SAP Extended Warehouse Management (EWM) has developed and matured over time, but there are still some myths about its functionality, usability, and user interface. In this blog post, we will explore four such common myths to provide an objective assessment and help businesses understand the true potential of SAP EWM in warehouse management.
Myth 1 - EWM is more suited to Third Party Logistics Providers (3PLs)
When SAP envisioned Extended Warehouse Management (EWM) in the early 2000s, they decided to collaborate on the design and development with Caterpillar Logistics. Caterpillar Logistics, as well as providing logistics services for Caterpillar’s own production operations, also offered third-party logistics services for other companies. Ford Motor Co. joined the consortium due to SAP’s parallel development of the Spare Parts Planning (SPP) solution for the automotive aftermarket parts sector.
The design of SAP EWM was undoubtedly heavily influenced by Caterpillar and Ford. They needed a warehouse solution that could manage more than 500,000 Stock Keeping Units (SKUs) and offer functionality to handle value-added packaging and routing within the warehouse.
EWM has come a long way since then and is now positioned as a holistic warehouse management solution suitable for a wide variety of industries. The current trend seems to be for 3PLs to standardize on “best of breed” warehouse management solutions from non-ERP vendors. For instance, Wincanton is standardizing on Manhattan Associates, and DHL on JDA (recently rebranded as Blue Yonder).
Verdict:
This is truly a myth. SAP EWM is well-suited for a broad range of industries beyond 3PLs.
Myth 2 - EWM Functionality Falls Short of “Best of Breed” Warehouse Solutions
Let’s start by defining “best of breed” warehouse management solutions. According to the Gartner Magic Quadrant for Warehouse Management Systems (WMS), two clear leaders emerge: Manhattan Associates and JDA (Blue Yonder). Further behind in this category are WMS solutions from ERP vendors such as SAP, Oracle, and Infor.
Neither of the two “best of breed” vendors could be described as technology upstarts; Manhattan began in 1990 and JDA’s predecessor, Red Prairie, in 1975. This has given them ample time to develop broad and deep warehouse management solutions, including specific solutions for industries such as retail, manufacturing, pharmaceuticals, and 3PLs.
For example, retailers require efficient cross-docking functionality to move products quickly from inbound trailers across the warehouse to outbound trailers. Similarly, for pharmaceutical companies, track-and-trace capabilities for each separate drug pack are essential. “Best of breed” warehouse solutions excel in standalone, automated, and high-throughput environments where performance is critical.
In contrast, SAP EWM shines where there’s a need for deep integration between the warehouse, production, quality control, and transport. For instance, in a manufacturing operation supported by an inbound raw material warehouse, inbound quality control, raw material issues to production, and a finished goods warehouse, EWM integrated with SAP Production and Quality Modules is a superior solution.
Verdict:
While “best of breed” solutions lead in some aspects, SAP EWM offers significant advantages for businesses requiring strong integration between warehouse management and other business processes.
Myth 3 - Even with EWM, Companies Can Continue to Use SAP WM Into the Future
Since 2005, SAP has supported both EWM and Warehouse Management (WM), positioning EWM as the best solution for complex warehouses. However, this situation is changing.
Many companies are planning to migrate from their older SAP ECC6 solution to S/4HANA, SAP’s digital core for the future. S/4HANA comes packaged with EWM, rather than the older SAP Warehouse Management (WM) solution.
SAP has made minimal enhancements to WM over recent years, directing all new investments toward EWM. Importantly, SAP will no longer support WM beyond 2025. Companies still have time to weigh their options and assess whether EWM is the right choice, but the clock is ticking.
Verdict:
It’s a myth that companies can continue to use SAP WM indefinitely. SAP EWM is the way forward, and businesses must prepare for the transition by 2025.
Myth 4 - EWM Includes a New Mobile User Interface
In 2013, SAP launched its first Fiori apps for common SAP transactions. These apps could be used on desktops, tablets, and smartphones. This included Fiori apps for standard warehouse processes like goods receipt, goods issue, and cycle counting.
While these apps have simplified the user experience for functions such as expenses and approvals, they have not been as effective for mission-critical applications like warehouse management.
Although Fiori provides basic templates, customizing these templates is time-consuming. As a result, companies implementing EWM have often relied on older SAP technology, such as ITS Mobile, which is more than 15 years old. As a browser-based solution, ITS Mobile has limitations, including slower performance, no offline capabilities, and an inability to fully leverage mobile device features.
However, businesses can choose a modern “best of breed” mobile solution as the front-end for SAP EWM, such as Innovapptive’s mInventory. mInventory is a native application that includes all necessary SAP transactions and offers full offline capabilities, allowing operators to continue working without Wi-Fi or network access.
EWM provides complex functionality, but what warehouse operators need is a simple mobile user interface that delivers only the information necessary for the task at hand. Ultimately, the success of EWM depends on end-user adoption, and slow performance or a difficult-to-use solution could hinder that.
Verdict:
This is a myth. Companies have better alternatives, like mInventory, to provide the best EWM mobile user experience.
Conclusion:
By addressing these common myths, we hope to shed light on the true functionality and capabilities of SAP Extended Warehouse Management (EWM). Whether your organization is considering EWM for its complex warehouse operations or looking to upgrade from SAP WM to S/4HANA, it’s essential to evaluate the facts and dispel these myths. SAP EWM offers robust, integrated solutions for modern warehouse challenges, positioning it as a competitive choice in today’s market.
