Futureproofing our Business with a Strategic Move to SAP Extended Warehouse Management

Transcription

1 Futureproofing our Business with a Strategic Move to SAP Extended Warehouse Management

2 Contents 1. The Koehler Paper Group 2. Short explanation of Extended Warehouse Management 3. Our strategic decision to replace our current Warehouse Management to SAP Extended Warehouse Management 4. The pilot project 5. Business impact and benefits realized as a result of SAP EWM project 6. IT experiences with the new system 7. Next steps in the Koehler Paper Group / Kürzel / 2

3 The Koehler Paper Group Katz GmbH & Co. KG Weisenbach Papierfabrik August Koehler SE Oberkirch Koehler Greiz GmbH & Co. KG Greiz Koehler Kehl GmbH Kehl / Kürzel / 3

4 The Koehler Paper Group The Koehler Group was founded in 1807 Eight generation family owned company More than 1,800 employees In total 7 paper machines and 1 board machine Divisions: Thermal paper Carbonless paper FineTech paper and ColorTech paper Decor paper Coasters / Kürzel / 4

5 Short explanation of Extended Warehouse Management (EWM) EWM is the new Warehouse Management solution from SAP It replaces the older Warehouse Management (WM) It offers new or advanced features compared to the WM e.g. creation of warehouse orders and tasks radio frequency (scanner) functions There are two installation options ERP EWM EWM ERP Standalone EWM Embedded EWM / Kürzel / 5

6 Our strategic decision to to replace our current Warehouse Management to SAP Extended Warehouse Management 2025: SAP technology S/4 HANA moves closer Current status in the Koehler Group: All four production plants use the Warehouse Management The classic system WM will be (presumably) deactivated at the end of 2025 Strategic decision: Koehler needs to be prepared for S/4 HANA The system EWM will be introduced in all plants EWM / Kürzel / 6

7 Our strategic decision to replace our current Warehouse Management to SAP Extended Warehouse Management Autonomous of the SAP ERP Current status in the Koehler Group: Only a short time window is available for downtimes of the SAP systems Need a chance to update the systems Strategic decision: ERP EWM EWM should work independently from ERP system The standalone installation was implemented already for the pilot plant / Kürzel / 7

8 The pilot project Project name: Beaver Start: 1 st October 2017 IT Go Live: 1 st May 2018 New location in Willstätt, Germany The Koehler Group is responsible for the IT Beaver is well suited as pilot project Complete new plant Manageable processes No migration required / Kürzel / 8

9 The pilot project Characteristics Lower quantities and sizes than usual in the Koehler Group Multiple Handling Units (HU s) Make to stock - no Make to order What was the central focus? Are there any advantages or disadvantages of EWM? How does the integration work with the ERP release? Are there any restrictions in the processes and functionalities? / Kürzel / 9

10 Business impact and benefits realized as a result of SAP EWM project There are now two separate systems: ERP and EWM Logistic and commercial services are clearly separated now Commercial employee Works on ERP Knows the quantity of the material management (product level) No HU s are visible in the ERP system Known transactions in most cases unusable Logistics employee Works on EWM Knows the exact quantity of each HU and the corresponding storage place Works the most time with mobile devices / Kürzel / 10

11 Business impact and benefits realized as a result of SAP EWM project ERP Customer Order Outbound Delivery EWM Outbound Delivery Request Outbound Delivery Order Warehouse Processing Outbound Delivery During the entire EWM-process, the ERP delivery is blocked for changes There are many new documents with different number ranges, which confuse the employees / Kürzel / 11

12 Business impact and benefits realized as a result of SAP EWM project Master data of the product have to be created and maintained two times: 1 st time (ERP): master data of the material (CIF) 2 nd time (EWM): warehouse master data special for logistic SAP offers a large number of transactions The core transaction is the warehouse management monitor Also a new mobile device functionality is included Mobile device software was modified with Mobisys More flexible in the user interface (size, color, verification of fields, buttons) Display orientation fits to the mobile device Positive feedback from the employees / Kürzel / 12

13 Business impact and benefits realized as a result of SAP EWM project Example of mobile device screens / Kürzel / 13

14 IT experiences with the new system New know-how was necessary in the IT Especially the communication between the systems ERP, EWM, MES* The old WM was mainly driven by own programming The technology of the interface of the standalone EWM is comparable to SAP APO* Data are transferred in two ways: CIF: Master data - by a daily job qrfc: Transaction data - by creation or change The interface is based on inbound / outbound deliveries *MES = Manufacturing Execution System *APO = Advanced Planning and Optimizing / Kürzel / 14

15 IT experiences with the new system Communication with the MES: Production order feedback Standalone Systems MM of HU feedback MM of HU feedback ERP EWM MES / Kürzel / 15

16 IT experiences with the new system Inbound Delivery Goods receipt of a purchase order Goods receipt of a production order Processes: 1. Purchase Order / Production Order 2. Inbound Delivery 3. Goods receipt of each HU 4. Transfer to a storage location We work without a storage strategy Employees need to confirm the storage location (mobile device) / Kürzel / 16

17 IT experiences with the new system Outbound Delivery Process: 1. Customer Order 2. Outbound Delivery 3. Warehouse Process 4. Goods Issue Posting We use the FIFO strategy Mixed with a quantity based strategy / Kürzel / 17

18 IT experiences with the new system Outbound Delivery Warehouse Process (SAP standard): Outbound Delivery Order Wave Warehouse Tasks Warehouse Order Logistican starts picking Outbound Delivery / Kürzel / 18

19 IT experiences with the new system Koehler has the current ERP version ECC 6.0 That leads to some restrictions in the functionalities 1. Base unit Customer order allows alternative unit of measurements Problem is the conversion factor on ERP side 1 palette = 24 rolls Solution: Only base units are allowed in the customer order / Kürzel / 19

20 IT experiences with the new system 2. Picking info Problem: when there are more than one position in the customer order the ERP system throws an error. The correct delivery feedback is not possible. EWM 1. product 2. product 3. product picked ERP 1. product 2. product 3. product Solution: Own coding was necessary / Kürzel / 20

21 IT experiences with the new system 3. Product classification The classification of the product (class 001) will not be sent to the EWM automatically ERP CL EWM Solution: Dummy change in the classification / Kürzel / 21

22 IT experiences with the new system Most new programming on EWM side: Communication with MES Adjustment on both sides Weight calculation Gross weight / net weight / tare SAP standard not equal to Koehler standard Processes in the warehouse Repacking Re-storage after picking / Kürzel / 22

23 Next steps in the Koehler Paper Group First step in our S/4 HANA strategy is already done Now we know the special details and requirements of EWM Knowledge is available for the next projects In the next years we will roll out EWM to all our plants / Kürzel / 23

24 Futureproofing our Business with a Strategic Move to SAP Extended Warehouse Management International SAP Conference for Forest Products, Paper and Packaging October, 2018 Prague, Czech Republic Irena Männle Koehler Paper Group / Kürzel / 24