Artem Latyshev, SAP EWM MM Consultant, ACBaltica
Imagine a production environment without integration between the warehouse and production planning: components don’t arrive on time, assembly lines stand idle, workers waste hours searching for parts, and finished goods pile up in storage. Costs rise, customer satisfaction drops, and chaos spreads.
Fortunately, there’s a solution. SAP Extended Warehouse Management (EWM), tightly integrated with Production Planning (PP), synchronizes material movements with production orders, tracks consumption precisely, and gives full control over warehouse and production flows in real time.
What is SAP EWM?
SAP Extended Warehouse Management (EWM) is a central system that controls and optimizes all warehouse operations. It manages inbound and outbound logistics, storage, picking, packing, labor, and quality control. The system tracks every movement in real time, showing where materials go and which resources handle them.
But EWM goes far beyond classic warehouse management. Its strength lies in how it integrates with other SAP modules to orchestrate end-to-end supply chain processes.
What is SAP Production Planning (PP)?
SAP Production Planning (PP) is one of the core ERP modules that organizes and controls manufacturing processes. It defines what should be produced, when, in what quantity, and with which resources. At the heart of PP lies the production order, which contains critical information about the finished product, its required components, the necessary operations, and the relevant dates. The production order initiates and drives the production process in the system.
How SAP EWM and SAP PP work together
Here is the core process:
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Requirement from PP – Production Planning sends requirements to EWM, specifying which parts production needs and when.
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Warehouse tasks created – EWM automatically generates warehouse tasks.
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Staging in PSA – Warehouse staff collect materials from general storage and transfer them to the Production Supply Area (PSA). The PSA is a dedicated area where workers keep production-ready parts before sending them to the line.
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Consumption in production – When workers move parts from the PSA to the production line, consumption starts.
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Return flow – Once production consumes components and finishes the assembly, the finished goods return to the warehouse for storage and further processing.
When SAP EWM and SAP PP work together, the warehouse always knows what the production team needs and when. Materials arrive at the right place on time, production doesn’t have to stop and wait, and everyone sees the same up-to-date information about stock and orders.
SAP EWM and SAP PP integration models
There are two standard integration models:
Delivery-Based Integration
- PP generates delivery documents for required materials.
- EWM uses them to execute staging and consumption.
- Best for stable, delivery-driven operations.
Advanced Production Integration
- PP creates Production Material Requests (PMR), which are replicated into EWM.
- EWM manages staging, consumption, reversals, and reporting directly.
- Best for dynamic and flexible manufacturing environments.
How to choose the right SAP EWM–PP integration model
Both integration models are included in the SAP EWM package. The right choice depends on how your production and warehouse processes are set up. For example, think about how far the production area is from the warehouse, how often your production schedule changes, and how much automation you use.
To help you decide which model fits your scenario best, see the comparison table below:
Core integration objects
- Production Order – The starting point of the chain. It specifies what to make, which components are needed, and when. It also includes the work center number, which maps to a Production Supply Area (PSA).
- Production Material Request (PMR) – In the Advanced Production Integration model, EWM receives production order information as a Production Material Request (PMR). This document gives warehouse managers everything they need to plan work, start staging materials, and manage the process.
In the article, we focus specifically on Advanced Production Integration and demonstrate warehouse capabilities in this context (because this model gives the warehouse more flexibility and better collaboration with production).
Example: Wagon assembly
To illustrate how SAP EWM integrates with production planning, we'll take a step-by-step look at a complete wagon production scenario.
Production Order components
A PMR groups production components into four categories. Each category follows its own staging strategy, helping warehouse staff understand how to pick, stage, and restock every part:- Pick parts: Unique to a specific order, staged directly to PSA (e.g., wagon frame).
- Cross parts: Shared across multiple orders, efficiently managed across PSAs (e.g., wagon wheels).
- Non relevant for staging parts: materials not staged through EWM (e.g., bulk materials).
- Crate parts: Continuously consumed materials, replenished automatically to maintain minimum stock levels (e.g., ball bearings).
The process we describe here is divided into three key roles:
- Production Planning
- Warehouse
- Warehouse Picker
Production Planning view
Manage Production Order report
Manage Production Order report provides a complete overview of all orders ready for handling. It shows planned quantities of finished products, statuses, start and end dates, and color-coded indicators that highlight progress. Statuses are especially important:
- Delivered means the product is already in the warehouse.
- Confirmed indicates assembly is complete and the goods are ready for receipt.
- Released shows that components are available for staging and can be processed in the warehouse.
- Created means the order exists but is not yet ready for warehouse handling.
Order information
Production order reveals key details: general information about the order, relevant dates, and the full list of components with their required quantities. Each item is color-coded for clarity. For example, green shows that a component hasn’t been used yet. In the next steps, you will see how these colors update in real time to reflect the actual status of production.
In the Order Schedule: Operations view, you see the full sequence of operations and the work center number linked to the Production Supply Area (PSA). This tells the warehouse team where to stage each part. As production moves forward, the system updates relevant details, keeping warehouse and production in sync.
Warehouse view
On the warehouse side, the Warehouse Management Monitor gives a clear view of all operations. It shows outbound and inbound flows, inventory levels, bin and stock details, alerts, and labor and resource management. All relevant documents appear in one place, and you can customize the view for different user roles.
You can search documents by manufacturer or production order number, but in practice, users usually filter by status, creation date, or other criteria.
In this view, you can see how many PMRs are currently in the warehouse, along with their related manufacturing orders, statuses, finished product codes, quantities, dates, and other key details. You can also drill down into individual PMR items to see more information, including the link to the production order, the component type (cross-order, single-order, or crate parts), the required and consumed quantities, and the specific Production Supply Area (PSA) and storage bins where each component is staged.
Stage for Production
Once the required Production Material Requests (PMRs) arrive in the warehouse, staging begins. The Stage for Production function in SAP EWM organizes and moves all necessary components to the Production Supply Area (PSA), making sure materials are ready and properly allocated for production.
The report lists all required components, showing single-order parts like wagon frames, which belong to a specific manufacturing order, and cross-order parts like steel wheels, shared across multiple orders. It highlights required and open quantities, where zero open quantity means the component has already been consumed, and the consumed quantity shows how much has been issued from the Production Supply Area (PSA).
Staging starts by entering the required quantities and selecting the relevant lines, which generates warehouse tasks automatically, while the system chooses the best storage bins for picking based on warehouse, access types, and process configurations.
Staging starts by entering the required quantities and selecting the relevant lines, which generates warehouse tasks automatically, while the system chooses the best storage bins for picking based on warehouse, access types, and process configurations.
Warehouse Management Monitor
Once warehouse tasks are created, the Warehouse Management Monitor lets staff see all open tasks and track ongoing activities in real time.
Each warehouse task tracks the movement of materials within the facility. When applicable, tasks reference the related production order. Cross-order components, such as steel wheels, are shown with product details, required quantities, and the source and destination bins.
In practice, warehouse tasks are typically confirmed by stockkeepers using PDA devices. However, SAP also allows managers to confirm tasks directly from the Warehouse Management Monitor. Once a task is confirmed, it disappears from the open tasks list, keeping the view up to date.
In practice, warehouse tasks are typically confirmed by stockkeepers using PDA devices. However, SAP also allows managers to confirm tasks directly from the Warehouse Management Monitor. Once a task is confirmed, it disappears from the open tasks list, keeping the view up to date.
Consumption
The post consumption process is managed through a dedicated tile. This allows warehouse staff in the Production Supply Area (PSA) to issue components to the production line and record their usage in the system.
You can record consumption manually using a desktop or mobile device or let the system post it automatically according to preset rules. First, specify the manufacturing order so the system knows which components to issue. Then, SAP records the consumption of the staged parts.
At this stage, all components relevant for a manufacturing order are visible, along with their required quantities. Consumption is recorded by selecting the line, entering the quantity, and posting it in the system.
The Advanced Production Integration model supports flexible consumption, allowing warehouse staff to issue quantities exceeding the original plan if necessary. This ensures that additional needs (like extra ball bearings) can be accommodated without disrupting the workflow.
Once consumption is posted, the Managed Production Order report reflects the updated status and quantities, providing a clear overview of what has been issued versus what remains to be consumed.
The Advanced Production Integration model supports flexible consumption, allowing warehouse staff to issue quantities exceeding the original plan if necessary. This ensures that additional needs (like extra ball bearings) can be accommodated without disrupting the workflow.
Once consumption is posted, the Managed Production Order report reflects the updated status and quantities, providing a clear overview of what has been issued versus what remains to be consumed.
In the Managed Production Order report, consumed items are now shown in gray, while items yet to be consumed remain green. This view makes it easy to compare the total quantity required with the amount actually consumed for each order.
Reversal
When mistakes happen or materials need to go back to the warehouse, you can use SAP’s Reversal view to return them easily.
Over-consumption
SAP offers a dedicated report for tracking overconsumption. In this customizable report, you can monitor quantity of overconsumed components.
Good receipt: mobile view
With the order completed, it’s time to record the goods receipt in the warehouse. On the mobile device, the menu displays all available operations. The menu can be tailored based on the user’s role in the warehouse.
In SAP EWM, the inbound process tracks handling units as they arrive in the warehouse for a specific manufacturing order. First, you select the relevant work center. Then, you enter the manufacturing order to identify the received items, usually by scanning the barcode. The system verifies the product number to ensure accuracy. Next, you create a handling unit (HU) to represent the packaged goods in the system. This allows you to generate essential documents, such as labels or slips, which include the batch number, receipt date, production date, HU number, and product number.
After you post the goods receipt, you can check in the Warehouse Management Monitor to make sure the finished product is received and stored in the warehouse.
The system now reflects a Delivered status with an open quantity of zero, confirming that the finished product has been successfully received into the warehouse. Then you can review operations for the corresponding manufacturing order in the Production Overview Report. It shows the manufacturing order number, product description, production order status, storage bin where the finished product was received, planned quantity, and actual quantity recorded in the warehouse, all in the product’s base units of measure.
Together, the Status Report and the Production Overview Report confirm that the finished product has been successfully received and stored in the warehouse.
Key business benefits of integrating SAP EWM with SAP PP
SAP EWM links warehouse operations with production planning so the warehouse can directly support and stay in sync with manufacturing. Its key advantages include:
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Improved efficiency – automated goods receipt and putaway tasks reduce manual work and speed up warehouse-to-production processes.
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Greater flexibility – staging and consumption can adapt to actual production needs, ensuring smoother operations even in changing conditions.
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Better inventory visibility – synchronized material flows provide real-time insights into stock levels, helping avoid shortages and overstock.
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Optimized space utilization – flexible staging planning for production supply areas (PSAs) ensures warehouse and production areas are used effectively.
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Reduced errors and rework – simple reversal processes and clear documentation minimize mistakes in handling and reporting.
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Mobility and accessibility – desktop and mobile interfaces empower both warehouse and production staff with easy-to-use tools.
Integrating EWM with production planning allows organizations to achieve higher throughput, better inventory control, and measurable improvements in efficiency and responsiveness.
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