Skip to Content
Product Information
Author's profile photo Rahul Kakade

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:

    1. Basic EWM: SAP offers the Basic EWM application component with default S/4 Hana license.
    2. 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?

Conclusion :

SAP endorsed that the best practice solution for complex warehousing businesses is to have decentralized EWM on S/4 HANA server.

If the warehouse structure is simple and not expected to automate in future, then simple EWM solution will be beneficial in use.

Nevertheless, It is important to consider all mentioned point’s into consideration while making the decision.


Refer below notes for additional information.

SAP Note 2806070

SAP Note 2668150



Assigned Tags

      You must be Logged on to comment or reply to a post.
      Author's profile photo Axel Breiter
      Axel Breiter

      Nice overview slides. Helpfull when bringing the topic up to IT Management.

      Author's profile photo Rahul Kakade
      Rahul Kakade
      Blog Post Author

      Thanks Mr. Breiter for your valuable feedback.

      Author's profile photo Mohamed ABDELMOULA
      Mohamed ABDELMOULA

      Nice blog,thank you very much for this arcticle.

      Now, I understood the difference between Embeeded EWM and the Advanced One.

      Author's profile photo Rahul Kakade
      Rahul Kakade
      Blog Post Author

      Thanks Mohamed.

      Author's profile photo girish nataraj
      girish nataraj

      Hi, CIF is applicable to SCM EWM only.

      For S/4HANA decentral EWM, its DRF or ALE based master data integration .

      Author's profile photo Rahul Kakade
      Rahul Kakade
      Blog Post Author

      Hello Girish,

      Thanks for your message.

      Since S/4HANA 1909 the distribution of ERP packaging instructions to EWM is handled via CIF with CFM1 and CFM2.

      After implementing notes (2260234,2485458),you will be able to see the PackSpec checkbox in CFM1 transactions.

      Please check below link for more information.



      Rahul Kakade

      Author's profile photo Sanjay Arora
      Sanjay Arora

      Thanks for sharing the details on EWM. This is really interesting

      Author's profile photo Rahul Kakade
      Rahul Kakade
      Blog Post Author

      Thanks Sanjay.

      Author's profile photo Jon Morley
      Jon Morley

      Thanks for the great detail in describing the differences between, Basic embedded, Advanced embedded and Decentralized. One question comes to mind... In a large global organization that has warehouses of varying sizes and structures, have you seen any of those global orgs deploy all three? Especially if there is only one common S4Hana ERP deployment globally.

      Author's profile photo Manish Janardhana
      Manish Janardhana

      Thank you for the Detailed explanation. One particular doubt I have on this is whether POSC and LOSC is part of Basic EWM license?

      Author's profile photo Rahul Kakade
      Rahul Kakade
      Blog Post Author

      Hello Manish,

      Thanks for your feedback.

      Yes it is part of Basic EWM License.

      You can check below link to know more about basic EWM functionalities.



      Rahul Kakade



      Author's profile photo Aquil Ahmed
      Aquil Ahmed

      Hi Rahul and the group.

      I need some urgent assistance please on the Licence metric being used for SAP EWM Decentralised Option. We have been told that our Licence costs will be based on the no. of Delivery Line items in our WH. We do 4500/Day Outbound based on the orders we receive which means roughly around: 81000 per month and 972K Deliveries per annum. The Licencing metric is classifying us as a transit shipping scenario. In which the charge is per Delivery Line Items. 1 Licence Unit Comprises of 5000 Delivery Line items which is approximately Euros - 22K. If I take 972K/5K = This means 194.4 Units which means 194.4*22K =  Euros 4.2M. This is a one-off cost of 4.2M Euros for one Warehouse that we have which seems very high to us. My questions are:

      Is the metric used correct?

      Are there any other metrics that I can use to reduce this cost?

      We wanted to do this on Unique SKU Costs but seems like that is not any option?

      My questions is how can we bring this costs down, or are these similar costs that other customer using EWM in their WH have paid.

      We have 5 Major WH and approximately our monthly deliveries range to 500K per month. We this metric that is being used for Licence calculation, it doesn't work for us.

      Please provide guidance. I can be reached directly also at

      Author's profile photo Aquil Ahmed
      Aquil Ahmed

      By the way, just a note, this 4.2M is after 80% discount is applied.

      Author's profile photo Sanket Dias
      Sanket Dias

      Rahul Kakade - Why is there no mention of the Standalone EWM model(EWM 9.3, EWM 9.4 & EWM 9.5). Is SAP going to sunset this model ? in PAM it looks like these version have support till December 2027.