| Status | Approved |
| Owner | |
| Stakeholders |
Issue
Syensqo currently operates on the SAP ECC platform, utilizing the SAP Warehouse Management (WM) solution for its logistics and inventory management processes. SAP WM is serving as the backbone of their warehouse operations for packed items. This includes handling tasks such as goods receipt, putaway, picking, and inventory tracking.
However, looking at the future (transition to SAP S/4HANA), SAP WM becomes obsolete and new possibilities emerge.
Recommendation
With implementing basic SAP Extended Warehouse Management (Option B), Syensqo will have a future proof warehouse management solution in place.
Background & Context
Below an overview of the SAP Warehouse Management Systems (WMS) are displayed:
Acronym / Term | System | Definition |
SAP Warehouse Management (WM) | ECC | This is the Warehouse Management solution in ECC which is currently used by Syensqo. |
SAP Stock Room Management | S/4 HANA | This is the new name of the -older- SAP WM solution for S/4HANA. Note that this solution is no longer on the roadmap of SAP. This means that SAP won't further invest in this solutions and no more improvements are expected. |
SAP Extended Warehouse Management (EWM) | S/4 HANA | This is the new Warehouse Management Solution in S/4 HANA. |
Not all warehouses at Syensqo are required to use a Warehouse Management System. Warehouses which are not using a Warehouse Management Solution will manage stock at Inventory Management level:
Acronym / Term | System | Definition |
SAP Inventory Management (IM) | ECC and S/4 HANA | In general this means maintaining stock levels of different materials on both quantity and value level. There is no additional warehouse management layer to manage stock at specific location management and to manage warehouse activities in more detail. |
A additional comparison between Warehouse Management Systems and Inventory Management is displayed:
| Criteria | Inventory Management (IM) | Warehouse Management Systems |
|---|---|---|
| General | Focuses on overseeing and controlling inventory. | Deals with the physical aspects of storing and moving goods within a facility. |
| Stock Accuracy | Further segregation of inventory is possible on the level of:
| In addition to the levels of IM, a WMS will add the physical location component for detailed stock monitoring. |
| Warehouse Execution | Registration of goods receipts, goods issues and stock corrections. Also managing the different stock types (e.g. quality inspection stock, blocked stock). | In addition to the levels of IM, a WMS is used to manage warehouse processes in more detail. This means the system will guide the warehouse operator during picking, packing an putaway execution. |
| Real Time Visibility | Real time visibility of in and out movements. | In addition to the levels of IM, every physical movement from location A to location B in the warehouse is registered using mobility devices. This provides real time visibility on a more detailed level. |
Assumptions
- The SAP S/4 HANA implementation is a green field implementation. Therefore the deployment approach of warehouse management system in an S/4 HANA migration is not considered.
- To be in line with the standardization goals of Syensqo, only one of the options outlined in this document will be selected for implementation.
- Not every warehouse will required a Warehouse Management System. These decisions on warehouse level will be taken during detailed design based on the business rules described in this document.
SAP EWM offers different deployment options. Based on below explanation, decentral EWM is not further considered in this document.
- Embedded EWM: EWM is embedded within the SAP S/4HANA system. Embedded EWM is suitable for simpler warehouse processes and organizations looking for tighter integration between logistics and other business processes.
- Decentral EWM: EWM is deployed as a standalone system separate from the core SAP S/4HANA system. It provides advanced warehouse management capabilities. Decentralized EWM is advised for companies offering 3PL functionalities, warehouse automations and/or high volumes.
- Embedded EWM: EWM is embedded within the SAP S/4HANA system. Embedded EWM is suitable for simpler warehouse processes and organizations looking for tighter integration between logistics and other business processes.
Constraints
Impacts
- Lean warehouses are existing currently in WP1. This solution won't be used anymore in the future. These warehouses will be inventory managed or warehouse management, based on the business rules defined in this document.
- Descision of basic/ advanced TM will impact integration of EWM and TM:
- Basic EWM has can easily integrate with basic TM ASN; loading RF using freight order (not outbound delivery), the information of freight order is considered in the monitor e.g reporting
- Advanced TM and basic EWM; no integration.
Business Rules
5 criteria to define if the warehouse require a warehouse management system. These criteria will be also used for spare parts warehouses and R&I centers. (spare parts adviced to handle in a light ewm solution)
what with 3PL?
- Is stock management required at storage bin level? Number of storage bins.
- Volume
- nr of warehouse operators
Options considered
Option A: Stock Room Management
Option B: Basic Extended Warehouse Management
Option C: Advanced Extended Warehouse Management
same as embedded, using extra functionalities; VAS, kit to order, cross docking
Evaluation
Strategic Choice: Implementing SAP EWM provides a future-proof solution to support Syensqo’s warehouse management processes. Given the fact that Syensqo's strategic priorities do not center around warehouse management, it is expected that the basic functionalities of SAP EWM will be sufficient.
SAP EWM is a solution which can handle more complex warehouse management processes. However it is recommended for Syensqo to implement a limited scope. Later phases can expand functionality as needed, including advanced features.
Option A: SRM | Option B: Basic EWM | Option C: Advanced EWM | |
|---|---|---|---|
| Functionality and complexity |
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| Integration |
|  Con |
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| Scalability and future growth | Con | Con | Con |
| Implementing effort and Change Management | Con | Con |
ProSee also
KDD TM
Change log
Workflow history
| Title | Last Updated By | Updated | Status | |
|---|---|---|---|---|
| There are no pages at the moment. | ||||