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Supply Chain Management (SAP SCM): SAP
SCM-EWM Vs SAP ECC-WM
Posted by Sachi Patabendige Aug 4, 2013
SAP SCM-EWM Vs SAP ECC-WM

1.1 Comparision
1.1.1 What is SAP ECC WM

What is currently referred to as traditional SAP Warehouse Management is a Software that has been available
since the SAP R2. When the client server version of SAP R/3 was introduced in 1992 SAP WM also got a
big boost in new capabilities to manage warehouse operations. With this release many companies included
WM into their upgrade strategies.Ever since then, SAP WM has been widely adopted, with more than 7,000
customers worldwide. It is a scalable solution that has been deployed in various business environments and
industries from simple raw materials warehouses to complex, high-volume, and automated distribution facilities.
SAP WM can be deployed as a centralized or decentralized solution. The functionality of SAP WM has been
expanded further as part of the latest SAP version ECC 6.0.


1.1.2 What is SAP SCM-EWM ?

In 2005, SAP released a new Warehouse Management solution called SCM-EWM. EWM is the abbreviation
of Extended Warehouse Management which offers flexible, automated support for processing various goods
movements and for managing stocks in simple to complex warehouses, furthermore it supports planning and
efficient processing of all logistics processes in customers warehouses. SAP EWM maps an entire warehouse
complex in detail in the system, down to storage bin level. The business user can always determine exactly
where a stock belongs to a particular material is located in the warehouse complex at any given time.This
redesigned solution accommodates the core functionality of ERP WM with additional capabilities that match
those available from third-party, state-of-the-art solutions. The most significant functionality advancements
include labor management, slotting and a solution called Material Flow Systems, which is designed to allow
the WMS to directly control automation without the use of what is commonly known as a Warehouse Control
System or WCS.


1.1.3 How SAP SCM EWM Evolved ?

Supply Chain Management (SAP SCM): SAP SCM-EWM Vs SAP ECC-WM
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In year 2002, SAP partnered with Cat Logistics and Ford Corporation to develop a new supply chain
management solution specifically tailored for the service parts management industry. After investing thousands
of man-hours on this project, SAP EWM application was built as an application on mySAP SCM (Supply
Chain Management) application stack. The development of the solution mainly focused on managing complex
warehouse operations. Cat Logistics began implementing the solution for one of its Indianapolis, Ind.,
Caterpillar parts facilities in January 2006. Then, in September 2007 Evobus (bus and coach manufacturer)
built a new logistics centre where interface with miniload system and SAP EWM was implemented.

Below diagram shows how SAP EWM has been evolving and what capabilities has been intrduced over the
time.



1.1.4 Why SAP SCM EWM was developed

EWM Represents a new Supply Chain Management (SCM) based Warehouse Management System (WMS)
solution rather than a highly modified Logistics Execution System (LES) / Warehouse Management (WM).
Reasons for this completely new design include:
1. Requirement for data volume, performance and process flexibility made a new architecture necessary.
2. Follow on from the Decentralised SAP Warehouse concept enabling 24/7 system availability
3. Extend the basic concept of SAP ECC WM, Transfer Orders to enable process flexibility
Supply Chain Management (SAP SCM): SAP SCM-EWM Vs SAP ECC-WM
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4. To avoid high risk of changing existing architecture of mature application (WM) with thousands of live
customers
5. Customer mind shift from Managing Stocks to Controlling Processes.

1.1.5 Why it is necessary to move from SAP ECC WMS to SAP
SCM EWM

1. SAP future vision is to continue to expand SAP EWM as a professional WMS solution with new
capabilities and refinements.
2. SAP will still support SAP ECC WMS implementations with ever increasing maintenance costs, but no
new enhancements are done to make it a comprehensive WMS system.
3. SAP EWM supports multiple Industries.
4. SAP EWM enables warehouse activities to be executed seamlessly with inbuilt industry best practises.
e.g. Catch Weight Management, Cross Docking, Value Added Services
5. SAP EWM gives the capability to handle large volume of transactions with faster times required in
Consumer Product industries.
6. As the market leader in Business Systems Developments SAP brings continuous enhancements to
SAP EWM with cutting edge technology to enable business to grow faster. e.g. SAP EWM versions
7.02 eliminates middleware's to connect with MFS systems, SAP EWM 9.0 eliminates requirement of
middleware's in Voice Picking,
7. In future SAP SCM EWM running on SAP HANA will bring the speeds in processing
transaction, handling huge volumes of data and capability for predictive analytics.

1.1.6 Capability comparision of SAP SCM EWM 9.0 with SAP
ECC-WM based on SAP ECC 6.0

Supply Chain Management (SAP SCM): SAP SCM-EWM Vs SAP ECC-WM
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Benny De Clippeleir in response to Bart Verhagen on page 4
Feb 22, 2014 1:25 PM
You mention a higher TCO of EWM due to license cost for each individual warehouse. Do you have an idea of
the license cost per warehouse?

Are you using EWM already or did you implemented an alternative WM solution? We are using SAP WM since
2009 in one of our biggest warehouses. Now we want to implement WM in other warehouses which are smaller
in size and so very sensitive to overhead. Since a lot of shortcomes of the current WM, we want to implement
another solution and now scanning the market.

I would like to get some idea's from other WM users and hear what they are using and preferring. I would
appreciate your input.
Bart Verhagen
Supply Chain Management (SAP SCM): SAP SCM-EWM Vs SAP ECC-WM
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Nov 1, 2013 5:07 PM
Interesting information. Indeed EWM is a nice solution but unfortunately the TCO of SCM-EWM is also much
higher than the TCO for ECC-WM (including TRM). For each physical warehouse you need a separate EWM
license and you still need the ECC user licenses
SATISH WAGHMARE
Sep 4, 2013 5:27 AM
Many thanks Sachi for sharing this information.

Thank you
Satish Waghmare
Saravanan Sampath
Aug 23, 2013 8:07 AM
One stop blog for clear differenciation. Nice blog. Thanks for the effort.
Pushkar Gosavi
Aug 16, 2013 4:42 PM
Nice article...
Ranjan Madhava
Aug 6, 2013 5:57 PM
Very informative post.