SAP Warehouse Management

Do you know that SAP Warehouse Management is used in more than 1,000 operations around the world? We are familiar with SAP, but What is SAP Warehouse Management? Let me tell you. A warehouse is a commercial place usually used for storing goods. It plays an important role in achieving the business' productivity goals. A warehouse management system makes the process more efficient, consistent and quality controlled by assisting us in moving goods via the warehouse at maximum speed, enhancing each stage of the fulfillment process. In this blog, let us understand warehouse management offered by SAP, why it is used and how the warehouse management is done. So, Let's get started with SAP Warehouse Management.

What is SAP warehouse management?

SAP Warehouse Management is an ERP software which integrates the functions of a warehouse and simplifies and controls all the processes of the warehouse for creating an efficient operation. It enables the users to manage all the structures present in the warehouse operation, whatever their complexity, while monitoring inventory differences and controlling dangerous goods. It also uses barcode scanners to accelerate the inventory processes.

Stock transfers and receipts of goods can be handled while monitoring the inbound and outbound goods all day long. All the logistics required for a successful warehousing operation can be ensured, and many of the time-taking processes may be automated to retain resources. Automates resource-intensive processes and takes advantage of inventory management at the bin level to improve the organization's accuracy and organization. It tracks the physical locations inside as well.

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Why SAP Warehouse Management?

  • SAP Warehouse Management uses BarCode Scanners which can significantly enhance inventory management processes. As the inventory processes accelerate, people will have more time to concentrate on the essential tasks.
  • SAP Warehouse Management software solution tracks all goods when they enter, exit or are in the warehouse. The stock update helps to prevent the errors which would lead to an insufficient product and reduces the time for picking and packing with a precise location of the products to be shipped.
  • SAP warehouse management will automate several time-taking processes that may be affected by human error. As accuracy grows across the warehouse, the costs are reduced, and additional times may be granted for higher-level decision-making as well as guidance.

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  • Storage bins defined for products prevent a warehouse from becoming disorganized and having a tendency to errors. Moving pallets that hold a variety of stock gets a lot easier when everything has a predefined location.
  • SAP Warehouse Management enables users to customize its features to meet their individual needs better. Complex operations may utilize all the functions, while small warehouses may choose what they require to function correctly. 
  • SAP allows you to make use of your maximum storage space, employees, and time. It also helps you create your inventory to make the most of the employee journey and keep only the inventory you require.

It allows us to understand where the stock is, the way labor is allocated, and how the automation tools work. Find out what the problems are and fix them before they become expensive problems later. Multinational companies can take advantage of this platform to make sure that all essential regulatory and international trade requirements are met. 

Benefits of SAP WM:

  • SAP WM enables us to manage troubleshooting issues and processing of complex warehouse stock problems in an improved and simple way.

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  • SAP WM deals with the problems like the proper processing of the goods in stock, the efficient management of goods receipts, and the stock transfers. It made the work processes very progressive and clear for the organizations and their clients.
  • SAP WM assists the companies in meeting warehouse inventory maintenance challenges in a very systematic and cost-effective manner.
  • The material flow gets very gentle with the pick-and-put away techniques of the WMS.

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Overview of SAP Warehouse Management:

The activities that are included in SAP Warehouse Management are:

  • Movements of material and changes in the status of the material, like the release of inspection goods.
  • Staging the material to the production Supply areas.
  • Picking the goods and shipping them for the sales order.

Warehouse Management assists us in identifying the stock status of the material at the Bin Level. It helps us to process the goods' movements and maintain the inventories. Inventory Management starts the Warehouse Management process. In Addition, it is integrated with Production Planning, Sales and Distribution, and Quality management to operate as an ERP system.

Process Flow in SAP Warehouse Management:

  • Defining and managing complicated warehousing structures
  • Optimizing Material flow with the help of enhanced picking and putaway techniques
  • Processing the good receipts, stock transfers, and goods issues easily and quickly

Warehouse Management is completely integrated with the SAP R/3 system. Transactions which are started in other SAP components give rise to corresponding tasks in the Warehouse Management that enable actual physical transfers to the warehouse.

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SAP Warehouse Management enables us to define and map the physical warehousing structure in the System, process the movement of goods such as issues, stock transfers, and receipts, and maintain stock inventory updates in the warehouse complex at the storage bin level. Warehouse Management is embedded with Sales and Distribution, Material Management, and quality management modules. For the material movement, the base material will be generated either in SD, QM, or MM modules. For Goods receipt from the vendors as well as other plants, the base document is generated from the MM module. And for the goods issue for production or the other plants, the base document is generated from the MM module. Since quality management is an active part of the organization, all materials will be subject to the quality inspection process. At the same time, GI and GR and the post-change document is generated in the quality management for placing or removing material in the warehouse.

During production, during the process of GR quality, as well as online inspection, the base document for returning the material to the vendor is generated in the QM module. For the goods delivery against the sales order, the delivery document is generated in the SD module for the material removal from the warehouse. To handle the material returned by the customer, the basic document is generated in the SD module. Inventory will be handled both at the storage location level at the inventory management level and at the bin level in the warehouse management. The WM module is also equipped with RFID & Barcode reading features. These may be explored and implemented in the future as a distinct project.


In this blog, we have learned about SAP Warehouse Management (WM), why we use the SAP Warehouse management system, the benefits of SAP WM, and an overview of SAP Warehouse Management. We hope you found this information helpful! For more blogs such as this, keep an eye out for HKR Trainings.

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Kavya Gowda
Kavya Gowda
Research Analyst
Kavya works for HKR Trainings institute as a technical writer with diverse experience in many kinds of technology-related content development. She holds a graduate education in the Computer science and Engineering stream. She has cultivated strong technical skills from reading tech blogs and also doing a lot of research related to content. She manages to write great content in many fields like Programming & Frameworks, Enterprise Integration, Web Development, SAP, and Business Process Management (BPM). Connect her on LinkedIn and Twitter.

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