How Wholesale Distributors Can Achieve Supply Chain Optimization with SAP EWM

With increasing customer demands, fluctuating market dynamics, and supply chain disruptions becoming more common, companies are constantly searching for innovative solutions to improve their supply chain operations. As such, we’ve seen more and more clients in the wholesale distribution industry turning toward SAP Extended Warehouse Management (EWM) for their supply chain needs.  

Below, we explore how wholesale distributors can achieve supply chain optimization with SAP EWM and stay ahead in the wholesale distribution landscape. 

SUPPLY CHAIN OPTIMIZATION WITH SAP EWM 

SAP EWM is a comprehensive warehouse management system that provides advanced functionalities to optimize warehouse processes, allowing organizations to improve their overall supply chain efficiency and resiliency. Some of the key benefits of SAP EWM include: 

Enhanced Inventory Visibility 

One of the biggest benefits of SAP EWM is its ability to provide real-time visibility into inventory levels across the supply chain network. By integrating with other SAP modules, EWM offers a centralized platform for managing inventory from procurement to distribution. This level of visibility enables businesses to track inventory levels accurately, identify stock shortages or excess, make informed decisions to optimize inventory levels, and more. 

With SAP EWM, businesses can also implement advanced inventory management techniques, such as cycle counting and slotting optimization. These techniques help categorize inventory based on value and demand, prioritize high-value items, and optimize warehouse layout for efficient picking and storage. By leveraging these capabilities, businesses can reduce carrying costs, minimize stockouts, and improve their inventory turnover rates. 

Streamlined Warehouse Operations 

Efficient warehouse operations are essential for meeting customer demands and reducing order fulfillment times. SAP EWM offers a range of features to streamline warehouse processes and operations, including advanced warehouse layout design and automated storage and retrieval systems. 

For example, businesses can optimize warehouse layout and storage bin allocation to minimize travel time and maximize storage capacity. The system also supports various picking methods such as batch picking and zone picking, allowing businesses to tailor their picking processes to specific operational requirements. Additionally, SAP EWM integrates with material handling equipment such as conveyors and robotics to automate repetitive tasks and improve throughput rates. 

Improved Order Fulfillment 

Timely and accurate order fulfillment is critical for customer experience and satisfaction, and SAP EWM provides advanced order management capabilities to ensure on-time delivery. The system supports multi-channel order processing, order consolidation, and cross-docking, allowing distributors to efficiently manage orders from multiple sales channels and fulfill them from the most optimal location. 

Businesses can implement advanced picking strategies, as mentioned above, and the system also supports packing optimization to minimize packaging materials and reduce shipping costs. By automating order fulfillment processes and leveraging real-time inventory visibility, wholesale distributors can improve order accuracy and reduce order cycle times. 

Integration With Supply Chain Partners 

SAP EWM offers seamless integration capabilities with third-party logistics providers (3PLs), carriers, and trading partners so that businesses can collaborate effectively. By integrating with external systems and partners, businesses can exchange real-time information on inventory levels, order status, and shipment tracking, allowing for better coordination and visibility across the entire supply chain network. This level of integration facilitates faster decision-making, reduces lead times, and improves overall supply chain responsiveness. 

Real-time Analytics And Reporting 

Data-driven insights are crucial for identifying inefficiencies and driving continuous improvement in supply chain operations. SAP EWM provides robust analytics and reporting capabilities to monitor KPIs, track operational metrics, and gain actionable insights into warehouse performance. 

With SAP EWM, businesses can generate customized reports and dashboards to visualize warehouse performance metrics such as order fulfillment rates and labor productivity. The system also supports predictive analytics and machine learning algorithms to forecast demand and anticipate supply chain disruptions proactively. 

OPTIMIZING YOUR SUPPLY CHAIN WITH SAP EWM 

SAP EWM offers a comprehensive solution to streamline warehouse operations and optimize supply chain operations. By leveraging its advanced functionalities, wholesale distributors can achieve significant cost savings while improving customer satisfaction.  

Contact Crescense to learn more about how wholesale distributors can achieve supply chain optimization with SAP EWM.