stored under specific conditions, such as controlled temperatures. A custom putaway strategy can dynamically allocate bins based on the product’s temperature requirements, ensuring compliance with regulations and maintaining product integrity.
Example 2: Food and Beverage Industry
In a food and beverage warehouse, products often have different storage needs based on their shelf life. A custom putaway strategy can prioritise products with shorter shelf lives for faster picking, reducing waste and ensuring freshness.
Example 3: Automotive Industry
In the automotive industry, different parts may require different storage conditions and handling processes. A custom putaway strategy can allocate bins based on the size, weight, and handling requirements of each part, optimising space utilisation and improving operational efficiency.
Conclusion
Next Steps
By adopting this custom approach, businesses can overcome the limitations of the standard SAP EWM putaway strategy. The solution is scalable and flexible and enhances overall efficiency in product storage and movement. For expert guidance on refining your SAP EWM putaway strategy, contact our supply chain management and logistics specialists.
For a deep-dive into the topic download our whitepaper on the same topic, which offers a detailed guide on how to close any gaps in SAP EWM putaway strategies.
Interested in achieving more flexible putaway strategies? Reach out to our supply chain experts! We are happy to support you!
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