In this article, we'll compare SAP EWM and Manhattan Associates WMS across key criteria to help you choose a solution that meets your operational needs and unlocks strategic opportunities for business growth.

Nowadays, a warehouse is more than just a storage facility. It's a critical hub that directly impacts the entire supply chain's speed, accuracy, and efficiency. That's why companies increasingly turn to Warehouse Management Systems (WMS) to gain better control over their operations.

These systems provide real-time inventory visibility, automate routine tasks, and seamlessly integrate with other business platforms. The result? Lower operating costs, greater transparency, and satisfied customers who receive their orders on time.

However, with the rise of E-commerce and omnichannel retail, the need for a reliable, flexible WMS has never been more critical. Such a system enables businesses to handle growing order and delivery volumes without compromising service quality. Today, the warehouse management systems market offers many players, but two names consistently remain at the top: SAP Extended Warehouse Management (EWM) and Manhattan Associates Warehouse Management System (WMS).

SAP EWM is a solution within the SAP ecosystem designed to manage storage and handling operations across warehouses, distribution centers, and logistics hubs, offering deep integration with all supply chain processes. Manhattan Associates WMS is known for its AI-powered automation capabilities and dynamic slotting functionality. Both platforms are proven market leaders, as evidenced by their consistent placement in Gartner’s Leaders Quadrant.

SAP EWM vs. Microsoft Dynamics 365 SCM — Choosing the Right Tool for the Job

In this article, we'll compare SAP EWM and Manhattan Associates WMS across key criteria to help you choose a solution that meets your operational needs and unlocks strategic opportunities for business growth.

A Brief Overview of the Features and Capabilities of Both Systems

Key features and capabilities of SAP EWM

SAP EWM is a warehouse management system that covers all aspects of warehouse logistics. It supports the organization of both space and processes, from planning storage zones to creating and managing warehouse tasks. With SAP EWM, you can build an efficient strategy for receiving, putaway, picking, packing, and shipping goods.

SAP EWM helps manage inbound and outbound flows, control stock units, perform inventory counting, and monitor quality, making it a reliable tool for handling even the most complex warehouse operations.

One of SAP EWM’s key strengths is its real-time inventory visibility. The system provides up-to-date information on what is stored, where it is stored, and in what quantities. This helps prevent both stockouts and overstocking, reducing unnecessary storage costs.

In addition, SAP EWM supports Robotic Process Automation (RPA), enabling robots to handle routine tasks and making warehouse operations faster and more accurate. The system also offers flexible deployment options — on-premise, in a private or public cloud, or in a hybrid setup. This flexibility provides a level of choice not available with cloud-only solutions.

A key advantage of SAP EWM is its deep, native integration with other SAP solutions, such as SAP S/4HANA, SAP Transportation Management (TM), and SAP Quality Management (QM), ensuring data consistency across the entire supply chain. Information flows seamlessly between systems, enabling the business to operate with a single source of truth without complex intermediary integration layers.

Key features and capabilities of Manhattan Associates WMS

Manhattan Associates WMS is a system designed for inventory and warehouse space management, order fulfillment, and workforce management. In addition, it offers the following capabilities:

• Yard management tools
• Optimization of warehouse slotting
• Centralized control of all operations
• Real-time order streaming and processing
• Built-in Warehouse Execution System (WES)

The platform is built on a modern cloud-native, microservices-based architecture that ensures scalability and regular updates. However, the lack of on-premise and hybrid deployment options limits its appeal for companies with strict infrastructure and data control requirements.

Manhattan WMS integrates with ERP, TMS, and E-commerce platforms via APIs. This offers flexibility, but falls short of SAP EWM's level of native integration.

Architecture and Technological Features

SAP EWM architecture

The SAP EWM architecture is based on a three-tier model that provides system reliability, scalability, and flexibility: 

1. The presentation layer enables user interaction with the system through SAP GUI, Fiori applications, and radio frequency (RF) transactions. This approach allows the interface to be tailored to the specific needs of each warehouse, supporting both mobile and stationary devices.
2. The business logic layer is the “core” of the system, where key EWM functionalities are executed: inbound processing, warehouse task creation, inventory updates, and resource management. This layer is primarily built on ABAP and includes function modules, BAdIs, and custom enhancements.
3. The data storage layer (typically based on SAP HANA) stores master data (such as warehouse structure, products, and resources), transactional data (including warehouse orders and tasks), and system configurations. Leveraging SAP HANA enables fast response times and real-time analysis of large data volumes. 

Integration of SAP EWM with other SAP modules and external systems is achieved through qRFC, IDoc, PPF, and web services. These proven technologies ensure reliable and secure data exchange, as well as data consistency across all supply chain stakeholders.

SAP EWM offers multiple deployment options, giving companies the flexibility to align with their IT strategy. The system can be deployed as an embedded version within SAP S/4HANA, providing the full range of functionalities while sourcing master data (such as materials and batches) directly from the ERP. This eliminates data duplication and simplifies the IT infrastructure.

An alternative option is decentralized deployment, where EWM is installed separately from the ERP system. Delivering superior performance, this approach is well-suited for large warehouses with high transaction volumes and intensive material flows.

For integration with automated warehouse systems, such as conveyors and robots, SAP EWM utilizes the Material Flow System (MFS) component, enabling direct control of warehouse equipment and transport systems at the programmable logic controller (PLC) level. This native equipment integration allows businesses to build fully automated warehouses without relying on third-party WCS solutions.

Manhattan Associates WMS architecture

Manhattan Active Warehouse Management is built on a modern cloud platform with a microservices-based architecture. The Manhattan Active component serves as the unified cloud environment for deploying and managing Manhattan’s SaaS solutions.

A microservices architecture means the application is composed of a set of small, independent services, each performing a well-defined function, loosely coupled with others, and maintaining its own state. In Manhattan Active, microservices are deployed and managed using containers (Docker) and the Kubernetes orchestration system. Kubernetes automates the deployment, scaling, and management of containers, providing flexibility and portability across different cloud providers.

The Manhattan Active architecture is open and built on modern open-source technologies, which makes integration with other applications and systems easier. However, its sole deployment option is the public cloud, which limits data and infrastructure control for companies with strict security requirements or a preference for hybrid or on-premise models.

Functional Capabilities

Inventory Management

SAP EWM offers granular inventory management at the storage bin level, enabling precise tracking of each product’s location within the warehouse. The system supports various putaway and picking strategies, as well as a wide range of inventory counting procedures, including physical, cycle, and zero-stock counting. This is especially valuable for high-turnover warehouses and operations with strict inventory control requirements.

In addition, SAP EWM provides serial number and batch management, which is critical for industries requiring strict product traceability and expiration date control, such as pharmaceuticals and food manufacturing. The system also supports hazardous materials management in compliance with regulatory requirements, ensuring efficient and safe storage.

Thanks to its integration with the Materials Management (MM) module in SAP ERP, SAP EWM ensures data consistency between warehouse operations and financial accounting, eliminating data duplication and reducing the risk of errors.

Manhattan Associates WMS enables real-time inventory tracking that provides complete visibility into stock levels, locations, and item statuses within the warehouse. The system streamlines slotting by considering factors such as turnover rates, item size, and storage requirements, helping reduce travel time and improve picking efficiency.

The platform supports batch and serial number management and leverages RFID technology for accurate and efficient inventory tracking. In addition, it offers inventory forecasting and automated replenishment capabilities.

Yard management

SAP EWM includes basic yard management functions that help monitor the arrival and departure of transportation units through checkpoints, as well as track their movements within the yard. The solution integrates yard management with transportation and shipping processes, ensuring seamless coordination.

For companies with more complex logistics requirements, SAP offers an advanced solution — SAP Yard Logistics (YL), which includes 3D yard visualization, intelligent load planning, gate management, and IoT integration.

Manhattan Associates offers Manhattan Active Yard Management — a yard management solution that provides visibility into yard operations, including trailer locations, dock statuses, and load contents.

The solution leverages intelligent algorithms to select trailers and assign them to docks, optimizing loading and unloading processes. Manhattan Active Yard Management is integrated with warehouse operations, ensuring synchronization between dock assignments and warehouse tasks. The system also provides yard resource planning tools that help improve the efficiency of trailer movements and utilization.

Labor management

SAP EWM includes labor planning and management functions, providing comprehensive control over the warehouse workforce at all levels. The system tracks employee working hours, including shift start and end times, breaks, and overtime. Additionally, it supports scheduling and planning based on staff availability, qualifications, and labor law requirements.

SAP EWM facilitates the implementation of labor standards for various warehouse operations, simplifying performance evaluation and identifying process bottlenecks. The system also provides reporting and advanced analytics on KPIs, including work volumes, productivity metrics, and labor cost analysis.

Manhattan Associates WMS includes a labor-management module — Manhattan Active Labor Management — which helps plan tasks and allocate work based on employee skills and availability. The module also leverages gamification and reward systems to enhance employee motivation and productivity.

In addition, the system tracks workforce performance in real time and compares actual results against established standards. The module also provides tools for labor cost analysis and optimization of workforce utilization.

Order fulfillment

SAP EWM enables end-to-end management of the entire order fulfillment process — from order receipt to shipping — providing full control and visibility at every stage. The system supports wave picking, pick path optimization, various packing and shipping strategies, and flexible order sequencing based on priorities, deadlines, and specific customer requirements.

The solution integrates with transportation processes, synchronizing shipping with transport logistics and minimizing downtime. Additionally, SAP EWM supports cross-docking, allowing goods to move through the warehouse without storage, reducing order fulfillment time, and lowering costs.

Manhattan Associates WMS offers real-time order streaming that dynamically adapts to new orders, workforce changes, and equipment failures. The system leverages machine learning to optimize order fulfillment processes — whether retail, wholesale, or direct — while enhancing efficiency and productivity. Additionally, it supports omnichannel and multichannel fulfillment strategies, ensuring consistency across multiple sales and delivery channels.

Integration Capabilities

Integration of SAP EWM with other systems

One of the solution's key advantages is the easy integration of SAP EWM with other SAP systems. It integrates deeply with SAP S/4HANA, ensuring seamless data flow between warehouse operations and other business processes.

Integration with SAP TM enables optimized transportation planning and execution, while integration with SAP QM ensures quality control at every stage of the warehouse process.

SAP EWM also integrates with SAP Dock Appointment Scheduling, enabling coordination of vehicle arrival and departure times at the warehouse. Standard interfaces are available for integration with other SAP solutions, such as SAP Global Trade Services (GTS).

In addition to integrating with other SAP systems, EWM connects with third-party systems via various interfaces, such as Oracle, Microsoft Dynamics, and others. One of the most common methods is Intermediate Documents (IDocs), SAP's standard format for data exchange between systems. Using IDocs, EWM can send and receive data on warehouse tasks, deliveries, and other operations.

The EWM-WCU interface, based on transactional Remote Function Calls (tRFC), is used to integrate with automated warehouse systems such as warehouse control units (WCU).

The solution also supports integration via APIs, providing flexibility when connecting with external applications. To simplify integration with third-party ERP systems, middleware solutions are used to transform and route messages.

Integration of Manhattan Associates WMS with other systems

Manhattan Associates WMS integrates with various enterprise systems, including ERPs such as SAP S/4HANA, Oracle, and Microsoft Dynamics, to enable real-time synchronization of data on orders, inventory, and deliveries.

Integration with transportation management systems (TMS), such as Manhattan Active Transportation Management, enables optimization of delivery processes and real-time shipment tracking.

In addition, Manhattan Associates WMS integrates with E-commerce platforms such as Shopify, streamlining the processing of online orders and inventory management for online stores.

Integrating Manhattan WMS and other systems is primarily achieved through APIs, providing flexible and scalable data exchange. The platform also offers a variety of tools and connectors that simplify integration with business applications. For example, it includes prebuilt integration solutions for connecting to accounting systems, payment gateways, and other logistics platforms.

Total Cost of Ownership and Licensing

Total cost of ownership and licensing for SAP EWM

The implementation cost of SAP EWM varies depending on the size and complexity of the business. Total project costs can range from $50,000 to over $200,000. Additionally, the cost of SAP S/4HANA licenses, which may include EWM, also varies widely, from $250,000 to several million dollars in the first year, including licensing fees and implementation expenses.

Various licensing options are available for SAP EWM:

• Basic EWM: Embedded within SAP S/4HANA, it does not require additional licensing fees and is recommended for businesses with small to medium-sized warehouses and low operational complexity.
• Advanced EWM: Also included in SAP S/4HANA, this solution requires separate licensing and is intended for more complex warehouse operations.
• Decentralized version of EWM: Recommended for businesses with highly automated warehouses, this version requires separate licensing and offers greater flexibility in maintenance and updates.

In addition to licensing costs, it is important to consider implementation expenses, which may include consulting services, employee training, data migration, and custom feature development. Implementation costs can range from $50,000 to $500,000, depending on the project's complexity and the resources involved.

It is also essential to account for annual maintenance and support fees, ranging from 18% to 22% of the license cost. The total cost of ownership (TCO) for SAP EWM includes all these direct and indirect expenses throughout the system's lifecycle.

Total cost of ownership and licensing for Manhattan Associates WMS

The implementation cost of Manhattan Associates WMS also varies, depending on the scale and complexity of the project. Typically, the total cost of a basic implementation ranges from $100,000 to $200,000.

Manhattan Associates offers various licensing models, including perpetual licenses with annual maintenance fees and subscriptions for cloud-based solutions. Subscription costs depend on the number of monthly users and the level of functionality. For large enterprises, cloud subscriptions with advanced features can reach up to $500 per user per month, or as much as $5,000 per site per month.

The cost of perpetual licenses ranges from $2,500 to over $200,000 per site, depending on the functionality and scale of operations.

The implementation cost of Manhattan Associates WMS also includes consulting services, system configuration and customization, integration with other software, and employee training. Depending on the implementation complexity, these expenses can represent a significant part of the project budget.

The TCO for Manhattan Associates WMS includes all expenses over the system’s lifecycle — licensing, implementation, maintenance, upgrades, and IT support. At the same time, the cloud-based Manhattan Active model helps reduce TCO by eliminating the need for costly upgrades and lowering reliance on internal IT resources.

User Reviews and Ratings

User reviews and ratings for SAP EWM

According to Gartner Peer Insights, SAP Extended Warehouse Management has an average rating of 4.4 out of 5. 76% of users are willing to recommend the solution, highlighting its deep integration with other SAP systems, such as S/4HANA and TM, as a key advantage.

Users also cite the solution’s extensive functionality and scalability as key strengths, making it versatile for both small and large warehouses.

Among the drawbacks, users mention the complexity of configuring technical integration with SAP TM, as well as a relatively complicated user interface when operating without radio frequency devices. Some users also note that the standard functionality of SAP EWM does not always fully meet their needs, requiring additional customization.

On the G2 platform, SAP Extended Warehouse Management holds a rating of 4.1 out of 5. Users praise its cross-docking and procurement management capabilities. Integration with SAP’s logistics interface and ease of use are also highlighted as key strengths.

On FinancesOnline, SAP EWM received an average rating of 4.5 out of 5. Users highlight its operational efficiency, alignment with warehouse management needs, and strong integration with SAP ERPs as key advantages.

User reviews and ratings for Manhattan Associates WMS

According to Gartner Peer Insights, Manhattan Active Warehouse Management has an average rating of 3.9 out of 5, with 74% of users willing to recommend the solution. Key advantages cited include strong scalability, high performance of the cloud-based solution, and the flexibility of its microservices architecture. Users also praise its intuitive user interface and the functionality of the labor-management module.

Among the drawbacks, users mention the complexity of implementation, the need for significant customization, and additional costs for certain basic features, such as physical inventory counting. System instability and limited flexibility in modifying and adapting the platform to specific business process requirements are also noted.

On the G2 platform, Manhattan Active Warehouse Management holds a rating of 4.0 out of 5. Users highlight its ease of use, intuitive navigation, and effective inventory tracking. Strengths also include a centralized inventory database and timely low-stock alerts. However, some users point out slow data loading and challenges integrating with automated equipment.

SAP EWM vs. Manhattan Associates WMS: What to Choose?

When it comes to selecting a warehouse management system, companies face a challenging decision. SAP EWM and Manhattan Associates WMS are both powerful, flexible solutions, each with its own strengths. So, how do you determine which one is the right fit for your business?

If your company already uses SAP products and values deep integration with existing solutions, SAP EWM is the obvious choice. Its flexible architecture and extensive customization capabilities make it an excellent option for automotive, manufacturing, pharmaceuticals, retail, and consumer goods businesses. SAP EWM is especially effective for organizations with complex warehouse operations, high inventory, and quality management demands.

Manhattan Associates WMS is better suited for businesses handling high volumes of warehouse operations, such as retail, wholesale, or logistics. Its key advantages include a user-friendly interface and frequent updates. However, it's essential to consider the nuances. Implementation may require significant resources, and some features may involve additional costs.

Ultimately, choosing a WMS is a strategic decision that requires careful analysis. It's not just about comparing features — it's about understanding which system will help you achieve your business goals. Sometimes, launching a pilot project may be worth evaluating how the solution performs in real-world scenarios.

If you’re looking for expert guidance on WMS implementation, the LeverX team is ready to support you at every step. Also, if you’re unsure which WMS to choose, we offer a warehouse assessment service to help evaluate your operations. Contact us to discuss your needs — we’ll work together to find the optimal solution.