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Former Member

Validating FIFO at warehouse

Hi,

We are facing with challenge of warehouse workers not following the FIFO in their picking list for Raw materials, I want to develop a process for the warehouse manager to extract list of TOs or material movement where FIFO was not followed.

or Is there a way to extract "GR dates" and "Last movement" information in one table

Appreciate it

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8 Answers

  • Jan 05, 2017 at 02:48 PM

    What is your process for FIFO? Based on your question, it does not look like you are using system directed picking which would ensure FIFO. Are you batch managed?

    Even if you got the last movement dates or movement history, you still have to go back to a snapshot of the the quants that does not exist any more. I think you are looking at a solution that would be better suited to a data warehouse that trying to deal with it on the main SAP system.

    That said, knowing your process might help come up with other solutions... such as maybe you can have a user exit that actively logs data that does not match your expectations for a movement.

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    Former Member
    Jan 06, 2017 at 07:51 AM

    Thanks Raghu,

    We are using system directed picking lists in batch environment, in which system consider GR dates for FIFO.

    Yes, BW option might be one approach maybe LQUA, but my warehouse manager has some challenges there and wants to find a solution within SAP. We know that some pickers are not following System generated lists and are picking up materials based on their own comfort. With more than 250 pickers at location, manager wants to identify who needs more "training" to address this behaviour issue. Kind of proving to workforce the strength of SAP

    Hope it has provided you more clarity around our peculiar challenge.

    Regards

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    • you have not answered whether you use batch managed materials or not.

      Without batch management it is not possible to retrieve this information, the only place where this info is stored if you do not use batch management is in table LQUA, and the entry from LQUA is deleted if the quantity becomes zero.

      If you add to existing stock you can also no longer rely on the GR date of the quant either.

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    Former Member
    Jan 08, 2017 at 05:30 PM

    Yes, Raghu, we do use batch managed materials, I mentioned that as "in batch environment" above.

    So do you think that we have a solution in our case? appreciate your help and dircetion.

    Regards

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  • Jan 09, 2017 at 09:07 AM

    Sort the TOs by creation date check if there are TOs with batch number that do not follow the sequence of batch creation date.

    Who is actually creating the TOs? Is that done by the warehouse workers themselves? How is it possible to pick wrong batches, they should be either determined via batch search strategy in the delivery or latest at TO creation.

    If people pick other batches then it does not match with the TO and confirming the TO would just create a inconsistency between the physical stock and the book stocks. So the issue would be much bigger than just FIFO violation.

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  • Jan 09, 2017 at 10:39 PM

    How are the users over-riding the suggested batches - I feel like I am missing a key piece of information here? What is this system generated list? I am guessing in your case it is not a list of Transfer Orders. When the list is generated, how is the work distributed to the 140 workers? Paper, custom program, delivery document? And to echo Jürgen's question - I am guessing that the users are creating the TO's while picking - Is this a custom RF program?

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    Former Member
    Jan 11, 2017 at 06:57 PM

    Hi,

    We have a very different setup, as it is a unionized working force and controlling behavior is not that simple. So Production supervisor printout the picking list for production batch. List has material with batch numbers based on GR Dates (FIFO). But as the material are scattered / stored around the production & storage area, so some workers are picking up the "correct material" but "incorrect batch" (then what is specified on the picking list, but they do also record the batch number picked (manually or thru scanners) in corresponding TOs. Recording is done by the pickers in SAP as well as written on picking list which is afterwards updated in SAP by unionized clerks while creating TOs.

    We are looking for a transaction which will generate a list from which we can identify the picking activity in which FIFO was not followed and pickers collected the material other then specified in the picking list. That is to compare the picking list and the corresponding TOs generated later on and identify the variation based on Batch numbers.

    I suggested a solution, outside SAP, i.e. extract report using LX02 and use Excel to extract that list, but warehouse manager is looking for an option within SAP for reason listed above.

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    • Being organized in a union cannot be an excuse for violating company policies.

      You can create a report outside SAP just as a one-time job to show evidence that it happens and how much it happened.

      Then you should reorganize the process and create TOs for what it has in the name, ORDER, before picking is done, not after, for the purpose of being proactive instead of reactive. This way it can be checked and seen immediately if a wrong batch is picked and you always have reliable inventory.

  • Jan 12, 2017 at 11:16 AM

    The bottom line here is that you are not using SAPs WM or batch search strategies to drive your business process. You are using a custom "system" which is essentially outside SAP (by using paper) and not fully online (writing and updating afterwards). By nature, such a system is going to be fraught with issues that are solved by directed picking and by a fully online system. That aside, just like your custom picking list, your solution has to be custom too.

    One idea would be to save the "picking list" that you are creating into a table at the beginning of the day as a snapshot of the expectations of what is to be picked. At the time of TO Confirmation, using one of the user-exits, you could compare the actually picked batch with the expected list. If the picked batch is not on the list, then log an entry in another table that can be reviewed by the Production supervisor. The hardest part is going to be tracking down who actually did the work if the clerks are entering the data manually using LT11/LT12. If you have a custom program using function L_TO_CONFIRM, you can pass information identifying the actual user in either the QNAME or PERNR fields.

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    Former Member
    Jan 12, 2017 at 01:20 PM

    Thanks Jurgen and Raghu,

    Basis this conversation I have convinced the manager that there is nothing in SAP which can provide direct help and have developed an Excel sheet which identify all the FIFO violation with complete incident information.

    Hopefully, this will solve the issue or reduce it to manageable level.

    Thank you very much for your time and guidance.

    Regards

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