Value-Added Services in SAP EWM

Jul 22, 20242 min read

Value-Added Services in SAP EWM

This blog will discuss Value Added Services in SAP Extended Warehouse Management

What is Value Added Services

Value Added Services (VAS) in SAP Extended Warehouse Management (EWM) refer to additional activities performed to enhance or add value to the products before they are shipped to the customer. These services can include repackaging, labeling, assembling, kitting, and other custom tasks that go beyond standard warehousing operations. Here’s an overview of how VAS is managed in SAP EWM:

Key Features of VAS in SAP EWM

VAS Order Management:

o VAS orders are used to plan and execute value-added activities.

o They can be created manually or generated automatically based on predefined rules.

o VAS orders contain detailed instructions on the tasks to be performed.

Integration with Warehouse Tasks:

o VAS activities can be integrated with warehouse tasks to ensure efficient execution.

o Warehouse tasks for picking, packing, and shipping can be synchronized with VAS orders.

Resource and Activity Management:

o Resources (workers, work centers) can be assigned to VAS tasks.

o Activity tracking helps in monitoring the progress and completion of VAS tasks.

Billing and Costing:

o VAS activities can be linked to billing processes to charge customers for additional services.

o Cost tracking helps in managing the profitability of VAS activities.

Quality Management:

o Quality checks and inspections can be integrated with VAS processes to ensure the products meet customer requirements.

Implementing VAS in SAP EWM

1. Configuration:

o Define VAS work centers in the warehouse layout.

o Set up VAS products and processes in the system.

o Configure VAS order types and determination rules.

2. Master Data Setup:

o Maintain master data for products, work centers, and resources.

o Set up VAS product structures and work instructions.

3. Process Flow:

o VAS Order Creation: Generate VAS orders based on customer orders or internal requirements.

o Task Assignment: Assign tasks to warehouse workers and work centers.

o Execution: Perform the VAS activities as per the instructions in the VAS order.

o Completion and Confirmation: Confirm the completion of tasks and update the system.

o Billing: Generate billing documents if applicable.

4. Reporting and Analysis:

o Monitor VAS activities using standard and custom reports.

o Analyze the performance and cost-effectiveness of VAS processes.

Benefits of Using VAS in SAP EWM

Enhanced Customer Satisfaction: Customization and value addition meet specific customer requirements.
Operational Efficiency: Streamlined processes and better resource utilization improve efficiency.
Revenue Generation: Additional services can be a source of revenue through proper billing.
Quality Assurance: Integrated quality checks ensure product quality and compliance.

Implementing VAS in SAP EWM requires careful planning and configuration to align with business requirements and warehouse operations. It provides a comprehensive solution for managing additional warehouse services, ensuring a high level of customer satisfaction and operational efficiency.