Embedded EWM in SAP S/4 HANA… A

functional Comparison
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The objective of this blog is to provide a brief introduction to Embedded EWM covering following
topics:

 Evolution of EWM
 Functional comparison between WM and S/4 HANA EWM
 Comparison between Decentralized EWM and S/4 HANA EWM

Introduction:

The main functionality of warehouse management tool is to provide accurate, on-time stocks till
Bin level, capability of tracking all the movements and providing analytics.

With decades of experience in development of various warehouse functionalities, SAP continued

to march in the direction to meet the complex requirements of modern warehouses with SAP
Extended warehouse management.

Evolution of Extended Warehouse Management:

It is very interesting to note the path traversed by SAP to provide functionality to track stocks
from IM component level to present Extended Warehouse Management.

 To start with, Stock was managed at only storage location level with IM component and
without any Warehouse Management component.
 Next, the facility to enter Bin number as a text in Material Master was provided and stock
was managed at storage location level. No Warehouse Management component still.
 Later, SAP introduced Lean Warehouse Management concept where Bin number was
still maintained in Material Master as a text, but the system could create picking Task and
confirmation of picking task to update picked quantity in Outbound Delivery. The
development of Warehouse Management component continued from Storage Unit
concept, integration with modules like PP, QM and HR and HU integration.
 Introduction of Yard Management, Cross-Docking and value added services in ERP 4.7C
release set 2.0 and named as Extended Warehouse Management.
 ERP EWM solution with TRM functionality is added.
 Decentralized Extended warehouse management solution as a part of Supply chain
management. Integration with SAP ERP is needed for data transfer.
 Extended Warehouse Management in SAP S/4 HANA
Embedded EWM:

Embedded EWM came into existence with SAP S/4 HANA 1610 release. With this release.
Embedded EWM is a default offering, but traditional WM is also available. However, the life span
of traditional WM is limited to 2025 only.

With the EWM functionalities coming into S/4 HANA, advanced and flexible functionalities like
Value added services and Material Flow system also offered to Business to improve efficiency.

Most of the capability of Decentralized EWM is retained in Embedded EWM.

Before comparing the solutions of

Functional capability comparison between Traditional WM and Embedded EWM:

There are many additional and improved functionalities in EWM over the traditional Warehouse
Management component.

A brief summary along with business benefits are given below for a quick understanding.

Element/ WM Embedded EWM Business Benefits

Functionality

Organizational Warehouse Number is of 3 Warehouse Number · Physical Bin

Structure Characters is of 4 Characters structure will match
with the Bin
structure in system.

Storage Type is of 3 Storage Type is of 4 · Precise

Characters Characters location of the
Material in the Bin

· Both HU &
Storage Section is Non HU can be
of 4 Characters stored in St Type
Storage Section is of 3
Characters · Defining
Max. no. of Bins in
St Type ensures
Storage Bin is of 18
that a single
Characters
product does not
Storage Bin is of 10 overfill the storage
Characters type.

Storage Type Storage Type Search is
Search unidirectional
Serial Number Serial Number capturing and
tracking does not exist
Search Up to 30 storage types,
Strategies sections, bin types and
storage unit types can be
defined in bin searches.
Printing and Print Control settings and
Outputs output control are used to
WH documents through
SAP scripts and Smart
Forms.
Storage type can be
either HU or Non-HU
Bin Number is
unique
Two directional. Efficient sorting of
Storage Search can Bins for putaway
happen across and picking
storage types.
Serial Number Provides complete
capturing and transparency of stock
tracking is possible. in warehouse
Three levels of
Control possible:
• Delivery Item
level (Only for
activated ID/OD item
types
• Warehouse
Level (At each
GR/GI)
• Storage Bin
level (For each Task
conf.)
No limit on the Provides additional
number of storage search facility and
types, sections optimization when
storage types are
and bin types in bin more
searches
Uses the post- Leverage Adobe
processing forms Benefits
framework (PPF) to
trigger all printing
and outputs based
upon the
 status of warehouse
tasks.

Standard outputs are

delivered in both

SmartForms and
Adobe forms

Fixed Bin Only one fixed bin per Multiple storage Bins Flexibility for Fixed
assignment Material in a storage type. per Product per Bin storage
storage type. process

Decentralized EWM Vs S/4 HANA EWM:

Having discussed about the Embedded EWM capabilities over the traditional WM, we also have
another SAP EWM solution, called Decentralized EWM.

This Decentralized EWM will be a preferred solution for the following reasons:

 Multiple ERP systems are required be connected to a single EWM

 Third party manages warehouse activities
 Larger warehouses and high performances are required

Though core of the capability of decentralized EWM is available in Embedded EWM, following
comparison

Embedded EWM Vs Decentralized EWM

Criteria Embedded EWM Decentralized EWM

Master Data No transfer of Master Data Transfer of Master data

between the systems required

Core Interface CIF is not required Required

Customizing Objects transfer Not required Required

Document duplication Inbound and Outbound Replica of Inbound and

deliveries are created directly
in Embedded EWM.
outbound deliveries called
Inbound Delivery Notification
(IDN) and Outbound Delivery
Request (ODR) are created in
decentralized EWM.
 Expected Goods Receipt Not required Required for cases where no
deliveries are created (GRs
from production order/ PO
without shipping notification)

Quality Inspection No inspection document is Inspection document created

required through Quality Inspection
Engine and Inspection lot from
ERP are required.

Conclusion:

Embedded EWM provides advanced functional features, better user experience and flexible
approach to complex warehouse requirements.