The Role of SAP Extended Warehouse Management (EWM) in Enhancing Supply Chain Visibility

Businesses that rely heavily on their supply chains are constantly on the lookout for the latest technology to improve their supply chain management. The right technology or tool is key to building high-performing supply chains, which directly impacts a business's revenue. Studies have shown a clear connection 79%* of businesses report that better supply chain performance leads to more revenue.

Multiple studies emphasize the importance of optimizing supply chains, highlighting benefits such as achieving 15%* lower supply chain costs, reducing inventory holdings by 50%*, and accelerating cash-to-cash cycles by three times.

As we discuss technology solutions for achieving high-performing supply chains, one powerful tool that has emerged in the market is SAP Extended Warehouse Management (EWM). This advanced solution is revolutionizing the way businesses manage their supply chains by addressing the critical issue of poor supply chain visibility. 57% of businesses report being troubled by inadequate visibility across their supply chains. Thus, businesses that are striving for greater visibility, transparency, and efficiency in their supply, will find immense value in SAP EWM.

Understanding SAP EWM

SAP Extended Warehouse Management (EWM) is a comprehensive software solution designed to manage and optimize warehouse operations. Unlike traditional warehouse management systems, SAP EWM offers advanced features and functionalities that enable businesses to achieve higher levels of efficiency and accuracy. It integrates seamlessly with other SAP modules, such as SAP S/4HANA and SAP ERP, providing a unified platform for end-to-end supply chain management.

Key Features of SAP EWM

1. Real-Time Inventory Tracking: SAP EWM offers real-time visibility into inventory levels across multiple locations. This allows businesses to track the movement of goods accurately and make informed decisions.
2. Advanced Slotting and Rearrangement: With SAP EWM, companies can optimize warehouse space by dynamically slotting and rearranging products based on demand and other factors. This improves space utilization and reduces handling times.
3. Labor Management: The solution includes tools for managing warehouse labor more efficiently. It helps in planning and monitoring workforce activities, ensuring optimal productivity.
4. Yard Management: SAP EWM provides features for managing the yard, including the arrival, departure, and movement of trucks. This enhances coordination and reduces delays in the supply chain.
5. Cross-Docking: The system supports cross-docking operations, enabling goods to be transferred directly from receiving to shipping, minimizing storage time and costs.

Enhancing Supply Chain Visibility with SAP EWM

1. Integrated Processes: SAP EWM integrates with various supply chain processes, providing a holistic view of the entire operation. This integration ensures that all stakeholders have access to accurate and up-to-date information, enhancing decision-making.
2. Improved Data Accuracy: By automating data collection and reducing manual entry, SAP EWM minimizes errors and discrepancies. This leads to more reliable data, which is critical for maintaining supply chain visibility.
3. Real-Time Reporting and Analytics: The solution offers robust reporting and analytics capabilities, allowing businesses to monitor key performance indicators (KPIs) in real time.
4. Enhanced Collaboration: SAP EWM facilitates better collaboration between different departments and partners. With shared access to information, teams can work together more effectively, improving overall supply chain performance.
5. Scalability and Flexibility: As businesses grow and their needs change, SAP EWM can scale and adapt to new requirements. This flexibility ensures that companies can maintain visibility and control over their supply chains, regardless of size or complexity.

Benefits of Implementing SAP EWM

1. Increased Efficiency: Using SAP Warehouse Robotics, SAP EWM can integrate robots as easily as plug and play. The solution automates and optimizes warehouse processes, reduces costs, and improves service levels. A study predicts that by 2025, the impact of robotics on logistics will boost productivity by 25% to 70% and reduce logistics costs by 20% to 40%.**
2. Greater Accuracy: With real-time tracking and accurate data, companies can reduce errors and improve the reliability of their supply chain operations.
3. Enhanced Customer Satisfaction: Improved visibility and efficiency lead to faster order fulfillment and more reliable deliveries, enhancing customer satisfaction. 68%*** consumers are willing to pay more for products and services from brands known for providing excellent customer service experiences.
4. Reduced Operational Costs: By optimizing space utilization, labor management, and inventory levels, SAP EWM helps businesses reduce operational costs and increase profitability.

Conclusion

In conclusion, SAP Extended Warehouse Management (EWM) plays a pivotal role in enhancing supply chain visibility and warehouse management. Its advanced features and integration capabilities provide businesses with the tools they need to achieve greater transparency, efficiency, and control over their operations. By implementing SAP EWM, companies can not only improve their supply chain performance but also gain a competitive edge in the market.

Investing in SAP EWM is a strategic move that can deliver significant long-term benefits. If you are looking to enhance your supply chain visibility and drive operational excellence, consider exploring the capabilities of SAP EWM.

With over 20 years of industry experience and expertise as a certified SAP Silver Partner, Jade Global offers a comprehensive suite of SAP Professional Services combined with business process expertise to help you become an Intelligent Enterprise.

We simplify your SAP EWM journey from planning to execution, ensuring a seamless implementation into your IT landscape. By integrating SAP EWM with your existing SAP, third-party, or on-premises systems, we tailor the solution to meet your unique business requirements and drive innovation.