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SAP NEWSBYTE – November 15, 2010 – ARC Advisory Group has recognized the SAP® Extended Warehouse Management (SAP EWM) application from SAP AG (NYSE: SAP) as rivaling best-of-breed offerings as a robust solution with differentiated functionality in its report – titled “SAP EWM: A Rival to Best of Breed Solutions?” – SAP EWM is an integral part of the SAP® Supply Chain Management (SAP SCM) application. As a key component in managing logistics and fulfillment, it helps companies gain more control over their warehousing processes and provides the tools needed to transform warehouse operations, improve overall operating margin and increase competitiveness.

According to ARC analyst, Steve Banker, “Four years ago, SAP Extended Warehouse Management was released. SAP is now on their fourth release of [SAP] EWM, and the product has gained traction in the marketplace, due in part to offering a robust solution with differentiated functionality.”

The report credits SAP EWM for having with the features necessary to drive productivity in wholesaling and third-party logistics environment, as well as exceeding other vendor solutions in the following areas:

As part of SAP® Business Suite software, the integration of SAP EWM with other critical business solutions supports end-to-end business processes such as traceability and recalls in the food distribution industry; accuracy of paperwork associated with goods shipped internationally; and spare parts management capabilities for warehouses that manage large amounts of aftermarket service parts.

Labor management and advanced slotting are included in SAP EWM, which helps reduce the cost of implementation — other vendors offer these solutions separately.

SAP EWM includes a material flow solution, commonly known as a warehouse control system (WCS), which enables optimization of an entire warehouse’s activities. Most vendors do not have their own WCS, therefore upgrades can be just as expensive as the initial implementation — impacting total cost of ownership.

Visit to access the report. Follow SAP on Twitter at @sapnews.