SAP EWM tutorial For Freshers And Experienced:
In the current era of living, we all know that business organizations are able to meet customer demands and improve their business efficiently within the given deadlines. To ensure that they are working as expected, they are utilizing different software, tools, or platforms which are developing and attaining high demand. SAP EWM is one of the supply management platforms that has come up with advanced features. In this article, you will gain an understanding of the SAP EWM, its importance, terminologies, advantages, and disadvantages, etc. Let’s get started!
What is SAP EWM?
SAP EWM (Extended Warehouse Management) is considered to be part of SAP Supply Chain Management which is similar to the Warehouse Management System, but it is also flexible and provides more robust and advanced features in order to perform the management of the key activities in a warehouse.
SAP EWM is used for the management of large inventory in a Warehouse and also provides its support for the processing of goods movement. It allows an organization or a company to control their Warehouse’s inbound and outbound processes along with the movement of goods in the Warehouse.
The primary process in a Warehouse is the incoming and outgoing of the materials, fulfillment of customer orders, goods receipt and goods issue, and distribution of goods. Whenever an organization doesn’t store any goods, then there is no need for Warehouse management to be involved in the management of the goods.
The inbound process usually refers to the process of storing the goods in the warehouse and their location while the Outbound process involves picking up the goods. Whenever a material is stored in a warehouse, it will be stored in the storage bin and you will be able to find its current location.
By using the SAP EWM, all the movement of the goods will be controlled by a warehouse management system and will also provide you with the tools that will help in monitoring the warehouse activities. It also helps you in managing additional functions in the Warehouse like creating a serial number, vendor management inventory, batch number, resource optimization, and value-added services. SAP Extended Warehouse Management is not only involved in monitoring the number of goods in Warehouse but also involved in the management of other critical functionalities and delivery of goods in an effective manner.
SAP Warehouse Management is not similar, but quite opposite to Inventory management. Inventory management provides you with the count of goods in the storage location and its physical location will be unknown. Warehouse management involves dealing with goods movement along with monitoring the physical location of the goods recorded with specific documents.
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How is SAP EWM different from SAP Warehouse Management?
As mentioned earlier SAP EWM is one of the chapters in the SAP Supply Chain Management that provides more robust and advanced features to manage key activities in the Warehouse.
SAP Extended Warehouse Management is said to be a bit similar to Warehouse management but it provides more advanced features that include picking, RF framework, put away, Warehouse structure, and also many more flexible options that help in managing the warehouse functions as expected.
SAP EWM also helps you in creating a set of new elements like resources, activity area, labor management, and work centers in SAP EWM that are not available in Warehouse Management.
SAP EWM provides a more robust solution and deals with the management of warehouse functions in a company or an organization. It is also a part of SAP Supply Chain Management which also provides its extensible support for all the processes within logistics and supply chain.
Key features of SAP EWM:
When compared with warehouse management, SAP EWM includes some advanced features which made it more popular. Below listed are some of the key features which turned out to be a plus for SAP EWM.
- By using SAP EWM, you are provided with the access to control the warehouse activities like posting, picking, and managing storage bins and good receipts.
- You are provided with the feature of setting up an alert for changed data before goods receipt from EWM to the ERP system, an inbound delivery split from EWM to the ERP system, and reversal or correction of the receipt of the goods from EWM to the ERP system.
- It also allows you to perform deconsolidation of handling units which includes different sets of products before keeping them away in the various storage sections.
- SAP EWM also allows you to determine or identify the storage concepts that can be used slotting for products and optimize the arrangement of goods warehouse automatically.
- It helps in improving efficiency by allowing you to perform executable tasks like work packages, consisting of warehouse tasks that the warehouse employees are required to perform as part of warehouse management activities.
- It also helps in the management and tracking of vehicles as well. It could be any other transportation unit from the yard check-in to yard check-out, which also includes movements and other tasks within the yard.
- SAP EWM also includes storage and handling of hazardous substances and their transportation which will be based on the regulations from SAP Environmental Health & Safety EHS.
- In SAP EWM, you are also allowed to plan for the labor times and resources more effectively and hence this will help in making your Warehouse efficient by managing key resource management tasks effectively.
- In SAP EWM, you can make use of a Warehouse cockpit which will allow you to display warehouse key figures graphically and helps in evaluating or monitoring activities by using defined chart types.
- It also provides the flexibility to use the cross-docking which will allow you to perform transportation of handling units across different distribution centers or warehouses till they reach their final location in the Warehouse.
Deployed Options in SAP EWM:
- SAP EWM can be either considered as deployed in an ERP server or you can also consider it as an application in the Supply Chain Management landscape.
- SAP Extended Warehouse Management (EWM) is integrated with Enterprise Resource Planning in order to access transaction and master data and make use of features like slotting, availability check also requires its integration with CRM.
- SAP EWM is now considered as a separate and different application, which will be sharing the same server with the other Supply Chain Management applications. You can also run SAP EWM in its own SCM environment which is suitable to get improved and enhanced performance.
Types of Organization Units:
There are different types of organizational units in a Warehouse system which will be based on the different levels. Below are a few of the organization units.
- Warehouse Number − Each and every warehouse will be maintaining a warehouse number that is present at the highest level in a warehouse management system. Each and every warehouse number will also contain a substructure that will be mapping the warehouse relationship.
- Storage Type − There are different types of storage where products will be physically stored in a warehouse such as open storage, goods issue and goods receipt, racks.
- Storage Section − The storage section is a part of the storage type and will be representing a group of bins that contain the same characteristics. Some of the commonly used storage sections include fast-moving or slow-moving items, etc.
- Storage Bin − The Storage bins are used to represent the physical location of storage space. This will help us in gaining an understanding on where the products are stored in Warehouse. They are considered to be at the lowest level of the organization structure. It is important for you to mention its exact location when you store an item in a Warehouse.
- Activity Areas − The next categorization to Storage bins is the activity area. It includes multiple activities like picking, put away or a physical inventory. Based on the activity, you will be able to assign the same storage bin to the different multiple activity areas.
- Quant: Quant refers to the number of goods in the storage bin. The quant is specifically used for the management of the inventory in storage bins.
Advantages of SAP EWM:
We all know that the globalization of businesses has brought about markets & customers from geographically different continents. It is necessary for the business to have and maintain robust warehouse and distribution operations in order to ensure that the market/customer needs are met. Large businesses will maintain large, big, and high-volume warehousing, preferably with decentralized deployment to make sure that the high throughput is handled. This is not in the case of the small & mid-sized warehousing operations. The cost of implementing a decentralized deployment is one of the prohibitive factors. Below are the set of benefits of using SAP EWM.
IT landscape: Simplified The cost of ownership is drastically reduced and will be too low, and the IT landscape will be simplified by making sure to implement an embedded SAP EWM solution. The SAP EWM solution is providing a standard user experience that is present across all the different components of the warehouse management & operations, which is further enhancing user engagement and productivity.
Cost-effective solution: For large-scale businesses, SAP is offering a cost-effective option that allows the deployment of a centralized EWM solution as an embedded application component through S/4 HANA. SAP EWM solution is bestowing the businesses with a host of benefits to ensure easy management and optimization of the warehouse operations.
Solution implementation: Accelerated SAP comes up with an extensive offering of pre-configured processes, sample structures, and automated workflows which will help in the deployment “out-of-the-box”, which will also help in bringing both the system implementation and ROI.
Data Redundancy: Reduced There is a high reduction in the data redundancy as entire warehousing & transactional data is present within the S/4 HANA database. There is no need for the master data to be duplicated, which is further subsequently eliminating the requirement to make use of CIF (Core Interface). Apart from this, as transactional data can be read directly, there is no need for an EGR (Expected Goods Receipt) document which is eliminated.
Operations monitoring: Real-time SAP EWM embedded into the S/4 HANA platform is flexible to leverage S/4 HANA’s functionality of embedded analytics engine in order to derive detailed analytics & reporting of not only live transactional data but also flexible to provide the real-time monitoring of warehouse operations. Besides, pre-configured reports & live dashboards are included and available to a wide range of users, customized to individual responsibilities. It also provides unified access to critical performance information in real-time which further helps to elevate accuracy and productivity while allowing the decision-makers to take informed actions based on the real-time status of operations.
Process Integration: Seamless The SAP EWM embedded solution is creating an ideal environment that involves the integration of all the disparate processes, including those across planning and execution, warehouse, quality, and transportation, product development, which enables end-to-end operations management.
Solution licensing: Flexible Based on the individual business requirements, SAP is offering the deployment of an embedded EWM solution with two varying functionalities that are explained below:
a. Basic Embedded EWM option within the cost of S/4 HANA licensing: This option will allow us to keep the deployment & running costs down along with functionality for stock transparency & control, including inventory, layout management, process, etc.
b. Advanced Embedded EWM option with enhanced functionality: This option will incur an additional license fee. This option includes a detailed functionality that further enhances or improves the optimization of warehouse operations, including wave, yard, and labor management.
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