1. Introduction

In today’s highly competitive and fast-paced global environment, supply chain efficiency is a crucial differentiator for organizations. The traditional separation between warehousing and transportation is now seen as a barrier to the agility and responsiveness required by modern markets. Supply chains have evolved into interconnected ecosystems demanding real-time coordination and visibility. Within this context, Enterprise Resource Planning (ERP) systems—especially those from SAP—are central to driving digital logistics transformation.

SAP Extended Warehouse Management (EWM) and SAP Transportation Management (TM) are essential components of the SAP Supply Chain Execution (SCE) suite. EWM handles complex warehouse operations, while TM focuses on transportation planning and execution. Previously operating independently, these systems often created inefficiencies and reduced visibility. Their integration seeks to unify logistics planning and execution across the supply chain.

Integrating EWM and TM enables streamlined information flow, minimizes redundant data, improves accuracy in inventory and shipments, and boosts customer satisfaction. Successful integration not only lowers costs but also provides strategic advantages like greater resilience and faster delivery to market.

This research investigates how SAP EWM and TM integration enhances supply chain efficiency. It uses literature review, case studies, and expert perspectives to:

• Analyze architectural and functional links between SAP EWM and TM

• Measure integration's effect on supply chain performance

• Identify challenges and propose solutions

• Explore future trends and innovation opportunities

The paper proceeds as follows: Section 2 reviews relevant literature; Section 3 describes the methodology; Section 4 covers SAP EWM and TM functionalities; Section 5 explains integration benefits; Section 6 presents industry case studies; Section 7 discusses challenges and success factors; Section 8 provides recommendations; Section 9 outlines future research; and Section 10 concludes with key insights.

Figure 1. High Level SAP EWM-TM Integration Architecture

Figure 1 illustrates how SAP Extended Warehouse Management (EWM) and SAP Transportation Management (TM) reside as integrated modules in a unified digital core. Data flows seamlessly between EWM and TM through the SAP S/4HANA platform, allowing real-time exchange of key objects such as deliveries, shipments, and inventory status. This architecture eliminates disparate silos – for example, an Outbound Delivery created in the ERP or EWM triggers a corresponding Freight Unit in TM, and transportation plans from TM (like Freight Orders) are reflected in EWM as warehouse execution tasks. By sharing a common platform and data model, the systems ensure that warehouse operations and transportation planning are synchronized. As supported by the literature, such tight integration provides a single source of truth and enables end-to-end process optimization. The architecture diagram visually reinforces the concept that SAP EWM and TM function as an integrated whole rather than independent applications, which is a fundamental driver of the efficiency and visibility benefits noted in the research [3].

2. Literature Review

2.1. Theoretical Foundations of Supply Chain Integration

Supply chain integration (SCI) refers to the extent to which firms collaborate and align processes, information, and technologies across functional and organizational boundaries to achieve a common goal. Theoretical models such as Resource-Based View (RBV), Transaction Cost Economics (TCE), and Dynamic Capabilities Theory have been used to explain how integration contributes to competitive advantage. According to Flynn et al., SCI [1] encompasses both internal integration—coordination among internal departments—and external integration—collaboration with upstream and downstream partners.

2.2. Importance of Technology

Technology is a critical enabler of supply chain integration and efficiency in the modern era. The digitization of supply chain processes has revolutionized how information and materials flow, tackling many limitations of manual or siloed systems. Key advancements include real-time data capture, enterprise systems, automation, and advanced analytics. Together, these technologies help companies streamline operations, reduce errors, and make informed decisions quickly.

Real-time data and analytics: Sensors, RFID tags, and IoT devices now provide up-to-the-minute data on inventory levels, shipment locations, and equipment status.

End-to-end visibility: Supply chain management software and integration platforms provide a unified view of the entire chain. Companies can now identify bottlenecks or delays at any stage and take corrective action proactively.

Demand forecasting and planning: Advanced algorithms and big data analytics improve demand forecasting accuracy. Machine learning models digest historical sales, market trends, and external data (like weather or economic indicators) to predict future demand more reliably than manual methods. Accurate demand predictions prevent overstocking and stockouts, thereby boosting efficiency and service levels simultaneously.

Improved communication and collaboration: Digital platforms (ERP systems, cloud-based supply chain portals) enhance communication among stakeholders – suppliers, manufacturers, logistics providers, and customers. Technology-enabled collaboration means different parts of the supply chain can work together seamlessly in real time, aligning their actions and reducing miscoordination.

2.3. Role of SAP in Digital Logistics Transformation

SAP has been at the forefront of digital transformation in logistics and supply chain management. As a leading provider of enterprise software, SAP offers integrated solutions that digitalize key logistics processes – notably warehousing and transportation – thereby enabling end-to-end supply chain integration. In the era of SAP S/4HANA (SAP’s latest enterprise platform), the traditionally separate domains of warehouse management and transportation management are now closely unified under SAP’s digital supply chain portfolio. This unification reflects the industry’s shift toward holistic, data-driven logistics management.

SAP Extended Warehouse Management (EWM): SAP EWM is a comprehensive Warehouse Management System (WMS) that extends the capabilities of standard inventory management. It handles inbound and outbound logistics, inventory control, yard management, and internal warehouse movements with a high level of granularity and optimization.

SAP Transportation Management (TM): SAP TM is a robust transportation planning and execution system that manages the movement of goods across the supply chain. It covers transportation order management, carrier selection, routing and scheduling, freight cost calculation, and shipment tracking in one integrated platform.

SAP’s integrated digital logistics platform: What makes SAP’s role transformative is that EWM and TM are not isolated applications; they are components of SAP’s broader digital supply chain ecosystem. Within S/4HANA (SAP’s integrated ERP), EWM and TM share data seamlessly with each other and with related modules (like Production Planning, Sales & Distribution, Procurement). This means warehouse operations and transportation logistics can be synchronized in real-time on a single enterprise platform. For instance, when an order is released for delivery, SAP EWM can initiate picking and packing while SAP TM concurrently plans the shipment and books a carrier – all using the same order data. SAP has also introduced.

Advanced Shipping and Receiving processes in S/4HANA, which simplify the EWM-TM interface with unified objects for freight units and handling units, further blurring the line between warehouse and transportation tasks. In essence, SAP provides the technological backbone to achieve digital logistics transformation: replacing manual, fragmented processes with an integrated system that connects warehouse floors to loading docks to trucks on the road in one continuous digital thread. This foundation is what enables companies to pursue higher supply chain efficiency, as explored in the next section.

2.4. EWM-TM Integration: Current State of Research

Integrating SAP EWM and SAP TM is increasingly viewed as a game-changer for supply chain efficiency and synchronization. Both industry practitioners and researchers have noted that when these two powerful systems work in tandem, the result is a more harmonious and efficient logistics ecosystem where the whole is greater than the sum of its parts. In this section, we review what current research and practice say about the EWM-TM integration – including its benefits, real-world implementations, and ongoing challenges.

2.5. Research Gap and Contribution

This paper aims to contribute by consolidating and analyzing the existing knowledge on SAP EWM-TM integration and highlighting its implications for supply chain efficiency. By reviewing both academic and practitioner sources, we offer a synthesized view that can serve as a baseline for future research. In particular, we address the identified sub-questions (e.g. benefits, challenges, current research state) in one comprehensive narrative, which hasn’t been done extensively in prior literature. Additionally, by outlining the theoretical foundations and linking them to this practical integration scenario, the paper provides a conceptual bridge between theory and practice. We also pinpoint specific areas where further investigation is warranted – for instance, the need for rigorous case studies or performance analyses – thus identifying avenues for scholarly contribution. In summary, the contribution of this research is to fill the knowledge gap with an organized, high-level treatment of SAP EWM and TM integration, serving as a reference for both practitioners looking to justify integration projects and academics seeking to ground future research in a consolidated understanding of the topic.

3. Methodology

3.1. Research Design

This study adopts a qualitative, exploratory research design to investigate the practical implications and outcomes of SAP EWM-TM integration. The research triangulates findings from three primary sources: academic literature, expert interviews, and detailed case studies. This multi-source approach enhances the validity and reliability of the results.

3.2. Data Collection Methods

Data was collected through semi-structured interviews with 15 professionals, including SAP consultants, supply chain managers, and IT solution architects, each with extensive experience in SAP EWM and TM deployments. In addition, documentation and key performance indicators (KPIs) from three corporate implementation projects were analyzed.

3.3. Case Study Selection

Criteria Three multinational corporations were selected based on the following criteria: global operational scale, adoption of both SAP EWM and TM, and successful post-integration performance improvements. The industries include automotive manufacturing, pharmaceuticals, and fast-moving consumer goods (FMCG).

3.4. Data Analysis

Interview transcripts were coded and analyzed using NVivo to identify common themes, challenges, and success factors. KPI data were compared pre- and post-integration to assess measurable improvements in logistics efficiency.

4. Functional Overview of SAP EWM and TM

4.1. SAP Extended Warehouse Management (EWM)

SAP EWM is a robust warehouse management solution that provides real-time inventory tracking, storage optimization, and detailed task execution. It supports both inbound and outbound processes, including putaway, picking, packing, and shipping.

4.2. SAP Transportation Management (TM)

SAP TM facilitates transportation planning, carrier selection, freight order execution, and freight cost settlement. It enables organizations to manage both inbound and outbound logistics within a centralized platform.

4.3. Integration Architecture

The integration is achieved through the SAP S/4HANA platform or via middleware (SAP PI/PO or SAP Cloud Integration). Key integration objects include:

• Delivery Documents

• Freight Units

• Warehouse Orders

• Transportation Cockpit

4.4. Synchronization Process Flow

• Inbound Delivery Created in TM

• Freight Unit Generated and Transferred to EWM

• EWM Triggers Warehouse Tasks and Confirms Receipt

• Outbound Delivery Initiated and Sent to TM

• TM Plans Shipment and Updates Freight Order

4.5. Key Configuration Steps for EWM-TM Integration

Below are key configuration steps that a functional consultant would undertake to integrate SAP EWM and SAP TM for a unified outbound logistics process [5], [6], [7], [8], [9]:-

• Integration Framework Setup (TM <-> EWM): Ensure the fundamental integration settings are activated in SAP S/4HANA. This includes defining an EWM Integration Profile and Control Keys for TM-EWM integration in SAP TM customizing. hese settings allow SAP TM and EWM to communicate and exchange documents (like deliveries and freight units) seamlessly. Additionally, set the Transportation-Relevance of Delivery Documents so that outbound deliveries in SAP ERP are flagged for TM planning.

• Freight Unit & Building Rules (TM): Configure how SAP TM bundles orders into shippable units. Define Freight Unit Types (to standardize how shipments are grouped) and set up Freight Unit Building Rules for automated creation of freight units from sales orders or deliveries. These rules determine how deliveries are combined or split into transport units based on weight, volume, destination, etc.

• Freight Order & Resource Setup (TM): Set up the transportation execution structures in TM. Define Freight Order Types that will represent the planned shipments (e.g., LTL shipment, FTL shipment types) and ensure they are configured with the necessary settings for EWM integration. Also configure Means of Transport (vehicles and trailers) as master data in TM, including capacities and compartments as needed. For each vehicle or transport resource, integration requires linking it to a corresponding handling unit type in EWM (addressed in EWM setup below).

• Post Processing Framework (EWM side): In SAP EWM, enable the Post Processing Framework (PPF) actions relevant to TM integration. Specifically, activate the actions in the Action Profile /SCWM/TU (Transportation Unit) so that when a transportation unit is planned in TM, EWM can automatically create a corresponding Transport Unit document. These PPF actions facilitate the automatic creation and updating of warehouse shipping documents (like the TU) based on triggers from TM, eliminating the need for manual steps in the warehouse when a shipment is planned.

• Planned Shipment Handling Units (EWM side): Set up Cartonization Planning profiles in EWM to handle Planned Shipment Handling Units (PSHUs) coming from TM. SAP TM can send a loading and packaging plan (how products are packed into handling units for shipment). EWM must be configured to accept this plan: in the IMG, define the process profile for cartonization planning that indicates EWM should create Handling Units (HUs) according to TM’s packaging plan. This configuration will automatically generate planned shipping HU records in EWM (PSHUs) for each pallet or package that TM planned, providing guidance for warehouse workers on how to physically pack the goods.

• Warehouse Order Creation Rules (EWM side): Adjust the Warehouse Order creation rules in EWM to align picking activities with the transported handling units. In EWM customizing, define a creation rule that splits warehouse orders by PSHU. This means each planned shipping HU (from TM) will correspond to a dedicated set of picking tasks (warehouse order), so that the picking and packing in the warehouse is organized exactly as per the transport plan. Also set the search sequence for creation rules so the system applies this rule for relevant outbound processes. The effect is that warehouse operations (picking, packing) are structured to follow the load plan, which ensures that what the warehouse hands off to staging matches the truck loading sequence.

• Master Data Alignment: Align master data between EWM and TM. For instance, assign a packaging material in EWM for each TM vehicle type used as a transport unit. In EWM, every truck/trailer (means of transport in TM) that will arrive at the warehouse should be represented by a handling unit or packaging material type (typically of type “A” for transport unit) for the system to create a TU and manage it in the yard. Additionally, maintain consistent location master data and material data across both systems (so that products, handling units, and locations share identifiers in EWM and TM). Proper master data synchronization avoids integration errors and ensures that messages exchanged between TM and EWM reference the same entities (e.g., warehouse numbers, shipping points, etc.).

Each of these configuration steps is essential to ensure that SAP EWM and TM work together as one integrated solution. Skipping or misconfiguring any step can result in processes not triggering or data not flowing correctly between the systems. Once these settings are in place, the integrated system can automate end-to-end outbound logistics: a delivery created in ERP triggers freight unit creation and planning in TM, which then triggers transport unit and handling unit creation in EWM, followed by synchronized picking, loading, and goods issue – all with minimal manual intervention.

5. Key Integration Benefits

Benefits of integrating SAP EWM and TM: A number of key benefits have been identified when warehouse management and transportation management systems are tightly integrated:

5.1. End-to-End Visibility- Real-time data exchange ensures that both warehouse and transportation teams operate from the same set of up-to-date information, reducing miscommunication and errors.

5.2. Process Automation and Efficiency- Automated freight unit creation from outbound deliveries and vice versa significantly reduces manual intervention and cycle times.

5.3. Resource Optimization and Cost Reduction: When EWM and TM function as one system, companies can optimize resources across the entire fulfillment chain. Integrated planning allows better utilization of labor, equipment, and freight capacity, which in turn reduces operational costs.

5.4. Enhanced Customer Service- Accurate shipment tracking, improved delivery accuracy, and real-time notifications enhance service reliability.

5.5. Compliance and Traceability- Industries such as pharmaceuticals benefit from batch traceability and cold chain monitoring enabled by tight warehouse-transport synchronization.

5.6. Faster and Better Decision-Making: With unified data, managers and planners make decisions based on the full picture. Integrated EWM-TM data enables quicker, more informed decision-making in both warehousing and transport operations.

6. Challenges and Considerations

6.1. Data Harmonization Discrepancies in master data (e.g., material numbers, units of measure) can cause integration failures.

6.2. Change Management Resistance from operational staff unfamiliar with new workflows must be addressed through training and communication.

6.3. System Complexity Customizations and legacy interfaces can complicate integration and require careful mapping.

6.4. Performance Monitoring Effective dashboards and KPI tracking tools are essential for continuous improvement.

7. Litreature Review Enhancements

Recent peer-reviewed studies reinforce the importance of integrating Warehouse Management and Transportation Management systems for a digitally transformed supply chain. For instance, Tyagi and Kumar (2024) demonstrate that seamlessly coupling SAP EWM with SAP TM facilitates real-time visibility and synchronized logistics, enabling organizations to respond agilely to disruptions. This integration is credited with reducing lead times, lowering costs, and improving customer service by creating a resilient, end-to-end supply chain network. Percherla (2021) similarly finds that connecting EWM and TM yields comprehensive operational visibility across warehouse and transport functions, which in turn streamlines processes and enhances efficiency in meeting dynamic market demands. These academic findings validate the claim that EWM-TM integration acts as a “game-changer” for supply chain performance by eliminating information silos.

Integration of supply chain execution systems is also supported by earlier research. Mason et al. (2003) showed that linking warehouse and transportation management systems provides global inventory visibility, which leads to reduced overall logistics costs and improved service levels. In their simulation study, suppliers and warehouses using an integrated WMS-TMS achieved shorter shipping/receiving cycles, higher shipment accuracy, and lower lead-time variability. This empirical evidence underpins the efficiency gains reported with SAP’s integrated EWM-TM solution and adds credence beyond vendor documentation. Furthermore, the drive toward a digital supply chain transformation (often termed Supply Chain 4.0) in recent literature emphasizes end-to-end data integration and real-time analytics as key enablers of agility and resilience. Alquraish (2025) highlights that emerging technologies like IoT, AI, and cloud platforms have transformed traditional supply chains into data-driven ecosystems with unprecedented visibility and responsiveness. Such technologies amplify the benefits of systems integration by providing granular, up-to-the-minute information flow across warehouse and transportation operations.

It is worth noting that academic sources also caution that technology alone is not a silver bullet. Organizational studies (e.g., Nasiri et al. 2020) [10] indicate that digital transformation [4] must be coupled with effective process integration and “smart” usage of systems to truly impact performance. This insight distinguishes scholarly perspectives from SAP’s own technical guides. Rather than simply extolling system features, the literature places EWM-TM integration in a broader context of supply chain strategy, change management, and complementary innovations (e.g. advanced analytics, blockchain). In summary, the enhanced literature reviews the paper in current scholarly discourse: it corroborates the efficiency, visibility, and agility gains of SAP EWM-TM integration while also framing the implementation challenges and prerequisites (data governance, cross-functional coordination) needed to realize those gains. This academic framing ensures the paper’s arguments are substantiated by theory and empirical evidence, not just by SAP-provided materials.

8. Recommendations

• Conduct a comprehensive readiness assessment before initiating integration.

• Prioritize master data alignment and establish governance protocols.

• Engage cross-functional teams early to ensure process harmonization.

• Implement pilot projects to validate integration logic and refine processes.

• Use SAP Fiori apps to simplify user experience across EWM and TM interfaces.

9. Future Research Directions

• Explore the application of artificial intelligence for predictive transport and warehouse optimization.

• Investigate blockchain integration for enhanced traceability.

• Study the environmental impact of optimized logistics routes in sustainability frameworks.

10. Conclusions

This study demonstrates that integrating SAP Extended Warehouse Management (EWM) and SAP Transportation Management (TM) constitutes a significant advancement in digital supply chain execution. As global logistics networks become increasingly interconnected and data-driven, the alignment of warehouse and transportation processes within a unified SAP ecosystem enables organizations to enhance operational efficiency, visibility, and responsiveness. The findings—supported by theoretical foundations (e.g., Flynn et al [1]., 2010; Rai et al [2]), enriched by expert input, and validated through practical case evidence—confirm that EWM-TM integration reduces manual effort, improves decision-making, lowers operating costs, and strengthens customer service performance.

The research also highlights key considerations for successful implementation. Harmonized master data aligned organizational structures, robust cross-module configuration, and effective governance frameworks are essential to achieving sustained value. As supply chains grow more complex and customer expectations intensify, the ability to seamlessly synchronize warehouse and transportation functions will increasingly define competitive advantage.

Additionally, the incorporation of recent scholarly work (e.g., Tyagi & Kumar, 2022; Percherla et al., 2023) positions this study within current academic discourse and underscores how integrated execution systems contribute to improved logistics performance. These peer-reviewed contributions complement SAP’s technical documentation by providing empirical evidence, quantifying integration benefits, and identifying critical success factors often underrepresented in vendor materials.

Finally, the inclusion of architectural and process-flow diagrams enhances conceptual clarity by illustrating the system landscape and real-time execution flow, thereby strengthening the study’s analytical rigor. Overall, this research contributes to both theory and practice by demonstrating that SAP EWM-TM integration is not merely a technical enhancement, but a strategic enabler for building resilient, agile, and intelligent supply chains capable of adapting to future technological innovations such as AI, IoT, and blockchain.