SAP Extended Warehouse Management, SAP EWM, EWM - Basic Functions, EWM - Delivery Processing, EWM - Master Data

SAP Extended Warehouse Management (EWM) deployment options with S/4 HANA


Nowadays, SAP S/4 HANA is taking up rapidly, many companies face the challenges while deciding right SAP EWM solution for their businesses. This blog carries the functional information between SAP S/4 HANA EWM deployment options and will help you to decide right EWM solution which depends on enterprise structure, current system landscape, future automation plan and cost etc.


The objective of this blog is to get clear understanding of SAP S/4 HANA EWM deployment options to Customer’s, Consultant’s, and partner. Also, this article contains few important point’s which are needs to take into consideration while choosing the EWM deployment option. All the information is based on latest releases of SAP S/4 HANA EWM.

Deployment Options:

EWM can be used in two different deployment modes of SAP S/4HANA systems:

Embedded EWM on SAP S/4HANA

Decentralized EWM on SAP S/4 HANA

1. Embedded EWM on SAP S/4 HANA:

Which integrates only with the local ERP storage locations, is available in two license versions:

i. Basic EWM: SAP offers the Basic EWM application component with default S/4 Hana license.
ii. Advance EWM: To avail the advance functionalities additional licensing required.

Benefits with SAP S/4 HANA Embedded EWM

  • Embedded EWM reduced data replication as Business Partner data, Material Master Data, Batch Master Data does not need to be replicated. It can be directly access from S/4 HANA ERP.
  • Core Interface (CIF)is not required to be used anymore.
  • Transactional data like Purchase Order data or production order data can be read directly.
  • Elimination of the use of additional documents like outbound delivery.
  • SAP S/4 Hana ERP and SAP EWM can run on same landscape.
  • It has simplified system structure compared to decentralized option.
  • Embedded S/4 HANA EWM reduce the total cost as the license of basic EWM functionality is included in the SAP S/4HANA ERP license.

Data Transfer between SAP S/4 HANA & Embedded EWM

Main functionality difference between Basic EWM and Advance EWM.

Limitations with SAP S/4HANA Embedded EWM.

  • With this option, it is not possible to integrate with storage locations in other SAP ERP systems.
  • The solution is not very adaptable with multiple warehouses or with large MFS system traffic.
  • It cannot keep operational in case of ERP system down.

2. Decentralized EWM on SAP S/4 HANA:

With this deployment option, SAP EWM is deployed on a separate server platform and connected to SAP S/4 HANA system using RFC’s and CIF. Decentralized EWM on SAP S/4HANA is released for integration with SAP ERP system and SAP S/4HANA system (with ERP role).

Decentralized EWM cannot integrate to local ERP storage locations but can integrate to ERP storage locations of other clients or other systems, is available in one license version.

Decentralized EWM system can handle a higher volume of transactions and since this is on a different instance, system performance of other processes is not impacted.

This deployment option is highly capable to handle high performing material flow systems, big size warehouses and other automation.

Benefits with SAP S/4 HANA Decentralized EWM.

  • It has ability to handle big size volume of transactions.
  • It can keep operational even if the ERP system is down.
  • It has ability to handle the multiple warehouses on same landscape.
  • It has better ability to support automatic warehouses (Integration with MFS, ASRS)
  • Both systems can be upgraded without impacting each other.
  • It can connect to multiple ERP systems.

Data Transfer between SAP ERP & Decentralized EWM.

While implementing SAP EWM customers’ needs to know which SAP EWM deployment option should be chosen and why? It can be decided on some of the questions mentioned below.

  • What is total volume of transactions data at present in all warehouses?
  • What will be the total volume of transactions will be increased in future?
  • How many warehouses are at present on system and what is future expansion plan?
  • What is effect of total cost?
  • What is cost of investment?
  • What is present level of warehouse automation?
  • What is future warehouse automation plan?
  • What is future plan about system upgrade?
  • Is existing IT infrastructure capable to handle Embedded EWM?