Warehouse management is an important module in SAP. Even though basic warehouse management is taken care of in form of storage location in SAP MM, the storage location provides only a basic functionality. The limitations of storage location include:
- No segregation of goods: In one storage location, you can not separate goods from each other. For example, if a storage location is meant for storing mobile phones, then you can not separate mobile phones based on any criteria like model, make, size, weight etc.
- No location information: If you need to pick up goods then you do not know where in the storage location a particular item is kept.
- No storage capacity information: In storage location you can not define the storage capacity.
- No put away functionality: If some goods needs to be palletized or to be packaged then it is impossible to do it in a storage location.
A separate warehouse is needed when you have to do things like:
- Storing goods in the same warehouse which are different from each other.
- When you need to know where in the warehouse a particular goods are kept.
- When you need to know if space is available for storing goods.
- When you want to do packaging, kitting, palletizing etc.
In my next post I will discuss about configuration of warehouse in SAP.