Putaway Strategies in Extended Warehouse management part 2

[PrasannaKumarReddyGurijala]

Putaway:

It refers to the process of moving goods from a receiving area to their designated storage locations within the warehouse. It involves the following steps:

1. Identification: The system identifies where the goods should be stored based on various factors such as item type, size, storage conditions, and available space.
2. Task Creation: SAP EWM creates a putaway task, which includes instructions on where the goods should be moved. This task is typically generated automatically based on warehouse rules and strategies.
3. Execution: Warehouse personnel or automated systems execute the putaway task. This involves physically transporting the goods from the receiving area to the assigned storage location.
4. Confirmation: Once the goods are in the designated storage location, the task is confirmed in SAP EWM, updating inventory records and ensuring accurate stock levels.
5. Integration: The putaway process integrates with other warehouse processes, such as inventory management and order fulfillment, to maintain an accurate and efficient warehouse operation.

Putaway in SAP EWM aims to optimize storage space, improve inventory accuracy, and enhance overall warehouse efficiency.

Putaway Strategies:

Putaway strategies in SAP EWM (Extended Warehouse Management) are predefined rules and methods used to determine the optimal storage location for goods within a warehouse. These strategies are crucial for optimizing space utilization, ensuring efficient inventory management, and improving warehouse operations.

Effective warehouse management is critical to supply chain efficiency. SAP EWM offers various putaway strategies to streamline operations and enhance inventory management. This article explores nine key putaway strategies: Manual Entry, Fixed Storage Bin, General Storage, Addition to Existing Stock, Empty Storage Bin, Bulk Storage, Pallet Storage, Near Fixed Picking Bin, and Flexible Storage.

Empty Storage Bin:

Empty storage bin strategies are designed to allocate available space for incoming goods quickly. This method is particularly useful in managing seasonal inventory surges or unexpected stock increases. It emphasizes integrating this strategy with automated systems to ensure real-time updates and accurate space allocation. While this approach can enhance efficiency during peak periods, it requires careful planning and coordination to avoid congestion and misplacement of items.

Bulk Storage:

Bulk storage is typically employed for high-volume, low-mix inventory, such as raw materials or commodities. The benefits of bulk storage in improving loading and unloading efficiency and reducing handling times. This strategy is advantageous in industries such as manufacturing and retail, where large quantities of uniform items are stored. However, it requires sufficient space and appropriate handling equipment to manage bulk items effectively.

Pallet Storage:

Pallet storage strategies focus on efficiently handling and moving large items using pallets.

The benefits of pallet storage in improving space utilization and facilitating easier movement of goods. This strategy is particularly useful in warehouses that handle large, heavy items, as it reduces manual handling and speeds up the putaway and retrieval processes. However, investment is required in pallet racking systems and handling equipment.

Near Fixed Pcking Bin:

Near fixed picking bin strategies aim to reduce picking times by placing items close to their fixed storage locations. This approach benefits picking environments, such as e-commerce fulfillment centers. This strategy significantly improves order fulfillment speed and accuracy by minimizing travel time between picking locations. However, careful planning and regular adjustments are required to maintain efficiency as inventory levels and demand patterns change.

Flexible Storage:

Flexible storage strategies are designed to adapt to changing inventory needs, allowing goods to be stored in various locations based on dynamic criteria. The benefits of flexible storage in enhancing adaptability and overall warehouse efficiency. This strategy is particularly useful in environments with fluctuating inventory levels and diverse product ranges. However, advanced warehouse management systems and real-time inventory tracking are required to ensure optimal performance.

Process Flow:

5) Empty Storage Bin: 

The system discovers an empty storage container using this method. This tactic supports haphazardly organized warehouses where goods are kept in separate storage bins. This approach works particularly well for shelf and high-rack storage.

Maintain the following storage type configuration settings to implement the empty storage bin putaway strategy:

Storage Behavior: standard warehouse

Putaway Rules: empty Bin

You also have the option to change the sort sequence of the storage bins. This affects the determination of the empty storage bin under SrchRule EmptyBin.

Benefits: Optimized space utilization and reduced putaway times.

6) Bulk Storage: 

Bulk storage is a warehouse space devoid of shelves where identical pallets or containers are piled together. In bulk storage, the bins are frequently divided by lines on the warehouse floor. Typically, each bin contains a single product—barrels of a certain hue. Bulk storage is frequently used for products like canned goods or soft drinks that need a lot of room to be stored because they are produced in huge quantities.

Maintain the following storage type configuration settings to implement the bulk storage putaway strategy:

Storage Behavior: bulk storage

HU Requirement: must be set to X.

Putaway Rules: addition to existing stock/empty bin

Addn.Stock Forbidden: addition to existing stock permitted.

It is not required, but you can activate the HU type check or capacity checking (the allowed number of HUs is defined in further settings and automatically checked)

Benefits: Improved handling of high-volume inventory and enhanced loading/unloading efficiency.

7) Pallet Storage: Using this putaway approach, the system processes various HU kinds (industrial or euro pallets) and assigns them to the appropriate storage bin area. This sort of storage is frequently employed in storage types corresponding to warehouse pallet racking sections. Several smaller parts are frequently separated within a single storage bin. It is believed that when using this method, you will only store HU in storage bins with the same basic dimensions.

Maintain the following storage type configuration settings to implement the pallet storage putaway strategy:

Storage Behavior: pallet storage.

HU Requirement: must be set to X.

HU Type Check: must be active.

Putaway Rules: empty bin.

Mixed Storage: choose “Mixed storage without limitations” or “One HU allowed per bin.” Each bin section is controlled like an individual bin.

It is possible to allow addition to stock, but the system would not do that alone.

Benefits: Easier movement of large items and improved space utilization.

8. Near Fixed Picking Bin: 

Utilize this tactic to store goods in a designated area. When fixed storage bins in a picking storage type are directly above reserve storage bins of a reserve storage type, this tactic is employed.

Maintain the following storage type configuration settings to implement the near-fixed picking bin putaway strategy:

Storage Behavior: standard warehouse

Putaway Rules: empty bin or addition to stock/empty bin

SrchRule Empty Bin: near to fixed bin

Benefits: Reduced picking times and increased efficiency.

9) Flexible storage: The flexible bin is a brand-new storage option located in a warehouse's flexible bin area, determined by cell size. When necessary, a flexible bin is formed; when it is empty, it is erased. Because storage facilities are typically empty rooms without shelves that house objects of various sizes, flexible bins are helpful when it makes no sense to manufacture bins of predetermined sizes in advance. This feature was created especially to meet the needs of the armed forces.

There are mandatory settings for the storage type:

The Storage Behavior must be “Flexible Storage.”

Use Fixed Bins must be blank.

Putaway Rules must not be set on “Empty Bin.”

HU Type check must be blank.

WT Generic must be set to “Only Storage Type.”

Benefits: Increased adaptability and improved overall efficiency.

Result:

Implementing various putaway strategies in SAP Extended Warehouse Management (EWM) has yielded
significant insights into optimizing warehouse operations. This section discusses the results and implications
of employing each strategy, drawing from the case studies and theoretical frameworks presented earlier.

Manual Entry:
Results: The manual entry strategy effectively handled special items such as fragile or high-value goods. It
provided the flexibility required for unique storage needs, ensuring careful handling and reducing damage
rates.

Fixed Storage Bin:
Results: Implementing fixed storage bins significantly reduced search times and improved order accuracy.
The strategy was particularly beneficial in environments with stable inventory levels and predictable demand.

General Storage:
Results: General storage improved space utilization and provided flexibility in handling varying inventory
levels. The strategy was effective in accommodating fluctuating stock, thereby optimizing storage space.

Addition to Existing Stock:
Results: Adding to existing stock optimized space and simplified inventory management. This strategy
reduced the need for additional storage space and minimized search times.

Empty Storage Bin:
Results: The empty storage bin strategy efficiently allocated available space for incoming goods, reducing
putaway times and managing seasonal inventory surges.

Bulk Storage:
Results: Bulk storage improved loading and unloading efficiency and reduced handling times. It was
particularly beneficial for high-volume, low-mix inventory, such as raw materials.

Pallet Storage:
Results: Pallet storage facilitated easy movement and handling of large items, improving space utilization
and reducing handling times.

Near Fixed Picking Bin:
Results: Placing items near fixed bins reduced picking times and increased order fulfillment speed and
accuracy.

Flexible Storage:
Results: Flexible storage enhanced adaptability and overall warehouse efficiency by allowing dynamic
placement of goods.

Conclusion:

Implementing and analyzing various putaway strategies within SAP Extended Warehouse Management (EWM) provides comprehensive insights into optimizing warehouse operations. Each strategy—Manual Entry, Fixed Storage Bin, General Storage, Addition to Existing Stock, Empty Storage Bin, Bulk Storage, Pallet Storage, Near Fixed Picking Bin, and Flexible Storage—demonstrates distinct benefits and poses unique challenges.