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.
Inventory accuracy
99.5%
Picking productivity
+22%
Out-of-date stock
-35%
# 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- Out-of-date stock was reduced by 35% thanks to FEFO enforcement and clearer visibility.