News
SAP EWM/MFS in the Cloud
23.06.2026
Lanxess Revamps Plant Logistics While Maintaining Current 3-Shift Operations.
Supply security, efficiency, and sustainability were the driving factors behind chemical company Lanxess’s decision to replace its proprietary warehouse management and material flow system—which had been in use for over 20 years—at its Krefeld-Uerdingen site with a high-performance, cloud-based SAP EWM / MFS (SAP Extended Warehouse Management / Material Flow System) solution. The focus was on seamlessly integrating the automated channel warehouses, the forklift guidance system for multiple floor-block warehouses used for storage and shipping, the connection to an automated buffer warehouse, and optimized material flows via standard SAP software.
The result: a modern, consistently high-performing, future-proof logistics solution that impressively demonstrates how successful digitalization is possible during ongoing multi-shift operations (24/7/365). The elimination of historically evolved structures sets new standards for production logistics.
LANXESS Deutschland GmbH is a global specialty chemicals group headquartered in Cologne. Approximately 12,000 employees in 32 countries produce chemical intermediates, additives, specialty chemicals, and plastics. At its Krefeld-Uerdingen site, the Inorganic Pigments (IPG) business unit manufactures synthetic iron oxide and chromium oxide pigments. The plant has a production capacity of over 240,000 metric tons. The pigments are used, for example, to color paving stones, exterior paints, and printer toners. IPG pigments also ensure long-lasting color in the automotive and plastics industries.
Automation Meets Diversity
At the heart of the plant’s logistics operations—which handle approximately 1,000 items daily in incoming and outgoing goods—is a highly automated channel warehouse (ABL) with approximately 14,000 pallet storage locations. The warehouse spans two interconnected buildings and is fully integrated via a high-performance conveyor system. Across 15 levels, automated trolleys (pallet shuttles), together with six lifting and lowering units, handle storage and retrieval in up to 16-deep channel storage.
The highly automated production logistics facility is supplemented by several manually operated floor-block warehouses with over 10,000 pallet storage spaces, including storage for packaging materials and raw materials.
With the introduction of SAP EWM/MFS, LANXESS has strategically positioned its plant logistics for the future.
Initial Situation: Legacy Systems at Their Limit
Since the late 1990s, two separate warehouse management systems (WMS) with material flow computers had been in use, and they were increasingly reaching their functional and technological limits. Support for the proprietary WMS previously in use was discontinued, and further enhancements were no longer possible—the operational risk increased noticeably. At the same time, there was a lack of the necessary flexibility, particularly with regard to modern and efficient material flow control.
There was a lack of comprehensive and transparent graphical storage location management that provided a holistic and traceable view of both the floor-block storage areas, the shipping area, and the automated storage areas.
Project Objectives & Selection of the Implementation Partner
Following a comprehensive request for proposals by Fraunhofer IML, SAP EWM / MFS was selected. To focus on optimizing its business processes, Lanxess decided to outsource hosting and is therefore using the SAP Private Cloud. Lanxess selected IGZ, based in Falkenberg, as its implementation partner. The deciding factors were IGZ’s in-depth SAP expertise and its impressive track record of reference projects in which similar challenges had already been successfully overcome.
The core objective of the project was the complete integration of the new warehouse management system into the existing SAP landscape—without interrupting operations. As a result, prior to the new system’s rollout, only very limited testing windows were available on weekends for final system tests; these had to be utilized as efficiently as possible to ensure that production remained operational during the transition, that material flow control was optimized (especially in the automated warehouses), end-to-end mobile data capture for all logistics processes, and a seamless system migration without interrupting production.
Automated channel warehouse (ABL) with approximately 14,000 pallet storage locations: Across 15 levels, up to fifteen trolleys and state-of-the-art conveyor technology ensure efficient storage and retrieval—even with 16-tier deep storage spanning two connected buildings.
Technical depth, strategic vision
The complexity of the warehouse and the conveyor system—particularly the control of the automatic trolleys, lifters, and lowerers—required close, interdisciplinary collaboration across the design, implementation, and testing phases. A key factor in this success was the IGZ system emulation: With the help of this digital 3D twin, all warehouse and control functions could be tested comprehensively and realistically in advance—without any disruption to ongoing operations. This tool made it possible to make optimal use of the limited testing windows available on weekends, and the impact on ongoing operations was minimal.
Another focus was on integrating quality-related processes into the production environment. Production batch releases were directly integrated into SAP EWM.
Production waste disposal placed particularly high demands on system performance: Finished goods must be efficiently transferred to the warehouse areas during multi-shift operations—without delays and with maximum process reliability.
Another technologically challenging aspect was the integration of the decentralized SAP EWM/MFS—used for larger sites and automated warehouses—with a central SAP EWM embedded in SAP S/4HANA, which is used for small, purely manual sites. This hybrid combination ensures maximum flexibility and reduces dependencies and implementation efforts for manual sites. The existing Manufacturing Execution System was also successfully integrated: Employees receive targeted support during order picking using mobile devices based on SAP UI5 (FIORI).
The central plant control center also benefits from the integrated IGZ Graphical Warehouse Layout, which is being piloted for the first time. This best-practice solution is based entirely on SAP EWM and enables the customer to efficiently monitor the facility during ongoing operations while simultaneously ensuring maximum transparency regarding all equipment statuses in the automation systems, visualizing the extensive staging area, providing relevant KPIs, and enabling quick, targeted responses during operations.
The mobile devices on the forklifts are equipped with ergonomic SAP EWM user interfaces and provide employees with maximum transparency.
A Smooth Go-Live Despite Ongoing Production
The go-live was implemented as a »big bang.« Johannes Goertz, project manager at Lanxess, sums it up with satisfaction: »The transition went smoothly and confirms that we made the right decision for our plant logistics by choosing SAP EWM/MFS and IGZ. After a three-month ramp-up phase, we were able to significantly improve the put-away accuracy index, among other metrics, with the help of newly defined KPIs. Overall performance has increased and remains consistently high.«
With the implementation of SAP EWM/MFS, LANXESS has now strategically positioned its plant logistics for the future. Today, processes are fully digitized, transparent, and efficiently controllable. The new system is scalable and adaptable to future requirements—from increases in production to new interfaces.
The integration of SAP S/4HANA with SAP EWM, MES, and QA ensures a consistent information base. Optimized material flow strategies increase throughput and availability while reducing potential sources of error.
End-to-end inventory transparency improves control quality and delivery reliability. In addition, mobile devices and graphical visualization ensure intuitive operation—in both automated and manual warehouse areas. The subsequent optimization phase during ongoing operations was also implemented without disruption, thanks in part to the support of the 24/7/365 IGZ Service Team.
Conclusion: A Systematic Approach to the Future
For LANXESS, the transition to SAP EWM/MFS marks a strategic milestone on the path to future-proof plant logistics. The project exemplifies how even highly complex systems can be successfully migrated during ongoing operations—with intelligent planning, modern technology, and an experienced partner like IGZ.
As a result, the Krefeld-Uerdingen plant not only remains the logistical backbone of pigment production but is also positioning itself as a pioneer in digitalization and automation within the specialty chemicals industry.