Integrating ERP, SCM & WMS Solutions

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Integrating ERP, SCM WMS Solutions
ERP World East Conference April 26-27, 1999
Steven Rodgers, Principal Waterstone
Consulting 1700 W. Higgins Rd, Suite 420 Des
Plaines, IL 60018 Phone [phone] Fax
[phone] Email srodgers_at_waterstone.com
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Corporate Identities Lost
With the ongoing wave of ERP implementations,
corporations, many for the first time, have been
able to integrate core business processes and
gain operational efficiencies. Unfortunately,
while in the midst of these strides, many
companies struggle to maintain their
individuality or more importantly their
competitive advantage.
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Corporate Identities Found
Extending ERP Post ERP implementation efforts
are now focusing on solutions aimed at enhancing
competitive advantage and regaining corporate
identity. Through the integration of advanced
applications and ERP, corporations get the best
of both worlds with integrated core processes and
advanced functionality.
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Extending ERPthe Next Wave
Mfg. Planning/Scheduling
Knowledge Management

Demand Planning
E-Commerce
Transportation Planning
Data Warehouse
Manufacturing Execution
Warehouse Management
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A Success Story
The Antioch Company

• Multi-million dollar manufacturer and distributor
  of diversified consumer products
• Global sales and distribution
• Multiple plant and distribution locations

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The Business Case

• Antioch faced the following challenges
• Explosive growth in domestic and international
  channels
• Growth took toll on existing systems
  capabilities
• Chose to implement ERP (SAP) solution
• Soon discovered need for advanced capabilities
  not offered via SAP to support complex shipping
  and distribution needs

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The Solution

• Implement DCS, an integrated WMS software and
  hardware solution, and interface with existing
  SAP R/3 ERP system
• Develop seamless interface between the SAP DCS

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The Project Phases

• 1. ERP implementation and extension strategy
• 2. Functional, technical and systems requirements
  analysis
• 3. Software hardware vendor evaluation
• 4. Implementation

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Implementation Details

• 1. Determine interface responsibilities
• 2. Establish file format
• 3. Write and set up programs for extracts, ABAP
• Extract SAP IDOC translate to DCS format
• Convert DCS to IDOC
• Custom IDOCs can be used

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Implementation Details

• 4. Test files and interface for technical
  execution, fine tune
• 5. Test files and interface for data integrity,
  stress, and volume

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Interface Options

• File
• Translation programs
• LAN
• ABAP
• ALE
• IDOC
• File Transfer Protocol (FTP)

• Electronic
• Remote Function Call (RFC)
• IDOC
• BAPI

• Advanced Electronic
• BAPI
• ABAP
• File Transfer Protocol (FTP)

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The Project Interfaces

• Interface development included 6 modules
• 1. Orders download SAP delivery due list to DCS
  warehouse pick list
• 2. Orders upload DCS confirmed picking requests
  to SAP for post goods issue inventory
  reconciliation
• 3. Planned receipts download SAP purchase
  orders and stock transfer orders, to DCS
  warehouse receiving
• 4. Receipts upload DCS receipts to SAP purchase
  orders, and stock transfer orders, and inventory
  reconciliation

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The Project Interfaces

• Modules continued
• 5. Inventory extract SAP on hand inventory
  quantities to DCS for inventory
  synchronization, exception reports,
  adjustments, cycle counting
• 6. Inventory upload DCS on hand inventory
  quantities to SAP for adjustments and
  synchronization

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Sample Interface
SAP
IDOC CUSTOM
ALE
LAN

• ABAP
• Extracts
• Batch
• Confirmation
• Process
• Data Purge

DCS

• ABAP
• File Transfer
• Protocol

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The Results
Today at Antioch

• Integration of SAP and DCS supported a six fold
  increase of distribution center volume
• reduced picking time
• increased inventory accuracy
• maximized floor space utilization
• Enhanced customer service
• Reduced order processing costs

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Lessons Learned

• 1. Map out holistic extension strategy before and
  after ERP implementation
• 2. Extensive requirements analysis both
  functionally and technically e.g. OS
  compatibility, enhanced functionality
• 3. Know your 3rd party software providers
  references, reputation, live installations,
  staying power, after sales support
• 4. Seek our integrated software and hardware
  providers where applicable

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Lessons Learned

• 5. Manage Scope Creep
• 6. Know cost/benefits of electronic integration
  e.g. software investment VS. maintenance
  implementation cost
• 7. Document, DOCUMENT, DOCUMENT configuration
  changes, interface logic, business processes and
  scenarios

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Conclusion

• Questions Answers!