A custom-designed SAP warehouse system

A custom-designed SAP warehouse system: SEAS-NVE decided to build a new 1,500 m2 warehouse for spare parts and consumables as part of a large strategy process. A system for storage location management was to be implemented which could support a more efficient picking process

In 2009, SEAS-NVE decided to build a new 1,500 m2 warehouse for spare parts and consumables as part of a large strategy process. In this connection, a system for storage location management was to be implemented that could support a more efficient picking process. It was also a requirement that the system was able to support bar code technology.

The picking process at the warehouse has been optimised significantly as a result of our improvement initiatives.

Søren Sørensen, Warehouse Operative, SEAS-NVE

Furthermore, SEAS-NVE had a need for creating an overview of more than 2,000 cable reels which are circulating in the supply chain and which represent a great value. To support the system for the new warehouse, it was decided to use the SAP warehouse management module. The vision for the new warehouse was that the operation should be performed by use of hand-held terminals and bar code scanning only.

Eight critical processes

The process involved a clarifying workshop covering eight critical processes all to be executed from the mobile equipment:

  • Picking of goods for sales orders
  • Unplanned delivery from stock
  • Receipt of purchased goods
  • Stock replenishment of service trucks and external stocks
  • Unplanned goods movements
  • Receipt and dispatch of returned goods
  • Planned stocktaking
  • Unplanned stocktaking

In addition came a need for being able to register and manage all the company’s approx. 2,000 cable reels in the warehouse system.

Based on the eight critical processes, Implement developed a suggestion for a possible solution, which ensured that the necessary processes could be executed by using mobile equipment while the standard elements of SAP were also used optimally. By using the standard elements of SAP to the largest degree possible, it was possible to limit the development costs, and, concurrently, the company achieved compatibility with future SAP developments.

The suggested solutions were visualised for the project group through drawings of transactions as displayed by the hand-held scanners, and, thus, it was illustrated how the warehouse staff was to operate the new warehouse system on the terminals in the future.

Demands for close project management and follow-up

With a project duration of merely three months, the project placed heavy demands for close project management and follow-up. It was important to identify and re-plan in case deviations from the plan occurred. This was realised by means of weekly whiteboard meetings, which ensured involvement, progress and visibility for all project participants.

The project also included:

  • Solution design and implementation of the SAP warehouse management module (WM)
  • Programming of new functionality to the hand-held terminals
  • Design and implementation of a scanner solution for handling of – and as an index of – SEAS-NVE 2,000 cable reels
  • Physical layout of the new warehouse and division of the warehouse into picking zones
  • Design and set-up of label printout
  • Purchase and installation of wireless network, hand-held terminals and label printers

The new working day at the warehouse

Now, all employees at the warehouse possess a hand-held terminal from which all goods movements can be initiated, executed and confirmed.

Goods receipt and stock placement

The goods receipt begins in the handheld terminal. The warehouse operative registers the received quantity and packing method, and, subsequently, the warehouse system suggests a storage location. If the warehouse operative wishes to change the storage location in the warehouse, it is possible to choose this on the hand-held terminal.

The system always attempts to suggest the most optimal storage location based on the current stock situation. This is done in order to minimise the space taken up, to minimise the distance to the putaway and picking location of the item and based on the expected demand for the item.

All goods movements are confirmed by scanning with a bar code scanner integrated in the terminal. In this way, operating errors are avoided, and it is ensured that the system is always updated with correct information.

Unplanned goods movements

Through the hand-held transactions, the warehouse operatives can quickly locate a given item in the warehouse. It is possible to move these items around and distribute them to projects directly from the hand-held terminal without the warehouse operator needing to involve the warehouse office.

In the issue process, the system controls the item’s availability, thus, ensuring that items promised to another party do not leave the warehouse. If stock differences are detected, it is possible for the warehouse operative to correct these from the hand-held terminal in order for the stock in SAP to reflect the reality to the best possible extent.

Picking of deliveries

The process for picking deliveries is based on the transport planning. As soon as this is performed, it is possible to create picking lists. These are automatically split up into two lists: One for goods which are to be picked indoor and another one for large goods to be picked outdoor with truck. In this way, the picking task is automatically split between the employees and it is possible to work in parallel in the two areas.

Electronic index of cable reels

Each time a cable reel is received at the warehouse, it is registered in the electronic index of cable reels. The index is updated each time changes take place in SAP in relation to the cable reel. All goods movements in relation to the reels are registered by scanning of a unique reel number. Thus, it is possible to establish the location of each real out of a stock of approx. 600 reels. The solution is based on SAP standard.

Benefits in highlight

  • Extremely short implementation period
  • A solution based on SAP standard
  • No re-work – no changes to solution after go-live
  • Achievement of business effects, e.g.:

Increased control of stock placement – less time spent on searching for goods:

  • High picking accuracy – picking errors are basically eliminated
  • Increased control of processes and goods leaving the warehouse – no third-party self-service and registration of all goods movements

Great cooperation and the consultants’ high specialist competence made it possible to complete the project at the stipulated time and with the right solution.

Per Sørensen, Purchasing and Logistics Manager, SEAS-NVE

Lars Smith Christoffersen
Lars Smith Christoffersen
+45 4138 0037

Featured clients

Royal Unibrew
Among the best with SAP Global ATP
Royal Unibrew wants to be among the very best. Therefore, they have chosen to do something about the problems that many companies know all too well: failure to observe the promised date of delivery to the customers, unfavourable times of delivery for highly prioritised customers, urgent orders, large amount of capital employed and exceeding the expiry date of goods in stock. The solution to the problems is Global ATP in SAP.
Grundfos - SAP® APO
Propelled to the next level of planning with SAP® APO
Infrastructure providers around the world count on pumps from Grundfos Holdings A/S, known for its leading-edge technology and high quality. Deliveries are quicker and more reliable than ever now that Grundfos uses the SAP® Advanced Planning & Optimization (SAP APO) component for lining up all the right supplies to meet demand.