Extended Warehouse

Management
Leverage EY expertise
to transform your
value chain
Warehouse management: challenges and realities

Today’s complex supply chain realities and

difficult economic conditions are making it
more important than ever for executives and
managers to feel confident in their decisions
regarding IT investments.
Understanding many options in selecting
a suitable warehouse management system
(WMS) is critical to meet both current and
future business requirements.

Manufacturers and distributors in the industrial sector are under Key problems undermining
severe pressure to increase the productivity and performance warehouse management
of their warehouse operations in the face of growing cost, performance are:
complexity and customer demands.
The warehouse management challenges are particularly acute
while manufacturers struggle to seize new market opportunities
globally, improving their customer focus, increasing operational
efficiency and even engaging in new product and service life
cycle management activities.
Realization of value in
As customers become increasingly demanding and supply
terms of return on
chains increasingly global, profitability of manufacturers
investment (ROI)
and distributors is at risk. If the warehouse operations are
inadequate, it will be increasingly difficult to address rising Excessive labor cost
customer expectations and seize new market opportunities. Inefficient warehouse
operation

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 Companies are not able to realize value fully because they can not keep pace with the
evolution of the demand-driven network.

Supply chain execution must evolve to meet market challenges.

External challenges
• Evolving consumer demands and • Technology advancing at the speed of light
marketplace • Workplace and workforce of the future
• Next generation or scale • Macro-uncertainty

Supply chain execution issues

Growth is challenging,
consumer behavior is changing

Supply chain execution opportunities

Internal challenges
• Extended supply chains have become • Trade term supply chain discounts are not
more complex tracked for compliance
• Additional risk is associated with lean • Increasing external events leading to
supply chains significant increase in cost, operational
• Costs are not intrinsically linked to what disruption and damage to brand
drives customer value • Traditional approach to risk management
• Inability to understand the service or cost does not take advantage of predictive
implications of channel requests analytics

To meet the challenges while still executing Supply chain evolution

an agile supply chain, a different approach is
needed. Demand-driven network
EY can help customers to meet challenges by:
Integrated supply chain
• Aligning supply chain service based on real
commercial value Supply chain management
• Underpinning channel segmentation with
accurate cost-to-serve analytics Functional silos
• Taking an end-to-end view of the supply
Performance
chain when reinventing operating model
execution

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EY services for SAP® Extended Warehouse Management

EY services for SAP® Extended Warehouse

Management (EWM) help customers streamline
and manage warehouse processes and transform
their value chain to gain better operational
control, and improve efficiency and productivity.
Our services span from initial transformation
strategy to business enablement and value
realization.
EY focuses on integrating the different layers
of supply chain execution covering logistics
effectiveness, business process and analytics.

From inventory control, shipping and receiving, to order fulfilment, a WMS is

vital to improving the efficiency of a company’s warehouse operations.

EY offers end-to-end services covering business Solution highlights

process diagnostics, warehouse design, • Warehouse analytics and monitoring
optimization and implementation services to fit
• High performance warehouse execution
the needs of:
• Seamless integration with SAP Business
• Manufacturing and distribution industries Suite and other legacy applications
that operate their own warehouse echelon
• Comprehensive mobile offering for
systems
warehousing
• Third-party logistics (3PL) service providers
• Retailers who want to streamline their
warehouse operation to support growing
omnichannel distribution movement

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EWM: core functionalities and features

Inbound processing Storage and operation Outbound processing

• Goods receipt • Task and resource • Outbound planning

management management and labor • Wave planning
• Goods preparation planning • Material flow systems
• Putaway planning • Slotting and rearrangement (MFS) — automated material
• Quality management, • Replenishment handling integration
return handling, • Storage — putaway, physical • Picking, packing, staging
deconsolidation, internal inventory and value-added and loading
routing and cross docking services • Yard management

Import and export Dangerous goods Native technologies Batch, serial number,
compliance handling (RF, RFID, voice, MFS) catch weight mgt.

EWM: warehouse analytics and reporting

Supply chain manager Labor management dashboard

Key performance indicators:

• Warehouse activity area (volume or weight)
• Worker performance (average or per
execution step)

Warehouse supervisor Cross-distribution center dashboard

Key performance indicators:

• Outbound delivery items (value or number
per worker)
• Service level analysis (% delivery errors or
% on time)
• Warehouse capacity usage (% level or stock
value)

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 How EY has helped companies improve their
operational performance
• Streamlined of supply chain and logistics • Introduced better inventory control with
processes by adopting leading practices proper replenishment and pick strategy
• Improved customer service levels (reduced • Ensured compliance with regulatory norm
order-to-cash cycle (OTC)) for services delivered to specific customers
• Increased efficiency and productivity of • Increased visibility and control of warehouse
warehouse operation and resources operations with warehouse monitor and
• Improved accuracy — with use of cockpit dashboard
real-time integrated devices • Introduced process automation — doing away
• Reduced inventory and labor cost with manual and paper work

Our approach
• Establish industry-leading practices • Perform pre- and post-implementation
for warehouse process prior to system audits to measure project success and
blueprint design leveraging the EY business identify additional opportunities
transformation practice • Integrate critical management tools
• Define KPIs and benchmarks to identify including reporting, analytics and
opportunities and the focus for the project dashboards to manage operations
charter
• Throughout the implementation, track
business requirements to the design and
process improvement objectives

How we can help you

• Automate and streamline your logistics • Devote more time to building the business,
processes potentially increasing throughput as EY will provide all systems support,
• Overcome problems of stock visibility and continual help and systems improvement
traceability, improve picking accuracy, avoid whenever needed
losses made through non-deliveries, wrong • Fully mobilize your enterprise application
deliveries, returns and service level fines integrating warehouse management solution
• Provide visibilities across your operation with wireless networks, mobile computers,
to identify areas of blockage and wastage, radio frequency identification (RFID)
thereby providing information to all key technology and voice-picking applications
managers so that they are fully up to date thereby improving operational efficiencies
with detailed information as well as KPIs and enhancing your customer service level

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 Why EY?

SAP strategic Global delivery model

partner and talent hub

Tailored
solution
Strong supply chain
SCM, ERP, GTS,
management and
BI expertise
Why consulting skills

Industry EY? Thought

insights leadership

30+ Global
implementations footprints

Pragmatic Strategic
approach acquisition

EY’s global client credentials

• India’s first unified supply chain and • Leading global retailer in Mexico
infrastructure 3PL Group • Leading food manufacturer in Germany
• Leading petrochemical organization in India • Pharmaceutical manufacturer in Germany
• Leading petrochemical organization in • Spare part business — automotive
Middle East aftermarket in Germany
• Large US manufacturer of frozen products • Global industrial products manufacturer in
• Fortune 500 US spare parts distributor Germany

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 EY advantage
EY is a SAP Global services partner that is fast Our in-depth experience with SAP LES and
becoming recognized as an industry leader in EWM products and functionality along with our
end-to-end supply chain services. With focus close relationship with SAP provides us with an
on the logistics execution systems (LES) and intimate knowledge of the development vector
the supply chain execution (SCE) components SAP is applying to the LES and EWM product
of the SAP application suite, coupled with suite. This allows us to advise customers on
EY’s already established SAP planning and strategic operational decisions, provide them
procurement capabilities, EY offers our clients with detailed information on key integration
supply chain services that help organizations to points, and quickly assist them in identifying fit
gain operational efficiencies and manage costs or gaps with current and future release levels.
related to their supply chain operations. EY’s strategic acquisition of Germany-based
Our SAP and supply chain consultants share J&M Management Consulting AG in February
a wealth of experience and knowledge 2013, and US-based Logistar in April 2014,
when it comes to designing and helping have helped EY to strengthen its services
implement leading SAP logistics and supply in supply chain and logistic services to take
chain services, with noted experience in SAP prominent position as a leader in supply chain
planning and optimization (APO and S&OP globally.
cloud solutions), LES, WM,EWM, transportation Logistar was a renowned name in leading
management (TM), procurement (including supply chain execution services offering
Ariba and SRM), and automatic data collection. services in logistic and warehouse management
Our SAP consultants were, and continue to and distribution network optimization to clients
be, key players in SAP’s internal, pre-release in the US, Canada and Mexico.
testing stage for EWM in Walldorf, Germany.
J&M Management Consulting AG was a
Our consultants also played an integral role
supply chain leader in Europe with extensive
with pre-release testing of SAP’s native
EWM implementations. It was a multiple
radio frequency data collection product,
award winner in supply chain management
SAPConsole.
engagements.

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Reach out to us
To know more about our EWM services, reach out to following subject matter experts. Our office
addresses are mentioned on page 9 and 10.

Americas
Kevin College Kyle J. Sorensen
Executive Director, Executive Director,
Philadelphia, US Minneapolis, US
Direct: +1 215 4484 123 Direct: +1 612 371 6823
[email protected] Mobile: +1 612 325 9036
[email protected]

EMEIA
Helge Konig Gautam Bhattacharya
Partner, Düsseldorf, Germany Partner, Bengaluru, India
Direct: +49 211 9352 18139 Direct: +91 80 6727 5144
Mobile: +49 160 939 18139 Mobile: +91 99019 933324
[email protected] [email protected]

Kamal Bablani Jayant Kulkarni

Partner, Dubai, UAE Director, Mumbai, India
Direct: +971 4 332 4000 Direct: +91 22 6192 0199
Mobile: +971 56 4127 318 Mobile: +91 98196 20236
[email protected] [email protected]

Asia-Pacific
Andrew YS Huang Steve Au Yeung
Partner, Shanghai, China Senior Manager,
Direct: +86 21 2228 8888 Shanghai, China
Mobile: +86 156187 52737 Direct: +86 21 2228 8888
[email protected] Mobile: +86 185210 70105
[email protected]

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 EY offices
Americas
Minneapolis
Suite 1400
220 South Sixth Street
Minneapolis 55402
Tel: +1 612 343 1000
Fax: +1 612 339 1726
Philadelphia
One Commerce Square
2005 Market Street, Suite 700
Philadelphia, Pennsylvania 19103
Tel: +1 215 448 5000
Fax: +1 215 448 4069

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EMEIA Asia-Pacific
Bengaluru Mumbai Shanghai
6th, 12th & 13th floor 14th floor, The Ruby 50th floor, Shanghai World
UB City, Canberra Block 29 Senapati Bapat Marg Financial Center
No.24 Vittal Mallya Road Dadar (W), Mumbai 400 028 100 Century Avenue
Bengaluru 560 001 Tel: +91 22 6192 0000 Pudong New Area
Tel: +91 80 4027 5000 Fax: +91 22 6192 1000 Shanghai 200 120
Fax: +91 80 2210 6000 Tel: +86 21 2228 8888
NCR
Fax: +86 21 2228 0000
Dubai Golf View Corporate Tower B
Al Saqr Business Tower Sector — 42, Sector Road
28th floor, Dubai 9267 Gurgaon 122 002
Tel: +971 4 3324000 Tel: +91 124 464 4000
Fax: +971 4 3324004 Fax: +91 124 464 4050

Düsseldorf
Graf-Adolf-Platz 15
Düsseldorf 40213
Tel: +49 211 9352 0
Fax: +49 211 9352 550

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All Rights Reserved.
EYG no. AU3515
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