5 benefits of SAP EWM for your organization

The Extended Warehouse Management (EWM) solution by SAP has become an integral part of the storage and distribution operations of many organizations. For large warehouses, a decentralized implementation is often the most suitable option, as it is better equipped to handle higher throughput. However, for smaller to medium-sized storage operations, a decentralized implementation may seem excessive, and implementation costs become a deterrent.

For such cases, SAP instead offers the option to implement a centralized EWM solution as an embedded application component in S/4 HANA. This can be a much more cost-effective way for businesses to manage and optimize warehouse activities in the right conditions, offering numerous advantages over a more complex decentralized implementation.

Simplified system landscape

An embedded EWM solution drastically simplifies the IT landscape and reduces the total cost of ownership. With a single solution to manage and a common user experience for all aspects of ERP and warehouse management, user engagement and productivity are also increased.

Seamless Integration

The benefits of running a single solution extend to creating an environment where all processes, including those for planning and execution, product development, warehouse, quality, and transportation, can be easily integrated to enable simple end-to-end operations management.

Accelerated Implementation

SAP Best Practices is built after years of collaboration with companies operating in every stage of the supply chain, offering a comprehensive range of pre-configured processes, sample structures, and automated workflows that can be implemented "out-of-the-box", accelerating both system implementation and ROI.

Flexible licensing

SAP offers two options for implementing an embedded EWM solution, with varying functionality depending on individual business requirements. The Basic Embedded EWM option is included in the costs of S/4 HANA licenses, keeping implementation and operational costs low. This option includes functionality for inventory transparency and control, including inventory, process, and layout management. The Advanced Embedded EWM option includes enhanced functionality but also incurs additional licensing costs. This option comprises more detailed functionality that helps further enhance warehouse operations optimization, including wave, yard, and labor management.

Real-time insights

With EWM embedded in the S/4 HANA platform, the functionality of the built-in analytics engine of S/4 HANA can be utilized to provide detailed analysis and reporting not only of live transactional data but also to enable real-time monitoring of warehouse activities. Pre-configured reports and live dashboards are available to a wide range of users, tailored to their specific tasks. Uniform access to essential performance information in real-time helps increase accuracy and productivity, while decision-makers can take informed actions based on the real-time status of operations.

Reduced data duplication

Since all storage and transaction data are stored in the S/4 HANA database, the need for data replication is significantly reduced. Master data does not need to be duplicated, eliminating the need for CIF (Core Interface). Additionally, as transaction data can be read directly, there is also no need for an EGR document (Expected Goods Receipt). By eliminating the need for multiple copies of the same information, storage costs are much lower and network load is reduced, freeing up valuable resources.

It is crucial for organizations to evaluate the best options for their own individual purposes, but with the flexibility to deploy EWM in multiple ways, SAP has further enhanced the value of one of the most popular warehouse management solutions currently available. If you need assistance in choosing the right option for your needs, the expert consultants at Invenio are ready to guide you through the process and ensure it aligns best with your business.