The document provides an overview of the SAP EWM Solution along with its benefits, value propositions, capabilities as well as other aspects. The discussion also covers the key EWM baseline configurations as well as preparing the master data required.

1. INTRODUCTION TO THE
SAP SCM EWM SOLUTION

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CONTENTS
INTRODUCTION TO EXTENDED WAREHOUSE MANAGEMENT (EWM) SOLUTION ------------------------------------------------2
1. Why Utilize The SAP Extended Warehouse Management (EWM) Solution? ----------------------------------------------------2
2. Typical System Landscape------------------------------------------------------------------------------------------------------------------------------4
Deployment Options – SAP EWM: -----------------------------------------------------------------------------------------------------------------------4
3. Warehouse/DC Structure in SAP EWM -----------------------------------------------------------------------------------------------------------5
Warehouse Number: -------------------------------------------------------------------------------------------------------------------------------------------6
Storage Type:------------------------------------------------------------------------------------------------------------------------------------------------------6
Storage Section: -------------------------------------------------------------------------------------------------------------------------------------------------6
Storage Bins -------------------------------------------------------------------------------------------------------------------------------------------------------7
Activity Areas -----------------------------------------------------------------------------------------------------------------------------------------------------7
Quants ---------------------------------------------------------------------------------------------------------------------------------------------------------------8
4. EWM Master Data – Overview------------------------------------------------------------------------------------------------------------------------9
5. ERP & EWM Master Data - Elements ------------------------------------------------------------------------------------------------------------14
Material Master / Product Master: -------------------------------------------------------------------------------------------------------------------14
Business Partners: --------------------------------------------------------------------------------------------------------------------------------------------14
Supply Chain Unit:--------------------------------------------------------------------------------------------------------------------------------------------15
Packaging Specifications:---------------------------------------------------------------------------------------------------------------------------------15
6. Basic EWM Configurations---------------------------------------------------------------------------------------------------------------------------16
Warehouse Number: -----------------------------------------------------------------------------------------------------------------------------------------17
Storage Types: --------------------------------------------------------------------------------------------------------------------------------------------------19
Storage Sections: ----------------------------------------------------------------------------------------------------------------------------------------------21
Storage Bins: ----------------------------------------------------------------------------------------------------------------------------------------------------21
Activity Areas: --------------------------------------------------------------------------------------------------------------------------------------------------23

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INTRODUCTION TO EXTENDED WAREHOUSE
MANAGEMENT (EWM) SOLUTION
1. WHY UTILIZE THE SAP EXTENDED WAREHOUSE MANAGEMENT (EWM)
SOLUTION?
Let us begin by considering the key players of the global supply chain – Shippers & Logistics Service
Providers. These key players require streamlined material flow as well as complete transparency at any
point to determine where their materials/shipments are located. They require tight warehousing & DC
Operations.
The SAP Extended Warehouse Management (EWM) solution helps them achieve this by enhancing
inventory & storage management processes. It also supports goods movements by all modes of
transportation. With SAP EWM, you can gain control over your DC efficiency, transform your
operations & increase your competitiveness by huge leaps & bounds.
With SAP EWM, you can:
 Control movements in the warehouse (from point-of-goods receipt to goods issue) and in the yard
(from the time a trailer checks-in to check-out including all processes around planning and
monitoring, Radio Frequency support, Serial Number Utilization, Resource Management, and Labor
Management).
 Manage and control your Material Flow System.
Can control warehouse/DC processes & manage the internal movements in the DC as well as
movements of trucks/trailers/containers in your yard. With the new SAP Supply Chain Execution
platform, SAP has managed to integrate SAP Transportation Management (TM), SAP EWM & SAP Event
Management (EM) as well as the entire SAP Connected Logistics package to manage the entire DC &
Logistics.
Mitigate problems & issues with improved DC efficiency.
Transform DC operations into an adaptive, agile & a “rapid action” supply chain wherein all resources
can be shared thereby promoting seamless visibility.
Respond faster to challenges & changes in supply & demand – improving competitiveness.

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Figure 1: E-Commerce DC Structure
Figure 2: Overview – DC Support Functions
Internal processes of a DC/Warehouse are equally as important as the main inbound & outbound
operations. Unless & until the material is not correctly maintained or stored, it would always be a
challenge to retrieve them or carry out physical inventory, if required.

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2. TYPICAL SYSTEM LANDSCAPE
Figure 3: System Landscape
Figure 3 above shows a possible system landscape for SAP EWM wherein EWM is installed together
with SAP Transportation Management & SAP Event Management as an application based on SAP
Net Weaver. With this landscape, you can install SAP S/4HANA instead of SAP ERP.
There are various other system landscapes that can be installed. But this basically is governed by client
requirements or what the scope of the implementation project involves.
DEPLOYMENT OPTIONS – SAP EWM:
SAP EWM can be deployed on an ECC Server or, alternatively, as an application on the Supply Chain Management
(SCM) landscape. It is integrated with ECC to access transaction & masterdata. This is required to use the features
such as slotting or availabilitycheck.This requires integration with CRM as well.

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EWM can also be deployed as a separate application as well & may share the same server with the SCM
applications such as APO etc. Finally, another deployment option available forEWM is as a stand – alone
application on its own SCM server. This allows for much improved performance.
Figure 4: Systems Architecture
3. WAREHOUSE/DC STRUCTURE IN SAP EWM
Figure 5: EWM Organization Structure
Now that we have seen an overview of the types of organizational units that are set up in SAP EWM, we
can cover each of these organizational units in further detail. Before I continue, let me just inform you
that in the SAP EWM solution, a single warehouse number (4 – digit code) can identify an entire
warehousing complex.

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WAREHOUSE NUMBER:
Each Warehouse/DC consists of a warehouse number (XXXX) which is the highestorganizational level in the
EWM system. Each warehouse number (XXXX) consists of type of a ‘sub – structure’ that maps the entire
Warehouse/DC relationships.
STORAGE TYPE:
We also need to maintain Storage Types(YYYY) where products are physically storedin a Warehouse/DC viz.
Open Storage, Goods Receipt Area,Goods Issue Area, Racks & so on. Storage Types are the next level directly
below the warehouse number (XXXX).
Some examples of the Storage Types are mentioned in the list below. They are generally based upon processes,
activities, bulk storage, fixed storage etc. Standard EWM has the following default options for Storage Types –
 High Rack Storage
 Rack Storage
 Rack Storage – Near Fixed Bin
 Hazardous Substances Storage
 Pallet Storage
 Bulk Storage
 Fixed Bin Storage etc.…
STORAGE SECTION:
This is a part of the storage type mentioned above. It represents a group of bins with the same characteristics.
Commonly used Storage Sections are ‘fast-moving items’/’slow-moving items’ & so on.
Figure 7: EWM Storage Sections
Other possible Storage Sections may include heavy parts, bulky parts, spares & so on. These Storage Sections
help join bins together for the purpose of, say, put – away.
Figure 6: DC Racking

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STORAGE BINS
From Storage Sections,we move on to the lowest physical organizational element in SCM EWM, viz. Storage
Bins. These represent actual physical locations of storage space wherein products are storedin the Warehouse/DC.
When a product is stored in the Warehouse/DC, one needs to specifically mention the exact bin location. This is
done by mentioning the exact coordinates of the StorageBinviz. 02-02-03 (shown below).
Figure 8: Storage Bins
ACTIVITY AREAS
Storage Bins can be further ‘categorized’ into ActivityAreas. These are the newest additions to the enterprise
structure in SAP EWM.
In these areas, Warehouse/DC operators execute various activities like put – away, picking or physical inventory.
As per the activity, you can assign the same StorageBins to multiple ActivityAreas. These are actually the
physical/logical subdivisions in a Warehouse/DC.They are used to form logical groupings of single Storage Bins
or multiple Storage Bins from several Storage Types.
The bin(s) that is/are part of the Activity Area require the following attributes to be maintainedfor considerations
within the ActivityArea. These are as follows:
 Aisle
 Stack
 Level
 Bin subdivision
 Depth
 Information about Storage Type
 Any assigned deconsolidation groups
The user can sort the assigned Storage Bins into any desired sequence & assign as many activities as are required
to the collection of StorageBins.This will make it more convenient for identifying & carrying out the activity.

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QUANTS
The quantity of goods with the same characteristics in one storage bin,resource & transportationunit, is
represented by a Quantin SAP EWM. Different batches of a product are handled as different quants.It is basically
used for managing the inventory in a Warehouse/DC. It’s always system – generated.
A quant in SAP EWM can only be created & deleted using movements. The user can increase the quantity of a
quant by adding to the existing stock in the bin. If the user puts away stock in an empty bin, the system generates
a new quant in the storage bin. If, on the other hand, a user removes the quantity from storage, the system
automatically deletes that quant.The quantrecord includes the following information about the collected
products:
 Quant identification
 Number
 Batch Number
 Stock Category Type
 Stock Category
 Usage
Figure 9: Pictograph - EWM GR & GI
OverviewofGR & GIprocessesinEWM
1. GR (Goods Receipt)
a. Truck docks at a receiving dock door of the DC.
b. Items are unloaded & staged in the ‘GR Zone’, Storage Type 9020 (Based upon configuration settings)

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c. Items are put away confirmed, say, in the ‘High Rack Storage Area’, Storage Type 0010 (Based upon
configurations) or the ‘Bulk Storage Area’, Storage Type 0040 (Based upon configurations).
2. GI (Goods Issue)
a. Truck docks at a loading door of the DC.
b. Items are picked from their Source Bins / Source Storage Type 0050 which is the ‘Fixed Bin Storage Area’.
c. Once picked, the materials are packed & moved to ‘GI Zone’, Storage Type 9100 (Based upon configurations).
d. From there, they are loaded in the truck and goods issue is posted.
4. EWM MASTER DATA – OVERVIEW
While dealing with EWM Master Data, the main (leading) system is always ECC from where master data viz.
Material Master, Vendor Master, CustomerMaster & so on is transferred to the EWM system. Some key points
related to EWM Master Data:-
 Not possible to create new Material Master Records in EWM
 No standard way to transfer a new material created in EWM back to ECC
 Any changes done in the product in EWM is not reflected back in ECC
In order to transfer master data from ECC to EWM, a tool used in the SCM APO system is basically reused. This
tool is termed as CIF (Core Inter-Face). EWM has been developed on an SCM base. Therefore,it made sense to
SAP to use the same tool as was used in APO for the master data.
EWM also requires transactional & movement data. But these movements are using a different & separate
integration model. CIF can also transfer transactional & movement data but its only for APO not for the EWM
solution.
Master data that are transferred to EWM system from ECC through CIF are as follows:-
 Material
 Plants (if required)
 Batches (if there are batch – managed materials)
 Customers
 Vendors
 Shipping Points &
 Classifications (for materials with batches)
The figure on the next page (Fig. 10) shows the CFM1 (Create IntegrationModel) screen that is used to create
an integration model & CIF master data to the EWM system from the ECC system.

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Figure 10: CFM1 Screen
We will not have a detailed discussion on how the CIF activity works since there is plenty of documentation
available on that process. What I am going to do is give an overview of the process along with very brief steps on
how it can be done. There will be no detailed discussion on this.
If we were to consider an example of a CIF activity, a good start would be to consider how the material master
records are moved from ECC to EWM. In this case, we need to flag the Materials field & we need to enter the
selection criteria of the material (Fig. 11). You can use whatever selection criteria are required to transfer the
materials. But, in reality, you will rarely transfer all of the materials (no selection criteria).
You will probably end up transferring data only if the material master records that are to be transferred have
been changed / updated. Therefore,your selection criteria needs to be as specific as is possible so that data can
be transferred in a more optimized way.
As can be seen in Figure 11, the Materials & Plants indicators / flags are next to each other. If, in any case, you
need to transfer plant specific data as well as the materials into EWM, ensure that a plant is also mentioned in
the selection area highlighted above. This will allow you to define a more specific model that includes plant
specific data as well.
If no plant is mentioned, the model will transfer data of all plants available in the ERP system to the SCM system
& they would exist there as locations.

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Figure 11: CFM1 Initial Screen
Considering this, there are two questions that might arise in your minds – (a) Why is the plantfield placed
next to the material field? And, not in the same section as ‘Shipping Point’ or ‘Vendor’? (b)Do we really
need this?
In order to answer the questions, we need to re–visit the material master data. As you are aware, material master
data consists of various fields. These fields are organized into different views. These views describe for which
business aspect/activity the fields are being used e.g. Company Code, Sales, Purchasing, Accounting & so on.
For the CIF activities, two groups of fields are relevant & utilized. These are mentioned below:-
 Fields on the Client level viz. Material name, weight, volume etc. (In essence, all data & information
related to the material stored in MARA table).
 Fields at the Plant level organized in MRP views.
When the material gets transferred to a connected SCM system, they assume the description of Products. You
execute transaction /n/SAPAPO/MAT1 wherein you can check the Product Master & view the difference
between GlobalData View & LocationData View. This is shown in screen shots available on the next page.

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Figure 12: /n/SAPAPO/MAT1 - Initial Screen (“Global” Data)
Figure 13: Product Master - Subsequent Screen
The Global View (just the product) corresponds to the master data maintained at the Client – level. On the other
hand, the Location View, also called Location Product, which requires that you enter the location as well, shows
the information maintained in the MRP views. This is basically referring to a plant, always.
The important thing to remember in case of the EWM system is we do not need this information. We do not
need a Location Product. This (Location Product) is important for the SCM system that uses APO functionalities.
For the EWM system, all we really need is the product. Therefore, this helps us reduce the data that needs to be

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transferred to the EWM system significantly if its decided to transfer only the Client – level data. So, what are the
steps required for doing that?
Well, first off, you do not need to mention a plant code during the selection of transaction CFM1. If desired, the
plant code may be entered in the selection criteria for the material. In this way, data & information that is
specific to the plant maybe transferred into the EWM system. Secondly, ensure that you enter a “Warehouse
Number” in the corresponding field in the selection criteria. This is shown in Figure 14 below:-
Figure 14: CFM1 Transaction with “Warehouse Number”
The field marked in Figure 14 above is a marker for CIF that the target system is an EWM system & that no plant
data of the material needs to be transferred. If you have still entered a plant code as well as entered a plant code
in the selection criteria, the plant will be transferred & a location will be created in EWM. But there will not be a
Location Product.
You cannot just enter any warehouse number in that particular field. In order for the data to get transferred
correctly into EWM, the ECC warehouse number selection has to be linked to an EWM warehouse number as
well. This is mandatory. There is a separate table in customizing for linking the ECC warehouse to the EWM
warehouse. The system does not really validate the EWM warehouse number. Nonetheless, its recommended for
consistency that the table be maintained properly & accurately. If we further consider the material / product, it
does not really matter if the material / product is stored in more than one EWM warehouse. The material master
is only transferred once into EWM. This allows the product to be active in all warehouses in the EWM system.
Therefore, you can select any warehouse that is actually maintained in that table.

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5. ERP & EWM MASTER DATA - ELEMENTS
We can now move into the individual master data elements in EWM & talk in further details about them. First,
let us consider a brief summary of the master data elements available in ECC & EWM. These are listed in the
table below.
MATERIAL MASTER / PRODUCT MASTER:
As a review – Material Masters from ECC become the Product Masters in EWM.
 Core data elements are copied from ECC in to EWM
 Other data elements are specific for EWM system only & are maintained in the EWM system
 Conceptually similar to the different views maintained in ECC Material Master
 Maintained via transaction /SCWM/MAT1
 5 EWM Views –
 Packaging data
 Storage
 Warehouse data
 Slotting
 Storage Type data
BUSINESS PARTNERS:
ERP Customers, Vendors & Plants become Business Partners in EWM.
 Maintained via transaction BP
 All business partners are created with General Role assignment
 Contains name, address, partner type
 Other BP role types are also created for various purposes viz. Vendor, Sold-To party, Ship-To party, Plant etc.
 Creation of business partners is taken care of automaticallyby CIF interface
 Changes to the business partner data i.e. Address change etc. does not get sent back to the ECC system. Changes do
not reflect in the ECC system
 Any change to ECC – source data in ECC will result in overwriting of any values that were changed in the EWM system

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SUPPLY CHAIN UNIT:
A Supply Chain Unit (SCU) is an EWM – specificmasterdata element for the EWM organizational hierarchy
 Maintained via transaction /SCMB/SCUMAIN
 Carry – over concept from SCM APO, so not all elements are fully utilized in EWM
 SCU is assigned a category / type –
 Plant
 Shipping Point
 Receiving Point
 Customer
 Vendor etc.
 Always linked to a business partner
 Also assigned a business attribute
 Door
 Stock location
 Warehouse
 Planning location
 Shipping office etc.
 Mandatory to set up for – Plant, Shipping Point, Warehouse
 Establish a hierarchy
 Plant >> Warehouse >> Shipping Point
PACKAGING SPECIFICATIONS:
Master data element / document which contains information on how to package a product for storage or pack a
product for shipping. It contains –
 Product & quantities
 Combination of packing materials & work steps
 Can contain multiple levels with specified target quantities for each level
 The packaging specification describes in which quantities you can pack the product into which packaging materials in
which sequence.
 Can be used in inbound, outbound & / or internal processes
 Printed. Can provide exact instructions for the warehouse employee on how to pack a product (i.e. Where to place the
label on the box or, how to stack on the pallet)
 Abilityfor multiple packaging specifications per product. Allows for flexibilitywith packaging specification
determination
 Condition techniques used in EWM, i.e. Based upon Ship-To party, Route etc.

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6. BASIC EWM CONFIGURATIONS
What we are going to cover in this section are the basic EWM settings required, or the baseline configurations
required in any EWM implementation project. If you recall, we discussed the basic warehouse / DC structure in
EWM earlier in the session. Well, I am going to try to provide the various nodes in the system where these
enterprise structural elements can be setup. In this class, I will just provide the screen shots from the SAP
system.
Before one is to implement EWM, one must define as well as map out the actual physical structure of the
warehouse / DC / warehouse complex in the system. The SPRO path that defines the steps for the basic
configurations is shown in the screen cap below.
Configuration Activity SAP S/4 HANA Path
SCM EWM Enterprise Master
Data
SAP IMG  SCM Extended Warehouse Management  Extended Warehouse
Management  Master Data
1) Define Warehouse Numbers
2) Define Storage Type
3) Define Storage Section
4) Storage Bins  Define Storage Bin Types
5) Activity Areas  Define Activity Area
6) Activity Areas  Assign Storage Bins to Activity Areas

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Figure 15: EWM IMG Path
WAREHOUSE NUMBER:
Configuration
Activity
SAP S/4 HANA Path
EWM Warehouse
Number
SAP IMG  SCM Extended Warehouse Management  Extended Warehouse Management 
Master Data  Define Warehouse Number
A warehouse number summarizes storage types and storage bins that are organizedand managed together. All
operations in a warehouse complex / DC, such as put away, stock removals & so on are executed undera 4– digit
EWM warehouse number.
A warehouse number has the following attributes:
 Has a short description but no address
 Can store warehouse - specific Product data.
 Within a warehouse number, stocks are managed on a quantity basis & not on a value basis.
The weight unit, volume unit as well as the time unit are defined at the warehouse number level. Furthermore,
definition of determination procedures for palletization data & packaging specifications can be set here. The screen
capture for this is shown in Figure 18: EWM - WH Number Controls.

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Figure 16: Define Warehouse Number
Configuration
Activity
SAP S/4 HANA Path
EWM Warehouse
Number
SAP IMG  SCM Extended Warehouse Management  Extended Warehouse Management 
Master Data  Assign Warehouse Number
Figure 17: Assignments: WH No./Business Partner

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Configuration
Activity
SAP S/4 HANA Path
EWM Warehouse
Number
SAP IMG  SCM Extended Warehouse Management  Extended Warehouse Management 
Master Data  Define Warehouse Number Control
Figure 18: EWM - WH Number Controls
STORAGE TYPES:
A Storage Type is a storage space, storage facility, or storage zone, which you define for a warehouse numberin
EWM. The Storage Type is a physical or logical subdivision of a warehouse complex, which is characterizedby its
warehouse technologies, space required,organizational form, or function. A Storage Type consists of one or more
Storage Bins.
Configuration
Activity
SAP S/4 HANA Path
EWM Storage Type SAP IMG  SCM Extended Warehouse Management  Extended Warehouse Management 
Master Data  Define Storage Type
Storage Types that form the Warehouse Complex / DC can be locatedin one or more buildings. One may manage
all storage types under a single Warehouse number.

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Figure 19: Define Storage Type
These storage types have been definedwith different control indicators for putaway & picking.At storage type
level, control indicators for controlling the material flows need to be set.
Figure 20: Storage Type Settings

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STORAGE SECTIONS:
Assign Storage Sections to a warehouse numberand a storage type. A Storage Section is an organizationalunit
within the storage type, which summarizes storage bins with common attributes forthe purpose of putaway.
The use of storage sections in a storage type is only mandatory if you use Storage SectionControl or Storage
Section Search in the storage type. These controls are only maintained in the storage type configurations.
Configuration
Activity
SAP S/4 HANA Path
EWM Storage Section SAP IMG  SCM Extended Warehouse Management  Extended Warehouse Management 
Master Data  Define Storage Section
Figure 21: Configuring 'Storage Section'
STORAGE BINS:
The Storage Bin is the smallest spatial unit in a warehouse. The Storage Binrepresents the exact position in the
warehouse where products are & / or can be stored.

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The ‘address’ of a Storage Bin is frequently derived from a coordinate system, a Storage Bin is often referred to as
a coordinate. For example, the coordinate 01-02-03 could be a Storage Bin in aisle 1, stack 2 & level 3.
When a Storage Binis setup, a warehouse / DC number is to be assigned to it to identify which warehouse the
Storage Binis exactly located. Furthermore, a Storage Type as well as a Storage Sectionneeds to be assignedto
each Storage Bin.Other attributes that need to be definedfor a Storage Binare listed below:-
 Maximum Weight
 Total Capacity
 Fire – Containment Section (If required)
 Storage Bin Type (i. e. large / small pallets)
Configuration
Activity
SAP S/4 HANA Path
EWM Storage Bin SAP IMG  SCM Extended Warehouse Management  Extended Warehouse Management 
Master Data  Storage Bins  Define Storage Bin Types
Figure 22: Storage Bin Types
In some put away strategies, the Storage BinType plays an important role during optimization of the automatic
search for a Storage Bin, in connection with the pallet type. For example, you can define the put away strategy in
such a way that you put away large industrial pallets into special large bins, and smaller pallets into small bins.

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ACTIVITY AREAS:
ActivityAreas are logical organizational units in EWM that group storage bins based on clearly defined
warehouse/DC activities. Some examples of ActivityAreas include –
 Put Away
 Picking
 Inventory
They are used to provide logical sub – divisions in your warehouse/DC. In these ActivityAreas warehouse/DC
operators execute various warehouse activities, such as putaway or picking.
Storage Bins assigned to an ActivityArea use the following attributes –
 Aisle
 Stack
 Level
 Bin Sub – Division
 Depth
 Information about the Storage Type
 Any assigned deconsolidation groups
Configuration
Activity
SAP S/4 HANA Path
EWM Activity Areas SAP IMG  SCM Extended Warehouse Management  Extended Warehouse Management 
Master Data  Activity Areas  Define Activity Area
Figure 23: "Activity Areas"

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The Storage Bins assigned to an ActivityArea can be sorted in any sequence that is required by the business. Any
amount of activities can be assigned to these bins.
In order to work with ActivityAreas, you have to generate ‘binsorting’. This is done using the transaction
/SCWM/SBST(SortStorage Bin).
Figure 24: /SCWM/SBST (Bin Sorting)
The next step in configuring settings for ActivityAreas is assigning storage bins to the ActivityAreas.One can
assign storage bins explicitly or implicitly. Configuration path is mentioned below.
Configuration
Activity
SAP S/4 HANA Path
EWM Activity Areas SAP IMG  SCM Extended Warehouse Management  Extended Warehouse Management 
Master Data  Activity Areas  Assign Storage Bins to Activity Areas
Figure 25: Assign Storage Bins >> Activity Areas