SAP Logistics Management (LGM) Cloud-based logistics module for simple and medium-complex warehouses
SAP Logistics Management (SAP LGM) is a new, cloud-native module in the SAP logistics portfolio. It enables the integrated control of fundamental warehouse and transportation processes on a single platform. LGM is designed for small shipping warehouses with standardized processes that require transparency, efficiency, and connectivity, without the functionality of a highly automated distribution center.
The software offers a streamlined alternative for warehouse and logistics units where a SAP EWM solution would be overkill, both technically and organizationally. At the same time, LGM integrates seamlessly into existing SAP landscapes and supports the gradual evolution of the logistics architecture.
What is SAP Logistics Management?
SAP LGM is a SaaS module that integrates warehouse management, transportation processing and network collaboration. It is based on the SAP Business Technology Platform (BTP), is cloud-native and has a modular structure. It can be seamlessly integrated into SAP S 4HANA, SAP Cloud ERP Private Edition and other systems.
The module can be used independently and complements existing systems specifically where a lean, standardized and cloud-based solution is required. SAP LGM is a genuine alternative to previous transitional solutions such as SAP Stockroom Management (SRM).
Functional overview SAP LGM
Warehouse processes
- Mapping of goods receipt & putaway
- Inventory management down to storage bin level
- Operation via Fiori interfaces with barcode support
Monitoring & control
- Central dashboard for real-time monitoring of warehouse and transport processes
- KPI-based evaluations of processes and partners
AI assistance with SAP Joule
- Support for operational decisions, e.g. carrier selection or scheduling prioritization
- Forecasts and data-supported recommendations for action
Transportation processes
- Processing of LTL, FTL or parcel shipments
- Carrier assignment and consolidation
- Shipment tracking with status milestones
- Calculation of freight costs
Technical architecture
SAP LGM is fully cloud-native and implemented as a SaaS solution on the SAP Business Technology Platform. Maintenance, updates and further developments are carried out automatically via the SAP cloud infrastructure.
Integration into existing SAP systems takes place via open, standardized APIs. Master data, transaction data and status information can be exchanged in a structured manner with SAP S 4HANA, SAP Cloud ERP and other systems. The clean core of the leading systems is retained.
A central architectural feature is the direct connection to the SAP Business Network for Logistics. Carriers, logistics partners and service providers are digitally integrated via this network.
Security and governance mechanisms comply with SAP standards: LGM uses role-based access controls, central user administration and comprehensive logging and monitoring.
LGM is clearly positioned in the SAP logistics portfolio. SAP EWM remains the preferred solution for highly automated and complex warehouse processes and templates, while the "sister product" SAP TM is the preferred solution for sophisticated global transportation networks. SAP LGM specifically complements these systems as a lean, cloud-based solution for standardized warehouse and transport processes.
SAP LGM is particularly suitable for small shipping warehouses.
Your benefits with SAP LGM
Rapidly deployable logistics processes thanks to cloud provision
Reduced infrastructure and operating costs
Direct partner integration via the SAP Business Network
Standardized solution for storage and transport in small shipping warehouses
Transparency through real-time data
Availability & outlook
SAP Logistics Management has been available since 2026.
Thanks to the cloud architecture, SAP ensures regular updates so that new functions can be used successively.
