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SAP Extended Warehouse Management: Overview and Benefit

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Since the late 1980s, SAP has provided warehouse management (WM) as an ERP feature. The WM program manages typical warehouses. Its features are yard management, picking methods, RF technology, and stock management at warehouse and bin sites.

However, it’s crucial to remember that warehouses back in the 1980s weren’t as sophisticated or complex as they are now. The complexity of warehouse operations is rising, and consumers are demanding more visibility and transparency from their facilities.

The need for a management solution to handle the needs of the more complex operations led to the development of SAP Extended Warehouse Management (EWM).

With that in mind, in today’s pót, we will help you get a better understanding of SAP Extended Warehouse Management and how it benefits your business.

SAP Extended Warehouse Management

SAP Extended Warehouse Management

What is SAP Extended Warehouse Management?

Although EWM itself is not brand-new, it has undergone substantial development since 2005, when it was initially included in the SCM module.

The SAP Extended Warehouse Management (EWM) solution, which is an element of the SAP Supply Chain Management (SCM) Suite of products, is used to effectively control inventory in the warehouse and to enhance the processing of the goods movement.

What is SAP Extended Warehouse Management

What is SAP Extended Warehouse Management

The highest level of visibility and control is provided by SAP EWM, which manages high-volume warehouse operations and combines complicated supply chain logistics with the warehouse and distribution processes.

Real-time inventory tracking, cross-docking, distribution processes, multichannel fulfillment, and more may all be made more efficient.

Inbound and outbound materials, receipt and issuance of products, fulfillment of customer orders, as well as distribution of items make up the bulk of a warehouse’s operations. There is no need for warehouse management to supervise items when a corporation doesn’t keep any goods.

The storage of the items in the warehouse and their location are part of the inbound process while picking up the goods is part of the outbound process. Every time an item is kept in a warehouse, it is kept in a storage bin, where you can always locate it.

With the assistance of SAP EWM, a warehouse management system supervises every product flow and gives you the ability to keep an eye on warehouse operations. Additionally, you may control extra features in the warehouse.

Creating serial numbers, batch numbers, resource optimization, vendor management inventories, and value-added services are examples of warehouse operations. SAP Extended Warehouse Management enables you to effectively handle other crucial tasks such as the delivery of goods in addition to keeping an eye on the amount of inventory in the warehouse.

Inventory management contrasts with SAP Warehouse Management. Inventory management reports the number of items in storage, but it is not known where those items are physically located.

The administration of warehouses deals with the transportation of commodities and keeping track of their actual locations as documented on specified papers.

Key Features of SAP EWM

The key parts of SAP EWM are as follows:

  • You can manage warehouse tasks like picking, posting, and monitoring good receipts and storage bins using SAP EWM.
  • Prior to the receipt of the goods from the EWM system to the ERP system, that goods receipt can be reversed or corrected, and an inbound delivery split from the EWM to the ERP system can be configured as alerts for changing data.
  • Before putting items away in various storage compartments, handling units containing various products might be deconsolidated.
  • Slotting for items allows you to decide on storage concepts and automatically organize the goods warehouse.
  • It enables you to carry out executable actions like work packages that warehouse staff should complete as part of warehouse management operations.
  • From yard check-in through yard check-out, it enables you to manage and keep track of cars as well as other transportation units, covering movements as well as other operations inside the yard.
  • In SAP EWM, hazardous materials are also stored, handled, and transported in compliance with SAP Environmental Health & Safety EHS guidelines.
  • By properly managing the essential resource management duties, you may increase the efficiency of your warehouse by better planning labor hours and resources.
  • Utilizing the Warehouse Cockpit feature in SAP EWM, you may visually show warehouse important numbers and analyze or keep an eye on activity using predefined chart types.
  • Cross-docking enables you to move handling units between multiple distribution centers or warehouses until they arrive at their destination in the warehouse.

Main Advantages of SAP Extended Warehouse Management

One term that should be taken into account when businesses are considering whether or not to employ EWM is “robust.” 

Main Advantages of SAP Extended Warehouse Management

Main Advantages of SAP Extended Warehouse Management

Easiest to most complicated warehouse operations can be managed using EWM, which also offers extra features that WM is unable to offer

  • Lower the cost of the warehouse. maximize the use of resources, including people, space, equipment, and time, to create additional savings.
  • Improve service. Reduce order cycle times and provide consumers with contemporary, value-added services.
  • Boost efficiency and precision. Improve inventory accuracy by standardizing processes and procedures, which will lower mistake rates.
  • Increase scalability and flexibility. Increase the adaptability of procedures and employ automation to manage high-volume transactions with ease.
  • Enhance transparency. Become more aware of inventory, procedures, labor use, and warehouse automation.
  • Ensure adherence. Assure that multinational regulations are followed for processing global trade and sustainability standards.

Implementing SAP Extended Warehouse Management

Technically speaking, SAP has developed migration tools that make the transition from SAP WM to EWM reasonably simple, and the ideas are similar enough that the learning curve for the customer is manageable.

Implementing SAP Extended Warehouse Management

Implementing SAP Extended Warehouse Management

But for individuals who are accustomed to WM and are unwilling to transfer to EWM, the following points could help you get closer to implementation readiness:

  • Similar papers are also in EWM, although under different names. The warehouse task (or TO line item) in EWM now refers to the WM transfer request or transfer order to transport goods in the warehouse.
  • While the WM movement type decides what task should be created in the warehouse, EWM employs an improved process type to make this decision (using document types as a reference).
  • Following the conversion, EWM offers a lot more functionality. More comprehensive RF possibilities, better process type-based control, and a strong SAP QM connection are all included. In order to manage all activities in the warehouse, utilize the Warehouse Monitor as your “one-stop” cockpit.

Until 2025, SAP won’t continue to fund WM development, and S/4HANA will prioritize EWM as the standard new warehouse management system. Our qualified team of SAP consultants is available to assist businesses wishing to begin using SAP EWM.

Optional Deployments in SAP EWM

You can think of SAP EWM as being installed on an ERP server or as a tool in the supply chain management environment.

The utilization of features including availability checking and slotting also necessitates SAP Extended Warehouse Management’s connectivity with CRM. SAP Extended Warehouse Management is coupled with ERP to get transaction and data management.

It is regarded as a distinct application and coexists on the same server as the SCM programs. If you want better performance, you may also operate SAP EWM within its own SCM environment.

Deployment options for EWM

The SAP EWM deployment choices are displayed in the following image.

  • Figure 1: SAP EWM is depicted on SCM Server
  • Figure 2: SAP EWM as a Standalone
EWM Deployment Options

EWM Deployment Options

Method of Communication

For the transmission of transaction and master data, SAP ERP and EWM are tightly connected. The two methods of communication are distinct.

One popular means of connection between the SAP SCM system and the SAP Advanced Planning and Optimization APO is the Core Interface (CIF). Core Interface CIF communication is used to send master data from the ERP system, such as customers, materials, and vendors, to the EWM system.

Method of Communication

Method of Communication

A different integration mechanism is utilized for communication with transaction records (inbound and outbound delivery documents). This approach employs queued remote function calls (RFC) or iDocs.

How can you check the EWM system’s different menu structures?

Go to the Extended Warehouse management link in the SAP menu after logging into the SCM system. To manage fundamental warehouse management operations, you can employ a variety of transactions.

Warehouse Monitor/SCWM/MON
Maintain Inbound Delivery/SCWM/PRDI
Maintain Outbound Delivery/SCWM/PRDO
RF Environment/SCWM/RFUI
Creating Storage Bin/SCWM/LS01
Confirm Warehouse Task/SCWM/TO_CONF
Warehouse product Maintenance/SCWM/MAT1

Final Words

The above information is all about SAP Extended Warehouse Management. We hope you will find this post useful for your company.

To improve their EWM operations, businesses that transfer their warehouse processes to SAP EWM need SAP EWM consulting. Since professional assistance is necessary to get the most out of SAP Extended Warehouse Management.

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