SAP Extended Warehouse Management (EWM)

Managing a modern warehouse is more than just moving boxes – today, it's all about working smarter, faster, and more resiliently. SAP Extended Warehouse Management (EWM) gives you the tools to streamline, automate, and optimize every part of your warehouse operations.

What is SAP EWM?

Managing a warehouse today is no easy task – especially when you're dealing with huge volumes of goods, tight deadlines, and ever-changing demands. That's where SAP Extended Warehouse Management (SAP EWM) steps in. It helps you ditch manual, error-prone processes and replace them with smart, real-time logistics. With SAP EWM, your warehouse becomes faster, more flexible, and ready to tackle any challenge – whether you run it on-premise or in the cloud.

SAP has been helping businesses run better warehouses for decades. Back in 1993, it launched SAP WM – a simple tool to manage warehouse processes inside its ERP system. Over time, as warehouses got bigger and operations became more complex, SAP went a step further. 2005 it introduced SAP EWM – a powerful solution built specifically for modern logistics needs. It already includes all the best features of the old system (and more) but also gives you the flexibility to customize it to your needs.

SAP EWM is all about helping you run a smoother, smarter warehouse. It cuts errors, lowers operational costs, speeds up deliveries, and gives you real-time visibility into what's happening at every step. Whether you use a version integrated with SAP S/4HANA or run a standalone solution, SAP EWM turns warehouse management from a daily headache into a real competitive advantage.

SAP EWM Deployment Options

When choosing SAP EWM, you have several options – each designed to fit different business needs and IT strategies. Here's a quick overview:

Decentralized SAP EWM (Standalone)

Here, SAP EWM runs as a separate system connected to SAP S/4HANA or any other ERP system – SAP or non-SAP, in a single or multiple locations. Standalone EWM is the fullest version of the solution, and it can be deployed both in the public cloud and on-premise.

Key benefits

Greater flexibility, scalability, and independence, easier integration with the warehouse automation systems, material flow system (MFS).

Best for

Businesses that need a powerful solution to manage large, high-volume, or complex warehouse operations – with minimal impact on their core ERP system's performance.

SAP EWM embedded in SAP S/4HANA

Embedded SAP EWM, also known as part of SAP S/4HANA Supply Chain Management for Extended Warehouse Management, is built directly into the SAP S/4HANA system (hosted in the private cloud or on premise). It has two options: Basic (included in the S/4HANA license cost) and Advanced (requires additional licensing). Like a standalone solution, it can be deployed on-premise or in the cloud.

Key benefits

Simpler architecture, easier integration with other business processes already running with your SAP infrastructure (especially if you use SAP S/4HANA), and lower cost of ownership than the standalone solution.

Best for

Companies looking for tight integration between warehouse management and core ERP processes without a need for a separate system.

Warehouse Management in SAP S/4HANA Public Cloud

Another version of an out-of-the box solution for warehouse management is natively available in SAP S/4HANA Public Cloud. This solution has slightly reduced functionality compared to embedded EWM, but for some companies, it's still a great fit.

Key benefits

Simpler, preconfigured warehouse processes designed for fast adoption and lower complexity; always updated with the latest innovations.

Best for

Companies aiming to move to the cloud, provide they have standard warehouse operations and do not need heavy customization or automation.

Benefits of SAP EWM

Streamlined warehouse operations

SAP EWM orchestrates all your warehouse activities – from planning and storage to picking, packing, and shipping – so your processes run smoothly and with fewer errors.
Increased agility and flexibility

Easily adapt to business changes or supply chain disruptions. The system is designed to help you stay ready, resilient, and responsive – no matter what comes your way.
Better space utilization and higher throughput

Optimize storage planning and use every inch of warehouse space efficiently, allowing you to handle more orders and boost throughput without extra costs.
End-to-end visibility and control

Get real-time insights into your stock, warehouse performance, and ongoing operations. This transparency means you can quickly spot issues and make better decisions with a minimal involvement of your IT teams.
Automated and efficient processes

Leverage automation and advanced tools like wave planning, smart order management, and automated work package creation to save time and reduce manual work.
Support for value-added services.

Easily offer extra services, like creating custom kits or modules for customers, right from your warehouse.
Easier upgrades and integration

Benefit from flexible upgrade options, extensibility, and reusable templates, making it simpler to keep your system current and integrate with sales, production, and finance.
Global compliance and sustainability

Ensure you meet international regulatory requirements – all thanks to robust compliance features. Supporting sustainability goals in your warehousing and logistics operations.

Key capabilities of SAP EWM

Orchestration of goods movement and storage processes

With SAP EWM, you gain complete control over every step of how products move in, through, and out of your warehouse. It helps ensure that everything – from receiving goods to putting them in the right place, picking, packing, and shipping – is planned, organized, and executed smoothly, so nothing gets lost or delayed. In other words, SAP EWM acts like a conductor, making sure all parts of your warehouse work together – in the most efficient way.

Warehouse Monitor - the central tool for monitoring all processes in the warehouse

The Warehouse KPIs application helps you track the real-time situation in your warehouse

Intelligent management of inbound processing

Make sure that inbound goods processing (like receiving, checking, sorting, and putting items away) is handled in the smartest and most efficient way. By automating and optimizing activities such as goods receipts, returns, and internal routing, SAP EWM helps reduce waiting times, speed up turnaround, and increase overall productivity.

Transaction "Change Inbound Deliveries" displays the overall picture of inbound deliveries in the warehouse

For each inbound delivery, you can perform various warehouse actions, such as gaining goods receipt, packing the units, creating warehouse tasks, etc.

Quality Management & Inspection

Quality Management in SAP EWM allows you to integrate inspection processes directly into your warehouse operations. It supports both planned and ad-hoc inspections during goods receipt, storage, and outbound stages. Upon goods receipt or returns, inspection lots are automatically created and processed, whether through manual checks or fully automated routines – all to ensure that only approved stock moves forward. Any non‐conforming items are instantly blocked, helping you catch defects early and maintain compliance without leaving the EWM interface.

Recording the usage decision in the process of quality inspection for incoming goods

Storage and internal processing

SAP EWM helps you manage and move goods within your warehouse efficiently, tracking every item to the smallest detail. By optimizing inventory and internal processes, it enables you to use your warehouse space better, reduce manual effort, and support advanced operations like kitting and value-added services.

The Pack Warehouse Stock application helps you repack items in the warehouse

Outbound process management

With SAP EWM, you have full control over everything that happens when products leave your warehouse – like picking, packing, loading, and shipping orders to customers. It helps ensure the right items are collected, packed correctly, and sent out on time, reducing errors and speeding up deliveries so your customers get what they ordered fast and accurately.

The Run Outbound Process transaction allows you to monitor the processing of outbound deliveries

Process automation

SAP EWM allows you to handle routine warehouse processes – like moving goods, updating inventory, or generating pick lists – without manual effort. This approach saves time, reduces mistakes, and lets your team focus on more important work, making the whole warehouse run faster and more smoothly.

With the Wave Management feature, you can automate and optimize the stock picking process for shipment

Resource and labour management

SAP EWM helps you plan, track, and optimize how your warehouse team works. You can monitor employee performance, assign tasks more efficiently, and make sure the right people are in the right place at the right time. It gives you insights into workloads, productivity, and resource needs – so you can balance your teams better, avoid bottlenecks, and keep operations running smoothly. Eventually, it helps boost efficiency while supporting a fair and well-organized work environment.

You can manage different types of resources depending on the responsibilities of warehouse employees

Equipment automation

The Material Flow System (MFS) in SAP EWM enables direct communication between SAP and automated warehouse equipment, such as conveyors, shuttles, and automated storage/retrieval systems. It allows real-time control and monitoring of material movements without the need for additional middleware. With this feature, you ensure precise coordination of internal warehouse flows, helping reduce delays and bottlenecks in high-throughput environments.

You can monitor robots with a map layout right from the interface

Why choose ACBaltica for SAP EWM implementation services?

Extensive experience with SAP EWM solutions

At ACBaltica, we have experience not only implementing SAP EWM solutions but also performing rollouts and EWM support service (including support for legacy software versions) no matter what version of SAP EWM software you use (EWM 9.0, EWM 9.5, S/4HANA embedded EWM and S/4HANA decentralized EWM), we can help you get the most of it!

Certified EWM experts

We have a big team of high-level SAP EWM consultants, Basis developers, and architects – all you need to ensure top-notch service.

EWM customizations

Sometimes, your needs go beyond the out-of-the-box capabilities of the solution. No worries: we can help you with custom code, including customization of your PDA devices (based on SAP Radio Frequency Framework).

SAP integration mastery

With our knowledge and diverse practical experience with the SAP products, we can help you seamlessly integrate your EWM system with other SAP products (MM, PP, Sales, PM, TM, etc.), including integration with your ERP system and processes (like purchasing and putaway, production extended operations, and more).

Deep expertise in SAP solutions

With our 20+ years in business, we bring you vast knowledge of the industry and best practices, along with diverse hands-on experience fixing and preventing all kinds of issues (like master data inconsistencies, integration errors, customization bugs, regulatory compliance gaps, and more).

Variety of available resources

With our team of 140+ SAP experts, we can help you with any challenges you might face (like system architecture, integration with SAP and non-SAP products, Basis support, and more).

Flexibility and scalability

With every customer, we find a unique approach and focus on achieving your goals over SAP processes. If you need a flexible timetable, on-site training sessions, or a team of experts able to adapt to your internal methodologies, you can have it all!

Competitive pricing

With our delivery center in Eastern Europe, we guarantee you quality service at a competitive price point.

Frequently asked questions about SAP EWM

What is SAP EWM used for?

SAP Extended Warehouse Management (SAP EWM) is software that helps businesses manage and automate all warehouse processes, from receiving goods to shipping orders. It gives real-time visibility into inventory and streamlines operations, leading to faster, more accurate, and more efficient warehouse management.

What is the difference between SAP WM and SAP EWM?

SAP WM (Warehouse Management) is an older solution built into SAP ECC. It offers basic warehouse functions. SAP EWM is much more advanced, offering flexible process modeling, automation support, advanced operation monitoring, and better integration with modern technologies. EWM is designed for more complex, high-volume, or fast-moving warehouses.

What are the key features of SAP EWM?

SAP EWM (Extended Warehouse Management) helps manage and optimize all warehouse processes—from inbound receiving and storage to outbound picking and shipping. It offers real-time inventory visibility, advanced task and labor management, and seamless integration with automation tools like conveyors and robotics. EWM supports mobile devices and RF scanners, enabling fast, accurate execution on the warehouse floor. It also includes smart features like kitting, value-added services, and slotting for better space utilization. The system integrates tightly with SAP S/4HANA and other SAP modules to ensure smooth end-to-end logistics operations.

Can SAP EWM integrate with automated warehouse equipment?

Yes! SAP EWM is designed to connect easily with warehouse automation systems like conveyor belts, high-bay storage, autonomous mobile robots, and pick-by-voice devices. This integration helps companies increase speed, reduce errors, and operate warehouses with much greater efficiency.

Is SAP EWM suitable for small or medium-sized businesses?

Yes, SAP EWM can work for businesses of any size, depending on their warehouse complexity. Smaller businesses might use a simplified version (like Basic EWM embedded in SAP S/4HANA), while larger companies can benefit from the more advanced features (like an Advanced version of embedded EWM or a standalone solution). It's highly scalable, and it grows alongside your business.

How does SAP EWM help improve warehouse efficiency?

SAP EWM automates many manual tasks, optimizes storage space, and ensures smarter inventory management. It speeds up receiving, picking, and shipping processes while reducing errors. Additionally, it helps create an accurate resource management environment. As a result, companies can handle more volume with fewer resources and deliver faster (and more accurately!) to customers.

What's the difference between embedded EWM and decentralized (standalone) EWM?

Embedded EWM runs directly inside the SAP S/4HANA system, meaning simpler setup and tight integration with core business processes. Decentralized EWM runs separately and is ideal for businesses with large or complex warehouse networks that need independent scaling and performance. The choice depends on your warehouse size, business goals, and system landscape. Also note: if you do not use (and don’t plan to use) an SAP ERP, you can only use decentralized EWM, as the embedded version comes within SAP S/4HANA.

Is SAP EWM available in the cloud?

Yes, SAP EWM is available both in private and public cloud. In general, cloud deployment offers faster implementation, easier updates, and lower maintenance costs compared to traditional on-premise models. So if your company is looking for agility, scalability, and future-ready technology, cloud deployment is probably the right choice!