Addressing Warehouse and Distribution Challenges with SAP EWM


With rising challenges such as capacity limitations, demand fluctuations, and compliance regulations, along with an increase in the number of distribution channels propelled by consumer requirements, enterprises look to boost process performance and productivity. And industry leaders put more emphasis on improving warehouse management to keep up with changing market dynamics and address inventory management and supply-demand issues.

Extended Warehouse Management (EWM) by SAP is an advanced Warehouse Management System (WMS) developed to examine and monitor the mobility of goods and inventory management in your warehouse. SAP EWM optimizes, streamlines, and simplifies warehouse operations. This blog will discuss the challenges that SAP EWM can solve for any warehouse process for efficient and flexible resource management and advanced inventory accuracy to keep things running smoothly.

Customer Expectations

Today, businesses compete with suppliers on the high street and online too. As a result, everyone tries to cut costs where possible. SAP EWM has a comprehensive Advance Shipping Notice (ASN) that provides detailed delivery information. Compared to typical IDoc from the ERP system, the EWM ASN manages cross-delivery handling units that offer the best pallet fill possible when picking, allowing savings on transportation costs.

Inventory Control

Overstocking raw material or manufactured items can be a burden, particularly when products have a shorter shelf-life. It is possible to get a real-time, detailed image of the stock in the warehouse by using SAP EWM’s discrete storage bin management integrating RF scanner. This feature allows for a swift reaction to production or customer demand, thereby enabling enterprises to lower the chance of obsolete stock.

Maximum Space Utilization

A poorly laid warehouse plan can increase storage costs. Simple tasks like grouping quickly moving products for picking or relegating slower-moving products to less-accessible warehouse locations improve operational efficiency and save cost. SAP EWM’s placement technique directs stock to the most efficient warehouse location during put-away. It helps decide the best-fit bin, going by the pallet size, resulting in better space utilization and improvement in output. On the other hand, digital warehouses also help facilitate bin shelves’ shipping for SKU processing.

Storage Optimization

By employing, SAP EWM’s ‘Process-Oriented Storage Control’ (POSC), suppliers can choose distinct processes for different clients and ensure all essential steps are carried out. Consequently, pick and pack operations are of higher quality. Furthermore, using mobile devices to execute tasks, operators are not required to return to the office between pick-ups and put-aways. They can be directed immediately to the next job after completing the current task. Leveraging SAP EWM, organizations can save rework activities and ensure that they get the most out of material handling equipment.

Integrating Multiple Non-SAP ERP Systems

While integration with different ERP systems was problematic in the previous releases of SAP WM/TRM, SAP EWM enables the interconnection of various ERP systems to warehouse system without the necessity to isolate stocks. Thus, there is no loss of capacity in the warehouse. This feature is also employable in warehouses that oversee third-party merchandise, allowing them to make the most out of their space without having to worry about picking the wrong customer’s product.

SAP EWM functionalities are essential for SAP Digital Supply Chain Management (SCM). Besides, every company has unique business requirements, so purchasing a one-size-fits-all solution is impractical and risks the ROI on the SAP landscape. When deciding to switch from WM to EWM or choosing a new WMS, it is critical to analyze process requirements thoroughly. This helps in ascertaining alternative strategic requirement/s. A thorough re-take on costs and benefits of a WMS tool helps manage expectations and organizational benefits from critical stakeholders.

MOURI Tech has assisted several organizations in evaluating and supporting their WMS platform selection process and providing input on the relevant business case, by analyzing critical stages such as preparation, discovery, evaluation, and playback.

Contact us to know more about those client stories and how your organization can benefit by partnering with us.

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