Moving Warehouse physically (SAP WM)

[Former Member]

Hi All,

Requirement is to physically move a Warehouse from existing location to new location. Warehouse currently have standard Storage types and an ASRS (Automated Storage Retrieval System).

Please give your opinion what would be the best way to handle this, consider the following:

1. Mostly FIFO and Fixed bin strategies are used across

2. Have 300000 components approximately

3. Material movement is very frequent so cut over time should be less as much as possible

4. Old and new Warehouses are 5 KM apart approximately (So lets assume physically moving all components take 2 days)

5. Similar (or almost same) setup will be in new warehouse as well

6. Assume materials will not be in Intermediate Storage types during transition

7. Assume physical inventory count have been performed just before this

8. SUM not used

9. Version is ECC6.0 EHP4

Please suggest the best way to handle this based on your experience. Thanks in advance.

Regards

Ramprakash

[Former Member · Accepted solution]

If they are similar enough perhaps only address data would require updates and the physical moves can happen outside of the system? Just a thought

I can tell you the major issues I have seen during warehouse moves:

During a move stock was mixed on pallets to move to the new location and it took too long to sort the pallets at the new location to put the stock into the new bins. We stopped shipping the stock on mixed pallets (using sheets of cardboard to separate items/batch codes to avoid sorting the stock at the new location and it doubled (at least) the speed in which we were able to put the stock away. So I would recommend to avoid mixing stock that would need to be separated again if at all possible.

During another move only one inventory count was done and not down the batch code level. This caused huge inconsistencies in the actual stock VS system stock. We had batch codes expiring that didn't exist and we shipped expired stock because the batch codes in the system were wrong. I would push for two full physical inventory counts down the batch level before the physical move and a third after the physical move. The stock count should be at the batch level if you use batch management.

Also during a move management assumed we would be unable to ship for longer then it took to move the stock and they actually over-shipped to customers causing a huge amount of returns. So its very important to accurately judge the "down time" and not ship to little or to much before the move starts.

[former_member198492]

To allow a planned 'gap' in your customer demands you could always add a work calendar 'holiday' of the period you end up calcualting after you have project managed the entire process.

This will allow a window to physically transfer stock and your vendors will not have the 'hoilday' dates as delivery dates

Your Finance dept will have to agree also

It's just a thought. We use the gap process for our annual stock take to ensure all hands are on deck and counting rather than receipting and despatching

Regards

Darren

[mihailo_sundic]

Please give your opinion what would be the best way to handle this, consider the following:

1. Mostly FIFO and Fixed bin strategies are used across - not relevant

2. Have 300000 components approximately - noted

3. Material movement is very frequent so cut over time should be less as much as possible - as usual

4. Old and new Warehouses are 5 KM apart approximately (So lets assume physically moving all components take 2 days) - let's assume that, 300.000 components is much, but you know better what resources you have on disposal

5. Similar (or almost same) setup will be in new warehouse as well - OK

6. Assume materials will not be in Intermediate Storage types during transition - OK

7. Assume physical inventory count have been performed just before this - OK

8. SUM not used - good for you, if you end up doing a migration this will make your life much, much easier...

9. Version is ECC6.0 EHP4 - OK, but not really relevant.

My comments:

What I might say on this, is that if mostly similar setup will be in the future warehouse, the best way to minimize the impact on operative work, is to assign as much resources as you can to physical movement of the goods/equipment.
During the period of 2 days (or whichever you'll use to move these to a new location), you might even do some urgent deliveries, manually of course.
That would require you confirming the TOs and doing postings manually, if this is physically possible (e.g. goods not on 15th floor etc.).

I am not sure what would be the best approach, sine this is a complex project, and for this you need a project manager.
Not an SAP project manager, but a <project> project manager.
A sort like the ones working on projects in construction etc. You need to feed him the information and he can calculate the optimal way of performing your activities, which are the critical activities, and which time pool every activity has.

You may also be able to do this if you have knowledge in project management (harder part) and some PM software (which is the easiest thing since you can learn MS Project or Primavera basics in no time).
Let's assume you have a PM - you feed him the info on logistics, resources, SAP switch time estimates (I guess provided by you), and all the info he requires. After that he can calculate everything and come up with a project plan and criticals/optimals/time pools etc.

On SAP specifics, I could tell you that the best option is to try to minimize work, e.g. leave all the same and do some new storage bin creations and some relocations and to keep the same organizational structure. That would make your life easier.
But if you have too many differences, you might need to think about total migration...

[Former Member]

Hi All,

Thanks for responses. I have noted the following important points from your replies;

-Not mixing stock on pallets
-Physical inventory before/after at batch management level to be performed
-No customizing changes required
-Standard STO can be utilized (PGI at old WH and GR at new, if i go for new WH # in SAP)
-During transition no movements atleast for few days
-Move using planned movements (not 311)
-better "project" plan with optimal movements

I have following queries based on your replies:

@ jurgen:

"So it is basically a decision if you start the new warehouse like you would do it with a migration during a rollout"
       - If i go for this approach, how to deal with the stock in old warehouse number? Kindly give some more details about this approach. 

"TOs be confirmed before you can can move your items to another building."
       - You mean no open TO's to be available in entire WH? or any other meaning?

@ Mihailo

"On SAP specifics, I could tell you that the best option is to try to minimize work, e.g. leave all the same and do some new storage bin creations and some relocations and to keep the same organizational structure. That would make your life easier."
       - If i use the same WH # and i do only physical movement, why would i need new bins and relocations? Kindly give some examples.

"But if you have too many differences, you might need to think about total migration..."
       - Can you throw some light on "too many differences" and "total migration"

Regards
Ramprakash

[mihailo_sundic]

My answers are in bold.

@ Mihailo

"On SAP specifics, I could tell you that the best option is to try to minimize work, e.g. leave all the same and do some new storage bin creations and some relocations and to keep the same organizational structure. That would make your life easier."
       - If i use the same WH # and i do only physical movement, why would i need new bins and relocations? Kindly give some examples.

I meant if you have 99% same WH structure, you can manually do the work on those 1% in SAP. For those 1% you would need relocations / maybe new bins, maybe deleting some that will not exist in the new WH.

"But if you have too many differences, you might need to think about total migration..."

       - Can you throw some light on "too many differences" and "total migration"
I meant if you have massive differences in warehouse structure, comparing current and future WH, it's better building entire structure from scratch in WM since too many corrections makes the process prone to mistakes.

[JL23]

What part of the transition would you actually want to do with SAP?

300000 components is quite many, I don't believe you do that in 2 days,  but still I believe that SAP is quicker than the truck drivers.

As you have already a warehouse the processes in the new warehouse would not be much different, the customizing should not be an issue either.

So it is basically a decision if you start the new warehouse like you would do it with a migration during a rollout or if you even want to support the movements between old and new warehouses with all the standard stuff of creating stock transfer orders and deliveries and doing picking and confirmation, transportation, receipts and putaway.

You are saying material movement is frequent. I say you either stop this during your transition time, or you have to plan this very well, and to do this you would actually need system support to know at which time is what stock (not just in the system, as well physically, otherwise you create a mess). And a system can only support you if you enter data, e.g. plan the movements with above mentioned process. Just doing a 311 is not considered as a planned movement.

Not sure what I should do with the information to point 6. Of course have all your TOs be confirmed before you can can move your items to another building.

Point 9 does certainly not matter.