SAP EWM (Extended Warehouse Management) is a powerful warehouse management solution designed to optimize companies' logistics processes. It provides real-time visibility into inventory management and increases efficiency by using technologies such as machine learning, Radio Frequency scanning and RFID.

As an owner or manager of a small to medium-sized warehouse, you may be wondering if SAP EWM is the right choice for you.

In the past years our team has implemented EWM solutions at warehouses of all sizes, ranging from small warehouses to huge retail DCs with 100,000+ pallet places. Based on our experience we feel safe to say any warehouse, large or small, can benefit from running EWM.

In this blog we will explain why and how.

Recently we have noticed a shift in the type of companies implementing EWM solutions. With the introduction of S/4HANA and the “embedded” deployment option of EWM, all companies running SAP automatically get the basic version of the EWM module at their disposal. This makes it attractive for companies with warehouses of all sizes to implement EWM and enjoy the benefits of advanced warehouse management functionality.

At the same time, we have experienced in multiple implementation projects that smaller warehouses have different operational dynamics and considerations to make.

Below are the top 4 questions we have encountered.

What are the benefits of a Warehouse Management System (WMS)?

Improved efficiency: a WMS allows you to automate and streamline the warehouse management process, improving staff productivity and efficiency.

Improved inventory management: The system provides real-time visibility into inventory status, allowing companies to make better decisions about inventory replenishment and movement.

Increased accuracy: Using a WMS minimizes manual errors and reduces the risk of human error in the warehouse management process.

Improved customer service: The system provides real-time visibility into inventory location and availability, which enables companies to better inform their customers about delivery times.

Cost effectiveness: A WMS leverages advanced technologies such as RFID and automation, allowing companies to streamline their warehouse management processes and save costs.

Even though SAP EWM can handle complex warehouse processes, the system is modular and can be configured for basic processes as well.

For example, advanced storage and putaway strategies can be configured and applied. However, EWM can also be configured in such a way that the warehouse operators can decide the optimal bin locations themselves.

This is just one example of the flexibility within EWM, and the key is to define a setup which is “fit for purpose” for your warehouse.

Guided by our consultants the sweet spot can be identified so you can leverage the advantages of a WMS without overcomplicating things and adding administrative tasks.

One of the features of SAP EWM is its handling unit management functionality, which can be used to group materials for transport or storage. While this may be useful for some warehouses, there are reasons why small warehouses may be better off without handling units in SAP EWM.

Small quantities: When dealing with small quantities in storage, handling units have limited added value and can bring complexity with them.

Increased efficiency: Without handling units, the process of receiving and storing goods can be faster and smoother because there is no need to create the handling units.

Reduced complexity: Handling units can add complexity to warehouse processes, requiring additional steps for packing and unpacking goods. Working without handling units can simplify processes.

The power of SAP EWM is that the system can be configured to work with and without handling units. We have even implemented EWM at warehouses which use a combination of both. In this case handling units are not used internally, but in the outbound process shipping handling units are used to register packages required for transportation.

In the end, whether to use handling units is a decision to be made case by case and our experts can provide tailer-made advice what fits best for your warehouse.

SAP EWM supports all your warehouse processes with and without using scanners. However, using RF scanners in your warehouse can provide several benefits, including:

Increased accuracy: Using RF scanners, warehouse workers can work more accurately when receiving, shipping, counting and moving goods. The system records all movements directly upon scanning and can provide error messages when incorrect actions are taken.

More efficient processes: RF scanners can make processes within the warehouse more efficient, increasing productivity and reducing lead times. There is no more need for paper registration and separate data entry in the system.

Real-time information: RF scanners can track real-time information on inventory levels, locations and order statuses, allowing warehouse workers to work faster and more efficiently without constantly walking to their workstations. The executed actions are also available to the rest of the company in real time.

Improved traceability: RF scanners can accurately track every movement of an item within the warehouse, improving the traceability of goods.

Increased customer satisfaction: With the accuracy and efficiency offered by RF scanners, orders can be processed faster and more accurately, which can lead to increased customer satisfaction.

In short, working with RF scanners can lead to more efficient and productive warehouse operations.

Please note that if you decide to use RF equipment for SAP EWM, working with barcode labels for products and locations is essential. Working with barcode labels is therefore an important part of using RF equipment in conjunction with SAP EWM.

In our experience, SAP S/4HANA EWM is a smart choice for small logistics companies looking to grow and stay competitive in a rapidly changing business environment. The system provides a flexible and effective solution to improve and optimize warehouse management processes without adding additional complexity or license costs.

With our proven track record and expertise, insideSCM is the right consulting company to help you optimize your warehouse operations.

We have extensive experience in successfully implementing SAP EWM for small and midsized warehouses over the past years. Our team of experts has a deep understanding of the unique needs and challenges faced by these businesses and can provide customized solutions to address them.

Of course, you are not alone. insideSCM offers guidance and advice. Want to know how to ensure a smooth transition to SAP S/4HANA? And how insideSCM can help your medium-sized warehouse? Then get in touch with us!

After upgrading the insideSCM systems to the S/4HANA 2022 release, we have implemented the latest version of Advanced Shipping & Receiving (hereinafter ASR). In this blog, we are pleased to share our experience.

As described by Ricardo Post in the January update, it is a very interesting development, simplifying the integration and communication between Transportation Management (TM) and Extended Warehouse Management (EWM). Due to direct integration, the use of Transportation Units (TUs) is no longer necessary, and communication occurs via Freight Orders (FOs). Process steps are visible from the moment a truck arrives at the gate until goods receipt or 'goods issue' is posted in the warehouse. Information flows freely through the different components, providing insight into the status of the goods during the process.

ASN stands for Advanced Shipping Notification.

In addition to removing the Transportation Units, ASR also has the ability to add two objects, namely consignment orders and loading/unloading points.

A consignment order in TM represents a document that can be used to group various transport needs based on certain criteria. Think of the same source and destination location, the same delivery dates, and the same business partner. This document forms the basis for communication between the involved parties. For example, a supplier can communicate with its receiver about which products are being delivered where and when via a unique ID that serves as a reference and is available to the parties involved.

ASR also offers full EDI support, allowing the processing of truck loads to be automatically configured. Communication is all done via 1 document, and thanks to the new 'error handling,' information is also shared if there is still an error in the message. The missing information can then be filled in manually until the problem is resolved.

Loading/unloading points are a group of doors in the warehouse with the same function, such as receiving or outgoing goods. For example, a warehouse worker in EWM can see where the goods need to be placed, and a transport planner in TM can see which door or dock a truck needs to load. For this purpose, SAP provides the new app "Load or Unload Freight Orders" (see screenshot below).

In addition to the above-mentioned objects and EDI support, ASR also offers several new or improved functionalities. One of them is multi-pick/multi-drop, allowing a truck to unload and load at the same location on a multi-stop route with just one business document.

Furthermore, ASR enables cross-warehouse loading/unloading to load stocks from IM and EWM warehouses together in the same truck. This was not possible before and leads to faster processing speeds.

If you have any questions, we can demonstrate the possibilities, how it works and feels (look & feel), and explain in more detail the benefits of Advanced Shipping & Receiving. If you are interested, please feel free to contact us!

Recently, we upgraded our insideSCM systems to the S/4HANA 2022 release. We internally familiarized ourselves with this release during the EWM SAT (Solution Acceptance Testing) last summer at SAP Waldorf, and it is now also available to our customers. 

The 2022 release of SAP S/4HANA offers numerous new features and capabilities to help businesses streamline their processes and gain deeper insights into their data. 

One particularly interesting development is in the area of Advanced Shipping & Receiving, further optimizing the integration between TM and EWM. Highlighted below are some interesting developments of S/4HANA 2022 in the field of EWM. 

Since the release of S/4HANA 2020, SAP introduced Advanced Shipping & Receiving (ASR) functionality to enhance the integration between SAP EWM and SAP TM. With ASR, TM and EWM are directly integrated via Freight Orders without the need for familiar Transportation Units. In this release, SAP continues to innovate, introducing features such as 'Order Based Planning.' Additionally, customer returns can now also be processed via ASR. 

S/4 2022 offers improved support for warehouse automation through SAP Warehouse Robotics, seamlessly integrated with SAP EWM in S/4HANA 2022. Through Work-In-Process (WIP) Management, SAP introduces the ability to execute warehouse processes for semi-finished goods without the need to create all material master data. 

In recent releases, SAP significantly enhanced the integration between warehouse and production. In this release, SAP introduces new functionality where the MES system can adjust the staging process in EWM in response to changes in production resources and the Production Supply Area. SAP refers to this concept as Dynamic Staging. 

Before the 2022 release, users had to determine at the article level whether 2-step picking was relevant. From the 2022 release onwards, this can be determined at the wave item level, making the 2-step picking concept much more flexible. Through interleaving, warehouse resources can efficiently combine various tasks to minimize travel distances. With the introduction of interleaving warehouse zones, this concept is further enhanced. 

Sometimes, it's the small developments that make users' lives easier. For example, from the 2022 release onwards, SAP allows Goods Receipt and Goods Issue to be booked directly from the warehouse monitor. 

Of course, you're not alone. insideSCM offers guidance and advice. Want to know how to ensure a smooth transition to SAP S/4HANA? And how insideSCM can help your organization? Then contact us!

Welcome to our blog overview of SAP S/4HANA, where we regularly cover various topics relevant to businesses using or considering this advanced ERP platform. In our blogs, we share insights, updates, and practical tips to help you make the most of SAP S/4HANA, empowering your business to thrive in a rapidly evolving world.

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