SAP’s new cloud solution bundles warehousing and transport in one application. It is intended for external warehouses, smaller plants and shipping sites with standard processes. We check whether LGM fits the site and support the implementation.
SAP Logistics Management, LGM for short, is an SAP cloud solution for warehousing and transport. It has been available since October 2025 and is aimed at sites with manageable logistics.
What makes it special is the bundling. Goods receipt, picking, packing and shipping run in the same application as transport planning and coordination with carriers. For a smaller site, this means one system for everything that happens between goods receipt and handover to the carrier.
LGM runs as software-as-a-service on the SAP Business Technology Platform and is connected to S/4HANA. Updates arrive continuously, without a separate upgrade project.
LGM is built for sites whose logistics remain manageable. Many companies have exactly this mix: a central warehouse with EWM plus several smaller sites for which EWM would be too big. Stock there is often managed only at storage location level, and nobody knows exactly where anything is. LGM closes this gap and brings storage bins to the site with manageable effort.
Yes. Goods receipt, putaway, picking, packing and shipping run in LGM, with task bundling and storage bin management.
Yes. LGM plans shipments, obtains quotes from carriers, calculates freight costs and tracks the status in transit. Coordination with carriers runs via the SAP Business Network.
Yes. Loading times for truck loading can be planned and truck arrivals recorded at the gate. Waiting times in the yard become visible before they build up.
Yes. SAP provides its own apps for Android and iOS. Picking and packing can therefore also be done on a smartphone.
SAP has integrated the AI assistant Joule into LGM, for example to speed up shipping confirmations or tenders. How far this goes in day-to-day work depends on the process.
LGM is not built for that. For conveyor systems, shuttles or high-bay warehouses, EWM is the right system.
For a smaller site, SAP offers two paths today. Both cover the standard processes of a warehouse. The differences lie in operation, licensing and transport.
| Criterion | SAP Logistics Management | EWM Basic |
|---|---|---|
| Operation | cloud application on SAP BTP | in the S/4HANA system |
| Licence | separate cloud licence | part of S/4HANA with no additional licence |
| Transport | included | not included |
| Updates | continuous, without an upgrade project | with the S/4HANA release |
| Automation | not intended | connection possible, control of conveyor systems and stacker cranes (MFS) with EWM Advanced |
| Growth | intended for smaller sites | expansion to EWM Advanced in the same system |
| Mobile devices | own apps for Android and iOS | mobile barcode scanners (RF) and SAP Fiori apps |
LGM is continuously receiving new functions. An assessment from six months ago may already be outdated today. Before every decision, we compare the current status with the site’s processes, process by process.
LGM is connected to S/4HANA, but not to every variant to the same extent. That is why we clarify right at the start which edition is in use and where the ERP strategy is heading. Only then is it worth looking at the functions.
LGM in the external warehouse and EWM in the central warehouse can run well side by side. This requires a shared picture of master data, stock and stock transfers between the sites. We draw this picture before the second system arrives.
With a new system, the work begins with the question of whether it fits. After that, we support the implementation and the connection to the other sites.
System selection between LGM, EWM Basic and EWM Advanced, fit-to-standard against the current functional status, proof of concept for critical processes
Design, setup and data migration, including when moving from Stock Room Management, testing and training
Connection to S/4HANA and to EWM in the central warehouse, stock transfers between the sites
Extensions on SAP BTP where the standard is not enough
SAP names LGM as an option for companies that work with Stock Room Management today. The switch is a separate implementation with design and data migration. Which path fits is shown on the Stock Room Management page.
LGM is currently built for S/4HANA Cloud Private Edition; SAP has announced further editions. We clarify at the start which constellation works for a company.
No. LGM is a separate application with its own cloud architecture. It covers the standard processes of a warehouse and also brings transport functions that EWM does not have.
Yes. A typical picture is EWM in the central warehouse and LGM at smaller sites. What matters is a shared concept for master data and stock transfers.
Much faster than EWM, because the scope is smaller and no separate system has to be set up. We give a realistic time frame after looking at the site and processes.
