Decentralized WM Takes the Pain Out of Dealing with Stock in Multiple SAP ERP Systems

  • by Joshua Riff, President, Blue Harbors Consulting
  • March 2, 2010
Learn how to set up Decentralized Warehouse Management (DWM) for one warehouse under multiple SAP ERP systems. DWM is a fully integrated, cost-effective, flexible solution for connecting applications that perform warehouse management activities to applications that perform SAP ERP processes.
Key Concept
Application Link Enabling (ALE) is a middleware tool that connects different applications on different systems, such as two different SAP ERP systems. In addition, ALE permit customizations to accommodate business requirements — without the use of custom code.

Large, complex organizations often have multiple IT departments managing separate SAP ERP environments. In turn, each of these IT departments supports a number of business units. The result is a patchwork of IT departments and systems to support various business units. Sometimes these IT departments are intentionally left as separate entities, such as when management wants the flexibility to easily spin off acquired businesses at a later date.

Although the IT departments and the systems they manage are often not consolidated within an organization, it is common for commingled business units to want to share resources — such as a warehouse — to increase operational efficiencies and improve offerings to their customer bases. As a result, interfaces between standalone IT systems may be needed to allow the IT systems to support the business processes properly and to allow the company to use the shared resources effectively.

Here are some design considerations for setting up the SAP interface for this purpose, which is called Decentralized Warehouse Management (Decentralized WM). I provide specific, necessary settings to ensure that a single warehouse can manage stock owned by two companies running different SAP ERP environments.

Joshua Riff

Josh Riff co-founded Blue Harbors Consulting in 2001 and currently acts as chief executive officer and president. In addition to providing clients with executive consultancy regarding SAP planning, implementation, and services, he leads Blue Harbors' business planning and development initiatives. Prior to founding Blue Harbors, Josh held consultant, team lead, and SAP project management positions. With more than a decade’s worth of SAP consulting experience, he has completed a variety of high-visibility SAP projects for companies such as PerkinElmer, McKesson Pharmaceutical, Barr Pharmaceutical, and Seminis. Josh Riff has a bachelor of arts in English literature from the University of New Hampshire and earned a certificate in materials management and procurement from the University of California, Berkeley.

See more by this author


No comments have been submitted on this article. 

Please log in to post a comment.

To learn more about subscription access to premium content, click here.