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Case Study Sap Warehouse Management

                 A SAP WM Consultant is offered an average annual salary of $ 92,000 USD in New York State. Esteemed Companies offering SAP WM roles include Deloitte, SI PRO Consulting, Accenture, Lawrence Harvey, 3i Infotech, Cap Gemini, American Honda Motor Co. Inc and many others. The ultimate objective of SAP WM Training is to enable the participant to understand the Organizational Structure of Warehouse and the process of Managing it. Anyone with the basic SAP Knowledge can enroll in this training.

Getting placed in a top-level company is easy if an individual concentrates well in the training and understands the Management concepts pertaining to Organizational Architecture of Warehouse Management. SAP Warehouse Management Jobs consists of various roles which include Material Management, Warehouse Supervisor, Transportation Management, Logistics Expert, Warehouse Administrator, etc. The existing scenario of SAP Warehouse ManagementJobs in the United States includes

1) 144 Jobs in Chicago, IL
2) 100+ Jobs in Newtown, PA
3) 75+ Jobs in Houston, TX
4) 75+ jobs in Atlanta, GA
5) 80+ Jobs in New York, NY
6) 40+ Jobs in Pittsburg, PA
7) 50+ Jobs in Austin, TX

                SAP WM Certified candidate is assured a guaranteed placement. The SAP WM training enables a candidate to outperform their counterparts in the interview. It makes a vast difference between a Candidate appearing for an interview after SAP WM Training and another one who hasn’t taken up SAP WM Training. For instance, when browsed through SAP WM jobs in the United States, many of the top organizations where looking for Candidates with some of the below qualities.

a) The Ability to handle different situations.
b) Mentally prepared to face challenges
c) Previous knowledge of SAP or Working experience in SAP modules or the knowledge of knowing about the work and the working environment of a SAP WM job.

                With over 4000+ Full-time opportunities for trained SAP WM aspirants around the United States, it is better to take up the SAP WM training to land on a top notch company. SAP WM is equally important and the need for SAP WM candidates are higher the same way a demand gets for SAP ERPSAP MMSAP TM and other SAP related top roles. Trained SAP WM professionals have the edge as discussed above. A SAP WM Consultant is offered a Salary of $ 88,000 USD approximately in California, whereas it is $ 89,000 USD in Florida and $ 93,000 USD in New York State. Top companies such as IBM, Stott and May and Phoenix offers salaries all in the range of over $ 88,000 USD and more.

                So from the above 3 scenarios, we may derive a conclusion that a SAP training session could well turn the table for us rather than to go otherwise.

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Customer Profile

The client for this case study is a manufacturer of public transit fare systems for point of sale, validation, as well as fare media, audio, and vending equipment. The manufacturer is located in the Chicago metro area, and has one manufacturing facility and distribution center. Annual revenue for the company is approximately $150M.


Business Need

As the company grew, it got to the point where the legacy systems were no longer providing the necessary visibility to effectively run their business. Too many different systems were used to manage the various processes, and these systems were not integrated with each other. This led to contradicting data sets, and inaccuracies in inventory, financial statements, as well as controlling and profitability analysis.

The client evaluated several ERP platforms. Due to the vast amount of integration between the various modules, and the need for flexibility of the system because of their complex discrete manufacturing process, they decided to proceed with SAP.


Project Scope

End-to-end implementation of SAP ERP 6.0 for a discrete manufacturing process, including the following:

  • Finance & Controlling (FI/CO)
  • Controlling & Profitability Analysis (COPA)
  • Sales & Distribution (SD)
  • Service Management (SM)
  • Materials Management (MM)
  • Production Planning (PP)
    • Discrete Manufacturing Process
  • Variant Configuration (VC)
  • Warehouse Management (WM)
  • Plant Maintenance (PM)
  • Human Capital Management (HCM)
  • ITS Mobile

Quoted vs Actual

Implementation Cost

Based on the original scope of the project, Mygo Consulting quoted the implementation at $1.3M. However, due to change orders throughout the life of the project, the scope expanded, and the actual implementation cost was $1.9M.

Implementation Timeline

The proposed timeline for this implementation was estimated at 14 months, and the goal was met in spite of changes in project scope.

Here is a summary of the various project phases:

  • Blue-printing, and SAP Basis implementation – 3 months
  • Functional configuration for all modules involved – 7 months
  • ABAP customization of transactions and reports – 3 months
  • End-user training – 1 month

Required Resources

Total Resources: 24

  • On-Site Project Manager – 1 (PMP, Technical & Functional SAP Expert)
  • On-Site Functional Consultants
    • Finance, Controlling & Profitability Analysis – 2
    • Sales & Distribution – 1
    • Materials Management – 1
    • Production Planning – 1
    • Quality Management – 1
    • Warehouse Management – 1
    • Plant Maintenance – 1
    • Human Capital Management – 1
    • Variant Configuration – 1
    • Data Migration - 2
  • Off-shore Technical Consultants

Challenges & Solutions

This client has a particularly complex discrete manufacturing process. The fare systems they sell vary based on order and are highly customizable based on customer needs. While the materials used to manufacture these units are fairly consistent, the combination of components can differ significantly from one order to the next. Our client not only needed SAP to accommodate this flexibility, but also a standardized business process for controlling and profitability analysis.

Mygo Consulting overcame this challenge by leveraging variant configurations (VC) to give the client the flexibility they needed in the manufacturing process. Variant configuration is particularly helpful in an environment where there are a large number of combinations of components in the finished product.

Another challenge was integration of the pre-existing serial number business process with the implementation. Every finished product has an individual serial number. Controlling and profitability analysis need to integrate this serial number throughout the manufacturing process. Materials get assigned to serial numbers, and need to be reconciled. Finally, the serial number needs to be validated by the system prior to creating an outbound delivery.

A large amount of data had to be migrated from the legacy systems into the various SAP modules.

Furthermore, this client uses many 3rd party manufacturers who supply components to them, and required integration of these 3rd party suppliers into their SAP infrastructure.


Implementation Process

The following is a brief synopsis of Mygo Consulting’s implementation process:

  1. Determine client side department heads, and subject matter experts (SME’s).
  2. Kick off meeting with all department heads, and SME’s.
    1. Review of implementation process, and timeline (GANTT Chart).
    2. Discuss deliverables for the various stage gates in the implementation.
  3. Blue printing
    1. Analyzing business processes
    2. Linking business processes
  4. Configuration of all modules
  5. Functionality gap analysis
  6. Customization of transactions and reports
  7. Execution
    1. Training
    2. Data migration planning
  8. Data migration from legacy systems
  9. Go-live

Current System Landscape

  • SAP ERP 6.0
  • Hosted On-site
    • Database Server
    • Application Server
  • 120 SAP Users
  • Implemented Modules
    • Finance (FI)
    • Controlling & Profitability Analysis (COPA)
    • Sales & Distribution (SD)
    • Production Planning (PP)
    • Materials Management (MM)
    • Plant Maintenance (PM)
    • Quality Management (QM)
    • Human Capital Management (HCM)

    Result

    By using a team of experienced consultants with cross-functional experience in multiple modules, Mygo Consulting was able to deliver a high quality implementation with minimal post Go-Live troubleshooting. Given the vast amount of integration, it is important to have experienced consultants who understand not just their specific modules, but also how those modules integrate with other modules in SAP.

    Business interruption on Go-Live was minimal, and within two weeks, the client teams had developed a new routine in their everyday business processes. Mygo Consulting soon transitioned from the implementation role into a support role. Due to the success of the implementation, the client selected Mygo Consulting to support the SAP system on an ongoing basis.

    Since completion of the implementation, Mygo Consulting has transitioned into supporting, daily troubleshooting and improvement efforts.

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