Optimize your Warehouse’s Potential: Which SAP WMS is Right for Your Business?

Maventic
Posted on Aug 29, 2024

Optimize your Warehouse’s Potential: Which SAP WMS is Right for Your Business?


Are you confused about which is the right SAP Warehouse Management Solution (WMS) for you?

Navigating the SAP WMS landscape, however, can be akin to traversing a labyrinth, particularly given the plethora of products available. By understanding your specific warehouse management requirements, considering factors such as warehouse size & complexity, and aligning your budget with the right WMS, you can transform your warehouse into a well-oiled machine, driving growth and success.

To choose the right WMS for your business, first, let us explore the different solutions available in the SAP warehousing ecosystem.

 

Available Solutions in the SAP Warehousing Ecosystem

The SAP warehousing landscape has different WMS options to choose from depending on business needs and wants. Let's delve into the capabilities of each offering to gain a comprehensive understanding of their functionalities.

Stock Room Management:

  • Stock Room Management is essentially SAP's replacement to the initial SAP Warehouse Management (WM) offering, giving customers a non SAP Extended Warehouse Management (EWM) solution.

  • It is designed for small to medium-sized businesses and offers basic  warehouse management functionalities.

  • It has simple warehouse features, like managing inventory, moving stock, and counting physical inventory. This ensures efficient stock control and visibility.

SAP Warehouse Management (WM):

  • SAP WM is the original product offering from the SAP suite of warehousing solutions. It provides businesses with basic warehouse management functions that can be extended with Task and Resource Management (TRM).

  • Medium-sized businesses with complex warehouse operations adopt SAP WM for their businesses as it employs enhanced inventory management capabilities.

  • Advanced features like bin management can be accessed, enabling optimized warehouse operations and ensuring inventory accuracy.

  • Regarding a future-proof solution, SAP EWM (Basic) will replace SAP WM by the year 2025.

SAP Extended Warehouse Management Basic (EWM):

  • Offers more advanced functionalities beyond SAP WM.

  • It is mainly suited for medium-sized businesses with manually operated processes who seek an extensive range of warehouse management capabilities

  • As a part of SAP's strategic offering, it can be customized to include additional functions when necessary.

  • Includes support for integrated yard management, cross-docking, and multi-warehouse setup. It also helps in streamlining complex warehouse operations and improving its efficiency.

SAP Extended Warehouse Management Advanced (EWM):

  • It includes all the functionalities that SAP EWM Basic provides on top of other added features such as labor management, slotting management, and integration with automated storage and retrieval systems (AS/RS).

  • Tailored to the needs of large enterprises with highly demanding warehouse management requirements, it is SAPs flagship offering.

  • Being a part of SAP Supply Chain, it can seamlessly integrate with Quality Management, Transportation Management, Global Track & Trace, and Production-Planning-Execution. It also provides support for automation, integration, picking & putting away strategies, and more.

  • Integrating automation into your warehouse operations can enhance flexibility and enable more efficient management.

 

Choosing the right SAP WMS for your business


 

Basic Outlook

Features

Stock Room Management (with HUM)

SAP EWM (Basic)

Embedded on SAP S/4HANA

SAP EWM (Advanced) Embedded on SAP S/4HANA

SAP EWM Decentralized on SAP S/4HANA

Architecture

Included in SAP S/4HANA ERP

Included in SAP S/4HANA ERP 

Included in SAP S/4HANA ERP 

Separate application on SAP S/4HANA ERP

Future Updates from SAP

Not supported

Improvements limited to Basic features will be added in future SAP S/4HANA versions

Future Innovations for the warehouse functionalities will be delivered only in case of SAP S/4 HANA for EWM

License

Included in the SAP S/4HANA Enterprise Management license

Additional Classic SAP EWM Component License is required

Adaptation to Warehouse Modernization

Very low

Low

High

Very High

 *All SAP S/4HANA references are based on either SAP S/4HANA On-premise edition or RISE with SAP S/4HANA Private edition

 

 

Comparison of Functionalities 

Features

Stock Room Management (with HUM)

SAP EWM (Basic)

Embedded on SAP S/4HANA

SAP EWM (Advanced) Embedded on SAP S/4HANA

SAP EWM Decentralized on SAP S/4HANA

Barcode Scanning/Mobile Execution

Yes

Yes

Yes

Yes

Bin to Bin transfer

Yes

Yes

Yes

Yes

Basic Inbound

Yes

Yes

Yes

Yes

Basic Outbound

Yes

Yes

Yes

Yes

Physical Inventory

Yes

Yes

Yes

Yes

Complex Processes like process oriented or layout-oriented storage control

No

Yes

Yes

Yes

Internal Warehouse Movements

Yes

Yes

Yes

Yes

Wave Management

No

No

Yes

Yes

Cross-docking

No

No

Yes

Yes

Serial Numbers

Yes through HUM

Yes

Yes

Yes

SSCC Numbering of HUs

Yes

Yes

Yes

Yes

MFS Support

No

No

Yes, (Some restrictions)

Yes

*All SAP S/4HANA references are based on either SAP S/4HANA On-premise edition or RISE with SAP S/4HANA Private edition

 

 

Integration Capabilities

Features

Stock Room Management (with HUM)

SAP EWM (Basic)

Embedded on SAP S/4HANA

SAP EWM (Advanced) Embedded on SAP S/4HANA

SAP EWM Decentralized on SAP S/4HANA 

WM-PP Interface (Production Integration)

Basic Integration

 

1.Delivery-based Integration

 

2. Advanced Production Integration

 

3. Direct Production Integration

 

4. MES-Driven Staging

 

1. Delivery-based Integration

 

2. Advanced Production Integration

 

3. Direct Production Integration

 

4. MES-Driven Staging

 

1. Delivery Based Integration

 

2. Advanced Production Integration

 

3. MES-Driven Staging

Integration with S/4H Core

Very tight ERP integration

Tight ERP integration

Tight ERP integration

Robust ERP-Interfacing mechanism

WM-SAP TM Integration

No

Yes

Yes

Yes

Technical Migration Complexity from Old SAP WM

Low

Medium

Medium

Medium to High

Complexity of warehouse supported

Low 

Medium

Medium to High 

Highly complex

*All SAP S/4HANA references are based on either SAP S/4HANA On-premise edition or RISE with SAP S/4HANA Private edition



 

Recommendations Depending on Warehouse Size

Features

Stock Room Management (with HUM)

SAP EWM (Basic)

Embedded on SAP S/4HANA

SAP EWM (Advanced) Embedded on SAP S/4HANA

SAP EWM Decentralized on SAP S/4HANA 

Recommended for

-Small size warehouses with manual operations without any advanced requirements 

 

- e.g. Affiliate managed small warehouses

 

-Stores that need bin to bin transfer

-Small to medium size warehouses requiring full stock transparency and control

 

-Own operated distribution centers without much complexity of operations

-For medium to  large warehouse requiring advanced & optimized warehousing features 

 

Integration with small to medium production places with less complex manufacturing Integration need

 

(decoupling of WMS from production is not the core requirement)

-For all medium to very large complex warehouses that require optimized warehousing features.

 

-Best suited for heavily automated warehouses that have business models consisting of decoupling of WMS from MFG IT landscape

 

- Large warehouses with advanced needs looking to implement Next-Gen technologies for warehouse automation (like IOT, Smart robots, and more)

*All SAP S/4HANA references are based on either SAP S/4HANA On-premise edition or RISE with SAP S/4HANA Private edition

 

 

Features of SAP Warehouse management (WM)

Features

SAP Warehouse Management

(WM)

Architecture

Part of SAP S/4HANA ERP 

(Within Compatibility Scope)

Future Updates from SAP

Not supported

License

Included in the SAP S/4HANA Enterprise Management license.

Futuristic Warehouse Modernization Outlook

Very low

Barcode Scanning/Mobile Execution

Yes

Bin to Bin transfer

Yes

Basic Inbound

Yes

Basic Outbound

Yes

Physical Inventory

Yes

*All SAP S/4HANA references are based on either SAP S/4HANA On-premise edition or RISE with SAP S/4HANA Private edition

 


Conclusion

 


First, a clear understanding of the size, complexity, and characteristics of what may be unique to your warehouse is very important. This will help you in identifying specific processes such as inventory management, warehouse automation, order fulfillment, etc. that need optimization.

Understanding the above aspects will give you an idea about which WMS is the best for your business. Furthermore, it is essential to assess your budget and timeline since implementing SAP Warehousing solutions can vary in cost and complexity. Establishing a clear timeline for the implementation project can help in ensuring minimal disruption to your ongoing operations and ensure the allocation of the right amount of resources.

The total cost of ownership, mostly, and not limited to, include the software licensing fee, customized hardware requirements, implementation services, and ongoing maintenance of the solution.

By meticulously evaluating your warehouse management needs, understanding your budget and timeline, and consulting with experienced SAP WMS implementation partners, you can confidently select the optimal warehousing solution that empowers your business.

maventic | Custom Developement

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