Conversion of SAP WM to SAP EWM Migration tips: When is it worth switching from SAP WM to SAP EWM?

First and foremost, the range of functions! This is significantly greater with SAP EWM (SAP Extended Warehouse Management) - part of the SAP Supply Chain Execution Platform (SAP SCE) - than with SAP WM (SAP Warehouse Management). The warehouse management monitor, direct connection to material flow control (SAP MFS), exception management and kit and set creation are just a few examples. As a result, you can map significantly more standardized processes in the SAP system on the basis of the available pool.

In terms of quality, the benefits of SAP EWM are that process reliability is increased and error rates can be further minimized . You can therefore further increase the productivity of the overall system. There are also customer-specific requirements. Many enhancements that have to be implemented in SAP WM in the form of SAP add-ons are already included as standard in the SAP EWM application. Another difference is that SAP WM is a module that is exclusively integrated into SAP ERP, while SAP EWM can also be operated independently as a separate module (as an SCM platform or based on S/4).

The cut-off date is December 31, 2027, when SAP will discontinue support for SAP WM (SAP Warehouse Management). The latest generation of SAP EWM software is based on SAP S/4HANA in-memory technology (more on this in the following chapter), which SAP is developing at full speed. There is therefore pressure to act. At the same time, the time factor for the changeover from SAP WM to SAP EWM should not be underestimated - especially if companies currently operate several locations with SAP WM. After all, not only the implementation of the new SAP software (SAP EWM) but also the rollout must be taken into account. It is also advisable to factor in the associated investments in addition to the operational expenditure at an early stage and to prepare employees for the changes to come.

Generally speaking, when using SAP Extended Warehouse Management (SAP EWM), you are relying on a future-proof, scalable system that has already proven itself across all industries. It can be adapted to further growth as well as to new processes and/or changed business models. Last but not least, SAP EWM combines maximum functionality and comprehensive process support for all types of warehouses. As a result, the system is one of the most powerful standard software solutions for warehouse management and warehouse control worldwide. Analysts confirm this year after year.

SAP EWM is already part of the SAP S/4HANA platform. The integrated in-memory technology cannot be compared with conventional databases. Instead, big data-based analyses and evaluations can be generated practically in fractions of a second, taking into account real-time processes in the warehouse. Transactions can also be mapped in real time and thus accelerated. This makes SAP S/4HANA an enabler for Industry 4.0 and Logistics 4.0.

SAP EWM is available in SAP S/4HANA as "Embedded EWM". This means that the new SAP suite places SAP EWM at the digital core of the system. The central data consistency is a particular advantage here, eliminating redundancies and duplications. Of course, it is still possible to operate Extended Warehouse Management decentrally ("standalone"), i.e. as a separate system. This is particularly essential for sophisticated, automated logistics centers with high performance requirements , because only a standalone solution can eliminate the influence of an ERP system on warehouse management and control (while simultaneously using the SAP standard distribution model and SAP ERP integration).

SAP S/4HANA therefore offers the following key added values:

• Comprehensive, reliable analyses at the touch of a button
• Simulation of complex business processes
• Simplified and reusable data model
• Faster reporting results based on up-to-date data
• Support for real-time applications
• Shorter processing times with reduced memory requirements
• Compliance with high performance requirements
• Control of automation technology (HBW, miniload, shuttle, sorter, etc.)
  

Would you like to make the switch? Then we present three possible migration paths here:

1. For a certain transitional period, you have the option of continuing to use the existing SAP WM (SAP Warehouse Management) within the S/4HANA ERP core (provided, of course, that S/4HANA ERP has already been implemented). Your established processes are retained and you decide where they should be optimized with the help of S/4HANA. SAP will therefore temporarily support the "old" warehouse management module SAP WM for a few years. However, this transitional solution will also come to an end by the end of 2025 at the latest! By then, the switch to SAP EWM (SAP Extended Warehouse Management) should be complete - embedded or decentralized. Ultimately, this usage variant is effectively just a migration step.
   
2. It is of course also conceivable to migrate SAP R/3 Warehouse Management at the same time as migrating all SAP R/3 functions to the new SAP S/4 platform, i.e. to introduce an embedded EWM solution in S/4. This is particularly suitable for simple warehouses or appears to make sense if only a few warehouse locations are currently operated with SAP WM.
   
3. Alternatively, early migration to a decentralized (standalone) SAP EWM system is an option, especially for sophisticated warehouses or for a large number of warehouse locations. The advantage here is that the changeover can be decoupled from the introduction of SAP S/4HANA (ERP) in terms of both time and technology. And if maintenance is required on the existing ERP (R/3), the SAP EWM system remains unaffected. Incidentally, SAP EWM can communicate with both SAP R/3 ERP and SAP S/4 ERP and use the standard system distribution model.

SAP EWM (SAP Extended Warehouse Management) already offers a wide range of options and tools for migrating data from SAP WM (SAP Warehouse Management) to SAP EWM. For example, tools and so-called wizards are available for both downloading from SAP WM and uploading to SAP EWM for the following data:

• Product master data
• Fixed bin assignments
• Palletization data
• Warehouse management unit of measure
• packing specifications

Nevertheless, the switch from SAP WM to SAP EWM or SAP S/4HANA Supply Chain is associated with numerous challenges. However, if you want to generate real added value for your company and its customers from the opportunities offered by digitalization, you cannot avoid dealing with this topic. This is because the technology offers considerable potential to standardize and simplify processes across locations in line with the principles of Logistics 4.0 and the Internet of Things (IoT) .

We will be happy to show you which migration path is the right one for you. With our "S4/HANA Warehouse Logistics Checkup" tool and IGZ's many years of experience as a leading SAP logistics project house, you are well positioned for a successful migration from SAP WM to SAP EWM.