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SAP warehouse management process flow: Overview in 2022

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In order to guarantee customer satisfaction and boost profit margins, it is essential that products flow seamlessly through the downstream supply chain, which would be ensured by the SAP warehouse management system.

If you’re still debating whether to utilize the SAP warehouse management system for your warehouse, read this page first. It will provide you with the most comprehensive breakdown of the SAP warehouse management process flow, as well as details on how highly functional each process is.

What is SAP warehouse management process flow?

SAP Warehouse Management is an ERP software that streamlines, manages, and combines all warehouse activities to ensure a smooth operation.

It gives customers the ability to manage every structure in a warehouse operation, regardless of how complicated it may be, while keeping track of inventory variances and managing risky commodities. Barcode scanners are also used to quicken inventory procedures.

While keeping an eye on the commodities coming in and going out all day, stock transfers as well as goods receipts can be managed. A good warehouse operation’s logistics can be guaranteed, and many of the labor-intensive tasks may be automated to save time and money.

Automates labor-intensive operations and makes use of bin-level inventory management to increase the organization’s accuracy and efficiency. It also keeps track of the actual places within.

After all, it can be summed up that SAP warehouse management process flow can be defined as the following activities:

  • Build and supervise complex storage systems.
  • Make use of creative putaway and picking techniques to enhance material flow.
  • Process stock transfers, goods receipts, and issues of products quickly and efficiently.

The SAP R/3 system and warehouse management are fully connected. WM activities are activated by transactions started in other SAP systems, and these activities then trigger actual physical movements inside the warehouse.

We are able to create and map the actual physical warehouse layout using SAP Warehouse Management, process product movements such as stock transfers, receipts, and problems, and control inventory level changes at the storage bin area in the warehouse facility.

Actual physical warehouse layout with SAP Warehouse Management

Actual physical warehouse layout with SAP Warehouse Management

Quality Management, Material Management, and Sales and Distribution are all connected with the warehouse management system. In one of the three modules—SD, QM, or MM—the fundamental material for the material movement will be produced.

The product receipts from suppliers and other plants are generated by the MM module’s creation of the basic document. The MM module further creates the foundation document for the issuing of products to manufacturing or other facilities.

During production, the GR quality phase, and online inspection, the QM module creates the fundamental document for returning the product to the vendor.

For the purpose of removing inventory from a warehouse to fulfill a sales order, a delivery document is created in the SD module. To manage the stuff the customer has returned, the fundamental document is created in the SD module.

In order to manage inventory effectively, both storage locations and bins must be taken into consideration. Additionally, the WM module has barcode and RFID reading features. As a distinct project in the future, they may be looked into and put into practice.

SAP warehouse management process flow in 2022

Outbound warehouse management picking process

When FG/SFG materials are on hand in the warehouse, we can fulfill customer orders by reissuing stock. If we need to produce FG/ SFG material internally, we must issue RM or SFG material, which will then be converted to FG material and stored in the warehouse inventory, if any is available. The customer order can now be issued.

Outbound warehouse management picking process

Outbound warehouse management picking process

We must turn to outsourcing if even RM or SFG materials needed for in-house manufacturing are not readily available in the warehouse. I am referring to obtaining RM/ SFG Material from the supplier for Production (Process #3).

In this case, the demand is triggered either manually or through MRP, depending on the business operation and the customer’s requirements, or by obtaining FG material from the supplier and issuing it in response to a customer order.

Upload and put away inbound stock

Upload and put away inbound stock

Upload and put away inbound stock

The warehouse worker will confirm delivery for PO/STO/Sub-con PO/Returns PO as appropriate when a truck approaches the warehouse gate.

If every sum is accurate, the delivery is approved. If not, the shipment will be rejected and sent back to the vendors. The warehouse worker will instruct the personnel to unload the products off the truck after accepting the shipment.

The warehouse manager and team will manually inspect the label on the stock material, including the SSCC/Details, the amount supplied, any flaws, and so on.

The manager will sign the transportation acceptance document if there are no issues. If there are any problems, he or she can note them in the paperwork and let the responsible member of the purchasing team know so they can talk to the vendor further.

The merchandise will then be relocated to the unreceived dock area once the sender sends a signal to a truck driver to drive the truck away from the warehouse. Right now, we must create a GR document utilizing the PO as a guide.

WM- PP Integration- GI of RM to Production and GR of FG Material from Production

The warehouse management picklist page’s order display allows us to see an order’s specifications, such as the manufacturing bin, kind of material staging, and needed material quantity, as soon as it has been formed. The system will start material staging once the production order is released.

The system then determines the type of material staging to be used in accordance with the control cycle and the manufacturing storage bins in which the material is staged. The auto TR is automatically built since the system chooses auto staging. BP will decide whether or not we stage materials manually.

WM- PP Integration- GI of RM to Production and GR of FG Material from Production

WM- PP Integration- GI of RM to Production and GR of FG Material from Production

At this time, you will typically be questioned. What number of needs will be created? This depends on the number of production plans for which TR is manufactured. The amount of PSA provided for release order parts determines it once more.

Once you have verified the TR generation using the TR show functionality, you can create the TO for the staged materials in SAP warehouse management. You may once more get the chance to develop TO auto in the backend depending on BP.

Depending on the TO, you may now stage goods before moving them to the manufacturing storage bin or storage type-100. You may submit GI for material consumption. At this stage, you may choose between manual backflushing and automated backflushing.

Although we are unable to determine whether the approach is better, if the manual technique is used, we need manually alter the stock in IM and WM depending on the current stock position in order to reduce material usage after the FG Assembly.

On the other hand, the auto backflush system reduces the amount of material in the manufacturing storage bin without the requirement for TR or TO creation. Since the system won’t respond until the amount of usage is known, usage is also not submitted until production is verified.

We can transport goods from production into the warehouse fast by utilizing the WM-PP interface.

The system establishes a quant in the WM—the intermediate storage space for goods receipts from production—and publishes a good receipt in IM for the FG material upon confirmation of the manufacturing order. You can use IM move type 101 for product receipts from production while manually uploading GR. The WM movement type 103 is assigned to this IM move type.

The FG material is kept in the WM’s interim storage type 901 with the GI posting. The system generates a PCN. We create a TO in the WM for the putaway based on the TR.

When QM is enabled, both the automatic and manual GR from the production process will go through a quality inspection before being published in QA32. The computer system creates a new inspection lot for each GR or partial GR.

Warehouse management – Cross docking flow

The system will read the delivery and gather the PO number if the item is not PGRed when it arrives at the unloading dock. The system searches for HU and SN data if it is processed by HU/SN.

The system will generate the HU label and apply it on the pallet or the material if it is required. If not, the computer will read the material code.

Warehouse management - Cross docking flow

Warehouse management – Cross docking flow

The material master data/indicator in the PO is then checked to see if this material is linked to or active for cross-docking. The system will now look for the quantity, which you must precisely enter and submit.

The material is then automatically transported to the cross-dock zone using TOs that are formed. The goods transportation and TO confirmation are your next tasks. The client has now received the supplies, which are now products.

Warehouse management – Scrapping

Quality Inspection Scrap

Quality Inspection Scrap

Scrap due to Damage in Material

Scrap due to Damage in Material


The SAP warehouse management system (WMS) is a cutting-edge software solution that many businesses have turned to enhance stock management, warehouse layout, order fulfillment, planning, and supervising operations. After gaining knowledge about the SAP warehouse management process flow with the in-depth information above, we truly think that you at least partially comprehend the value of warehouse management.

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