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Deployment options for EWM on

SAP S/4HANA
09. March 2018

Deployment options for


EWM (Extended Warehouse
Management) on SAP
S/4HANA®
SAP EWM is tuned for the Digital era. What are
the deployment options for SAP EWM to provide
a multitude of business benefits?

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EWM (Extended commonly referred to as SAP
S/4HANA Supply chain management
illustration shows a quick difference
in the two versions. The important

Warehouse for Extended Warehouse


Management or simply ‘Embedded
point to note is that the Basic
Embedded EWM functionality is

Management) is EWM’ as the basic warehouse


functionality and SAP EWM are
included in the license cost of SAP
S/4HANA. To avail functionalities

SAP’s strategic running on a common code,


embedded within SAP S/4HANA.
bundled within the Advanced
Embedded EWM, companies need to
answer to the This is a default offering as part of
incur additional license costs.

challenges of SAP S/4HANA 1610. SAP WM (the


classical WMS by SAP) also exists as
The key advantages of Embedded
EWM are:
increasingly a part of S/4 HANA, but is
scheduled to be phased out by
complex 2025.
Reduced data replication
warehouse Embedded EWM has two versions,
Companies can choose from. For the Business Partner data, Material
operations. purpose of this document, let’s call Master Data, Batch Master Data
it the Basic Embedded EWM and does not need to be replicated as it
Advanced Embedded EWM. Basic exists within SAP S/4HANA itself.
What are the deployment Embedded EWM is not only targeted CIF (Core Interface) is not required
options for EWM with SAP to be a replacement for SAP WM, to be used anymore.
S/4HANA? but also offers additional
Clients can choose between two functionalities. Its key features Transactional data like Purchase
deployment options broadly. They include Layout and Process oriented Order data or production order data
can select either an embedded EWM Warehouse Management, advanced can be read directly and this
solution or a decentralized EWM. reporting capabilities and Resource eliminates the usage of an Expected
Management. Goods Receipt (EGR) Document.
Embedded EWM
With the 1610 release, SAP EWM For additional optimization, Elimination of the use of additional
was offered as an embedded companies should opt for Advanced documents like outbound delivery
application component. It is Embedded EWM. The below

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Deployment options for EWM on SAP S/4HANA

requests, inbound delivery requests What is the future landscape for The next SAP S/4HANA release is
and posting change requests. SAP EWM? aiming at more SAP Fiori® apps,
The future of SAP EWM is guided by focusing on exchanging warehouse
two principles – including maximum events with IOT applications and
functionality of decentralized EWM adding more functionality to support
in Embedded EWM and Enhancing JIT, KANBAN.
the EWM core. Since the focus of
Solution of the future this article is on Deployment
strategies, let’s focus on the first
This is the strategic tool of SAP and principle.
has a well-established product road
map, focusing on enhanced product
With every Release,
developments and releases. SAP
aims to include all functionalities of SAP aims to enhance
decentralized EWM in Embedded
the functionality of
EWM.
Embedded EWM and
Decentralized EWM
bridge the gap
Decentralized EWM is an approach
available since the 1511 release of between
SAP S/4HANA. In this deployment
decentralized EWM
option, SAP EWM is deployed on a
separate server platform and and Embedded EWM.
connected to SAP S/4 HANA using
SAP’s strategic goal
Remote Function calls and CIF. EWM
is a part of the SCM server or is is to have complete
deployed on SAP Netweaver. The
functionality of the
key advantages of ecentralized EWM
are: decentralized EWM
 Ability to handle volumes of
system in Embedded
transactions and multiple EWM. The below
warehouses
 Better able to support Material
illustration shows
Flow systems the journey of
 Can keep running even if the
ERP system goes down Embedded EWM so
 Both systems can be upgraded far and the planned
without impacting each other
future innovations.

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Deployment options for EWM on SAP S/4HANA

How to decide on a deployment with the level of automation subscription based, but the Hybrid
strategy? planned. cloud allows more flexibility to have
SAP S/4HANA gives you the option custom developments.
to have different deployment The downfall of choosing an
strategies for different warehouses Embedded EWM strategy is that in Some key considerations for
at the same client. It is technically case the SAP system is down, the companies planning the Cloud
possible to have some few warehouse operations also cannot journey for their Warehouse
warehouses running on Embedded run. However, with a decentralized Management solutions are:
EWM, some on LE-WM and others deployment, the warehouse
on a decentralized EWM server. This operations can be continued even if Data security: It is important that
gives clients a flexibility to choose the ERP system is down. The other the ERP data is secured on the
an appropriate deployment option. upside of a decentralized cloud. Personnel Data, Information
deployment is that both ERP and on Patents etc. cannot be
EWM can be upgraded compromised with. Hence, before
independently. If the Embedded migrating to the Cloud, it is
EWM option is chosen, companies important to evaluate the risks
need to ensure that their existing IT associated with Data security.
infrastructure can handle it.
Performance: The complexity and
How to design a Cloud strategy throughput of your warehouse
for EWM? determine if you should foray into
Traditionally, companies have used the Cloud. A Cloud is a shared
an On-Premise deployment strategy platform which may not be the most
for ERP Implementations. On- efficient choice for highly complex
Premise deployments require operations. Further, the governance
significant effort, as companies not is shared with a cloud platform.
only need to invest in IT Performance lapses may not be
infrastructure but also invest in monitored as closely as on an On-
designing business processes. SAP Premise deployment.
has challenged this deployment
approach and led innovations with Customizations: Deployments on
the SAP S/4HANA Cloud. Companies Cloud restrict the amount of
can benefit greatly by deploying customizations. This makes the
High warehouse throughput and
their ERP in the cloud. Cloud solution more efficient and rich with
seasonal peaks in warehouse
deployments have significant and Industry best practices, but reduces
transactions tend to hint towards
quick effect on the bottom line as the flexibility. If your warehouse
using a decentralized EWM
capital expenditure is reduced. By has specific processes which you
deployment strategy. A
using the Cloud, companies can have mastered over a period of
decentralized EWM system is
leverage on pre-built configurations time, an On-Premise strategy is
capable of handling a higher volume
and industry best practices. more suited. However, for standard
of transactions and since this is on a
Companies can opt for a Cloud processes, a cloud strategy is
different instance, system
versus a Hybrid Cloud. Both are beneficial.
performance of other processes is
not impacted. Other factors like the
complexity of enterprise structure
also have an impact on the
deployment option chosen.

An embedded EWM system can


reduce the total cost of ownership
as it simplifies the IT landscape. A
decentralized system is more suited
to support high performing material
flow systems and other such
automation. Warehouse managers
and CIOs should choose a
deployment strategy, which fits in

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Deployment options for EWM on SAP S/4HANA

Conclusion Cloud implementations reduce the How can Deloitte help?


With SAP S/4HANA and SAP HANA® total cost of ownership and total With its technical expertise,
Enterprise Cloud, SAP opens a new cost of investment by significantly business process knowledge and
world of possibilities. Choosing the simplifying the IT landscape. global network, Deloitte is capable
right deployment strategy is crucial However, it is critical to combine of providing solutions for all the
to realize the complete potential of both, technology and business challenges you face with rapidly
the Digital Core. Companies need to trends. Business trends like changing technology.
design their deployment strategies changing business models, patented
by evaluating the complexity of processes built over time, core Deloitte is also pleased to have
warehouses, warehouse throughput, competencies may restrict the use received a 2017 SAP® Pinnacle
future automation plans and most of the Cloud. Warehouses having Award as the SAP S/4HANA®
importantly, with the vision of standard processes and requiring Partner of the Year–Large Enterprise
digital transformation. The only stock control, can be hosted on Companies, which recognizes its
illustration below summarizes the the cloud and choose Basic outstanding contributions working
points discussed in this paper. Embedded EWM. As the complexity with SAP. With more than 18,200
of warehouse operations increase, practitioners dedicated to SAP
The deployment strategy decision the option of hosting EWM on the solutions in its global network,
for EWM should be guided by two public cloud becomes less viable as Deloitte has served more than
fundamentals: complex warehouses usually need a 3,500 clients, assisting them in their
lot of customization, quicker efforts not only to efficiently
 Cloud approach or no Cloud response times and constant implement SAP solutions, but
approach performance monitoring. equally important, to realize
 Operations complexity business value from those
investments. How can we assist you
on this topic?

 Analyze ERP needs and


develop a road map to enable
you to be ‘Digitally’ equipped
 Provide Process consulting in
all areas of Warehousing
 Help you make better
decisions for automating your
warehouses
 Consult you on choosing the
right EWM deployment
strategy for your warehouse
 Assist you with a migration
strategy from SAP WM to EWM
 Implement SAP EWM and
provide Application
Management Services globally
 Analyze and plan your journey
to Cloud

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Deployment options for EWM on SAP S/4HANA

Contact us:

Theophilos Kotzaeroglu Ragini Rastogi Thorsten Risse


Capability Lead SAP Logistic Senior Consultant Manager
Solutions & Transportation Deloitte Consutling Germany Deloitte Consulting Germany
Deloitte Consulting Germany + 49 151 5800 5375 + 49 151 5807 1607
+ 49 151 5807 2314 ragrastogi@deloitte.com trisse@deloitte.com
tkotzaeroglu@deloitte.com

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