SAP S/4HANA Embedded EWM V/S Decentralized EWM

Updated: Aug 19, 2021


SAP S/4HANA Embedded EWM V/S Decentralized EWM


When companies think to adapt Warehouse Management System to manage their warehouse operations, which is the Right SAP Extended Warehouse Management solution it is depends upon enterprise structure, system landscape.


Deployment Options


EWM deployment can be

  • SAP S/4HANA Embedded Extended Warehouse Management

  • Decentralized Extended Warehouse Management on SAP S/4HANA

Embedded EWM on SAP S/4HANA

  • Which integrates only with local ERP storage locations?

  • Basic Extended Warehouse Management: SAP offers the basic EWM application component with default S/4HANA license

  • Advance Extended Warehouse Management: To avail the advance functionalities additional licensing required

Advantage of SAP S/4HANA Embedded EWM

  • Embedded EWM reduced data replication as business partner data, material master data, batch master data does not need replicated, it can directly access from SAP S/4HANA ERP.

  • Core Interface (CIF) is not required

  • Transaction data like Purchase Order, Sales Order and Production Order can read directly.

  • Elimination of the use of additional documents

  • SAP S/4HANA ERP and EWM can run on same system landscape

  • In comparison of decentralized system it has simple system structure

  • Embedded S/4HANA EWM reduce total cost as the license of basic EWM functionality is included in the SAP S/4HANA ERP license

Data Transfer between S/4HANA & Embedded EWM

Functionality Difference Between Basic and Advance EWM

Limitation of Embedded EWM

  • With this option, it is not possible to integrate with storage locations in other SAP ERP system.

  • The solution is not adaptable with multiple warehouse or with large Material Flow System traffic

  • It cannot keep operational in case of ERP system down.

Decentralized EWM on SAP S/4HANA

  • SAP Extended Warehouse Management is deployed on separate server platform and connected to SAP S/4HANA system using RFC’s and CIF. Decentralized EWM on SAP S/4HANA is released for integration with SAP ERP system and SAP S/4HANA system with ERP roles.

  • Decentralized EWM cannot integrate to ERP storage locations but can integrate to ERP storage locations of other clients or other systems, is available in one license version.

  • Decentralized EWM can manage a higher volume of transactions. System performance of other processes is not impacted.

  • Decentralized EWM deployment option is highly capable to manage high performing material flow system, big size warehouses and other automation.

Advantage of SAP S/4HANA Decentralized EWM

  • It has ability to manage big size volume of transactions

  • Operation cannot be impacted even ERP system is down

  • It has ability to manage multiple warehouses on same landscape

  • It has ability to support automated warehouses integration with MFS and ASRS

  • Both system can be upgrade without impacting each other

  • It can connect multiple ERP system

Data Transfer between S/4HANA & Decentralized EWM

Before choose SAP EWM Solution to a customer


To make a choice of deployment option to implement SAP EWM solution to a customer need to consider following questions

  • What is the total volume of transactions data at present all warehouses?

  • What will be the total volume transactions will be increased in future?

  • How many warehouses are at present on system and what is future expansion plan?

  • What is effect of total cost?

  • What is cost of investment?

  • What is present level of warehouse automation?

  • What is future automation plan?

  • What is future plan about system upgrade?

  • Is existing IT infrastructure is capable to manage Embedded EWM?

Above questions may help to provide right option for implementing SAP EWM solution to the customer.

Rajesh Sharma

SAP MM/WM/EWM Functional Consultant

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