Why SAP LGM? Positioning and Scope of Application
With SAP Extended Warehouse Management and SAP Transportation Management, SAP already offers two best-in-class systems for supply chain management and supply chain execution.
Both systems are excellent solutions for their respective purposes; however, implementing them involves significant effort, and it is difficult to establish a business case for their added value, particularly for satellite locations and smaller distribution centers. As a result, the majority of warehousing and shipping departments still rely on Excel and paper to manage their logistics.
Until 2025, this represented a gap in the SAP product portfolio, which will be closed with the introduction of SAP Logistics Management (SAP LGM).
SAP LGM provides integrated warehouse and transportation process management, developed natively in the cloud based on the SAP Business Technology Platform (SAP BTP), which can deliver value quickly at low implementation costs.
Importantly, SAP LGM is not a successor to SAP EWM and SAP TM. Rather, it is a valuable addition to the SAP solution portfolio.
What is SAP Logistics Management?
- SAP LGM offers a standalone solution for managing smaller, local sites and satellite facilities—intuitive to use, quick to deploy, and cost-effective
- A comprehensive logistics solution with an integrated carrier network: SAP LGM encompasses warehouse management, transportation planning and execution, shipment tracking, and collaboration with carriers and supply chain partners
- A scalable, cloud-based innovation platform for the logistics sector—ensuring scalability and high reliability
- An AI-native work environment with a focus on people—supported by AI-based recommendations for process optimization and decision-making
- A valuable complement to SAP Private Cloud ERP for comprehensive logistics coordination
Learn more: SAP EWM SAP EWM Assessment
Solution Overview SAP LGM
Your Benefits with SAP LGM
SAP Logistics Management (SAP LGM) is a modern, cloud-based warehouse management system from SAP. SAP LGM enables you to efficiently manage your inventory in warehouses with lower complexity, as well as to easily control, execute, and track warehouse and shipping processes using AI.
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Rapid Deployment
SAP LGM is designed so that, thanks to preconfigured processes, it can be implemented extremely quickly with minimal configuration effort. Its native cloud-based architecture and simple deployment reduce training, maintenance, and support needs to a minimum.
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Native AI Functionality
Native support for the AI assistant Joule makes it possible to perform tasks within the application using natural language. This helps further reduce support and training costs.
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Integrated and extensible via APIs
SAP LGM can be integrated directly with SAP S/4HANA Cloud Private Edition and SAP Business Network for Logistics. Additional APIs are available for integrating with CEP service providers and for extending the functionality via side-by-side extensions in SAP BTP.
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Rule-based Automation
By automatically determining execution parameters for your processes based on rules, you can further reduce the effort required for control and configuration to ensure the safe operation of your warehouse logistics and transportation processes.
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Mobile Dialogues
With the Warehouse Logistics mobile app, SAP LGM offers full mobile support, allowing you to perform your warehouse tasks on mobile devices.
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Accurate Inventory Management
With SAP LGM, you can manage your inventory with precision down to the storage bin level. You can assign fixed locations to products and post stock transfers and inventory category changes, which are communicated to SAP S/4HANA Cloud Private Edition, ensuring that the inventory levels across your systems always match.
Do you have any questions about SAP LGM?
Is SAP LGM the successor to SAP EWM or SAP TM?
No. SAP LGM is a cloud-based application for warehouse and transportation management and represents an expansion of the product portfolio. It is designed specifically for operators of smaller distribution centers, e-commerce locations, 3PL-operated sites, and branch and satellite locations of larger corporations.
How does the SAP LGM licensing model work?
As with SAP EWM, license billing for SAP LGM is based on a pay-per-use model. This means that the licenses required for SAP LGM are calculated based on the documents generated in the system. This provides you with a transparent licensing model that scales with your business.
What makes SAP LGM special?
SAP Logistics Management is a cloud-native, AI-powered solution designed for mobile devices that provides seamless integration between warehouse and transportation operations. The solution is integrated with the SAP Business Network for Logistics (BN4L) and SAP S/4HANA Cloud Private Edition.
Which ERP systems are supported, and how are they integrated?
SAP LGM supports integration with SAP S/4HANA Cloud Private Edition. The integration is established via the SAP Cloud Connector to the BTP.
How can I print from SAP LGM to my local printers?
The local printers available at your site are connected to SAP Logistics Management via the SAP Print Service. This also allows you to create and manage print queues.
Can I specify my own forms for printing?
Yes. SAP LGM uses the SAP Forms by Adobe service for this purpose.
Can express delivery service providers be integrated with SAP LGM?
Yes. SAP LGM provides a shipment request API for this purpose, which can be implemented by the respective freight carrier solution provider. The system then sends a shipment request to the respective provider, including the information required for shipment registration.
What scenarios does SAP LGM support?
- Goods Receipt
- Outbound Processing Without Shipping (Scenario: “No Shipping—Warehouse Only”), e.g., Incoterms EXW or FCA
- Outbound Processing in the Parcel Process (Scenario: “Parcel”) with Transportation Processing
- Outbound Processing with Less-than-Truckload (LTL) Shipments (Scenario: “LTL”)
- Outbound processing with less-than-truckload shipments and direct delivery (scenario: “Direct LTL”)
Which processes can be automated in SAP LGM?
SAP LGM supports the automation of a number of process steps. Automation is carried out using processing rules. It is up to you to decide which ones you want to use. You can automate the following steps:
- Freight forwarder determination
- Determination of the fulfillment variant (e.g., package, customer pickup)
- Determination of consolidation deadlines
- Determination of normalized units of measure
- Label format determination
- Determination of the print queue
In addition, SAP LGM can perform calculations for integration with SAP Business Network for Logistics, which facilitate the integration process.
Is SAP LGM the right warehouse management system for me?
It depends! If you haven’t been using a warehouse management solution so far—and, for example, are working with Excel and paper—and are looking for a simple, future-proof cloud solution that’s fully integrated into your SAP landscape, SAP Logistics Management is likely a good fit for you! Let’s talk about your project to find out if SAP LGM is the right solution for your logistics operations.
