SAP introduced and launched its WM inventory management solution in the late 1970s. Since the early days of WM, SAP has continuously updated and improved the software. SAP WM has been accepted and used by many companies with its strong capabilities and applications that offer a warehouse management solution. SAP added SAP EWM as part of the supply chain management module in 2005. Although EWM and WM basically have the same functions, EWM has additional capabilities and is a more powerful SAP ERP solution.
With SAP announcing that its support for the WM module will end in 2025, businesses started to wonder about the difference between WM and EWM and started to think about the transition process from WM to EWM. In this process, we discussed the difference between the two solutions.
Table of Contents
SAP WM Module is basically a warehouse management system designed by SAP for the planning and execution of physical stock management and stock movements in warehouses with shelf management. It works integrated with SAP modules such as Quality Management, Production Planning, Sales, and Distribution.
SAP WM module is an Enterprise Resource Planning (ERP) module that deals with material flows through the ERP system. It manages the inventory and related costs and provides real-time information on stock levels, movements, and usage.
SAP WM module helps to manage inventory costs by tracking cost of goods sold across several locations of a company. It helps to consolidate costs and charges using location-specific costs or cost allocation rules.
SAP EWM is the version created by enriching the SAP Warehouse Management (SAP WM) solution, one of the most used warehouse management applications in the world, with additional functions.
The SAP EWM solution has been designed to structure and manage the storage of goods in warehouses, distribution centers and logistical centers. Its main purpose is to improve efficiency and performance by automating processes like receiving and storing goods, replenishing stock levels, managing inventory and optimizing space allocation.
SAP EWM offers a broader range of features and functionalities for managing product life cycles and providing a single view of all supply chain processes.
Main Features of SAP Extended Warehouse Management
SAP EWM also offers a variety of features related to logistics management, such as:
If you are looking for a solution to manage your warehouse operations and make them more efficient, then SAP EWM could be an option worth considering. However, before making any decision regarding this matter, it is important to consider some key aspects related to these two solutions.
While both products offer basic functions for managing warehouses and their operations, there are also some differences when it comes to their capabilities. In fact, while SAP EWM offers advanced functionality such as forecasting and replenishment planning, which allows users to develop strategies based on inventory levels and other factors such as lead time or demand rate; SAP WM only provides basic functionality like picking orders or goods receipt control.
5 Reasons to Migrate from SAP WM to SAP EWM
PROCESSES
EWM
WM
Rearrangement
✓
×
Freight Order Management
Kit to Stock
Route Determination
Labor Management
EH&S Integration
Material Flow System
Warehouse cockpit
Goods Receipt - Optimization
Integration to SAP BW
Integration to SAP TM
Deconsolidation
SAP EWM is similar to SAP WM in terms of features, but it offers more customization options, such as warehouse structure and picking/putaway processes. SAP EWM also incorporates new ideas such as activity zones, Work Centers, and Resources.
EWM, according to SAP, is a more robust and versatile alternative to WM. EWM has the same basic core functionalities as WM, but adds features like labor management and internal routing. The WM module will no longer be produced, and its support period will end in 2025, according to the SAP roadmap. It's time to start planning your SAP EWM migration!
MDP Group allows you to optimize your warehouse management processes from end to end with the SAP EWM consultancy it offers. You can contact us to get information about our SAP EWM consultancy.
SAP EWM continues to be developed by SAP with advanced technologies such as artificial intelligence, machine learning, IoT. The future of EWM looks bright as it increases warehouse automation and efficiency.
SAP EWM is suitable for all businesses with complex warehousing processes, especially in the logistics, manufacturing, and retail sectors.
SAP EWM Consultant
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