Accelerated implementation of SAP EWM through templates

SAP system templates are preconceived, prefabricated and standardised configurations of SAP systems that enable fast and efficient implementation. They are a structured, reusable basis for implementation based on industry best practices and ensure that a company's business processes - in this case the warehouse logistics processes - are implemented in a consistent and standardised manner. The templates ensure that all locations or departments work according to the same principles and that not everyone develops their own solution.

There are various types of templates that offer different approaches for integrating and customising SAP solutions. These range from globally standardised templates to specific variants that are adapted to local conditions or specific business areas. Choosing the template methodology best suited to the company is crucial in order to map the process landscape as accurately as possible and thereby maximise cost savings. When selecting the SAP system template, care should be taken to ensure that the template offers as much standardisation as possible, but leaves enough room for individual adaptations. 

A template approach is particularly advantageous if SAP EWM is to be implemented in several warehouses. When the first warehouse is introduced, processes and structures are created that can be reused for future locations. This leads to considerable cost and time savings in the long term.

Key cost benefits of a template:

Reusable structures: After the initial implementation, time-consuming design, testing and acceptance phases for additional locations are no longer necessary. A template functions like a standardised software solution that only needs to be adapted locally and only needs to be validated within this framework. This not only saves resources, but also ensures consistently high quality during rollouts.

1.      Faster implementation times: By reusing predefined processes, the time required per location is significantly reduced, which makes the introduction of new warehouse locations easier to plan and reduces labour costs. After two or three implementation cycles, in many cases it is even possible to introduce several warehouses in parallel, which further reduces the rollout time.

2.      Standardisation and harmonisation: Companies can efficiently implement central guidelines and best practices, which stabilises the system landscape and simplifies operations.

A template approach is particularly advantageous when several locations are to be implemented. The more homogeneous the processes and the greater the number of locations, the greater the benefit. The initial investment is amortised after just a few rollouts, and the long-term savings exceed the initial costs. Companies that opt for this approach benefit from a scalable, future-proof solution.

A template approach may be less suitable for companies that are only planning one or two locations, as the initial outlay often does not fully pay off in such cases. For larger rollout projects, on the other hand, the strategy offers a clear advantage as resources are utilised efficiently and implementations are completed more quickly.

The decision to use templates therefore depends on the number of locations, the complexity of the processes and the planned scaling.

The core template design represents a standardised version of the SAP system that maps the global business processes and requirements of a company. This template forms the basis for the implementation of SAP EWM and is used throughout the company.

Advantages of the core template design:

• Standardisation: A central template makes it possible to harmonise business processes worldwide, which leads to greater efficiency and consistency.
• Faster implementation: As the basic configuration is already defined, implementation is quicker.
• Cost savings: Standardised processes reduce the effort required for individual adaptations and thus lower implementation costs.
• Global integration: The core template facilitates the consistent integration of SAP in different countries or regions, which is particularly advantageous for globally active companies.

Example: In highly regulated business areas such as the pharmaceutical sector, where medicines are stored, there are numerous legal regulations, meaning that processes must always be standardised. In this case, a core template can be the best basis for enabling the replication of warehouses and implementing standardised processes nationally and internationally.

Suitable for: Companies that strive for a high level of standardisation and central control of their SAP systems, especially in large international groups with globally operating business processes.

The "Core & Local Templates" design extends the core template with local customisations that are tailored to the specific requirements of individual regions or business units without compromising global consistency.

Advantages of the Core & Local Variants design:

• Balance between standardisation and flexibility: The core template provides a uniform basis, while local variants take specific requirements into account.
• Fulfilment of local requirements: Adaptations to local legal, fiscal or cultural conditions ensure compliance with regional regulations.
• Increased acceptance: Local customisation promotes acceptance of the system among employees, as it better meets their individual needs.

Example: The core template contains all the central goods receipt and goods issue processes that are required for international use. During the first implementation of the core template in the UK, a local variant is added that specifically covers the customs process. To this end, SAP GTS will be integrated in order to organise both goods receipt and goods issue in a customs-compliant manner. This local version supplements the core template and adds customs integration. The advantage: this extension is not just limited to the UK, but can later be flexibly used in other countries or processes that are relevant to customs. This creates a reusable, standardised solution that efficiently covers international requirements.

Suitable for: Companies that want globally standardised processes but need flexibility to integrate regional or local requirements.

The modular design divides SAP into individual modules that can be implemented or customised as required. This structure enables a high degree of customisability, as each module is configured independently.

Advantages of the modular design:

• Flexibility: Companies can integrate only those modules that meet their specific requirements, thereby reducing complexity.
• Scalability: New modules can be easily added as required, enabling adaptation to growing or changing business requirements.
• Focussing on the core: Companies can concentrate on the essential functions and avoid unnecessary complexity through unused modules.

Example: A company that diversifies its products and adds new product categories can benefit from the modular strategy by setting up modular warehouses for the product types stored in each case. If, for example, construction machinery is stored alongside building materials, a separate modular template can be created for each product type. This allows inbound and outbound deliveries to be customised, service options to be activated and internal warehouse processes to be enabled.

Suitable for: Companies that require a high degree of flexibility and want to gradually expand or customise their SAP landscape.

Site-specific templates customise SAP systems to the requirements of an individual site or branch. Each installation receives a customised configuration that is optimally adapted to the local business processes.

Advantages of site-specific templates:

• Maximum customisation: Each system is adapted precisely to the specific requirements of a location or department.
• Optimisation of local business processes: The system is designed to address local challenges and increase local efficiency.
• Increased user acceptance: Precise customisation to local conditions increases the likelihood of rapid acceptance by employees.

Example: A company that operates in different countries and has different regulatory requirements and business processes in each country can implement a site-specific template for each location to meet the specific needs.

Suitable for: Companies with a decentralised structure or those that have very different requirements at the respective locations.

The hybrid design combines several of the above-mentioned template approaches and creates a solution that includes both centralised and decentralised elements. One possible example is a company that uses a global core template for its centralised processes and makes additional specific adaptations for certain business units or regions.

Advantages of the hybrid design:

• Combination of flexibility and standardisation: Companies can combine the advantages of standardisation with those of customisation so that both global and local requirements are taken into account.
• Optimised cost structure: The hybrid approach reduces costs as it includes both standardisation and customisation.
• Scalability and adaptability: Companies can easily adapt the system to changing market conditions or business requirements.

Example: Companies that operate in different business areas can map these two business areas using a hybrid approach. For example, the complexity in one business area can be implemented on a modular basis to provide possible flexibility, while a core template is sufficient for the required flexibility in the other business area.

Suitable for: Companies with a complex international structure that require both centralised control and local flexibility.

Dos – Best Practices for a successful SAP EWM implementation

1.      Early involvement of all relevant stakeholders

Close collaboration between IT and specialist departments ensures a customised template definition. Stakeholder input from the outset is critical for the creation of a template, as it must fit in with the company's strategic and operational objectives.

2.      Prioritise standardisation

Standardising the processes as much as possible reduces the adaptation effort and facilitates scalability. It is important to minimise local requirements. However, legal and regulatory requirements must be taken into account, as they cannot be minimised.

3.      Establishment of a decision-making body

A governance team should be set up early on to manage the template from definition to maintenance, define the processes and ensure that both remain consistent across the organisation.

4.      Consider scalability from the outset

The template must anticipate future growth and expansions. An inflexible design can hinder scaling and make subsequent adjustments unnecessarily expensive and time-consuming.

5.      Careful documentation

It is actually a matter of course and yet it is often forgotten or underestimated: detailed, well-structured documentation is essential to make the template usable in the long term. It not only serves as an archive, but also as a valuable reference for rollouts and optimisations.

6.      Test, test, test

In addition to classic functional tests, the template should be tested with "day in the life" scenarios. Not only standard processes (forward path), but also exceptional cases should be taken into account, as this is often where the greatest sources of error lie

7.      Continuous monitoring, analysis and optimisation

After the rollout, the template is not a static product, but must be continuously monitored and optimised. Process improvements and new functions should be integrated regularly in order to increase acceptance and efficiency.