Introduction to SAP Digital Manufacturing + Extended Warehouse Management

Introduction to SAP Digital Manufacturing + Extended Warehouse Management

Authored by Christina Demuth and Joe Montagna


Welcome back!

We are excited to unveil our last Stellium Edge of the year on LinkedIn, brimming with valuable insights to deepen your grasp of supply chain dynamics and ignite innovation within your organizations.

As the year draws to a close, we extend warm wishes to you and your loved ones for a joyous holiday season. May the upcoming New Year bring an abundance of prosperity, innovation, and success to your doorstep. We're eagerly looking forward to reconnecting with you in January 2024.

Cheers to a wonderful holiday season and an even more remarkable year ahead!


In this issue of Stellium Edge, we’ll provide an introduction to SAP’s manufacturing execution and warehouse management solutions and how they work together – focusing on the what, the who, and the why.?

SAP Digital Manufacturing (DM)?

SAP DM is a material-based manufacturing execution system that supports key production functions like as-built configuration, quality reporting, inventory, scrap, and yield tracking. It also provides tools for labor and machine planning and scheduling, facilitates IT/OT collaboration through integration and automation services, and provides real-time and post-production visibility and analytics.?

SAP DM serves customers in discrete and process manufacturing environments, providing tools to drive continuous improvement from the individual asset level up to the global business level. Manufacturers can expect, depending on their current state and future objectives, to improve KPIs such as:?

  • OEE?
  • On-time Delivery?
  • Labor Costs?
  • Throughput?
  • First Pass Yield?
  • Defects Per Unit?

  • Unplanned Downtime?
  • Asset Utilization?
  • Order Status Visibility?

SAP Extended Warehouse Management (EWM)?

SAP EWM is an end-to-end warehouse management solution designed to streamline and optimize warehouse and distribution center operations. This covers everything from inventory, warehouse order, task, and labor management to slotting, cross-docking, and RFID integration to advanced analytics and reporting.??

EWM helps customers with warehouse operations of varying size and complexity to streamline warehouse processes, optimize inventory, reduce costs, and improve order fulfillment through orchestration and monitoring of KPIs such as:

  • Order Fulfillment Rate and Lead Time?
  • Inventory Accuracy?
  • Order Picking and RFID Read Accuracy?
  • Warehouse & Resource Utilization?
  • Dock-to-Stock Time?
  • Returns Processing Time?
  • Out-of-Stock Rate?
  • Order Status Visibility?

Integrated Production Logistics?


Together, SAP DM and EWM enable supply chain collaboration for unified warehouse & manufacturing operations. By tracking and communicating actual usage and generating material requests in real-time directly from the floor, true pull replenishment can be achieved. This generates key benefits like:?

Increased Inventory Visibility & Control of:?

  • Production Supply?
  • Material Consumption?
  • Goods Receipts?

Reduced Floor Stock & Costs?

End-to-End Traceability

Ultimately, these can significantly contribute to the overall profitability and sustainability of the organization.??

Partnering with Stellium??

Stellium is a niche SAP partner, specializing in digital supply chain and manufacturing solutions, including DM & EWM. We provide design and strategy consulting for processes and technology, as well as implementation services to deliver quality, innovation solutions.

Email us at [email protected] to arrange a warehouse and/or manufacturing site assessment.


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