SAP S/4 HANA EWM: Transforming High-Tech Manufacturing

Summary

GBSI successfully implemented SAP S/4 HANA with embedded Extended Warehouse Management (EWM) for a leading high-tech manufacturer expanding into the APAC region. The project delivered a comprehensive warehousing solution that streamlined operations from raw material storage to customer shipment, achieving remarkable efficiency gains across multiple facilities.

Key Achievements:

  • Automated paperless warehouse processes with 40% productivity gain
  • Reduced warehouse personnel errors through RF automation
  • Improved container visibility across the entire supply chain
  • Successfully deployed across multiple facilities in under 12 months

Technology Used

  • Core Platform: SAP S/4 HANA 1709 with Embedded EWM
  • Mobile Technology: SAP ITS Mobile with HTML capabilities
  • Hardware: Android OS mobile RF scanners with industrial browsers

Key Modules:

  • EWM Handling Unit Management (HUM)
  • Batch Management
  • Split Valuation functionality
  • Custom BADIs for container status tracking

Client Background

Our client, a North American headquartered high-tech manufacturer, was experiencing rapid growth in the Asia-Pacific market. To meet increasing local demand, they embarked on an ambitious expansion plan to build new factories across the APAC region.

Client Profile:

  • Industry: High Technology Manufacturing
  • Headquarters: North America
  • Expansion: Multiple new factories in APAC

Business Challenges

The project involved tracking of reusable containers across the supply chain including internally within factory as well as with customers, suppliers, and other factories. There was a need to automate warehouse processes with utilization of bar codes and RF guns, while supporting implementation teams and business users spread across multiple countries in APAC and North America.

Operational Challenges:

  • Business users were new to sophisticated warehousing solution
  • Solution was needed in less than 1 year based on factory build schedule
  • Track reusable containers across entire supply chain network

Technical Requirements:

  • Automate warehouse processes with bar codes and RF guns
  • Details level tracking of country of origin and other customer specific attributes of raw and semi finished materials
  • Support teams across multiple countries in APAC and North America

Solution Delivered

GBSI team of SAP EWM & logistics domain experts proposed implementing SAP Extended Warehouse Management (EWM) solution embedded with SAP S/4 HANA to address the above objectives.

  • Utilized EWM Handling unit management (HUM) functionality with additional custom enhancement & report to track reusable containers across supply chain
  • Used SAP Split valuation to track value of same material based on production run and quality produced
  • Utilized SAP Batch management to store customer specific attributes for semifinished and finished product to provide detailed level traceability
  • Utilized standard SAP EWM ITS Mobile capabilities to automate warehouse processes using RF bar code scanning Mobile devices
  • Conducted thorough site survey with RF guns to ensure full coverage of wireless connectivity and eliminated any dead spots
  • Ensured all racks are labeled with right Bin labels and containers are labeled with right bar code container IDs

Business Impact

  • Automated, paperless warehouse processes utilizing mobile RF scanning provided significant productivity gain for Warehouse personnel
  • Visibility of expensive containers across supply chain provided higher availability of containers at right place when they were needed
  • EWM solution provided better visibility of empty and full containers, optimized warehouse space with right container type going into right bin size guided by system. This also improved putaway and picking efficiencies in warehouse
  • Use of batch management and split valuation provided detailed level traceability for semifinished and finished products needed by compliance and quality department
  • 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 factories and warehouses in less than 1 year

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