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Updated: Aug 18, 2021

SAP WM V/S Extended Warehouse Management

Whenever a business decide to implement a Warehouse Management System, It is essential to answer which WMS either WM or EWM is better for them.

Many executives want the answer

  • What in Extended Warehouse Management?

  • What is the difference between WM and EWM?

Why Warehouse Management (WM)?

Most of the company not used any software to manage their warehouses. Their main interest in managing the inventories in warehouse, for that they think only Inventory Management (IM) is important in ERP.

Warehouse Management System need to be adopt when management of physical layout of the warehouse become necessary

When a business want to use the information to manage the warehouse. Inventory Management (IM) and Warehouse Management (WM) are integrated as goods movements in WM relate directly to inventory management. Inventory Management is then connected to rest SAP ERP other modules Finance (FI), Sales & Distribution (SD), Production Supply (PS). WM has direct integration to IM, Delivery Processing, Production Control, and Quality Management. WM adds value for clients, who required,

1) Batch Management

2) Medium to high volumes and medium to high numbers of different materials.

Why Extended Warehouse Management (EWM)?

WM is a part of SAP ERP no special activation is required for it. Extended Warehouse Management is the more specialized Warehouse Management System in market.

Extended Warehouse Management (EWM) was released with SAP Supply Chain Management (SCM) module. There are two different forms of EWM, depending on EWM are deploy. When SAP Warehouse Management being use with SAP ERP release ECC 5.0 or higher, in the centralized mode it is referred as ERP-EWM.


Key Points

  • SAP EWM is not replacement of the SAP WM System and SAP WM remains a viable alternative for many warehouses.

  • WM is not being developed any further by SAP, EWM is the strategic and ongoing development platform.

  • EWM is not right for all warehouses, but take time to evaluate your WMS requirements to make a confident informed choice.

  • Supply chains are changing, your WMS need to able to support your business growth.

  • EWM has out-of-box, best-of-breed functionality with standard integration to other business critical modules and compatible to third party ERP system as well.

  • Be sure to consider Total Cost of Ownership (TCO) and total benefit, not just licensing and implementation cost in isolation.

Rajesh Sharma

SAP MM/WM/EWM Functional Consultant

Linked in profile


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