SAP ERP for Warehouse Management System – Its Types, Modules, Benefits, Features, and Price Details
SAP Warehouse management system can be considered one of the priorities for modern enterprises. Entrepreneurs focus on warehouse management in this post-pandemic age for two reasons- One, it gives real-time visibility about the movement and transit, and Two, it ensures that the supply chain and inventory are managed properly even with limited resources.
But, here is a twist in the tale. It is almost impossible to achieve both these objectives in the absence of an advanced warehouse management system. There, the SAP warehouse management system comes into the picture. With advanced features and seamless functionality, the SAP Business One warehouse management software can meet complex business requirements easily.
In this post, we will dig deep into the reasons to choose the SAP ERP warehouse management module. But, before moving ahead, let's have a brief introduction to SAP warehouse management and understand the key challenges of modern enterprises that a robust warehouse management system can address.
What is SAP Warehouse Management System?
Let’s start with an interesting fact. Warehouse management with SAP ERP is used in over a thousand operations worldwide. Powered by the advanced technology of SAP, this warehouse management module makes various processes more efficient and consistent at the warehouse. You can achieve productivity goals with a robust and reliable SAP warehouse management system.
Simply put, the SAP warehouse management module is an ERP software designed to simplify and control all the processes related to the warehouse. It ensures efficient operations by enabling the corporate users to manage all the aspects of the warehouse. Whether it is monitoring inventory differences or controlling perishable or dangerous goods, SAP warehouse management can assist enterprises.
SAP warehouse module also facilitates you to transfer the stock and handle the receipts of goods every day. You can monitor the inbound and outbound movement of goods and automate various time-taking processes in your warehouse. Inventory management and supply chain management can be managed efficiently and your organization can get the advantage of higher accuracy.
What is the SAP Warehouse Management Module?
SAP Warehouse Management (WM) is an important module to manage warehouses and optimize inventory levels. Developed and supported by SAP, a German BI tools and solutions provider, this module provides users with warehouse management functionality. The Warehousing management module has features including bin management, billing, picklist management, and inward/outward process management to manage all warehouse-related operations efficiently.
What are the Different Types of Warehouse Management Systems?
Typically, warehouse management systems are of four types. They offer a range of benefits including increased productivity and reduced operational expenses. Companies can easily take control of logistics, supply chain, and inventory with WMS software. Also, WMS optimizes inventory transportation through tracking functionality. Here are four main types of wms systems.
This type has warehouse management features and such a system can be combined with existing or future solutions. Standalone WMS has no functions related to the supply chain and most companies purchase it to meet warehouse management requirements with the best-of-breed WMS. It also offers features like barcode scanning, cycle counting, putaway, etc.
2. Integrated with ERP
ERP remains the most useful option for modern businesses to increase efficiency and productivity. Though integrated ERP systems have some built-in warehousing features, these systems do not manage the entire process of warehouses. You can integrate a WMS with ERP. It costs more but this integration performs multiple operations and offers a centralized platform.
3. Supply Chain Modules
Supply chain management modules are useful in managing everything ranging from vendor relationships to business processes. These modules are designed to bring automation to inventory management, product cycles, and material sourcing. They give 3PL (third-party logistics) firms the chance to leverage the benefits of supply chain management
4. Cloud-Based System
When it comes to maintenance costs and installation, on-premise solutions remain very costly. A cloud-based WMS has many benefits including reduced implementation and installation costs and high scalability. Startups and smaller businesses can also leverage the benefits of this system thanks to subscription-based options.
Industry Challenges of Warehouse Management System
A warehouse management system with the necessary features and seamless performance can ensure sustainability for your warehouse and business alike. You can easily overcome some of the common challenges that occur frequently in the warehouse with the help of the SAP warehouse management system. Here are some major warehouse management challenges that can affect your business over the period.
It is difficult to monitor the stock movement in absence of a warehouse management system. As a result, companies may give orders randomly for items that are not moved quickly. Also, poor inventory management can bring problems in finding the real-time situation of stock. Altogether, companies may face troubles related to excessive stock.
Traditional paper-based processes including manual data entries and passing the same ticket frequently at the warehouse can reduce visibility and remain time-consuming. Also, in the post-pandemic age, many companies have to manage with limited resources. In such a scenario, manual warehouse processes can reduce the traceability of items.
Lack of Space
The overstock situation can cause a lack of space in your warehouse for storing other necessary goods. Along with this, warehouse setup mistakes and inaccurate data regarding the fast-moving items can create trouble and waste your staff’s productive time. All such scenarios have a direct impact on your business profitability and efficiency.
Improper Time Management
Official research has shown that 50 percent of the picker’s time is spent in movement. Therefore, it is necessary to establish an optimized way that minimizes movement and time consumption. Without a feature-rich warehouse management module, companies cannot save time in warehouse movement and they have to face its consequences.
Manual and repetitive procedures lead to excessive stock in your warehouse. Such procedures not only take more time for employees but also increase the chances of human errors. It can result in reduced efficiency and accuracy in order fulfillment management. Shortage and overstock remain common difficulties due to repetitive processes.
Inaccurate Inventory Measurement
Inventory management plays a vital role in managing the supply chain. However, companies that have no warehouse management systems in place have to compromise on monitoring and measurement of inventory. Such an inaccurate inventory measurement can bring the risk related to damaged products and excessive stock.
Improper inventory management leads to damaged products and other issues. Companies face losses due to such products because they cannot sell or supply them to anyone. Inaccurate warehouse management causes more instances of damaged goods.
Failure in Meeting Demands
Some seasonal products need special attention as they are moving fast during the particular period. However, if there is a lack of a warehouse management system, many businesses fail to meet the demand for such products.
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SAP Warehouse Management System Features
SAP-based warehouse management system enables you to experience the power of SAP Business One. As an advanced ERP solution for small and mid-sized businesses, SAP Business One (SAP B1) can optimize efficiency and productivity. It also offers more control over warehouse data and ordering systems while enabling users to monitor and record stock movements in real time. Here are the key features of SAP warehouse management.
Improved Goods Receipt and Better Control
It enables users to track inventory transfers, record receipts, and other stock-related issues easily. Powered by SAP B1, this feature offers more control over cycle counts and consignments. Another necessary feature is dropshipping management which takes care of the logistic part.
Production & Material Requirement Planning
SAP Business One facilitates users to issue and release orders for production. You can also keep multiple bills of materials (BOMs) while maintaining preset prices to provide your global customer base with better services. Altogether, you can plan for production and material requirements in advance.
This is one of the most noteworthy features of the SAP Business One warehouse management system. SAP Business One offers accurate reports with real-time data. This information keeps on updating continuously and users can access it in various formats. You can make decisions related to warehouse movements with this feature.
Warehouse and Inventory Management
The warehouse management module has dedicated features for warehouse and inventory management. These features enable companies to maintain all their master data and costs in multiple currencies for various products or goods. As a result, you can easily manage orders and supplies.
Mobility and Data Security
It enables companies to keep a tab on inventory at every warehouse irrespective of geographical distance. You can also access the movement history and real-time stock status from a mobile device through the mobility feature. Companies can also restrict access to this information for ensuring data security.
QC (Quality Control) Management
This feature enables the company supervisor to inspect various physical aspects of the vehicle after the material is loaded from the supplier side. Some factors like cleanliness, vehicle temperature, and start or finish time can be monitored through this feature. QC Management feature is one of the top features of SAP Business One software.
Bin and Database Management
It is easy to assign a separate storage bin to different warehouses based on the storage type and location. You can also manage the storage facility based on the maximum weight, fire containment section, and total capacity. Also, the SAP B1 warehouse management module can be easily integrated with a centralized database.
Purchase and sales agreement features are useful for managing goods effectively on the basis of item type, purchase order, and sales agreement for warehouse and bin. These features have B2C and B2B functionalities so that companies can easily manage the entire supply chain and inventory.
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What are Benefits of SAP Warehouse Management?
SAP Warehouse management system offers many benefits to companies that have warehouses at distant locations and also companies that provide warehouse facilities to other organizations. Here are some of the major benefits of SAP warehouse management.
SAP warehouse management system enables users to employ barcode scanners for improving inventory management, tracking materials, and fulfilling customer orders on time. The module can check material availability in real-time, pre-pick, accept, and distribute incoming materials.
It is possible to monitor all goods as they move in, out, or remain in the warehouse. Users can get up-to-date stock information while preventing errors that lead to understock or overstock conditions. Also, you can reduce picking and packing time with the help of accurate shipping locations.
SAP B1-powered warehouse management module can bring instant inventory visibility and offer physical control over different activities like stock movement and supply. It can assist companies to optimize the process and reduce operational costs significantly. Also, businesses can identify problem areas in advance and fix them before they convert into costly issues.
You can gradually improve the efficiency of the warehouse staff by updating inventory information in real time. They can easily manage daily operations, scan barcodes, track inbound and outbound inventory, and get reports as and when necessary. It results in increased productivity.
Thanks to real-time and accurate monitoring, companies can reduce human errors during order execution. It is also possible to get effective inventory control and management regardless of the number of items.
SAP WMS Price
SAP ERP Warehouse Management System (WMS) not only offers complete control over warehouse operations but assists you to keep up with the ever-changing demands of customers without increasing expenses. SAP Extended Warehouse Management (EWM) for SAP S/4HANA Cloud solution starts from USD 4354 per 5000 items a month. A reputed SAP Partner can integrate add-ons to make your EWM solution more powerful. Its cost starts from USD 16, 016 per 5000 items a month.
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What is Extended Warehouse Management in SAP?
SAP Extended Warehouse Management (EWM) is a warehouse management module that is included in the Supply Chain Management (SCM) solution package of SAP. It is designed to offer flexibility and automated support to manage the stock movements in the warehouse while handling the entire process from goods to picking, packing, and distribution. SAP EWM is an advanced version of SAP Warehouse Management (WM). SAP has announced that it will end all sorts of support in SAP WM in 2025 due to the increasing demand for warehouses. In other words, companies need to opt for the SAP EWM module instead of SAP WM from now onward. Let’s go through the basic differences between advanced SAP EWM and basic SAP WM.
What are the Differences Between SAP EWM and SAP WM?
We will see the main points that differentiate SAP EWM and SAP WM from different aspects. Hope the following table will help you
|Aspect||SAP EWM||SAP WM|
|Definition||It focuses on the logistics part and it is available without the SCM (Supply Chain Management). SAP EWM has all standard warehouse management applications.||It is a highly efficient tool to manage the stock available in the database and make any necessary changes in it. SAP WM can also assist users to manage operational tasks in their warehouses.|
|Flexibility||It offers a higher level of flexibility in terms of the design of your warehouse and its processes.||It is not much flexible in the design of the warehouse and its processes.|
|Users||Accenture, YASH Technologies, and ICS Consultancy Services are some of the companies that aggressively use SAP EWM.||Tech Data and Luxottica Groups are a few companies that use SAP WMS.|
|Disadvantages||It interfaces with the automation and field devices thereby remaining slightly unsuitable for them.||It requires expertise for configuring and incorrect processing can cause complicated issues.|
Why You Should Adopt SAP ERP for Warehouse Management
When it comes to efficient monitoring at the warehouse, paperless management of processes, and increasing efficiency, SAP warehouse management remains the preferred choice for companies. It drives productivity by bringing automation into several processes related to the warehouse. With the ease of use and seamless customization to meet ever-changing requirements, the SAP Warehouse Management system is the right choice for thriving enterprises.
Why Silver Touch for SAP Warehouse Management Solutions
Silver Touch offer a web-based Warehouse Management Software (WMS) that is developed specifically for SAP Business One. It enables you to make the most of your investment through a comprehensive and feature-rich warehousing solution suite. Improved efficiency and reduced costs are some of the top benefits of using our warehouse management software. Our WMS has many capabilities like inventory and location management, stock-based picking, internal stock transfer, pick note assignment, outbound, inventory counting, replenishment, etc. You can get all the warehouse-related operations updated in real-time in SAP Business One. Simply visit our website or send us an inquiry at sap[at]silvertouch[dot]com to know more about our warehouse management.
Conclusion: SAP WMS
After looking at the warehouse management system features and benefits, you will certainly opt for SAP Warehouse Management System for your growing business. We hope that this detailed guide will give the answer to the question- Why should you choose SAP for warehouse management? Forward-looking entrepreneurs have already adopted SAP WMS to meet complex requirements and increase productivity amid changing business needs. The time is just right for you to integrate SAP EWM into your business model.
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FAQs About SAP Warehouse Management System
SAP Extended Warehouse Management (EWM) is useful in managing inventory in the warehouse and monitoring stock movement. With the SAP warehouse management system, you can control inbound and outbound processes in the warehouse.
SAP Extended Warehouse Management (EWM) is an advanced version of SAP WM (Warehouse Management). It is a part of SAP AG’s SCM (Supply Chain Management) suite of solutions. As an integrated software platform, SAP EWM offers automated support for managing inventory and processing the stock’s movement in the warehouse.
Key features of SAP warehouse management include
- Real-time Reporting
- Production & Material Requirement Planning
- Warehouse and Inventory Management
- Quality Control Management
- Purchase Agreement
- Mobility and Database Management
Warehouse management systems are available in four types- Standalone, Supply Chain modules, Cloud-based, and Integrated with ERP. Companies can purchase systems from any of these types as per their requirements.
SAP warehouse management offers many benefits to companies. Some of them are-
- Improved Processes
- Higher Accuracy
- Reduced Costs
- Enhanced Monitoring
- Increased Productivity
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