As part of our ongoing series on keeping businesses competitive with SAP solutions, this article dives into Extended Warehouse Management (EWM). Warehousing is at the heart of supply chain efficiency, and with SAP offering both Basic and Advanced EWM, many businesses struggle to decide which version best fits their needs. Knowing the differences is critical not just for consultants but for businesses aiming to remain agile and competitive. 

Choosing Between Basic and Advanced 

Businesses often underestimate how their choice between Basic and Advanced EWM impacts operations. Common struggles include: 

• Limited process coverage when relying on Basic EWM for complex supply chains. 

• Overinvestment in Advanced EWM features that aren’t fully utilized. 

• Confusion around integration requirements and system complexity. 

• Gaps in user knowledge and skills, leading to underutilization of the system. 

Without clear understanding, companies either oversimplify their warehousing needs or overcomplicate operations both leading to lost efficiency and rising costs. 

The Solution: What to Look Out for in Basic vs. Advanced 

Understanding the scope of each version is key to aligning technology with business objectives: 

EWM Basic 

• Included in S/4HANA at no extra license cost 

• Supports standard processes such as inbound/outbound deliveries, picking, put away, and physical inventory. 

• Best suited for organizations with moderate complexity and smaller-scale operations. 

EWM Advanced

• Requires additional licensing but unlocks advanced capabilities. 

• Features include labor management, slotting and rearrangement, yard management, value-added services, and advanced integration with automation/robotics. 

• Designed for large-scale, complex warehouse operations where efficiency and real-time visibility are business critical. 

The key is not simply choosing “more features,” but matching the right solution to your warehouse complexity and business goals. 

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