Insights
FMCG Distribution Center Optimization with SAP EWM
FMCG · 2/10/2025
FEFO, shelf-life management and promotion handling in a high-volume FMCG distribution center using SAP EWM.
Measurable outcomes
Reported or target KPIs from this engagement — not a guarantee of future results.
Inventory accuracy
99.5%
Picking productivity
+22%
Out-of-date stock
-35%
SAP scope
- SAP EWM inbound through shipping with FEFO and batch rules
- Integration with MM, SD, and QM for blocked and quality stock
- RF receiving, picking, packing aligned to campaign peaks
Process scope
- Inbound, slotting, replenishment, and outbound under promo load
- Shelf-life and inspection handling before release to pick
- Store replenishment patterns and carrier cut-off alignment
Project Overview
A high-volume FMCG manufacturer was struggling with shelf-life, promotions and traceability in its distribution center. Paper-based processes and multiple systems made it difficult to maintain FEFO rules and react to demand spikes.
Approach
- Assessed current flows from inbound to store delivery, with a focus on FEFO and promotion items.
- Designed SAP EWM processes covering inbound, binning, replenishment, picking and shipping with FEFO rules.
- Implemented RF flows for receiving, picking and packing, aligned with operator needs.
- Integrated EWM with MM, SD and QM, including quality inspection and blocked/quality stock movements.
Results
- Inventory accuracy increased to 99.5% with full batch and shelf-life traceability.
- Picking productivity improved by 22% through better slotting and wave strategies.
- Out-of-date stock was reduced by 35% thanks to FEFO enforcement and clearer visibility.
Discuss a similar programme
Share your warehouse, transport, or trade-compliance constraints — we will align a short assessment or workshop to your priorities.