Modern businesses with on-hand inventory must prioritize prompt and efficient fulfillment to ensure customer satisfaction. From an operational point of view, a warehouse management system (WMS) is critical for inventory control and visibility, optimum utilization of assets and space, enhanced supply chain productivity, and better customer service.


WMS is indispensable for improved speed, accuracy, and throughput, and a productive and modernized warehouse must adapt fast to shifting market situations.


SAP Extended Warehouse Management (EWM) is the latest warehouse management solution, designed specifically to align with the complex needs of any business. SAP EWM primarily focuses on providing physical services to control warehouse operations, logistics, and relevant workforce management with utmost efficiency.


Why is SAP EWM a necessity?

SAP extended warehouse management is an advanced warehouse management solution designed to meet the evolving and complex needs of the supply chain process. Support for the existing model of SAP warehouse management (SAP WM) will end by 2025. Therefore companies are upgrading from SAP Warehouse Management (WM) to SAP Extended Warehouse Management (EWM) as a part of their intelligent migration module.

SAP EWM offers more functionality in advanced, efficient, and convenient functionality. It covers warehouse operations, including storage, aggregation, layout, RF framework, and configurable alternatives. Additionally, SAP EWM allows for the creation of new aspects, such as activity areas, resources, labor management, and work centers. Traditional warehouse management lacks these attributes.


SAP EWM features

SAP EWM offers meticulous support for all warehouse procedures, simple or complicated. With the flexibility and automation of SAP extended warehouse management, a business can manage inventory storage and movement swiftly and effectively.

The key features of SAP extended warehouse management are discussed in detail below:


SAP EWM process flow

The SAP EWM process flow primarily includes a series of activities like picking, packing, receiving materials from external vendors into the warehouse, receiving finished goods, and more. The entire warehouse process flow is divided into different categories, defining the movement of goods at specific points in the warehouse.

Some of the essential process categories include:


Inbound processing

As a part of the selling and receiving process in SAP EWMt, inbound flow primarily deals with shipping and receiving goods before storage. The inbound process starts with the purchase requisition detected in the ERP system to create a purchase order.

The components of a purchase order include the store location/location of the manufacturer and the order quantity. Following are the steps to follow while handling the purchase order:

Step 1 – Send the purchase order to the concerned supplier/manufacturer for delivery and post a delivery receipt once the goods are delivered.

Step 2 – Establish the goods’ arrival date based on the supplier’s purchase order request.

When a warehouse creates a purchase order, SAP EWM creates a ‘CTRL’ pipeline to enable supplier notification. Once the CTRL key is set, the ERP system automatically generates an inbound delivery based on the purchase order. An inbound delivery features relevant information about the tentative date of goods delivery, the number of goods, and the location of the supplier/manufacturer.

The inbound flow includes the following processes in the SAP extended warehouse management system:

Any changes in the inbound flow are quickly reverted in the warehouse ERP system. The SAP extended warehouse management ERP system constantly traces the process flow and updates relevant information until the supply chain process has been fulfilled.


Storage and operations

Also termed ‘Storage Operations,’ this process flow stage determines and monitors the movement of goods along the supply chain inside a warehouse. Retention and operation include specific process categories like maintaining serial numbers, physical inventory stock process, providing VAS (value-added services), and others until the outbound delivery request is issued in the ERP system.




Outbound processing

Alternatively known as the Picking process, the SAP EWM outbound flow starts with defining store bin types in an SAP warehouse. An outbound delivery request (ODR) allows the ERP system to start the direct goods issue process for relevant items in extended warehouse management.

The specific types of outbound delivery are:




Essential documents required in outbound flow:


SAP EWM Benefits

SAP extended warehouse management offers complete visibility and control across the warehouse. Notable benefits of SAP EWM include:








For more than 40 years, SAP has offered several new platforms and applications for various enterprises, including installation and operations. Companies can better control their inventories with SAP EWM to ensure efficient resource utilization. SAP EWM enables businesses to combine accounting and financial elements, assisting planners in making the best choices and lowering overall expenses.

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