LE-WM Migration: A Guide to SAP EWM S/4HANA

SAP LE-WM, or SAP Warehouse Management within the Logistics Execution (LE) module, has been a trusted solution for managing warehouse operations for many years. It excels in core inventory management functionalities like goods receipt, putaway, picking, packing, and shipping. However, as warehouse operations become more sophisticated and require tighter integration with complex supply chain logistics, LE-WM limitations may become apparent. SAP itself recognizes this and offers a powerful alternative: SAP Extended Warehouse Management (SAP EWM). SAP EWM boasts advanced functionalities specifically designed for complex warehouses and seamless integration with other SAP modules.

This article will explore different options available, with a focus on SAP EWM as the recommended path forward. We'll also provide resources to help you navigate the migration process.

Why Migrating from SAP LE-WM System is Essential

Every software has a lifespan, and SAP LE-WM within SAP S/4HANA is nearing the end of its supported life in 2027. This means that after that date, SAP will no longer provide critical security updates, bug fixes, or technical support for LE-WM users.

Continuing with an unsupported system exposes your warehouse operations to potential security vulnerabilities and compliance issues. Additionally, you'll miss out on the latest features and functionalities that can significantly improve efficiency, accuracy, and overall warehouse management. By migrating from LE-WM, you'll ensure continued support, enhanced security, and access to the newest innovations that can keep your business competitive.

Choosing Your Path Forward: Migration Options Explained

With the deadline for LE-WM approaching, several options are available for businesses to ensure a smooth transition. Let's explore the main possibilities, along with their key considerations:

1. Stay on the SAP Stack

This option looks like the most preferable one: the solution itself is quite good, and SAP is among the leaders in warehouse management systems (WMS software), as recently reported by Gartner. Less change management is required because the current team is already familiar with navigation in the system, master data approach, logic behind tasks, and resource allocation. The biggest part of integration and customizing could be reused because of the same ABAP stack being used. There are all prerequisites for the current hardware to be supported as it was for LE-WM. Additionally, SAP provides accelerators like frameworks and migration cockpits for such migration, which can significantly reduce project costs and timelines.

2. Explore Solutions from Other Vendors

Selecting a new WMS vendor can provide access to cutting-edge functionalities not available in LE-WM. When evaluating options, consider factors like the new system's ability to replicate your existing processes, compatibility with current hardware, and the level of customization allowed without vendor dependence. Remember to prioritize features that address your specific needs and establish a clear evaluation process to choose the best fit.

3. Develop a Custom WMS

While a custom warehouse management system solution can offer complete control, it's typically the riskiest option. Development timelines can be unpredictable, and initial functionality might be limited. Additionally, ongoing maintenance and support for a custom system require dedicated resources, and scalability might become an issue as your data volume grows.

Cost Considerations

While developing a custom solution is generally cost-prohibitive due to its complexities, comparing costs between SAP and other vendors can be insightful. Since implementation team rates are typically similar across major vendors, the key differentiator becomes the overall workload involved.

Here, we can use a T-shirt size approach for visualization. For example, integration with a new SAP EWM system would be much easier than with another vendor’s solution, because there is a standard integration functionality provided by SAP and all customizing can be migrated from LE-WM with minor adjustments, while integration with some other new system should be designed almost from scratch. Analyzing each project activity – customization, training, and support – reveals that tasks are generally faster and more efficient with SAP EWM due to its native compatibility with your existing SAP landscape.

What are SAP-related Options for Migration?

Within the SAP ecosystem, you have two primary choices for migration: SAP Stock Room Management (SAP StRM) or SAP Extended Warehouse Management (SAP EWM). Here's a breakdown of these options:

1. SAP Stock Room Management

This option keeps most of the logic from SAP LE-WM, but there is a list of features that, like Wave Management of TRM, are not included in it. It is positioned by SAP as a simple solution for small warehouses provided under the SAP S/4HANA license.

2. SAP Extended Warehouse Management

SAP EWM belongs to the SAP supply chain management package and it's a successor of SAP LE-WM bringing its functionality to the next level. For SAP EWM, there are three options to choose from:

• Basic EWM in SAP S/4HANA is a solution for a simple warehouse that requires more functionality than SAP StRM but may not need the full power of Advanced EWM. It’s built on the SAP EWM core and supports all complex processes except the ones required for optimization, such as wave management, slotting, and rearrangement. Keep in mind that it can’t act as a decentralized system, it can only be connected to the storage locations in the same SAP S/4HANA instance. Furthermore, it doesn't need separate licensing and is distributed under SAP S/4HANA.

• Advanced EWM in SAP S/4HANA is the most advanced solution provided by SAP which has all cutting-edge functions that can satisfy any customer’s needs. It can be deployed independently or as a part of SAP S/4HANA sharing the same DB and resources. A separate license is required for such a solution. What is important, is that advanced SAP EWM can be deployed in current SAP S/4HANA infrastructure (in-stack) or independently (extra stack). License fees depend on the deployment option and amount of documents per year. It could be a few times less expensive for in-stack deployment, than for extra stack.

• Warehouse Management Public Cloud Edition with its roadmap offers a future-proof option for businesses ready to embrace the cloud.

For additional details, please check the SAP Tech Talk “Navigating SAP Warehouse Management Solutions”.

Project Approach Strategies

There are three main approaches to consider when migrating from SAP LE-WM:

1. Brownfield Approach

This approach focuses on a technical move to SAP EWM S/4HANA without fundamentally changing your existing processes. The goal is to leverage the modern technology stack while preserving your current workflows.

2. Greenfield Implementation

Here, you take the opportunity to completely redesign your legacy warehouse processes. By implementing SAP EWM on a "greenfield" basis, you can fully utilize the modern features and functionalities of the new platform to optimize your warehouse operations.

3. Rapid Deployment Solution (RDS)

The focus here is to build implementations based on the pre-configured SAP EWM S/4HANA solution that is aligned with SAP and implementation partner best practices and tailored to customers that prioritize rapid implementation and flexibility in adapting their current business processes to industry best practices.

Timeline Considerations: Sequencing Your Migration

The timing of your SAP EWM deployment relative to SAP S/4HANA implementation presents three possibilities:

1. Pre-S/4HANA Deployment: Implementing SAP EWM before SAP S/4HANA can simplify the SAP S/4HANA project by removing warehouse management complexity. This allows you to benefit from the new system earlier. However, this approach requires designing integrations twice – once for LE-WM and again for SAP S/4HANA. Also, it is not possible to choose basic SAP EWM with this approach.

2. Simultaneous Deployment: Implementing SAP EWM and SAP S/4HANA together can be more complex, but it only requires one integration design. While this approach offers faster overall completion, it requires careful planning and resource allocation.

3. Post-S/4HANA Deployment: While this option is feasible, it shares the same drawback as the pre-S/4HANA approach – you'll need to design integrations firstly for LE-WM and then for SAP EWM S/4HANA separately.

Streamline Your Warehouse Move with the EPAM SAP EWM S/4HANA Transformation Factory

While migrating from SAP LE-WM to SAP EWM S/4HANA is essential, the process can seem daunting. EPAM's SAP EWM S/4HANA Transformation Factory streamlines your journey with a proven approach and expert guidance. This comprehensive service factors in all aspects of migration, from planning and execution to validation. Ensure a smooth transition, minimize disruptions, and unlock the full potential of SAP EWM S/4HANA advanced functionalities. Leverage EPAM's expertise to navigate this critical step and gain a competitive edge in your warehouse operations.

In Conclusion

The deadline for migrating from SAP LE-WM is fast approaching. By carefully considering your specific needs and priorities, you can choose the migration path that best suits your warehouse functions. Whether you opt for a familiar solution like SAP EWM within SAP S/4HANA or explore a complete process redesign with a Greenfield implementation, there's a migration strategy to propel your warehouse into the future. Remember, a successful migration unlocks the door to enhanced efficiency, improved accuracy, and a more competitive edge.