SAP Extended Warehouse Management (SAP EWM)

This specialist article describes how you can use SAP Extended Warehouse Management to make your warehouse management efficient and consistently optimize your supply chain.

Beatrix Niklaus

Product Managerin

What is SAP Extended Warehouse Management?

SAP Extended Warehouse Management (SAP EWM) is a highly standardized and high-performance Warehouse Management system that flexibly supports all logistics processes for warehouse controlling from goods receipt and stockholding to picking and shipping.

Just like SAP Transportation Management (SAP TM), the Warehouse Management system belongs to SAP Supply Chain Execution Platform (SAP SCE) and is part of SAP Supply Chain Management (SAP SCM). Together, these solutions fulfill the requirements of modern logistics from simple and manual to highly complex warehouses. SAP EWM is a particularly flexible system meeting the demands of different warehouse types.

The system combines comprehensive functions and the increased efficiency of logistics processes in the warehouse. SAP EWM is fully integrated into inventory management and delivery processing. It can also be used for organizing, controlling and monitoring stock movements and, at the same time, it offers a system for controlling key figures. SAP EWM enables the highest possible transparency and control of warehouse processes by controlling the processes of big in-warehouse quantities and integrating complex supply chain logistics into the warehouse and sales processes of logistics companies.

SAP EWM enables the optimization and automation of warehouse logistics processes and, consequently, ensures faster and more efficient process flows.

SAP EWM with FIS | Optimize warehouse management and save costs | To the product

What are the current challenges in the area of warehouse management?

Far-reaching potentials with regard to optimizations, cost savings in the warehouse and increased customer satisfaction are underestimated by numerous companies. In some cases, warehouse structures have grown over the years, various IT solutions have been purchased and combined, which makes IT infrastructures more and more complex. In other cases, the Warehouse Management system used is obsolete and rigid and has therefore become nontransparent and cost-intensive in the long run. In addition, there are current problems such as permanent skills shortage and inefficiencies in the management of warehouse processes.

Time-intensive activities, such as manual picking via picklist, can be reduced or even eliminated through paperless and automated warehouse management. As a consequence, errors are avoided.

Putaways of goods and stock removals are controlled and monitored through digitization. This enables efficient supply chain management and companies can respond more quickly to customer demands and requirements.

The strategic Warehouse Management system enables the timely provision of goods at the right place. In this way, production downtimes or even interruptions are avoided and goods deliveries, in particular e-commerce deliveries, are accelerated. The advantages of SAP EWM are reflected in a functioning warehouse and inventory management and, therefore, offer big economic chances for companies.

What advantages and benefits are provided by SAP EWM?

Comprehensive functions by SAP Extended Warehouse Management that are scalable for any warehouse
size and type.
Individual developments or extensions as well as specific process mappings that are adjusted to the
requirements of the respective warehouses and products
SAP EWM includes an integrated material flow system enabling the integration of automated warehouse process flows
without further software and interfaces
SAP EWM offers real-time transparency concerning warehouse stocks and stock movements. This enables companies to
make well-founded decisions and quickly respond to changes on the market.
Improved space utilization in the warehouse as SAP EWM can be used to determine the storage bin available, which ensures the best possible utilization of space. As a result, costs are reduced, processing accelerated and stocks optimized.
Seamless integration of upstream and downstream business processes into SAP ERP (S/4HANA or ECC 6.0)
Consistent IT infrastructure and integrated processes along the entire supply chain
Different deployment options: on-premises, as cloud or hybrid solution
SAP EWM is very easy to use due to the user-friendly and intuitive Fiori user interface, whose
modern design is device-independent
The role-based utilization concept simplifies handling and therefore offers optimum support for the warehouse
workers
Reduction of inventory and personnel costs in the warehouse as SAP EWM accelerates order processing through the optimization of resources

FIS complements these benefits by its FIS/ewm+ project turbo. This methodology specifically provided for the SAP EWM implementation enables a particularly convenient and rapid implementation of the Extended Warehouse Management software, which complements the SAP standard version.

How does it function and what does the FIS/ewm+ implementation template mean?

The high flexibility of SAP Extended Warehouse Management (EWM) requires a detailed and precise process design that is used as a basis for Customizing and, if necessary, development activities.

The FIS/ewm+ project implementation template includes predefined documented processes and therefore accelerates the SAP EWM implementation. The necessary Customizing is preconfigured as well, which simplifies the step towards implementation.

All template processes are configured as consistent end-to-end processes. They are seamlessly integrated into SAP ERP as well as adjacent logistics areas. In addition to the EWM standard version, FIS/ewm+ provides optimized radio dialogs for paperless warehouse processes as well as a multitude of improved dialogs and predefined print forms.

This simplifies operability and enables mobile data entry. Training courses at an early stage help users quickly become familiar with the EWM system, which further shortens the explore phase. The quick implementation considerably reduces the costs for the implementation of SAP EWM.

Benefit resulting from the FIS/ewm+ implementation template

Faster and more convenient implementation of SAP Extended Warehouse Management with instant system availability due to preconfigured processes
Detailed template processes for Warehouse Management core activities ensure transparency
Consistent processes through a seamless integration into the existing ERP system or the ERP system to be implemented at the same time reduce processing times
Initial training courses and workshops increase the acceptance of users and project participants and enable faster and easier working with the software
Optimized radio dialogs and automated test management ensure improved usability
Comprehensive EWM development framework, which, if required, enables the quick extension of the SAP standard version as well a standardized access to technical objects

What kind of enterprise is SAP EWM suitable for?

SAP EWM is suitable for enterprises whose warehouse and logistics processes are very complex and who are looking for an efficient, transparent and flexible solution. This concerns, for instance,

logistics companies with complex warehouse and logistics processes as well as logistics service providers who wish to optimize their warehouse processes and increase transparency
technical wholesale companies that have to store and manage large quantities of goods and benefit, for instance, from the extended functions for inventory management and order processing
manufacturing and industrial companies: they often need a precise controlling of their warehouse stocks in order to make production efficient and enable just-in-time deliveries

What does the SAP EWM scope of services include?

SAP Extended Warehouse Management (EWM) is based on S/4HANA, the advanced SAP ERP system including the HANA real-time database. This ensures a standardized data basis for all those involved. As a consequence, reliable decisions in the supply chain management environment can be made in good time.

SAP Extended Warehouse Management focuses on the system mapping of the following warehouse logistics core processes:

Goods receipt: inbound delivery and putaway
Production supply and production disposal
Stockholding: warehouse and inventory management
Goods issue: from picking and packing to outbound delivery

SAP EWM fulfils the highest requirements of warehouse automation with regard to functional scope and controllable complexity. The Warehouse Management system enables, for instance, the implementation of complex conveyor systems, stacker control systems or automatic small parts storage areas (SPSA). Simple warehouse structures can also be mapped without any problems using SAP Extended Warehouse Management.

Integration of upstream and downstream supply chain processes in SAP EWM

Detailed listing of the SAP EWM functional scope

Goods receipt

Putaway strategies (numerous predefined strategies that can be adjusted customer-specifically by Customizing or development)
Mobile dialogs (executable on mobile data entry devices, e.g. scanner or tablet; they are configurable, optically adjustable or can be further individualized by development)
Cross-docking (direct picking, packing and shipping of backlog order items in goods receipt)
Quality inspection (from simple count or visual inspection to inspection lot processing)
Separation of goods receipt stocks and stocks available in the warehouse (this leads to reliable availability checks in order processing as well as correct updates of purchasing documents, vendor evaluations etc.)
Pick-by-voice integration (without middleware via ITSmobile)
Optimized goods receipt (speedy goods receipt processing, e.g. automatic deconsolidation such as distribution of a pallet to different load carriers)
Material flow control (from SAP EWM-MFS for connecting stackers and automatic small parts storage areas to shuttle systems etc., without middleware)
Slotting (automatic assignment of storage parameters, such as fast/slow-moving items)

Production supply and production disposal

Provision of components at production workplaces (order-related or also KANBAN)
Goods receipt processing and putaway of manufactured parts
Consumption postings of components (either at provision or by retrograde withdrawal)

Stockholding & inventory management

Different inventory types (periodic physical inventory, continuous inventory or cycle counting with radio support)
Warehouse reorganization (stock transfers of materials, such as fast/slow-moving items)
Monitoring of warehouse processes (via comprehensive, configurable reports in the warehouse management monitor or via Fiori apps)
Graphical display of warehouse key figures (via Fiori apps or integrated Easy Graphics Framework)
Extensive replenishment processing (planned replenishment, order-related replenishment, ad hoc replenishment)
Scrapping (both from SAP ERP or EWM)
Storage bin management (all stocks are managed on bins)
Mobile dialogs (executable on mobile data entry devices, e.g. scanner or tablet; they are configurable, optically adjustable or can be further individualized by development)
Storage bin structures (warehouse mapping in storage types, storage sections and storage bins)
Batch management (batch management to bin level with SLED processing and batch characteristics for instance)
Production integration (production supplies, goods movements and production disposal)
Yard management (yard management with parking spaces, gates etc.)

Goods Issue

Stock removal strategies (numerous standard strategies, such as FIFO, LIFO, partial pallet quantity, large and small quantities; adjustable via Customizing and development)
Mobile dialogs (executable on mobile data entry devices, e.g. scanner or tablet; they are configurable, optically adjustable or can be further individualized by development)
Cross-docking (direct picking, packing and shipping of backlog sales order items from the goods receipt area)
Packing tasks (packing according to defined packaging specifications or free packing)
Loading (loading control by scanning staging areas on truck/gate)
Packing planning (creation of planned shipping handling units (HUs) that can be used as templates for the creation of shipping HUs during picking or packing)
Picking wave creation (summarization of warehouse request items and split items due to specific criteria such as activity area, route and product in waves)
Pick-by-voice integration (integration of pick-by-voice devices without middleware via the integrated ITSmobile interface)
Scales integration (e.g. for goods receipt processes or control processes during goods issue)
Compilation of kits (kit-to-stock as well as kit-to-order scenarios)
Material flow control (SAP EWM-MFS; connection of complex storage techniques without middleware

Are there mobile logistics devices and apps and how are these connected?

Skilled warehouse workers rely on the use of mobile devices in order to work more efficiently and ergonomically. This includes smartphones and tablets, bar code scanners and other GPS technologies. A Warehouse Management system (WMS) that can support the connection of these technologies is of crucial importance.

Mobile SAP-based logistics apps offer digital support in the field of intralogistics and transport and ensure the highest possible overview of all logistics processes.

The harmonization of business processes, an efficient use of existing resources as well as the optimization of goods movements are the greatest advantages of supply chain digitization and upstream/downstream processes.

Mobile apps are seamlessly integrated into the SAP system. They are field-tested extensions complementing the SAP standard version by useful functions. The sustainable applications can be used on mobile devices and therefore create consistent logistics processes. The intuitive and user-friendly operation enables the employees to work ergonomically and efficiently. With an appropriate Internet connection, all information is available in real time without interface losses.

How can SAP EWM and SAP TM be seamlessly integrated in the order processing process using Advanced Shipping & Receiving?

Today, the smooth processing of sales orders and the seamless integration of warehouse management and transportation planning requires more than just system support. Instead, SAP EWM and SAP TM have to work synchronously in order to ensure swift order processing from a logistics point of view.

Conclusion

SAP Extended Warehouse Management (SAP EWM) is a high-performance solution for advanced warehouse management. It supports companies in optimizing their logistics processes and increasing supply chain efficiency. In light of the current challenges of warehouse management, such as complex IT infrastructures and skills shortage, SAP EWM offers a flexible and scalable platform that can be adjusted to the individual requirements of different companies.

The advantages of SAP EWM, i.e. real-time transparency, optimized space utilization and seamless integration into existing systems, help reduce costs and increase customer satisfaction. In addition, the FIS/ewm+ implementation template considerably accelerates the implementation process, which improves user acceptance and reduces the total of implementation costs.

Altogether, SAP EWM is particularly suitable for companies with complex warehouse and logistics processes that are looking for an efficient and transparent solution in order to increase their competitiveness and quickly respond to the dynamic requirements of the market.

FAQ – Frequently asked questions

SAP EWM is the strategic follow-up product of SAP Warehouse Management system (SAP WM) or SAP Logistics Execution System (SAP LES) with significantly extended functions for all warehouse activities. Since 2003, further developments and innovations have only been implemented in SAP Extended Warehouse Management.

The rights of use concerning SAP Warehouse Management in SAP S/4HANA expire by 2025/12/31 and in SAP ECC by 2027/12/31. In the future, warehouse management continues to be operated with the most important functions under the “SAP Stock Room Management” software – even after the SAP compatibility mode has expired. Embedded EWM, which is already included in the SAP S/4HANA core, is an alternative to SAP Stock Room Management and represents the solution recommended by SAP.

SAP ECC 6.0	Today	01.01.2026	01.01.2028
SAP WM	✔	✔	✖
SAP S/4HANA EWM local	✔	✔	✔

Lifecycle of SAP Intralogistics solutions for SAP ECC 6.0

SAP S/4HANA	Today	01.01.2026	01.01.2028
SAP WM	✔	✖	✖
SAP Stock Room Management	✔	✔	✔
SAP S/4HANA EWM embedded	✔	✔	✔
SAP S/4HANA EWM local	✔	✔	✔

Lifecycle of SAP Intralogistics solutions for SAP S/4HANA

SAP Extended Warehouse Management can be integrated as embedded or local version. Only the complete “Advanced” variant is available in the local version. In the embedded version, a selection can be made between the “Basic” variant already included in SAP S/4HANA Core and the more comprehensive “Advanced” variant.

SAP EWM can be implemented in SAP S/4HANA in an on-premises or a cloud variant. While the on-premises installations run on customer-specific servers, the cloud IT infrastructures are supported by SAP on the basis of a subscription service.

The rights of use concerning SAP Warehouse Management in SAP S/4HANA expire by 2025/12/31 and in SAP ECC by 2027/12/31. In the future, the warehouse management continues to be operated with the most important functions under the “SAP Stock Room Management” software – even after the SAP compatibility mode has expired. Embedded EWM, which is already included in the SAP S/4HANA core, is an alternative to SAP Stock Room Management and represents the solution recommended by SAP.

Intralogistics in SAP S/4HANA: Deployment options SAP EWM

The functionality and the functional scope are the main differences between the “Basic” and the “Advanced” variant. SAP EWM Basic is the basic version of SAP EWM and offers essential functions for managing a warehouse. The “Basic” version is suitable for companies with less complex warehouse structures and warehouse requests.
Besides this version, the “Advanced” variant for SAP EWM is available. It offers more functions and options for the connection of further interfaces.

Funktionalitäten	SAP S/4HANA EWM Basic	SAP S/4HANA EWM Advanced
Inventory management, WE, internal processes, WA	✔	✔
Use of mobile devices	✔	✔
Inventory	✔	✔
Reporting	✔	✔
Resource management	✔	✔
Wellenmanagement	✖	✔
Additional logistical services	✖	✔
SAP Cross-Docking	✖	✔
Quality management	✔	✔
Material flow control (MFS)	✖	✔
Integration with Transportation Management (ASR)	✔	✔
Yard Management	✖	✔
Labour management	✖	✔
Warehouse Billing	✖	✔
Kitting	✖	✔
Dock Appointment Scheduling	✖	✔
Slotting	✖	✔
Packaging planning	✖	✔
Goods Distribution with Distribution Equipment	✖	✔
Just-In-Time (JIT) Supply to Production	✖	✔

SAP EWM Basic vs. SAP EWM Advanced – Extract of functionalities

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