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EWM WM Comparison PDF
EWM WM Comparison PDF
warehouse management
and extended warehouse
management solutions
Executive summary
Todays complex supply chain realities and difficult
economic conditions are making it more important than
ever for executives and managers to feel confident in
their decisions regarding IT investments. Understanding
the many options in selecting a suitable warehouse
management system (WMS) is critical for meeting both
present and future business requirements.
Introduction
SAP offers two different WMSs to its customers.
The SAP WM application was first introduced as a submodule of its materials management application within
the R/3 enterprise software releases. Functionality
enhancements were provided with each new release, up
to and including the current release of the enterprise
resource planning (ERP) software.
Volumes
The number of receipts, putaways, picks and transfers
within a warehouse must be measured in terms of order
lines per day or units per day. Are these volumes expected
to increase over time? Does seasonality cause fluctuations
in the supply chain at different times of the year? The
number of stock-keeping units (SKUs) is also a relevant
indicator of volume.
Facilities
The number of facilities, and the types of activities carried
out at each facility, needs to be considered.
The emphasis on pick-and-pack activity is typically
much higher at distribution center facilities than at
manufacturing sites, for example, while manufacturing
WM
EWM
Additional warehouse
structures
EWM
Stock management
Stock types
Units of measure
Batch management
Serialized materials
Hazardous materials
Support of hazardous materials is provided Hazardous materials are also supported in EWM
Catch weight
management
EWM
Inbound processing
Putaway strategies
One putaway strategy available per storage Same strategies are supported
type:
No limit on the number of storage types, sections
Bulk storage
and bin types in bin searches
Open storage
Fixed bins
Complex (multi-step)
inbound processing
Not supported
Quality inspection
Exception handling in
putaway
EWM
Outbound processing
Picking strategies
Not supported
2-step picking
Packing
Proof of delivery
Kit-to-order
Not supported
EWM
Internal processing
Warehouse stock
optimization
Physical inventory
Cycle-counting
Continuous inventory
Replenishment
Can initiate fixed bin replenishment based Can initiate fixed bin replenishments using
on material-specific min/max levels and bin scheduled jobs or based on picking requirements
assignments
Also possible to trigger (and execute) bin
Can also initiate replenishment based on
replenishment directly while picking stock from
picking requirements
fixed bins. Multiple fixed bins per material are
supported
Kit-to-stock
Not supported
Complex (multi-step)
internal processing
Not supported
Crate parts
Manual staging
Production integration
Material staging to
production areas
Possible to use Kanban technique to supply Also possible to use Kanban in material staging
materials to production areas
Same capabilities as in WM
All receipts are managed using inbound deliveries
into the EWM warehouse
EWM
Cross-process functionality
Radio frequency (RF)
support
Supported
Labor management
Not supported
Radio frequency
identification (RFID)
Supported
Yard management
Not supported
Opportunistic crossdocking
Interleaving
EWM
Two-step confirmation
Quantity exceptions
Supported
Supported
Reverse logistics
Supported
Enhanced customer returns process can be
activated via integration with SAP Customer
Relationship Management (CRM)
Includes integration with advanced returns
management
Value-added services
(VAS)
Repacking, tagging and other value-added VAS steps can be integrated seamlessly into
steps can be performed at a work center or inbound, internal and outbound processes
during transfer order confirmation
Supported as of R/3 release 4.7 with
Extension Set 2.0
Many reports available in ABAP List Viewer Advanced analytics, dashboards and reporting are
(ALV) format to allow advanced sorting
possible using standard SAP Business Intelligence
and statistical functions
(BI) content
Logistics information system reports also
available for summarized and detailed
analysis of historical data
Warehouse activity monitor gives manager
a view of open/overdue warehouse
activities
RF monitor allows managers to view and
reorganize activities and assignments to
users
EWM
Graphical warehouse
layout
Not supported
Shipping cockpit
General
Centralized/
decentralized options
Transportation planning
Archiving
Supported
Supported
Authorizations
Costs
Operational complexity
Complex material flows, such as the use of special
equipment that cannot physically make certain material
moves efficiently, but instead uses pick and drop
locations or other operational complexities, such as
pallet deconsolidation and other warehouse work center
operations, such as packing and repacking, are handled
much better in SCM EWM.
Value-added services
Strong functionality for value-added services is offered
within SCM EWM. This includes pricing, labeling,
packaging and hazardous materials notes on shipping
documents. The higher the level of services offered, the
better the fit with these solutions.
Summary
When determining which option is the right fit for your
operations, it is important to consider that EWM is more
likely to benefit warehouse operations with high levels
of distribution activity, volume and operation complexity.
Companies that decide to implement EWM and its
inherent capabilities in labor management and resource
management could gain the benefits of an accelerated
supply chain and improved customer service.
Authors
Doug Scott
Kyle Sorensen
ey.com