--- title: SAP S/4HANA Transportation and Warehouse Management Overview description: Become familiar with the transportation management and warehouse management systems in SAP S/4HANA. image: https://blog.sap-press.com/hubfs/Discover%20SAP%20S4HANAs%20Transportation%20Management%20System%20and%20Warehouse%20Management%20System.png --- [![rheinwerk-sappress-logo-header-1](https://blog.sap-press.com/hubfs/rheinwerk-sappress-logo-header-1.svg)](https://blog.sap-press.com/) [Blog](https://blog.sap-press.com) - Books - Get an overview of our books and courses on every relevant SAP topic. - [Programming](https://sap-press.com/programming/) - [Administration](https://sap-press.com/administration/) - [BI](https://sap-press.com/business-intelligence/) - [Finance](https://sap-press.com/finance-controlling/) - [Logistics](https://sap-press.com/logistics/) - [HR](https://sap-press.com/human-resources/) - [CRM & Sales](https://sap-press.com/marketing-sales/) - [HANA](https://sap-press.com/hana/) - [Introductions](https://sap-press.com/introductions/) - [E-Bites](https://sap-press.com/e-bites/) - [Certification Guides](https://www.sap-press.com/certification-guides/) - [Rheinwerk Courses](https://www.sap-press.com/online-courses/) - Book Subscription - Get unlimited access to all SAP PRESS books! - [SAP PRESS Subscription](https://sap-press.com/subscriptions/) [Logistics](https://blog.sap-press.com/tag/logistics) # SAP S/4HANA Transportation and Warehouse Management Overview ![SAP PRESS](https://blog.sap-press.com/hubfs/Twitter_profile_pic.svg) by [SAP PRESS](https://blog.sap-press.com/author/sap-press) The two key components of logistics execution in SAP S/4HANA are transportation management and warehouse management. Let’s look at each.   ## Transportation Management A *transportation management system* (TMS) is software that manages the distribution of goods, both in and out of a company’s—or its customer’s—facilities. It supports the planning, execution, and monitoring of goods distribution, collaboration with carriers, and freight cost management to achieve lower transportation cost, higher utilization of assets, and delivery to the customer at the right time. The TMS deals with product data (e.g., weight and volume), locations (e.g., source and destination), business partners (customer, vendor, and carrier), and freight cost parameters. TMS is a key element of supply chain applications.   [SAP Transportation Management](https://learning.sap-press.com/sap-transportation-management) (TM) is the default transportation management solution in SAP S/4HANA, which can be deployed in two ways: - Embedded TM on [SAP S/4HANA](https://learning.sap-press.com/sap-s4hana), meaning that TM is included as a component within the SAP S/4HANA instance - Standalone (or “side-by-side”) TM on SAP S/4HANA, meaning that TM is deployed as a separate application Embedded TM has some simplifications compared to standalone TM. For example, embedded TM can access the logistics data directly within SAP S/4HANA and doesn’t require any transfer (or duplication) of data from [SAP ERP](https://learning.sap-press.com/what-is-sap/#sap-erp) (or SAP S/4HANA) to TM, which would otherwise be required for standalone TM.   However, some organizations might choose to implement standalone TM on SAP S/4HANA, perhaps for the following reasons: - An organization needs to maintain a dedicated TMS for multiple enterprise resource planning (ERP) instances (SAP ERP, SAP S/4HANA, or from a third party). - An organization has strategic reasons to implement a TMS before it migrates other ERP operations from SAP ERP to SAP S/4HANA. - An existing standalone TM system already connects with multiple SAP ERP instances, and not all SAP ERP instances have migrated from SAP ERP to SAP S/4HANA. - A different release cycle/upgrade is required for TM compared to SAP ERP or SAP S/4HANA. (Embedded TM must be upgraded at the same time as SAP S/4HANA because it’s a component within the SAP S/4HANA instance.) Note that the same TM system (A) within SAP S/4HANA can be used as the embedded TM on SAP S/4HANA instance (B) *and* also as a standalone TM system for SAP ERP instances (C) and SAP S/4HANA instances (D), as shown in this figure.   ![Deployment Options for TM on SAP S/4HANA](https://blog.sap-press.com/hs-fs/hubfs/2130_01_001.png?width=985&name=2130_01_001.png) **Note**: Refer to SAP Note 2714892 for more details on deployment options and simplifications in embedded TM compared to standalone TM.   ## Warehouse Management A *warehouse management system* (WMS) is software that manages movement (incoming, internal, and outgoing) and counting of stocks (or inventory) in the warehouse. A WMS also supports the planning and monitoring of resources (e.g., workers, forklifts, etc.) and helps to ensure an optimum level of inventory, increase accuracy and transparency of stock, and improve warehouse efficiency (in terms of more utilization of space, more picks, etc.). It deals with warehouse structure data (storage bins, etc.), products (weight, volume, and batches), and business partners (customers and vendors), and it informs the location of the product at the storage bin level. A WMS is a key element of supply chain applications.   SAP S/4HANA provides multiple deployment options for warehouse management to meet the varied operations, size, and complexity of the specific warehouse. [SAP Extended Warehouse Management](https://learning.sap-press.com/sap-ewm) (EWM) is the default warehouse management solution in SAP S/4HANA. It can be deployed in two ways: - Embedded EWM on SAP S/4HANA, meaning that SAP EWM is included as a component within the SAP S/4HANA instance - Decentralized EWM on SAP S/4HANA, meaning that SAP EWM is deployed as a separate application **Note**: Two other warehousing options, inventory management (IM) and stock room management (STRM), are typically considered less advanced compared to SAP EWM. IM is typically used for small storage spaces when no true warehousing management must happen. (IM does not provide visibility into products at the level of the storage bin.) STRM is similar to the traditional Warehouse Management (LE-WM) functionality in SAP ERP, and it’s used when warehouse operations are less complex.   Note that a plant can have different kinds of warehouses corresponding to the respective storage locations, as shown in the next figure. In this example, storage locations 1, 2, and 3 use warehousing functionality within SAP S/4HANA, but storage location 4 uses decentralized EWM, outside the core SAP S/4HANA system.   ![Deployment Options of Warehouse Management with SAP S/4HANA](https://blog.sap-press.com/hs-fs/hubfs/2130_01_002.png?width=1517&name=2130_01_002.png)   Note that decentralized EWM on SAP S/4HANA can be used only in decentralized mode. In other words, in contrast to standalone TM, shown earlier, decentralized EWM can’t be used as both embedded and decentralized simultaneously, as shown in the final figure.   The top part of the figure shows that embedded EWM can only be used with SAP S/4HANA instance (A). However, as shown in the bottom part of the next figure, decentralized EWM (D) can be used for SAP ERP instances (B) and SAP S/4HANA instances (C) but not for SAP S/4HANA instance (E).   ![Use of Embedded EWM and Decentralized EWM on SAP S/4HANA](https://blog.sap-press.com/hs-fs/hubfs/2130_01_003.png?width=985&name=2130_01_003.png) **Note:** Refer to SAP Note 1606493 for more details on SAP EWM deployment options.   [Learn more about the logistics capabilities in SAP S/4HANA here](https://learning.sap-press.com/sap-s4hana-logistics).   ## Learn SAP TM in Our Upcoming Rheinwerk Course! Trace your TM processes from end to end in SAP S/4HANA: from planning transportation requirements through carrier assignment to freight cost settlement and accounting reconciliation. Learn to set up system objects, freight agreements, calculation schemes, settlement profiles, variance analysis, tendering profiles, and carrier selection. Your TM deep-dive is here! Click on the banner below to learn more and order your ticket.   [![blog_courses_062_tm](https://blog.sap-press.com/hs-fs/hubfs/blog_courses_062_tm.png?width=600&height=200&name=blog_courses_062_tm.png)](https://www.sap-press.com/online-courses/tm-with-sap-s4hana-transportation-planning-execution-and-billing/)   *Editor’s note*: This post has been adapted from a section of the e-book [*Integrated TM and EWM in SAP S/4HANA*](https://www.sap-press.com/integrated-tm-and-ewm-in-sap-s4hana_5315/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2130_section1&utm_content=2130)by [Mrinal K. Roy](https://www.linkedin.com/in/mrinalkroy/). Mrinal is an SAP S/4HANA and supply chain architect with more than 20 years of SAP experience. He has worked in the design, development, and implementation of SAP ERP, SAP S/4HANA, SAP APO, SAP EWM, SAP TM, SAP Yard Logistics, SAP S/4HANA for advanced ATP, and SAP Business Network projects in several countries. Mrinal holds ten SAP certifications and has strong business process knowledge and hands-on configuration skills.   This post was originally published 1/2022. ## Recommendation [![Integrated TM and EWM in SAP S/4HANA](https://blog.sap-press.com/hs-fs/hubfs/2130.jpg?width=170&name=2130.jpg)](https://www.sap-press.com/integrated-tm-and-ewm-in-sap-s4hana_5315/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2130_section1&utm_content=2130) **Integrated TM and EWM in SAP S/4HANA** Tap into next-level logistics execution in SAP S/4HANA! Discover how integrated TM and EWM improve inbound and outbound deliveries, transit warehousing, warehouse billing, and shipping and receiving. Review how your data moves within embedded EWM and TM, and explore the corresponding configuration settings and master data for your SAP S/4HANA system. Prepare yourself—and your system—for integrated logistics! [Learn More](https://www.sap-press.com/integrated-tm-and-ewm-in-sap-s4hana_5315/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2130_section1&utm_content=2130) ![SAP PRESS](https://blog.sap-press.com/hubfs/Twitter_profile_pic.svg) **by [SAP PRESS](https://blog.sap-press.com/author/sap-press)** SAP PRESS is the world's leading SAP publisher, with books on ABAP, SAP S/4HANA, SAP IBP, intelligent technologies, SAP Business Technology Platform, and more! [Logistics](https://blog.sap-press.com/tag/logistics) [![Share on facebook](https://7528309.fs1.hubspotusercontent-na1.net/hub/7528309/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/facebook-color.png?width=24&name=facebook-color.png)](https://www.facebook.com/share.php?u=https%3A%2F%2Fblog.sap-press.com%2Fdiscover-sap-s%2F4hanas-transportation-management-system-and-warehouse-management-system%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on linkedin](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/linkedin-color.png?width=24&name=linkedin-color.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.sap-press.com%2Fdiscover-sap-s%2F4hanas-transportation-management-system-and-warehouse-management-system%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://7528304.fs1.hubspotusercontent-na1.net/hub/7528304/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/twitter-color.png?width=24&name=twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.sap-press.com%2Fdiscover-sap-s%2F4hanas-transportation-management-system-and-warehouse-management-system%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.sap-press.com%2Fdiscover-sap-s%2F4hanas-transportation-management-system-and-warehouse-management-system%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) [![Share on email](https://7528311.fs1.hubspotusercontent-na1.net/hub/7528311/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/email-color.png?width=24&name=email-color.png)](mailto:?subject=Check+out+https%3A%2F%2Fblog.sap-press.com%2Fdiscover-sap-s%2F4hanas-transportation-management-system-and-warehouse-management-system%3Futm_medium%3Dsocial%26utm_source%3Demail&body=Check+out+https%3A%2F%2Fblog.sap-press.com%2Fdiscover-sap-s%2F4hanas-transportation-management-system-and-warehouse-management-system%3Futm_medium%3Dsocial%26utm_source%3Demail) ### Comments ### Latest Blog Posts [![What Are Handling Units in SAP S/4HANA?](https://blog.sap-press.com/hs-fs/hubfs/What%20Are%20Handling%20Units%20in%20SAP%20S4HANA.png?height=600&name=What%20Are%20Handling%20Units%20in%20SAP%20S4HANA.png)](https://blog.sap-press.com/what-are-handling-units-in-sap-s4hana) [Logistics](https://blog.sap-press.com/tag/logistics) ## [What Are Handling Units in SAP S/4HANA?](https://blog.sap-press.com/what-are-handling-units-in-sap-s4hana) [Read More](https://blog.sap-press.com/what-are-handling-units-in-sap-s4hana) [![10 Reasons to Upgrade from SAP LE-TRA to SAP S/4HANA](https://blog.sap-press.com/hs-fs/hubfs/10%20Reasons%20to%20Upgrade%20to%20SAP%20S4HANA%20from%20SAP%20LE-TRA%20for%20Transportation%20Management.png?height=600&name=10%20Reasons%20to%20Upgrade%20to%20SAP%20S4HANA%20from%20SAP%20LE-TRA%20for%20Transportation%20Management.png)](https://blog.sap-press.com/10-reasons-to-upgrade-to-sap-s4hana-from-sap-le-tra-for-transportation-management) [Logistics](https://blog.sap-press.com/tag/logistics) ## [10 Reasons to Upgrade from SAP LE-TRA to SAP S/4HANA](https://blog.sap-press.com/10-reasons-to-upgrade-to-sap-s4hana-from-sap-le-tra-for-transportation-management) [Read More](https://blog.sap-press.com/10-reasons-to-upgrade-to-sap-s4hana-from-sap-le-tra-for-transportation-management) **Subscribe to our blog!**Get notified about future blog updates. - - - - - ### The official SAP PRESS Blog As the world’s leading SAP publisher, SAP PRESS’ goal is to create resources that will help you accelerate your SAP journey. The SAP PRESS Blog is designed to provide helpful, actionable information on a variety of SAP topics, from SAP ERP to SAP S/4HANA. Explore ABAP, FICO, SAP HANA, and more! ### SAP Blog Topics - [All Topics](https://blog.sap-press.com) - [Logistics](https://blog.sap-press.com/tag/logistics) - [Programming](https://blog.sap-press.com/tag/programming) - [FICO](https://blog.sap-press.com/tag/fico) - [Administration](https://blog.sap-press.com/tag/administration) - [Business Intelligence](https://blog.sap-press.com/tag/business-intelligence) - [What Is?](https://blog.sap-press.com/tag/what-is) - [Featured](https://blog.sap-press.com/tag/featured) - [CRM & Sales](https://blog.sap-press.com/tag/crm-sales) - [Video](https://blog.sap-press.com/tag/video) - [Human Resources](https://blog.sap-press.com/tag/human-resources) ### Blog curated by [![Rheinwerk Publishing & SAP PRESS Logo](https://blog.sap-press.com/hubfs/rheinwerk-sappress-logo-header-1.svg)](https://sap-press.com) [Visit the SAP PRESS Store](https://sap-press.com) ### About - [Home](https://sap-press.com/) - [About Us](https://sap-press.com/the-publisher/) - [Contact](mailto:info@rheinwerk-publishing.com) - [Legal Notes](https://sap-press.com/legal-notes/) - [Privacy Policy](https://sap-press.com/privacy/) - [Terms of Use](https://sap-press.com/terms/) - [Guest Posting](https://blog.sap-press.com/guest-posting) © 2026 Rheinwerk Publishing, Inc. | Change Privacy Options ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "SAP PRESS", "url" : "https://blog.sap-press.com/author/sap-press" }, "dateModified" : "2026-07-17T14:58:38.252Z", "datePublished" : "2022-01-31T14:00:00.000Z", "headline" : "SAP S/4HANA Transportation and Warehouse Management Overview", "image" : [ "https://blog.sap-press.com/hubfs/Discover%20SAP%20S4HANAs%20Transportation%20Management%20System%20and%20Warehouse%20Management%20System.png" ], "mainEntityOfPage" : { "@id" : "https://blog.sap-press.com/discover-sap-s/4hanas-transportation-management-system-and-warehouse-management-system", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.sap-press.com/hubfs/Logo-1.jpg" }, "name" : "Rheinwerk Publishing, Inc." } } ```