SAP Extended Warehouse Management (EWM) offers warehouses a comprehensive solution for managing warehouse operations from goods receipt, reversals, storage optimization, picking and packing, kitting, route determination, labor management, and more. Warehouses use SAP EWM to create streamlined process flows, resulting in operational efficiency, faster fulfillment and throughput, and greater cost control. However, the deployment model –– SAP EWM decentralized vs embedded –– can impact functionality.
Since SAP released Extended Warehouse Management in 2005, it has offered different deployment options. It was originally decentralized, based on SCM Business Suite. However, SAP allows users to deploy SAP EWM embedded as part of a warehouse’s S/4HANA enterprise management solution or decentralized on a separate instance connected to S/HANA or SAP ECC.
SAP S/4HANA Supply Chain Management for Extended Warehouse Management (embedded EWM) is a default offering in SAP S/4HANA 1610 and is included in the license cost. Embedded EWM has two versions, “Basic” and “Advanced.” Basic will replace SAP WM, which will sunset in 2025, but has additional functions, such as layout- and process-oriented management, expanded reporting capabilities, and resource management. Advanced, which requires additional licenses, includes wave management, yard management, cross-docking, kitting and slotting, billing, labor management, and other functionality.
In the decentralized model, SAP EWM is deployed on a separate server and connected to SAP S/4HANA with remote function calls and core interface (CIF).
Both deployment options allow users to add new functionality over time and utilize SAP transactional data, document types and master data. However, there are several differences between them:
You can review the finer points of the differences between SAP EWM Decentralized vs. Embedded Comparison in SAP note 2840129, which is updated regularly.
Warehouses transitioning management from an on-premises system to a cloud or hybrid system need to evaluate which deployment model will benefit them now, throughout the transition, and when they’re fully operating in their new IT environments. Considering the impact the decentralized EWM or embedded EWM deployment will have on functionality and performance is essential. This analysis is particularly vital if your warehouse operation is complex, has a high throughput, or planning to deploy robotics or other automation solutions.
When you dig deeper into the differences between SAP S/4HANA Embedded EWM vs. Decentralized EWM, the right deployment model for your warehouse will be clear. The total cost of ownership will be a major factor in your decision. Because Basic Embedded EWM is included with the SAP S/4HANA license, the option can keep costs low. However, if it doesn’t provide the functionality your warehouse needs, settling for Basic when you need much more could cost you more in the long run when you factor in efficiency, automation options, labor costs, business continuity, and competitiveness.
However you resolve the SAP EWM decentralized vs. embedded question, there’s one more thing to consider: mobility. SAP EWM doesn’t enable warehouse workers to use mobile devices to enter data at the point of task and give managers real-time visibility into operations and inventory. For those advantages, you need a platform like Pillir that is designed with deep integration with SAP while keeping your core clean.
Furthermore, Pillir’s low-code/no-code platform allows you to create custom apps quickly and easily with a drag-and-drop interface. Pillir also provides extreme offline capabilities, so employees have the same user experience whether they’re connected to the network or not –– and synchronizes data without errors with the connection is restored. Additionally, your team can use Pillir’s Warehouse Management suite of mobile and web applications out of the box, no coding required.
Consider all SAP EWM deployment options and solutions available to provide your warehouse with the functionality it needs. Contact Pillir to learn more.