The SAP Extended Warehouse Management FAQ Series: SCM Optimizer for EWM

[gunther_sanchez]

With the introduction of Unified Package Building (UPB) in Extended Warehouse Management for SAP S/4HANA, many of our customers would like to understand more about how they could use the SCM Optimizer in their implementation projects and what are the aspects to consider.

We collected some interesting facts and typical questions on SCM Optimizer usage for EWM in the following blog post.

What is the SCM Optimizer?

The SCM Optimizer is a software (implemented in C/C++) that can be installed on the application server or on a separate service running on Windows or Linux. The SCM Optimizer, also called “Optimizer”, can be used by SAP backend solutions, such as Transportation Management or Extended Warehouse Management, for algorithms-based problem solving.

The software component SCM Optimizer contains a collection of different optimizer engines. Each engine is delivered as a separate executable inside the archive. The engines are specialized on different kinds of optimization scenarios, e.g. scheduling or network planning, package building and more.

Find more information about the SCM Optimizer via SAP Note 1640509 - FAQ about the setup of SCM Optimizer.

Where is the SCM Optimizer used in EWM for SAP S/4HANA Private Cloud Edition (PCE)?

Since SAP EWM 9.5, the SCM Optimizer (VSO engine) can be used in EWM through the integration of Package Building (PB) for packing in inbound processes, repacking, outbound delivery processes, as well as posting changes and stock transfer. Learn more about Unified Package Building in EWM and Unified Package Building via SAP Help.

As we gradually introduced new features, you can find an good overview on which process is supported by UPB via SAP Note information 3076865 - Unified Package Building: Additional Application-Specific Information.

While using the Unified Package Building (UPB) is scope of basic functions, the usage of Package Building (PB) in EWM is scope of advanced functions.

When to use the Package Building Optimizer (PBO)?

The advantage of PBO is that it can also build optimized pallets/packages for different sized products considering their dimensions and the weight. You do not need any package instructions or packaging specification, it does a kind of 3D Tetris to build the pallets. There are simple (stacking) rules available, but you can also configure it in more detail. In addition, the results can be visualized in a 3D scene (transaction /SCMB/TEST_UBP).

How and where to install the SCM Optimizer?

If you are an on-premise customer, you can install the SCM Optimizer on a separate instance (recommended) or on the application service of the consumer solution (e.g. EWM, TM). However, please review SAP Note 1640509 - FAQ about the setup of SCM Optimizer highlighting the advantages and considerations guiding you on this decision.

Please as well review the installation guide mentioned via SAP Note 1686826 - Installation help for installing SCM Optimizers.

If you are a Private Cloud customer, and you have not yet used SCM Optimizer in e.g. your TM PCE system, our Enterprise Cloud Services (ECS) team will install the optimizer on your cloud infrastructure. You can contact your local ECS team and create service requests.

Do I have to perform a “SCM Optimizer migration” when I am transforming from Business Suite to SAP S/4HANA Private Cloud Edition (PCE)?

No, migration activities are not required. The SCM Optimizer is a state-les solution, that does not have an own database or configuration-layer. So, it just can be installed in a greenfield approach during transformation projects. Please ensure that you install the latest optimizer patch available on service marketplace.

As a background, the SCM Optimizer is called from the backend solution with a configuration that is defined in the application layer (e.g. EWM, TM, etc.). This means that there is no migration of SCM Optimizer relevant, when moving from Business Suite (e.g. SAP EWM 9.5) to EWM in SAP S/4HANA (PCE).

What are the commercial aspects to consider using SCM Optimizer in EWM for SAP S/4HANA Private Cloud Edition (PCE)?

In general the usage of Package Building including Package Building Optimizer in EWM is considered advanced scope (included in the advanced license).

If you are a PCE customer, please note that the infrastructure for the SCM Optimizer is not yet included in the EWM subscription. You could consider adding an additional SAP Connection Package for SCM Optimizer hosting.

In case you already have a subscription for Transportation Management for SAP S/4HANA, etc., the included optimizer ca be used by EWM too.