SAP EWM Training Introduction

To all those who are familiar with the traditional SAP Warehouse Management Solution, you must be wondering why SAP came up with the new Extended Warehouse Management (EWM) solution as a completely new product instead of adding more functionality into existing WM solution.

To understand better, we need to go back 15 years , when SAP WM was a standard solution implemented by thousands of SAP customers. Since the beginning, there always was a need from customers to add more functionality in SAP WM solution. SAP was focusing on delivering new functionalities after release 4.7 as part of WM extension sets. Some of the key functions added as part of these extension sets were Yard Management, Cross docking, Dynamic Cycle Counting, SAP Value Added services, etc. to name a few.

As part of evolving supply chains, Warehouses and Distribution centers started playing a significant role in supply chain networks. Warehousing systems needed more than just optimal storage and picking of materials. Warehousing systems needed to be more integrated with overall supply chains. They needed to provide additional value added services such as packaging, kitting, dynamic routing, slotting, opportunistic cross docking, Labor management, etc. to name a few. Warehousing systems needed to promptly respond to supply chain exceptions.

This required out of box thinking and required totally new system architecture. That was one reason, I believe, SAP came up with a new product, SAP EWM – Extended Warehouse Management.

EWM was developed from the ground up as a new Warehouse Management System option for SAP customers delivering enhanced functionality over ERP WM for more complex distribution processes needed as part of integrated supply chain networks.

Following graphic from SAP gives a good overview of EWM capabilities by each version. It clearly shows how fast SAP is innovating EWM to become a market leader.
SAP Extended Warehouse Management (EWM) is used to efficiently manage inventory in the Warehouse and for supporting processing of goods movement. It allows the company to control their Warehouse inbound and outbound processes and movement of goods in the Warehouse.

The main process in a Warehouse is incoming and outgoing materials, goods receipt and goods issue, fulfil customer orders, and distribution of goods. When a company doesn’t store any goods, then there is no need of Warehouse management to manage goods.

Inbound process involves storage of goods in warehouse and their location and Outbound process involves picking up the goods. Whenever a material is stored in a warehouse, it is stored in the storage bin and you can find its current location.

With the help of SAP EWM all the goods movement are controlled by a warehouse management system and provides you the tools to monitor warehouse activities. You can also manage additional functions in the Warehouse like creating a serial number, batch number, vendor management inventory, resource optimization and value added services. SAP Extended Warehouse Management allows you to not only monitor the quantity of goods in Warehouse but to manage other critical functions and delivery of goods efficiently.

SAP Warehouse Management is opposite to Inventory management. Inventory management tells the count of goods in the storage location and its physical location is unknown. Warehouse management deals with goods movement and monitoring the physical location of the goods recorded with specific documents.

SAP EWM is different from SAP Warehouse Management
SAP EWM is a part of SAP Supply Chain Management like Warehouse management system but provides more robust and advanced features to manage key activities in the Warehouse.

SAP Extended Warehouse Management is similar to Warehouse management but it provides more features like picking, put away, RF framework, Warehouse structure and more flexible options to manage the warehouse functions.

You can create new elements like an activity area, resources, labor management and work centers in SAP EWM which were not available in WM.

SAP EWM provides more a robust solution to manage warehouse functions in an organization. It is also a part of SAP Supply Chain Management and also supports all the processes within logistics and supply chain.