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Pros and Cons of Implementing WM

Posted: Thu Apr 12, 2007 9:50 pm
by Anandj
Hi WM experts,

Can anyone share with me documents on Pros and Cons of implementing WM . This is my third WM implementation .But wanted to check with you guys for documents before preparing my own.

Thanks for your immediate response.

With regards,
AnandJ

Posted: Mon Apr 16, 2007 6:30 am
by svetja

Posted: Tue Apr 17, 2007 12:28 pm
by PMBUG
Hope this helps.. (I am not WM expert !)

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Disadvantages of WM
1. Transaction intensive -
2. Master data – Extra master data must be maintained when using WM. Each material master requires two extra views to maintain the stock placement/removal strategies, fixed bin information, replenishment quantities, etc. As well storage bins must be maintained in the system.

3. Complexity – WM adds a layer of complexity to the system. Because transfer orders are typically initiated from IM transactions reversing a transaction becomes more difficult.
4. Failed transfer orders – A large degree of automation can occur in WM by having IM transactions generate automatic transfer order creation in WM. Quite often automatic transfer order creation will fail due to a lack of inventory, inventory not being in the bin the system expects, or incorrect master data. If a failed transfer order is not reprocessed often future automatic transfer orders will fail. As a result one WM error can compound into two or three WM errors. Monitoring failed transfer orders is a daily task.

5. Discipline – Because of the complexity and failed transfer orders that can occur in WM a strict discipline is required to maintain inventory accuracy. In WM inventory accuracy is not limited to count but also includes location.
6. Cycle counting – Cycle counting is more complicated when using WM as opposed to just IM. Cycle counting in WM is a four-step process as opposed to three steps in IM. In addition, when performing a cycle count in WM the particular storage bin will be blocked for stock placement/removal. Thus, if automatic transfer order creation is initiated from an IM transaction at the time a WM cycle count is active the transfer order will fail due to the bin being blocked from the cycle count.

Advantages of Warehouse Management

WM module provides flexible, efficient, automated support that enables you to:
• Manage complex warehouse structures
• Define and manage storage areas and storage bins in the warehouse
• Manage several different ‘Types of storage’
o High rack storage, Cold storage etc.
• Execute stock placements and removals using different put-away and picking strategies
• Interface to external non-SAP warehousing systems
• Manage inventory at the storage bin level

Posted: Tue Apr 17, 2007 5:52 pm
by Anandj
Hi PMBUG

Thanks a ton for your information

With regards,
AnandJ