This document discusses optimizing logistics with handling units in SAP. Handling units allow companies to track the location and status of grouped materials. Receiving, inventory management, shipping, quality management and warehouse functions can all be improved with handling units. Their implementation requires consideration of integration across systems and changes to business processes. Handling units provide value by simplifying material flows and enabling increased velocity through the supply chain.

1. Optimizing Logistics
with Handling Units ]
[ LYNN LUPO
SAP POINT OF CONTACT
Andy Iska
MEMBER SINCE: 2000
Principal Consultant
Ankunft LLC
[ PAUL SHEPHERD
ASUG INSTALLATION MEMBER
SINCE: 2003
[
[ ANDREA BENSON
ASUG INSTALLATION MEMBER
MEMBER SINCE: 2003

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
aiska@ankunft.biz
Real Experience. Real Advantage. 15

16. [ Contact Information
For further information please contact:
Andy Iska (aiska@ankunft.biz)
Real Experience. Real Advantage. 16

17. [
 Thank you.
]
Andy Iska
aiska@ankunft.biz
Real Experience. Real Advantage. 17