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Warehouse and DC Management (Lean WM) SAP Best Practices for Retail ( France )

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Warehouse and DC Management (Lean WM) SAP Best Practices for Retail ( France ) . SAP Best Practices. Scenario Overview 1 /2. Purpose and Benefits:. Purpose

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scenario overview 1 2
Scenario Overview 1/2

Purpose and Benefits:

  • Purpose
    • This scenario describes the processing of merchandise in the distribution center with inventory management done at the level of storage location – Lean Warehouse Management.
  • Benefits
    • Since storage procedures depend on space limitations, organization and the type of merchandise being stored, this scenario should be seen as one example of an implementation. However, this example can be easily adjusted to fit the warehouse of SAP customer.
  • Key process flows covered
    • Goods Receipt Processing
    • Return Deliveries
    • GoodsIssueProcessing
    • WarehousePhysicalInventory
    • Tools and Workbenches
scenario overview 2 2
Scenario Overview 2/2

SAPApplications Required:

  • Required
    • SAP EHP3 for SAP ERP 6.0
  • Company roles involved in process flows
    • Retail Warehouse Clerk
    • Retail Sales Person
    • Retail Warehouse Manager
process flow diagram 1 3 goods receipt processing
Process Flow Diagram (1/3) Goods Receipt Processing

Retail Warehouse Clerk

Create Purchase Order

Create Inbound Delivery

Appointment Planning (Optional)

Posting Rough Goods Receipt

Entering Actual Appointment (Optional)

Retail Store Manager

Goods Receipt with Reference to Rough Goods Receipt

process flow diagram 2 3 r eturn deliveries optional
Process Flow Diagram (2/3) Return Deliveries (Optional)

Retail Warehouse Clerk

Search of Article Document of the Goods Receipt

Create Return Delivery

Output of Article Document as Goods Issue Slip

process flow diagram 3 3 goods issue processing
Process Flow Diagram (3/3)Goods Issue Processing

Retail Warehouse Clerk

Create OutboundDelivery

Create Transfer Order as Picking Document

Process Picking

Post Goods Issue

Capacity-driven Automatic Generation of Wave Picks

Variant: Mass Processing of Outbound Deliveries

Alternative 1

Create Outbound Delivery with Planned Picking Time

Confirm Transfer Orders by Multiple Processing

Create Transfer Orders by Multiple Processing

Create Wave Picks

Create Wave Pick manually

Alternative 2

Subsequent Delivery Split

Multiple Processing of Goods Issue

document flow in the warehouse

Outb. Del.


Inb. Delivery

Rough GR

Document Flow in the Warehouse

L e a n - W M






There is no stock keeping in Lean-WM, but just recording

of movements usingtransfer orders.






inventory management im vs wm
Inventory Management - IM vs. WM

Inventory Management on article level

Fixed storage bin can be maintained in the article master (text field)



Storage Location

No additional level of stock keeping below IM.

Warehouse number and type are just used for the recording of stock movements using the transfer order, but no stock posting is triggered when moving merchandise at this level.

Whose number

Storage type

L e a n - W M

using lean wm
Using Lean WM

When you implement Lean WM, inventory management takes place solely at storage location level. The system does not update the stock data at storage bin level using the quants like the Warehouse-Management-System (WMS) .

You use Lean WM solely for processing goods receipts and goods issues. Using Lean WM, you process the warehouse movements in basically the same way as if using the Warehouse Management System: you work with deliveries, and you create transfer orders for these deliveries. These transfer orders serve as pick lists.

The use of transfer orders in Lean WM provides the following advantages:

  • You can reprint transfer orders at any time.
  • You can split transfer orders and thus distribute the workload better among the staff in your warehouse.
  • You can use mass processing functions based on the transfer order (for example wave picks).
mass processing of deliveries

Manual creation in the outbound delivery monitor using selection by:

  • Shipping point
  • Picking date
  • Route, carrier ...
  • Free selection








  • Automatic generation using selection by:
  • Picking date / time
  • Additional filter by several criteria
  • (e.g. route, shipping point, ship-to-party ...)

Group of Outbound Deliveries


Wave Pick

  • Considering capacity restrictions:
  • Weight, volume
  • Maximum items on the picking list
  • Working time
  • ...
Mass Processing of Deliveries
mass processing of deliveries11

Collective Follow-On-Processing:

  • Create transfer order
  • Confirm transfer order
  • Post goods issue








Group of Outbound Deliveries


Wave Pick

Mass Processing of Deliveries
rough workload estimate

Planned Goods Issue






Rough Workload Estimate
  • Calculation of
  • workload using:
  • Logistics Load Category
  • Unit of Measure
  • Whse no. / storage type
  • Warehouse process
  • Estimated Workload in:
  • Quantity
  • Weight
  • Volume
  • Execution time
  • Information on:
  • needed manpower
  • needed transport
  • capacity

Diagram Connection



Hardcopy / Document

External to SAP

Financial Actuals

Business Activity / Event

Budget Planning

Unit Process

Manual Process

Process Reference

Existing Version / Data

Sub-Process Reference

System Pass/Fail Decision

Process Decision