Supply Chain Management Blogs by Members
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1.1 Comparision

1.1.1 What is SAP ECC WM

What is currently referred to as traditional SAP Warehouse Management is a Software that has been available since the SAP R2. When the client server version of SAP R/3 was introduced in 1992 SAP WM also got a big boost in new capabilities to manage warehouse operations. With this release many companies included WM into their upgrade strategies.Ever since then, SAP WM has been widely adopted, with more than 7,000 customers worldwide. It is a scalable solution that has been deployed in various business environments and industries from simple raw materials warehouses to complex, high-volume, and automated distribution facilities. SAP WM can be deployed as a centralized or decentralized solution. The functionality of SAP WM has been expanded further as part of the latest SAP version ECC 6.0.

1.1.2 What is SAP SCM-EWM ?

In 2005, SAP released a new Warehouse Management solution called SCM-EWM. EWM is the abbreviation of Extended Warehouse Management which offers flexible, automated support for processing various goods movements and for managing stocks in simple to complex warehouses, furthermore it supports planning and efficient processing of all logistics processes in customers warehouses. SAP EWM maps an entire warehouse complex in detail in the system, down to storage bin level. The business user can always determine exactly where a stock belongs to a particular material is located in the warehouse complex at any given time.This redesigned solution accommodates the core functionality of ERP WM with additional capabilities that match those available from third-party, state-of-the-art solutions. The most significant functionality advancements include labor management, slotting and a solution called Material Flow Systems, which is designed to allow the WMS to directly control automation without the use of what is commonly known as a Warehouse Control System or WCS.

1.1.3 How SAP SCM EWM Evolved ?

In year 2002, SAP partnered with Cat Logistics and Ford Corporation to develop a new  supply chain management solution specifically tailored for the service parts management industry. After investing thousands of man-hours on this project, SAP EWM application was built as an application on mySAP SCM (Supply Chain Management) application stack. The development of the solution mainly focused on managing complex warehouse operations. Cat Logistics began implementing the solution for one of its Indianapolis, Ind., Caterpillar parts facilities in January 2006. Then, in September 2007 Evobus (bus and coach manufacturer) built a new logistics centre where interface with miniload system and  SAP EWM was implemented.

Below diagram shows how SAP EWM has been evolving and what capabilities has been intrduced over the time.

1.1.4 Why SAP SCM EWM was developed

EWM Represents a new Supply Chain Management (SCM) based Warehouse Management System (WMS) solution rather than a highly modified Logistics Execution System (LES) / Warehouse Management (WM). Reasons for this completely new design include:

  1. Requirement for data volume, performance and process flexibility made a new architecture necessary.
  2. Follow on from the Decentralised SAP Warehouse concept enabling 24/7 system availability
  3. Extend the basic concept of SAP ECC WM, Transfer Orders to enable process flexibility
  4. To avoid high risk of changing existing architecture of mature application (WM) with thousands of live customers
  5. Customer mind shift from Managing Stocks to Controlling Processes.

1.1.5 Why it is necessary to move from SAP ECC WMS to SAP SCM EWM

  1. SAP future vision is to continue to expand SAP EWM as a professional WMS solution with new capabilities and refinements.
  2. SAP will still support SAP ECC WMS implementations with ever increasing maintenance costs, but no new enhancements are done to make it a comprehensive WMS system.
  3. SAP EWM supports multiple Industries.
  4. SAP EWM enables warehouse activities to be executed seamlessly with inbuilt industry best practises. e.g. Catch Weight Management, Cross Docking, Value Added Services
  5. SAP EWM gives the capability to handle large volume of transactions with faster times required in Consumer Product industries.
  6. As the market leader in Business Systems Developments SAP brings continuous enhancements to SAP EWM with cutting edge technology to enable business to grow faster. e.g. SAP EWM versions 7.02 eliminates middleware's to connect with MFS systems, SAP EWM 9.0 eliminates requirement of middleware's in Voice Picking,
  7. In future SAP SCM – EWM running on SAP HANA will bring the speeds in processing transaction, handling huge volumes of data and capability for predictive analytics.

1.1.6 Capability comparision of SAP SCM EWM 9.0 with SAP ECC-WM based on SAP ECC 6.0

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