Discover the evolution from SAP Warehouse Management (WM) to SAP Extended Warehouse Management (EWM). This article breaks down the key differences between the two systems, highlighting how EWM’s advanced automation, scalability, and real-time integration capabilities can significantly improve warehouse efficiency, streamline operations, and meet the demands of modern supply chains.

SAP Warehouse Management vs. SAP Extended Warehouse Management

Warehouses are at the heart of global commerce. They control the movement of goods from the point of manufacturing to the point of storage and, ultimately, the customer. Their efficient operation and management have become more important than ever. But as the world changes and new technologies appear, the greater the demands on distribution hubs, warehouses, and the supply chain as a whole.

SAP offers an advanced solution 一 SAP Extended Warehouse Management (SAP EWM) 一 to address these challenges.

SAP EWM 一 Evolution of SAP WM

SAP Extended Warehouse Management (SAP EWM) is a software solution for managing storage and handling of goods within warehouses, distribution centers, and logistics hubs.  Developed from the basic features of SAP Warehouse Management (SAP WM), SAP EWM has become a substantial breakthrough, meeting the increased challenges of effectively running a smooth warehouse operation.

SAP WM was originally developed to help organizations manage and regulate the transportation and storage of items within a warehouse. The solution was released as part of the SAP ERP package in the early 1990s and provided the following essential functionalities:

• Inventory management
• Bin management
• Order processing.

SAP WM has been a trusted solution for many years due to its powerful features, helping numerous organizations enhance their warehouse management strategies. However, in 2005, SAP introduced SAP EWM, and took warehouse management to a new level. 

Integrated within the SAP Supply Chain Management (SCM) module, SAP EWM provides a more complete and flexible solution for managing warehouse operations, making it perfect for complicated and high-volume environments. Its main goal is to improve efficiency and performance by automating operations, such as receiving and storing goods, regulating inventory levels, replenishing stock, and optimizing available space. Let's compare the capacities of these systems in detail.

SAP WM vs. SAP EWM

Features

SAP Extended Warehouse Management (EWM) offers a broader range of features compared to SAP Warehouse Management (WM). Below, is the capability comparison of SAP SCM EWM 9.0 with SAP ECC-WM based on SAP ECC 6.0:

Source: Capability comparison of SAP SCM EWM 9.0 with SAP ECC-WM based on SAP ECC 6.0 by SAP

Scalability and adaptability

SAP WM is designed for basic warehouse processes. It supports fundamental inventory management, stock movements, and warehouse operations and is best suited for smaller or less complex warehouse environments.

SAP EWM is a more scalable and flexible solution for managing complex warehouse processes. It supports advanced functionalities, such as detailed inventory tracking, multi-level bin management, and customizable warehouse processes, making it ideal for large-scale and high-volume operations. 

Integration with other SAP modules

SAP WM integrates with SAP ERP (ECC) for basic logistics and inventory processes. But integration with other SAP modules requires additional customization. In contrast, SAP EWM easily integrates with SAP S/4HANA, SAP Transportation Management (TM), and SAP Quality Management (QM).

Process automation

SAP WM offers basic automation features for standard warehouse tasks, which are limited when compared to modern requirements. On the other hand, SAP EWM offers extensive automation capabilities, including integration with automated systems like conveyors, robotics, and automated picking. This boosts efficiency and reduces manual intervention.

Technical architecture and future roadmap

SAP WM is based on the older SAP ERP (ECC) architecture. Support and updates are gradually being phased out. SAP EWM is built on the SAP S/4HANA architecture. Being backed by this innovative solution, it provides a modern, scalable platform with real-time capabilities. Moreover, SAP is currently focusing on improving EWM with advanced analytics and emerging technologies such as IoT and AI.

As businesses consider their warehouse management solutions, it’s important to note that SAP has announced the end of support for SAP WM within the ECC environment by 2025. This decision is part of SAP's broader strategy to promote intelligent enterprises and the migration to SAP S/4HANA.

For companies that currently use SAP WM, this is an opportunity to migrate to SAP EWM and remain aligned with the latest advancements and stay competitive.

Migration to SAP EWM

For companies looking to stay within the SAP ecosystem, migrating to SAP Extended Warehouse Management (EWM) is the best solution. You can choose from three options, based on the complexity and scale of your operations:

• Basic EWM in SAP S/4HANA provides more functionality than SAP StRM but is less advanced than the full SAP EWM suite. It supports essential warehouse processes but lacks advanced features like wave management, slotting, and rearrangement. Basic EWM operates within the same SAP S/4HANA instance and does not require separate licensing.
• Advanced EWM in SAP S/4HANA offers full capabilities for complex and high-volume warehouse operations. It can be deployed either as part of SAP S/4HANA (in-stack) or independently (extra stack). Although both in-stack and extra stack require a separate license, in-stack deployment is often more cost-effective.
• Warehouse Management Public Cloud Edition. This option provides a future-proof solution for businesses ready to implement cloud technology. The cloud edition offers scalability and flexibility to meet evolving warehouse management needs.

If you still have doubts regarding migration to SAP EWM, let’s learn how this tool can address your specific warehouse management challenges and make your operations effective.

Overcoming Key Warehouse Management Challenges with SAP EWM

In warehouse management, numerous challenges can hinder efficiency and growth. Discover how SAP Extended Warehouse Management (EWM) can effectively address the most common issues and transform your business operations.

Managing multiple locations and large inventories

SAP EWM helps you manage multiple warehouse locations, a wide range of products, and large inventory volumes by offering real-time tracking, efficient space management, and automation of routine tasks. This ensures smooth coordination and better control across all warehouses, making it easier to handle complex and large-scale operations.

Real-time visibility

The solution provides real-time tracking of inventory, shipments, and warehouse activities, which allows you to monitor and manage your operations. This real-time visibility helps you quickly identify and address issues, optimize processes, and make informed decisions, resulting in overall efficiency and reduced delays.

Reducing manual errors

SAP EWM automates key warehouse tasks such as picking, packing, and inventory management, thus addressing manual processes that lead to errors and inefficiencies. 

Inventory discrepancies, stockouts, and overstocking issues

SAP EWM provides accurate, real-time inventory tracking and management. This ensures that inventory levels are consistently updated to reduce the chances of errors. In addition, SAP EWM offers automated replenishment and demand forecasting, which helps prevent stockouts and overstocking by maintaining optimal inventory levels.

System integration

The system allows integration with other SAP modules and external systems, ensuring that data flows smoothly between different parts of the business, such as procurement, transportation, and inventory management. Thanks to this feature, you can improve overall efficiency, reduce data silos, and build better coordination across the supply chain.

Optimization challenges

The solution optimizes labor, equipment, and warehouse space by assigning tasks efficiently. As a result, you can make best use of resources, improve space utilization with smart storage strategies, and ensure everything is organized and used effectively. 

Meeting customer demands

SAP EWM enhances order processing speed and accuracy while providing comprehensive tracking capabilities to meet and exceed customer expectations.

How Can We Help?

Do you need help implementing SAP Warehouse Management System solutions for the first time, migrating data from SAP WM to SAP EWM, or optimizing your current SAP EWM setup? LeverX is here to assist you. Our experts have extensive experience with SAP implementation, integration, and migration, which is backed by over 950 successfully completed projects across various industries.

A notable example of our projects includes assisting an international pharmaceutical company with their SAP EWM implementation. This work involved automating manual processes, enhancing material traceability, and integrating SAP EWM with their existing systems. The results speak for themselves: a 35% increase in warehouse staff productivity, a 15% reduction in time spent on material transfer order processing, and a 40% decrease in material movements within the warehouse.

Start Collaborating with Our Team

Want to achieve comparable results or impressive improvements for your warehouse operations? Transforming your warehouse management system with SAP EWM or other solutions is an important step toward operational excellence. At LeverX, we are committed to making this transition as smooth and beneficial as possible for your business.

Contact us today to schedule a consultation. Our team will assess your needs, create a customized implementation plan, and guide you through every step of the process.