What is SAP EWM?
SAP Extended Warehouse Management (SAP EWM) is a warehouse management module/system included in the
SAP Supply Chain Management (SAP SCM) solution package. The flexible warehouse management system has been
developed to manage high-volume warehouse operations. It provides flexible and automated support for managing
the stock movements of the entire warehouse process, from goods to picking, packing and removal.
SAP EWM provides advanced features for managing inventory in a warehouse such as real-time inventory,
warehouse structure, and labor management.
It was developed based on an older version of SAP Warehouse Management, a more basic version of itself. SAP has
announced that it will end all development and maintenance support in SAP Warehouse Management in 2025 due to
the increasing demand for warehouses, planning and procurement. This means that companies will now demand the
SAP EWM module instead of SAP WM in the future.
What are the Differences Between SAP EWM and SAP Warehouse Management?
In the previous part of our article, we said that SAP EWM was developed in line with the increasing needs in supply
chain processes. This means that SAP EWM is actually a more comprehensive solution than SAP WM. SAP
Extended Warehouse Management is similar to Warehouse Management but provides more features to manage
warehouse functions such as aggregation, storage, RF framework, warehouse structure, and more flexible options.
Apart from this, new elements such as activity area, resources, workforce management and work centers that are not
available in WM can be created in SAP EWM.
What are the Main Features of SAP EWM?
SAP EWM solution helps organizations control warehouse activities such as collecting, recording and managing
warehouse bins and goods receipts.
● SAP EWM covers the storage, processing and transportation of hazardous materials in accordance with SAP
Environmental Health and Safety Regulations.
● SAP EWM enables better planning of runtimes and resources, thus helping the organization manage its
warehouse efficiently using key resource management tasks.
● SAP EWM enables the visual presentation of important warehouse figures and the evaluation or follow-up of
the operation according to the determined lines.
● With cross-docking in SAP EWM, it can be used to move transport units from multiple distribution centers or
warehouses before reaching the final location in the warehouse.
● It can deconsolidate processing units containing different items until we place them in various storage areas.
● In SAP EWM, organizations can set alarms for changed data before goods are received by the ERP system.
● SAP EWM evaluates warehouse concepts through placement and automatically optimizes the warehouse
arrangement of products.
● SAP EWM enables organizations to perform executable tasks such as work packages for warehouse
management that warehouse workers can perform.
Why Should Businesses Use the SAP EWM Solution?
For more than four decades worldwide, SAP has provided many new applications and platforms for different types of
businesses and organizations of different sizes, such as installation and operations. SAP's warehouse management
solution is designed and developed as one of SAP's best in Supply Chain Management, the logical measure of the
logistics activities of their products for organizations. Since 2007, many companies have preferred to use SAP EWM
for Supply Chain Management.
SAP EWM has been designed in such a way that it can be shaped according to business needs by meeting possible
changes if necessary in order to eliminate any deficiencies understood by practical actions. Real users of SAP EWM
provide transparent data on stock or raw materials on hand. SAP EWM provides organizations with greater inventory
control, ensuring optimum use of resources. In addition, SAP EWM enables organizations to fuse accounting and
financial aspects with SAP EWM, helping planners to make the best decisions and thus reduce costs.
Is SAP EWM Good?
At first glance, SAP EWM may seem like a difficult product, but it is a very advanced and comprehensive product for
a corporate company. If SAP EWM is applied appropriately to the organization, it increases efficiency, especially in
the collection and supply processes. Most of the SAP EWM disadvantages come from not working with the right
partner. If organizations work with a good business partner and consultant, and a good project is created together,
better warehouse management is provided.
● Ready product
SAP EWM is a product in which all processes for warehouse management are offered to organizations ready-made
by a provider. In SAP EWM, processes have been tested and settled as they have been tried by other companies
before. Therefore, like other warehouse management software, the functions you need or don't eliminate the risks of
being untested due to its special development.
● Integration
If organizations are using products such as SAP ERP, the integration process is easier both in terms of configuration
and management so that they can integrate two different products.
● Follow-up
SAP EWM allows organizations to monitor warehouse management processes and their employees in detail. In
addition, SAP EWM can be arranged according to the business and resource plans of the organizations.
What are the Advantages of SAP Extended Warehouse Management?
Extended Warehouse Management is to help SAP realize the benefits of automation through true integration with the
Material Flow System (MFS). SAP EWM increases the business value and efficiency of warehouse operations for an
organization dealing with production, warehousing and logistics. However, it is not correct to limit the advantages of
SAP EWM to warehouse management only. SAP EWM also simplifies the goal of delivering a good customer
experience with a fully integrated solution.
SAP EWM is flexible, with its scalable functionality it can be adapted to the needs of any business. It, therefore,
benefits warehouse operations of any size and complexity. SAP EWM adapts to address new or updated processes of
organizations and offers flexibility to design solutions that meet operational needs.
SAP Extended Warehouse Management automatically updates warehouse processes in real-time directly in SAP and
provides live access to all relevant business data, allowing instantaneous responses and responses. However, SAP
EWM events can be accessed via mobile devices. There is a wide variety of mobile applications specifically designed
for integrating EWM processes into SAP. This improves the user experience and increases productivity.
EWM users can maximize efficiency in their business processes with automated warehouse processes.
Is SAP EWM Part of S/4HANA?
No, SAP EWM is not part of SAP S/4HANA. SAP EWM is a standalone on-premise warehouse management
solution that can be integrated with SAP S/4HANA.
What is Decentralized SAP EWM?
Decentralized SAP Extended Warehouse Management (EWM) is a distributed and decentralized SAP EWM solution
that allows organizations to maintain and manage multiple warehouses in multiple geographic locations. This
distributed architecture enables the organization to centralize its master data and keep track of its inventory in real
time. Decentralized SAP EWM helps organizations to optimize their storage space, reduce costs, and increase
productivity. It also enables them to improve inventory accuracy and customer service and reduce lead times.
What is the role of SAP EWM Consultant?
SAP Extended Warehouse Management (EWM) consultants are experienced professionals who help businesses
integrate their warehouse and inventory management systems with SAP EWM. They provide solutions to streamline
processes, increase operational efficiency and provide visibility into warehouse operations. SAP EWM consultants
can help with system design, functional configuration, data migration, testing, training and go-live support.
The role of an SAP EWM Consultant is to support the implementation and ongoing maintenance of an enterprise
warehouse management system. This includes understanding customer requirements, configuring the SAP EWM
system, coordinating user training and providing ongoing technical support to ensure the system is running efficiently
and effectively. The consultant must also have a strong understanding of the warehouse processes and be able to
identify areas for improvement and automation.
SAP EWM Consultancy
SAP EWM Consultancy is a specialized form of consultancy that focuses on providing business solutions and advice
on the use of SAP Extended Warehouse Management (EWM) software. SAP EWM Consultants provide advice and
guidance on the implementation, configuration, and maintenance of the system. They offer services to companies that
are interested in optimizing their warehouse operations, inventory management, and supply chain processes. SAP
EWM Consultants work with clients to identify areas where optimization can be achieved and help to create
customized solutions to meet their needs.
Businesses that migrate their warehouse processes to SAP EWM need SAP EWM consultancy to optimize their
EWM processes. Because expert support is required to benefit from the functions of SAP EWM in the most efficient
way.
MDP Group optimizes the warehouse processes of companies with more than 12 SAP EWM consultants. With SAP
EWM consultancy, you can contact us to maximize the efficiency of your warehouse processes and supply chain
processes.
SAP EWM Organization Structure 👍
A) Company : (OX10) - SALAAR
SPRO → SAP IMG → Enterprise Structure → Definition → Financial Accounting → Define company
A company is an organizational unit in Accounting which represents a business organization according to the
requirements of commercial law in a particular country.
B) Company Code : (OX02) - DEVA
SPRO → SAP IMG → Enterprise Structure → Definition → Financial Accounting → Edit, Copy, Delete, Check
Company Code
The company code is an organizational unit used in accounting. It is used to structure the business organization
from a financial accounting perspective.
C) Plant : (OX10) – DEVA
SPRO → SAP IMG → Enterprise Structure → Definition →Logistics - General → Define, copy, delete, check
Plant
The plant is an operating area or branch within a company.
The plant is embedded in the organizational structure as follows:
● The plant is assigned to a single company code. A company code can have several plants.
● Several storage locations in which material stocks are managed can belong to a plant.
● A single business area is assigned to a plant and to a division.
● A plant can be assigned to several combinations of sales organization and distribution channel.
● A plant can have several shipping points. A shipping point can be assigned to several plants.
● A plant can be defined as a maintenance planning plant.
A plant has the following attributes:
● A plant has an address.
● A plant has a language.
● A plant belongs to a country.
● A plant has its own material master data. You can maintain data at plant level for the following views on a
material master record in particular: MRP, Purchasing, Storage, Work scheduling, Production
resources/tools, Forecasting, Quality management, Sales, Costing.
The plant plays an important role in the following areas:
● material valuation
If the valuation level is the plant, the material stocks are valuated at plant level. If the valuation level is the plant, you
can define the material prices for each plant. Each plant can have its own account determination.
● inventory management
The material stocks are managed within a plant.
● MRP
Material requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning
can be made across plants.
● production
● costing
In costing, valuation prices are defined only within a plant.
● plant maintenance
If a plant performs plant maintenance planning tasks, it is defined as a maintenance planning plant. A maintenance
planning plant can also carry out planning tasks for other plants (maintenance plants).
D) Storage Locations : (OX09)
SPRO → SAP IMG → Enterprise Structure → Definition → Materials Management → Maintain storage
location
A storage location is the place where stock is physically kept within a plant.
A storage location has the following attributes:
•There may be one or more storage locations within a plant.
•A storage location has a description and at least one address.
•It is possible to store material data specific to a storage location.
•Stocks are managed only on a quantity basis and not on a value basis at storage location level.
•Physical inventories are carried out at storage location level.
•A storage location can be assigned to a warehouse number in the Warehouse Management System. You can
assign more than one storage location to the same warehouse number within a plant.
Storage locations are always created for a plant
E) Purchasing organization ; (OX08) – DEVP
SPRO → SAP IMG → Enterprise Structure → Definition → Materials Management → Maintain purchasing
organization
From the Materials Management and Purchasing view, the purchasing organization is responsible for all purchasing
activities (including the processing of requests for quotations and purchase orders, for example).
The purchasing organization is integrated within the organizational structure as follows:
● A purchasing organization can be assigned to several company codes.
(= Corporate-group-wide purchasing).
● A purchasing organization can be assigned to one company code.
(= Company-specific purchasing).
● A purchasing organization can also exist without being assigned to a company code.
● Since each plant must be assigned to a company code, the latter can be determined via the plant at the time
of each procurement transaction even if the procuring purchasing organization has not been assigned to a
company code.
● A purchasing organization must be assigned to one or more plants.
(= Plant-specific purchasing).
● A purchasing organization can be linked to one or more other purchasing organizations.
(= reference purchasing organization)
For more on this topic, refer to Assign Purchasing Organization to Reference Purchasing Organization.
● A purchasing organization can be divided into several purchasing groups that are responsible for different
operational areas.
● Each purchasing organization has its own info records and conditions for pricing.
● Each purchasing organization has its own supplier master data.
● Each purchasing organization evaluates its own suppliers using MM Supplier Evaluation.
● Authorizations for processing purchasing transactions can be assigned to each purchasing organization.
● All items of an external purchasing document, that is, request for quotation, purchase order, contract, or
scheduling agreement, belong to a purchasing organization.
● The purchasing organization is the highest level of aggregation (after the organizational unit "client") for
purchasing statistics.
● The purchasing organization serves as the selection criterion for lists of all purchasing documents.
Possible organizational forms
You can organize your purchasing function in the following ways:
All of these forms can co-exist within a single client.
Corporate-group-wide purchasing:
A purchasing organization is responsible for the purchasing activities of different company codes.
In this case, you do not assign a company code to the purchasing organization, but specify the company code
concerned for each individual purchasing transaction. You assign plants from different company codes to the
purchasing organization.
Company-specific purchasing:
A purchasing organization is responsible for the purchasing activities of just one company code.
In this case, you assign a company code to the purchasing organization. The purchasing organization may procure
only for this company code. You assign only plants of the company code concerned to the purchasing organization.
Plant-specific purchasing:
A purchasing organization is responsible for the purchasing activities of one plant.
In this case, you assign the plant and the company code of the plant to the purchasing organization. The purchasing
organization may procure for this plant only.
F) Sales Organization : (OVX5) – DEVS
SPRO → SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Define, copy, delete,
check sales organization
The sales organizations in your company. In order to bring the functional scope of a sales organization in line with
your organization, you should edit the following checklist:
● Legally, a sales organization is included in exactly one company code.
● You can assign one or more plants to one sales organization.
● The sales organization has an address.
● Within a sales organization, you can define your own master data. This allows a sales organization to have
its own customer and material master data as well as its own conditions and pricing.
● You can define your own sales document types within a sales organization.
● You assign sales offices and your own employees to a sales organization.
● All items in a sales & distribution document, that is, all items of an order, delivery or a billing document
belong to a sales organization.
● A sales organization is the highest summation level (after the organizational unit Client) for sales statistics
with their own statistics currency.
● The sales organization is used as a selection criterion for the lists of sales documents and for the delivery
and billing due list.
● For each sales organization, you can determine the printer for output differently based on sales and billing
documents.
A sales organization cannot share any master data with other sales organizations. The master data must be created
separately. The data for a distribution channel or a division can, however, be created for several distribution
channels or divisions.
Note
If you do not distinguish different sales organizations in your company, use sales organization "0001" as a "general
sales organization". Specify the value in the user master record as a parameter. The user then will not have to make
further entries.
G) Distribution channel : (OVX1) – 01
SPRO → SAP IMG → Enterprise Structure → Definition → Sales and Distribution → Define, copy, delete,
check distribution channel
Distribution channels in your company or edit distribution channels that already exist. In order to adapt the functional
scope of a distribution channel to the organization in your company, you should process the following checklist:
● You allocate a distribution channel to one or more sales organizations.
● You allocate one or more plants to a distribution channel.
● Within a distribution channel, you can define your own master data for customers or materials as well as your
own conditions and pricing.
● You can create master data for a representative distribution channel which is then also used in other
distribution channels. To do this, you have to additionally create the allocation of the representative
distribution channel to the other distribution channels.
● For a distribution channel, you can determine your own sales document types.
● You can determine sales offices for a distribution channel.
● All items of a sales document belong to a distribution channel. The entire sales document is therefore
entered for a distribution channel.
● The items of a delivery can belong to different distribution channels.
● All items of a billing document belong to a distribution channel.
● The distribution channel can be used as a selection criterion in lists.
● You can determine the printer destination for messages differently for every distribution channel on the basis
of the sales and billing documents.
A distribution channel does not fulfill the following criteria:
● A distribution channel does not have its own address.
● You cannot allocate your own employees to a distribution channel.
You specify the representative distribution channels in the menu option "Define common distribution channels ".
Recommendation
● Please use the sales division "01" as "general sales division" if you do not differentiate between different
sales divisions in your company.
● If you enter the value 01 as a parameter in the user master record, the user does not need to make further
specifications.
● Define the master data for a representative sales division if you do not need to differentiate master data by
sales division. The data can then be used in several sales divisions.
H) Division : (OMSP) – 01
SPRO → SAP IMG → Logistics - General → Material Master → Settings for Key Fields → Define Divisions
the divisions in your company. You use divisions to group together materials, products, or services. The system
uses the division to determine the sales areas and business areas to which a material, product, or service is
assigned.
In the application component Sales and Distribution (SD), the division is an organizational entity responsible for
selling particular products or for the profit made on them.
You should define divisions for products only after consulting your Sales and Distribution department.
To define a division, enter the following information:
● two-character, alphanumeric key
● Name
I) Shipping Point : (OVXD) – DEVP
SPRO → SAP IMG → Enterprise Structure → Definition → Logistics Execution → Define, copy, delete, check
shipping point
You can define or edit detailed settings for shipping points that already exist. To adapt the functional scope of a
shipping point to the organization in your company, you should ensure that:
● The shipping point is the top level in the organization for shipping.
● A shipping point can be allocated to several plants.
● A shipping point can be divided into several loading points.
● A delivery is always initiated from exactly one shipping point, meaning all items of a delivery belong to one
shipping point. Groups of deliveries also belong to exactly one shipping point.
● The shipping point can be proposed automatically during order processing depending on the plant, loading
group, and shipping condition.
● A shipping point has an address.
● The shipping point is used as a selection criterion for lists of deliveries and the delivery worklist.
● The shipping point is used as a selection criterion for processing deliveries like picking or goods issue
J) 3 Digit S4 Warehouse number – DEV
SPRO → SAP IMG → Enterprise Structure → Definition → Logistics Execution → Define, copy, delete, check
warehouse number
A warehouse complex is represented in the Warehouse Management system as a warehouse number that is used
to identify a complex warehouse setup. The physical location is usually decisive for assigning the definition of the
warehouse number. A warehouse number groups together storage types and storage bins that are organized and
maintained as a complete unit.
All warehouse procedures, such as stock placements and stock removals of materials, are always executed within a
warehouse number.
A warehouse number has the following characteristics:
● A warehouse number does not have an address, but a short descriptive text.
● It is possible to store material data that is specific to a warehouse number.
● Within each warehouse number, the stock figures are managed as quantities, not as values.
● Within a plant it is possible to assign several storage locations to the same warehouse number
K) Assign company code to company : (OX16)
SPRO → SAP IMG → Enterprise Structure → Assignment →Financial Accounting → Assign company code
to company
L) Assign plant to company code : (OX18)
SPRO → SAP IMG → Enterprise Structure → Assignment →Logistics - General → Assign plant to company
code
M) Assign purchasing organization to company code : (OX01)
SPRO → SAP IMG → Enterprise Structure → Assignment →Materials Management → Assign purchasing
organization to company code
N) Assign purchasing organization to plant : (OX17)
SPRO → SAP IMG → Enterprise Structure → Assignment →Materials Management → Assign purchasing
organization to plant
O) Assign sales organization to company code : (OVX3)
SPRO → SAP IMG → Enterprise Structure → Assignment →Sales and Distribution → Assign sales
organization to company code
P) Assign distribution channel to sales organization : (OVXK)
SPRO → SAP IMG → Enterprise Structure → Assignment →Sales and Distribution → Assign distribution
channel to sales organization
Q) Assign division to sales organization : (OVXA)
SPRO → SAP IMG → Enterprise Structure → Assignment →Sales and Distribution → Assign division to
sales organization
R) Set up sales area : (OVXG)
SPRO → SAP IMG → Enterprise Structure → Assignment →Sales and Distribution → Set up sales area
S) Assign Sales Organization - Distribution Channel - Plant : (OVX6)
SPRO → SAP IMG → Enterprise Structure → Assignment →Sales and Distribution → Assign Sales
Organization - Distribution Channel - Plant
T) Assign shipping point to plant : (OVXC)
SPRO → SAP IMG → Enterprise Structure → Assignment →Logistics Execution → Assign shipping point to
plant
U) Assign Warehouse Number to Plant and Storage Location
SPRO → SAP IMG → Enterprise Structure → Assignment →Logistics Execution → Assign Warehouse
Number to Plant and Storage Location
EWM
4 Digit EWM Warehouse – DEVA
SPRO → SAP IMG → SCM Extended Warehouse Management → Extended Warehouse Management
→Master Data → Define Warehouse Numbers
In SAP Extended Warehouse Management, a warehouse complex is mapped as a warehouse number, which you
can use to identify the warehouse complex. An essential factor for defining a warehouse number is the physical
location. A warehouse number summarizes storage types and storage bins that are organized and managed
together.
All operations in warehouse management, such as putaways or stock removals of products, are always executed
within a warehouse number.
A warehouse number has the following attributes:
•A warehouse number has a short description but no address.
•You can store warehouse-specific product data.
•Within a warehouse number, stocks are managed on a quantity basis and not on a value basis.
Copy Standard warehouse Properties
SPRO → SAP IMG → SCM Extended Warehouse Management → Extended Warehouse Management
→Cross-Process Settings → Copy Warehouse Number Customizing
In this IMG activity, you can copy all warehouse-number-dependent entries in Customizing tables into a new
warehouse number. Extended Warehouse Management (EWM) determines the Customizing tables using the foreign
key dependencies for the warehouse number. However, EWM does not copy the number range intervals.
Afterwards, you must assign the new warehouse number to a supply chain unit. On the launchpad, choose
Extended Warehouse Management -> Settings -> Assignments: Warehouse Numbers/Business Partners.
Note
You can also transport entries of a warehouse number. Here, all entries that are found for the chosen warehouse
number are transported. This may cause settings that have already been changed in the target system to be
overwritten. If you have already made changes in the target system, we recommend that you avoid triggering a
transport.
Define Storage Type
SPRO → SAP IMG → SCM Extended Warehouse Management → Extended Warehouse Management
→Master Data → Define Storage Types
Define the various storage types within a warehouse number. A warehouse number is divided up into various
storage types. A storage type is defined by its spatial or organizational attributes (for example, high rack storage
area, bulk storage, goods receipt zones).
A storage type has a short description but no address, and you cannot store any storage-type-specific product data.
Activities
For each warehouse number, create the required storage types and define the necessary criteria for the storage
type.
Define Storage Section
SPRO → SAP IMG → SCM Extended Warehouse Management → Extended Warehouse Management
→Master Data →Define Storage Section
In this Customizing activity, you assign storage sections to a warehouse number and a storagetype.
A storage section is an organizational unit within the storage type, which summarizes storage bins with common
attributes for the purpose of putaway.
The use of storage sections in a storage type is only mandatory if you use storage section control or storage section
search in the storage type.
Activities
Create your storage sections with the appropriate descriptions.
Example
For putaway, the following storage bin attributes might be important:
● Distance to load transfer point
● Load-bearing capacity
● Temperature
Storage Bin Type (SBT)-->Size of a Bin (1*1*1 & 1*1*2 & 1*1*3 L*W*H)
How to get UOM in SBT is (SPRO → SAP IMG → SCM Extended Warehouse Management → Extended
Warehouse Management →Master Data → Define Warehouse Number Control)
SPRO → SAP IMG → SCM Extended Warehouse Management → Extended Warehouse Management
→Master Data →Storage Bins → Define Storage Bin type
Use
In this Customizing activity, you define your storage bin types.
You can divide your storage bins into groups according to their physical attributes (for example, large bins, small
bins).
During slotting, you can have the system determine a preferred storage bin type.
In combination with the handling unit type, a suitable storage bin is suggested to you during putaway.
Activities
1. Decide whether you want to use storage bin type determination or slotting.
2. Create your storage bin types with the relevant descriptions.