Week 1 All Slides

Week 1: Introduction to TM and EWM in SAP S/4HANA
Unit 1: SAP S/4HANA Transformation:

Why Change to TM/EWM?
SAP S/4HANA transformation: Why change to TM/EWM?
New reality in logistics
Operate supplier networks to hedge risk and flexibly engage external

Supply chain resilience resources where required
Supply chain efficiency Optimize the flow of goods; increase asset and warehouse utilization
& Logistics 4.0 investing in advanced automation
Supply chain integrity Create a digital twin of fulfillment and logistics processing building on
and transparency asset insights and uniquely identified products
Delightful delivery Fulfill the promise of omnichannel commerce with state-of-the-art logistics
experience execution and customer service
Address sustainability goals by providing decision support in supply chain

Sustainability planning & execution complemented by emissions reporting and analytics
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

SAP Digital Supply Chain
LOGISTICS

LOGISTICS
Solution overview
Intelligent Insights
SAP Analytics Cloud SAP Business Network for Logistics
Visualization & Dashboards Intelligent & Predictive

Integrated analytics & Planning Logistics Monitoring
Simulation & Forecast
Situation Recognition Through
Supply Chain Situation Room
Track & Trace
Industry Cloud Intelligent Suite Networks
SAP & Partner Solutions SAP S/4HANA

Freight tender
Time slot management
IndividualSimple Robot Integration
added Simple
SAP Warehouse Robotics
End-to-End mapping of Shipment tracking
value through networking

Freight billing
with
Holistic Empties Mgmt operational logistics processes Batch traceability
industry-specific SAP your partner
SAP Returnable Packaging Mgmt
Business Network for Logistics
solutions
Yard for B2C & B2B Warehouse
Transport
in the
Predictive and Real-Time
Visibility Platform – Shippeo
Management Management Logistics Exchange of information
Yard – Transport – Warehouse Supply

on inventory,Chain
Forecasts,
SAP Yard Logistics SAP Transportation SAP Extended Purchase orders
Last Mile Delivery Fulfilment
OneRail
Management Warehouse Management
Shipping notif. creation
SAP Ariba
More Solutions in SAP Store
Platform as a Service
SAP Business Technology Platform
Data management (Big Data)

Technology
Artificial intelligence
for innovative solutions & integration
Integration Automation Application development

Future logistics – Advanced Shipping and Receiving
Carrier
Supplier Customer
OUT IN
ASN (Consignment)
ASN (Consignment)
Consignments
ASN (Consignment)
▪ New logistics execution in SAP S/4HANA on harmonized objects

▪ Harmonized shipping and receiving
▪ Better alignment with industry standards e.g. EDIFACT Future Logistics
▪ Support of new functions (e.g. multi-pick/multi-drop)
▪ Enablement of new scenarios (modular TM)
Benefits of Advanced Shipping and Receiving
Cross-warehouse loading/unloading
▪ Load/unload from IM, STRM, and EWM
managed warehouses on the same truck:
possible to assign different warehouse systems
into one loading point
▪ Faster processing times
Easier integration with business partners Carrier

▪ Full EDI support for consignment and bordero Supplier Customer
▪ Automatic creation of entire truck load, including
shipment
▪ Better error handling
Multi-pick/multi-drop
▪ Same truck able to unload and load at the
same location during a multi-stop route with
only one business object
▪ Better usage of transport capacity, lower cost,
lower CO2 footprint Pick Drop Pick Drop

Key takeaways
SAP Extended Warehouse Management and SAP

Transportation Management are the new logistics core in
SAP S/4HANA
Advanced Shipping and Receiving, integrating SAP TM

and SAP EWM, helps you to seamlessly integrate
business processes and achieve E2E process
transparency to build a digital and resilient supply chain
State of the art functionalities empower you to build a

strong and sustainable logistics platform, which sets the
foundation for future innovation and business
transformations

Thank you.
Contact information:
open@sap.com
Follow all of SAP
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Unit 2: Overview and History of TM
Overview and history of TM
Adoption and usage
Customers Countries
SAP NetWeaver
1500+ 50+
Customers Live Industries
SAP S/4HANA
Ranjinii Thiyagarajan
350+ 20+
Customers Live SAP Top Industry
S/4HANA Cloud (EX)
Consumer
60+ products
20% 9% 8% 7% 5%
Consumer Products Cargo Transportation Chemicals Retail Automotive
& LSP
History of TM
Nov 2014 May 2015 Nov 2016 Sep 2017 Nov 2017 Sep 2018 Nov 2018
SAP TM 9.2 SAP TM 9.3 SAP TM 9.4 SAP TM 9.5 SAP TM 9.6
Truck Logistic Service LSP/ LSP/ Shippers/
Shippers Providers/ Shippers Shippers LSP
Shippers
SAP S/4HANA SAP S/4HANA SAP S/4HANA

1709 1809 1909 – 2022
Shippers Shippers/LSP Shippers/LSP

Solution overview
Ranjinii Thiyagarajan
Strategic Freight Order Transportation Transportation Freight Costing Analytics and

Management Management Planning Execution and Settlement Reporting

Strategic freight management
Strategic Freight
Management
Business Benefits
▪ Strategic Freight ▪ Optimal procurement of freight capacity for
Procurement multiple modes
▪ Contract Negotiation ▪ Save on transportation budget using
▪ Capacity Management sophisticated freight procurement solution
▪ Measure compliance on agreements

Order management
Order
Management
▪ Integrated ERP
Transportation Demand Business Benefits
▪ Personal Worklists ▪ Improve the efficiency of order and process management
▪ Sales & Stock Transfer ▪ Generate dynamically optimized routing proposals based
Order Scheduling on business rules
▪ Schedule Management ▪ Minimize freight costs
▪ Order Lifecycle ▪ Enhance customer service
Management & Visibility

Transportation planning
Transportation
Planning
Business Benefits
▪ Manual and automated ▪ Improve resource utilization and carrier
planning and dispatching selection to reduce transportation costs
▪ Routing, resource, and ▪ Handle huge volumes of data thanks to
carrier selection automated planning processes
▪ Order tendering ▪ On-the-fly drag and drop planning
▪ Dangerous goods ▪ Select the most cost-effective modality easily
management ▪ Combine decentralized local business views
▪ Planning of parcels to identify synergies
▪ Achieve on-time delivery

Transportation execution
Transportation
Execution
▪ Extended warehouse integration for execution

Business Benefits
▪ Logistics execution
▪ Improve cargo handling
▪ Achieve faster, more dynamic and ▪ Execution monitoring and event tracking
responsive logistics execution ▪ Capacity monitoring
▪ Reduce shipping costs with a streamlined ▪ Transportation print documents
process and maximized efficiency
▪ Trade regulation compliance (using SAP GTS)

Freight costing and settlement
Freight Costing
and Settlement
▪ Freight agreement
Business Benefits management
▪ Improve accuracy and transparency with automatic ▪ Charge and tariff management
transportation cost calculation
▪ Integration with SAP S/4HANA
▪ Integrate transportation management and billing
▪ Transportation charge
▪ Increase invoice accuracy
calculation
▪ Add freight cost to product cost

Analytics and reporting
Analytics and
Reporting
▪ Dashboards for the

SAP HANA platform
Business Benefits
▪ Overview pages with
▪ Support real-time, data-driven KPIs to manage your
decision making operational business
▪ Gain in-depth business insights
▪ Flexible reporting
▪ Reduce data complexity
▪ Real-time data-based
reporting

Shipper vs. freight forwarder/logistics service provider
openSAP
Shipper Freight Forwarder/Logistics Service Provider

Freight forwarders are supposed to be the experts in shipping and
Shippers have to manage the transportation of transportation and thus take the onus from “shippers” to move their
purchased or traded goods and distribute them in an commodities to the desired destination. Freight forwarding is all about
efficient way to the customers. the flow of international trade. Freight forwarders are the party who
make sure that internationally traded goods move from their origin to
their destination:
Shippers can subcontract the physical transportation ▪ At the right place,
to a freight forwarder/ logistics service provider. ▪ At the right time,
▪ In good order and condition,
▪ As economically as possible

High level document flow in TM SAP S/4HANA embedded
SAP S/4HANA Core
Sales Order / Forwarding
Delivery
Purchase Order Quotation
Order Forwarding
Management Order
Freight Unit Building

Freight Unit
Capacities
Planning Planning
Transportation
Network
Freight Order /
Execution & Subcontracting
Freight Booking
Subcontracting
Agreement
Forwarding
Freight Settlement
Calculation Settlement
Document
Sheet Document
Charges &
Settlement Rate Table
SAP S/4HANA
Scale Accounting Document
Core

Key takeaways
TM offers capabilities for the following areas:

▪ Strategic freight management
▪ Order management
▪ Transportation planning
▪ Transportation execution
▪ Freight cost and settlement
▪ Analytics and reporting
TM is used by:
▪ mainly shippers to transport their goods
(focus of the openSAP course)
▪ Logistics service providers to manage transport
services

Further reading
SAP Note 3232331 – SAP S/4HANA 2022 Supply Chain for

Transportation Management – Release information
SAP Note 3083725 – SAP S/4HANA 2021 Supply Chain for

Transportation Management – Release information
Transportation Management community:
https://community.sap.com/topics/transportation-management
What’s in a name? SAP S/4HANA Transportation Management
https://blogs.sap.com/2023/05/11/whats-in-a-name-sap-s-4hana-
transportation-management/

Thank you.
open@sap.com
Follow all of SAP

warranty.
Unit 3: Objects and Business Processes in TM:
Order Management and Planning
Objects and business processes in TM: order management and planning
SAP S/4HANA Core
Sales Order /
Delivery
Purchase Order
Order
Management

Freight Unit
Capacities
Planning Planning
Transportation
Network
Freight Order /
Freight Booking
Subcontracting
Agreement
Freight Settlement
Calculation
Document
Sheet
Charges &
SAP S/4HANA
Core

Integration scenario – Sales order based in TM SAP S/4HANA embedded
SAP TM
SAP S/4HANA Core Scenario characteristics:
Sales Order,
Purchase Order,
▪ Long-term planning
Freight Unit SD/MM Scheduling Agreement, possible based on sales
Stock Transfer Order order requirements
▪ Delivery creation based
Perform Planning
Freight unit Creation based on transportation
will be on order & SAP planning
consumed Freight Order S/4HANA Core
settings
Inbound Delivery
Trigger Delivery Proposal Outbound Delivery
Freight Unit

Integration scenario – Delivery based in TM SAP S/4HANA embedded
SAP TM
SAP S/4HANA Core Scenario characteristics:
Sales Order,
Purchase Order,
▪ Short-term planning
SD/MM Scheduling Agreement, based on delivery
Stock Transfer Order requirement
▪ Transportation planning
based on delivery
Inbound Delivery
Outbound Delivery
Freight Unit

High level document flow in TM SAP S/4HANA standalone
SAP TM S/4 Core

Sales Order,
Order-Based
Webservice Purchase Order,
Freight Unit Transportation
SD/MM Scheduling Agreement,
Requirement (OTR)
Stock Transfer Order*
Perform Planning Creation

based on
Freight order &
Unit will be S/4 Core
Freight Order
consumed settings
Webservice Inbound Delivery

Trigger Delivery Proposal Outbound Delivery
Delivery-Based
Freight Unit Transportation Webservice
Requirement (DTR)
…
Master data integration
Standalone Plant
Shipping Point Location*
Via Data
BP Role Customer Replication Business Partner
Framework**
BP Role Vendor/Carrier Product
Product
Plant Location*
Embedded
Shipping Point*
BP Role Customer
BP Role Vendor/Carrier
Product
* Shipping-relevant locations (e.g. port, hubs, etc.) are created in TM transactions

Locations for Shipping Point & Business Partner are created via report /SAPAPO/CREATE_LOCATION in both deployment options
** DRF is used for master data migration to SAP S/4HANA TM, Core Interface (CIF) is used for master data migration to Business Suite TM

SAP S/4HANA Core
Sales Order /
Delivery
Purchase Order
Order
Management

Freight Unit
Capacities
Planning Planning
Transportation
Network
Freight Order /
Freight Booking
Subcontracting
Agreement
Freight Settlement
Calculation
Document
Sheet
Charges &
SAP S/4HANA
Core

High level document flow in planning
Order Management Planning

Freight
Order/ Execution /
Transport Freight Freight Subcontracting
Requirement Unit Booking
FU
FO
TRQ FU
FU FO

Freight unit building rule
FUBR
Hard Constraints
(Locations,
Dates)
Freight Unit
Incompatibilities
Transportation Requirements
Freight Unit
(e.g. Sales Order, Purchase Order,
Inbound/Outbound Delivery)
Split Quantities
Freight Unit
Package Builder

Freight unit building rule – Example
Purchase Order Freight Unit 1

Destination Location CUST00-16
Ship-To Address CUST00-16 Pick-Up Date Nov 01
Item Material Date/Quantity Po 10 PROD01 20 PC

Po 20 PROD02 20 PC
Po 10 PROD01 20 PC Freight Unit
Building Rule
Schedule line 1 Nov 01 20 PC
Freight Unit 2
Po 20 PROD02 50 PC Destination Location CUST00-16
Pick-Up Date Jan 01
Schedule line 1 Nov 01 20 PC
Schedule line 2 Jan 01 30 PC

Po 10 PROD02 30 PC

Planning capabilities
Where can I plan?
Transportation
Reports
Cockpit
Freight Unit Freight Unit External Planning Business Documents
via EDI like FU/FO
Freight Unit Freight Unit Personal Object
Worklist
Manual Automatic
Via Selection/ Transportation Planning
Drag & Drop Map GANTT Optimizer
Insertion Proposal Strategies
Freight Transportation
Order Unit
What will be planned? Freight What is needed?
Load Booking Transportation Network Selection Profile
Routing
Consolidation Master Data What do I plan?
Load Planning Profile Page Layout
Scheduling
Planning How do I plan? How does it look?
Transportation cockpit
Transportation
demand
▪ Manage freight units
Supporting data
▪ Create building
strategies ▪ Freight execution status
▪ Carrier ranking
▪ Freight charges etc.
Planning
constraints
▪ Availability and
capacity Freight documents
▪ Loading / unloading ▪ Freight orders & units
durations
▪ Trailer documents & rail
▪ Incompatibilities
▪ Ocean & air bookings
▪ Driver constraints
Plan resources & schedules Map-based visualization & planning

▪ Vehicles, trailers, containers, compartments, railcars ▪ Gantt chart
▪ Land, ocean, air ▪ Map views
▪ Schedule transportation ▪ 3rd party GIS integration

Master data – Transportation network
Locations GB → GB
GER → GER
Transshipment Locations
Transportation Zones GER → NL
Customer 1
Transportation Lanes
Schedules Shipping Point 1
Resources Port 2
Port 1 Shipping Point 2
Default Route Transportation
Zone GB
Transportation
Distribution Zone GER
Center
NL → NL Transportation
Zone NL

Key takeaways
TM can be integrated with SAP S/4HANA based on:

▪ Orders like sales orders or SD scheduling agreements
▪ Deliveries
Key objects in TM for planning are:

▪ Freight units
▪ Freight orders/bookings
▪ Transportation units
Different planning capabilities are available e.g.:

▪ Manual
▪ Optimizer-based
Relevant master data for order management & planning are:

▪ SAP S/4HANA master data like business partners, products, etc.
▪ Transportation network containing lanes, zones, schedules, resources, etc.
Further reading
Available Blogs
▪ Monday Knowledge Snippet
▪ Tuesday Knowledge Snippet
▪ Effective Optimization Series
SAP Note 2190523 – FAQ for TM Planning & Network

SAP Note 2574435 – FAQ for TM embedded in SAP S/4HANA
SAP Note 1588450 – FAQ for ERP – TM Logistics integration

Master data – Transportation network – Descriptions
Location: A logical or physical place in which products or resources are managed on a quantity basis e.g. shipping points, hubs,
ports, customer.
Transshipment Location: A location that is used for unloading goods from one vehicle resource and loading it onto another vehicle
resource during the transportation process.
Transportation Zone: An object that groups a number of locations. Grouping can be done via direct assignment, regions, postal
codes.
Transportation Lane: A relationship between two locations, two transportation zones, or a combination of locations and zones that
expresses the direct reachability of the locations or of all locations within the zones for a specific means of transport.
Schedule defines a sequence of stops such as ports, airports, or gateways that is valid for a specific period of time. Ships, trucks, or
airplanes can move goods at recurring times along the whole sequence or any part of it. The movement of goods depends on the
transportation duration between each of the stops as well as the cut-off times and the length of stay at each stop.
Resources: Resources play a central role in planning and execution within SAP Transportation Management. Resource data is
relevant to the planning of order dates taking into account working times and the available capacities of the resources. Resources,
in conjunction with booking, offer the capacity needed to perform transportation activities on freight units, such as transportation,
loading, and unloading activities.
Default Route defines a sequence of transshipment locations. For each default route you can specify the transportation mode,
carrier, schedule, and so on, for each transportation stage. The system considers default routes as possible routes for a shipment
between two locations.
Thank you.
open@sap.com
Follow all of SAP

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Unit 4: Objects and Business Processes in TM:
Execution and Freight Settlement
Objects and business processes in TM: execution and freight settlement
SAP S/4HANA Core
Sales Order /
Delivery
Purchase Order
Order
Management

Freight Unit
Capacities
Planning Planning
Transportation
Network
Freight Order /
Freight Booking
Subcontracting
Agreement
Freight Settlement
Calculation
Document
Sheet
Charges &
SAP S/4HANA
Core

Freight order/booking
Business Partner Items

▪ Carrier, shipper, consignee ▪ Items of the freight order – Freight units → Products
General Data
▪ General information (document type,
description, schedule, means of transport)
▪ Resource data (information about vehicle)
▪ Transportation information (assigned carrier, Transportation Stages
distance, duration, number of stops) ▪ Information about the individual transportation
▪ Cargo information (weight, quantity, stages – source and destination location, durations,
utilization) and distances etc.
▪ Source and destination location of the Status and Blocking Information
shipment
▪ Comparable to transportation status in ERP
▪ Organizational data (planning and execution
(“Ready for Executionˮ, “In Executionˮ)
organization, purchasing organization, etc.)
▪ Planning and execution blocks
Transportation Charges
▪ Charge calculation and cost distribution

Carrier selection
Rules-based carrier determination

▪ Freight agreements
▪ Costs
▪ Lane allocations
▪ Business share
Multi-variant tendering
▪ Peer-to-peer RFQ
▪ Broadcast RFQ
▪ Direct freight order assignment
Flexible collaboration
▪ B2B, email, SMS communication
▪ Authorization-based RFQ data viewing and Carrier collaboration can be done with SAP Business Network for Logistics
processing
▪ Real-time tendering process, status monitor,
and dynamic change controller

Carrier selection – Detailed process
Determine Possible Carriers
Check Incompatibilities
Determine Priority/Costs/
Internal Costs
Create Ranking List
Assignment of Freight Orders

Automatic Manual Tendering
Assign Carrier to Freight

Order
Output management
Standard transportation document templates:

▪ Comprehensive set of preconfigured, standard documents:
– Including product, export, dangerous goods, and
transportation data
▪ For road, sea, and air transportation:
– Road waybill (Europe and United States), house air
waybill, and house sea BL
– Shipping manifest
– Transportation labels
– FIATA forwarding instructions
▪ For freight settlement:
– Supplier freight invoice request
– Customer freight invoice request
Flexible output and lifecycle management
▪ Automatic / manual printing, email, fax, B2B communication
▪ Full lifecycle mgmt (workflow, alerts, status tracking etc.)
Execution tracking
▪ Events e.g. arrival, departure, etc.

▪ Event types e.g. expected, actual,
unexpected, unreported
▪ Event handler lifecycle for e.g. freight
order, transportation unit
Tracking can be done in the following way:

▪ via TM direct
▪ Via Event Management (SAP Business
Suite)
▪ Via SAP Business Network for Logistics
SAP S/4HANA Core
Sales Order /
Delivery
Purchase Order
Order
Management

Freight Unit
Capacities
Planning Planning
Transportation
Network
Freight Order /
Freight Booking
Subcontracting
Agreement
Freight Settlement
Calculation
Document
Sheet
Charges &
SAP S/4HANA
Core

Settlement process – Detailed process in TM SAP S/4HANA embedded
SAP S/4HANA SAP S/4HANA TM

Core Invoice Verification
Service Entry
Sheet / Invoice
Purchase Purchase Order
Freight Freight Freight
/Sales
Unit Order Settlement
Order
Material Settlement
Valuation
Document
(MM)
Cost distribution to the corresponding accounts

Settlement process – Detailed process in TM SAP S/4HANA standalone
SAP SAP S/4HANA TM

S/4HANA Via Webservice Invoice Verification
Core Service Entry
Sheet / Invoice
Purchase Transp. Purchase Order
Freight Freight Freight
/Sales Require-
Unit Order Settlement
Order ment
Material Settlement
Valuation
Document
(MM)
Cost distribution to the corresponding accounts

Master data for settlement
Involved parties, validity

Freight/Forwarding Agreement
dates, currency, attachments
1:N Region, Zone, Source-Destination etc.
Source-destination,
Charge Calculation Sheet
transportation mode etc.
1:N Conditions
Charge type, calculation base,

Charge Items
validity etc.
1:1 Rate Tables

Parameters
Pro Ratio
Fix Rate
Algorithm / Indexes
External Rate

Charge calculation – High level process
Logistical data like

Freight Order/ distance, stop off,
Booking etc.
Determine based on
purchase Charge Freight cost Freight Order/
Booking
organization, carrier, calculation
and conditions
Freight Calculation sheet,

Agreement rates, etc.
1. Determine freight agreement 2. Calculate charges with 3. Return freight cost

and calculation sheet based on freight agreement and
purchase organization, carrier logistical data from freight
and conditions order/booking
Cost distribution – High level process
Freight Order/
Booking
Total Cost: €1,000 Total Weight: 1,000 Kg Total Cost: €1,000
Total Weight: 1,000 Kg Item 10: 300 Kg 30 % Item 10: 300 Kg 300 € Sales Order 1
Item 10: 300 Kg Sales Order 1 Item 20: 700 Kg 70 % Item 20: 700 Kg 700 € Sales Order 2
Item 20: 700 Kg Sales Order 2
1. Determine freight order 2. Determine distribution 3. Determine cost per item 4. Post on different
and needed information rule and percentage per cost objects
item

Key takeaways
TM offers different capabilities for subcontracting, like carrier

selection and tendering
Output management enables communication, email, or prints

with stakeholders in TM
TM is integrated to SAP Business Network for Logistics for:

▪ Freight collaboration
▪ Event tracking
▪ Invoicing
Freight settlement capabilities support several functionalities

e.g.:
▪ Calculation of charges and distribution of cost in freight documents
▪ Integration to SAP S/4HANA financial modules for further
processing

Further reading
Output Management Guide – Configuration Guide

https://help.sap.com/doc/PRODUCTION/ffab464f0c654de48
dccaaca2d373374/9.6.2/en-
US/loioc4af8a260e3741788e0b86694e646aff_00024390.pdf
SAP Business Network for Logistics

https://help.sap.com/docs/SAP_LOGISTICS_BUSINESS_
NETWORK?locale=en-US

Thank you.
open@sap.com
Follow all of SAP

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Unit 5: Overview and History of EWM
Overview and history of EWM
SAP EWM customers worldwide
Customers Countries
2500+ 65+
Customers Live Industries
SAP S/4HANA
1100+ 24
Customers Live Customers using MFS
SAP S/4HANA Cloud
105+ 350+
17% 12% 10% 9% 8%

Consumer Products Automotive Mill Prod. & Mining Industrial Machinery Retail
& Components
More then 30 years experience…
1991 2002 2015 2016 2017 2018 2023
ERP-WM / LES SCM-EWM SAP S/4HANA EWM

Warehouse Management Extended Warehouse
Extended Management
Warehouse Management Extended Warehouse Management
SAP Extended Warehouse Management

▪ Mature solution with comprehensive features
▪ Support of latest technologies through SAP S/4HANA
▪ Real-time business processes and analytics with SAP HANA
▪ Award-winning design with SAP Fiori
▪ Clear roadmap to solve future logistics challenges

From SAP EWM 9.5 until now
Using Distribution JIT/JIS Kanban Integration to QM Defects Plant Maintenance Synchronous

Equipment in Integration in & QM Notifications (PM) Integration Postings
Production Supply Production Supply
SAP
EWM
9.5
New SAP Fiori Apps e.g. MES Integration Advanced Shipping Unified Package
Packing; WT confirmation and Receiving Builder in EWM

SAP Extended Warehouse Management – Overview
Inbound Processing Storage and Operations Outbound Processing
Analytics • Transit warehousing • Labor management • Cross-docking • Compliance

Native technologies • Implementation tools

Optimized and integrated warehouse processes
Inbound Outbound
▪ Advanced Shipping Notification ▪ Wave Management

▪ Integrated Quality Management ▪ Order and Packaging Planning
▪ Slotting & Rearrangement ▪ Mobile Picking & Pick by Voice
▪ Cross-Docking ▪ Order Consolidation & Packing
▪ Efficient Returns Processing ▪ Export Processing
▪ Customs Clearance ▪ System Guided Loading
Internal
▪ Permanent Physical Inventory &

Replenishment
▪ Planned & Predictive Replenishment
▪ Ressource Management
▪ Forklift Guidance System
▪ Warehouse Billing
▪ Labor Management
Integration Distribution Logistics
▪ Advanced Shipping & Receiving ▪ High Volume Processing

▪ Courier-Express-Parcel-/ & ▪ Late Order Changes
Transportation Management Integration ▪ Kit-to-Order & Value Added Services
▪ ME Integration ▪ Export Processing
▪ SAP Global Batch Traceability ▪ TMS Integration – Packaging Planning
Integration and Load Sequences
▪ Plant Maintenance Integration
Production Logistics
▪ Production Supply
▪ Kanban & JIT Integration
▪ Consumption, Cancellation and
Restocking
▪ Missing Parts Handling
▪ MES Integration & Production Inventory
▪ WIP Handling
Features that serve a broad spectrum of industries
Transport & Chemicals and

Retail Automotive Consumer Goods
Logistics Oil & Gas
▪ Merchandise cross-docking ▪ Production supply ▪ Transport cross-docking ▪ Batch management ▪ Batch management
▪ Batches ▪ Kit-to-stock ▪ Dangerous goods ▪ Shelf-life ▪ Dangerous goods
▪ Catch weight ▪ QM integration ▪ Transit warehousing ▪ Production and QM ▪ QM integration
▪ Shelf-life ▪ MES integration ▪ Warehouse billing integration
▪ Returns clerk ▪ JIT/JIS integration ▪ Palletization
▪ Wave management ▪ KANBAN
SAP S/4HANA
Aerospace
Mill Products Service parts Life science High Tech
and Defense
▪ Production and MES ▪ Slotting ▪ Batch management ▪ Serial number management ▪ QM integration
integration ▪ Kit-to-stock ▪ Shelf-life ▪ Production supply ▪ Dynamic bin
▪ Batch management ▪ Kit-to-order ▪ QM integration ▪ MES integration ▪ Flexible storage area
▪ Packaging specifications ▪ Global batch tracing ▪ IUID
▪ ATTP integration ▪ Explosives management
Types of Warehouses
Production Warehouse Distribution Center Service Parts Cross-Dock or Transit

Warehouse Warehouse
Integration
Additional Functions ▪ Multi-Client-Warehouse ▪ Handling Unit Management ▪ Resource Planning Process Automation
▪ Multi-Warehouse-System ▪ Forklift Guidance System ▪ Labor Management
▪ Batches ▪ Warehouse Billing
▪ Mobile Working
▪ Serial Numbers ✓ Warehouse Layout ▪ Integrated Material Flow
▪ Hazardous Substances ▪ Route Determination
✓ Master Data Mgmt System
▪ Stock-Specific UoM Extended Warehouse Management ▪ Wave Management
✓ Inventory Management ▪ Automatic Follow-Up
▪ Catch Weight Articles ▪ Cartonization Planning Actions
✓ Warehouse Task Mgmt
▪ Packaging ▪ Value Added Services ▪ Direct Hardware Integration
Core Functions
Specifications ▪ Customs Procedure ▪ Migration Tools
▪ Empties ▪ RFID Support
▪ Production Supply Inbound Internal Outbound ▪ Consignment Stock ▪ Pick by Voice
▪ GR from Production
▪ Tugger Train ▪ Notification ▪ Stock Transfer ▪ Order Management ▪ Slotting
▪ Cross-Docking ▪ Goods Receipt ▪ Replenishment ▪ Picking ▪ Rearrangement
▪ Dock-/Yard ▪ Deconsolidation ▪ Sock Postings ▪ Consolidation ▪ ABC Analysis
Management ▪ Quality Management ▪ Physical Inventory ▪ Packing ▪ Stock Consolidation
▪ Kit-to-Order / Kit-to- ▪ Putaway ▪ Warehouse Control ▪ Shipping ▪ Multi-Deep Storage
Stock ▪ Inventory Center ▪ Delivery Confirmation
▪ Returns Confirmation
▪ Scrapping

SAP S/4HANA ECC

Enterprise Resource
Enterprise Resource Planning (ERP)
SAP’s Strategic Planning (ERP)
Inventory Management
Warehouse
Plant 0001 Management Solution
quantity / value
Plant 0002 Plant 0003
StLoc 1 StLoc 2 StLoc 3 StLoc 4 StLoc 5 StLoc 6 StLoc 7 StLoc 8 StLoc 1 StLoc 2 StLoc 1 StLoc 2
1) 2) 3) 4)
Stock Room Non-
MM-IM WM Management
Embedded WM
EWM SAP
ERP
1) WM as compatibility scope in Decentral

SAP S/4HANA till Dec 31, 2025 S/4HANA
available Optional
2) Stock Room Management only in
EWM Middleware
4) 4)
SAP S/4HANA
3) Embedded EWM only in SAP S/4HANA Business Decentral
Non-SAP
Suite LE-
4) Standard maintenance of SAP WM and
specific versions of SAP EWM till EWM WM WMS
Dec 31, 2027

Key takeaways
SAP EWM is SAP’s strategic future warehousing

solution
SAP EWM has a large customer base and is

continuously improved
SAP EWM supports different types of warehouse:

▪ Production
▪ Distribution
▪ Service Parts
▪ Cross-Dock / Transit

Further reading
SAP Extended Warehouse Management –

Product Site
https://www.sap.com/products/scm/extended-
warehouse-management.html

Thank you.
open@sap.com
Follow all of SAP

warranty.
Unit 6: Objects and Business Processes in EWM:
Outbound
Objects and business processes in EWM: outbound
Overview outbound SAP EWM
Execute + HU & Stock

OutbDlv
SO PickWT Confirm Post GI
OutbDlvO in Staging area
PickWT
Exec +
Exec + WT to Exec + WT to Conf
OutDlv Pick HU on TU-
SO OutDlvO
Wave Conf ressource pack Conf Pack Staging WT to Load
Depart
Post GI
WT PickWT area Staging
station WT
Area

Overview (simple) outbound process
SAP SAP EWM

Sales order
ERP
Outbound replication Outbound delivery
delivery Order
Create picking
task
confirm picking WT
packing
loading
Outbound
Goods issue
delivery

Business documents / objects in outbound
▪ Outbound delivery order is an SAP EWM document that contains all data required for
triggering the complete outbound delivery process. It is also called warehouse request.
▪ Movements of stock is done via warehouse tasks which can be grouped in warehouse
orders.
▪ Goods issue is triggered in SAP EWM which generates goods movement in SAP ERP.
SAP ERP SAP EWM
replication
Outbound Outbound Picking Task Outbound
Delivery Delivery Order Delivery

Wave management
Efficient workload planning & leveling
Delivery 100 Wave 1 Shipment

▪ Item10 ▪ Pick 11:00 ▪ Departure 12:30
▪ Item20 ▪ Load 12:00
Delivery 101 Wave 2

▪ Item10 ▪ Pick10:00
▪ Item20 ▪ Pack 11:00
▪ Item30 ▪ Stage 11:30
▪ Item40 ▪ Load 12:00
▪ Automatic, semi-automatic, and manual wave planning and release

▪ Template-driven wave creation (wave templates with predefined completion times)
▪ Delivery item grouping/split (according to route, pick area, packing lanes, product)
▪ Wave milestone status tracking and monitoring

Warehouse order creation
WHR 1
▪ A list of warehouse requests (delivery items) is

created
▪ These warehouse requests will be grouped into one
wave WAVE 1
▪ Based on the wave, numerous warehouse tasks

(WTs) will be created
WT 1 WT n
▪ All WTs will pass the black box warehouse order
creation. Warehouse orders (WO) will be created
according to set WO creating rules in Customizing
WO Creation
WO 1 WO 1

Picking
▪ Picking is the process of removing goods from the

warehouse
▪ SAP EWM supports various technical devices for
picking such as:
– RF handhelds
– Pick by voice
– AR headsets
– RFID
– Mobile devices like tablets
▪ You can generate pick handling units (pick HUs) into
which you can pack products during picking.
▪ SAP EWM also supports “pick by cart”, which
enables to pick multiple orders with a pick cart in a
single trip through the warehouse.

Picking
Goods Picking Area Staging Area
Door 1
Door 4
Receipt Zone Standard Storage Area 1
Door 5
Door 2
Door 6
Door 3
Bulk Storage Area Staging Area
Door 7
2
Clearing Zone
picking
Door 8
Warehouse Process Type
Picking

Packing
▪ Packing in outbound can be done during picking, at a packing work

center or at the staging area.
▪ Packing in outbound can use the unified package builder.
▪ The SAP Fiori application “Pack Outbound Deliveries” can be used in
“simple” or “advanced” mode.

Staging and loading
Door 1
Goods
Receipt Zone
▪ A staging area is an organizational unit that is assigned

hierarchically to the warehouse number and used to organize the
Door 2
flow of goods in the warehouse. Staging Area
1
▪ They are located in close proximity to the doors assigned to them.
You can define staging areas for different purposes and even
simultaneously for multiple purposes.
Door 3
▪ At warehouse doors, transportation units or Transportation
Staging Area
Management vehicles can be loaded. 2
Door 4
Door 5
Additional processes: kitting
Flexible models for either forecast / demand planning or individual customer orders
Kit-to-Order Kit-to-Stock
▪ Initiated via ERP sales order and therewith on ▪ Initiated via production order or by forecast /
customer demand demand planning
▪ Set and components can be sold separately ▪ Components are not sold separately but bought
▪ Set is built within the outbound process separately
▪ Components are repacked in the warehouse and
Example: putaway to the shelf.
A customer orders a break disk replacement set or a Example:

set of car mirrors.
The winter set consists of ice scraper, de-icing
spray, and a glove
In both scenarios, reverse kitting is supported

Additional processes: staging to production
ERP
Replicated Goods Issue

Trigger Consumption to
Material Staging Production Order
Extended Warehouse Management
Production
System Create Stock is Consume Post the

creates staging moved to materials goods
production material warehouse production used by issue for
request tasks staging area production consumption
Finished Goods
System
creates
expected
goods receipt
for finished goods

Key takeaways
Outbound processes can be set up in simple or complex

variants, depending on the needs of the warehouse
Processes can be:

▪ Picking
▪ Packing
▪ Staging & loading
▪ Additional processes (like kitting)
SAP EWM replicates deliveries into an own data object

called an outbound delivery order
Physical movements within the warehouse are

represented as warehouse tasks which are grouped by
warehouse orders

Further reading
Basic Settings for EWM in SAP S/4HANA – Getting

Started Guide
https://d.dam.sap.com/a/No4hU1s/BasicSettings
_EWMinS4_V01.pdf?rc=10
Pack Outbound Deliveries – How-To Guide

https://d.dam.sap.com/a/RJjHXUb/Pack%20Outbound
%20Deliveries%20How%20to%20Guide.pdf?rc=10
Quick Implementation of Preconfigured Warehouse

W001 with SAP S/4HANA, On-Premise Edition –
Solution Manager
https://d.dam.sap.com/a/nzHZP29/QuickImpGuide
_S4HANA.pdf?rc=10

Thank you.
open@sap.com
Follow all of SAP

warranty.
Unit 7: Objects and Business Processes in EWM:
Inbound
Objects and business processes in EWM: inbound
Business documents and objects
Warehouse
Handling Unit Queue Resource
Process Type
Inbound Delivery Warehouse Inbound Delivery

Work Center Warehouse Task
(EWM) Order (ERP)

Business documents and objects
assigned Transportation
Work Center
Unit
contains source or destinationed
Inbound Delivery replicated Inbound Delivery contains moves

Handling Unit Warehouse Task
(ERP) (EWM)
grouped
Property of Define activity

Warehouse
Order
Warehouse execute contain

Process Type
Resource Queue

Overview inbound process
SAP SAP EWM

Purchase order
ERP
replication
Inbound delivery Inbound delivery
unloading
Inbound delivery Goods receipt
Create putaway
task
Confirm putaway
WT

ASN and ERP integration
▪ The ASN is sent from the supplier to SAP S/4HANA, which validates the data and creates the inbound delivery
▪ The inbound delivery is replicated to SAP EWM. The integration is done via QRFC.
Supplier SAP S/4HANA ERP SAP S/4HANA EWM

Purchase
Order
IDOC Inbound Inbound

ASN
Delivery Delivery
Goods
Receipt
Inbound
Delivery

Unloading, packing, and goods receipt
Goods Receipt
▪ The goods receipt can be posted on delivery level or
HU level.
▪ The update to the ERP delivery can be sent directly
or after the complete delivery is received and
putaway in the warehouse.
Warehouse Stock
▪ An SAP EWM warehouse can contain multiple
storage locations, also from multiple plants (and/or
ERP system if deployed decentrally).
▪ A warehouse stock type in SAP EWM always
contains the ERP stock type (Free, Quality, Blocked)
and the stock owner.

Unloading, packing, and goods receipt
Unloading
▪ For simple unloading processes, unloading deliveries Complex Unloading
or handling units (HUs) automatically trigger a status
change. ▪ Unloading executed with
warehouse tasks
Packing in Inbound Delivery
▪ Packing information in ASN (ERP delivery) ▪ System guided unloading
possible
▪ Automatic packing
▪ Manual packing ▪ Handling units in inbound
delivery required

Quality management integration
▪ Embedded SAP EWM interacts directly with Quality Inbound Insp. Lot
DLV Quality
Management. In decentral deployment, Quality Lot qty 3 PAL
Area
Inspection Engine (QIE) is used. 3 PAL Sample 3 EA WT
1 PAL
▪ Quality process can be executed at work centers.
▪ QM in SAP EWM can be used with or without
inspection rules.
▪ Rounding of sample size to HU or package size.
WT Final
▪ Split inspection stock into sample and remaining 2 PAL Putaway
“putaway” stock. Bin

Deconsolidation
Deconsolidation
▪ Deconsolidation in SAP EWM divides up a
deconsolidation handling unit (deconsolidation HU)
across multiple putaway HUs, for example when a
deconsolidation HU contains different products that
you want to put away in different storage sections.
Workstation
▪ A work center is a physical unit in the warehouse, in
which you can perform warehouse activities such as
packing, distribution, or weighing.

Layout-oriented routing
Door 1
Goods Receipt Standard Storage Area Packing Area Staging Area
Zone 1
Door 2
Handover
Door 4
Door 3
Deconsolidation Bulk Storage Area Small Parts Area
Door 5
Zone
Staging Area
2
Door 6
Clearing Zone

Process-oriented routing
Door 1
Goods Receipt Standard Storage Area Packing Area Staging Area
Zone 1
Door 2
Door 4
Door 3
Deconsolidation Bulk Storage Area Small Parts Area
Door 5
Zone
Staging Area
2
Door 6
Clearing Zone

Putaway

Key takeaways
In SAP EWM, packed materials are represented as

handling units during the whole process
The SAP EWM stock type represents the ERP stock

type and the stock owner
Movements through the warehouse can be controlled

by layout and/or process-oriented routing
Packing in SAP EWM can be done:

▪ Manually
▪ Automatically in inbound delivery
▪ With an ASN

Further reading
Basic Settings for EWM in SAP S/4HANA – Getting

Started Guide
https://d.dam.sap.com/a/No4hU1s/BasicSettings
_EWMinS4_V01.pdf?rc=10
Quick Implementation of Preconfigured Warehouse

W001 with SAP S/4HANA, On-Premise Edition –
Solution Manager
https://d.dam.sap.com/a/nzHZP29/QuickImpGuide
_S4HANA.pdf?rc=10

Thank you.
open@sap.com
Follow all of SAP

warranty.

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Week 1: Introduction to TM and EWM in SAP S/4HANA

Unit 1: SAP S/4HANA Transformation:

Operate supplier networks to hedge risk and flexibly engage external

Address sustainability goals by providing decision support in supply chain

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Visualization & Dashboards Intelligent & Predictive

Industry Cloud Intelligent Suite Networks

SAP & Partner Solutions SAP S/4HANA

value through networking

Yard – Transport – Warehouse Supply

Data management (Big Data)

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▪ New logistics execution in SAP S/4HANA on harmonized objects

Easier integration with business partners Carrier

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SAP Extended Warehouse Management and SAP

Advanced Shipping and Receiving, integrating SAP TM

State of the art functionalities empower you to build a

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SAP S/4HANA SAP S/4HANA SAP S/4HANA

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Strategic Freight Order Transportation Transportation Freight Costing Analytics and

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▪ Extended warehouse integration for execution

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▪ Dashboards for the

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Shipper Freight Forwarder/Logistics Service Provider

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Freight Unit Building

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TM offers capabilities for the following areas:

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SAP Note 3232331 – SAP S/4HANA 2022 Supply Chain for

SAP Note 3083725 – SAP S/4HANA 2021 Supply Chain for

Transportation Management community:

What’s in a name? SAP S/4HANA Transportation Management

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Freight Unit Building

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SAP TM S/4 Core

Perform Planning Creation

Webservice Inbound Delivery

* Shipping-relevant locations (e.g. port, hubs, etc.) are created in TM transactions

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Freight Unit Building

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Order Management Planning

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Purchase Order Freight Unit 1

Item Material Date/Quantity Po 10 PROD01 20 PC

Schedule line 2 Jan 01 30 PC

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