Moving beyond basic operational execution to achieve peak warehouse efficiency requires the implementation of advanced strategies. These techniques are designed to optimize space utilization, minimize labor costs, and streamline complex processes. This section explores key optimization techniques available in SAP EWM, including slotting, cross-docking, and labor management.

Slotting

Slotting is an optimization process that determines the most suitable putaway parameters—such as storage type, storage section, and bin type—for a product. The goal of slotting is to place goods in a way that optimizes storage and picking efficiency. The analysis uses various parameters to find the ideal location for each product:

• Product Data: Physical attributes like weight, dimensions, and handling requirements.
• Packaging Data: Information about how a product is packaged.
• Demand Forecast: Data on how frequently a product is ordered.

By placing fast-moving items in easily accessible locations and considering product characteristics, slotting helps reduce travel time and improve overall throughput.

Cross-Docking

Cross-Docking is a logistics strategy where goods are moved directly from the receiving area to the shipping area with minimal to no intermediate storage. This approach significantly reduces transportation costs, storage costs, and delivery times. SAP EWM supports several forms of cross-docking, including:

• Transportation Cross-Docking
• Merchandise Distribution
• Push Deployment
• Pick from Goods Receipt
• Opportunistic Cross-Docking

Labor Management

Labor Management provides tools to measure and analyze employee productivity, helping to lower operational costs and make effective use of warehouse resources. By tracking the time taken to perform various activities, managers can establish performance standards, identify areas for improvement, and compare the productivity of different employees or teams. Three types of time can be tracked:

• Direct Labor: Time spent on value-adding warehouse activities like picking, packing, and putaway.
• Indirect Labor: Time spent on necessary but non-direct activities such as housekeeping or administrative tasks.
• Unproductive Time: Time spent on breaks or other non-working activities.

Production Supply

Production Supply is the process of staging components required for a production order. This is managed through a Production Supply Area (PSA), which is a specific area in the warehouse where materials are prepared and made available for manufacturing. The PSA contains storage bins dedicated to this purpose. Different staging types can be used depending on the production process:

• Pick Parts: Components are picked individually for a production order.
• Release Order Parts: Components are staged based on a release order from production.
• Crate Parts: Components are delivered in standardized containers or crates.

These strategic optimization tools are powered by system interfaces that connect managers and floor personnel to the EWM system in real time, enabling effective execution and monitoring.