SAP EWM: Revolutionizing Automotive Spare Parts Logistics

Summary

GBSI customer journey within the automotive spare parts management domain to leverage the decentralized SAP Extended Warehouse Management (EWM) solution for warehousing automation & optimization.

Technology Used

  • Warehousing solution: Decentralized SAP EWM 7.0 integrated with ECC 6.0
  • SAP ITS Mobile capabilities: Connected Android OS mobile RF scanners to EWM system
  • SAP Solution Manager: Used to track progress and document the processes
  • HP ALM system: Used to enable testing and issues tracking

EWM solution included:

  • Handling unit management
  • Pack Specs
  • Slotting to find optimized storage space by material
  • Packaging using VAS orders
  • Kit to stock
  • Crossdocking using push deployment

Client Background

GBSI's automotive equipment manufacturing client - Fortune 100 organization with $30+ Billion in revenue was outgrowing warehousing space for its aftermarket spare parts business. The client was looking for a warehousing solution to optimize warehousing space, enable dynamic routing putaway process, support spare parts packaging and kitting processes and optimize pick, pack and ship processes. This warehousing solution also required to meet local country specific requirements.

Business Challenges

The client was looking for a warehousing solution to optimize warehousing space, enable dynamic routing putaway process, support spare parts packaging and kitting processes and optimize pick, pack and ship processes. This warehousing solution also required to meet local country specific requirements.

Operational Challenges:

  • Business users were new to sophisticated warehousing solution
  • Solution was needed in less than 1 year based on factory build schedule
  • Implementation team and business users were spread across multiple countries in APAC and North America

Technical Requirements:

  • Warehouse automation with bar codes and RF guns was a priority
  • Customer was looking for low risk, automated and fast warehousing solution

Solution Delivered

Customer was looking for low risk, automated & fast warehousing solution to meet their challenges. GBSI SAP EWM team proposed decentralized SAP EWM solution to enable key functions including:

  • RF enablement using ITS Mobile
  • Kitting
  • Inbound Packaging using value added services (VAS)
  • Process oriented storage control for dynamic routing
  • Clustered putaway process
  • Wave management and optimized pick, pack and ship process

We utilized Packaging specification master data to support multilevel packaging and used Push deployment to enable opportunistic crossdocking.

Business Impact

  • Automated, warehouse processes utilizing mobile RF scanning provided 30% increase productivity gain for Warehouse personnel
  • Warehouse throughput per day increased by 40%
  • EWM warehouse monitor provided realtime visibility to all warehouse operations such as:
    • Open outbound deliveries (ODR) ready for goods issue
    • Open ODRs ready for picking
    • Open IDRs ready for putaway
  • Use of SAP EWM solutions and GBSI EWM and Warehousing expertise helped get right solution to business requirement, allowing end to end implementation across multiple distribution centers all over India and China in less than 2 years

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