SAP SRM vs. SAP EWM: which version fits your warehouse needs?

Choosing the right software solution for warehouse management is a crucial strategic decision for any company. With the end of support for SAP WM and the advancement of modern logistics solutions within the SAP portfolio, many companies are asking: Which solution best fits my requirements? SAP offers various options, including SAP Extended Warehouse Management (EWM) in both embedded and decentralised versions, as well as Basic and Advanced versions. However, SAP Stock Room Management (SRM) is also a solution for companies with less complex warehouse processes.

This article provides an overview of the key options to help you make an informed decision.

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1. SAP EWM: The future of Warehouse Management

SAP Extended Warehouse Management (EWM) is considered SAP's strategic warehouse management system. It offers a highly flexible, scalable solution that suits both simple and very complex warehouse environments.

Embedded vs. Decentral EWM

The first decision in SAP EWM is whether to choose an embedded or decentralised solution. Both variants offer powerful features, but there are significant differences:

• Embedded SAP EWM is directly integrated into the SAP S/4HANA system. This enables seamless communication with other modules such as Production Planning (PP) or Materials Management (MM), significantly simplifying the integration of warehouse processes. Another benefit: embedded EWM reduces IT overhead as no separate system landscape needs to be maintained. This solution is particularly suitable for companies already using SAP S/4HANA and adopting SAP WM in compatibility mode. This allows existing WM processes to be integrated into the S/4HANA environment, gradually embedding warehouse processes into the central ERP strategy.

• Decentralised SAP EWM is used not only for independence from the ERP system but also for performance requirements in very fast and complex warehouse environments. It allows the connection of multiple SAP ERP systems to a central EWM and also provides greater fault tolerance, which is especially advantageous in global warehouse structures. Another key feature is support for complex automated processes, such as the integration of conveyor systems.

Basic vs. Advanced EWM

In addition to choosing between embedded and decentralised, EWM also offers different functionality levels:

• Basic SAP EWM

  • Availability: Available only as an embedded version.
  • Features: Supports basic warehouse processes such as inventory management, including handling units, inbound and outbound processing, internal warehouse movements, inventory, reporting (e.g., warehouse management monitor and analytics), resource management, and integration with production and quality management.
  • Suitable for: Basic EWM is ideal for companies with less complex warehouse processes and moderate automation needs. It is excellent for businesses seeking efficient handling of inbound and outbound processes, manual picking, and inventory management. Automated warehouses, such as high-bay warehouses, can be connected via the existing interface to external material flow computers (MFC). However, for more demanding automation, such as material flow control (MFS), the Advanced version of EWM is required.

• Advanced SAP EWM

  • Availability: Available as both embedded and decentralised versions.
  • Features: Offers advanced features for complex warehouse processes, such as inventory optimisation, inbound and outbound process optimisation, yard management, material flow control, packaging planning, cross-docking, transit storage, and integration of conveyor systems.
  • Suitable for: Companies with global warehouse structures, high process complexity, and extensive automation needs. Examples include connecting high-bay warehouses with automation, as well as complex picking solutions such as automated conveyor systems or robot-supported sorting systems.

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2. SAP Stock Room Management (SRM): A solution for simple warehouse processes

With SAP Stock Room Management (SRM), SAP offers a simplified warehouse management solution directly integrated into SAP S/4HANA. This solution is ideal for companies with simpler warehouse processes, such as inbound and outbound logistics and inventory management. SRM is offered as a cost-effective alternative to SAP EWM.

However, SRM may reach its limits for more complex requirements, particularly when advanced automation or highly complex warehouse processes are needed. Nonetheless, SRM remains an attractive solution for companies with less complex warehouse requirements, as it is embedded in the existing SAP S/4HANA infrastructure and comes without additional IT overhead.

 

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3. Decision factors: Which system is right for you?

Several factors play a role in choosing the right warehouse management solution. Here is an overview to help you decide between SAP Stock Room Management, Basic EWM, and Advanced EWM:

Size and complexity of the warehouse:

• SAP Stock Room Management is ideal for smaller warehouses with simple processes. If your needs are limited to basic inbound and outbound processes and no complex automation or highly dynamic processes are required, SRM is a cost-efficient solution.
• Basic EWM is suitable for companies that need more functionality than SRM offers but do not need to support complex or highly automated warehouse processes. Standard processes such as inbound and outbound logistics, simple picking, and inventory management are supported, making it the perfect choice for small to mid-sized warehouses without complex requirements.
• Advanced EWM, on the other hand, is designed for warehouses with highly complex requirements and extensive automation. If your warehouse requires multiple locations, tight production integration, or the use of conveyor systems, Advanced EWM is the right choice.

Future-Proofing:

• SAP EWM is SAP's strategic solution and will be developed in the long term. For companies seeking a future-proof solution, EWM is the top choice. This is particularly true for businesses with growing complexity, where integration into production processes or a global warehouse structure is necessary.
• SAP Stock Room Management (SRM) offers a solid foundation and is free of charge for all SAP S/4HANA users. With no additional licence fees, SRM is a cost-effective and easily accessible option for companies with simple warehouse processes seeking a stable, integrated solution without high investment.

System Landscape:

• Embedded EWM: A cost-effective and straightforward solution seamlessly integrated into SAP S/4HANA, ideal for companies looking to embed their warehouse processes into a central ERP strategy. This variant eliminates the need for a separate system landscape, significantly reducing both IT costs and implementation complexity.
• Decentralised EWM: This variant is ideal for companies with multiple independent warehouse locations and a high need for fault tolerance and flexibility. Decentralised EWM allows separate SAP ERP systems to connect to a central EWM, offering greater fault tolerance and the ability to integrate complex automated processes. This option is particularly attractive for global warehouse structures where performance and independence are critical.

Costs:

• SAP Stock Room Management: The most cost-effective option for simple requirements. Implementation and operating costs are low as no separate infrastructure is required. SRM is available free of charge for all SAP S/4HANA users, with no additional licence fees.
• Basic EWM: Cost-effective for moderate complexity. Basic EWM is free for all SAP S/4HANA users and is only available as an embedded version, making it a cost-efficient choice for companies with moderate requirements.
• Advanced EWM: Higher implementation and operating costs but offers comprehensive functionality and maximum flexibility for large, complex warehouses with specific requirements, such as conveyor system integration or multi-client warehouses. It is especially attractive for high-throughput warehouses.

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Conclusion: A solution that fits your business

Choosing the right warehouse management solution depends heavily on your specific requirements. Whether SAP Stock Room Management (SRM) for simple processes, Basic EWM for moderate complexity, or Advanced EWM for highly complex, automated warehouses – each option has its strengths and should be aligned with your company's needs. SRM offers a cost-effective, fully integrated solution within SAP S/4HANA without additional licence fees – ideal for companies with basic requirements seeking a stable and efficient solution. Basic EWM is also licence-free and supports companies with moderate requirements needing basic warehouse processes and higher flexibility. Advanced EWM is designed for companies with complex warehouse needs and high levels of automation. With features like yard management, material flow control, and high-bay warehouse automation, it provides maximum flexibility for companies whose profits are directly tied to warehouse throughput.

Possible scenarios include choosing SRM for small, less dynamic warehouses that require a cost-effective solution without complex implementation. Basic EWM is an attractive choice when an existing SAP S/4HANA system is being used for a medium-complexity warehouse environment. Advanced EWM is particularly recommended for global companies managing various locations with complex automation solutions and high demands on efficiency and performance.

 

A thorough analysis of your warehouse needs is key to ensuring long-term efficient and future-proof warehouse management. Contact us to identify the right solution for your company and lay the foundation for your future competitiveness.