EWM Physical Inventory and Cycle Counting
Inventory accuracy is the foundation of warehouse operations. If you can't trust your inventory data, picking, replenishment, and fulfillment all suffer. SAP EWM provides comprehensive physical inventory capabilities.
Physical Inventory Types
- Periodic PI: Complete warehouse counting at regular intervals
- Continuous PI: Cycle counting throughout the year
- Ad-hoc PI: Triggered by events (discrepancies, audits)
- Low Stock PI: Count when inventory drops below thresholds
Cycle Counting Strategy
Cycle counting distributes the counting workload throughout the year. Common strategies include:
ABC Classification
- A items: Count monthly (high value/velocity)
- B items: Count quarterly
- C items: Count annually
Transaction-Based
Count bins when they become empty or reach a trigger threshold. This is efficient because:
- Empty bins are fast to count
- Integrates with picking workflows
- High-activity locations counted more often
EWM PI Process Flow
- PI Document Creation: Automatic or manual
- Bin Blocking: Prevent movements during count
- Count Execution: RF or mobile device
- Variance Analysis: Review discrepancies
- Recount (if needed): For significant variances
- Posting: Update system inventory
Variance Handling
Configure variance thresholds and workflow:
- Quantity tolerance percentages
- Value tolerance amounts
- Automatic vs manual approval
- Recount triggers
RF/Mobile Integration
EWM supports mobile counting through:
- Guided counting workflows
- Barcode scanning validation
- Exception reporting
- Offline capability
Accuracy Metrics
Track these KPIs:
- Location accuracy: % of locations with zero variance
- SKU accuracy: % of SKUs within tolerance
- Value accuracy: $ variance as % of total
- Count productivity: Locations per hour
Common Issues
- Counting moving inventory: Always freeze or block
- Untrained counters: Garbage in, garbage out
- Not investigating root causes: Fixing symptoms not problems
- Timing conflicts: Scheduling during peak operations
Regular cycle counting with proper root cause analysis will continuously improve accuracy.