Santosh Karkhanis

WM module of SAP R/3
SAP is a integrated software package for business applications. SAP package is divided into many 'Modules' for ease of implementation. Each module covers a special aspect of business. Few examples are "MM" module covers 'Materials Management', 'CO' module deals with 'Costing' etc. All these modules are integrated i.e., they look for the same file for a data. Thus data redundancy can be eliminated. SAP is real time system. You always look current data and not historical data.
SAP R/3 also acts as a 'facilitator' for a number of other improvement projects, finally resulting into business benefits such as increased sales and lower cost of operations.
'WM' sub-module of 'MM' module takes care of 'Warehouse Management ' functionality. Warehouse can be managed efficiently at 'Bin location' level using WM module.
WM module of SAP R/3 provides the 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, such as high rack storage, block storage or fixed bin storage
• process all relevant postings and transactions such as goods receipts, goods issues and general stock trasfers.
• monitor stock movements
• execute stock placements and removals using different put-away and picking strategies
• process stock differences
• manage hazardous materials
• use bar code scanners
• nterface to external non-SAP warehousing systems
• manage inventory at the storage bin level
• ensure that stock posted in the Inventory Management system is the same as the stock in the warehouse
• ntegrate with materials management, product planning, quality management and sales and distribution

It primarily aims at defining and managing complex warehouse structures within a company.
The following points must be considered while implementation of SAP R/3 WM module,
• Path optimization for
-stock placements
-stock removal
-stock transfer (for example, replenishment)
• Even utilization of warehouse capacity
• Balanced utilization of warehouse personnel
• Possibility for improvement in warehouse stocking
• Handling of means of conveyance for stock placement and stock removal
• Possibility for improvement of work papers
WM' module is one of the effective tools available to manage Warehouse and keep inventory at optimum level. But it is a 'Tool' and you need a skillful craftsman who can understand your business needs and satisfy them using the tool. Potentials of the tool must be extracted fully for the best results.

Any business organization has three partners

·                     Share Holders: Shareholders provide financial support for business activities. They expect good profitability from the business.

·                     Customers: Customers are the basic cause of the business. They expect satisfaction at reasonable price.

·                     Employees: Employees are the driving force behind all the activities. They expect supporting and motivational environment with reasonable remuneration.

To satisfy these expectations of reasonable price, reasonable remuneration as well as good profitability, COST REDUCTION must be a continuous activity.

For most of the production and service organizations, high amount of money is blocked into inventory. Often safety stock limits are kept high to take care of unforeseen situations like stock-outs or heavy rejections. This high inventory means high inventory carrying cost to the organization.

High inventory hides quality problems. Low level of inventory forces to keep high quality standards and reveals any quality deterioration.

To reduce cost and increase quality level, good control on inventory is necessary. A good control on inventory also helps in reducing associated costs like procurement costs, material handling costs, lost opportunity costs etc.

To have good inventory control, warehouse must be managed efficiently. WM module of SAP R/3 is one of the best tools available to control inventory at bin level.

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