Oracle Warehouse Management Cloud (WMS) Vs SAP Extended Warehouse Management (EWM)

Warehouse management has become a critical component for businesses today. It involves efficiently managing storage, inventory, and distribution processes. The use of Warehouse Management Systems (WMS) has become more popular as companies look to streamline their operations for better efficiency and cost reduction. Two popular options, Oracle Warehouse Management Cloud (WMS) and SAP Extended Warehouse Management (EWM), stand out in the market. This article provides an overview of these two systems and compares them across features, implementation, pricing, customer success stories, and future roadmaps.

Introduction to Warehouse Management Systems (WMS) and Extended Warehouse Management (EWM)

Warehouse Management Systems (WMS) are designed to support and optimize warehouse functionality. They offer various features like inventory management, inbound and outbound processes, and advanced picking. On the other hand, Extended Warehouse Management (EWM) is SAP’s solution for advanced warehouse management, providing additional features that integrate warehouse processes into the entire supply chain management solution, enhancing functionality in transportation, production, and quality management.

One of the key benefits of using a WMS is the reduction of errors and improvement of accuracy in warehouse operations. By automating processes such as inventory tracking and order fulfillment, WMS can eliminate manual errors and reduce the risk of stockouts or overstocking. Additionally, WMS provides real-time visibility into inventory levels, allowing companies to make informed decisions about purchasing and production.

EWM elevates warehouse management by offering advanced features like wave management, cross-docking, and labor management. With EWM, companies can optimize their warehouse operations by streamlining processes and reducing waste. For example, EWM can decrease the time required to pick and pack orders, leading to faster delivery times and improved customer satisfaction. EWM also helps companies reduce labor costs by optimizing staffing levels and enhancing worker productivity.

Overview of Oracle Warehouse Management Cloud (WMS)

Oracle’s WMS is a cloud-based solution that provides fundamental warehouse management functionality. It delivers end-to-end supply chain functionality, offers real-time inventory management, and enables users to simplify their workflows to improve efficiency. Its features include:

Receiving and put-away
Inventory management
Picking, packing, and shipping
Courier integration and returns management

With Oracle WMS, users can improve inventory accuracy, reduce labor costs, and enhance order fulfillment rates.

One of the key benefits of Oracle WMS is its ability to integrate seamlessly with other Oracle cloud solutions, such as Transportation Management Cloud and Global Trade Management Cloud. This integration facilitates a seamless flow of information across the entire supply chain, from order placement to delivery. Additionally, Oracle WMS offers advanced analytics and reporting capabilities, allowing users to gain insights into their warehouse operations and make data-driven decisions.

Another advantage of Oracle WMS is its flexibility and scalability. The solution can be customized to meet the specific needs of different industries and businesses, and it can easily adapt to changing business requirements. As a cloud-based solution, Oracle WMS also offers the benefits of easy deployment, automatic updates, and lower IT costs compared to traditional on-premise solutions.

Overview of SAP Extended Warehouse Management (EWM)

SAP’s solution, EWM, is an advanced warehouse management system that provides comprehensive support for managing logistics processes. EWM comes with a broad range of features, including:

Inventory management
Put-away and storage bin control
Replenishment control
Picking and packing
Supply chain optimization
Yard logistics and labor management

It is tightly integrated with other SAP components like Transportation Management, Production Planning, and Quality Management. EWM can manage complex warehouse operations, increase order accuracy, and decrease labor costs.

One of the key benefits of SAP EWM is its ability to provide real-time visibility into warehouse operations. This allows warehouse managers to monitor inventory levels, track order status, and identify potential bottlenecks in the supply chain. Additionally, EWM offers advanced analytics and reporting capabilities, which help organizations make data-driven decisions to optimize their warehouse operations. With its robust functionality and integration with other SAP solutions, EWM is a powerful tool for managing complex logistics processes and improving overall supply chain efficiency.

Comparison between Oracle WMS and SAP EWM

In terms of feature availability, Oracle WMS covers all essential warehouse management functionalities, while SAP EWM offers in-depth functionality and options for optimization. Oracle WMS is suitable for small to medium-sized warehouses, whereas SAP EWM provides extensive capabilities for complex operational scenarios, larger warehouses, and more advanced business requirements.

One of the key differences between Oracle WMS and SAP EWM is their approach to customization. Oracle WMS offers a more straightforward and user-friendly customization process, while SAP EWM requires more technical expertise and resources to customize. This can be a significant factor for companies with unique business requirements that need tailored solutions.

Another factor to consider is the cost of implementation and maintenance. Oracle WMS is generally more cost-effective, with lower implementation and maintenance costs compared to SAP EWM. However, SAP EWM's extensive capabilities and advanced features may justify the higher costs for companies with complex operational scenarios and larger warehouses.

Deployment Options for Oracle WMS and SAP EWM

Oracle WMS is implemented in the cloud and is available through a subscription model. In contrast, SAP EWM is available both on-premise and in the cloud, providing flexibility to meet a wide range of deployment requirements.

When it comes to implementation time, Oracle WMS can be deployed much faster than SAP EWM due to its cloud-based nature. This means that businesses can start using Oracle WMS sooner, without worrying about the time and resources required for on-premise installation.

However, SAP EWM offers more customization options than Oracle WMS, allowing businesses to tailor the software to their specific needs. This can be particularly beneficial for larger organizations with complex supply chain operations that require a high degree of flexibility and control.

Features and Functionalities of Oracle WMS

Key features of Oracle WMS include:

Real-time inventory management
Efficient management of warehouse workflows
Improved accuracy in order fulfillment
Reduced labor costs

In addition to the key features mentioned above, Oracle WMS also offers:

Advanced reporting and analytics capabilities for better decision-making
Integration with other Oracle applications such as ERP and SCM for seamless business processes
Support for multiple warehouse types including distribution centers, manufacturing facilities, and retail stores
Flexible configuration options to meet the unique needs of each organization

Features and Functionalities of SAP EWM

The key features of SAP EWM include:

Centralized inventory visibility and control
Advanced labor management
Dynamic pick, pack, and put-away strategies
Quality management and hazardous materials handling

In addition to the key features mentioned above, SAP EWM also offers:

Integration with other SAP modules such as SAP ERP and SAP TM
Real-time monitoring and reporting of warehouse operations

The integration with other SAP modules allows for seamless data flow between different business processes, resulting in increased efficiency and accuracy. Real-time monitoring and reporting of warehouse operations enable quick decision-making and proactive problem-solving, leading to improved customer satisfaction.

Pros and Cons of Using Oracle WMS

Pros:

Easy implementation
Affordable pricing
Seamless integration with other Oracle products

Cons:

May not offer the depth of technology required for more complex operations
Limited for extensive supply chain scenarios

Pros and Cons of Using SAP EWM

Pros:

Provides deep functionality to handle complex warehouse operations
Continuous growth and adaptation ability
High level of configuration possibilities and customization

Cons:

Significantly more expensive than other solutions
Less viable for companies on a tight budget

Integration Capabilities of Oracle WMS

Oracle WMS offers excellent integration with other Oracle software products such as Oracle Supply Chain Management (SCM), Transportation Management, and Global Trade Management. This seamless integration ensures efficient data flow and coordination across various business functions.

Integration Capabilities of SAP EWM

SAP EWM offers complete integration with other SAP products, including Warehouse Management, Supply Chain Management, and Transportation Management software. This ensures a unified approach to managing diverse business processes, enhancing overall efficiency and accuracy.

Implementation Considerations for Oracle WMS

Oracle WMS provides a straightforward implementation process and is typically deployed in less than 100 days. The speed of implementation may vary depending on requirements and company size, but overall, the process is relatively fast and efficient.

Implementation Considerations for SAP EWM

SAP EWM requires expert-level configuration and customization and typically necessitates professional consultation and implementation. Due to its complexity, the entire implementation process can take more time and resources compared to Oracle WMS.

Pricing Models for Oracle WMS

Oracle WMS offers a subscription-based pricing model, making it practical and affordable for small to medium-sized businesses. The pricing model is based on a per-user basis, with additional costs for Oracle cloud infrastructure and storage.

Pricing Models for SAP EWM

SAP EWM offers a mix of on-premise and cloud-based deployment solutions, with pricing varying depending on the mode of deployment and the extent of customization required. SAP EWM is known for its high pricing, making it most suited for larger organizations or those with complex warehouse operations.

Customer Success Stories with Oracle WMS

Textron – A co-developer for Oracle WMS – has seen improvements in inventory accuracy up to 99.99% and a 25% increase in productivity. These statistics represent a significant improvement to business functions.

Rogers – One of the leading communications and media companies in the United States – implemented Oracle WMS and enabled the company to save millions of dollars.

Customer Success Stories with SAP EWM

Benteler – A globally known steel supplier – was able to reduce labor requirements by 20% and improve the supply chain's overall efficiency using SAP EWM.

Al-Futtaim Logistics – A leading logistics provider in the United Arab Emirates – implemented SAP EWM and improved inventory accuracy from 60% to 97% and productivity by around 15%, demonstrating the potential impact of EWM on businesses.

Future Roadmaps for Oracle WMS

Oracle’s WMS roadmap includes an emphasis on improving the platform's mobility, increasing AI-enabled automation, optimizing returns management, and enhancing global trade management functionality.

Future Roadmaps for SAP EWM

SAP EWM’s future enhancements will focus on simplifying system usage and increasing scalability. SAP is also extending the software's capabilities by utilizing the latest technologies such as the Internet of Things (IoT), machine learning, and artificial intelligence, providing more innovative options for users.

Conclusion

Choosing a warehouse management system is an important decision that can significantly impact your business's success. Both Oracle WMS and SAP EWM provide high-quality solutions, depending on your business size and requirements. Oracle WMS is ideal for small to medium-sized businesses, while SAP EWM is more suited for larger organizations that require advanced functionality. Ultimately, selecting the right WMS solution for your business will require a careful evaluation of features, capabilities, and pricing structures.