SAP EWM (Extended Warehouse Management)

SAP EWM (Extended Warehouse Management) is a highly standardised and efficient warehouse management system that covers all warehouse requirements. Regardless of whether it is a distribution, production or spare parts warehouse. SAP EWM enables the management and control of all warehouse movements and processes and offers maximum flexibility.

SAP EWM optimises all warehouse processes and offers many advantages:

• Consistent optimisation and automation of all warehouse processes: from goods receipt and warehousing to order picking and shipping
• Transparency of stocks and movements
• Efficient and flexible resource management
• Complete integration into existing SAP systems, including SAP S/4HANA, SAP TM or SAP Yard Management
• Integrated material flow control with SAP MFS
• Mobile, paperless order processing
• Connection of third-party systems for automated storage and retrieval and for forklift guidance systems without additional warehouse control
• Minimisation of error rate
• More efficient order processing and improved adherence to delivery dates
• Increase in service quality

SAP Warehouse Management (SAP WM) and SAP Extended Warehouse Management (SAP EWM) differ both in the scope of functions and in the SAP system architecture. For many small and medium-sized companies with less complex warehouse processes, SAP WM integrated in SAP ERP is the suitable solution.

But the scope of  performance of SAP EWM is many times greater. Compared to SAP WM, SAP EWM offers significantly more functions: for tasks from goods receipt to internal warehouse processes to goods issue. Warehouse processes are considerably simplified. For example, there is an integrated warehouse management monitor. People, devices and information can be networked with each other. A direct connection to the material flow control is possible with the integrated SAP MFS.

Due to the more functions, considerably more processes can be mapped in a standardised way. This increases process reliability and reduces error rates. With SAP EWM, the quality and efficiency of the entire processes are thus significantly increased. And while numerous add-ons are required in SAP WM to map company-specific processes, many are now already included in the SAP EWM standard.

As SAP WM will no longer be available after 2025 as part of the phased-out ERP 6.0, a switch to SAP EWM must be made by then. If the WM successor SAP Stock Room Management integrated in S/4HANA does not offer the required scope of services – because numerous WM functions are no longer mapped in SAP Stock Room Management, see overview here – the migration to SAP EWM is mandatory and should be initiated early.

A switch from SAP WM to SAP EWM opens up many advantages and opportunities. Existing processes can be restructured and made more efficient. In addition, the solution creates a logistical basis for growth.

As SAP EWM is a strategically important product for SAP that is continuously optimised and further developed, it offers a high degree of innovation security.

SAP EWM can be integrated into S/4HANA both decentrally and embedded.

• The decentralised version is provided exclusively as a fully comprehensive Advanced variant.
• The embedded version, on the other hand, is available both as a slimmed-down Basic variant, which is already included in the SAP S/4HANA core, and as a more comprehensive Advanced variant.

As an alternative to integrating SAP EWM into an existing S/4HANA or as part of an S/4HANA implementation, there is the option of an early migration to a decentralised standalone SAP EWM system, for example if the S/4 migration is still pending.

This approach opens up the advantage that the migration to SAP EWM is decoupled from the introduction of an SAP S/4HANA system, both in terms of time and technology. In addition, maintenance on the existing SAP ERP system has no influence on SAP EWM. Another advantage is that the SAP EWM system can communicate with both SAP ECC and S/4HANA and use the standard system distribution model. This opens up the option of integrating the standalone solution later as an embedded variant.

There are the two basic options mentioned below.

Temporary use of SAP WM in SAP S/4HANA until 2025

If SAP S/4HANA has already been implemented in the company, it is possible to use the existing SAP WM in the S/4HANA core until 2025. Existing WM processes remain in place and can be optimised with the help of S/4HANA. By the end of 2025 at the latest, however, the changeover to SAP EWM must have taken place, whether embedded or decentralised. This option can thus be considered as a phase of the migration to SAP EWM.

Use of SAP Stock Room Management in SAP S/4HANA

After SAP WM will no longer be usable from 2025, there is the option of using SAP Stock Room Management as the designated WM successor. However, the solution integrated in SAP S/4HANA will have a lower scope of services than its predecessor. More information

For many companies with more complex and automated warehouse processes, SAP Stock Room Management is not sufficient and SAP EWM is the right solution. This is the case, for example, when:

• companies want to actively and flexibly control their resources and processes in the warehouse,
• the complexity is high, e.g. multi-level picking,
• the degree of automation increases,
• automated warehouse technology is to be connected,
• throughput increases,
• warehouse and transport processes are to be integrated, e.g. SAP TM integration,
• RF functions are required for workplace activities.

The project duration for the implementation of the market-leading warehouse management system SAP EWM depends very much on the complexity and the company-specific requirements. In addition, the project methodology (e.g. agile or hybrid approach) has a considerable influence on the duration. Basically, however, the project duration in many projects is at least one year.

However, with the Rapid Deployment Solution LP PoweredEWM developed by LogiPlus, it is possible to implement SAP EWM in only 12 weeks. This project methodology includes fully pre-configured processes, is based on best practices and includes customised LP Add-Ons to fill functional gaps in the standard. This approach massively reduces the implementation time. This effect is reinforced by training and onboarding directly on the live system.

Companies often consider no longer buying SAP on-premise licences themselves, but renting them together with a bundle of services. In this way, high investment costs can be turned into predictable and manageable operational costs – Kapex becomes Opex.

For this purpose, LogiPlus offers a SaaS model, unique on the SAP EWM market: SAP EWM on Demand. Companies can decide which of the following services should be included in the rental model:

• Implementation project for a fully developed SAP EWM system
• Licences and maintenance
• Procurement of hardware for the warehouse (e.g. mobile data capture devices or printers)
• Hosting
• Support services
• Application management

Companies that want to use a warehouse for a limited period of time and have a complexity in the warehouse that requires SAP EWM often do without SAP EWM due to the relatively high investment costs. With the SAP EWM on Demand rental model, LogiPlus offers the option of renting the solution for a predefined period of time. Companies can decide which of the following services are the subject of the rental contract.

• Implementation project for a fully developed SAP EWM system
• Licences and maintenance
• Procurement of hardware for the warehouse (e.g. mobile data collection devices or printers)
• Hosting
• Support services
• Application management

If the warehouse is to continue to be operated after the contractually agreed period, the contract can be extended on the basis of the new parameters. This offers maximum flexibility.

As part of the SAP S/4HANA platform, SAP EWM has massive advantages over traditional databases through the use of in-memory technology. By processing large volumes of data (big data) with very high performance, evaluations and transactions can be carried out in SAP EWM within fractions of a second in real time. SAP S/4HANA is therefore one of the most important components for the digital transformation. 

Using S/4HANA opens up the following advantages, among others:

• Control of automation and conveyor technology such as high-bay, automated small parts or tray warehouses, pick workstations, AGVs, shuttles or industrial lifts.
• Reliable reports and analyses based on the latest data at the push of a button
• Simulation of complex business processes
• Simplified and reusable data model
• Real-time applications
• Shorter processing times with lower memory requirements