SAP EWM Consulting

As demand grows and supply chains become increasingly complex, the need for advanced solutions like SAP Extended Warehouse Management becomes ever more critical.

This week IgniteSAP explores the market for warehousing solutions, SAP EWM in the consulting services sector, and career progression for SAP consultants. It aims to provide insights for SAP consultants seeking to specialize in EWM, aligning their career paths with industry needs and customer requirements.

The Market for Warehousing Solutions

The global market for warehouse management solutions is experiencing significant growth, driven by factors such as the rise of e-commerce, the need for real-time inventory visibility, and the adoption of automation and robotics in warehousing operations.

According to recent industry reports, the warehouse management solutions market is projected to reach approximately USD 9.5 billion by 2032, growing at a compound annual growth rate of 12% from 2024 to 2032. This very strong growth shows the increasing importance of efficient warehouse management for maintaining competitiveness.

Developments Due to Nearshoring

Nearshoring significantly reduces the distance between production facilities and end consumers. With production sites closer to their target markets, companies can respond more quickly to changes in demand and market conditions. This responsiveness is critical in industries with high demand volatility, such as e-commerce and consumer goods.

Increased Demand for Warehousing Services

As companies move their manufacturing operations closer to their consumer bases, they require additional warehouse space to store raw materials, intermediate goods, and finished products.

Nearshoring reduces reliance on far-flung suppliers and mitigates the impact of global supply chain disruptions, such as those caused by geopolitical tensions, natural disasters, or the recent COVID-19 pandemic. This improved resilience is particularly crucial in ensuring continuity of operations and maintaining service levels.

Enhanced Real-Time Inventory Management

Nearshoring also allows better real-time inventory management. With warehouses located closer to production sites and consumer markets, companies can achieve more accurate and timely inventory tracking.

This real-time visibility enables businesses to optimize stock levels, reduce excess inventory, and minimize stockouts. Advanced warehouse management systems like SAP EWM, integrated with IoT devices and AI-powered analytics, have a central role in achieving these capabilities.

Adoption of Automation and Robotics

To offset higher labor costs in nearshoring destinations compared to traditional offshoring locations, companies invest in automated solutions that enhance productivity and reduce operational costs. Technologies such as automated guided vehicles (AGVs), robotic picking systems, and advanced sorting equipment are increasingly being integrated into warehouses to streamline processes and improve efficiency.

Challenges and Opportunities

While nearshoring offers various advantages, there are challenges. Integration with legacy systems remains a significant hurdle, as older technology platforms often lack compatibility with modern systems. High implementation costs also pose a barrier, particularly for small and medium-sized enterprises. Nearshoring also requires substantial initial investments in infrastructure and technology to establish new production and warehousing facilities.

Despite these challenges, the opportunities presented by technological advancements are immense, with corresponding opportunities for SAP consultants.

The integration of AI, IoT, and cloud-based solutions into warehouse management systems is changing the industry, enabling businesses to achieve unprecedented levels of efficiency and accuracy. These technologies provide further advanced capabilities for real-time tracking, predictive analytics, and automated decision-making.

SAP EWM Consulting Services Market

So the demand for SAP EWM consultants has surged as businesses increasingly recognize the need for efficient warehouse management systems, and this trend is reflected in the growing number of job opportunities and rising salaries for SAP EWM specialists.

The role of SAP EWM consultants extends beyond just implementation; it involves comprehensive integration, customization, and optimization of warehouse processes to meet specific business needs.

The consulting services market for SAP EWM includes a wide range of offerings, based on increased demand from new supply chain networks, particularly for implementation and optimization services for companies adjusting their warehousing strategy.

Integration services are equally critical, as they ensure data flow between SAP EWM and other SAP modules such as SAP S/4HANA, SAP TM, and SAP YL, as well as third-party systems. This integration is essential for maintaining an efficient and responsive supply chain.

Optimization and ongoing support services are also vital components of the consulting market. These services involve continuous assessment and improvement of the warehouse management system to adapt to evolving business needs and market conditions.

Consultants provide strategic insights and recommendations to enhance system performance, reduce operational costs, and improve overall efficiency.

Leading consulting firms such as Accenture, Deloitte, and Capgemini lead the SAP EWM consulting market. These firms offer extensive expertise and resources to manage large-scale EWM projects, from initial assessment and planning to post-implementation support.

Their global reach and experience across various industries make them preferred partners for businesses seeking to implement SAP EWM, and so they are top employers of SAP EWM consultants.

Career Progression for SAP EWM Consultants

For SAP consultants looking to specialize in EWM, a clear career development pathway is essential. This journey begins with acquiring the necessary training and certifications, followed by gaining practical experience and continuously enhancing skills to move up the career ladder.

Training and Certification

Formal training programs offered by SAP are the first step towards specialization in SAP EWM. These programs cover the fundamental aspects of SAP EWM, including configuration, customization, and integration.

Certifications such as the “SAP Certified Application Associate – SAP EWM 9.5" validate foundational knowledge, while the "SAP Certified Application Professional – SAP EWM" certification is geared towards more experienced consultants looking to demonstrate their advanced skills.

S/4HANA skills and familiarity with other supporting SAP solutions are also clearly advantageous.

Consultants need a comprehensive understanding of the integration points between SAP EWM and other SAP modules, including knowledge of data flow and specific touchpoints.

Familiarity with SAP’s integration framework and tools, such as SAP Process Integration (PI) and SAP Cloud Platform Integration (CPI), is crucial. These tools enable integration of SAP EWM with SAP S/4HANA, SAP TM, and SAP YL.

Familiarity with configuration settings for integration, including setting up communication channels, defining scenarios, and configuring middleware components is also very important.

Integration often requires customizing functionalities to meet business needs, such as developing custom interfaces using SAP’s enhancement framework. Consultants must also be adept at data mapping and transformation to ensure compatibility across systems.

Beyond initial training, continuous learning is extremely important. SAP Learning Hub and openSAP offer courses on the latest SAP technologies, such as S/4HANA, IoT, and machine learning.

Acquisition of Experience

Hands-on experience is invaluable for SAP EWM consultants. Participating in diverse SAP EWM projects helps consultants develop a deep understanding of various implementation scenarios and challenges based on situations in the real world.

Working on cross-module projects, such as integrating SAP EWM with SAP TM and SAP YL, further broadens expertise and prepares consultants for more complex roles.

Mentorship and networking play significant roles in career progression. Experienced mentors provide guidance, share insights, and help navigate the complexities of SAP EWM implementations.

Career Advancement Strategies

Developing soft skills such as communication, leadership, and problem-solving is essential for advancing to senior roles. Effective communication and leadership skills enable consultants to manage teams and engage with clients effectively, while strong problem-solving abilities are crucial for addressing intricate warehouse management challenges.

Seeking diverse roles within the consulting domain, such as strategic consulting, project management, and industry specialization, can accelerate career growth. Strategic consultants advise businesses on optimizing their warehouse operations, project managers lead implementation projects, and industry specialists focus on specific sectors like retail, manufacturing, or logistics.

Aligning career progression with industry needs requires that consultants stay informed about market trends and SAP’s strategic development. This ensures that consultants can anticipate and meet the evolving demands of businesses, positioning themselves as valuable assets in the SAP EWM consulting market.

Future Growth of SAP EWM Services Market

SAP Extended Warehouse Management is a key component in modern supply chain management, offering comprehensive capabilities for optimizing warehouse operations.

The market for SAP EWM services is certain to experience significant growth, driven by the increasing adoption of advanced warehouse management solutions and the continuous evolution of supply chain dynamics. The rise of e-commerce, in particular, has intensified the need for efficient warehouse management systems, driving the adoption of SAP EWM.

The strategic advantages of efficient warehouse management, such as improved order accuracy, reduced operational costs, and enhanced customer satisfaction, are key factors driving this adoption.

For SAP consultants, specializing in EWM presents a lucrative career opportunity, with a robust job market and competitive salaries.

By following structured training programs, gaining practical experience, and continuously enhancing their skills, SAP EWM consultants can advance their careers and meet the evolving needs of the industry.

As businesses continue to adopt advanced warehouse management solutions, the demand for skilled SAP EWM consultants is set to grow, making this an exciting and promising field for aspiring SAP professionals.

If you are an SAP professional looking for a new role in the SAP ecosystem our team of dedicated recruitment consultants can match you with your ideal employer and negotiate a competitive compensation package for your extremely valuable skills, so join our exclusive community at IgniteSAP .