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Market Leader in Electronics Exploits Intralogistic Optimization Potentials with ORTEC - In order for the warehouse to run as efficiently as possible, the project managers at Murrelektronik made a decisive step in favour of the SAP warehouse management component, SAP WM.

July 8, 2010 -- With the establishment of an automated small parts warehouse and the introduction of SAP WM, Murrelektronik was faced with the task of integrating both the processes of the manual warehouse as well as the order picking and dispatch accordingly into the new IT environment. This was achieved with the SAP-certified add-on, ORTEC MLS which opened up crucial optimization potentials for Murrelektronik with respect to both process reliability and process quality.

The aim: efficient integration of various warehouse types in SAP WM

The whole of the warehousing area operated by Murrelektronik in Oppenweiler is divided into an automatic small parts warehouse with 16,500 container storage compartments, a manual pallet warehouse featuring 550 pallet bays and a 4,000 capacity shelf storage system which is also organised along manual lines. About 2,200 containers and up to 30 pallets, predominantly mixed pallets, pass through the warehouse and connected stock picking facility on a daily basis. Approximately 1,000 consignments with an average of two to three order positions are dispatched each day. Quantities per delivery can vary greatly. One package with one position and only one unit is just as possible as 15 pallets with 100 positions and up to 10,000 units. In the Murrelelektronik warehouse, the SAP WM component handles the overall management of stocks in the automatic small parts warehouse, performs the interface function to the separate inventory management computer and controls storage areas and stock levels in the pallet warehouse and shelf storage system. In addition to this, SAP WM also provides support for goods-in management for internal and external production and commercial merchandise as well as assisting with stock picking from all areas of the warehouse, packaging and dispatch.

In order for the warehouse to run as efficiently as possible, the project managers at Murrelektronik made a decisive step in favour of the SAP warehouse management component, SAP WM. It offers a wide range of functions and allows, among other features, the imaging of warehouse structures, storage and retrieval strategies, and paperless processes, as well as the management of warehouse units. Nevertheless, the stand-alone use of the standard software proved to have various limitations, for instance in certain complex processes which could only be rather restrictively imaged. The use of certified SAP add-ons as complements to SAP WM was (and is) the ideal solution for generating the required efficiency of processes in the intralogistic areas.

Better utilisation of the SAP function scope with ORTEC MLS

ORTEC Mobile Logistics Solutions (MLS) is an add-on, fully integrated into SAP ERP processes. It is based on the SAP document level and expands the standard scope offered by the Warehouse Management module to include important features and functions. ORTEC MLS allows, for example, the order picking workload generated by SAP to be broken down according to intralogistic aspects. Murrelektronik was thus able to define individual logistics processes and goals that go beyond the standard scope of the ERP software. ORTEC MLS prepares and displays the complete Murrelektronik supply workload according to specific selection criteria, enables the necessary order picking workload and carries out the allocation of the delivery to a specific packing station. Transport orders are thereby generated in WM and combined to form order picking orders according to different criteria.

IT--appropriate goods-in and in-storage processes

Although the Murrelektronik warehouse in Oppenweiler also handles commercial goods, the main focus is on production orders from local manufacturing and works. SAP in -storage transport orders are generated within the respective works themselves. The containers formed within this process differ in terms of type and division. There are two different sizes of container which in turn may be sub-divided 1, 2 or 4 times. The numbers of the respective transport orders and warehouse units are scanned at the I-point. This registers container content in the automatic small parts warehouse. The containers are subsequently stored according to a strategy defined by warehouse management and are updated via IDoc from the small parts warehouse in the SAP WM. In the case of in-storage of goods in the warehouse areas which are manually organised, a member of staff transports the goods from the I-point to the pallet warehouse or shelf storage system. He or she scans in the warehouse unit number, stores the goods in the warehouse bay and creates a re-storage transport order which is immediately receipted within the system.

Picking: Stock removal to storage rack compartments and Pick-to-light bins

As part of the picking process, upcoming shipments are displayed in ORTEC MLS by entering various selection criteria, such as delivery, delivery number, consignee or delivery date. A distinction is made between delivery positions from the automated small parts warehouse and from the manual warehouses. With the release of deliveries from the ORTEC MLS monitor the assignment of the delivery to packing stations takes place simultaneously. When orders are released for picking and delivery, SAP WM generates two transfer orders - one for the automated small parts warehouse and one for the manual storage area. Depending on the amount to be picked, orders from the automated small parts warehouse will either be transferred to a picking point or directly transported to the packing station. For this warehouse movement, the stock removal transfer orders from the SAP system will be sent via the IDoc to the automated small parts warehouse.

The picking staff puts the required quantities into a picking container for the pick-by-light system. Per an IDoc-message the automated small parts warehouse informs the SAP system of the picked items and quantities, and the ID number of the picking container, and triggers the transfer order confirmation.

Packaging and dispatch via APS

In order to package deliveries, the member of staff logs into the APS (Automated Picking System). This activates the packaging bay in the system and sends a message to this effect to the automatic small parts warehouse. The member of staff scans the first container. The customer name and the forwarding agent for the delivery accessed are displayed and the number of warehouse and stock picking containers relating to this consignment are shown via the APS. The packer then takes a shipping box and begins packing. Identification via the material number confirms the required quantity. Any deviations from the prescribed quantity are recorded in the APS. In the case of special materials, the serial number is registered individually and displayed in the APS. This procedure is repeated until all the articles for a container have been recorded. The next container relating to this delivery is then processed. When the whole consignment has been packed, the member of staff confirms the whole delivery. He or she uses the "Delivery note" and "Packing list" buttons in the APS to print out both vouchers. These are then added to the package, which is then sealed. A package label with a consecutive number is affixed to the package and scanned before the package arrives in the dispatch system where the weight and dispatch data are entered onto the delivery note. The number of packages is included on the delivery note and subsequently forwarded to goods-out accounting.

Conclusion: The seamless integration of ORTEC MLS allowed the system and organizational requirements of Murrelektronik to be optimally integrated into the SAP control and management processes. As a result, the company was able to tap into various optimization potentials. Process reliability has been significantly enhanced, a fact reflected in such areas as the optimization of the order handling timeframes, inventory reliability, the transparency of the work processes and in the maintenance of the supply flexibility demanded by the customers. Furthermore, the automatic handling of warehousing processes and the paperless working and booking has resulted in a significant increase in quality.

About Murrelektronik:

a leading name in the fields of industrial electro-technology and electronics Murrelektronik (www.murrelektronik.com) was founded in Oppenweiler in Baden-Württemberg in 1975. The company develops and produces products and solutions within the electrical and electronic automation technology branch. Its range of products includes plug systems for sensors and actuators, automation systems, anti-interference engineering, port and interface technology, transformers and network devices. Murrelektronik generated sales of over €100 million in 2008 and employs more than 1,300 staff globally as well as operating several production locations and in excess of 40 sale and distribution companies. This makes the company a leading branch player both domestically and internationally. Its guiding principle is "stay connected", a mission statement which applies in many different respects.

Murrelelektronik sets great store by establishing lasting connections, in terms of technology as well as with regard to customer proximity and the organisation of internal processes within the company itself. One example of this is warehousing, picking and dispatch logistics. When constructing its new automatic small parts warehouse, Murrelelektronik took the decision to deploy the SAP warehouse management components whilst also using appropriate add-ons as a means of integrating the processes involved in the manual warehouse -- some of which are complex in nature -- and the areas of picking and dispatch.

About ORTEC

ORTEC is one of the largest providers of advanced planning and optimization software solutions and consulting services. Our solutions result in optimized fleet routing and dispatch, vehicle and pallet loading, workforce scheduling, delivery forecasting and network planning. ORTEC provides best-of-breed, custom made and SAP® certified and embedded solutions, supported by strategic partnerships. In the area of Advanced Planning Solutions, ORTEC has over 1350 customers worldwide, over 550 employees and several offices in Europe, North America, Asia and the Pacific Region. For more information, please visit www.ortec.com.

For more information contact:

Mrs. Sjoukje Dijkstra
Marketing & PR department
ORTEC
tel: +31 (0)182 540 500
mobile: +31 (0) 6 145 464 24
e-mail: sjoukje.dijkstra@ortec.com
www.ortec.com
Twitter: www.twitter.com/ortec_logistics

Submitted by: LogisticsWorld
news@logisticsworld.com, 7/12/2010 12:57:26 AM

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