Benefits and Insights

Why use SAP Warehouse Management System (WMS)?

Key differentiators & advantages of SAP Warehouse Management System (WMS)

  • Storage Bin Management
    You map your entire storage facilities in the Warehouse Management system . In doing so, you can set up various storage facilities such as automatic warehouse, high rack storage areas, bulk storage or fixed storage bins in various storage types , according to your needs.

  • Goods Movements
    You process all goods movements that affect your warehouse via the WMS. This includes goods receipts, goods issues, stock transfers, material staging for production, automatic replenishment, managing hazardous materials, and processing stock differences in your warehouse. The WMS optimizes warehouse capacities and material flows using putaway and stock removal strategies, which you can adjust to suit your individual needs, or by using storage units.

  • Planning and Monitoring
    The WMS offers you an overview of all goods issues and warehouse stocks. The system supports you in planning, monitoring, and optimizing work processes. For example, it gives you a foresighted view of the workload in the coming days or allows you to intervene in good time during critical warehouse processes, so that you can execute warehouse movements on time. Via the RF monitor, you get an up-to-date picture of all of the activities in the warehouse, which means that you can control the actual work in the warehouse using the RF monitor.

  • Radio Frequency Connection
    In order to structure the work in the warehouse efficiently and cost-effectively, you control the warehouse workers’ work steps clearly and simply via mobile radio-frequency terminals. Radio frequency connection (RF connection) to mobile date entry achieves quick and flawless data transfer. The RF machines receive data directly from the SAP system and transfer data back to the system. Using barcodes, you can record information to be recorded and verify it. This means that you ensure a high standard of quality in your warehouse.

  • Decentralized WMS
    You can run the WMS as a standalone decentralized warehouse management system, independent of a central enterprise resource planning system (ERP system). For more information, see Decentralized Warehouse Management.

  • Warehouse Control
    WMS also has an interface to external systems (warehouse control units), so that you can integrate automatic putaway, stock removal systems or fork lift control systems into the warehouse management system for all warehouse movements with the help of this ALE interface.
Cost of Ownership

Typical cost structure for SAP WMS:

License/Subscription Cost Subscription-based pricing model – per month per user
Maintenance Cost
  • Cost is included in the subscription fee
  • SAP support contract provides users access to SAP support infrastructure and receive software corrections, patches, fixes and new releases of the software versions
  • SAP Support provides all core services such as upgrades, 24X7 support, backup, recovery management, mobile access and regular upgrades, which are covered by SAP and all are included in the monthly fee
  • SAP offers SAP Support Portal for reporting an incident, request keys, downloading software, search product documentation, SAP knowledge base, and SAP notes
  • Additional fee is charged for dedicated server
Installation/Implementation Cost None
Customization Cost Cost will vary depending on the functional requirements added, based on the organization’s requirements
Data Migration Cost/Change Management/Upfront Switching Cost Cost will vary depending on the amount and type of data to be migrated from the legacy system, availability of migration tools, data profiling, data cleansing to eliminate errors and audit trail of the migration process for accountability
Training Cost
  • For both types of deployments, cost is over and above the subscription fee
  • Users can purchase the subscriptions for SAP Learning Hub on their own or the organization can provide subscriptions for thousands of users
  • Provides SAP Ariba training via SAP Ariba Education which consists of Standard training and Custom training
  • SAP Ariba training is offered through diverse types of classrooms such as virtual classroom, traditional classroom – custom or private training, remote and through the cloud in SAP Learning Hub
Recurring/Renewal Costs Cost is equivalent to the subscription cost paid monthly or annually based on the number of users, customization cost, and training cost
Pricing Details
Product Name Description Price/Details
Pricing of SAP WMS What is the cost of the software? Pricing information is available on request only
Deployment Options What options are available for product deployment? Cloud based/SaaS
Pricing Model What is the pricing model? Subscription-based
Minimum Commitment Is there a minimum monthly or yearly commitment required for purchase? No minimum commitment is required
Custom Quote Can you get a custom quote? Yes
Free Trial Does the vendor provide a free trial option? No
Product Limitations

Some of the product limitations include:

  • Does not support Billing Management functionality. However, the solution can be integrated with SAP Hybris Billing tool
  • Limited BI functionality and does not support BI tools, activity dashboards, and reporting functionalities. However, the solution can be integrated with SAP Business Objects BI platform
  • Does not provide Labor Management functionality
  • SAP WMS does not support Payment Processing functionality
  • Does not support integration with tools such as QuickBooks and Xero

Oracle WMS: Starting at $10 per month per 1,000 warehouse transactions

Fishbowl: Starts at $4,395/license (one-time fee)

JDA WMS: Starting at $1,200 per month per site for unlimited number of users

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