Stock change

The reasons for the change in SAP warehouse management systems are the release strategy of the end of 2016 and the expiry of the usage rights of SAP WM or SAP LE-TRA (transportation processing) at the end of 2025 - both in SAP S/4 Hana Suite and SAP ECC.

Many SAP users take this development into account when strategically considering the design of their upcoming warehouse management projects. In this context, licensing and implementation costs as well as the required scope of functions determine whether the existing SAP WM installation should be continued or a redesign in connection with an implementation of SAP EWM should be aimed for.

The functional decision, on the other hand, is based on aspects that go beyond the standard functional scope of SAP WM.

• Is it possible to connect conveyor systems and automatic storage systems?
• Can internal transports be divided into several work steps?
• What about the use of waves, the mapping of additional logistical services or a more detailed mapping of shipping?

Once these and other requirements have been identified, a decision can be made regarding the appropriate product.

These functional differences already reveal the project-specific challenges of SAP EWM projects, since all requirements are mapped in one system. In particular, the project-specific delimitation of complexity and functionalities helps to ensure that projects can be completed on time and within budget.

However, the holistic integration of warehouse logistics into the SAP ERP and SAP EWM process chain is also becoming increasingly important in current projects.

The S/4 Hana Release 1610 also adds another decision-making component to the use of SAP EWM "embedded".

With this release, the functionality of SAP EWM 9.4 was integrated into the S/4 Hana system. Thus, the two warehouse management products from SAP are also available in this scenario.

SAP EWM is available here with a certain range of functions, the so-called "Basic Warehouse", free of product licenses. This means that in the S/4 system a significantly greater variety of possibilities within warehouse management can be used with SAP EWM compared to the classic SAP WM. This applies both to an installation as a decentralized system or also "embedded" in S/4 Hana.

For example, storage and retrieval processes can be controlled in a layout- or process-oriented manner or the advantages of resource management can be used. In the S/4 Hana system, of course, all other functionalities of SAP EWM are also available, which are summarized by SAP under the description "Extended Warehouse".

Implementations of the WM product have decreased significantly in recent years. Above all, however, with a view to the future viability of the two warehouse logistics systems, the use of SAP EWM should be considered from a logistics and IT strategy perspective. This is because no further development of SAP WM has been in the works for several years now.

The current roadmap for SAP EWM, on the other hand, provides for continuous further development and new releases in the coming years. These will further expand SAP EWM as a logistics system with additional functionalities, such as the recently introduced invoicing of warehouse services (activities within the warehouse can be conditionally evaluated and invoiced), a direct connection of automation technology (SPS) by means of the integrated material flow system (MFS) or also the expansion of organizational structures for special application areas such as air freight security.

Particular attention is paid to the interface strategy, which is already moving SAP EWM to a browser-based user interface in the short term. One example of this is the Fiori apps for the roles "Warehouse Clerk" and "Returns Clerk" delivered in the last service pack. For the user, this results in a more convenient and intuitive user interface.

In addition, the Customer Connection Program (www.sapimprovementfinder.com) also supplements SAP EWM with numerous practical functionalities that have been requested from the user's point of view during product development. These include enhancements in queue processing and extensions to the central warehouse management monitor.

As an SAP consulting company with a long-standing focus on warehouse logistics, we at the Cpro Group are currently benefiting greatly from this situation. Especially due to the historical offer of both SAP EWM and SAP WM, we can support our customers in the questions regarding the product decision on the basis of mutual experiences and project examples.

It is precisely these opportunities for comparison that create a jointly brought about decision-making certainty for both the individual short-term and the correct long-term strategy in the warehouse logistics area with SAP.

In addition to purely functional considerations, the focus here is often on the objective of a time-optimized cost-benefit situation versus a future-oriented product decision in order to avoid later transformation costs.

IA4SP topic group warehouse logistics

This differentiated view is one of the first focal points of IA4SP's warehouse logistics topic group, which was founded in mid-2016. Thus, not only SAP users, but also SAP partners of IA4SP can benefit from the knowledge gained here through several specialized SAP consulting firms.

The applicability for comparisons between SAP's two warehouse logistics products is, of course, only one aspect of the topic area. Other topics that will be elaborated and made available by the participants are, for example, effects of the UI strategy on logistics, connection of controls, sensors and devices, evaluation of recommendable supplementary products (add-ons) and, of course, the integration of warehouse logistics in S/4 Hana.

This provides the participating SAP partners in the warehouse logistics group with a broad pool of prepared know-how and information with which they can advise their customers in a targeted manner. Even if individual topics go beyond the actual portfolio of the respective SAP partner, a suitable specialist can be quickly consulted thanks to the network-oriented cooperation of the topic group.