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SAP Extended Warehouse Management

The intent of this article to share my understanding of the SAP EWM based on system usage and readings from various sources including widely published documents from SAP. Hopefully it will serve as a quick reference guide for anyone who is looking to get a quick snapshot of what SAP EWM can offer.

Introduction to SAP EWM

•     EWM is designed deliver products through an integrated logistics and fulfillment process

•     It supports better warehouse process and stock visibility

•     It is recommended for Warehouses or distribution centers with high volume of transactions handled per day

•     It enables the smooth execution of supply chain functionalities such as detailed packaging, shipping logistics, cross-docking, labor management, yard management among others

•     It is designed to support Warehouse and Yard management

•     It can either deployed as decentralized or deployed as add-on to ERP

Business Challenges at Warehouse and Yards

•     Outdated Warehouse management systems

•     Poor Visibility into Warehouse execution and response times

•     Need to efficiently manage fast and slow moving items competing for warehouse space

•     Need to efficiently store and distribute products of different shape, size, weight and volume

•     Need for performing Value added Services

•     Complex cross-docking and order fulfillment processes

•     Need for advanced Radio Frequency (RFID) functionality

•     Inefficient Yard Management process

•     Need for Third-party logistics and outsourcing support for consolidators and carriers

•     Tracking of Resource needs and Manpower Utilization

•     Integration needs with other logistics process like Transportation management, Available to promise

EWM Key Features

1.   Inbound Processing

•    Advanced Put away bin determination

Put away strategy uses parameters in the product master data to maximize warehouse capacity

Process Oriented Storage control enables complex put away process steps

Strategies include manual entry, fixed-bin storage, general storage, addition to existing stock, empty storage bin, near-fixed picking bin, pallet storage

•    Yard Management

Helps manage trucks and trailers movements in your yard

Better Asset utilization by synchronizing vehicle unloading and loading

Expected goods receipt

Creates inbound deliveries in SAP EWM before actual delivery in ERP

Enables planning product receipt in advance

Allows checking the Warehouse workload and plan future receipts

2.   Outbound Processing

•    Wave Management

Multiple Outbound Warehouse tasks are grouped and processed together

Waves can be generated automatically based on criteria like activity area, route or product master data characteristics

–     Enables Labor efficiency and cost savings


Allows to move products from Receiving to shipping thereby expediting the fulfillment of urgent orders

EWM can automatically trigger Opportunistic cross-docking 

Helps to reduce reducing processing and storage costs

•    Replenishment Process

Picking area bins can be replenished based on Min and Max levels

–     It can also be triggered based on Demand from open Warehouse tasks

3.   Internal Processing

•    Slotting and Rearrangement 

Helps to optimize storage-bin management

Determines best fit for product storage based on product data, requirement data and packaging data

Ensures that products are assigned to the correct storage bin based on their size and frequency of access

Value Added Service (VAS)

Allows assembling product, labeling, packing, or kitting

Data collected against VAS order is used to bill customer for performed service

•    Labor Management

Allows tracking warehouse employee performance against labor standards

Helps to better manage and measure employee productivity

–     Allows to plan, simulate and view warehouse activities

Business Benefits

•     Allows Real time visibility and control on Warehouse operations with Warehouse Monitor

•     Enables improved Warehouse efficiency, better process and stock visibility

•     Helps effective Warehouse Planning and execution for High Volume transactions

System guided Put away process


Flexible Picking process

•     Helps optimize warehouse movements (from point of goods receipt to goods issue) 

•     Efficient distribution techniques improve service levels while reducing capital investments in inventory

•     Optimized management of movements in the yard (from the time a trailer checks in until product checkout)

•     Labor and Resource Management helps manage resources & their effectiveness