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The Embedded EWM was launched in SAP S/4 HANA 1610 version onwards. it is allowed users to utilise the processing power of SAP HANA, thus reducing the total cost of ownership and losses. This method calling as decentralised EWM. The special EWM functionality is available to anyone having the SAP S4 HANA HANA license.
The Embedded EWM is great for small and medium sized companies. If anyone requires additional features, they can purchase a different license from SAP . all users will enjoy the benefits of a reduction in ownership costs and ease of deployment. This is because while using Embedded EWM users have to manage a single system instead of multiple systems for managing their operations.
To all those who are familiar with the traditional SAP Warehouse Management Solution, you must be wondering why SAP came up with the new Extended Warehouse Management (EWM) solution as a completely new product instead of adding more functionality into existing WM solution.
Inventory must be stored efficiently to satisfy customer orders and supply production with raw materials.Warehouse Management means the management of stock and the management of the locations where that stock is stored. When running a business, it is essential to fulfill customer orders without delay. Although it may be difficult to forecast customer-order requirements, you try to have stock for order fulfillment.
Manufacturing plants often use a Just-In-Time model, which means that they hold very little stock in their warehouse. The advantage of this is reduced warehousing costs. The disadvantage is that there may not be enough stock to meet production requirements to fulfill customers’ orders. It is very important for a successful business to hold sufficient stock and to avoid that situation.
Main Functions of Warehouse Management:
As part of evolving supply chains, Warehouses and Distribution centers started playing a significant role in supply chain networks. Warehousing systems needed more than just optimal storage and picking of materials. Warehousing systems needed to be more integrated with overall supply chains. They needed to provide additional value added services such as packaging, kitting, dynamic routing, slotting, opportunistic cross docking, Labor management, etc. to name a few. Warehousing systems needed to promptly respond to supply chain exceptions.
EWM was developed from the ground up as a new Warehouse Management System option for SAP customers delivering enhanced functionality over ERP WM for more complex distribution processes needed as part of integrated supply chain networks.
Following graphic from SAP gives a good overview of EWM capabilities by each version. It clearly shows how fast SAP is innovating EWM to become a market leader.
SAP Extended Warehouse Management (EWM) is used to efficiently manage inventory in the Warehouse and for supporting processing of goods movement. It allows the company to control their Warehouse inbound and outbound processes and movement of goods in the Warehouse.
The main process in a Warehouse is incoming and outgoing materials, goods receipt and goods issue, fulfil customer orders, and distribution of goods. When a company doesn’t store any goods, then there is no need of Warehouse management to manage goods.
Inbound process involves storage of goods in warehouse and their location and Outbound process involves picking up the goods. Whenever a material is stored in a warehouse, it is stored in the storage bin and you can find its current location.
With the help of SAP EWM all the goods movement are controlled by a warehouse management system and provides you the tools to monitor warehouse activities. You can also manage additional functions in the Warehouse like creating a serial number, batch number, vendor management inventory, resource optimization and value added services. SAP Extended Warehouse Management allows you to not only monitor the quantity of goods in Warehouse but to manage other critical functions and delivery of goods efficiently.
SAP Warehouse Management is opposite to Inventory management. Inventory management tells the count of goods in the storage location and its physical location is unknown. Warehouse management deals with goods movement and monitoring the physical location of the goods recorded with specific documents.
SAP EWM is used to efficiently manage inventory in the Warehouse and for supporting processing of goods movement. It allows the company to control their Warehouse inbound and outbound processes and movement of goods in the Warehouse.
The main process in a Warehouse is incoming and outgoing materials, goods receipt and goods issue, fulfill customer orders, and distribution of goods. When a company doesn’t store any goods, then there is no need of Warehouse management to manage goods.
Inbound process involves storage of goods in warehouse and their location and Outbound process involves picking up the goods. Whenever a material is stored in a warehouse, it is stored in the storage bin and you can find its current location.
Yard Management along with Configuration