Supply Chain Management –
Warehouse Management under SAP S/4HANA

Decentralized EWM versus embedded EWM

EWM is available both as embedded EWM, which has been integrated into SAP S/4HANA, and as decentralized EWM, which runs independently of the ERP system on a separate instance. Both options have advantages and disadvantages.

The decision between a decentralized and embedded EWM depends on the specific requirements of a company. If you operate a large warehouse with a high degree of automation and want an independent release strategy, a decentralized EWM might be the better choice. For small to medium-sized warehouses with a focus on a high level of integration, for example with production, an embedded EWM is a suitable option.

Stock Room Management: interim solution for existing customers

SAP Stock Room Management (StRM) is a warehouse management solution integrated into SAP S/4HANA. From a licensing perspective, it is a new name for the previous SAP Warehouse Management (WM) and is based on the same tables, data structures, user exits and transactions as the previous WM. It has, however, fewer functions. StRM is included in the SAP S/4HANA license and is part of SAP’s release and maintenance strategy.

StRM primarily aims at existing customers operating simple, manually managed WM warehouses without any major process changes planned for the future. StRM provides companies with a simple and cost-effective way of transferring existing WM functions to SAP S/4HANA without the need to go through an extensive migration process.

If you compare WM to StRM, StRM does no longer support the following functionalities:

• Connection of subsystems via LSR interface (IDoc WMTORD/WMTOCO)
• Value Added Services
• Task Resource Management
• Cross Docking
• Yard Management
• Wave management
• Possibility to use Stock Room Management as a decentralized variant

Integrate production and warehouse processes

Warehouse management plays a crucial role in production logistics. Its task is to provide production with the right materials in the required quantity at the right time. It also has to meet increasingly complex requirements, such as end-to-end batch tracking and tracing or seamless integration into quality assurance processes.

Documenting incoming goods and feedback from production is an ideal example of a typical function at the interface between production and logistics: the data must be recorded as quickly and efficiently as possible – whether manually by the machine operator or automatically by a machine data recording system. As soon as the data has been recorded, the finished goods, which may be stored on pallets or packaged in some other way, must be taken immediately to the warehouse or the next production area.

Provide production with material

Production logistics is closely interlinked with manufacturing processes. The components required in production must be taken to the right workplace at the right time and in the right quantity. The detailed steps of this process can be complicated. Here are some examples of issues that can arise during this process:

• Is the material provided for a specific order or is it supposed to be available for all production orders?
• May only batches of specifically approved qualities be supplied for production orders?
• Is batch tracking and tracing relevant? Who or what determines which batch is required at the workplace?
• How do you deal with fluctuating material consumption if you want to keep the feedback processes as lean as possible?
• How do you integrate machine or production data acquisition into the process?

Incoming goods

As with production, a number of questions arise with regard to incoming goods:

• How do you register incoming goods as efficiently as possible on site?
• How do you label containers and pallets which you directly produce into?
• Quality management: How does the warehouse management provide support when quality assurance stocks are checked and moved?
• When products are packed in different packaging: Do you issue one material number or do you need various materials for different types of packaging?

consolut has gained in-depth experience in a large number of projects and in a wide range of industries – both in the implementation of SAP EWM and SAP WM/StRM. Our customers benefit from our holistic approach: warehouse and production specialists seamlessly collaborate.

You do not need any additional licenses to use the Extended Warehouse Management (EWM) under S/4HANA. A license for the EWM basic application is included in the SAP S/4HANA license; there will be no additional costs. The basic application includes all the basic functions required to operate a manual warehouse.

An Advanced license is required for additional functions. It entitles you to use additional functions such as the material flow computer (telegram control, conveyor technology), wave management and deconsolidation for incoming goods as well as transport units/gate management, cross docking, work management or value added services.

We would be happy to consult you in a workshop to determine which license options are suitable for your warehouse requirements and processes. We will help you find the ideal solution that meets your individual requirements without incurring unnecessary costs.