The document discusses warehouse management strategies in SAP, including putaway and picking strategies. It describes defining storage types, sections, and bins to logically organize the warehouse. Putaway strategies help assign optimal storage locations for incoming goods, while picking strategies help assign the best picking locations for outbound movements. The document also outlines key warehouse management transactions and processes like goods receipt, transfer order creation, and stock overview.

1. Contents
WAREHOUSE MANAGEMENT
Enterprise Structure
Master Data
Strategies
Putaway Strategies
Pickaway Strategies
Physical Inventory WM point of view

2. Purpose of Warehouse
Define and manage complicated warehousing structures
Information of material at Bin level
Optimize material flow using advanced put-away and picking techniques
Material attributes are taken into account
Capacity Check at Bin level
Process goods receipts, goods issues and stock transfers accurately and easily
Interface with other module/sub-modules
Shelf life items and Hazardous items handling

3. Warehouse Management
• Highest level in warehouse - warehouse number
• Assigned to a combination of Plant and Storage Location

4. Enterprise Structure
Create Warehouse Number
Assign Warehouse No to Plant and Storage Location

5. Warehouse Structure
Warehouse
Storage Type Storage Type
Storage Storage Storage Storage
Section Section Section Section
Storage Storage
Bins Bins

6. Master Data
Path: - Logistics Execution -> Warehouse Management -> Master Data

7. Storage Type
A storage type is a storage
area, warehouse facility, or a
warehouse zone that you define in
Warehouse Management (WM) for a
warehouse number. This is a physical
or logical subdivision of a warehouse
complex that is characterized by its
warehouse technique, the space
used, its organizational form, or its
function
You can define the following
frequently-used physical storage
types in WM:
• Bulk storage
• Open Storage
• High rack storage
• Picking area
• Shelf storage

8. Storage Section
In Warehouse Management (WM), a storage
section is an organizational subdivision of a
storage type that groups together storage bins
with similar features for the purpose of putting
away stock.
The criteria for grouping bins can be defined on
a user-individual basis for example.
• Heavy parts
• Bulky materials
• Fast-moving items
• Slow-moving items
• Special Temperatures
• Fire Protection
• Others

9. Storage Bin Type and Blocking Reason

10. Storage Bin
A storage type generally contains several
storage spaces or slots. These are called
storage bins in Warehouse Management
(WM). The storage bin is the smallest
available unit of space in a warehouse.
The storage bin therefore describes the
position in the warehouse where the
goods are or can be stored. Since the
address of a storage bin is frequently
derived from a coordinate system, a
storage bin is often referred to as a
coordinate. The coordinate 01-02-03 for
example, can refer to a storage bin in row
1, stack 2, and level 3.
You can also define the following
additional characteristics of a storage bin:
• Maximum weight
• Total capacity
• Fire containment section
• Storage bin type (for example, for small
or large pallets)

11. Storage bins

12. Putaway and Pickaway Strategies
Putaway Strategies Picking Strategies
Next empty bin FIFO
Fixed bin LIFO
Manual entry SLED
Adding to existing stock Partial Quantities
Bulk storage Large / small quantities
Open storage
Storage unit type

13. Putaway and Pickaway Strategies
Putaway and Picking Strategies:
In the Warehouse Management (WM) application
component, you employ putaway and removal strategies
used by the system to search for storage bins in the most
expeditious manner.
Putaway Strategies:
For inbound movements, in conjunction with controls
entered in the material master record, the putaway
strategies assist the WM system to utilize the available
warehouse capacity, automatically assigning optimum
locations for goods received in the warehouse.
Picking Strategies:
For outbound movements, the system uses similar user-
defined controls to execute the appropriate picking
strategy to assign the best picking location. If you decide
to manually process certain stock movements, you can
change source and destination storage bins that are
automatically proposed by the system.
When the system creates transfer orders to move goods
into or out of the warehouse, you do not have to
intervene when it comes to finding storage bins. This
guarantees that stock movements are processed quickly
and consistently.

14. Put-away Strategies

15. Pickaway Strategies

16. Goods Receipt Process

17. Goods Issue Process

18. Storage Type Search
The system must now determine in which storage type the material should be put away and Pickaway.
You define this information in the storage type search table. To make entries in this table, see the
section on defining the storage type search sequence under Strategies in the Warehouse Management
IMG documentation.
In the storage type search table, you can define a search sequence with up to thirty storage types.
(Make sure that you enter an E for putaway and A for Pickaway in the column Activity). This means
that the system uses the search sequence for searching for a destination storage type.

19. Storage Section Search
You can divide a storage type into several storage sections (see The Storage Section) in which
various materials can be stored. You can use these storage sections, for example, to ensure that
frequently used materials ("fast-moving" items) are stored in the front of the warehouse while
seldom used materials ("slow-moving" items) are stored in the back of the warehouse. A storage
type is divided into storage sections on the basis of storage bins. When you create a storage
bin, you assign it to a storage section.

20. Storage Bin Type Search
Storage Bin Search:
Once the storage type has been determined, the system
then searches within the storage type to find an
appropriate storage bin in which the material can be put
away and removed. To find a storage bin, the system uses a
search strategy that has been defined for the storage type.
For each storage type you can define a putaway and
Pickaway strategies.

22. Strategies – Putaway and Pickaway

24. Interim Storage Area or Bins
Path: LE -> Warehouse Management -> Interfaces -> Inventory Management -> Generate Interim Storage Bins
Interim Storage Area:
You can also define storage types in WM that are shared by both the Inventory Management (IM) and Warehouse
Management (WM) application components. These are called interim storage areas and include the following.
• Goods receipt area
• Goods issue area
• Interim storage area for differences
• Posting change zone

31. Transaction Codes - WM

32. Goods Receipt Process(Putaway)
1. MM01 - Create Material Master with
WM view’s
2. ME21N - Create PO
3. MIGO – Create GR with respect to PO
4. Transfer Requirement (TR) is created
While doing MIGO
5. LT06 - Create TO (Transfer Order) with
respect to Material Document Number
6. LT31 - Print TO
7. LT12 - Confirm TO
8. LS26 – Stock Overview

33. Material Master WM view

35. Goods Receipt (MB1C)

36. LT06 -Create TO with ref to Material Document

37. Display Transfer Requirement (TR)

40. Transfer Order will be created after Saving

41. LT12 – Confirm TO

42. LT12 – Confirm TO

43. LT21 – Display Transfer Order

44. LT21 – Display Transfer Order

45. LS26 - Stock Overview