1/5/2016 5:31:57 PM

Introduction to Extended Warehouse Management

Extended Warehouse Management (EWM) is a new generation SAP Warehouse Management application. It was developed from scratch and was introduced to the customers in 2006 as a second Warehouse Management module. It provides the customers enhanced functionalities over ERP Warehouse Management System so that more complex processes can be configured with ease.  EWM was not introduced as a replacement for ECC WMS. The SAP ERP Warehouse management system is still widely used and is a viable alternative to EWM. SAP ERP WMS and EWM may be deployed in combination in the same system landscape. EWM has introduced flexibility and automation in all the goods movements and stock management in the warehouse complex Extended Warehouse Management was introduced keeping in mind the large warehouses and distribution centers which have a huge number of products and require high processing volume.

Why use warehouse management?

Warehouse management describes the art, to manage a warehouse in an efficient way. Inventory is stocked to be able to deliver customer orders or to supply the production with the needed materials.

Warehouse Management means to manage inventory and storage bins. A fundamental customer request is to fulfill customer orders without delay. As you can't really forecast the exact quantities or materials, but need to guarantee a deliver capability it is necessary to have the products on stock. However a manufacturing plant is often supplied with a just- in- time agreement, in order to buffer difficulties in procurement you nearly can't avoid to lay in a stock. To offer a large variety of products, more and more assembly processes are transferred into a warehouse or distribution center. Additionally in order to reduce transport costs, it's better to make use of the special transportation capacity and by the way optimize the process of goods receipt (and in a later step goods issue). This are also reasons, why you have the need to build up stock of your products.

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