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rshnjohny
Explorer
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Manhattan WMS integration with SAP S/4HANA

In the complex world of modern supply chains, businesses often use a combination of software systems to manage various processes. One common scenario involves integrating the Manhattan Warehouse Management System (WMS) with SAP S/4HANA. This integration allows businesses to leverage the strengths of both systems and achieve seamless warehouse operations across their supply chains.

Here’s an in-depth look at the integration process, benefits, and key considerations when integrating Manhattan WMS with SAP S/4HANA.

Overview of Manhattan WMS and SAP S/4HANA

Manhattan WMS:

Manhattan Associates offers a comprehensive Warehouse Management System (WMS) that supports advanced distribution and logistics management. Known for its flexibility and scalability, the system provides tools for labour management, inventory visibility, and slotting optimization.

Manhattan WMS is a highly scalable, feature-rich solution used by businesses worldwide to manage and optimize their warehouse operations. It is recognized for its advanced capabilities in picking, packing, and inventory management, effectively addressing complex warehousing requirements through configurable workflows.

SAP S/4HANA:

SAP S/4HANA is an integrated enterprise resource planning (ERP) system developed by SAP. Built on SAP's in-memory database, HANA, it offers real-time data processing and analytics, streamlining business operations across various functions like finance, supply chain, sales, and procurement. Its core features include simplified data models, enhanced performance, and cloud, on-premise, or hybrid deployment options. S/4HANA is designed to help businesses transition to digital, enabling them to be more agile, efficient, and data-driven.

Both systems offer distinct advantages, prompting businesses to consider integration to harmonize overall supply chain and logistics operations.

Why Integrate Manhattan WMS with SAP S/4HANA HANA?

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Integrating Manhattan WMS with SAP S/4HANA offers several benefits, especially for businesses with diverse warehouse management needs. Here are some key reasons for integration:

  1. a) Leverage Specialized Functionalities:

Manhattan WMS is known for its robust warehouse management features, while SAP S/4HANA excels at integrating warehouse operations with broader business processes, such as finance and procurement. Integrating both systems allow businesses to utilize the strengths of each solution.

  1. b) Unified Data Flow:

Integration ensures seamless data flow between Manhattan WMS and SAP’s ecosystem, allowing real-time updates on inventory, order fulfilment, and stock movements. This creates a more synchronized supply chain, minimizing errors, and improving visibility.

  1. c) Enhance Scalability and Flexibility:

Manhattan WMS manages highly complex warehouse operations, while SAP S/4HANA ensures integration with ERP systems. Together, they allow businesses to scale their warehouse operations across multiple regions or distribution centers without sacrificing efficiency.

  1. d) Support for Complex Warehousing Models:

For businesses operating multiple warehouses or using third-party logistics providers, integrating Manhattan WMS and SAP S/4HANA helps maintain unified and consistent operations.

Integration Methods: Key Approaches

Integrating Manhattan WMS with SAP S/4HANA requires proper planning and leveraging either standard or custom integration methods. Here are the common approaches to integration:

  1. a) Application Programming Interfaces (APIs):

APIs provide a flexible and scalable method to exchange data between Manhattan WMS and SAP S/4HANA. Many modern WMS solutions, including Manhattan, offer APIs to connect with ERP and other systems. SAP S/4HANA also supports APIs for smooth communication with external systems.

How it works:

  • Data from Manhattan WMS, such as order status, stock levels, or shipment details, is sent via APIs to SAP S/4HANA.
  • SAP S/4HANA processes this data and sends relevant updates back to Manhattan WMS through the API channels.
  1. b) Middleware Integration:

A middleware solution (such as SAP PI/PO or a third-party integration platform) acts as a bridge between the two systems. The middleware transforms and transfers data between Manhattan WMS and SAP S/4HANA, ensuring compatibility and real-time synchronization.

Advantages:

  • Centralized data mapping and transformation.
  • Supports integration with other business systems, such as CRM or transportation management.
  1. c) Direct Database Integration:

In some cases, businesses can integrate the databases of Manhattan WMS and SAP S/4HANA directly. While this approach requires advanced customization and technical expertise, it enables real-time data sharing.

Considerations:

  • Custom development might be needed.
  • Data integrity and compatibility checks are essential to avoid inconsistencies.
  1. d) File-Based Integration (IDoc/BAPI):

SAP S/4HANA can integrate with external systems using IDocs (Intermediate Documents) or BAPI (Business Application Programming Interface) to send and receive messages. This method is often used for exchanging bulk data such as orders, inventory movements, and stock status updates.

Process:

  • Manhattan WMS sends data in structured file formats, such as XML or CSV, which is then converted into IDoc or BAPI format and processed by SAP S/4HANA.
  • Similarly, SAP S/4HANA can generate files and send them to Manhattan WMS to update warehouse operations.

Key Data Flows in Manhattan WMS and SAP S/4HANA Integration

Integrating Manhattan WMS with SAP S/4HANA involves the seamless exchange of critical data to ensure efficient warehouse operations. Some of the key data flows between Manhattan WMS and SAP S/4HANA during integration include:

  • Order Management:
    • Data related to order creation, picking, packing, and shipping is shared between both systems to ensure accurate order fulfilment and inventory synchronization.
  • Inventory Management:
    • Inventory movements, stock counts, and replenishments are updated in real-time, ensuring both SAP ERP and Manhattan WMS always reflect the same stock levels.
  • Warehouse Tasks:
    • Tasks like picking, packing, and putaway are optimized through real-time data synchronization, enhanced inventory visibility, and efficient task management.

Integration between Manhattan Warehouse Management System (WMS) and SAP S/4HANA requires the seamless exchange of key data flows to ensure efficient warehouse operations. Below are some of the most important data flows between the two systems, focusing on key processes like inbound and outbound logistics, inventory management, and more.

Outbound Process/Order Fulfilment

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1. Master Data Synchronization

  • Products/Materials: Master data related to products, materials, and stock keeping units (SKUs) must be synchronized between Manhattan WMS and SAP S/4HANA to ensure consistency. This includes attributes such as weight, dimensions, product category, and handling instructions.
  • Business Partners: Data for business partners like customers, suppliers, and carriers must be shared across both systems for streamlined inbound and outbound logistics.
  • Warehouse Structure: Layouts such as storage bins, storage types, and areas need to be consistent between the two systems.

2. Inventory Data Flow

  • Inventory Balances: Real-time updates of stock levels in different locations or bins must be synchronized between Manhattan WMS and SAP S/4HANA.
  • Stock Adjustments: Any changes in stock due to damages, cycle counts, or other adjustments must be updated and communicated between both systems.
  • Inventory Transfers: Movement of goods between different warehouse locations should trigger the update of inventory levels in both systems.

3. Inbound Process (Goods Receipt)

  • Advanced Shipping Notices (ASN): When inbound deliveries or shipments are received, ASNs from SAP S/4HANA may be sent to Manhattan WMS to trigger the receipt process.
  • Goods Receipt Confirmation: Once goods are received and checked in Manhattan WMS, confirmation is sent to SAP S/4HANA to update inventory levels and trigger subsequent processes like quality inspections or putaway.
  • Putaway Instructions: Manhattan WMS may handle putaway instructions based on SAP S/4HANA data, such as predefined storage bins.

4. Outbound Process (Order Fulfilment)

  • Sales Orders/Outbound Deliveries: Sales orders created in SAP are transferred to Manhattan WMS, which handles picking, packing, and shipping processes.
  • Pick Confirmation: Once the order is picked, a confirmation is sent back to SAP S/4HANA, which updates the stock level and outbound delivery status.
  • Shipping Confirmation: Manhattan WMS communicates shipping confirmations back to SAP S/4HANA, which triggers invoicing and shipment tracking.

5. Returns Handling

  • Returns Order Creation: SAP S/4HANA or SAP ERP may generate a returns order, which is passed to Manhattan WMS for processing the physical return.
  • Goods Receipt for Return: Returned goods are processed in Manhattan WMS, and the information is sent back to SAP S/4HANA to update the inventory and returns status.

6. Transportation Data Flow

  • Shipping Instructions: Shipping or transportation orders generated in SAP S/4HANA are sent to Manhattan WMS for shipment planning and execution.
  • Carrier Data: Information about the carriers, tracking numbers, and shipping labels is updated in SAP S/4HANA once the shipment is confirmed in Manhattan WMS.

7. Handling Unit Management

  • HU Data Synchronization: Handling unit data such as pallets, cartons, etc. and their statuses must be consistently updated between both systems, especially during outbound and inbound processes.

8. Reporting and Analytics

  • Operational Data: Manhattan WMS sends operational data such as order status, inventory levels, and performance metrics to SAP S/4HANA for analysis and reporting.
  • Warehouse Performance: KPIs like order accuracy, pick rates, and stock levels are exchanged to create comprehensive reports.

9. Error Handling and Reconciliation

  • Error Logging: Any errors in data transfer (e.g., stock mismatches, failed transactions) between the two systems should trigger error logs for reconciliation.
  • Reconciliation Reports: Data reconciliation ensures that inventory levels, order statuses, and other critical data match between Manhattan WMS and SAP S/4HANA.

Integration Technologies

  • Middleware/Integration Platform: Middleware platforms (e.g., SAP PI/PO, MuleSoft) or API-based integration are commonly used to manage data flows between Manhattan WMS and SAP S/4HANA.
  • IDocs/EDI: Standard formats like IDocs, XML, or EDI are used to transfer data related to orders, shipments, and inventory between systems.

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Summary of Key Data Flows:

  1. Master Data: Products, partners, warehouse structure.
  2. Inventory Data: Stock levels, adjustments, and transfers.
  3. Inbound Logistics: ASN, goods receipt, putaway.
  4. Outbound Logistics: Orders, picking, shipping confirmation.
  5. Returns: Return orders and stock updates.
  6. Transportation: Shipping instructions and carrier updates.
  7. Handling Units: Handling unit updates and synchronization.
  8. Reporting: Operational metrics and performance data.
  9. Error Handling: Reconciliation and error logging.

These data flows ensure smooth warehouse operations, inventory accuracy, and alignment of order fulfilment processes across both systems.

Communication Ports and Protocols:

Integration between SAP S/4HANA and Manhattan Warehouse Management System (WMS) typically involves communication via middleware or direct API calls over specific communication ports. Common communication protocols include:

  • SAP S/4HANA often uses standard ports for communication over protocols like HTTP(S), SOAP, REST, IDoc, or RFC for message exchanges.
  • Manhattan WMS may have different integration approaches, but it commonly relies on APIs (SOAP/REST) or message queues like JMS for communication.

Some commonly used ports:

  1. HTTP (80) / HTTPS (443):
    • Used for REST and SOAP API calls for communication between Manhattan WMS and SAP S/4HANA via web services.
  2. RFC (SAP-specific, typically over ports 3300-3399):
    • SAP S/4HANA uses Remote Function Calls (RFC) for external system integration. Middleware may be required to translate these to compatible API calls for Manhattan WMS.
  3. IDoc (Intermediate Document, typically over ports like 3300-3399 for RFC):
    • SAP S/4HANA may send or receive IDocs to/from Manhattan WMS. Ports used are typically similar to RFC communication.
  4. JMS (Java Message Service):
    • If Manhattan WMS uses a message queue, SAP S/4HANA might need to communicate over a JMS queue using middleware like IBM MQ or TIBCO. The port could vary based on the specific queue implementation, often 61616 for ActiveMQ.
  5. FTP/SFTP (Ports 21 for FTP, 22 for SFTP):
    • File-based data exchange between SAP S/4HANA and Manhattan WMS can be done via FTP/SFTP.

Example Integration:

  • Middleware platforms like SAP PI/PO, Dell Boomi, or Mulesoft are often used to translate between SAP S/4HANA formats (IDoc, BAPI, RFC) and the APIs or message formats used by Manhattan WMS.
  • Both systems can communicate by exchanging data over a predefined integration protocol like XML, JSON, or flat file.

Specific Ports to Configure:

  • SAP Gateway/Dispatcher: Ports 3300+Instance Number for RFC communication.
  • Web services/HTTP: Ports 80/443 for web-based communication (SOAP/REST).
  • FTP/SFTP: Ports 21/22 for file transfers.

To determine the exact ports, the middleware or direct integration protocol needs to be evaluated, and port configurations should align with security policies and firewall settings of both systems.

Real-World Example: A Success Story

  • A global retail giant successfully integrated Manhattan WMS with SAP S/4HANA to optimize operations across distribution centers in multiple regions. The integration enabled real-time inventory updates, reduced order processing times, and improved labour productivity. By using middleware for seamless communication between the systems, they were able to handle large volumes of data without compromising operational accuracy.

Conclusion

Integrating Manhattan WMS with SAP S/4HANA provides businesses with a powerful solution that enhances warehouse efficiency, data accuracy, and end-to-end supply chain visibility. However, to ensure success, businesses must carefully plan, adopt best practices, and address potential challenges head-on. Embracing this integration can drive efficiency, minimize errors, and enable growth in an increasingly competitive landscape.

1 Comment
MichalKrawczyk
Active Contributor

@rshnjohny fantastic blog!! 

Finally some more content on my favourite integration scenario - DWMS 🙂 

It's used by so many companies still and there's so little blogs and articles around that. 

BTW I also wrote a blog on this topic - how to test DWMS without the 3rd party system (DEV, SIT landscapes where the other part is not available): 

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/composable-sap-erp-decent...

 

Thank you,

 

Best Regards,

Michal Krawczyk 

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