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EWM
Shaun Snapp
August 26, 2017

What Warehousing
Environment is SAP EWM
Design For?
Executive Summary
SAP EWM has a very particular design that was based upon a third-
party logistics provider rather than a shipper.

This has had negative implications for customers but is not discussed by
SAP consulting companies.
Introduction
In this article, we will discuss how major SAP consultancies conspired
with SAP to bring a completely inappropriate application, called EWM
to their clients, and how EWM bombed at client after client. In the
article, we will explain why the EWM design is so much different that
what most companies need from a WMS solution.

Background of SAP EWM

Design
EWM has had limited success in the market. EWM is similar to SPP in
that is came to the market with high hopes. However, it has proven to be
both buggy and simply overly difficult to configure. I covered the issues
with EWM’s enormous configuration challenges in this article .

What is the SAP EWM Design

Actually For?
EWM is really designed more for a 3PL or logistics (FedEx, UPS,
etc.) companies that manages its own warehouse. This is because
EWM was developed off of requirements or Caterpillar Logistics.

Many of the features that EWM has really pay off more when a
warehouse is very large and very sophisticated. Interestingly, 3PLs and
logistics companies are not really users of APO. A major way that SAP
gets companies to implement APO modules is when they are already
customers of APO. So a company that has DP and SNP, then often
wants to turn on other modules. However, by directing the functionality
of EWM towards 3PLs and logistics types of warehouses, SAP has
undercut its own natural marketing advantage.

I have worked in both 3PLs and understand the logistics companies. I

simply can’t see them implementing EWM. EWM is not sufficiently
practical for their needs and orientation. Very complex and expensive to
implement systems don’t fly these types of companies.

The fact that SAP even developed the product with a functionality set
for these types of companies show the lack of business knowledge
within both the development and marketing organizations in SAP. This
is an example of poor development decision being made by people
within SAP. It stems from SAP resources who both don’t understand the
warehouse management market very well and who are applying a
kitchen sink approach to product development.

A Better Strategy for EWM

SAP would have been far better off to simply direct EWM toward the
needs of companies that have APO already, that is that have more basic
warehouse management needs. This would also have made EWM much
more implementable. This is a major factor holding back EWM from
being a successful products. SAP has a tremendous advantage when they
introduce new products. Many companies want to use SAP, and the
problems with both EWM and SPP in gaining market share demonstrate
both how weak the products are, but also how poor the overall marketing
and development strategy has been for these products. As a person who
has been trained on both EWM and SPP, paying for the training myself,
and this was money that was wasted.

SAP keeps marketing these classes and talking about the great future of
EWM and SPP, but let’s get real, both these applications have had years
to find an audience, and they have not for a good reason. I have
personally questioned whether SPP is even live , that is in a real way, at
any account globally. Some of the first SPP clients have been trying to
get the system live for roughly a decade. What is the length of payback
on a ten-year implementation?
Should SPP and EWM
Have Been Introduced to the
Market?
I bought into the idea that SAP would have success with these new
products, and in fact, I work in all the older modules. In fact, most
companies, consultants, and even SAP itself would have been better off
if EWM and SPP had never been introduced. Instead, SAP should have
allocated the development effort to fixing the continuing problems in the
pre-existing modules.

If SAP is ever serious about getting traction in EWM or SPP (which will
be more difficult now that they have generated such a problematic track
record), they need to hire people with business experience in
warehousing and service parts planning, something which they have not
done very much of up to this point.

What These Products Have

Lead To
Individuals to waste money on products that are in beta stage and not
ready to be implemented.

Companies spending implementation and software license on products

that they could have spent on best of breed applications that actually
worked.
Friction between consultants that work in this modules and depend upon
them for their livelihood and those like me who point out that these
products are not ready for prime time.

Confusion within companies as to what the actual direction is with these

products.

Resources diverted that could have been used to make the other APO
modules better and less buggy.

A less efficient market, with limited monies that could have gone to
vendors like MCA Solutions or Servigistics (for service parts planning)
or Red Prairie or Manhattan and Associates (for warehouse
management), all of which had products that were fully functional and
ready to add value to client’s businesses.

What is the Future for EWM?

The future for EWM does not look good. SAP will probably try to
reboot it, but rebooting it will be difficult. I am also unsure that
warehouse management offers the types of margins that SAP is used to.
SAP’s WM product took very little development effort and is more of a
glorified inventory management system rather than a true WMS. It has
been moderately successful in terms of implementations, although is a
bad product overall. However, with so little invested in it, it was still a
worthwhile development. EWM took a lot of development work and will
take much more development work to get right. If I am managing SAP
development, I may consider cutting the product. I don’t think they will,
but it may end up as sort of like the F&R module, that is it exists, but it’s
not actively implemented.
Conclusion
This article was written in 2012. This conclusion was updated in June of
2018. Since this article was written EWM has all but disappeared from
the marketplace taking enormous amounts of consulting hours down the
drain with it.

As we made this prediction in 2012, and if customers heeded out advice,

instead of listening to Deloitte or Accenture, they could have saved
themselves the cost and loss of time in implementing what was always a
doomed application. For some reason, we doubt that Deloitte and
Accenture and many others will be publishing on how they were so
wrong on EWM and how they billed so much for an application that
could not be taken live.

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Shaun Snapp
May 7, 2012
EWM , SPP

Down the Rabbit Hole with

EWM Configuration
What This Article Covers
Understanding the enormous configuration effort with SAP EWM.

Functionality overkill and the IMG.

The logic of EWM’s design.

How Far Down Does the
Rabbit Hole Go?
After spending a great deal of time organizing EWM configuration
screens into an external tool for reference on future projects, I
increasingly appreciate how massive the EWM application is. I now
have over 700 rows in my spreadsheet, each row representing a
configuration screen. This along with my implementation experience
highlights to me the importance of limiting scope of EMW projects to
something manageable. When compared to a module like SNP, there is
just so much more detail to configure. Considering the very limited and
simplistic functionality in SAP WM, EWM is its polar opposite.
However EWM projects will simply have to take more time and more
resources than what WM projects did in the past.
Functionality Overkill and
the IMG
The size of the functionality is made even a more significant hurdle due
to the inefficient IMG. The IMG serves to encapsulate information in a
completely unnecessary way, and the large the functionality, the greater
the liability of SAP’s IMG design. I have been wondering recently how
much more efficient a configuration spreadsheet would be. The
spreadsheet could be coded externally, and then simply uploaded.
Multiple line items with the same first cell of the row would simply
mean how many items in a particular area would need to be setup. So for
instance, to set up four different Storage Types in EWM, three rows on a
spreadsheet would be added to the spreadsheet. The master row would
simply be copied over three times. A very significant benefit of this is a
basic configuration could be copied over from system to system. I have a
spreadsheet like this, which I have created for my consulting practice,
however, there is no way to upload it into SAP. So it is really just an
offline tool.
In the movie groundhog day, Bill Murray’s character keeps reliving the
same day…kind of like the experience of reconfiguring SAP boxes
because I cannot port my configuration from one box to a new one.

Groundhog Day
I have become very tired of all of my configuration work being
annihilated when a box is refreshed. Why can’t I port my configuration
from SAP system to SAP system? Why must I reinvent the wheel every-
time I arrive on a new project? SAP has few to no answers in this area,
and clients do not seem to know how much double work there is
involved with an SAP implementation because SAP has made it so
difficult to maintain their systems.

A Logical Solution
The most logical way of handling this is to create a file that can be
manipulated in Excel, that contains all configuration details. This file
could then be uploaded to SAP. The system would parse the file for
logical consistency, and would reject files and provide an error log for
improperly configured files. This would help remove the bias of so
many IT projects where after the initial design stages the project
basically leaves the business behind and the entire project becomes
about the technology.

Shaun Snapp
April 10, 2010
EWM

Implementation Issues
Implementation Issues Master Data

How to Use EWM Product

Master Fields and Enhancement
Executive Summary
On the EWM product master, there are the important settings in the
storage tab and the package tabs.

Introduction
This is a simple description of master data fields for EWM.

Storage Tab
 Packaging
Tab
 Unit of
Measure

Transaction Which Holds

Product Master Data for EWM
EWM is unusual in that it does not add EWM specific tabs to the SCM
product master. Instead, it has a separate transaction which holds the
EWM data.

This brings you to this screen.

You need to enter the Party Entitled to Dispose. This brings up these
tabs. However, many of the selections need to be configured first.
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Shaun Snapp
April 7, 2010
EWM

Master Data
Master Data Service Parts

How to Manage The

Tremendous Complexity of SAP
EWM
What This Article Covers
How Large and Complex is EWM configuration?

What Tools Can be Used to Help Organize the Process?

What Adjustments Have to be Made to Implementation Timelines for

EWM?
Introduction
In developing a configuration document for EWM, it became apparent
how large and complex the configuration of EWM is. On my previous
implementation, we only brought up a few areas of functionality such as
slotting and rearrangement. However, the setup options of EWM just
seems to on and on.

I counted at least 40 basic master data setup objects. Slotting itself has
around 20 either direct objects or mappings between objects. The objects
are so numerous I am thinking of using mind mapping software just to
keep track of all of the relationships. One way to manage the complexity
is to code each object as to whether it is in scope for the implementation.
Then filter the objects for just the in-scope objects (and mappings), and
it will substantially cut down the list necessary for me to review as I go
through requirements gathering.

This will be the first time I have done this aside from creating a blog
based configuration document for SNP. While its great to have, I don’t
think a word processing type document is the right format anymore for
this type of detail. I think more advanced tools are necessary.

Limiting Scope and

Lengthening the Timeline
This reinforces what I have thought previously about EWM. As the
module with the largest scope in SCM, getting clients to limit their
project scope should be a serious emphasis of any EWM project.

Secondly, software such as Red Prairie is far easier to configure. I would

estimate that EWM projects have to be planned to be longer than typical
SCM module implementations due to the inherent complexity of the
application.

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Shaun Snapp
March 28, 2010
EWM

Master Data
Master Data

Protected: EWM Issues

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March 23, 2010
Main

How to Use Batch Management

in EWM
Executive Summary
Batch management is a functionality in EWM. Important areas in batch
management are the batch record and the batch specification.

This article covers the setup of batch management in EWM.

Introduction
Batch management is the used to track individuals items in a supply
chain at a batch level. It is a functionality within SAP ERP and is part of
the logistics area. Batch management is used wherever individual batch
traceability is required. This can be due to differentiated quality due to
variable manufacturing output. It can also be due to legal requirements.
For instance, pharmaceutical supply chains often employ batch
functionality in their software, as to various process industries.

Batch Determination
A standard feature of batch management is batch determination. This is
where criteria can be used to search for specific batches that apply to
such things as posting goods issue, or for combining suitable materials
for production orders. For instance, with the configuration of SAP Batch
Management, SD can see if the current or planning stock batches match
the customer order if not, production of the batch specification for that
customer can be scheduled for production, or ordered from a vendor.

What is on the Batch

Record?
The batch has three fields associated with it:

Material

Batch

Plant

Batch Specification
This describes the technical, physical or chemical properties of the
batch. Batches can have multiple variables that differentiate them from
other batches (almost any characteristic you could think of, the most
obvious being color). These are called characteristics, which gets into
characteristic based planning, which I prefer not to get into for this
article as this drives a different discussion. Items that share the same
measured characteristics are part of one “batch.” Batches are assigned to
a class in configuration, and the class is then assigned to a material
master record.
Thus, at its heart, Batch Management is the creation of a one (material
master) to many (batch) relationship. More batch types can be added to
materials (and deleted) at any time. Some of the master data is then
controlled by the batch, and no longer the material master (i.e., the
pricing an cost), thus in a way the batch is an extension of the material
master.

QM and Batch Management

Batches can be tested by a lab and determined if they fit within the batch
specifications, and this process is managed by QM (or QIE in EWM).

EWM and Batch

Management
This is a blog on APO planning, not ERP, so the beginning of the post
was just a setup for how Batch Management in SAP ERP enables Batch
Management in EWM (or the other way around).

(for those unfamiliar with EWM, please read this introductory article )

I found a very good article on EWM and Batch Management by

InfoLogix, and I have included excerpts below.

“SAP EWM is fully integrated with Batch

Management. the batch number is a key field of
all inventory records for batch-managed
materials. Batches are recorded during all
inventory transactions such as receiving,
putaway, picking, goods issue and physical
inventory. Batch determination is integrated into
EWM, allowing for optimal selection of products
during picking for outbound orders or
replenishments according to warehouse logic
(i.e. zones preferences) as well as other business
or regulatory rules based on batch
characteristics or expiration dates (fifo, fEfo,
etc.) it is possible to drill-down into batch master
details in all stock inquiries and see batch
information and batch characteristics
data. During the inbound process, batches can
either be passed from SAp Erp via the inbound
delivery, or can be captured (and created)
directly in EWM, offering you maximum
flexibility in your receiving process. during the
batch creation, attributes (characteristics) such
as country of origin, expiration date, shelf life
expiration date and production date can also be
assigned to the batch master. these are all
critical attributes that most life Sciences
companies must track.” – I nfoLogix – Applying
SAP EWM to a Life Sciences Environment
(White Paper)

Setting Up Batch Management

in EWM
The batch management indicator appears in the product view.

Batch determination switch is in ERP IMG – Maintain Extended

Warehouse Management Parameters
Now we want to maintain batches for the product.
Now we will go and create a sales order in ECC at VLO1N
Now we want to go and process it inbound with EWM. We type in our
outbound delivery into EWM and select ERP Document.
Now we will create and save the warehouse task.

Now we will confirm the warehouse task.

Now we will confirm the order.

Now we will display the ODO, and the batch split information.

Now we see the split below.

Now we perform a goods issue.

Now we goto ECC to display the outbound delivery.

Conclusion
Batch management is one of those things that companies have to be very
serious to implement eventually. It is costly and in a way is similar to a
project code regarding tracking (bear with me SAP PS consultants). That
is it provides a cross-sectional way to follow a material. It has both
logistics implications (customers get batch A and not batch B), and these
can be costed and priced differently (batch A may be more expensive to
make and be more pricey for customers). A trade-off analysis must be
performed (unless stipulated by regulation or other law) as to whether to
turn on the batch management functionality or attempt to manage and
model the process with additional material numbers. Batch Management
provides extra benefits when it comes to reporting, as instead of simply
seeing a report by different material numbers, the batch numbers can be
reported upon, providing a higher level of organization of the data.

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improve both your stocking optimization and how your MRP or supply
planning resources are applied.

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References
Batch Management (LO-BM, SAP AG)

Applying SAP EWM to a Life Sciences Environment, InfoLogix White

Paper

Shaun Snapp
February 9, 2010
EWM

Batch Management
Batch Management

Catalyst on Yard Management

in EWM
EWM Functionality
Yard management is a function of EWM as we discuss in other posts on
this blog. While doing research into yard management we came upon a
good white paper by Catalyst International. Here are some interesting
quotations from their paper.

On the state of many yards..

The first and last place a distribution center sees

product is in the yard. However, for most, the
yard is a blind spot where time is wasted
searching for the right trailer and matching its
requirements to the right resource at the right
time. These resource and time delays can affect
productivity, impact customer satisfaction and
increase overall costs for both the yard and any
warehouse that it supports. In fact, most shipping
delays are in the yard and not on the road.
On the integration with cross docking…

In its most basic form, cross-docking is simply

moving goods directly from an
inbound shipment to meet the demand of an
outgoing order. Sounds simple? Add
in mixed trailers, dynamic scheduling
appointments, limited dock space or material
handling, customer requirements, and a labor
force and the simplicity suddenly transforms into
a challenge. The following sections are meant to
provide an overview of SAP’s functionality in
handling these challenges while integrating with
your already self-functioning SAP warehouse
management system.
On the different types of cross docking in EWM..

SAP’s solution breaks up into two main areas of

opportunity: Planned and
Opportunistic. Planned cross-docking allows
management opportunities to link
inbound and outbound demand together before
actual stock arrival. The planned
cross-docking method is an option for your
warehouse, whether at the transfer
requirements, delivery or shipment level. Once
you are comfortable with the design, SAP
provides a planning tool to perform the
optimization analysis for you
decreasing the effort for optimal optimization.
Opportunistic cross-docking creates
similar decisions, but on a real-time basis in the
case of unexpected inbound or
outbound demand. Combined with RF, your floor
operators are system-directed to
the optimal location, including incoming
purchase orders.
The paper is available here and is recommended reading for anyone
interested in yard management or cross docking in EWM.

http://www.catalystinternational.com/Content/Knowledge
Center/Downloads/whitepapers/YM Cross Docking White_Paper.pdf

Shaun Snapp
July 15, 2009
EM

How to Best Understand EWM

Labor Management
Executive Summary
Labor is a major cost driver in warehouses.

Labor Management is a functionality within EWM.

We cover the major features of Labor Management, comparing actual vs

the plan, integration with HR, and questions to ask if EWM Labor
Management is right for you.

Introduction
Labor management was introduced in EWM in SCM 5.1. While labor
management is relatively new to EWM, it is quite established with some
warehouse vendors. Manhattan Associates, one of the largest WM
vendors has the following to say about labor in the warehouse.
“Labor is a significant cost—typically 55% of the
total cost of warehouse operations—yet it is
among the most manageable….Labor
Management works by storing your database of
standards for every key task. For each associate,
the actual times for task completion are
monitored in real time and compared to
standards. Employees at all levels receive
immediate feedback on their performance.”
However people in the warehouse are low paid, so actually, labor should
be a higher percentage of the total cost of a warehouse. However,
with union busting, companies often have their workers on extremely
low wages. Amazon is now famous for using private ambulances as
lower in cost than providing air conditioning to warehouse workers.

The Category of Labor

Management Software
Labor management is actually a category of software which is much
broader than warehousing. For instance, this demo describes how their
software can be used to manage a workforce in a restaurant. This demo
is recommended as it provides a fast explanation of the types of things
that labor-management offers.
Labor management in EWM is still relatively limited compared to the
vendors that specialize in labor management and which offer
functionalities such as detailed scheduling and skill matching. The focus
of EWM labor management is an enhanced control of employee
activities in the warehouse and identifying low productivity time.

Labor Management as a Cost

Driver
While new to the topic, labor management is of serious interest to some
companies that evaluate EWM.
Major Features of Labor
Management
Functions are used to measure, plan, simulate and visualize the activities
in the warehouse.
Measurement

Engineering Labor Standards (which can be developed by tracking

employees as they progress through tasks.)

HR Integration (optional)

Labor Tracking

Comparison of Actual vs. Plan

Planning the warehouse workforce

Labor Management Setup

Labor management allows you to define your key figures and map them
to measurement services. This can allow you to track:
Outbound deliveries that have left the warehouse more than 24 hours
late

The number of open physical inventory documents that are older than
one day

The number of handling units in goods receipt.

Alerts can be based upon the exceptions from the measurement services.

Engineering Labor Standards

They must be set, and a comparison must be made between the
performance of the warehouse employees is typically done. This is how
long the activity is estimated to take.
A labor factor is applied which is the rate per worker. Efficiency can be
evaluated or the weight that was moved in a particular activity. Planned
and executed workloads can be checked, and the labor utilization is the
aggregated view of the executed workload. The efficiency value can
help accurately determine how many workers are required for the
planned tasks in the warehouse.
A planned workload document can be created and used as the basis for
planning your resources. This contains information on:
Activity area

Activity

Quantity

Planned duration

Planned end date

Travel distance

Capacity dat such as weight or volume

Comparing Actual Versus the
Plan
After performing the work, it can be used to execute the workload to
compare the planning and actual durations. Documents can be sent to the
HR system for evaluation and for the eventual payment of a performance
bonus. Documents can also be queried to check the labor input towards
them. This applied for:

Warehouse orders

VAS orders

Quality inspection documents

Physical inventory documents

Indirect labor

Labor can be tracked in the following ways:

Direct Labor (the actual activity)

Indirect Labor (housekeeping)

Unproductive Time (Unproductive time)

The direct labor is captured and stored in the EWM documents for
warehouse orders, VAS orders and physical inventory. Indirect labor is
recorded by creating indirect labor tasks and unproductive time is
captured by HR.
Integration with HR
Labor management can connect to the HR system. Thus that must be
considered if you intend to use it. The incentives can be directly tied to
the individual’s HR record. Both individuals and groups can be tracked.
Activities are assigned to an individual.

Start and end times are necessary for

Warehouse Order Confirmation

Physical Inventory Processing and Counting

VAS Processing Transactions

Quality Management Related Transactions

In work center related transactions

Labor management also requires the use of processor master data. A

processor is a person who operates a vehicle or other resource. The
processor includes skills and is a resource driver or a warehouse
employee. The processor is defined as a business partner with the role of
the processor. Resources are assigned to warehouses and to different
processes supported.

Question to Ask to Determine

Whether EWM Labor
Management is Right for You
Are you willing to set up labor standards?

Are you interested in paying incentive bonuses for work?

Do you have SAP HR and if so, are you willing to spend the effort to
integrate to it?

Is labor management a top priority for your project?

Are you interested in taking advantage of labor-management to plan the

labor in your warehouse?

Are you interested in tracking travel distance?

Labor Management as a
Rarely Implemented
Functionalty in EWM
At the time of this writing there I could not find a single technical query
on SAP’s developer forum. There were only three questions, and they
were all high level and exploratory. However, I did recently consult at a
company that has had all of its labor-management integrated with its
shop floor system for years (although it does not have a WMS system).
The company used and was very happy with their software provider
called High Jump.

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and software vendors.

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References
Brightwork MRP & S&OP Explorer for Constraining
Improving Your Constraint
Planning
SAP SNP does not work to constrain resources. It has primarily failures
in implementation in both optimization and CTM.

Brightwork Research & Analysis offers the following supply planning

tuning software with a new approach to managing capacity constraints,
which is free to use in the beginning. See by clicking the image below:

http://www.manh.com/distribution_management/labor_management.htm
l

http://www.highjump.com/Pages/default.aspx
 Shaun Snapp
June 20, 2009
EWM

Key Figure
Key Figure

Why Did SAP Name EWM

Such A Little Used Term?
What Is In a Name?

We found it strange that SAP decided to name its most advanced

warehousing solution “extended warehouse management.” This term is
first difficult to find the official definition for. The results of a search in
Google Books shows that the term only shows up in books about SAP.

Its official definition is actually a very narrow application of warehouse

management that covers an overflow warehouse, or contract warehouse.
For instance a warehouse operated by a third party logistics provider
could fit into this description.
To read more about 3PLs, see this post.

http://www.scmfocus.com/fourthpartylogistics/2009/05/25/3pl-vs-4pl/

Could a Renaming Help EWM in the Market?

After working in EWM we have concluded that the module could more
accurately be named “advanced warehouse management.” That is EWM
simply does more sophisticated things then SAP WM can do, and it may
apply to a contract warehouse, or may simply apply to a client managing
their own warehouse that have a lot of volume and strong needs in the
area. Why would SAP name a product more narrowly than the
situtations it can actually be applied to? This does not make a lot of
sense. It would seem more logical to name a product something that
makes immediate sense to people at least who work in the feild of
warehouse management.

To read more about EWM, see this post.

http://www.scmfocus.com/sapplanning/2008/05/30/extended-
warehouse-management/

To see my consulting offering in EWM, see this link.

http://www.scmfocus.com/consulting/areas-of-specialty/sap-ewm/

Shaun Snapp
June 19, 2009
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SAP Article Listing Brightwork SAP Consulting

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