“Trade isn't about goods. Trade is about information. Goods sit in the warehouse until information moves them” - C. J. Cherryh
Trade is not simply about goods alone but also about the information that facilitates the movement of goods. As raw materials are transformed into finished products and move throughout the supply chain, information is crucial for ensuring that goods are stored, transported, and delivered efficiently. During the COVID-19 pandemic, this became a prominent issue as disruptions in the supply chain caused empty retail shelves and widespread concern about the movement of goods which led even my nine-year-old to question such a visible impact.
Returning to C.J. Cherryh's assertion, it is clear that information plays a vital role in the entire spectrum of processes involved in the movement of goods, from the acquisition of raw materials in one part of the world to the delivery of finished products to another part, or even within the same area. As raw materials transform into semi-finished and ultimately finished goods, storing them at multiple points within the supply chain is necessary to facilitate their value addition.
Goods storage takes up space and incurs a cost; thus, it's critical to optimize the ways we store goods and process the inbound and outbound movement. As warehousing evolves, organizations look at the ways and means to tackle challenges the warehousing industry faces, like space optimization, labor, and resource utilization, and cost for order fulfillment & compliance. Solving these pressing challenges requires a combination of technology adoption, process improvement, and strategic planning.
Technology adoption at the warehouse implies the implementation of automation like Automated Storage and Retrieval Systems (ASRS), Automated Guided Vehicles (AGVs), and Warehouse Management Systems (WMS), among many other innovative tech solutions. There are various Warehouse Management Systems available in the market.
SAP Extended Warehouse Management (EWM) is ranked amongst the best solutions. At ArchLynk, we have partnered with and supported supply chain transformation journeys of global customers and deployed SAP EWM across industries. Our expertise in deploying this solution has been across all kinds of warehouses, whether a raw material warehouse, production, or Just-in-Time warehouse for master and regional distribution or fulfillment centers. SAP EWM has shown a significant positive impact on space utilization, labor utilization, and inventory management.
The SAP Extended Warehouse Management (EWM) system offers a diverse array of placement and removal strategies that can be customized to meet the client's specific needs. This enables a high degree of flexibility in optimizing storage space for various products, such as fresh and ambient items. In addition, for Logistics Service Providers (LSPs), EWM can aid in the physical storage of products belonging to multiple clients while ensuring that space is utilized efficiently.
The Wave Management feature of this system enables the optimization of warehouse orders by matching work packages to resources, thus maximizing execution efficiency. The system's robust Exception Handling capabilities also ensure a swift recovery from any unforeseen changes. Furthermore, the powerful Warehouse Monitor Tool is a comprehensive resource for warehouse supervisors, providing all necessary information in one convenient location.
One of its key features is the MFS integration, which can interface with various technologies, such as automation and robotics, to enhance warehouse efficiency and accuracy. Ensuring that warehouse staff has real-time visibility into inventory levels and locations is crucial for efficient stock management, as it facilitates timely adjustments and helps prevent inventory shortfalls.
As a component of the SAP Supply Chain product portfolio, SAP EWM has the capacity to integrate with solutions such as SAP Transportation Management, which streamlines the transportation planning and execution process. Route information is a critical factor in determining loading sequences and arrival or pickup times, providing essential data for warehouse staff to plan picking and unloading activities and other subsequent tasks. Our clients have experienced significant benefits from this integration in their distribution centers by creating a pull within a warehouse, efficient workforce planning, faster order processing, and optimized cross-docking operations, among other advantages.
During our collaboration with a chemical manufacturing company, we witnessed the advantages of utilizing the Dangerous Goods Information Integration feature in effectively managing hazardous materials. Additionally, the new embedded Quality Control process in SAP S/4HANA enables the integrated system to guarantee that only quality-approved products are received and stored in the warehouse, further enhancing product safety and regulatory compliance.
In conclusion, SAP EWM is a powerful and flexible warehouse management system that offers numerous benefits to businesses across various industries. ArchLynk's expertise in this area has enabled our clients to realize significant improvements in key performance metrics such as:
As a certified SAP partner with deep expertise in supply chain transformations, ArchLynk can help companies implement SAP EWM effectively and efficiently, ensuring maximum value and return on investment. We back your efforts throughout the implementation process, from initial scoping and requirements gathering to deployment and ongoing support. To know more, Speak to an ArchLynk Expert.
