SAP EWM add-ons (7.): Mild-deconsolidation

Automatic proposal for splitting the received quantity for storage into a picking position and reserve stock for replenishment.

We commonly deal with situations in warehouses when goods are stored in a certain quantity both in ground-level picking positions and in higher racks. Items are picked in piece or carton quantities from the picking position, and then replenished from the high rack up to a defined maximum.

Often there is a situation where the picking position isn’t completely full, and the same goods are currently being received and waiting for storage. In such cases, it makes sense to consider setting aside part of the received quantity directly for replenishing the ground-level position, rather than storing the entire stock in the high rack only to bring it back down for replenishment later. This approach would save unnecessary handling of moving goods up and down.

This is essentially a process of splitting the received quantity into different parts, which can then have different storage destinations.

Of course, this can only be used for goods without expiration tracking or, more generally, where we can afford to break the FIFO principle.

Business case

Standard EWM offers a process of deconsolidation, which is tied to a set of rules and creates planned warehouse tasks as a guide for deconsolidation.

The major disadvantage of the EWM standard is:

• The complexity of the entire solution, both in terms of configuration and processing
• Planned warehouse tasks reserve the capacity of the target storage location for the entire time until deconsolidation and final storage of the product occur. This often results in blocked storage capacity that could be utilized in the meantime. So, if storage from receiving is delayed and the picking position is almost empty, the system still accounts for the planned storage quantity, preventing automatic replenishment.

mib:solution

Our solution involves a freely algorithmic approach to splitting the quantity at receiving, already during the creation of the handling unit (HU), as part of the standard RF receiving application. We’ve humorously named it ‘Mild-deconsolidation’.

The primary use of this scenario is to split the received quantity for replenishing the picking locations, with the remaining stock being stored in the high rack.

During the receiving process, we calculate the quantity that the warehouse worker should set aside into a separate HU and later direct it to the picking location during storage. This proposal is displayed directly on the reader at the moment of entering the quantity of goods. The warehouse worker can follow the suggestion but is not required to.

Compared to deconsolidation, we do not create any planned warehouse tasks, and therefore do not block capacity at the target storage location. If there is a delay in processing the receipt, the picking position is replenished from the high rack stock in the meantime.

Consultation

Are you interested in a consultation regarding this solution? Feel free to contact us.