SAP Warehouse Management benefits.

SAP Warehouse Management benefits Introduction tutorial.

As we know that selecting and using a  good Inventory management solution is key to a lean supply chain. It is therefore important that before deciding the solution to be used we understand the current and the future needs of the business and evaluate the options available. In this tutorial we will be focusing on introduction SAP WM solution and SAP Warehouse management benefits .

Let us first understand the fundamental difference between in SAP IM and SAP WM

The SAP Warehouse Management (WM) application provides flexible, automated support to assist you in processing all goods movements and in maintaining current stock inventories in your warehousing complex.

SAP Warehouse Management supports warehousing processes by making it possible for you to

  • Define and manage complex warehousing structures
  • Optimize material flow using advanced putaway and picking techniques
  • Process goods receipts, goods issues and stock transfers quickly and easily

Selection Criteria

Although it is possible for you to manage warehouse inventories using the Inventory Management (IM) application component, the primary difference between managing stock in SAP Warehouse Management (WM) and in IM is that in IM, the system can only display the total stock of a material for a storage location. If a warehouse is small and easily manageable, then the use of IM may be sufficient to fulfill your needs.

WM, on the other hand, offers the capability to manage stock quantities in each individual storage bin in highly complex storage facilities. This means that, with WM, you can optimize the use of all storage bins, mix pallets belonging to several owners in randomly slotted warehouses and know exactly where a particular material is located in the warehousing complex at all times.


The Warehouse Management application is fully integrated into the SAP R/3 system. Transactions that are initiated in other SAP components result in corresponding tasks in WM which activate the actual physical transfers within the warehouse.

A few of these activities include:

  • Material movements and changes in material status, such as releasing goods from inspection
  • Material staging to production supply areas
  • Picking and shipping goods for sales orders

Most activities that take place within WM are initiated in Inventory Management. For example, most goods receipts, goods issues and posting changes are initiated in IM and subsequently processed in WM.

WM is also interfaced to Sales and Distribution (SD) through the Shipping module to process delivery documents.

The WM interface to Quality Management (QM) allows warehouse administrators to track and manage inspection lots that are stored in the warehouse.

WM is also interfaced to the Production Planning (PP) system to assist in providing materials to supply areas in production.

SAP Warehouse Management Features

WM provides several features that support warehousing activities. These include the following:

Warehouse Structure

  • Management of complex warehousing facilities to include automatic warehouses, custom-designed storage areas, high rack storage, bulk storage, fixed bin storage and all other commonly used storage areas
  • Definition and adaptation of a limitless variety of storage bins for use in your specific warehousing complex

Goods Movements

  • Processing of all relevant warehousing activities, such as goods receipts, goods issues, deliveries, internal and external stock transfers, automatic replenishment of fixed bins, material staging to production areas and stock difference handling
  • Utilization of random slotting for multiple owners of goods
  • Implementation of a variety of putaway and picking strategies including self-designed strategies
  • Processing of multiple goods movements with transfer requirements and deliveries simultaneously
  • Setup of “forward pick” areas and production supply areas with automated replenishment from case or reserve storage when stock quantities reach a certain threshold


  • Capability to maintain up-to-the-minute inventory records with the aid of stock transfer confirmation
  • Archiving of records of all goods movements and inventory activity

With its inventory functions, SAP Warehouse Management ensures that book inventories in Inventory Management match the stock in the warehouse at any time. Because SAP components are fully integrated, you do not need separate interface programs between IM and WM.

This was a brief synopsis of SAP Warehouse management benefits.

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