5.1 Production Supply

SAP EWM is not limited to managing distribution centers; it also plays a crucial role in integrating warehouse operations with manufacturing processes. The function of Production Supply is to ensure that the necessary components are staged from the warehouse to the production line in a timely and efficient manner, directly supporting the manufacturing schedule.

This process is driven by several key objects that link production and logistics. The Production Order, created in the ERP system, is the central document that specifies what product is to be manufactured, in what quantity, and by when. The Bill of Material (BOM) is linked to the production order and provides a detailed list of all the raw materials and components required to produce the finished good. The physical location on the shop floor where these components must be delivered is known as the Production Supply Area (PSA). Each PSA is configured in the system and contains one or more storage bins where the staged materials are placed.

EWM supports different methods, or staging types, for delivering components to the PSA, depending on the nature of the component and the production process:

• Pick Parts: These are components that are issued to the production order in the exact quantity required. A warehouse task is created to pick the specific amount from a storage bin and move it to the PSA.
• Release Order Parts: These are typically bulk components that are staged in a larger quantity (e.g., a full pallet), from which the production line can draw as needed.
• Crate Parts: This refers to a specific process where components are delivered in standardized crates or containers.

Master Data Setup for Production Supply

To enable this seamless integration, specific master data must be configured in the ERP and EWM systems. The process begins by reviewing the Bill of Material for the finished product in the ERP system (Logistics → Production → Master Data → Bills of Material → Display). Within the BOM item details, fields like the Production storage location and Supply Area specify where the components are sourced from and delivered to.

The next critical step is creating a Control Cycle for production supply (Logistics → Logistics Execution → Master Data → Warehouse → Production Supply → Create). The control cycle is the link between the component, the PSA, and the warehouse. It defines key parameters, such as the Staging Indicator, which tells the EWM system which staging method (e.g., Pick Parts) should be used for that specific component and PSA combination. Once this master data is in place, the creation of a production order in ERP will automatically trigger requirements in EWM to stage the necessary components.

Closely related to supplying production with raw materials is the process of receiving finished goods from the production line, which can be managed using Expected Goods Receipts.

5.2 Expected Goods Receipts

An Expected Goods Receipt (EGR) is a document in EWM that is used to anticipate the receipt of goods, often without a preceding document like an inbound delivery from the ERP system. Its primary purpose is to enable the warehouse to begin the goods receipt process directly in EWM, providing greater flexibility and operational autonomy.

There are several key advantages to using the EGR process. First, it allows the warehouse to continue processing receipts even if the central ERP system is temporarily down or unavailable. Because the EGR is created and managed within EWM, the physical receipt process is decoupled from ERP connectivity. Second, in a manufacturing context, data from a production order can be used to create an EGR. This acts as a preview of the finished goods that will soon be coming off the production line, allowing the warehouse to plan labor and space for the upcoming goods receipt.

The EGR process in EWM utilizes two main documents:

• Notification Expected goods receipt: This is the initial planning document, a precursor to the actual receipt.
• Expected goods receipt: This is the document that is converted into an inbound delivery within EWM to execute the physical goods receipt.

These documents can be created through two distinct methods, depending on which system initiates the process:

• Push Scenario: The process is triggered from the ERP system, typically by running a specific report (/SPE/INB_EGR_CREATE) that pushes the data (e.g., from a production order) to EWM to create the EGR documents.
• Pull Scenario: The process is triggered from within the EWM system, where a report (/SCWM/ERP_DLV_DELETE) is executed to pull the necessary data from ERP.

A user in EWM can create an EGR document by navigating to the “Generate or delete expected goods receipt” transaction. They would enter the warehouse number and use a selection parameter, such as the production order number, to find the relevant data. After executing the report, the system confirms the successful creation of the EGR documents. These can then be viewed and processed in the “Maintain Notifications of goods receipt” screen, where they await the physical arrival of the goods to be converted into an active inbound delivery.

This ability to manage receipts flexibly is powerful, but an even more advanced process aims to bypass the storage part of the receipt process altogether: cross-docking.

5.3 Cross-Docking

Cross-docking is a sophisticated logistics strategy designed to dramatically reduce goods transportation costs, storage costs, and delivery lead times. The core principle of cross-docking is to move products directly from the goods receipt zone to the goods issue zone with minimal or, ideally, zero intermediate storage. A product is received, immediately allocated to an outbound requirement, and shipped out, often on the same day. This technique avoids the labor-intensive and time-consuming processes of putaway and subsequent picking.

SAP EWM supports several different types of cross-docking, each tailored to a specific business scenario:

• Transportation cross-docking: Moving goods between different trucks or transportation units.
• Merchandise Distribution: A retail-specific scenario for distributing goods from a central DC to stores.
• Push deployment: Distributing stock to other locations based on a central plan.
• Pick from goods receipt: Fulfilling an outbound order directly with stock that has just been received, but not yet put away.
• Opportunistic Cross-docking: A flexible method that identifies cross-docking opportunities in real-time.

Opportunistic Cross-Docking in Practice

Opportunistic cross-docking is a particularly powerful method because it does not require complex planning in other systems; it is controlled directly within EWM, primarily through product master data settings. It identifies an opportunity to cross-dock when an inbound receipt occurs for a product that also has an open outbound requirement.

The end-to-end process flow, as demonstrated through the system’s transactional sequence, clearly shows how the standard putaway process is bypassed. The scenario assumes a purchase order has been created for an inbound shipment and a sales order exists for an outbound shipment of the same product.

1. Create Inbound Delivery: The process begins in ERP with the creation of an inbound delivery against the purchase order, which is then replicated to EWM.
2. Post Goods Receipt in EWM: A truck arrives with the goods. A warehouse worker posts the goods receipt against the inbound delivery in EWM. At this exact moment, the system’s logic activates. It scans for any open warehouse requests for the same product and identifies the requirement from the sales order’s outbound delivery. This is the “opportunity.”
3. Create Outbound Delivery: The outbound delivery, corresponding to the existing sales order, is created in ERP and replicated to EWM. In a typical live scenario, this outbound delivery would already exist, representing the open demand that the system is looking for.
4. Check Warehouse Tasks: The system now generates warehouse tasks. Critically, instead of creating a standard putaway task to move the goods to a storage bin, the EWM system generates a cross-docking task. This task explicitly directs an operator to move the required quantity from the goods receipt zone directly to the Goods Issue (GI) Zone. If the inbound quantity exceeds the outbound demand, a separate, standard putaway task will be created for the excess amount. This bifurcation of tasks is the core of the process, demonstrating how the system bypasses storage for the portion of stock it can immediately fulfill.
5. Confirm and Post Goods Issue: The operator moves the goods to the GI-Zone, confirms the cross-docking task, and the goods issue for the outbound delivery is posted. The product is shipped, having never occupied a storage bin in the warehouse.

The execution of all these advanced and basic processes on the warehouse floor is made possible through the use of mobile technology for real-time data entry and is overseen by powerful monitoring tools.