SAP Logistics Management isn't built as the successor of SAP Extended Warehouse Management or SAP Transportation Management, it is built to complement the SAP Logistics Portfolio. As already highlighted in the introduced of this Unit, in the current Logistics solutions portfolio, there's a white spot in the offering for supporting for simple to medium logistical operations. The white spot is especially for operations which are part of a larger global network of warehouses and won't be implemented on SAP EWM/SAP TM because there's no business case for it.
Target customers for the first release of SAP Logistics Management are SAP S/4HANA private cloud prospects and install base, that (plan to) run smaller or mid-sized operations as part of their distribution network.
In this target market, 62% of the companies runs one or more operations using spreadsheets and 37% of the companies are planning to invest in a SaaS application in the next 12–36 months. (Source: IDC's 2024 SaaS Path Survey)
The logistical operations that form the target market of SAP Logistics Management are often the "overlooked" nodes in the total network and can be characterized by the following typologies:
- Local distributions
- Overflow warehouses
- Shuttle operations
- E-commerce logistics
- Seasonal operations
- In-store operations
- Sample operations
- Stockroom operations
- Outsourced logistics
- Hub operations