Migration to SAP EWM in SAP S/4HANA

The New Software Solution for a Powerful Warehouse Management System

SAP Extended Warehouse Management (SAP EWM) is the way to a future-proof, structured warehouse. It aims to facilitate better integration with other business processes as well as clean management and monitoring of warehouse processes.

The challenges facing the market at present are also affecting supply chains. Managing warehouse stock is becoming increasingly complex, especially when it comes to effectively handling materials with different properties, storage locations or expiration dates. To adequately and proactively address internal and external factors, it is necessary to define warehouse strategies that increase flexibility and transparency in stock and processes.

Previously, customers could use the Warehouse Management (WM) system in ERP ECC. However, it is envisaged that SAP will cease support for this system in 2027. In order to ensure that those customers currently using the SAP WM system can continue to enjoy the benefits of a warehouse management system, SAP is providing new functions as part of the migration to the Extended Warehouse Management (EWM) component. SAP's solution covers a wide range of logistics processes, allowing companies with complex warehouse systems as well as companies that have not previously used a WM system to migrate to EWM.

EWM is an integrated solution developed by SAP to support companies with complex logistics processes in achieving efficient warehouse management. Extensive warehouse processes can be implemented in SAP EWM on a customer-specific and flexible basis. Rapid integration with the customer system is also guaranteed. EWM seamlessly integrates with other systems such as ERP systems, Materials Management systems, and Sales & Distribution systems.

A number of additional functions can be integrated into the standard processes. These contribute significantly towards optimizing warehouse processes and increasing work productivity. Linking EWM with applications such as Yard Management, Advanced Returns Management, Cross-Docking or SAP Transportation Management ensures greater transparency and simplified logistics processes. Mobile devices such as handhelds or scanners can be connected via the radio frequency functions.

How Does SAP EWM Differ from SAP WM?

The main difference between SAP EWM and SAP WM is their different system architectures.

SAP WM is an integral part of SAP ERP ECC.

SAP EWM is a standalone system that can either be operated as an embedded (eEWM) system within SAP S/4HANA or is available as a separate (decentralized) system. SAP EWM is deeply integrated with SAP ERP and facilitates seamless integration with other SAP modules such as Materials Management, Sales and Distribution, and Production, thereby allowing companies to integrate and automate their entire Supply Chain Management systems.

SAP EWM can also continue to operate as a decentralized, external system in order to connect several ERP systems to a central warehouse system.

Migration to SAP EWM in SAP S/4HANA
The SAP EWM Deployment Options

The SAP WM module primarily manages internal functions. It provides very few functions in relation to external processes. SAP EWM, on the other hand, manages comprehensive warehouse processes. Thanks to the numerous tools developed or enhanced in SAP EWM to control complex storage facilities and integrate the material flow system (MFS), SAP EWM facilitates the optimized, standardized management of warehouse processes as SAP's central warehouse management system.

Which Functions and Processes Are Mapped in SAP EWM?

The following SAP EWM functions can help to sustainably manage your warehouse processes:

  • Goods receipt process with integrated quality inspection: SAP EWM has integrated quality management, which enables companies to monitor and improve their warehouse processes and stock management. This, in turn, enables companies to improve the quality of their products and increase customer satisfaction.
  • Stock management and internal warehouse processes: SAP EWM provides comprehensive stock management, which enables companies to track and manage their warehouse stock in real time. Companies can monitor, manage and track their stock, thereby ensuring that it is always up to date. Slotting and rearrangement help to better optimize warehouse capacities. The goal here is to optimize the use of warehouse storage bins.
  • Goods issue process and integration with SAP Transportation Management: SAP EWM provides a comprehensive transportation management solution that enables companies to optimize and manage their transport processes. This, in turn, enables companies to optimize their supply chains and reduce costs.
  • Comprehensive analysis and planning options as well as a warehouse management monitor as central access
  • Material flow control (MFS): SAP EWM provides the option to control fully automated warehouse systems. In contrast to SAP WM, material flows are controlled directly, that is, without an additional warehouse control unit, which reduces the number of interfaces, simplifies maintenance and therefore lowers operating costs.

Radio Frequency Identification (RFID) is now used in various warehouse processes. RFID technology has evolved greatly in recent times. Hardware such as barcode scanners, radio-frequency terminals, and printers facilitate the automation of warehouse processes, which can increase productivity, reduce errors, and improve accuracy.

Migration to SAP EWM in SAP S/4HANA
Process Overview of SAP EWM

What Are the Benefits of Migrating from SAP WM to SAP EWM?

There are many benefits to migrating to the EWM system:

Improved Efficiency
SAP EWM offers a wide range of functions that companies can use to optimize their warehouse processes. This can increase productivity and boost efficiency by reducing processing times, lowering the error rate, and improving accuracy.

Reduced Stockholding Costs
SAP EWM can help companies to reduce their stockholding costs by optimizing stock, increasing productivity, and lowering operating costs.

Better Customer Service
By increasing the efficiency and accuracy of warehouse processes, companies can improve their delivery times and delivery quality, which, in turn, increases customer satisfaction.

Flexibility
SAP EWM is a flexible solution that can be adapted to the specific needs of a company, thereby enabling companies to adjust and optimize their warehouse processes and stock management in order to achieve their business goals.

Scalability
SAP EWM is a scalable solution that can be adapted to companies of any size and industry in order to meet their specific needs.

How Is Existing Warehouse Data Migrated to the SAP EWM System?
When migrating existing warehouse data to the SAP EWM system, several installation options are available depending on the system architecture or area of application. SAP provides various migration tools that can be used as part of the migration process.

When migrating data from SAP WM to SAP EWM, the following structures should be implemented:

  • Migration objects such as storage types, warehouse storage bins, areas (picking areas, activity areas), storage units, doors/staging areas, warehouse process types, and movement types
  • Putaway and stock removal strategies defined in SAP WM
  • Master data such as material data, business partner data, and packaging specifications
  • Stock information to ensure that the warehouse stock is transferred correctly

Would you like to learn more about the different processes within SAP EWM? Let our experts advise you on every aspect – from requirements analysis through to technical implementation and support.

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