| Status | |
| Owner | |
| Stakeholders | The persons consulted or otherwise involved in making this decision. Type @ to mention people by name |
Issue
Syensqo currently operates on the SAP ECC platform, utilizing the SAP Warehouse Management (WM) solution for its logistics and inventory management processes. SAP WM is serving as the backbone of their warehouse operations for packed items. This includes handling tasks such as goods receipt, putaway, picking, and inventory tracking.
However, looking at the future (transition to SAP S/4HANA), SAP WM becomes obsolete and new possibilities emerge.
Recommendation
With implementing basic SAP Extended Warehouse Management (Option B), Syensqo will have a future proof warehouse management solution in place.
Background & Context
Below an overview of the SAP Warehouse Management Systems (WMS) are displayed:
Acronym / Term | System | Definition |
SAP Warehouse Management (WM) | ECC | This is the Warehouse Management solution in ECC which is currently used by Syensqo. |
SAP Stock Room Management | S/4 HANA | This is the new name of the -older- SAP WM solution for S/4HANA. |
SAP Extended Warehouse Management (EWM) | S/4 HANA | This is the new Warehouse Management Solution in S/4 HANA. |
Not all warehouses at Syensqo are required to use a Warehouse Management System. This will be decided per warehouse based on the business rules identified in this document. Warehouses which are not using a Warehouse Management Solution will manage stock at Inventory Management level:
Acronym / Term | System | Definition |
SAP Inventory Management (IM) | ECC and S/4 HANA | In general this means maintaining stock levels of different materials on both quantity and value level. There is no additional warehouse management layer to manage stock at specific location management and to manage warehouse activities in more detail. |
A additional comparison between Warehouse Management Systems and Inventory Management is shown:
| Criteria | Inventory Management (IM) | Warehouse Management Systems |
|---|---|---|
| General | Focuses on overseeing and controlling a company’s stocked goods. | Deals with the physical aspects of storing and moving goods within a facility. |
| Stock Accuracy | Further segregation of inventory is possible on the level of:
| In addition to the levels of IM, a WMS adds the physical location management component for detailed stock monitoring. |
| Warehouse Execution | Registration of goods receipts, goods issues and stock corrections. Also managing the different stock types (e.g. quality inspection stock, blocked stock). | In addition to the levels of IM, a WMS is used to manage warehouse processes in more detail. This means the system will guide the warehouse operator during picking, packing an putaway execution. |
| Real Time Visibility | Real time visibility of in and out movements. | In addition to the levels of IM, every physical movement from location A to location B in the warehouse is registered using mobility devices. This provides real time visibility on a detailed level. |
Assumptions
- The SAP S/4 HANA implementation is a green field implementation. Therefore the deployment approach of warehouse management system in an S/4 HANA migration is not considered.
- To be in line with the standardization goals of Syensqo and to limit impact on design, configuration, training and deployment effort, only one of the options outlined in this document will be selected for implementation.
- Based on business rules described in this document, decisions will be made if a warehouse requires a warehouse management system.
- X Lean warehouses are existing currently in WP1. This solution won't be used anymore in the future. These warehouses will be inventory managed or warehouse management, based on the business rules defined in this document.
SAP EWM offers different deployment options. Based on below explanation, decentral EWM is not further considered in this document.
- Embedded EWM: EWM is embedded within the SAP S/4HANA system. Embedded EWM is suitable for simpler warehouse processes and organizations looking for tighter integration between logistics and other business processes.
- Decentral EWM: EWM is deployed as a standalone system separate from the core SAP S/4HANA system. It provides advanced warehouse management capabilities. Decentralized EWM is advised for companies offering 3PL functionalities, warehouse automations and/or high volumes.
- Embedded EWM: EWM is embedded within the SAP S/4HANA system. Embedded EWM is suitable for simpler warehouse processes and organizations looking for tighter integration between logistics and other business processes.
Constraints
Capture any additional constraints that the chosen alternative (i.e. the decision made) might impose on other parts of the overall design, solution, or processes.
Impacts
Describe the impact of the decision on processes, infrastructure, other SAP modules or systems, data cleansing and migration, developments, automations, interfaces, in-flight projects, etc.
- Descision of basic/ advanced TM will impact integration of EWM and TM:
- Basic EWM has can easily integrate with basic TM ASN; loading RF using freight order (not outbound delivery), the information of freight order is considered in the monitor e.g reporting
- Advanced TM and basic EWM; no integration.
Business Rules
The decision may translate into business rules which enforce the decision and will require configuration. List these business rules here. For example, "An Outline Agreement cannot be created via the RFQ process. An awarded RFQ can only result in a Purchase Order".
5 criteria to define if the warehouse require a warehouse management system. These criteria will be also used for spare parts warehouses and R&I centers. (spare parts adviced to handle in a light ewm solution)
what with 3PL?
- Is stock management required at storage bin level? Number of storage bins.
- Volume
- nr of warehouse operators
Options considered
List the options (viable options or alternatives) you considered. These often require a longer explanation with diagrams, or references to other documents (links are best, but attachments are also possible). Use enough detail to adequately explain what you considered so that a project or business stakeholder reviewing this decision will not come back and ask "did you think about...?"; this leads to loss of credibility and questioning of other decisions. This section also helps ensure that you considered enough suitable alternatives rather than just copy/pasting SAP's recommendations.
Option A: Stock Room Management
Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly
Option B: Basic Extended Warehouse Management
Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly
Option C: Advanced Extended Warehouse Management
Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly
same as embedded, using extra functionalities; VAS, kit to order, cross docking
Evaluation
Strategic Choice: Implementing SAP EWM provides a future-proof solution to support Syensqo’s warehouse management processes. Given the fact that Syensqo's strategic priorities do not center around warehouse management, it is expected that the basic functionalities of SAP EWM will be sufficient.
SAP EWM is a solution which can handle more complex warehouse management processes. However it is recommended for Syensqo to implement a limited scope. Later phases can expand functionality as needed, including advanced features.
Option A: SRM | Option B: Basic EWM | Option C: Advanced EWM | |
|---|---|---|---|
| Functionality and complexity |
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| Integration |
|  Con |
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| Scalability and future growth | Con | Con | Con |
| Implementing effort and Change Management | Con | Con |
ProSee also
Insert links and references to other documents which are relevant when trying to understand this decision and its implications. Other decisions are often impacted, so it's good to list them here with links. Attachments are also possible but dangerous as they are static documents and not updated by their authors.
KDD TM
