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SAP Stock Room Management and SAP EWM in comparison

15.03.2024

The world of warehouse management has changed dramatically with the advent of SAP S/4HANA.

This change particularly affectsSAP Warehouse Management (WM), which will becomeSAP S/4HANA Stock Room Management, andSAP Extended Warehouse Management (EWM), a more comprehensive alternative. With the postponement of the migration deadline from "old" R/3 systems to S/4HANA until 2027, many companies find themselves in a phase of uncertainty, characterized by the decision as to whether they should stay with the proven WM solution or switch to EWM.

SAP WM becomes SAP S/4HANA Stock Room Management

Most SAP warehouse management systems are currently based on the LE-WM module. In response to customer feedback, SAP has introduced S/4HANA Stock Room Management, which enables the continuation of existing SAP WM solutions, even beyond 2027. This option for continuation presents both existing and new customers with the decision of which of the two basic warehouse management solutions is the most suitable option for their company.

The switch to SAP EWM

The switch to S/4HANA is considered inevitable and SAP EWM opens up a wide range of functionalities that are particularly useful for optimizing and automating business processes. Advanced automation options such as material flow system (MFS) and decentralized quality inspection are possible, as well as the integration of Fiori apps and RF functionalities. Despite these advantages, the changeover can be too costly for small or medium-sized companies with limited warehouse capacity due to the complexity and the need to use new data structures, tables and transactions.

Continuation with SAP S/4HANA Stock Room Management

In cases where the effort required to adapt individual developments in the WM context is not in proportion to the benefits of switching to EWM, it makes sense to continue with SAP S/4HANA Stock Room Management. However, it should be noted that not all previous WM functions are available in the new Stock Room Management, including

• Task & Resource Management (WM-TRM)
• Warehouse Control Unit interface (WM-LSR)
• Value Added Service (WM-VAS)
• Yard Management (WM-YM)
• Cross-Docking (WM-CD)
• Wave Management (WM-TFM-CP)
• Decentralized WM (WM-DWM)

SAP Stock Room Management as an alternative to SAP EWM

If the extended functions of SAP EWM are not essential for a company or if they can be dispensed with, postponing the switch to SAP EWM is a reasonable and feasible option. This is particularly true for companies whose current processes do not require the additional features of EWM or whose business size and complexity do not justify the implementation of these extended system functions.

In such cases, the implementation of SAP Stock Room Management is an attractive alternative. This strategy allows companies to benefit from a smooth and simplified migration of their existing SAP WM systems. This solution is particularly beneficial for those customers who would not immediately benefit from the broader functionality of EWM, as they may only require a basic level of warehouse management functionality. Implementing SAP Stock Room Management can not only continue existing warehouse management processes without major disruption, but can also significantly reduce the training time and costs normally associated with implementing a new solution such as SAP EWM.

Procedure

The first step should be a comprehensive as-is analysis of the existing systems and requirements in order to make a suitable decision. This analysis serves as the basis for deciding whether the migration should take place before or after 2027. For new customers or existing customers without an existing warehouse management system, the introduction of SAP Stock Room Management can be a good option.

Our conclusion

Deciding on the right SAP warehouse management system - be it SAP Stock Room Management or SAP Extended Warehouse Management (EWM) - requires careful consideration of your company's unique requirements and resources. A deeper analysis that considers both current processes and long-term business goals is critical to identifying the best solution for managing your warehouse.

If you are faced with a choice, we can assist you with our expertise and experience. We can help you understand the features and benefits of both SAP solutions and support you in choosing the best option for future-proof warehouse management. Let's work together to ensure that your warehouse operations are and remain state of the art with SAP.