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Warehouse Management at Ford with SAP EWM

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Maryan Jacek - Ford Motor Company Philippe Bouchot - Deloitte

SAPience.be User Day 2012

Agenda
Introducing Ford Motor Company & Deloitte

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Why SAP Extended Warehouse Management


Scope & Implementation Approach Challenges Lessons Learned Business Benefits using SAP Extended Warehouse Management Next Step for EWM at Ford Q&A

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Introducing Deloitte

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Introducing Ford
PS&L - 5 Key Functions Packagers Suppliers Warehouses Dealers /Retailers

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Consumers

Service Parts Release

Purchasing & SCM

Inbound Transportation

Warehouse Operations

Outbound Transportation

Key Figures
2.840 suppliers 2.808 ship-to addresses 227.000 parts 21+ European markets 86 other countries 8 parts depots in Europe 130.000 order lines/day 240 outbound truck /day 62.500 inbound trucks / year 65.000 outbound trucks / year

UK Daventry 166.000 m 115.000 parts

Germany Cologne 120.000 m 135.000 parts

Spain Valencia 39.000 m 83.000 parts

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Why SAP Extended Warehouse Management


November 2001
Ford Motor Company & Caterpillar starts a contractual alliance aiming to build a new Service parts Management solution

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Alliance to develop a Service Parts Management Solution


Intellectual Property Know-how Capability Scalability

SAP SPM Solution


SAP CRM
Customer Relationship Management

SAP ERP
Enterprise Resources Planning

SAP SCM
Supply Chain Management

January 2003
Deloitte joins the program as system integrator

SAP SPP July 2002


SAP is selected to codevelop the solution
Service Parts Planning

SAP EWM
Extended Warehouse Management

SAP EWM
SAP Extended Warehouse Management as part of the new SPM Solution to cover specific warehousing business requirements High Volumes Complex Multi-Step Processes Specific functionalities (Slotting, Rearrangement, ) EWM becoming the cross-industry standard Warehouse Management Solution from SAP

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Ford Warehouse in France


Key Figures
36.000 m2 32.000 materials Carousel (40% of the warehouse materials) Inbound: 800 Lines (10 Trucks) Outbound: 15.000 Lines (20 Trucks) 150 workers, 1 shift 320 dealers served ISO 14001

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Systems to be replaced by SAP EWM


PORTS: receiving and putaway S&R: reserve stock and replenishment SCRAP: scrapping CYCLE COUNT: counting MOSAIC: lost and found GOLIAT: picking, packing and shipping operations

Introduction of Radio Frequency

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Functional Scope
Inbound Processing
Receive ASN data
Core Warehouse Operations and Inventory Management

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Storage and Operations


Rearrangement Inventory Counts Replenishment Freight Order Management Kit-to stock

Outbound Processing
Order deployment Route Determination Wave Management Picking Bin Determination Warehouse Order Creation Work Assignment Picking Packing Staging Loading & Goods Issue

ASN Validation & Correction Transporation Unit Arrival Manage Transportation Unit Goods Receipt Putaway Bin determination Unload Transportation Unit Internal Routing Slotting

SAP SCM-EWM 5.0 SAP SCM-EWM 5.1

Deconsolidation
Putaway Returns / Reverse Logistics Goods Receipt - Optimization

Kit-to order
Manual outbound deliveries Production Supply

SAP SCM-EWM 7.0


SAP SCM-EWM 7.0 EP1

Cross Processes

Transportation Cross Docking Picking GR/ Push Deployment Yard Management

Labour Management Opportunistic Cross Docking Merchandise Distr. X-Docking

Task Interleaving Execution Constraint Semi-System-Guided work

Ford France EWM Scope Ford Europe EWM Scope

Packaging Specification
Supporting Functions

Integration to QIE RF support for all exec.processes Batch Management Serial Numbers Integration to Transp. Processes

RFID Enablement Material Flow System Warehouse Cockpit Graphical Warehouse Layout Claims & Returns

GTS Integration EH&S Integration eSOA enablement Catch Weight

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Implementation Approach
Global Template Approach
Global blueprint Global prototyping 80 % commonality
Global Template Regional/Local Requirements

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Ford France Implementation Strategy Inbound Go-Live (big bang)


Unloading, Quality Management, Putaway to primary bins Outbound & Internal processes (Waving, Picking, Shipping, Physical Inventory, Replenishment, )

Outbound Go-Live by Zone split in 3 phases

Documentation

Country versions

Local developments Local processes

Approach by phase/zone
Define processes, areas and volumes to reduce risks and impact on the operations Learn from each phase

Structures and settings Global customer developments

Master data documents

Organizational structure

Global and integrated processes

Phase Inbound Outbound 1

Area

% Shipping Lines

% Materials Stored

Carrousel Pilferable

28 %

41 %

Outbound 2

Large Parts Engines Pack. Mat

2%

2%

Outbound 3

Whse B Whse A

11 % 59 %

10 % 47 %
Warehouse Structure

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Challenges
First Ford warehouse worldwide Business

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IT

Process harmonisation from Global Template Introduction of RF scanners Change Management Ship Orders from two different systems (Implementation Strategy) People

Performance Upgrade to 5.1 Interface to automated warehouse system (Carousel) Temporary Interfaces (Implementation Strategy)

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Challenge: Focus on the Outbound Process

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D+1

Stock Order 4h30

Rush Order 12h & 16h

IVO 17h15 & 18h

D+2

Outbound Organization 2009

Planning & Optimization


Route Determination Wave Management Warehouse Order Creation Step 1

Execution
Process Oriented Storage Control

Step 2
Packing

Step 3
Staging

Step 4
Loading

Tole
RTCZ Warehouse HCE HCE

Picking
Activity Areas for Single Customer Picking

Step 1
Picking

Step 3
Staging

Step 4
Loading

Tole
CE Example of Activity Area Determination at Wave Release RT
CEZ
CH

Activity Areas for Multi Customers Picking

C1

C2

C3

C4

C5

C6

C7

C8

C9 C10
Single Customers Picking

Multi Customers Picking (10)

D+1

Stock Order 5h30

NDD 11h

Rush Order 15h45

D+2 IVO 17h30

New Outbound Organization 2010

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Lessons Learned
Involve key users in the project team as soon as possible Practical training Go for phased go-live approach limits impact & risks Privilege SAP EWM standard in process design Do not hesitate to challenge existing processes

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Transportation Planning Ford Specific Development


Transportation Planning driving the outbound process Daily deliveries assignment to trucks Done by external Transportation Planner

IT Benefits
SAP Support Reduce Development efforts Reduce Testing efforts Business Benefits Controlled flexibility Reduced change on operations Educate People

Option 1 Keep existing process Develop Ford specific Transportation Planning

Option 2 Fix Transportation Planning SAP Standard Route Determination

Change to SAP Standard Prefered Option 10 months after Go Live

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Business benefits using SAP Extended Warehouse Management


On the shopfloor Improve Tracking & Monitoring Real time information at any stage of the process via the Monitor Detailed shipping box information Improved communication with customers Increase Quality with RF confirmation all processes Picking Same picking performance although RF scanning has been introduced Reduced picking waiting time with new Replenishment process Same picking denial rate although Inventory has been reduced by 20 % Improved picking error rate (0,16 0,12) Inventory Management (integration with SAP Service Parts Planning) Reduced Inventory by 20 % Reduced Obsolescence and Scrapping by 10 % (Ford of Europe) Increased Fill rate (+ 0,5 97%)

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Continuous Improvment using SAP Extended Warehouse Management Information availability & accessibility for analysis Flexibility in standard processes - Wide range of parameters & settings (Customizing and Application) Improvments implementation done internally (New Transportation Planning & Waving in 2010)

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Next Step for EWM at Ford

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EWM Implementation in Daventry UK - Ongoing Live Inbound Live Outbound for 50 % of the shipping volume Final Outbound Go Live in July Upgrade to EWM 7.0 EP2 Implementation in Germany & Spain Voice Picking in France

SAP SPM Solution


SAP CRM
Customer Relationship Management

SAP ERP
Enterprise Resources Planning

SAP SCM
Supply Chain Management

SAP SPP
Service Parts Planning

SAP EWM
Extended Warehouse Management

Central European Planning Whse FR Whse UK Whse GE

Planning

Global Template

Whse SP Other Whse Com FR

Warehousing

Com UK
Com GE Com SP Other Com
Commercial

Ford BTR Europe Rollout Plan


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Q&A

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Questions ?

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Thank you!

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