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SAP Extended Warehouse Management

advisory | digital | managed services

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 Content
• SAP EWM Introduction

• Delivery Processing

• EWM Processes

• Important Configurations

• Transportation Management

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information. 2
Warehouse Structure
Plant Storage Location

Warehouse
Configuration

Storage Type Storage Type

Storage Section/ Storage Section/ Storage Section/ Storage Section/

Picking Area Picking Area Picking Area Picking Area
Master Data

Storage Bin Storage Bin Storage Bin Storage Bin

Storage Types
This is a physical or logical subdivision of a warehouse complex that is characterized by
its warehouse technique, the space used, its organizational form, or its function

Storage Types
Examples:
• High-rack storage area
• Bulk storage area
• General storage area
• Pallet storage area
• Goods receipt area
• Goods issue area
Storage Types Level Data
Storage Section
A Storage Section is an organizational subdivision of a Storage Type that groups together
Storage Bins with similar features for the purpose of managing stock.

Storage Section
Examples:
• Heavy Parts
• Bulky Parts
• Fast Moving
• Slow Moving
Storage Bin Data
Material Data
Palletization Data
SAP Extended Warehouse Management

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ary information.
Introduction

Extended Warehouse Management (EWM) offers you flexible, automated support for processing
various goods movements and for managing stocks in your warehouse complex. The system
supports planned and efficient processing of all logistics processes in your warehouse.

Integration

EWM is completely integrated into Inventory Management and Delivery Processing. Business
processes, which you trigger in other application components, lead to physical goods movements
in your warehouse. You organize, control, and monitor these goods movements using EWM.

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ary information.
 SAP EWM Time-line

In Q4/2016, SAP EWM became an embedded application component within SAP S/4HANA (on-premise edition 1610),
known as S/4HANA

Latest S/4 Version – SAP S/4HANA 2022 FPS01 was released in Q4/2022

Mainstream support for EWM 9.5 will end by Dec-2027

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Key features of SAP EWM

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ary information.
SAP EWM Functional Capabilities

TBD

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Warehouse Structure

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ary information.
Warehouse Management Monitor

The warehouse management monitor is a

central tool for keeping warehouse managers
constantly up-to-date as to the current
situation in the warehouse, and to enable
them to initiate appropriate responses in light
of this situation.

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ary information.
Delivery Processing

Extended Warehouse Management (EWM) has its

own Delivery Processing area. This is a significant
part of the logistics chain. Delivery processing offers
functions for executing goods receipt and goods issue
activities, as well as for executing posting changes
and internal stock transfers.

Corresponding to the goods receipt and goods issue,

a distinction is made in delivery processing between
the inbound delivery process and the outbound
delivery process.

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ary information.
Goods Receipt (Inbound Process)

It takes into account your warehouse arrangement

(for example, putaway using identification points in a
high rack storage area) as well as the process-
oriented rules and process flows defined by you (for
example, counting requests, repacking).

SAP Extended Warehouse Management (SAP EWM)

contains putaway strategies to simplify the search for
appropriate storage bins.

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ary information.
Goods Issue (Outbound Process)

A goods issue from SAP Extended Warehouse

Management (SAP EWM) is a physical
departure of products from your warehouse.
With a goods issue posting, you reduce the
stock in the warehouse. You can use a goods
issue to indicate goods deliveries to your
customers.

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ary information.
Putaway and Stock Removal Strategies

In Extended Warehouse Management (EWM), the system uses putaway strategies and stock removal strategies to
determine storage bins and stock. Each time that a warehouse task (WT) is created, the system reverts to putaway
and stock removal strategies.

•Goods receipts
• The system uses putaway strategies and parameters defined in the product master to utilize the available
warehouse capacity by automatically determining suitable storage bins for the new products.

•Goods Issues
• The system uses stock removal strategies to determine the optimal picking bin. If you decide to manually
process certain goods movements, you can change source and destination storage bins that are automatically
proposed by the system.

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ary information.
Putaway and Stock Removal Strategies

Putaway Strategies Stock Removal Strategies

 First In, First Out (FIFO)

 Stringent FIFO
 Last In, First Out (LIFO)
 Partial Quantities first
 Large/ Small Qty
 Fixed Bin
 Shelf-life expiration date
 Customer specific Strategy

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ary information.
Warehouse Task and Warehouse Order Creation

Warehouse Task:
Document that uses Extended Warehouse Management ( EWM ) to execute goods movements. Logical or physical
goods movements or even stock changes can be the basis for a warehouse task.

 Product Warehouse Task

 HU Warehouse Task

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Warehouse Task and Warehouse Order Creation

Warehouse Order:
This function groups together warehouse tasks into warehouse orders, according to your settings in Customizing for
warehouse orders, and thus creates optimum work packages for you. For warehouse order creation, you define rules
with their relevant criteria. Warehouse order creation is particularly suitable for optimizing processes for picking.

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ary information.
Handling Unit

A handling unit is a physical unit consisting of packaging materials (load carriers/packing

material) and the goods contained on/in it. A handling unit is always a combination of products
and packaging materials. All the information contained in the product items, for example, about
batches, is retained in the handling units and is always available.

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ary information.
Physical Inventory

You can use the physical inventory functions in Extended Warehouse Management (EWM) to carry out
a physical inventory of products and handling units (HUs) for stock control and balance sheet purposes.

•Storage-bin-specific physical inventory

•The document refers to a storage bin and therefore to all the products and HUs in this storage bin.

•Product-specific physical inventory

•The document refers to a specific product in one or more storage bins and/or HUs.

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ary information.
Wave Management

Grouping of warehouse request items to control warehouse activities, for example, picking, or posting
changes.

These groupings are then processed together in subsequent processes, for example, the transfer of all
warehouse request items assigned to a wave at a certain point in time to warehouse task creation. The
warehouse tasks created are then forwarded to warehouse order creation.

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ary information.
Transportation Management (TM)

SAP Transportation Management (SAP TM) supports you in all activities connected with the physical transportation of
goods from one location to another. You can use SAP TM to perform the following activities:

•Create forwarding orders for your ordering parties

•Transfer orders and deliveries from an ERP system
•Create freight bookings
•Plan the transportation and select carriers
•Tender transportation services
•Dispatch and monitor the transportation
•Calculate the transportation charges for both the ordering party and the supplier side
•Consider foreign trade and dangerous goods regulations

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ary information.
Delivery Based Transportation Planning - Outbound

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ary information.
Delivery Based Transportation Planning - Inbound

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ary information.
Topics
Inbound Processing Loading
Organization Structure Config Inbound Delivery Door and Staging Area Determination
Basic System Setup Doc Category GI Posting
Master Data Integration Item Type and Category GI Posting
Warehouse Structure Mapping Inbound Del
Storage Type Stock Type Determination in IBD Internal WH Processes
Storage Section Inbound Delivery Replenishment
Storage Bins Goods Receipt Basis Settings
Staging Area and Warehouse Door Putaway Planned Replenishment
Activity Area Order Based Replenishment
WorkCenter Outbound Processing
Master Data Config Outbound Delivery Ad Hoc Warehouse Movement
Supply Chain Unit Doc Category and Item Type Posting Change
Business Partners Mapping Outbound Del Basic Settings
Prod master Assigning Item types to Doc Types Posting Change Process
Packaging Material Outbound Delivery
Packaging Specifications Outbound Delivery Order Physical Inventory
Handling Unit ODO Creation Periodic Physical Inventory
Warehouse Tasks Changing Order Qty Basic Settings
Warehouse Order Stock Removal Configuring Physical Inventory
Storage Control – Optional Warehouse Tasks
Exception Control Storage Type Determination
Batch Management Stock Removal Strategies
PPF Picking and Packing
QM Stock Removal execution
use of Picking HU in Picking

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ary information.