Understand SAP Warehouse Management Systems and Master the Operational Excellence

Warehouses have become the backbone of fulfillment operations in the present-day, digitally driven supply chain world. With the correct WMS systems, many businesses have carved out a fortune for themselves. 

However, the spike in warehouse requirements, logistic operations, and distribution centers has made managing an optimal warehouse management system quite a task.

That’s when SAP Warehouse Management Systems rise as a transformative force, providing advanced software and tools to precisely manage inbound and outbound processes. It’s a strategic shift to streamline operations. But what makes SAP warehouse management one of a kind? 

Dive in to understand the nitty-gritty of SAP warehouse and see how it can transform your warehouse operations.

SAP Warehouse Management Meaning | A Quick Overview

SAP warehouse stands for extensive warehouse management software that offers automated support by leveraging the complex processes of the depository. It offers real-time solutions for supply chain management by optimizing storage and RF framework integration while utilizing limited resources. This software facilitates resource optimization via:

• Inventory management
• Goods movements
• Defining warehouse structure
• Picking and packing
• Cross-Docking

The SAP warehouse management system has emerged as a critical asset to deliver the much-needed breakthrough in efficient supply chain management. By employing this tool, you can outperform rivals and make the best use of your workforce. 

Core Functions of SAP Warehouse Management

Initially launched in the early 1990s as a part of SAP ERP WAREHOUSE SUITE, the SAP WM has covered a long trail of evolution. To meet the diverse and evolving requirements, SAP has constantly upgraded its management capabilities. Here are a few core functions of SAP WM that ensure effective operation: 

• It facilitates record-keeping for tracking the quantity, location, and synchronization of stock with the WMS systems.
• Furthermore, it categorizes the warehouse structure in the system for space utilization and optimizing storage areas, shelves, and bins.
• Encourages effortless goods movements like stock transfers, goods issues, etc., within the depository.
• Provides necessary support for efficiently completing the picking and packing process.
• Optimizes cross-docking operations to directly transfer the incoming goods to outbound shipping docks.

You can even request customized SAP WMS systems to optimize the software according to your operational needs. Moving on, let’s quickly take a dig into its distinctive features, which set it apart from the competitors.

Enchanting Features of SAP WMS Systems

For effective supply chain and inventory management, the SAP WM has incorporated a number of advanced features. They are as follows: 

RFID Integration for Smart Tracking: It has RFID integration, which gives the option to enable advanced tracking for greater inventory visibility and management.

• Automated Material Flow Systems: To enable seamless coordination of automated conveyor systems, forklifts, and other goods processing equipment, it has autonomous material flow systems.

• Warehouse Analytics and Reporting: SAP has incorporated robust reporting capabilities that constantly analyze the performance metrics and efficiency of the warehouse.

• Control Units: A number of warehouse control units are integrated to boost the operational effectiveness of warehouse processes.

• Serial Number Tracking for Batch Management: SAP warehouse management systems support batch management and serial number tracking to deal with perishable goods.

Benefits of SAP Warehouse Management Systems

Emerging as an effective solution for the enhancement of inventory accuracy and tackling warehouse management challenges, the SAP WM has successfully centralized multiple operations. Employing this software for critical warehouse functions can change your company’s dynamics. Follow along to learn the benefits that it provides!

• Streamlines Warehouse Operations: To make the best out of available resources, SAP WM automates critical processes like picking, packing, and shipping. This optimizes space utilization, minimizes error, and reduces manual work.

• Increases Productivity: The RFID integration enables faster task execution to ensure the resources are used efficiently. It offers labor management tools to precisely track performance and optimize workforce usage.

• Enhances Inventory Accuracy: SAP WM provides a real-time inventory tracking option to minimize stock discrepancies, overstocking, and stockouts. Furthermore, it also assists in improving forecasting and replenishment planning.

• Provides Real-Time Data: To provide insights into the warehouse performance, it employs extensive dashboards and reporting, which ultimately helps in taking data-driven decisions and supports end-to-end visibility across the supply chain.

• Improves Order Fulfillment: Facilitates accurate picking and shipping of goods to enhance customer satisfaction by providing error-free deliveries on time. For advanced order fulfillment, it also offers wave picking and cross-docking.

• Aids Regulatory Compliance and Traceability: Helps in complying with the industry regulations with full traceability. It precisely tracks batch, IOT numbers, serialized items, and expiration dates to make you audit-ready.

• Scalability and Flexibility: From small warehouses to global distribution networks, the SAP warehouse management system software supports effortless operations and easily adapts to changing business needs.

You can avail yourself of all these benefits and beat your competitors just by employing the SAP warehouse management systems, and as your business grows, you can opt for the SAP EWM services that we have discussed below in great detail.

What are SAP Extended Warehouse Management (EWM) Systems?

Similar to WMS systems, SAP EWM is an Extended Warehouse Management module designed to facilitate complex warehouse operations. It offers advanced tools for companies to modernize their supply chain management. This advanced version of SAP WM integrates a robust solution to overcome the diverse challenges that come along as you advance your business. 

EWM ensures adaptability in the ever-changing inventory management landscape. It provides the following advanced capabilities: 

• RF Technology
• Picking Strategies
• Yard Management
• Replenishment Logic

Distinctive Features of EWM Systems

With the help of SAP EWM systems, you can tailor complex warehouse management solutions as per the unique requirements of your organization. As your business scales, you can opt for the following advanced features: 

• Mobile Integration: This upscaled version of the SAP warehouse management system houses native RF functionality, which facilitates mobile-enabled inventory operations. Though the mobile integration will maximize efficiency, the SAP mobile solutions, i.e., ITSmobile and MOBGUI, have limitations in customization that require an additional development layer, causing usability and performance-related issues. 

• Enhances Real-Time Capabilities: The EWM system offers live visibility and control of supply chain operations. It further optimizes the goods storage bin management within the warehouse. 

• Advanced Picking and Putaway: To enable quick and accurate transfer of goods from one storage to another, the EWM tool offers the advanced picking and putaway options.

• RF Framework Integration: The RF integration gives a visual interpretation of warehouse key figures to evaluate and monitor activities with the help of defined chart types.

Primary Benefits of SAP EWS Systems

By catering to the diverse needs of supply chain management, the SAP EWS systems offer the following benefits: 

• Enhanced Flexibility: This advanced software provides customized solutions for complex warehouse processes to offer greater flexibility through streamlined workflows.

• Better User Experience: It has RF solutions that help in tackling the usability-related challenges that arise due to outdated interface designs.

• Upgraded Efficiency: SAP EWM has automated central processes to improve warehouse efficiency. Utilizing this tool ensures rapid deployment and optimization without investing in any additional resources.

How to Implement SAP EWM or WMS Systems?

Before setting up SAP WMS systems, you need to consult the official SAP documentation or opt for an SAP expert consultation to determine the hardware requirements, depending on the version and deployment. To incorporate SAP WM into your organization, you’ll need to follow the steps: 

• Create an implementation team
• Draft change management plan
• Program material movements and traceability
• Implement and activate SAP WM 
• Opt for user training 

Initiate Data Migration

After carefully determining the system requirements, you need to start the data migration from your existing system to SAP WM or EWM. For that, you have to,

• Download the material master data from your current system
• Locate the existing warehouse structure
• Map your inventory data to the SAP WM or EWM system
• Lastly, verify the data

User Training

The final step in SAP WM or EWM integration is user training. It’s a pivotal step for the successful adaptation of the software. By opting for the user training, you’ll be able to precisely comprehend the system and utilize its capabilities to its best capacity. 

There are different types of learning programs available, which include classroom, online, and on-the-job training. Depending on your requirements, you can opt for any of them to get familiar with the system.

SAP WM vs. SAP EWM—Which One to Choose? 

SAP warehouse management systems (WM) and SAP EWM are both designed to fulfill your warehouse management needs. However, they differ in terms of function and capabilities, which may put you in a challenge of how to choose the best SAP system for your business.

Choose SAP WM When

You can opt for the SAP warehouse management system when your company needs

• Automated solution
• Stock management
• Inventory control for high-volume warehouse operations
• Process intricate supply chain logistics

As per the latest announcement, SAP has decided to terminate all support for WMS systems because of the increased demand for warehouses. So we suggest you go for EWM in case the SAP actually decides to proceed with the decision. 

Choose SAP EWM When

This is the advanced version of SAP WM with additional features and capabilities. It has

• Internal routing
• Labor management
• Greater flexibility
• Higher scalability
• Integration with other SAP modules

You can trust the EWM system to manage multiple warehouses in different locations. However, before finalizing your decision, you should consider the following factors:

• Warehouse size
• Requirements of your organization
• Integration capabilities
• Complexity in management
• Scalability

What the Future Holds for WMS Systems? 

As the technology keeps evolving, the future of WMS systems keeps on revolutionizing with Artificial Intelligence (AI) and the Internet of Things (IoT). The integration of these innovations in the SAP warehouse management system will act as a transformative force in transitioning from conventional warehouse operations to modern supply chain management. 

Artificial Intelligence in Supply Chain Operations: The AI algorithms can process and analyze vast data in no time and predict the demand and optimize inventory levels to ensure data-driven decision-making. AI-based robots and drones are installed for simple tasks like picking, packing, and sorting. It reduces the time and manual labor, thus ultimately increasing the efficiency of operations.

IoT in Warehouse Management: By leveraging IoT, visibility of operations can be increased as it connects different devices and sensors within the warehouse. These IoT sensors can easily monitor inventory levels, identify surfacing issues, and analyze the condition of goods to enable proactive management.

Frequently Asked Questions