Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

INDUSTRY WHITEPAPER

Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

About the Author
infologix has been a recognized enterprise mobility leader since 2001, serving both the healthcare and enterprise markets. infologix helps break your most difficult productivity barriers, by working with you to mobilize your business by providing industry expertise, process knowledge and mobile infrastructure services to help you achieve new levels of customer care, productivity and profitability. With more than 2,200 customers infologix, an SAp partner, focuses on logistics Execution Systems (lES) and Supply chain Execution components of the SAp application suite. infologix is a recognized industry leader in warehouse management and SAp Erp implementation consulting. our SAp consultants provide a wealth of experience and knowledge in the design and implementation of world class SAp logistics and Supply chain solutions, enabling organizations to gain operational efficiencies, reduce costs and better manage supply chain operations. infologix SAp consultants have noted expertise in SAp logistics Execution System (lES), Warehouse Management (WM), and Extended Warehouse Management (EWM). infologixs SAp consultants are key participants in the pre-release (partner acceptance) testing for Extended Warehouse Management conducted by SAp Ag in Walldorf, germany. our consultants have contributed more than 600 hours of testing time to EWM 5.1 and 7.0. drawing on our years of experience working with SAp products and our real-world working knowledge of warehousing and logistics, SAp has incorporated much of our consultants feedback into improvements found in EWM 7.0 and 7.1 including the areas of serialization, yard management, and task and resource management. With in-depth expertise of SAp lES and EWM products and functionality, combined with a close relationship with SAp, infologix has an intimate knowledge of the development vector SAp is pursuing with the lES and EWM product suites. infologix is uniquely positioned to advise customers on strategic operational decisions, provide them with detailed information on key integration points, and quickly assist them in identifying fit/gaps with current and future releases of SAp WMS products. the authors of this whitepaper have nearly 20 years of experience working with SAp companies in the life Sciences, including some of the worlds leading pharmaceutical and Medical device manufacturers and distributors. they have deployed SAp in manufacturing and distribution environments in the uS, puerto rico, canada, Mexico and numerous countries in Europe and Asia.

Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

Executive Summary
SAps ScM Extended Warehouse Management (ScM EWM) solution has enhanced capabilities over previous versions of SAp Warehouse Management software. With these new and more powerful features, the ability to manage complex operating environments such as those of the life Sciences industry has become even easier. this whitepaper will discuss these features and how EWM can be leveraged in this type of demanding environment.

EWM Functionality Overview

SAp Warehouse Management has evolved over the last 10 years. Starting out as a basic stock locator system, it grew into a full-fledged WMS with the release of SAp r/3 (Erp) WM. Beginning in 2004, SAp embarked to develop a new warehouse management system based on the ScM platform that is now known as ScM Extended Warehouse Management (EWM). EWM was developed to address the needs of customers with complex warehouse environments in which the Erp WM solution lacked functionality. With EWM, SAp is able to compete head-on with the historical leaders or best of breed WMS applications in the market.
Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

EWM Feature Highlights

robust Warehouse Management System System-guided placement / removal Strategies rf data collection with SAp console and itSMobile Advanced Wave planning consolidation / deconsolidation packing / unpacking Quality inspection Engine Warehouse Monitoring tools / Analytics and graphical cockpit task and resource Management physical inventory / cycle counting cross docking yard Management Kit to order and Kit to Stock value Added Services Slotting / rearrangement labor Management

Life Sciences Application

SAp has a strong history in the life Sciences space, with more than 7 of the top 11 medical device and 19 of the top 20 pharmaceutical companies running SAp. in addition to the industry leaders, many of the small and midsize enterprises in life Sciences have turned to SAp to run their organizations. SAp has delivered key functionality used extensively in these industries such as batch management, serialization and handling unit management which provide the control and traceability mandated for products used in healthcare. When looking at a WMS application, a life Sciences company not only needs all of the functionality listed above, but also needs it to seamlessly integrate to the SAp Erp system to support all of the traceability and control that is so critical. integration to material handling equipment, rfid and production operations are all key components to fully and efficiently manage products from procurement and manufacturing to delivery to the end customer. We will discuss how SAp EWM can manage these critical factors for your organization.

Handling Unit Management

SAp EWM uses handling unit Management functionality to assign lpns (license plate numbers) to track pallets or containers of products. handling units are integrated into the MM, QM, pp and Sd modules. handling units can allow for pallet tracking in WM and non-WM managed storage locations as well as between plants. handling units support industrystandard gS1 SScc (Serialized Shipping container codes) numbering and provide tracking of key dimensions such as weight, volume and size. handling units track the exact detailed content of a container, including material numbers, batches and/or serial numbers, and can consist of mixed or homogenous products. With EWM, handling units are controlled at the storage type level, and within the storage type, it can be set whether the use of a hu is mandatory, optional or not required. the use of handling units in EWM can be done independent of activation of handling unit Management in the SAp Erp (MM-iM) module.
Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

Batch Management
SAp EWM is fully integrated with Batch Management. the batch number is a key field of all inventory records for batch-managed materials. Batches are recorded during all inventory transactions such as receiving, putaway, picking, goods issue and physical inventory. Batch determination is integrated into EWM, allowing for optimal selection of products during picking for outbound orders or replenishments according to warehouse logic (i.e. zones preferences) as well as other business or regulatory rules based on batch characteristics or expiration dates (fifo, fEfo, etc.) it is possible to drill-down into batch master details in all stock inquiries and see batch information and batch characteristics data.

Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

during the inbound process, batches can either be passed from SAp Erp via the inbound delivery, or can be captured (and created) directly in EWM, offering you maximum flexibility in your receiving process. during the batch creation, attributes (characteristics) such as country of origin, expiration date, shelf life expiration date and production date can also be assigned to the batch master. these are all critical attributes that most life Sciences companies must track.

Serial Number Management

Serial numbers are required for many implantable medical devices and other products that require a unique number at the piece (each) level, such as to support the emerging pharmaceutical pedigree requirements. When using EWM, serial numbers can be recorded during receiving and picking transactions via desktop and rf processing. Serial number capture is also integrated into packing. this allows the ability to pack multiple serial numbers into a container (handling unit) and move all of the serial numbers as a single unit with full traceability on each serial number. With the tight integration back to Erp, there is full visibility of serial number history via the SAp equipment master providing necessary data to support pedigree requirements. A significant improvement over SAp Erp WM with EWM is that visibility to the serial number is now possible at the storage bin level; supporting better information and the ability to perform directed serial number picking. using this functionality, you will have full visibility as to the exact location of all the serial numbers in your warehouse.

RFID Integration
the pharmaceutical industry in particular has to deal with the growing issue of counterfeit drugs. By deploying rfid tags to the pallet, case and even possibly the bottle or each level provides a strong deterrent to counterfeiting. ScM EWM is integrated with SAp Auto-id infrastructure (Aii). Aii is SAps rfid suite for managing Epc data, business events (tag reads) and controlling hardware. rfid processes that are integrated into EWM include: vehicle check-in vehicle unloading receiving location to location (Bin to Bin) Movements packing vehicle loading vehicle check-out

Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

Material Handling Equipment Integration

Many life Sciences companies use some form of warehouse automation today. this automation can vary from conveyor systems to A-frame picking systems. there continues to be a rise in warehouse automation in order to offset labor cost and improve efficiency, accuracy and productivity. in the past, these automated systems could be interfaced to SAp through the use of additional software components such as a warehouse control unit (Wcu) or warehouse control system (WcS) that would communicate to the plc (programmable logic controllers) of the automation equipment. SAp EWM provides integrated control of warehouse automation equipment with the Material flow System (MfS) module. MfS enables the control of warehouse automation equipment directly from the EWM system without the need for a separate warehouse control system. MfS can control equipment such as conveyors, sortation equipment, stacker cranes and automated storage and retrieval systems (AS/rS). MfS provides direct communication to plcs from SAp EWM. Monitoring of the plcs in your automated warehouse is fully integrated into EWMs monitoring tools.
Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

the following processes are supported through EWMs MfS: putaway

picking full pallet

pick hu (pick to pallet or pick to tote) replenishment rearrangement Empty pallet removal other MfS capabilities include real time integration between EWM and plcs as well as asynchronous data exchange via rfc. this makes background execution transparent to human users. MfS reacts with sub-second response times to acknowledgement of telegrams and tasks for dispatch. Material flow systems can also automatically sense failed plcs, perform blocking of resources, and redirecttasks.

STC2

STC3

0
STC1

4 2 3

DTh
L Point

Putback HU Transport off pick HU

Phb bin

5
Empty pallets

1
GR

Full pallets Pick HU

GI

Clarification bin

courtesy of SAp

This example comprises the following examples: 1. putaway 2. removal from storage from full pallets 3. Supplying the picking bin 4. putback 5. conveying off the pick hu 6. diversion to clarification bin

Production Supply and Receipt

SAp EWM supports various production supply methods such as: Staging of pick parts for pp orders in Erp Staging of release order parts for pp orders in Erp Staging of crate parts KAnBAn staging goods issue (consumption) of staged parts from EWM

Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

these staging methods will pick the correct components and materials based on picking rules such as fifo (first in first out) and will stage them to the correct production order. the same production supply strategies exist in EWM as what existed in Erp (WM-pp interface). SAp EWM also supports production receiving. goods receipt for production orders can be executed in EWM. Also, goods receipt for repetitive manufacturing is also supported. When used with batch management, serial number management and handling units, full traceability is maintained from raw material purchase through to shipment of the final product.

Process Oriented Storage Control

A major evolution in EWM over SAp Erp WM is the concept of process oriented Storage control. this functionality provides the ability to systematically model various operational steps in inbound, replenishment and outbound warehouse tasks. for example, your inbound process might involve unloading, counting, quality inspection, and finally, putaway. With process oriented storage control in EWM, each of these processes and tasks can be individually tracked and controlled based on products or attributes. this provides more granular control and visibility over your warehouse processes to ensure that all necessary steps are being followed. during an outbound process, a packing or double-checking step can be integrated to validate that the correct products were picked and are going to the right customers.

Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

the graphic above represents an inbound delivery that has been processed in EWM with process oriented storage control. the storage control steps that were used are unload (Step iB01 - movement from the docK to a gr-ZonE) deconsolidation (Step iB02 items being moved into a work center called dEKo that are being re-palletized into like units), and putaway (Step iB03 movement from the dEKo work center to a final destination bin in the warehouse).

Summary
fdA and cgMp rules and regulations are very strict in the life Sciences industry. EWM provides the track and trace capabilities and advanced functions that are required for these companies to stay in compliance. With the ability to handle complex, multi-step operations configured to your specific business processes and rules through recording data accurately and in real-time via rf or rfid, EWM is the platform for control and accuracy. SAp has been known for working very well in stringent and compliant business operations with techniques such as batch management, serial number management and handling unit management. With the latest EWM software, SAp has just expanded upon these techniques and made them easier to use and configure. With strong integration capabilities with rfid and Material flow Systems as well as advanced functions such as labor Management, yard Management and Slotting, EWM provides a large platform for future growth for any business. For more information on how SCM EWM or any SAP WM solution can optimize your warehouse operations, contact InfoLogix at 215-604-0691 or visit www.InfoLogix.com.
Applying SAp ExtEndEd WArEhouSE MAnAgEMEnt to A lifE SciEncES EnvironMEnt

Authors
Dominic Venieri Sr. SAp Solution consultant infologix Kyle Sorensen director SAp Solution consulting infologix

InfoLogix Leads the Way for Supply Chain Execution and Mobility Solution Services.
infologix has a unique mix of SAp ScM Execution and Enterprise Mobility expertise that deliver:
increased Supply chain velocity & Efficiencies increased visibility into Assets & data Streams increased control of the Entire Mobility lifecycle change Management & Business process optimization

Managing Editor
Jason Fradin vice president of Marketing infologix www.infologix.com

We help you optimize your mobile workers by delivering the critical business data needed directly at the point of decision. our winning combination of mobile computing technology and technical business knowledge enables us to pave the way for mobilizing your entire enterprise. our global Services group is comprised of expert SAp ScM consultants who can share a wealth of experience and knowledge in designing and implementing world class SAp ScM solutions and services to meet the exacting demands of multiple industries. With strong business best practices knowledge and acumen, our team can help to drive supply chain efficiencies throughout your organization.

About InfoLogix, Inc.

infologix is a leading provider of enterprise mobility solutions for the healthcare and commercial industries. infologix uses the industrys most advanced technologies to increase the efficiency, accuracy, and transparency of complex business and clinical processes. With 19 issued patents, infologix provides mobile managed solutions, on-demand software applications, mobile infrastructure products, and strategic consulting services to over 2,000 clients in north America including Kraft foods, Merck and company, general Electric, Kaiser permanente, Multicare health System and Stanford School of Medicine. infologix is a publicly-traded company (nASdAQ: iflg).

WWW.INfologIx.coM INfo@INfologIx.coM 215.604.0691 INfologIx, INc. 101 E. coUNTY lINE RoAD, HATboRo, PA 19040

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