239003122-scm-e2e-materials-handling-fulfilment.pdf

8/10/2019 239003122-SCM-E2E-Materials-Handling-Fulfilment.pdf

1/83

GL-GLOBE/ GT-MH 17 September 2014

E2E Materials HandlingFulfilment


2/83

GL-GLOBE/ GT-MH 7 September 2014 2

Agenda

MH Key DecisionsMH Process Decomposition

MH Roles

E2E Materials Handling Fulfilment

MH High Level Change Impacts


3/83


MH Key Decisions

Key Decision


4/83


Key Decisions - Content

1. Full Batch Traceability2. Pallet Handling

3. Inbound Delivery

4. Radio Frequency

5. IM-WM Key Design Principles

6. Interfaces to External Warehouses

7. Transportation

8. Out of Scope for V1.5

9. Process Control Integration Principles

Key Decision


5/83


1. Key Decision - Full Batch Traceability

Batch Management will be activated for:

All - Finished (FERT), Semi Finished (HALB), Raw Materials (ROH)

Partially - Packaging Materials (ZPCK) e.g. glue, shrink-wrap etc.

GLOBE standard for unique batch numbers

DS070-Batch Number for Finished Goods

DS071-Batch Number for Raw and Packaging Material

Traceability requirements apply to Nestl operations

as well as co-packer and co- manufacturing

System based traceability - with Full Compliance to Nestl QualitySystem (NQS)

Key Decision


6/83


Customers

Other Factories

Traceability Requirement (NQS)

Key Decision

Manufacturer

Factory

Relevant processingand quality records

Consignmentidentified bysupplier's lot codeor Nestl designatedlot codes

Supplier Consumerunit

Upstream Traceability

Downstream Traceability


7/83GL-GLOBE/ GT-MH 7 September 2014 7

Traceability

Traceability need to record the use of materialBatch Management of all materials to identify the material used

In Manufacture: appropriate application of the process orderconcept to the degree of traceability required

In Distribution (sales): traceability to customer through batch intransfer order

Traceability is a given requirement. What needs to be assessedis the degree of traceability

EXTERNAL (minimum requirement)Limitation is the physical identification of the product (code). Unlesstime stamped there is no benefit to have exact timing. Information isFull Production batch code and recall would be by batch code (max1 day)

INTERNALProcess control before release. In the event of a deviation, theability to find the cause and the product effected by the deviation

Production control (time based)

Business Decision based on cost effort and risk

Key Decision



2. Key Decision - Pallet Handling

SAP Handling Unit Management (HUM)not be used. SAPStorage Unit Management be used instead (as in version 1.0)

Storage unit (SU) managed, and SU labeled according to the DS078-Identification of Handling Units

All inventoried, palletized materials (Finished Goods, Semi-Finished,Raw and Packaging materials)

Nestl best practice: all internal movement between Nestl sites(factory to DC, DC to DC) handled with homogenous pallets(samematerial, same batch)This requires production to produce/declare homogenous pallets

Pallet labels for mixed pallets / storage units shipped to customers inscope

Management of Handling Materials (pallets, crates, boxes, wire baskets, roll-

containers and containers) out of scope. However, the full functionality forreturnable containers (e.g. in terms of tracking the returnable containersoutside of Nestl premises) will be subject to scope and solution providedby Greenwich on direct delivery

Tote Bin management NOT in scope. The content of tote bins can bestorage unit managed. The management of the physical tote binsthemselves has to be done off-line

Key Decision



Label example

Key Decision



3. Key Decision - Inbound Delivery

SAP Inbound Delivery functionality will not be used in templateversion 1.5 due to a gap in SAP relating to QM inspection lots.This is because inbound delivery cannot be created when QM isactive in a plant. This decision applies to both factories andDC's.

All incoming receipts of materials will be performed via postinggoods receipt against a purchase order directly into SAP withouthaving to go through the SAP Inbound Delivery process.

Best Practice is to receive goods based on a dispatch advice(ASN-Advanced Shipping Notification) EDI message (EANCOMDESADV messaging standard) sent by the external supplier orthe sending plant. For interplant / intercompany / intermarketdeliveries, this is a mandatory requirement, supported bytemplate with Discrepancy Management of ASN's.

Key Decision



4. Key Decision - Radio Frequency

Automated Data Capture is incorporated intoTemplate designthis covers both Radio Frequency(RF) & Key Board scanning functionality

It is highly desirable that each implementation market

adopts, wherever practical, scanning and/or RFtechnology to support the increased requirementsplaced on markets by Template

This key decision addresses process requirementsand not the hardware requirements

Design incorporates near real time data capture &capture at source recommended

Key Decision



5. Key Decision - IM-WM Principles

SAP WM forms the integral MH solution for:

Distribution Centers / Regional Distribution Centers

Factories and / or Production Facilities

SAP IM without WM solution is only envisaged inexceptional cases e.g. interfaced to a 3rdparty WMS

Key Decision



6. Key Decision - Interface to External WM

'Generic' interface plug-in to 3rdparty warehousesand external systems will be supported based on fullEAN compliance and EDIFACT standards.

First choice for WMS should be GT solution unlessmarket has must have functionality that is notsupported by GT

Use of interface for 3rdparty WMS in case ofoutsourced operations

Key Decision


14/83


Interface plug-in messages

Master Data MaintenanceMaterial Master changes

Inbound Process

Receipt Advice (RECADV)

Receipt Advice (Cust. Returns)

Receipt Advice (Process Order)

Outbound Process

Delivery release (SHPORD)

Dispatch advice (DESADV)

Goods issue to Production

(YINVRPT500)

Stock Adjustments (YINVRPTxxx)Local Quality Adjustment

Product Transformation

Manage Quality (Not MH)

Central Quality ch. (YINVRPT900)

Local Quality ch. (YINVRPT100)

Periodic Reporting

Stock Reconciliation (YMCHBDIF)

Others

Purchase Order (ORDERS)

Key Decision


15/83


16/83


7. Key Decision - Transportation

Transportation execution provided by GT V1.5 islimited to:

Manual grouping of deliveries into national loads

Split order or order line

Load planning

Additional Route Planning and scheduling functionality forDirect Delivery

Complete transport process decomposition is out of

scope for GT V1.5

Key Decision


17/83


8. Key Decision - Out of Scope for V1.5

The following topics are out of scope for GT V1.5:Warehouse planning

storage optimization, planning activities and resources

Dock & Yard management

Shop floor integration

Integration to warehouse mechanical handling AS/RSAutomatic Storage / Retrieval System

Management of pallets and interfaces to pallet managementsolutions

Full Tote Bin Management solution including status

Key Decision


18/83


Key Decision 9 (MH / Mfg & Agreed with CT-Eng)Process Control Integration Principles

SAP implementation projects identify a need for integratingInformation flows and transaction execution between SAP and shopfloor process control systems

The implementation of process control integration with SAP mustadhere to the key design principles laid out in the document

These design Principles include:

Requirement to view all attributes of materials (raw, packaging, semi-finished work in progress and finished goods)in terms of quality, quantity,batch, physical location within a SAP warehouse

Establishing the integration points between systems by establishing theresponsibility for transactional processing(i.e.. Quality status changes must occur in SAP)

Frequency of messaging - incorporating 'near real time' requirements

that recognise the integrated nature of the Template solution, and thebusiness requirements

Data consistency must be maintained between SAP and externalsystems (e.g. common use of master data, organizational structures)

Messaging standards, together with the proposed message streamsthat will be supported.

(For full details of the standards refer to the document)

Key Decision


19/83


Process Decomposition

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Level 2 to 5


20/83


Master Data

Process DecompositionLevel 2 and 3 - Content

- Standard- ProductionDeclaration

- Returns

- Expenseditems

- Capex - TradeAssets

Plan

ResourcesInbound Outbound

Stock

Management

Internal

Stock

Movements

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Level 2

- General, Putaway- Retrieval

- Picking AreaReplenishment

- Production Staging

- Cross - Docking

- Vehicle Direct

Delivery

- Standard- ProductionConsumption

- SupplierReturns

- Trade Assets

- Product Transformation

- Stock Adjustment- Inventory Counting

- Logistical Status Change

- PlanResources

- Master Data


21/83


L3 - Inbound

Master Data

Plan


Stock

Management

Internal

Stock

Movements

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Inbound


22/83


L3 - InboundVariants

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Inbound

Standard Inbound Process Inbound Production Declaration

Inbound Returns

Inbound Expensed items

Inbound CAPEX - Trade Assets


23/83


Discrepancy

Management

Unload /

Palletize

Post GoodsReceipt

Print or

Reprint Labels

Administrative

Control

Quality

Pre-check

Assign Resources

for unloading

Goods Arrive

L3 - Standard Inbound ProcessDecomposition

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Inbound

Manual process, normally a pre-planned activity

driven by Purchase Order release

Administrative step to match Purchase Orders againstdocumentation and information for loads arriving on site

Quality check conducted before a formal goodsreceipt is performed in the system

Unload arriving goods and prepare them(pack/palletize) for storage in the warehouse

Allocation of resources before physicalmovement of goods takes place

Printing new, or reprinting missing/unusable, palletlabels for received palletized goods

Posting the receipt of goods into the inventorysystem

Managing discrepancy arising during inter-Nestl

transfers

WMIM


24/83


Materials

Handling

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Inbound

Refer to

plan

Resources

Purchase

Order or

ASN

Refer to

Procure to

Pay (ES)

Goods

Arrive

Administrative

Control

Goods

to be

receiv

ed?

Quality Pre-

Check

Goods

to be

receiv

ed?

Assign

Resources for

unloading

Unload /

Palletize

Post Goods

Receipt

Labellin

g

require

d?

Proof of

Delivery

(ASN)

Refer to QM

Execute Inspection

for Goods Receipt

of Inbound Material

(ES)

Refer to

Internal

Stock

Movements

Print orReprint

Label

Discrepancyreport

Refer to QM Execute

Inspection Prior to

Goods Receipt (ES)

Yes

No

Yes

No

Yes

No

Delivery

confirmation

(e.g. EDI)

to supplier

*POD

L3 - Standard Inbound ProcessProcess Flow


25/83


Materials

Handling

Refer to

Production

Execution(ES)

Refer to QM

Sampling /

Inspection Lot(ES)

Goods

produced

Inspection

Lot

Customer development front end to perform GR data

capture, print labels and post goods receipt

Post Goods

Receipt

Labellin

g

require

d?

Print or

reprintLabels

Goods Receipt

Document

Refer to

Internal

Stock

Movements

Yes

No

L3 - Inbound Production DeclarationProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Inbound


26/83


MaterialsHandling

Refer to

Procure to

Pay (ES)

Refer to

Plan

Resources

Refer to

Procure to

Pay

Refer to

Customer

Services

Inbound

Notification or

PO

Goods

Arrive

Administrative

Control

Goodsto be

received

?

Quality Pre-

check

Assign

Resources for

unloading

UnloadPost Goods

Receipt

Proof of

Delivery End

Goodsto be

received

?

L3 - Inbound Expensed itemsProcess Flow

No No

Yes

Yes

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Inbound


27/83


Materials

Handling

L3 - Inbound CAPEX - Trade AssetsProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Inbound

Administrative

Control

Goods

Arrive

Refer to

Plan

Resource

Inbound Vendor

Shipping Document

or PO

Goods

to be

received

?

Refer to

Procure to

Pay

Refer to

Customer

Services

Refer to

Internal

StockMovement

Refer to

Returns &

Refusals

Refer to

Asset

Creation

Refer to

Procure to

Pay (ES)

Proof of

Delivery

Unload

Perform

Quality

Check

Post Goods

Receipt

(inventory IM

blocked)

Assign

Resources

for

unloading

Goods

to be

received

?

Asset

Tagging

required

?

QC

Check

OK?

Post Goods

Receipt (WM

released fixed

asset)

Print or

Reprint Label

(local)

Maintain Trade Asset

Equipment Record

End

No

Yes

No

No

Yes

Yes

YesNo

Maintain Trade Asset

Equipment Record


28/83


L3 - Outbound

Master Data

Plan


Stock

Management

Internal

Stock

Movements

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Outbound


29/83


30/83


Proof of DeliveryProcessing

Load

Goods Issue

Ship

Staging

L3 - Standard Outbound ProcessDecomposition

Goods are assembled, labelled and sequenced forloading

Goods are physically loaded into vehicles ready to beshipped

Removal from stock is confirmed in the system andshipping documents printed / sent electronically

Proof of Delivery (POD) isreceived and processed

Truck is authorized to leave site, alldocuments have been issued

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Outbound

IM

WM


31/83


L3 - Standard Outbound ProcessVariants

The Standard Outbound Process covers the common rules and

requirements, applicable for all Outbound processes

Plan

ResourcesInbound Standard Outbound Process

Stock

Management

InternalStock

Movements

Outbound Production Consumption

Outbound Supplier Returns

Outbound Trade Assets

Other Outboundvariants requireseparate processdecompositions tocover specific cases

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Outbound


32/83


Materials

Handling

Goods Moved

(based on

outbound delivery)

ASN

(Dispatch

Advice)

Goods

issued

Goods

shipped

Goods

shipped

POD not

OK

Refer to InternalStock Movements

Retrieval

Refer to

Billing (ES)End

Refer to

Billing (ES)

Refer to Receive

Claims, Returns

and Refusals (ES)

Ship (Truck

leaves site)

ASN

Require

d?

Invoic

e with

Goods

?

Was

there

Pre-

invoice?

POD

OK?

Proof of

Delivery

Processing

Goods

IssueStaging Load

Yes

No No

No

Yes Yes

No

Yes

L3 - Standard Outbound ProcessProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Outbound

This process does not apply for Direct delivery outbound processes since SAPoutbound is performed after Customer deliveries


33/83


Materials

Handling

Customer development front end to perform GI data

capture for SU managed materials

Refer to

Produce

Goods (ES)

Goods

moved

Goods

Issued

Goods

Issue

Refer to Internal

Stock Movement

Production Staging

L3 - Outbound Production ConsumptionProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Outbound


34/83


Materials

Handling

Staging

Refer to Internal

Stock Movement

Retrieval

Goods

moved

ASN

Require

d?

Refer to Manage

Claims &

Returns (ES)

ASN

(Dispatch

Advice)

Materials

Returned to

Supplier

LoadShip (Truck

leaves site)

Goods

Issue

L3 - Outbound Supplier ReturnsProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Outbound

No

Yes

St k


35/83


Materials

Handling

L3 - Outbound Trade AssetsProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Outbound

Good IssueStaging

Refer To

Customer Service

Enter Order (TradeAsset)

Outbound

Delivery

PODOK?

Load Ship (Truckleaves site)

PODProcessing

Refer to

Internal

StockMovement

Refer to Receive

Claims, Returns

and Refusals (ES)

POD not

OK

Goods

shipped

Maintain

Trade

Equipment

Records

End

No

Yes

St k


36/83


L3 - Internal Stock Movements

Master Data

Plan


Stock

Management

Internal

Stock

Movements

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.

Internal Stock Movement


37/83


L3 - Internal Stock Movements (ISM)Content

Overview ISM General, Putaway & Crossdocking

ISM General, Putaway

ISM Cross - Docking

ISM Retrieval

ISM Picking Area Replenishment

ISM Production Staging

ISM Vehicle Direct Delivery

Stock


38/83


Storage Area

Rack Storage

Block Storage

L3 - Internal Stock Movement (ISM)Overview

Outbound To

customer

Returns

to supplier

PSA

ProductionSupply

Area

Production

Shipping

Area

Case

Picking

Receiving

Area

Inbound from

supplier

Customer

returns

Internal

Cross-Dock

Put

away

Replen-

ishment

Retrieval

Staging

Inboundfrom

Production

Production Consumption

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.


Stock


39/83


Materials

Handling

Create Internal

Movement

Instruction

Start

Request for

putaway

movement

EndMovement Slip

(putaway slip)

Goods

Moved

Assign

Resources

Perform

Movement

L3 - ISM General, PutawayProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.


SStock


40/83


Materials

Handling

Create

Replenishment

Instruction

Assign

Resources

Start

Request for

replenishment

Perform

Movement

Replenishment

List

Goods Moved to Case

Picking area End

Outbound

Deliveries to be

prepared

L3 -ISM Picking Area ReplenishmentProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.


L3 ISM P d ti St iStock


41/83


Materials

Handling

Create ProductionStaging Instruction

AssignResources

Released

Process

order(s)

Start

End

Stock level in

the PSA

Movement

Slip

Goods Moved to

the PSA

PerformMovement

L3 - ISM Production StagingProcess Flow

Pl.

Res.Inb. Outb.

Stock

Mgt

Int. Sto

Mov.


Stock


42/83


L3 - Stock Management

Master Data

Plan


Stock

Management

Internal

Stock

Movements

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.


L3 St k M tStock


43/83


L3 - Stock ManagementContent

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.



Stock Adjustment

Inventory Counting

Logistical Status Change

L3 P d t T f tiStock


44/83


Materials

Handling

L3 - Product TransformationProcess Flow

Perform System

Transformation

Refer to

Plan

Resources

Move

require

d?

Refer to

Internal

Stock

Movements

Refer to Internal

Stock Movements

Manufacturing PT

Product

Transformation

Requirement

Stock

Updated

Use

PP-PI

?

Move

require

d?

Physical

Manipulatio

n required?

Select stock to be

transformed

Decide where to perform

transformation

Perform Physical

Transformation

Print

Labels *

End

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.


Yes

No

Yes

No No

Yes

Yes

No

* Print Labels may not be necessary with small label

Ex. Coffee Downgrading

L3 St k Adj t tStock


45/83


Materials

Handling

Perform

Stock

Adjustment

Refer to

Plan

Resources

Request for

Stock

Adjustment

Relabe

l?

Start

End

Stock

Updated

Print or

Reprint

Label

Yes

No

L3 - Stock AdjustmentProcess Flow

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.

Stock Adjustment

L3 I t C tiStock


46/83


Materials

Handling

Generate

Inventory

Document

Assign

Resources

Refer to

Plan

Resources

Request for

Inventory count,

planned or ad hoc

Recou

nt?

Start

End

Enter

Count

Results

Analyze

Inventory

Results

Count

sheets

Validate Results

& Clear

Differences

Generate

Inventory

Recount

Count

sheets

Adjusted

Inventory

Includes physical counting

as well system update

L3 - Inventory CountingProcess Flow

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.

Inventory Counting

Yes

No

L3 L i ti l St t ChStock

M t


47/83


Materials

Handling

L3 - Logistical Status ChangeProcess Flow

Perform Logistical

Status Change

Refer toPlan

Resources

Request for

Logistical Status

Change

(Un)hol

d

storage

bin?

Logistical Status

Change Effected

(Un)hold

Storage

unit?

End

Yes

No

Yes

No

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.

Logistical Status Change

Stock

M t


48/83


L3 - Plan Resources

Master Data

Plan


Stock

Management

Internal

Stock

Movements

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.

Plan Resources

L3 Plan Resources Process

Stock

Mgt


49/83


Materials

Handling

Analyze Input,

Scenarios andAvailabilities

Receive Inputs(Requirements)

Refer to

Customer Service,

P2P, QM,

Manufacturing,Transport

Activity and

Movement Plan

Outboun

d

delivery

group/split

required

?

Refer to

MH Inbound

& Outbound

Refer to

Inbound,

Outbound,

Internal Stock

Movements,

Stock Management

Schedule

Resourcesand Activities

Group/Split

OutboundDeliveries

L3 - Plan Resources ProcessProcess Flow

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.

Plan Resources

Yes

No

Master Data Stock

Mgt


50/83


L3 - Master Data

Master Data

Plan


Stock

Management

Internal

Stock

Movements

Master Data

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.

L3 Master DataMaster Data Stock

Mgt


51/83


L3 - Master DataObjectives

Main purpose is to ensure the correctness andconsistency of all master data information within thesystem for reliable business transactions

To achieve that, master data relevant to inventorycontrol and warehouse management has to becreated and maintained

Material master information relevant to Warehouse

Warehouse storage bin definitions

Material staging to productionBatch search strategies (for retrieval)

Shipping output conditions

Master Data

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.

L3 Master DataMaster Data Stock

Mgt


52/83


MaterialsHandling

Create and Maintain

Master Data

Requirement to

Create or

Maintain Master

Data

Start

End

Master Data

Created or

Maintained

L3 - Master DataProcess Flow

Master Data

Pl.

Res.Inb. Outb.

Mgt

Int. Sto

Mov.


53/83


MH End User Roles

End User Roles


54/83


Terminology

Changes from V1.0 to V1.5

Jobs

MH End User Roles

End User Roles

Overview


55/83


OverviewTerminology

Transaction

Roles

Includes a logical grouping of transactions and tasksperformed in SAP and other GLOBE Applications

Determines the access / security a user is allocated

Defined globally then copied to create market roles

Jobs

General employee classification of tasks, functions, etc.

A Job is an aggregate of one or more roles

Defined in a global catalog in SAP HR

Position

A particular occurrence of this job in a particularorganization unit

Defined locally in SAP HR

200+

14

~30,000

14

Changes from V 1 0 to V 1 5


56/83


Changes from V.1.0 to V.1.5

Version 1.0

Material Handling Display

Warehouse Worker

Warehouse Clerk

Warehouse Manager

Version 1.5

MH-0374 Material Handling Display

MH-0406 Stock Movement Confirmation

MH-0404 Stock Goods Issue & Receipt

MH-0410 Manufacturing MH Execution

MH-0407 Inventory Counting

MH-0411 Stock Push DispatchMH-0403 Stock Movement Creation &

Confirmation

MH-0405 Stock Management

MH-0536 Stock Adjustment

MH-0402 Clear IM Inventory Differences

MH-0408 Warehouse Master Data Clerk

MH-0386 Load Planner

MH-0387 Load Planning Customizer

MH-0412 Warehouse InterfaceAdministration

End User Roles

Materials Handling Jobs


57/83


Materials Handling Jobs

Distribution Group Manager

Distribution Manager

Transport Manager

Warehouse Supervisor

Transport Supervisor

Warehouse ControllerTransport Controller

Warehouse Specialist

Transport Specialist

Stock Controller

Distribution Administrative AssistantWarehouse Operator

Distribution / Warehouse Assistant

Transport Driver

Other Jobs


58/83


Other Jobs

Audit ManagerMH-0374 Material Handling Display (optional)

AuditorMH-0374 Material Handling Display (optional)

Manufacturing SupervisorMH-0374 Material Handling Display (optional)

MH-0410 Manufacturing MH Execution (optional)

Production OperatorMH-0374 Material Handling Display (optional)11

MH-0410 Manufacturing MH Execution


59/83


Materials Handling Fulfilment

Process Purpose and Applicability

Process Flow

ScenariosProcess Business Rules

MH End to End

Process Purpose & Applicability


60/83


Process Purpose & ApplicabilityWhy this new E2E in V 1.5 ?

Other E2E: focus on integration

MH E2E: focus on pure WM functionality

Movements within the warehouse

Concurrent execution of tasksPutaway algorithms for different storage types

Replenishment algorithms - case picking areaorganization

Retrieval algorithms for different storage types

RF usability

Exception management

MH End to End



61/83


Process Purpose & ApplicabilityScenarios

The two E2E-scenarios describe the processes morespecific to

Distribution center

Factory warehouse

Factory warehouse scenario:Integrated in Planning to Produce Standard E2E

MH End to End



62/83


Process Purpose & ApplicabilityDescription of the End-to-End Process

Starts with the receiving of goods into a warehouse: receipts from suppliers or other Nestl companies

returns from customers

inbound from production

It describes all possible movements of goods inside awarehouse (including inventory counting)

Ends with the goods issue

to customers

to suppliers (for returns)

to production (consumption of raw and packaging material)

MH End to End



63/83


Process Purpose & ApplicabilityKey Decisions

1. Full Batch Traceability2. Pallet Handling (Storage Unit management, not

HUM-Handling Storage Management)

3. Inbound Delivery Process (through Purchase Orderinstead of inbound delivery)

4. RF-Radio Frequency Functionality

5. Inventory vs. Warehouse Management - MaterialsHandling Key Design Principles (use WM)

MH End to End



64/83


Process Purpose & ApplicabilityAssumptions

The triggers are already created (creation not part ofE2E)

The materials involved are defined for the respectivewarehouses

MH End to End



65/83


Process Purpose & ApplicabilityTriggers

Inbound TriggersPurchase order

Return Delivery (inbound from customers)

Process Order (ready for production declaration)

Outbound Triggers:

Outbound Delivery Standard

Purchase Order (Returns to suppliers)

Process Order (ready for release)

Inventory Counting Trigger:

Need for Inventory Counting

MH End to End

Process Flow


66/83


Process FlowOverview

Factory

QualityInspection

StockAdjustments

InternalStockMovements

Outbound

Outbound toManufacturing

Inbound

Inbound from

Production

DC

QualityInspection

StockAdj.

InternalMoves

= SAP WarehouseManagement includingRadio frequency (RF)

OutboundInbound

Customer

Customer

Production

Supplier Supplier

Customer returns

Supplier returns Supplier returns

Customer returns

MH End to End

Process Flow


67/83


Process FlowInternal Stock Movements

Storage Area

Rack Storage

Block Storage

Outbound To

customer

Returns

to supplier

PSA

Production

Supply

Area

Production

Shipping

Area

Case

Picking

Receiving

Area

Inbound from

supplier

Customer

returns

Internal

Cross-Dock

Put

away

Replen-

ishment

Retrieval

Staging

Inboundfrom

Production

Production Consumption

MH End to End


68/83

Scenario 1 Distribution Center


69/83


Scenario 1 Distribution CenterProcess flow

E2E Planning to Produce StandardPurchase Order / ASN (supplier or factory)

Inbound Standard

Internal Stock Movement (ISM) Putaway

Product TransformationReplenishment of picking face

Outbound Delivery Standard

ISM Retrieval (crossdock)

Outbound Standard (goods issue)

E2E Order to Cash Standard

MH End to End

Scenario 1 Distribution Center


70/83


S CIndividual steps (1 / 2)

Inbound of Finish Goods from factory (including early shipment)and supplier (e.g. trade goods)

Putaway

Product transformation

using MH transactions (no Process Order)

using Process Order Replenishment of fixed bin picking face

batch execution

dynamic execution

Retrieval

pallet case

each

2-step picking

MH End to End


71/83

Scenario 2 Factory Warehouse


72/83


E2E Planning to Produce Standard

Purchase Order (converted from purchase requisition)

Inbound Standard


Process Order (ready for release)Release Process Order for Production

ISM Production Staging

Outbound Production Consumption

Process Order (ready for production declaration)

Inbound Production Declaration


MH End to End

yProcess flow


73/83


74/83

Process Business Rules (1 / 2)


75/83


( )

SAP-WM and storage unit (SU) management is used

Each SU is labeled and identified with its SSCC

Radio Frequency (RF) is used wherever possible

When there is a problem with the early ship stock, the

producing factory is responsible to change the"Inspection End Date" in the inspection lot and the"Available From" date in the batch record for the stockin Quality Inspection. Quality management uses theinspection end date, the available from date is used

by APO for planning

MH End to End

Process Business Rules (2 / 2)


76/83


( )

Only selected personnel will be given authorization tomake a status change on "Quality Inspection" and"Blocked" stock

Ability to view the status and details of inspection lotsmust be available at all times

All movements of stock must be documented andhave full traceability

MH End to End


77/83


MH High Level Change Impacts

Change Impact

Key Changes, Benefits and Implications


78/83


y g

Materials Handling will introduce 4-7 key changes tothe way we manage our business:

Pallet labeling for all non bulk

materialsThis means

Adherence to Pallet labeling

standard for Raw Material, Packing

Material, Semi Finished Product and

Finished Products.

System Based Batch Traceability This meansRaw Materials, Packing Materials,

Semi Finished Products & Finished

Products includes Co-packers and

Sub contractors Per NQS policy.

Change in skill set of employees This meansEmpowerment to shop floor

Real time data capture at source This means

Traceability of stock on corporate

level,Stock accuracy

Less errors and corrections

Reduced stock levels

Change Impact

Key Changes, Benefits and Implications


79/83


Materials Handling will introduce 4-7 key changes tothe way we manage our business:

This means

Fully integrated solution for MH This meansStrong reliance on master data

integrity clearer definition of MH

corporate view on inventory

Warehouse Management (WM)

organizes work in the warehouse

System control at a local level

Better organized warehouses

More time for management

System Stock Rotation This means

FEFO

Better Customer Service

Capacity increase

Cost reduction

Change Impact

What else will change?


80/83


Responsibility / Accountability Changes

Warehouse Clerk creates internal movementinstruction but the system advises which pallet andwhere to place it. By exception the worker can chose

different locations

Outbound deliveries are created by- Customer Service for dispatch to customers

- DSP for Planned dispatch to other Nestl sites- MH when load planning or push dispatch is used

Change Impact



81/83


Workload Shift and Communication

More interaction between Warehouse, QM, Planningand Procure to Pay

Efficiency of Out/In bound process will improve i.e.more accurate, improved visibility of vendor

performance.

The quality monitoring of arriving goods is sharedbetween Warehouse and Quality personnel.

Traceability will be assured

Change to SU-managed Warehouse will mean aninitial increase in workload

Change Impact



82/83


New Ways of Working / Skills Requirements

Knowledge of QM data capture procedures,Resource planning and Analysis

Knowledge of impacts of goods receipt toWarehouse, inventory and stock valuation

Experience with using bar code scanners and RFequipment

To adopt best practice, to exchange information(ASN, proof of delivery, etc.) with business partners

using EDICapability to carry out error search and correction of

wrong WM postings

Change Impact

MH - Key Benefits


83/83

Greater Efficiency Inbound and Outbound (ASN, RF)

Traceability

Stock Accuracy

Real Time movement visibility

Guidance for the UserDecision Making Capability

Change Impact

239003122-scm-e2e-materials-handling-fulfilment.pdf

Documents