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Optimizing Logistics With HUs
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Optimizing Logistics With HUs


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  • 2. [ Agenda  Overview of Handling Units.  Receiving Handling Units.  Handling Units & Inventory Management.  Shipping Handling Units.  Interplant and Intercompany Transfers with Handling Units.  Handling Units in Production.  Warehouse Management and Handling Units.  Quality Management and Handling Units.  Packaging.  More of HU Integration.  Lessons from Go-Live.  Summarizing Handling Unit Management.  Questions. Real Experience. Real Advantage. 2
  • 3. [ What is a Handling Unit?  A Handling Unit(HU) can be thought of as a system representation of a real world grouping of materials.  Location/Status information of a group of individual materials assigned to a HU can be tracked by recording the HU move.  A Handling Unit has a unique number identifying it. The unique number can be formed to the specifications of industry standards such as EAN 128 or SSCC. The HU grouping of materials is generally tagged with the scannable HU identifier.  The HU data entity can contain additional information such as volume, weight, dimensions, packaging material, status etc.  A HU can maintain a historical record enabling backward traceability and can thus assist in product recalls. Real Experience. Real Advantage. 3
  • 4. [ Receiving with Handling Units  An Inbound Delivery with pallet/packaging information can be verified and received using Handling Units.  Handling Units can be reused eliminating the need to re- associate a group of materials with a new handling unit and a corresponding new tag as it moves through the supply chain.  HUs eliminate the need to use less efficient forms of pallet/package identification in container load shipments.  An ASN sent by a vendor can automatically create HUs along with the Inbound Delivery document.  Seamless accounting of returnable containers/packaging. Real Experience. Real Advantage. 4
  • 5. [ Handling Units & Inventory Management  Handling Unit Management(HUM) is specified at the organizational unit of “Storage Location”.  At a HUM location all stocks need to be associated with at least one Handling Unit.  A HUM location requires a partner non-HUM location. Any unpacking at a HUM location automatically moves the inventory into the non-HUM location.  Movement of material in a HUM location requires a Handling Unit to be specified.  Handling Units enable fast and efficient material movement. Real Experience. Real Advantage. 5
  • 6. [ Shipping Handling Units  HUs can be picked whole, or partially via Pick-HUs.  Eliminates the need to explicitly specify packaging information at time of shipment.  ASNs sent to customers can include packaging information.  Package volumes, weights and dimensions are available for shipment planning.  Backward traceability available thus helping with the resolution of product issues.  Delivery picking can be restricted to only certain package types, based on individual customer specifications.  Seamless accounting of returnable containers/packaging. Real Experience. Real Advantage. 6
  • 7. [ Interplant/Intercompany Transfer w/ HUs  Picking of groups of materials via HU picks.  HU information automatically updated in Outbound Delivery.  HU information automatically updated in Inbound Delivery.  Putaway of groups of materials via HU put away.  HUs & HU tags reusable across different facilities.  Record of activities with respect to HU throughout its life within the organization. Helps with traceability requirements. Real Experience. Real Advantage. 7
  • 8. [ Handling Units in Production  Packing information can be specified and recorded at time of production rather than at time of shipping.  Order independent staging of HU to non-HU location. Material backflushed and/or issued like in non-HU environments.  Order independent staging of HU, and HU issued to production order. Or HU assigned to order and backflushed.  Order specific staging and issue to production order.  Order based, repetitive and process manufacturing supported.  Goods receipt by HU.  HU can be assigned to a sales order at time of production*. Real Experience. Real Advantage. 8
  • 9. [ Warehouse Management and HUs Handling Unit Storage Unit Packing Information No Packing Information Nesting Possible Single Level Independent of Warehouse In Warehouse Only Serial Numbers No Serial Number Information Storage Location Info Only Complete Location Information Real Experience. Real Advantage. 9
  • 10. [ Handling Units in Quality Management  Inspection lots are assigned to Handling Units.  Samples can be at HU or inspection lot level.  Usage decision and transfer posting by HU Real Experience. Real Advantage. 10
  • 11. [ Packaging  At least one packaging material is required for creating a HU. The required packaging material is identified as a load carrier.  Packaging conditions can be created when consistent packs are being delivered to customers and received from vendors.  Automatic and/or semi-automatic creation of HUs possible.  Business processes involving returnable packaging functions are supported. Real Experience. Real Advantage. 11
  • 12. [ More of HU Integration  Serial numbers of products can be associated with a HU. Thus tracking of serialized products becomes considerably easier with the association to a HU.  Batch information is stored along with the product in a HU.  Handling Units nicely dovetail into the functionality of Value Added Services(VAS).  HUs are used to represent Trucks/Containers in Yard Management.  Physical and Cycle Inventory can be conducted at HU level.  Baseline RF transactions for HUs are included.  SCM EWM makes extensive use of handling units with some functions such as process layout functionality requiring the use of Handling Units. Real Experience. Real Advantage. 12
  • 13. [ Lessons from Go-Lives and Implementations  Complexity and effort required in the conversion of inventory into a HUM environment is frequently underestimated creating bottlenecks and issues during cutover.  Not enough retraining planned for experienced SAP users.  Change of thought paradigm required particularly in environments not used to LPN or SU concepts.  Lack of adequate testing on-site with hardware such as label printers and RF equipment included in the test.  Not enough cross functional involvement and ownership. HUs affect multiple functional processes and thus require involvement from multiple areas. Real Experience. Real Advantage. 13
  • 14. [ Summarizing Handling Unit Management  Handling units can simplify and accelerate movement of goods through supply chains.  Handling units integrate through most of SAP’s functionality.  Implementation of HUM in an environment with movement of packaged material provides a compelling return on investment.  Handling units facilitate a higher velocity of material flows.  HUs provide proven functionality and value in environments where packing information is materially relevant.  Handling units are intrinsic to many new functional developments from SAP and thus provide strategic value in environments where SAP products form the backbone of the enterprise software systems. Real Experience. Real Advantage. 14
  • 15. [ Questions Real Experience. Real Advantage. 15
  • 16. [ Contact Information For further information please contact: Andy Iska ( Real Experience. Real Advantage. 16
  • 17. [  Thank you. ] Andy Iska Real Experience. Real Advantage. 17