ERP-Driven SKU Location Control to Eliminate Warehouse Transactions and Reduce Line Downtime in a Manufacturing Plant
DOI:
https://doi.org/10.63282/3050-9246.IJETCSIT-V7I2P110Keywords:
Warehouse Management, ERP, Sap WMS, Inventory Control, ABC Analysis, Min–Max Policy, Manufacturing Logistics, Material FlowAbstract
This analysis investigates the implementation of the SAP Warehouse Management System (WMS) in a manufacturing environment, specifically assessing its effects on internal material replenishment, inbound receiving, and inventory management procedures. Prior to the WMS's introduction, the facility's operations were characterized by manual item transfers between storage bins, the utilization of unstructured pallet storage, and the need for redundant data entry. This led to inaccurate inventory counts, longer search times, and more frequent production interruptions. The new system, however, included specific storage areas for each stock-keeping unit (SKU), simplified the goods receipt process in SAP, and set minimum and maximum inventory levels. The implementation, which lasted over six and a half months and was tested across three busy production lines, led to significant improvements. Inventory accuracy surged from approximately 60% to 98%, while material-related downtime was reduced from 32% to a range of 2–3%. Consequently, the amount of transactional labor needed in the warehouses diminished by a quarter. These findings suggest that enhancements in layout optimization, the application of ABC-based slotting techniques, and the refinement of ERP configurations can substantially elevate operational efficiency, even in the absence of sophisticated automation technologies.
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