Reading Sample

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Namita Sachan, Aman Jain

Warehouse Management with SAP S/4HANA (3rd Edition)
2022, 925 pages, hardcover and e-book
www.sap-press.com/5480
Zoellner, Halm, Schapler, Schulze

EWM with SAP S/4HANA: Architecture and Programming (2nd Edition)
Patil, Ramireddi, Komatlapalli

Extended Warehouse Management with SAP S/4HANA Certification Guide:
Application Associate Exam
2023, 527 pages, paperback and e-book
Lauterbach, Gottlieb, Helwig, Sürie, Benz

Transportation Management with SAP S/4HANA (4th Edition)
Justin Ashlock
Sourcing and Procurement with SAP S/4HANA (2nd Edition)
Shailesh Patil, Sudhakar Bandaru
Integrating EWM in SAP S/4HANA®

Contents
Preface ....................................................................................................................................................... 11
1 Introduction to Extended Warehouse

Management 17
1.1 What Is Extended Warehouse Management? .......................................................... 18
1.2 The Progression of Extended Warehouse Management ..................................... 22

1.2.1 SAP EWM with Non-SAP S/4HANA (SAP EWM 5.0 to
SAP EWM 9.5) ........................................................................................................... 22
1.2.2 Embedded EWM and Decentralized EWM ..................................................... 24
1.2.3 Cloud-Based SAP EWM ......................................................................................... 24
1.3 System Environment and Deployment Options ...................................................... 25
1.3.1 On-Premise ............................................................................................................... 26
1.3.2 Cloud Deployment ................................................................................................. 30
1.3.3 SAP NetWeaver Deployments ............................................................................ 32
1.3.4 Non-SAP ERP Systems with Decentralized EWM ......................................... 32
1.4 Data Transfers between SAP ERP or SAP S/4HANA and SAP EWM ................. 33
1.5 Integration with Other SAP Modules and Business Process .............................. 36
1.6 Industry Adoption of Extended Warehouse Management Solutions ........... 41

1.7 Significant SAP Notes on Deployment Options and Other
Functionalities ........................................................................................................................ 42
1.8 Summary ................................................................................................................................... 43
2 Production Planning 45
2.1 Overview of Production Integration ............................................................................. 46
2.2 Delivery-Based Production Integration ....................................................................... 50

2.2.1 Overview .................................................................................................................... 50
2.2.2 Staging for Manufacturing Orders ................................................................... 52
2.2.3 Consumption for Manufacturing Orders ....................................................... 71
2.2.4 Goods Receipt for Manufacturing Orders ...................................................... 74
2.3 Advanced Production Integration .................................................................................. 82
2.3.1 Staging for Manufacturing Orders ................................................................... 84
7
Contents
2.3.2 Consumption for Manufacturing Orders ....................................................... 106

2.3.3 Goods Receipt for Manufacturing Orders ...................................................... 108
2.3.4 Clear Production Supply Area Bin for Manufacturing Orders ................. 120
2.3.5 Create Part Replenishment Process ................................................................. 123
2.4 SAP Manufacturing Execution Integration ................................................................ 132
2.4.1 SAP Manufacturing Execution Triggered Staging to Production ........... 132
2.4.2 Integrating SAP EWM to SAP Manufacturing Execution and
SAP Manufacturing Integration and Intelligence to Receive
Goods from Production ........................................................................................ 134
2.5 Summary ................................................................................................................................... 135
3 Quality Management 137
3.1 Overview of Quality Management in SAP EWM ..................................................... 138
3.2 Inspection Product/Batch for Inbound Deliveries .................................................. 147

3.2.1 Inspection after Goods Receipts from External Procurement
(With Inspection Rule) .......................................................................................... 147
3.2.2 Pre-Sampling in Production or Inspection after Goods Receipt
from Production ...................................................................................................... 168
3.3 Warehouse Stock Inspections .......................................................................................... 175
3.3.1 Stock Inspections (With Inspection Rules) ..................................................... 175
3.3.2 Recurring Inspections (With Inspection Rules) ............................................. 184
3.3.3 Customer Return Inspections Using Advanced Returns
Management ........................................................................................................... 195
3.4 Important SAP Notes for Quality Management in SAP EWM ........................... 209
3.5 Summary ................................................................................................................................... 210
4 Transportation Management 211
4.1 Overview of Transportation Management Systems ............................................. 212
4.2 Shipping and Receiving in Inbound and Outbound Processes .......................... 217
4.3 Freight Order Integration .................................................................................................. 218

4.3.1 Inbound Process ...................................................................................................... 218
4.3.2 Outbound Process .................................................................................................. 233
4.4 Advanced Shipping and Receiving ................................................................................. 245
4.4.1 Inbound Process ...................................................................................................... 245
8
Contents
4.5 Shipment Integration .......................................................................................................... 273

4.5.1 Transportation Planning in an ERP System ................................................... 273
4.5.2 Transportation Planning in SAP EWM ............................................................. 288
4.6 Summary ................................................................................................................................... 302
5 Dock Appointment Scheduling 303
5.1 Overview of Dock Appointment Scheduling ............................................................. 304
5.2 Dock Appointment Planning ............................................................................................ 311

5.2.1 Inbound Process in SAP Dock Appointment Scheduling ........................... 311
5.2.2 Dock Appointment Planning in SAP EWM ..................................................... 324
5.3 Summary ................................................................................................................................... 344
6 Warehouse Automation Systems 345
6.1 Overview of Warehouse Automation Systems ........................................................ 346
6.2 Material Flow Systems ........................................................................................................ 349

6.2.1 Inbound Process ...................................................................................................... 350
6.3 SAP Warehouse Robotics ................................................................................................... 391
6.4 Automated Storage and Retrieval Systems ............................................................... 393

6.4.1 Integration with a Material Flow System ....................................................... 394
6.4.2 Integration with Automated Guided Vehicles ............................................. 395
6.5 Automated Guided Vehicles ............................................................................................. 397
6.6 Summary ................................................................................................................................... 399
7 Yard Logistics 401
7.1 Overview of Yard Logistics ................................................................................................ 402
7.2 Using SAP Yard Logistics ..................................................................................................... 407

7.2.1 Inbound Process ...................................................................................................... 407
7.3 Summary ................................................................................................................................... 442
9
Contents
8 Environmental Health and Safety 443
8.1 Overview of Environmental Health Safety ................................................................ 444
8.2 Goods Receipt and Goods Issue Process Using SAP EHS Management ......... 447
8.2.1 Inbound Process ...................................................................................................... 448
8.3 Summary ................................................................................................................................... 467
9 Plant Maintenance 469
9.1 Overview of Plant Maintenance ..................................................................................... 470
9.2 Using Plant Maintenance Orders ................................................................................... 474

9.2.2 Inbound Process ...................................................................................................... 489
9.3 Summary ................................................................................................................................... 501
10 SAP Advanced Track and Trace for

Pharmaceuticals 503
10.1 Overview of SAP Advanced Track and Trace for Pharmaceuticals .................. 504
10.2 Using SAP Advanced Track and Trace for Pharmaceuticals with
SAP EWM and SAP S/4HANA ............................................................................................ 509
10.2.1 Inbound Process ...................................................................................................... 509
10.3 Summary ................................................................................................................................... 530
The Authors ............................................................................................................................................ 531

Index .......................................................................................................................................................... 533
Service Pages ..................................................................................................................................... I

Legal Notes ......................................................................................................................................... I
10
Preface
In today’s fast-paced and ever-changing business environment, organizations are con-

stantly looking for innovative ways to optimize their supply chain processes and
improve the efficiency of their warehouses. Real-time warehouse operations are closely
intertwined with other business functions such as transportation management, produc-
tion processes, quality control, yard management, advanced track and trace, and plant
maintenance. These core business processes are often implemented using SAP software.
For modern warehouse management, what are known as extended warehouse manage-
ment (EWM) solutions are required. Within the realm of SAP, SAP Extended Warehouse
Management (SAP EWM) is a specialized solution that caters to the unique require-
ments of managing warehouse space. However, integrating your core business pro-
cesses in SAP with the warehouse management system (WMS) can be challenging. This
scenario is where the integration of SAP EWM in SAP S/4HANA is a top-notch solution
designed to address the evolving challenges faced by many organizations.
The integration of SAP EWM in SAP S/4HANA represents a transformative shift in ware-
house management practices. By leveraging cutting-edge technologies and advanced
functionalities, this integration streamlines operations, improves inventory accuracy,
and delivers exceptional customer service. It sets the stage for exploring the immense
potential of SAP EWM integration and its significant impact on modern supply chain
management.
Through the insights and knowledge shared by industry professionals, this preface
delves into the key drivers behind the adoption of SAP EWM in SAP S/4HANA. We’ll elu-
cidate the fundamental concepts involved in this integration and provide an overview
of the associated benefits and best practices. By showcasing real-world case studies and
success stories, we hope this book will inspire and equip business leaders, SAP consul-
tants, SAP architects, and supply chain practitioners with actionable insights to embark
on their SAP EWM integration journeys.
To provide a clear understanding into business processes, configuration, master data,
and process demos, we’ve set up a dedicated SAP EWM system, along with other mod-
ules like SAP Transportation Management (SAP TM), SAP Yard Logistics, and SAP
Advanced Track and Trace for Pharmaceuticals. This practical setup is designed to help
you grasp the concepts more effectively.
Objective of This Book

The main goal of this book is to provide a thorough exploration of integrating SAP
EWM with an SAP S/4HANA system and other SAP modules. These modules include
warehouse automation, production planning, and quality management as well as SAP
11
Preface
TM; SAP Environment, Health, and Safety Management (SAP EHS Management); yard
management; and plant maintenance. We hope to deliver a detailed and knowledge-
able account of the complexities and functionalities involved in combining SAP EWM
with the advanced capabilities of the SAP S/4HANA platform.
Through clear and understandable writing, the main objectives of this book include
providing valuable insights and deep knowledge to help you navigate the complex
world of SAP EWM integration in SAP S/4HANA with confidence and expertise.
The central idea of this book revolves around fostering a deeper understanding of the
interaction between SAP EWM and SAP S/4HANA, revealing the potential benefits that
arise from their integration. By using eloquent language and a rigorous analytical
approach, the book hopes to demystify the intricacies of SAP EWM integration, helping
you grasp the subject with a higher level of understanding.
Target Audience
The target audience of Integrating SAP EWM in SAP S/4HANA primarily consists of orga-
nizations, warehousing professionals, and EWM consultants who require a comprehen-
sive warehouse management functionality integrated directly into their SAP S/4HANA
enterprise resource planning (ERP) system. This solution is well suited for companies of
various sizes and industries that possess complex warehousing operations and need to
optimize their logistics processes.
The typical target audience for embedded Extended Warehouse Management in SAP
S/4HANA (embedded EWM) includes the following organizations:
쐍 Manufacturing companies
Organizations engaged in production and assembly processes often have extensive
warehousing requirements. Embedded EWM enables these companies to efficiently
manage inventory, track material movements, and optimize warehouse operations.
쐍 Distribution and logistics companies
Businesses specializing in distribution, warehousing, and transportation can benefit
from embedded EWM. This approach enables end-to-end visibility into the supply
chain, streamlines order fulfillment processes, and supports transportation man-
agement.
쐍 Retail and e-commerce companies
Both brick-and-mortar stores and online retailers require effective inventory man-
agement and order fulfillment capabilities. Embedded EWM helps optimize stock lev-
els, improve picking and packing processes, and facilitate efficient order processing.
쐍 Third-party logistics (3PL) providers
Companies offering outsourced logistics services often handle multiple clients and
complex supply chain requirements. Embedded EWM allows 3PL providers to man-
age diverse customer inventories, handle cross-docking scenarios, and support
value-added services.
12
Structure of This Book
쐍 Wholesale and distribution centers

Wholesalers and distributors deal with large volumes of inventory and require accu-
rate tracking, efficient storage, and streamlined order processing. Embedded EWM
offers functionalities such as wave picking, putaway strategies, and advanced slot-
ting optimization.
쐍 High-tech and electronics companies
Industries dealing with technologically advanced products, such as electronics and
high-tech manufacturing, often have complex supply chains. Embedded EWM pro-
vides real-time visibility into inventory, supports kitting and assembly processes,
and facilitates reverse logistics.
쐍 Pharmaceutical companies
Pharmaceutical companies working with pharmaceutical serialization generally
require track and trace solutions to meet regulatory requirements.
Structure of This Book

This book’s ten chapters cover the scope of embedded EWM in SAP S/4HANA 2021. Each
chapter primarily focuses on various business processes and scenarios, along with the
necessary configuration and master data requirements. Additionally, each chapter pro-
vides in-depth process demonstrations for relevant business processes.
The introductory section of this book provides an overview of SAP EWM and explores
the benefits of warehouse management, including different deployment options and a
comprehensive range of features. The chapters in the book encompass a wide range of
topics, including production planning, quality management, transportation manage-
ment, dock appointment scheduling, warehouse automation systems, yard logistics,
environmental health and safety, plant maintenance, and advanced track and trace.
The chapters are as follows:
쐍 Chapter 1
The main goal of this introductory chapter is to provide a thorough understanding
of SAP EWM, which serves as SAP’s warehouse management solution for numerous
industries. This chapter explores the various features and advantages offered by SAP
EWM, the evolution of SAP EWM, the system environment, and deployment options
provided by SAP for implementing SAP EWM as a warehouse management solution.
Additionally, we’ll cover data transfer techniques and industry adoption of SAP
EWM.
쐍 Chapter 2
The purpose of this chapter is to provide guidance on various methods to achieve
production integration and how these methods integrate embedded EWM. This
chapter primarily focuses on providing a detailed explanation of production inte-
gration methods, including delivery-based production integration and advanced
13
Chapter 1
Introduction to Extended Warehouse
Management
Our primary objective in this chapter is to introduce you to extended
warehouse management (EWM) and enable a comprehensive under-
standing of SAP Extended Warehouse Management (SAP EWM), SAP’s
warehouse management solution (WMS) across all industries. We’ll pro-
vide an overview of the solution and its history, then walk through
deployment options and integration approaches.
SAP EWM is a sophisticated software platform that enables enterprises to optimize

their warehouse operations, elevate productivity, and enhance supply chain manage-
ment. SAP EWM provides end-to-end transparency into warehouse processes, empow-
ering enterprises to manage inventory efficiently and effectively. The solution
presents a comprehensive array of functionalities, encompassing inbound and out-
bound logistics, wave management, yard management, and labor management. SAP
EWM is also fully integrated with other SAP solutions, such as SAP ERP, SAP S/4HANA,
and SAP Transportation Management (SAP TM), thereby offering the benefits of a fully-
integrated supply chain management solution.
One chief advantage of implementing SAP EWM is its integration with other SAP mod-
ule and business process and thereby its ability to boost operational efficiency. SAP
EWM provides advanced features such as automated storage and retrieval systems,
inventory tracking, and real-time visibility into warehouse operations. These capabili-
ties enable organizations to streamline their processes, reduce errors, and minimize
labor costs. SAP EWM also supports multichannel fulfillment, allowing you to fulfill
customer demands with quicker and more flexible delivery options.
SAP EWM offers various deployment options, including on-premise, cloud, and hybrid
deployments. You can select the deployment option that best suits your needs and
preferences. With its advanced features and flexible deployment options, SAP EWM is
a potent solution for enterprises seeking to optimize their warehouse operations,
enhance their supply chain management, and drive business growth. Because of its
ease of implementation, its features, and its integration with other SAP modules and
cross-functional business process, SAP EWM is gaining huge popularity across all the
industries.
17
1 Introduction to Extended Warehouse Management
This chapter delineates the various features and benefits offered by SAP EWM catering
to the business requirements of diverse warehouses across industries. We’ll cover the
advantages when considering SAP EWM as an implementation solution for your ware-
houses, including the return on investment it offers. Additionally, this chapter consid-
ers the progression and evolution of SAP EWM over the years, including the step-by-
step process and features added with every release.
Furthermore, this chapter imparts detailed information about the various deployment
options offered by SAP to implement SAP EWM solutions. This information can help
you identify the appropriate deployment option based on your business and ware-
house needs, resource availability, and investment considerations, both in the short
term and the long term. This chapter also encompasses diverse master and transac-
tional data techniques for bringing data from SAP ERP or SAP S/4HANA into SAP EWM
for deployment.
Towards the end of this chapter, you’ll understand the integration of SAP EWM with
various SAP modules and business processes across all industries, showcasing SAP’s
unique selling points. Finally, we conclude with a summary of how SAP EWM is being
accepted by customers across industries.
1.1 What Is Extended Warehouse Management?

SAP EWM is a sophisticated solution for efficiently managing warehouse operations.
You can digitally oversee your warehouse processes such as receiving, storage, goods
transportation, inventory tracking, and shipment, including shipments of products to
both customers and distribution centers. SAP EWM is tailor-made to meet the
demands of extensive and intricate warehouse and distribution networks dealing with
high volume and high velocity in goods movements. SAP EWM offers automated and
adaptable assistance for handling different types of goods movements and inventory
management within your warehouse complex. The system further streamlines logis-
tics processes within warehouses to enhance overall efficiency.
SAP EWM empowers you to digitally map your entire warehouse complex down to the
storage bin level, thus providing a comprehensive overview of product quantities
within your warehouses. The solution also enables your warehouse operation teams to
locate specific products within a warehouse complex at any time. Through SAP EWM,
warehouses can optimize storage bin usage and stock movements and even store stock
from multiple plants in a randomly managed warehouse.
The SAP EWM solution has emerged as a pivotal element in the storage and distribu-
tion operations of many organizations. This application enables you to leverage tech-
nologies that enhance transparency, maximize fulfillment efficiency, and improve
customer service, ultimately optimizing the business. Through SAP EWM, you can
streamline warehouse processes, improve inventory accuracy, and gain real-time visi-
bility into your supply chain operations. By harnessing the power of SAP EWM, your
18
1.1 What Is Extended Warehouse Management?
organization can more effectively manage its warehouse and distribution processes,
can reduce costs, and can enhance its overall competitiveness in the market.
SAP EWM utilizes powerful automation technologies and optimization techniques in
conjunction with logistics and fulfillment processes. The application encompasses all
aspects of warehouse and distribution management, including multichannel fulfill-
ment and distribution, inventory management and control, cross-docking processes,
labor management, and billing for companies of all sizes and across industries.
SAP EWM facilitates the efficient management of inbound and outbound processes, as
well as the management of storage and retrieval operations. The solution is particularly
well suited for businesses with high-volume warehouses and provides automated sup-
port for goods movement and inventory management. Procurement, shipping, pro-
duction supply, and receipt processes can be consistently organized and monitored,
with integration capabilities for quality management, transportation, and foreign-
trade compliance. Advanced functionalities such as value-added services, kitting, labor
planning and management, yard management, and analytics offer complete visibility
into inventory and logistics. Additionally, cross-docking, importing/exporting, quality
management, picking from goods receipts, and push deployments are included. SAP
EWM integrates easily with cutting-edge technologies, including pick by voice, aug-
mented reality (AR), radio frequency identification (RFID), material handling equip-
ment, automated guided vehicles (AVGs), and warehouse robots.
SAP EWM offers intelligent inbound processing management capabilities that optimize
key processes, such as the following:
쐍 Receipt and validation of advanced shipping notifications (ASNs)
쐍 Goods receipt and optimization of receipt processes
쐍 Determination of putaway and putaway bins
쐍 Internal routing for detailed modeling and tracking of warehouse movements
쐍 Deconsolidation to streamline putaway through sorting and packing goods during
receiving
쐍 Returns management, including for e-commerce, to efficiently identify and dispose
of returned goods back into the supply chain
쐍 Direct receipt from production
쐍 Transportation unit (TU) management
SAP EWM streamlines the management of storage and internal processing by offering
the following features:
쐍 Simple physical inventory processes and record validation to reduce inventory
counting efforts and manage inventory balances effectively
쐍 Slotting, replenishment, rearrangement, and stock consolidation capabilities to
optimize storage and improve facility utilization
19
Chapter 2
Production Planning
Production planning is a module within SAP’s enterprise resource plan-
ning (ERP) system to assist organizations in managing and planning
their manufacturing and production processes. The aim of this chapter
is to guide you through the various production integration methods and
how they integrate with SAP Extended Warehouse Management (SAP
EWM), especially embedded Extended Warehouse Management in SAP
S/4HANA (embedded EWM). We’ll outline the business processes for
each method, followed by a discussion of the configuration and master
data requirements needed to facilitate end-to-end testing of the busi-
ness scenarios. Finally, we’ll present a step-by-step process demo.
The production planning module provides support throughout the entire production
cycle, encompassing planning, scheduling, material requirements planning (MRP),
production execution, and monitoring. Integrating SAP EWM with the production
planning module helps organizations to better plan and manage their production and
warehouse operations, leading to increased efficiency and productivity.
This chapter provides an in-depth exploration of the various aspects of production
planning integration and the business processes that can be integrated into SAP EWM.
The opening section commences with an overview of production integration and its
key features in SAP, followed by an examination of different production integration
processes, such as delivery-based production integration and advanced production
integration. Additionally, this chapter covers production staging, consumption, and
goods receipts processes for both delivery-based and advanced production integration
scenarios.
This chapter also covers SAP Manufacturing Execution, which can trigger staging for
production, which involves the SAP Manufacturing Execution system triggering a stag-
ing request to SAP EWM for the materials required for production. In addition, this
chapter also covers SAP Manufacturing Integration and Intelligence (SAP MII), an SAP
application for synchronizing manufacturing operations. Furthermore, we’ll examine
how SAP EWM receives goods from production using SAP Manufacturing Execution
and SAP MII, as well as explore SAP EWM’s integration to SAP Manufacturing Execution
via application programming interfaces (APIs).
45
2 Production Planning
Overall, we hope this chapter can serve as a comprehensive guide to the various pro-
duction integration scenarios that can be implemented in SAP EWM. We include the
required configuration steps, master data, and end-to-end process demonstrations for
each scenario, thus enabling your company to streamline its supply chain operations
and boost productivity. By the end of this chapter, you’ll have a better understanding
of how SAP EWM can be integrated with production planning and thus how to help
your company streamline its supply chain operations.
2.1 Overview of Production Integration

Production planning assists organizations in managing and strategizing their manu-
facturing and production procedures. The module is structured to facilitate the entire
production cycle, encompassing planning, scheduling, MRP, production execution,
and monitoring.
Production planning enables organizations to create production plans and schedules
based on customer demand, sales forecasts, and available resources. It also allows them
to track and manage inventory levels, production costs, and quality control processes.
Some key features of production planning include:
쐍 Capacity planning
This feature allows organizations to plan and manage their production capacity to
ensure that they can meet customer demand without overburdening their
resources.
쐍 Bill of materials (BOM) management
Production planning enables users to manage BOMs for their products, which
includes the list of materials required for production, as well as the quantities and
the order in which they need to be used.
쐍 MRP
Production planning uses MRP to help organizations determine what materials are
required for production and when materials need to be ordered or produced.
쐍 Production scheduling
This feature allows users to schedule production based on available resources and
customer demand.
Integrating production with a warehouse management system (WMS) can enhance the
efficiency, accuracy, and productivity of both production and warehouse processes.
Real-time tracking of raw materials, components, and finished products can prevent
stock shortages or overstocking. Planning and scheduling production runs becomes
easier, ensuring on-time delivery of products. Automating manual processes decreases
errors and improves data accuracy, leading to better decision-making and lower costs.
Additionally, reduced lead times and increased responsiveness to customer demands
46
2.1 Overview of Production Integration
are other benefits that can be realized. Overall, integrating production with a WMS
improves supply chain visibility and operational efficiency, resulting in increased cus-
tomer satisfaction and profitability.
By combining the production planning, materials management, and SAP EWM mod-
ules, efficient production management can be achieved. This is possible due to the
modules providing end-to-end visibility and control over the entire production pro-
cess. The production planning module facilitates production planning and scheduling,
while the SAP EWM module covers goods receipt and goods issue process.
By integrating production processes with SAP EWM, the precision of inventory man-
agement has been enhanced, enabling improved tracking of raw materials, compo-
nents, and finished goods. Furthermore, it facilitates real-time monitoring of
production activities, leading to informed decision-making based on up-to-date data.
Moreover, the integration of production processes with SAP EWM offers enhanced
inventory visibility by allowing the receipt of final products directly from production to
warehouses. It also enhances the operation of production supply areas by optimizing
the staging of components and semi-finished materials. Finally, posting the goods con-
sumption provides improved inventory and cost visibility.
The process of integrating production processes with SAP EWM commenced in the
early 2010s with the introduction of production integration functionality. This enabled
real-time communication between SAP EWM and other SAP modules, including pro-
duction planning and materials management. The result was a more cohesive and inte-
grated approach to warehouse and production management.
SAP EWM has undergone significant evolution over the years, continuously enhancing
and adding new capabilities to better cater to the dynamic needs of businesses in ware-
house and production management. Presently, SAP EWM is widely adopted across var-
ious industries, and its integration with production processes remains a vital aspect of
the solution.
The primary objective of integrating production and extended warehouse manage-
ment, as shown in Figure 2.1, is to facilitate the timely and efficient staging of products,
also known as production staging, from the warehouse to the assembly line. This step
also involves posting consumption for the production process, returning unused com-
ponents, and receiving finished products into the warehouse.
Modern automated warehouses employ a variety of technologies, including material
flow systems, automated storage and retrieval systems, automated guided vehicles
(AGVs), and warehouse robotics solutions, to fulfill production integration require-
ments. By leveraging these technologies, businesses can optimize warehouse opera-
tions, lower costs, and enhance productivity, resulting in improved business outcomes.
The integration of SAP EWM with production processes is gaining popularity in several
industries, including discrete manufacturing, process manufacturing, and repetitive
manufacturing. This integration serves various business functions, such as transferring
47
Chapter 3
Quality Management
Quality management is a pivotal component of SAP S/4HANA that enables
businesses to implement and operate quality control processes with ease. It
is crafted to prevent defects, foster continuous process improvement, and
establish sustainable quality control programs. The aim of this chapter is
to provide you with a comprehensive guide to various quality manage-
ment processes and their seamless integration with SAP Extended Ware-
house Management (SAP EWM), especially with embedded Extended
Warehouse Management in SAP S/4HANA (embedded EWM).
SAP EWM has the ability to integrate with quality management in order to guarantee
adherence to quality standards during the storage and handling of goods. Organiza-
tions can reap numerous benefits from quality management, including compliance
with manufacturing quality regulations, reduced operating costs, and enhanced cus-
tomer satisfaction. The integration between SAP EWM and quality management allows
for quality inspections to be conducted at various stages of the warehouse process,
such as during goods receipt, putaway, and outbound processes. The result of this inte-
gration is the assurance that quality standards are met prior to the dispatch of products
to customers. SAP EWM can activate quality inspections and apprise quality manage-
ment of the outcomes, thereby allowing quality management to create quality notifi-
cations or update inspection lots. The integration also facilitates the monitoring of
quality-related data throughout the warehouse process, granting organizations visibil-
ity into quality-related key performance indicators (KPIs) and enabling data-driven
decisions.
This chapter examines various aspects of quality management integration and differ-
ent quality management business processes that can be integrated with SAP EWM. The
introductory section provides a synopsis of quality management in SAP EWM, fol-
lowed by an analysis of different quality management processes such as the inspection
of material and batch during an inbound delivery in SAP. This process is further catego-
rized into the inspection of material for externally procured and in-house inspection.
Furthermore, this chapter delves into another quality management process, internal
warehouse inspection, which is further divided into stock inspection and recurring
inspection for batches. Finally, this chapter provides in-depth coverage of the advanced
returns management process with quality inspection.
137
3 Quality Management
In essence, this chapter presents a comprehensive guide to the different quality man-
agement scenarios that can be implemented in SAP EWM. We’ll include the essential
configuration steps, master data, and end-to-end process demonstrations for each sce-
nario. By the end of this chapter, you will have a better understanding of how SAP EWM
can be integrated with quality management, thereby enabling your company to
streamline its quality management process.
3.1 Overview of Quality Management in SAP EWM

In this section, we’ll present an overview of quality management in SAP EWM, includ-
ing its architecture and deployment options. We’ll discuss the key terminology used
with quality management, then dive into the strategy for maintaining inspection rules.
SAP EWM employs a thorough quality management system that comprises diverse
processes, procedures, and tools to guarantee the conformity of stored goods and
materials with the appropriate quality standards and to ensure that warehouse opera-
tions meet the required standards. The main goal of quality management in SAP EWM
is to ensure uniform product quality, minimize the risk of defects and errors, and
enhance customer satisfaction. The essential elements of quality management in SAP
EWM encompass quality inspection, quality control, quality documentation, non-con-
formance management, and continuous improvement.
SAP EWM’s quality management functionality guarantees products received and pack-
aging meet your quality criteria. The Quality Inspection Engine is utilized to execute
inspection processes in the warehouse. The Quality Inspection Engine can be
employed to conduct quality inspections exclusively in SAP EWM or can be merged
with the Quality Management (QM) component of SAP ERP if you have previously con-
figured it.
For more intricate quality management procedures, the Quality Inspection Engine can
be linked to an external quality management system, like QM in SAP ERP, that includes
comprehensive analytical inspections and characteristics. Once an inspection docu-
ment is initiated in SAP EWM, the Quality Inspection Engine prompts the creation of an
inspection lot in the quality management function of the enterprise resource planning
(ERP) system. The inspection procedure is then performed in the external system,
which is the ERP quality management system. Once the inspection process is com-
pleted, the ERP quality management transmits the usage decision back to the Quality
Inspection Engine. This option is available for both SAP EWM connected to ERP or SAP
S/4HANA systems, whether they are SAP S/4HANA or non-SAP S/4HANA (ERP).
As shown in Figure 3.1, the Quality Inspection Engine, within the context of software
architecture, refers to a layer of software components that exist in the SAP EWM soft-
ware stack. This software stack, when integrated with QM in SAP ERP, forms a simpli-
fied SAP EWM software stack.
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3.1 Overview of Quality Management in SAP EWM
SAP EWM SAP ERP or SAP

S/4HANA
Quality
Inspection Engine Quality Management
Figure 3.1 Quality Inspection Engine Software Stack
In SAP EWM, the available options for quality management include the following:
쐍 Embedded EWM
As shown in Figure 3.2, with this option, quality management and extended warehouse
management (EWM) functionalities are hosted on the same server as SAP S/4HANA.
This integration eliminates the need for data transfers between systems.
SAP S/4HANA
Quality Management
SAP EWM
Figure 3.2 Embedded EWM Option
쐍 ERP or SAP S/4HANA and SAP EWM on SAP S/4HANA

As shown in Figure 3.3, beginning with SAP S/4HANA 1809 Feature Package Stack
(FPS) 02, you can utilize quality management features alongside SAP ERP for execut-
ing quality inspections in a decentralized extended warehouse management in SAP
S/4HANA (decentralized EWM). This alternative employs the Quality Inspection
Engine within SAP EWM, allowing quality management procedures to be executed
similarly to those in the central SAP ERP instance.
쐍 ERP or SAP S/4HANA with SAP EWM 9.5 or lower version (decentralized)
With this option, as shown in Figure 3.4, you can use the quality management func-
tion in SAP ERP to perform quality inspections in a decentralized warehouse using
SAP EWM (for EWM on a non-SAP S/4HANA system). The Quality Inspection Engine
in SAP EWM can be utilized similarly to the central ERP instance when using quality
management.
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Chapter 4
Transportation Management
SAP Transportation Management (SAP TM) is an innovative software
solution that empowers enterprises to strategically orchestrate the
movement of goods and materials within their supply chains. This cut-
ting-edge program affords organizations invaluable real-time visibility
into transportation operations, enabling them to adroitly optimize
logistics processes, curtail costs, and bolster customer service. The pro-
gram’s robust features facilitate the agile planning and booking of
freight, the expeditious management of carriers, the seamless tracking
and visibility of shipments, and intuitive analytics and reporting capa-
bilities. The objective of this chapter is to provide you with a complete
guide to integrating SAP TM with SAP Extended Warehouse Manage-
ment (SAP EWM) through embedded Extended Warehouse Manage-
ment in SAP S/4HANA (embedded EWM). To accomplish this goal, we’ll
offer an exhaustive exposition of the business processes linked to each
technique, followed by an elaborate examination of the configuration
and master data prerequisites crucial to facilitate end-to-end testing of
your business scenarios. Ultimately, we’ll provide step-by-step demon-
strations of each process to further solidify your comprehension.
SAP EWM can be seamlessly integrated with SAP TM to optimize logistics operations
and bolster supply chain visibility. This integration engenders a harmonized platform
for end-to-end logistics management, thereby streamlining transportation planning
and execution, while also facilitating efficient warehouse operations. By integrating
SAP EWM with SAP TM, businesses can reap a multitude of advantages and benefits.
These benefits include enhanced transportation planning and execution, real-time vis-
ibility into shipment and delivery status, improved inventory accuracy and control,
and augmented productivity through automation and streamlined processes. Addi-
tionally, the integration of SAP EWM and SAP TM culminates in a centralized data
repository for logistics information, thereby enabling better decision-making and
analysis.
This chapter provides a thorough exploration of the most up-to-date business pro-
cesses within SAP EWM and SAP TM. We cover advanced shipping and receiving pro-
cesses, as well as freight order integration between SAP EWM and SAP TM using
Lightweight Directory Access Protocol (LDAP) messaging. Additionally, this chapter
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4 Transportation Management
examines various business scenarios, breaking them down into specific processes,
required configurations, necessary master data, and end-to-end demonstrations for
each.
The introductory section provides an overview of transportation management sys-
tems and highlights how they can be advantageous for businesses in terms of facilitat-
ing growth. We then focus on the diverse options available for shipping and receiving
in both inbound and outbound processes. We delve into the option of integrating
transportation management with extended warehouse management for inbound and
outbound processes, triggered by LDAP messaging. Moreover, this chapter discusses
SAP’s recently introduced advanced shipping and receiving functionality for inbound
and outbound processes. The final section covers the integration of shipment and
transportation planning processes in SAP ERP as well as in SAP EWM.
4.1 Overview of Transportation Management Systems

A transportation management system is a software platform that the transportation
industry employs to plan, execute, and optimize the movements of goods, including
both inbound and outbound shipments. A transportation management system
ensures compliance with regulations and furnishes the necessary documentation.
Managing transportation can be complex, expensive, and time consuming, and thus, a
transportation management system is a crucial tool for streamlining supply chains.
Transportation was once viewed as a distinct business process, but now it is integrated
into overall supply chain and logistics management. A transportation management
system frequently forms part of a larger supply chain management system.
To deal with the growing complexity and uncertainty of global logistics, businesses
must improve logistics processes, enhance services, and increase visibility and control.
A transportation management system provides a holistic perspective of daily transpor-
tation operations, encompassing trade compliance data, essential documentation, and
the timely delivery of goods and freight. Transportation management system solu-
tions streamline shipping processes, allowing an enterprise to oversee and enhance its
transportation operations across various modes of transportation, such as land, air,
and sea.
Transportation management systems play a crucial role in modern supply chains,
affecting each stage of the process, from planning and procurement to logistics and
lifecycle management. A strong transportation management system offers compre-
hensive visibility, facilitating more effective transportation planning and execution,
leading to improved customer satisfaction and increased sales growth. Given the con-
tinuously changing global trade environment, having a transportation management
system that can assist businesses in successfully navigating complex trade policies and
guaranteeing compliance with regulations is vital.
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4.1 Overview of Transportation Management Systems
Transportation management systems are primarily employed by businesses that

require frequent shipping, moving, and receiving services, such as manufacturers, dis-
tributors, e-commerce companies, and retail businesses. Additionally, logistics service
providers, including third-party logistics (3PL) and fourth-party logistics (4PL) firms,
commonly use transportation management systems to provide logistics services to
their clients.
The SAP TM application integrates fleet management and logistics management,
streamlining the movement of goods across various modes of transportation. In this
way, SAP TM enhances operational efficiency and reduces costs.
This solution offers a range of features, including transportation demand manage-
ment, order consolidation, shipment monitoring and tracking, and transportation
spend optimization. Additionally, it facilitates strategic freight procurement, capacity
monitoring, freight order management, and transportation planning optimization.
Furthermore, SAP TM assists in the management of freight financials through freight
settlement and provides analysis and reporting capabilities to make informed trans-
portation decisions.
Employing SAP TM, enterprises can implement a uniform transportation system that
results in decreased transportation expenses and increased customer contentment.
This software streamlines transportation planning, execution, and cost reconciliation,
while also furnishing valuable data analytics to augment the overall transportation
process.
As shown in Figure 4.1, SAP TM, when used in conjunction with SAP S/4HANA, can be
deployed in a variety of deployment and integration scenarios.
SAP S/4HANA 1709
SAP S/4HANA
Sales and Distrbution/
SAP S/4HANA 1709
Materials Management/
Logistics Execution
SAP TM
SAP ERP
SAP ERP 6.0 EHP7
Onwards
Figure 4.1 SAP TM Deployment Options
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Chapter 5
Dock Appointment Scheduling
Dock appointment scheduling is a proactive and anticipatory planning
technique employed by companies to manage shipping docks, ware-
houses, and distribution centers. This method entails the allocation of
designated time slots for the arrival and departure of trucks transporting
inbound and outbound shipments. Moreover, the optimization of sched-
ules for dock doors and yard operations is an integral aspect of dock
scheduling. The objective of this chapter is to serve as a comprehensive
manual on diverse dock management procedures and their seamless
assimilation with SAP Extended Warehouse Management (SAP EWM)
through embedded Extended Warehouse Management in SAP S/4HANA
(embedded EWM). We’ll walk through the business processes for each
technique, discuss the setup and primary data requirements needed to
enable end-to-end testing of business scenarios, and provide a complete
step-by-step process demonstration for each scenario.
The integration of SAP with SAP Dock Appointment Scheduling presents a synergistic
opportunity for warehouse and distribution centers to streamline and optimize their
goods flow. The process entails configuring and linking the dock appointment schedul-
ing system with SAP EWM’s inbound and outbound delivery procedures.
At the outset, the SAP Dock Appointment Scheduling system meticulously schedules
precise time slots for the arrival and departure of trucks that ferry inbound and out-
bound shipments. Subsequently, this scheduling information is conveyed to SAP
EWM, which then triggers the generation of inbound or outbound deliveries based on
the designated time slots. Following the creation of the inbound or outbound delivery
in SAP EWM, the system automatically assigns a specific dock door for the truck to uti-
lize, based on the schedule information retrieved from SAP Dock Appointment Sched-
uling. This approach ensures the accurate routing of trucks to designated dock doors,
thereby optimizing the flow of goods. In sum, the integration of SAP Dock Appoint-
ment Scheduling with SAP EWM enables warehouse and distribution center operators
to enhance operations, diminish congestion and waiting periods, and heighten effi-
ciency and throughput.
This chapter scrutinizes the many facets of dock processes and the diverse business
processes for dock appointment scheduling that can be integrated with SAP EWM.
The preliminary section furnishes a comprehensive overview of dock appointment
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5 Dock Appointment Scheduling
scheduling in SAP EWM, the manifold options available for the implementation of
dock appointment management, and the divergent concepts employed in the dock
appointment scheduling process.
Additionally, this chapter delves into various dock appointment planning options that
encompass dock appointment planning in both the SAP Dock Appointment Schedul-
ing and SAP EWM systems.
Essentially, this chapter offers a comprehensive manual on the various dock appoint-
ment scheduling scenarios that can be executed in SAP EWM. We cover the requisite
configuration steps, master data, and end-to-end process demonstrations for each sce-
nario, so your business can optimize its supply chain operations and augment produc-
tivity. By the end of this chapter, you’ll possess a deep comprehension of how SAP EWM
can be integrated with SAP Dock Appointment Scheduling to empower your enterprise
to streamline its dock appointment processes.
5.1 Overview of Dock Appointment Scheduling

The process of dock scheduling is a valuable tool for businesses looking to optimize
their use of resources and improve efficiency in their supply chain operations. By
reducing wait times for truck drivers during the loading and unloading of goods, your
business can minimize overcrowding and congestion, particularly on traditionally
busy days like Mondays and Fridays. A delay in the dock scheduling process can lead to
increased detention charges and negatively impact the operational margins of a ware-
house. On the other hand, an accurate dock scheduling system can revolutionize ware-
house dock operations and drastically improve traffic flow, leading to more efficient
and cost-effective supply chain management During loading and unloading opera-
tions at docks, delays can occur, which can put pressure on warehouse operators to
work quickly to meet manufacturing or distribution schedules. This rush can increase
the risk of safety incidents occurring.
By scheduling appointments in advance, warehouses can effectively plan and manage
their staff for receiving and shipping processes, as well as allocate their equipment
resources efficiently. This feature helps minimize delays and idle time for trucks wait-
ing to be loaded or unloaded. Providing carriers with a link to your warehouse’s dock
appointment system can reduce the need for phone-based or email bookings, resulting
in shorter wait times and faster responses for carriers.
Dock appointment scheduling systems are often integrated into warehouse or trans-
portation management software, offering a range of helpful features. These features
may include online booking portals, automated appointment confirmations, and real-
time visibility into dock availability and traffic conditions. These capabilities allow for
smoother, more streamlined operations, reducing wait times and improving overall
efficiency in the supply chain. Efficient planning of vehicle arrivals and departures for
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5.1 Overview of Dock Appointment Scheduling
unloading and loading goods is crucial to ensure a well-organized running of the ware-
house and to balance the workload throughout the working day.
Scheduling dock appointments in advance can help prevent appointment blowouts
during the week and reduce the traffic on busy days at the warehouse. The ultimate
goal is to ensure the efficient use of warehouse doors, parking spaces, and yard check-
points for loading and unloading trucks from various carriers while avoiding interrup-
tions in warehouse operations. Allowing carriers to schedule their own appointments
online helps them plan their routes effectively and eliminates the need to arrive early
to ensure they can pick up or deliver in a timely manner.
The efficient scheduling of dock appointments can be instrumental in optimizing staff-
ing levels and averting scenarios of understaffing or overstaffing. This optimization, in
turn, can result in enhanced labor planning, a pivotal component of warehouse opera-
tions. A dock scheduling system serves as a valuable tool for capacity and resource
planning, allowing for seamless communication between carriers and the system,
while simultaneously providing real-time visibility to customers, warehouse person-
nel, suppliers, and carriers. By means of dock appointment scheduling, carriers and
warehouse users can coordinate appointments for incoming vehicles or transporta-
tion units (TUs) during loading and unloading processes.
The scheduling process can be executed online, meaning vendors and carriers can
book appointments and track progress in real-time using software. Additionally, dock
appointment scheduling software can be seamlessly integrated with warehouse man-
agement systems (WMS) or transportation management systems. Streamlined dock
appointment scheduling can result in optimized hours of service, enhanced warehouse
efficiency, improved partner collaboration, and augmented inventory turns. A dock
scheduling system may also include reporting functionalities, such as audits on deliv-
ered loads, which can facilitate the automatic recording and transmission of compli-
ance information.
SAP provides a web browser-based application called SAP Dock Appointment Schedul-
ing. This application enables efficient planning of vehicle arrivals in warehouses and
allows carriers to enroll their TUs for the yard, book time slots for loading and unload-
ing, and view the workload at each loading point for each day.
SAP Dock Appointment Scheduling can be deployed as a standalone solution or inte-
grated with a local SAP EWM system. To use SAP Dock Appointment Scheduling func-
tionalities, SAP has provided the standard Transaction NWBC or several SAP Fiori
applications, as shown in Figure 5.1.
Additionally, an SAP Fiori app called the Dock Appointment Scheduling for Carriers app
is available in SAP S/4HANA to offer a user interface (UI) for carriers.
When integrating SAP EWM and SAP Dock Appointment Scheduling, the scheduling
appointment serves as the planning object for the transport. Planning is performed
using time slots for loading points and defined capacities, with carriers collaborating
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Chapter 6
Warehouse Automation Systems
A warehouse automation system encompasses a meticulously coordi-
nated amalgamation of components that, through synergy, optimize
efficiency, precision, and productivity within the warehouse. Ranging
from automated storage and retrieval systems and robotic picking sys-
tems to conveyors, sortation systems, warehouse management system
(WMS) software, and automated guided vehicles (AGVs), these compo-
nents spearhead progress in the industry, empowering businesses to
meet the ever-mounting demands of the contemporary world. This
chapter delves into an array of warehouse automation components
that can be seamlessly integrated with SAP Extended Warehouse
Management (SAP EWM). Moreover, we provide an extensive explora-
tion of diverse automation system components, including material flow
systems, warehouse robotics systems, automated storage and retrieval
systems, and AGVs.
The integration of SAP EWM with warehouse automation systems aims to create a
seamless and tightly synchronized environment where manual and automated pro-
cesses work in harmony. This integration enables businesses to leverage the benefits of
automation technology while maintaining control and visibility over warehouse oper-
ations through a unified system. The integration of SAP EWM enables seamless data ex-
change, efficient process coordination, optimized resource utilization, and enhanced
traceability. By leveraging the power of automation alongside a robust WMS like SAP
EWM, organizations can achieve greater operational excellence and stay competitive in
the fast-paced world of modern warehousing.
This chapter commences by providing an overview of warehouse automation systems.
We discuss detailed information about the different warehouse automation systems
that are being utilized in state-of-the-art warehouses, as well as their integration with
WMSs.
Furthermore, we delve into the intricacies of the material flow system and its applica-
tion in both inbound and outbound processes. This chapter covers essential aspects
such as business processes, configuration requirements, and master data and con-
cludes with a practical demonstration of the material flow process.
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6 Warehouse Automation Systems
Moreover, this chapter explores ongoing warehouse robotics solutions and presents
various deployment options for integrating these solutions into warehouse opera-
tions. Finally, the chapter delves into a few warehouse automation components,
namely, automated storage and retrieval systems and AGVs. We’ll provide comprehen-
sive information about these components, including their functionalities and benefits
within a warehouse setting.
6.1 Overview of Warehouse Automation Systems

In today’s fast-paced world of logistics, the demand for efficient and productive ware-
house operations has never been greater. Thankfully, the advent of warehouse automa-
tion systems has brought about a transformative change in the industry. By
integrating cutting-edge technology and advanced robotics, these systems have
streamlined processes, minimized errors, and significantly increased operational effi-
ciency.
A warehouse automation system involves the implementation of different software
and technologies to automate and streamline the various processes associated with
managing and operating a warehouse. These technologies can include AGV systems,
material flow systems, WMSs, conveyor systems, robotics systems, and automated
storage and retrieval systems. Numerous businesses across various industries are
using warehouse automation to optimize their supply chain management and
improve overall productivity.
The aim of warehouse automation is to enhance the efficiency, precision, and swiftness
of warehouse tasks, while simultaneously minimizing costs and errors. By automating
inventory management, order processing, and material handling activities, warehouse
automation facilitates organizations to enhance their supply chain management and
overall productivity.
At the heart of a warehouse automation system are several key components working in
harmony to optimize every aspect of the supply chain. First and foremost, automated
storage and retrieval systems play a vital role. These systems utilize computer-con-
trolled mechanisms to handle the storage and retrieval of goods, eliminating the need
for manual intervention and maximizing space utilization.
Next, robotic picking systems have emerged as game-changers. Equipped with sensors
and advanced algorithms, these robots navigate through the warehouse, accurately
identifying and picking items for order fulfillment. By eliminating human error and
drastically reducing picking time, these systems have revolutionized the e-commerce
sector.
Conveyors and sortation systems are another integral part of warehouse automation.
These systems transport goods seamlessly throughout the warehouse, ensuring timely
and efficient movement from one area to another. They enable continuous flow and
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6.1 Overview of Warehouse Automation Systems
facilitate the sorting and routing of items based on predefined criteria, optimizing
order processing.
To manage and orchestrate these complex operations, WMSs provide the necessary
intelligence. WMS software integrates with various components of the automation sys-
tem, overseeing inventory control, order processing, and real-time tracking. This cen-
tralized control ensures smooth coordination and enhances visibility across the supply
chain.
Finally, to ensure a safe and secure working environment, AGVs have gained promi-
nence. These autonomous vehicles navigate through the warehouse, transporting
goods, and even interacting with other automation components. With built-in safety
measures and efficient route planning, AGVs contribute to reducing accidents and
improving operational efficiency.
Businesses can utilize various types of automation systems to streamline their ware-
house operations, which include the following:
쐍 Conveyor systems
These automated systems transport goods from one location to another within a
warehouse.
쐍 Automated storage and retrieval systems
These systems utilize computer-controlled cranes to retrieve and store products in
high-density storage systems.
쐍 Robotics systems
These systems employ robots for tasks like palletizing, depalletizing, and order pick-
ing.
쐍 AGVs
These unmanned vehicles transport products through the picking process, enhanc-
ing accuracy and speed.
쐍 Automated packing systems
These systems automatically package products for shipping.
쐍 Automated labeling systems
These systems label products with barcodes and other identifying information auto-
matically.
쐍 Sortation systems
These systems sort and distribute products according to predetermined criteria.
쐍 Pick-to-light systems
These systems employ lights to guide workers through the picking process, which
results in higher accuracy and speed.
쐍 Pick by voice/augmented reality (AR)
This warehouse automation system uses speech recognition technology to guide
warehouse workers through the picking process.
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Chapter 7
Yard Logistics
SAP Yard Logistics, an all-encompassing software solution provided by
SAP, offers a holistic approach to optimizing and managing logistical
operations in yard or terminal settings. Its primary objective revolves
around enriching the efficiency, visibility, and coordination of inbound
and outbound logistics activities encompassing transportation, storage,
and goods handling. This chapter provides an overview of the integra-
tion between SAP Extended Warehouse Management (SAP EWM) and
SAP Yard Logistics.
Yard logistics refers to the management of operations that take place within the con-
fines of a shipping yard, such as a warehouse, distribution center, or freight terminal.
These operations typically involve the movement of goods, vehicles, and personnel
within the yard, as well as the storage and retrieval of items. Yard logistics can also
involve coordinating and tracking the movement of shipments, scheduling delivery
times, and managing the flow of vehicles and people in and out of the yard. Effective
yard logistics is critical for ensuring the efficient and timely movement of goods and
materials within the supply chain. Warehousing and transportation meet at yards,
which act as the connecting link.
The integration of SAP EWM and SAP Yard Logistics seamlessly facilitates the syn-
chronized orchestration and optimization of warehouse operations alongside yard
management. Consequently, enterprises can adeptly administer inbound and out-
bound logistics processes, while adeptly handling the movement and storage of
goods within warehouse and yard premises. In essence, the harmonious convergence
of SAP EWM and SAP Yard Logistics enables a streamlined flow of goods, engenders
heightened operational efficiency, and augments the visibility and command over
warehouse and yard undertakings. Ultimately, this amalgamation empowers organi-
zations to attain amplified logistics efficiency, culminating in the provision of super-
lative customer service.
We’ll begin this chapter with an overview of the yard logistics process and walk through
the SAP Yard Logistics solution and its integration with SAP EWM. Then, we’ll cover
using SAP Yard Logistics in depth, detailing both inbound and outbound processes.
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7 Yard Logistics
7.1 Overview of Yard Logistics

The yard logistics process involves a number of steps, including the following:
쐍 Receiving goods
The process typically starts with the receipt of goods into the yard. This step can
involve checking the goods against the shipping manifest, ensuring that the correct
quantities and items have been received, and organizing the goods for storage or
further distribution.
쐍 Storage and retrieval
Once the goods have been received, they must be stored within the yard. This step
involves finding an appropriate location within the yard to store the goods and
ensuring that they are stored safely and securely. When the goods are needed for dis-
tribution or transportation, they must be retrieved from storage.
쐍 Inventory management
Effective yard logistics also requires careful inventory management. This step
involves keeping track of the quantities and locations of items within the yard, as
well as monitoring the flow of goods in and out of the yard to ensure that inventory
levels are maintained.
쐍 Equipment and personnel management
Yard logistics also involves managing the equipment and personnel needed to move
goods within the yard. This step can include coordinating the use of forklifts, pallet
jacks, and other handling equipment, as well as managing personnel schedules and
ensuring that workers are trained and equipped to carry out their duties safely and
efficiently.
쐍 Transportation management
Finally, yard logistics also involves coordinating the movement of goods into and
out of the yard. This step can include scheduling deliveries and pickups, coordinat-
ing with transportation providers, and ensuring that goods are transported in a
timely and efficient manner.
Businesses across various sectors and industries, engaged in the movement of goods
through logistics and supply, have come to acknowledge that transportation disrup-
tions frequently occur not just on the road, but also when resources are situated in the
yards of your manufacturing plants and distribution centers.
Effective yard logistics requires careful planning, coordination, and execution of these
processes in order to ensure that goods are moved through the supply chain in a safe,
efficient, and cost-effective manner. The efficiency of modern manufacturing opera-
tions and warehouses can be hampered by various inefficiencies in their yards, such as
the following:
쐍 Inadequate visibility into shipments and trailers, making it difficult to shuttle them
between plants and distribution centers.
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7.1 Overview of Yard Logistics
쐍 The availability of space is a major challenge for yard management, particularly in

urban areas where land is scarce and expensive. Limited space can make it difficult
to accommodate large numbers of vehicles and shipments and can also impact the
speed and efficiency of operations.
쐍 Shipping delays for inbound and outbound goods.
쐍 Poor management of yard trailers, leading to higher expenses on spotters and shut-
tles.
쐍 Challenges in locating empty trailers to meet outbound load schedules.
쐍 Delayed truck driver pickups.
쐍 Traffic congestion is another common challenge in yard management, particularly
in busy transportation hubs such as ports and airports. Congestion, particularly at
entry and exit gates, can slow down operations, increase waiting times for drivers,
and result in delays and increased costs.
쐍 Effective communication is crucial in yard management, particularly when coordi-
nating activities with carriers, drivers, and other stakeholders. Poor communication
can lead to misunderstandings, delays, and safety issues.
쐍 Insufficient visibility into the arrival of shipments at destination facilities.
쐍 Yard management also involves ensuring the safety and security of personnel,
equipment, and shipments. This goal can be challenging, particularly in high-traffic
areas where there is a risk of accident, theft, and damage. You may have limited abil-
ity to monitor safety and compliance violations.
쐍 Many yard management operations are still reliant on manual processes and paper-
based systems, which can be time consuming and prone to errors. Integrating tech-
nology such as radio frequency identification (RFID) and GPS can help streamline
operations and improve visibility, but integrating these technologies can also be a
complex and costly process.
쐍 Extreme weather conditions, such as snow, rain, and wind, can impact yard opera-
tions and cause delays and safety issues. Preparing for and managing these condi-
tions requires careful planning and coordination.
To remain competitive in global markets, companies with yards must implement pro-
fessional logistics processes that are supported by a highly integrated and user-friendly
system across the entire supply chain. The use of SAP Yard Logistics can provide com-
prehensive support for transportation units (TUs) from check-in to check-out, with a
focus on planning, execution, yard operations, monitoring, and billing functionalities.
SAP Yard Logistics serves as the crucial link that connects transportation management,
extended warehouse management (EWM), and SAP ERP.
To successfully complete yard processes, several key features of SAP Yard Logistics are
essential, including the following:
쐍 Seamless integration with SAP Transportation Management (SAP TM) and SAP EWM
쐍 Proper classification of TUs
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Chapter 8
Environmental Health and Safety
The SAP Environment, Health, and Safety Management (SAP EHS Man-
agement) module represents an all-encompassing system meticulously
crafted to effectively govern and oversee environmental health and
safety (EHS) risks within an organization. This module empowers enter-
prises to diligently trace and ascertain compliance with regulatory requi-
sites, proactively identify and mitigate workplace hazards, and instill a
culture ingrained with safety consciousness among employees. Encom-
passing myriad aspects such as incident management, risk assessment,
safety training, emergency response planning, and compliance reporting,
the SAP EHS Management module emerges as a robust framework to
uphold the highest standards of health and safety. The primary objective
of this chapter is to explicate the intricacies of the SAP EHS Management
repertoire—and its seamless integration with SAP Extended Warehouse
Management (SAP EWM) through the embedded Extended Warehouse
Management in SAP S/4HANA (embedded EWM) framework.
This SAP component offers comprehensive support for all activities pertaining to prod-
uct safety and stewardship. If your organization manufactures and sells substances
that are potentially harmful, it is of utmost importance to safeguard human beings and
the environment from the risks associated with these substances. Additionally, you
must comply with numerous laws and regulations concerning hazardous substances
on a global scale. This SAP component aids in the secure handling of hazardous sub-
stances, ensuring their safe introduction to the market and automating compliance
with all relevant regulations.
SAP EHS Management and SAP EWM are distinct modules within an SAP system. The
integration of these two modules facilitates a more efficient and streamlined manage-
ment of hazardous materials and related processes.
The opening section of this chapter provides an overview of EHS concerns and empha-
sizes the key functionalities of SAP EHS Management. We subsequently focus on the
various options available for an inbound process using SAP EHS Management, encom-
passing business processes, configuration, master data, and a comprehensive demon-
stration of the end-to-end process. The chapter then delves into an outbound process
using SAP EHS Management, encompassing the business process itself and a process
demonstration.
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8 Environmental Health and Safety
Upon completion of this chapter, you’ll have a thorough understanding of SAP EHS
Management and its module, product safety and stewardship, as well as SAP EHS Man-
agement’s seamless integration with SAP EWM for both inbound and outbound pro-
cesses.
8.1 Overview of Environmental Health Safety

EHS is a broad term to describe the laws, rules, regulations, professions, programs, and
workplace efforts that aim to protect the health and safety of employees and the public,
as well as the environment, from hazards associated with the workplace. Essentially,
EHS encompasses the profession of occupational safety and health professionals, along
with their colleagues in the environmental department.
EHS is a discipline that focuses on protecting the health and safety of people, as well as
preserving the natural environment. The primary objective of EHS is to prevent acci-
dents, injuries, and illnesses in the workplace, while minimizing the impact of business
operations on the environment.
The roles and functions of EHS professionals may vary depending on the organization
and industry, but typically include the following:
쐍 Developing and implementing safety policies and procedures: EHS professionals are
responsible for developing and enforcing safety policies and procedures to ensure
compliance with regulations and standards.
쐍 Conducting safety training and education: EHS professionals provide safety training
to employees to ensure they have the knowledge and skills to work safely and pre-
vent accidents.
쐍 Conducting safety inspections and audits: EHS professionals conduct safety inspec-
tions and audits to identify hazards and risks and recommend corrective actions.
쐍 Investigating accidents and incidents: EHS professionals investigate accidents and
incidents to determine their root causes and to recommend corrective actions and
prevent similar incidents in the future.
쐍 Managing hazardous materials and waste: EHS professionals manage hazardous
materials and waste to ensure they are handled, stored, and disposed of safely and in
compliance with regulations.
쐍 Developing and implementing environmental programs: EHS professionals
develop and implement programs to manage environmental risks, such as air and
water pollution, waste management, and energy conservation.
Overall, the role of EHS professionals is to ensure the safety and well-being of employ-
ees, protect the environment, and maintain regulatory compliance in the workplace. In
another words, EHS is a discipline that focuses on implementing practical measures to
444
8.1 Overview of Environmental Health Safety
protect the environment and ensure health and safety in the workplace. From a safety
standpoint, it involves creating organized procedures to identify workplace hazards
and reduce accidents and exposure to harmful situations and substances. Additionally,
personnel are trained in accident prevention, emergency preparedness, and the use of
protective clothing and equipment.
At its core, EHS aims to develop safe, high-quality, and environmentally friendly pro-
cesses, working practices, and systemic activities that prevent or reduce the risk of
harm to people in general, to operators, or to patients. From an environmental stand-
point, EHS involves implementing a systematic approach to comply with regulations
regarding waste management, air emissions, and reducing a site’s carbon footprint.
Regulatory requirements are essential in the EHS discipline, and EHS managers must
identify and understand relevant regulations, communicating their implications to
executive management so that the company can implement appropriate measures. In
the United States, organizations are subject to EHS regulations outlined in the Code of
Federal Regulations (CFR), particularly CFR 29, 40, and 49. However, EHS management
is not limited to legal compliance, and companies are encouraged to go beyond what is
required by law as appropriate.
SAP EHS Management is a software solution provided by SAP designed to help organi-
zations manage their EHS risks and compliance requirements. This integrated solution
allows organizations to manage their EHS data, processes, and reporting in a single sys-
tem.
SAP EHS Management works by providing a range of modules that allow organizations
to manage their EHS data and processes. These modules include:
쐍 Product safety
This module allows organizations to manage the safety of their products by tracking
and reporting on hazardous substances, chemical compliance, and labeling require-
ments.
쐍 Dangerous goods management
This module allows organizations to manage the transportation and storage of haz-
ardous materials in compliance with local and international regulations.
쐍 Waste management
This module allows organizations to manage their waste management processes,
including waste generation, storage, and disposal.
쐍 Occupational health
This module allows organizations to manage the health and safety of their employ-
ees, including monitoring and reporting on workplace hazards and incidents.
쐍 Industrial hygiene and safety
This module allows organizations to manage their industrial hygiene and safety pro-
cesses, including risk assessments, inspections, and audits.
445
Chapter 9
Plant Maintenance
Plant maintenance is a sophisticated module incorporated within the
SAP’s enterprise resource planning (ERP) system, specifically designed to
assist organizations in effectively managing and up keeping their
plants, equipment, and assets. Its purpose is to optimize maintenance
procedures, minimize downtime, and enhance overall operational effi-
ciency. By utilizing plant maintenance, your company can bolster asset
reliability, reduce maintenance costs, and elevate its overall operational
effectiveness. The primary objective of this chapter is to furnish you with
a comprehensive understanding of plant maintenance.
Plant maintenance is an integral part of SAP ERP helps enterprises manage and pre-
serve their equipment and systems. The plant maintenance application component is
a comprehensive tool to streamline maintenance activities. With plant maintenance,
an organization can automate repairs and optimize maintenance requests. This appli-
cation allows users to document issues within the SAP system, plan labor and material
activities, and track and settle costs.
The integration of SAP Extended Warehouse Management (SAP EWM) with plant main-
tenance is crucial for optimizing the handling of goods in the maintenance process. By
integrating these two systems, an organization can ensure efficient coordination
between warehouse operations and maintenance activities.
This chapter begins with an overview of plant maintenance, highlighting its key bene-
fits and the advantages of integrating plant maintenance with SAP EWM. We also cover
various scenarios and functionalities related to plant maintenance-SAP EWM integra-
tion, specifically focusing on outbound processes and return (inbound) processes
using plant maintenance orders. This chapter provides detailed information about the
business processes, configuration, and master data and offers an end-to-end demon-
stration of the entire process.
Emphasis will be placed on plant maintenance, which is an SAP system meticulously
tailored to cater to the requirements of maintaining your plants. The central focus of
this chapter is on providing an overview of plant maintenance and elucidating the var-
ious involved processes. We will offer meticulous insights into the plant maintenance
process, coupled with a step-by-step guide on executing both goods issue and goods
receipt processes for plant maintenance orders.
469
9 Plant Maintenance
Finally, we’ll delve into the integration of plant maintenance with SAP EWM, SAP’s
influential warehouse management system (WMS). This integration plays a pivotal role
in facilitating the seamless and efficient handling of goods issue and goods receipt pro-
cesses within the plant maintenance procedure. By the end of this chapter, you’ll have
a comprehensive understanding of plant maintenance and its integration with SAP
EWM for both outbound goods issues and inbound return processes.
9.1 Overview of Plant Maintenance

Plant maintenance encompasses a range of activities to help an organization manage
its technical systems effectively. These activities include inspection, preventive mainte-
nance, and repair, among other measures.
Inspection involves conducting a thorough assessment of the current condition of a
technical system. This task involves checking the equipment and components of the
system to identify any potential issues or areas of concern. The data collected from
inspections can be used to create maintenance plans to address the specific needs of
the system.
Preventive maintenance aims to keep technical systems in an ideal condition by regu-
larly carrying out routine maintenance activities. This area includes tasks like cleaning,
lubricating, adjusting, and replacing components before they fail. By implementing
preventive maintenance, your organization can reduce the risk of breakdowns and
extend equipment lifespans.
Repair involves fixing any issues that arise within the technical system to restore it to
its ideal condition. This activity can involve replacing defective components, repairing
broken equipment, or adjusting components that are not working properly. Repair
work is usually carried out in response to an identified problem or issue.
Other measures taken using the plant maintenance capabilities can include planning
and scheduling maintenance tasks, monitoring equipment performance, and manag-
ing spare parts inventory. These activities support the overall goal of keeping technical
systems functioning efficiently and effectively.
In general, the plant maintenance business process involves the following end-to-end
functions:
쐍 Request initiation
A maintenance request is generated indicating the need for maintenance or repair
work to be performed at an external location. This request can come from various
sources such as equipment operators, technicians, or automated monitoring systems.
쐍 Work order creation
Based on the maintenance request, a work order is created, specifying the details of
the task, including the equipment or system to be repaired, the location, the
required resources, and any relevant documentation or procedures.
470
9.1 Overview of Plant Maintenance
쐍 Resource allocation
The necessary resources for the maintenance task are identified and allocated. These
resources might include skilled technicians, specialized tools or equipment, spare
parts, and transportation arrangements to reach the external location.
쐍 Planning and scheduling
The maintenance task is planned and scheduled, considering factors such as techni-
cian availability, priority of the task, and the logistics of reaching the external site.
The schedule should optimize efficiency and minimize downtime.
쐍 Dispatching and logistics
Once the schedule is finalized, the work order is dispatched to the assigned techni-
cians or maintenance crew. Logistics arrangements, such as arranging transporta-
tion or providing detailed directions to the external site, are made to ensure timely
arrival.
쐍 Execution
Technicians travel to the external site and carry out the maintenance or repair work
according to the specifications outlined in the work order. They may perform
inspections, diagnostics, troubleshooting, repairs, replacements, or any other neces-
sary tasks to restore the equipment or system to proper working condition.
쐍 Documentation and reporting
Throughout the process, technicians document their activities, findings, and any
changes made during the maintenance task. This information is recorded for future
reference, analysis, and compliance purposes. After completing the task, technicians
prepare reports summarizing their work and any additional recommendations.
쐍 Follow-up actions
Depending on the findings during the maintenance task, further actions may be
required. These actions can include ordering additional parts, scheduling follow-up
visits, or updating preventive maintenance plans to prevent similar issues in the
future.
쐍 Closure and feedback
Once the maintenance task is completed, the work order is closed, and relevant
stakeholders are notified. Feedback from technicians, customers, or site representa-
tives may be collected to assess the quality of the maintenance work and identify
areas for improvement.
Overall, plant maintenance activities are crucial for ensuring that technical systems
remain operational and reliable. By conducting inspections, implementing preventive
maintenance, carrying out repairs, and taking other necessary measures, your organi-
zation can keep its equipment functioning optimally and minimize downtimes.
Plant maintenance seamlessly integrates with other components of the SAP ERP sys-
tem, including materials management, quality management, production planning,
sales and distribution, finance, controlling, and human resources.
471
Chapter 10
SAP Advanced Track and Trace for
Pharmaceuticals
SAP Advanced Track and Trace for Pharmaceuticals offers invaluable
assistance to pharmaceutical companies in fulfilling their specific legal
obligations regarding the serialization, tracking, and tracing of products
as well as in diligently reporting compliance with pharmaceutical prod-
uct regulations from the relevant regulatory bodies. Moreover, this solu-
tion facilitates seamless data exchanges with packaging lines and
enhances collaboration with supply chain partners, such as warehouse
operations, third-party logistics (3PL), and contract manufacturing
organizations (CMOs). SAP Advanced Track and Trace for Pharmaceuti-
cals seamlessly integrates with diverse business processes, enterprise
resource planning (ERP) systems, transactions, warehouse manage-
ment, and supply chain management, thereby streamlining operations
comprehensively. By placing paramount emphasis on patient safety,
SAP Advanced Track and Trace for Pharmaceuticals helps protect com-
pany reputations. Furthermore, the meticulous management of serial
numbers presents a formidable challenge for counterfeiters attempting
to replicate legitimate codes, thereby serving as a deterrent against
fraud. The primary aim of this chapter is to provide comprehensive infor-
mation regarding SAP Advanced Track and Trace for Pharmaceuticals.
SAP Extended Warehouse Management (SAP EWM) and SAP Advanced Track and Trace
for Pharmaceuticals can be seamlessly integrated to deliver complete end-to-end visi-
bility and control over the storage and movement of pharmaceutical products within
warehouses and distribution centers.
In typical business scenarios, whenever a serialized item is moved in or out of a ware-
house, it is imperative to update both the stock management and the serialization
repository accordingly. However, updating these two separate systems separately
poses a significant risk of data inconsistency. The Warehouse integration feature
addresses this issue by enabling the integration of warehouse stock with the serializa-
tion repository, ensuring data consistency and minimizing the risk of errors. This inte-
gration feature facilitates the synchronization of data between the SAP EWM and SAP
Advanced Track and Trace for Pharmaceuticals systems, enabling real-time updates of
503
10 SAP Advanced Track and Trace for Pharmaceuticals
stock movements and serialization data. This ensures that all information related to
the pharmaceutical products is captured and maintained accurately, enabling efficient
tracking and tracing of the product at every stage of the supply chain. Overall, the inte-
gration of SAP EWM and SAP Advanced Track and Trace for Pharmaceuticals is a power-
ful solution that enables seamless data synchronization and data consistency,
providing complete visibility and control over pharmaceutical products within a ware-
house or distribution center.
The introductory section of this chapter is an overview of SAP Advanced Track and
Trace for Pharmaceuticals and highlights how the solution can facilitate growth. The
chapter then focuses on the diverse options available for Inbound goods receipt pro-
cess and Outbound goods issue with business process, configuration, master data and
end to end demonstration of process.
The chapter will particularly emphasize the SAP Advanced Track and Trace for Pharma-
ceuticals solution, an SAP system specifically designed for the efficient management of
serial numbers and repositories. The central focus of this chapter will revolve around
the integration of SAP Advanced Track and Trace for Pharmaceuticals with SAP EWM
for handling the inbound goods receipt process. Finally, we’ll focus on the integration
of SAP Advanced Track and Trace for Pharmaceuticals with SAP EWM, a powerful ware-
house management system (WMS) offered by SAP. This integration plays a pivotal role
in facilitating the smooth and efficient handling of the inbound goods receipt process.
By the end of this chapter, you’ll possess a comprehensive understanding of SAP
Advanced Track and Trace for Pharmaceuticals, its integration with SAP Advanced
Track and Trace for Pharmaceuticals solution, and its seamless incorporation with SAP
EWM for inbound and outbound process This knowledge will equip you with valuable
insights into the advanced technologies employed in the pharmaceutical industry,
ensuring you’re well-informed and prepared to tackle related challenges effectively.
10.1 Overview of SAP Advanced Track and Trace for Pharmaceuticals

SAP Advanced Track and Trace for Pharmaceuticals is an advanced solution for serial
number management, designed specifically for pharmaceutical companies. It offers
serialization and serial number control capabilities, including drug serialization, data
querying, reporting, and labeling. SAP Advanced Track and Trace for Pharmaceuticals
helps reduce the cost of subsequent reporting to government and institutional data-
bases and enhances the security of the supply chain.
The SAP Advanced Track and Trace for Pharmaceuticals solution assists pharmaceuti-
cal firms in fulfilling specific country-based legal obligations related to serialization,
tracking, and tracing, as well as reporting compliance with regulatory bodies regarding
pharmaceutical products. This solution can also help streamline data exchange with
packaging lines, warehouse operations, 3PL, and CMOs. SAP Advanced Track and Trace
for Pharmaceuticals is integrated with various business processes, enterprise resource
504
10.1 Overview of SAP Advanced Track and Trace for Pharmaceuticals
planning (ERP) systems, transactions, warehouse management, and supply chain man-
agement. By prioritizing patient safety, SAP Advanced Track and Trace for Pharmaceu-
ticals can positively influence your brand’s reputation. Managing serial numbers also
makes it challenging for counterfeiters to replicate valid codes, thus preventing fraud.
Governments worldwide are increasingly passing legislation to combat drug counter-
feiting, which requires efficient serialization and reporting of drugs to both govern-
ment and institutional databases. Moreover, a secure data flow must exist between
supply chain partners to comply with these complex systems.
To achieve compliance with regulations and legislation, pharmaceutical companies
require a well-managed serialization repository that can handle high volumes of data,
integrate with master data and business transactions, and provide internationally
compliant reporting. To meet these requirements, SAP has developed a digital solution
called SAP Advanced Track and Trace for Pharmaceuticals.
As a component of SAP Digital Supply Chain, SAP Advanced Track and Trace for Phar-
maceuticals ensures the security of data flow, thereby affording pharmaceutical manu-
facturers comprehensive data protection. The system is specifically engineered to
facilitate legal measures against illicit trade and counterfeiting
Pharmaceutical manufacturers must adhere to regulations that involve thorough
product validation, pharmaceutical serialization for pre-marketing drug verification,
serialization data transfer to partners, creation of drug serialization reports that meet
the different standards and requirements of various countries, and serialization man-
agement. To maintain compliance with these regulations, SAP Advanced Track and
Trace for Pharmaceuticals can not only impact the packaging line but can also reinforce
the overall business strategy by considering cross-organizational implications through
extensive planning.
Some traits of advanced tracking and tracing systems include the following:
쐍 Enable compliance with international legislation by reporting serial number events
to authorities and business partners
쐍 Integrate with ERP, WMSs, and packaging lines for seamless data exchange
쐍 Capture serial numbers from packaging lines and warehouse systems and store
serial number events centrally for easy tracking
쐍 Track and trace the serial numbers of medicinal sales units and their aggregations to
ensure their authenticity and ownership
쐍 Track batches and their relation to serial numbers for effective inventory manage-
ment
쐍 Ensure reliable verification by comparing a given serial number to known ranges or
rules for the appropriate manufacturer or distributor
쐍 Demonstrate both authenticity and ownership of medications to prevent counter-
feit products from entering the supply chain
505
The Authors
Shailesh Patil stands as an eminent solution architect and sub-

ject matter expert at Infosys Limited, showcasing a remarkable
and extensive career spanning 19 years of expertise in supply
chain management solutions. His focal competencies revolve
predominantly around extended warehouse management, ware-
house management, transportation management, serialization,
and cold chain management solutions, with a specific focus on
the pharmaceutical industry.
As a highly seasoned SAP professional and a certified consultant
for SAP EWM, Shailesh consistently delivers exceptional outcomes. He boasts an exem-
plary track record, assuming a pivotal role in numerous SAP greenfield implementa-
tions, project roll-outs, and the strategic adoption of both the big-bang and phased
approaches for clients spanning various industries, including pharmaceuticals, chemi-
cals, retail, automobiles, automobile ancillaries, semiconductors, and building manu-
facturing. His influence extends both domestically and globally across the USA,
Europe, and Asia. Over the years, Shailesh has solidified his stature as an esteemed
leader within the sphere of SAP EWM. In the realm of academia, Shailesh holds a bach-
elor of technology (B. Tech) degree from North Maharashtra University in India. Pres-
ently, he resides in Pune, India alongside his wife, Dipti, and their cherished children,
Advika and Anayra.
Sudhakar Bandaru is a highly accomplished digital logistics

execution solution architect with extensive experience in vari-
ous modules, including SAP EWM, SAP Yard Logistics, and SAP
Transportation Management, spanning an impressive career of
over 19 years. Throughout his professional journey, he has
developed a deep understanding of the complexities within a
wide range of industries, including 3PL, semiconductor, phar-
maceutical, automobile distribution, fast-moving consumer
goods, energy, oil and gas, and utilities, among others.
He is known for his proficiency in cross-functional integration, particularly integrating
SAP EWM with other essential modules like materials management, sales and distribu-
tion, production planning, quality management, material flow systems, warehouse
control systems, SAP Transportation Management, SAP Dock Appointment Schedul-
ing, SAP Yard Logistics, SAP Manufacturing Execution, SAP Fiori, and SAP Environment,
Health, and Safety Management. Sudhakar's contribution to the field goes beyond his
531
The Authors
professional achievements. He has also generously shared his knowledge and skills as
an SAP EWM and SAP TM corporate trainer under the esteemed banner of SAP Training
and Adoption (formerly SAP Education) since 2011. His tutelage has benefitted presti-
gious clients such as TCS, Tech Mahindra, PepsiCo, DKSH, and Audi, among others.
532

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SAP PRESS is a joint initiative of SAP and Rheinwerk Publishing.

The know-how offered

Namita Sachan, Aman Jain

Zoellner, Halm, Schapler, Schulze

Patil, Ramireddi, Komatlapalli

Lauterbach, Gottlieb, Helwig, Sürie, Benz

Integrating EWM in SAP S/4HANA®

1 Introduction to Extended Warehouse

1.1 What Is Extended Warehouse Management? .......................................................... 18

1.2 The Progression of Extended Warehouse Management ..................................... 22

1.6 Industry Adoption of Extended Warehouse Management Solutions ........... 41

1.8 Summary ................................................................................................................................... 43

2.1 Overview of Production Integration ............................................................................. 46

2.2 Delivery-Based Production Integration ....................................................................... 50

2.3.2 Consumption for Manufacturing Orders ....................................................... 106

3 Quality Management 137

3.1 Overview of Quality Management in SAP EWM ..................................................... 138

3.2 Inspection Product/Batch for Inbound Deliveries .................................................. 147

3.5 Summary ................................................................................................................................... 210

4 Transportation Management 211

4.1 Overview of Transportation Management Systems ............................................. 212

4.3 Freight Order Integration .................................................................................................. 218

4.5 Shipment Integration .......................................................................................................... 273

5 Dock Appointment Scheduling 303

5.1 Overview of Dock Appointment Scheduling ............................................................. 304

5.2 Dock Appointment Planning ............................................................................................ 311

6 Warehouse Automation Systems 345

6.1 Overview of Warehouse Automation Systems ........................................................ 346

6.2 Material Flow Systems ........................................................................................................ 349

6.4 Automated Storage and Retrieval Systems ............................................................... 393

6.6 Summary ................................................................................................................................... 399

7 Yard Logistics 401

7.1 Overview of Yard Logistics ................................................................................................ 402

7.2 Using SAP Yard Logistics ..................................................................................................... 407

8 Environmental Health and Safety 443

8.1 Overview of Environmental Health Safety ................................................................ 444

9 Plant Maintenance 469

9.1 Overview of Plant Maintenance ..................................................................................... 470

9.2 Using Plant Maintenance Orders ................................................................................... 474

10 SAP Advanced Track and Trace for

The Authors ............................................................................................................................................ 531

Service Pages ..................................................................................................................................... I

In today’s fast-paced and ever-changing business environment, organizations are con-

Objective of This Book

쐍 Wholesale and distribution centers

Structure of This Book

SAP EWM is a sophisticated software platform that enables enterprises to optimize

1.1 What Is Extended Warehouse Management?

2.1 Overview of Production Integration

3.1 Overview of Quality Management in SAP EWM

SAP EWM SAP ERP or SAP

Figure 3.1 Quality Inspection Engine Software Stack

Figure 3.2 Embedded EWM Option

쐍 ERP or SAP S/4HANA and SAP EWM on SAP S/4HANA

4.1 Overview of Transportation Management Systems

Transportation management systems are primarily employed by businesses that

SAP S/4HANA 1709

Figure 4.1 SAP TM Deployment Options

5.1 Overview of Dock Appointment Scheduling

6.1 Overview of Warehouse Automation Systems