SAP Logistics Management – The next evolutionary stage in SAP logistics

Recent years have shown that supply chains are no longer silent supporters, but rather the backbone of many companies. Volatile markets, geopolitical tensions, and skills shortages are forcing companies to rethink their networks. Companies are increasingly moving away from centralized network structures and instead relying on resilient, regionally distributed hubs to respond flexibly to disruptions.

At the same time, the way logistics is operated is changing. We are moving from a transactional world to a data-driven supply chain where decisions have to be made in real time. While large distribution centers have long since entered the age of Industry 4.0 and even gone beyond it, many smaller warehouses still work with paper or Excel.

With Industry 5.0, the next generation is already knocking on the door – it relies on AI, automation, and close collaboration between humans and machines. How are companies dealing with this? Many companies are now at a crossroads. With the phase-out of SAP LE-TRA and SAP LE-WM, the question arises: What does the future of your logistics look like? Which SAP solution is the right one?

SAP LGM closes this gap – it offers a solution that digitizes simple, manual warehouses without having to start a large SAP EWM or SAP TM project right away. I say: "SAP LGM strikes the right balance between simplicity, speed, and future-proofing.

Why SAP LGM is relevant now

• Reduces go-live time from months to weeks
• Digitizes manual warehouse locations
• Lower total cost of implementation and ownership
• Perfect entry point into cloud logistics for medium-sized businesses and satellite plants

SAP LGM is not a slimmed-down version of SAP EWM, but a standalone cloud solution on the SAP Business Technology Platform (BTP). It combines warehouse and transport processes in a single interface and consistently follows the concept of composable logistics: companies only activate what they really need.

The solution is aimed at small and medium-sized locations – production warehouses, regional distribution centers, or 3PL hubs with limited automation but a high need for transparency and integration. With its API-first and cloud-native approach, as well as direct connection to SAP S/4HANA Private Edition and the Business Network for Logistics, SAP LGM can be seamlessly integrated into existing IT landscapes.

The user interface is based on SAP Fiori and is intuitively designed. With the AI assistant SAP Joule, another building block for the future is included. In short: quick start, clear design, integrated processes.

Architecture – The technical backbone

Technologically, SAP LGM represents the next step in SAP logistics. The system is completely API-based, modular in design, and regularly updated via the cloud. This allows for scalability, extensibility, and close integration with partner solutions on the BTP.

The clean core principle is crucial here: instead of maintaining individual in-house developments, companies can adopt standard processes and extend them with their own rules. This speeds up implementation and reduces subsequent operating costs. The integrated SAP Joule Copilot is playing an increasingly important role in this architecture.

It currently supports navigation and data queries, and in the future it will also prepare operational decisions. Since AI is developing faster than traditional software, we can look forward to exciting developments in the coming years.

SAP LGM offers clear advantages over classic on-premise systems:

• No local infrastructure
• Automatic updates and fast release cycles
• Short project durations
• Direct integration into the SAP ecosystem

For us, SAP LGM is a platform, not a product. It opens up space for innovation – from add-ons to industry-specific enhancements directly on the BTP.

Which processes are already integrated today

Even though SAP LGM is still in its infancy, the core processes are already stable and available. The product currently covers the entire standard flow from goods receipt to delivery – including transport integration.

Inbound

• Transfer of orders and deliveries from S/4HANA
• Creation of inbound warehouse requests
• Automatic or manual storage strategies – with fixed locations
• Mobile storage and ad hoc transfers
• Real-time inventory management

Outbound

• Creation and bundling of outbound warehouse requests
• Picking, packing, and shipping processing
• Handling unit creation and labeling
• Direct transport orders 

Transport & Network

• Carrier management with peer-to-peer and broadcast tendering
• Integration with the SAP Business Network for Logistics
• Freight collaboration and document tracking
• Initial freight cost settlement functions
• LTLT and Parcel Logistics

Internal processes

• Ad hoc movements, transfer postings, cycle counting
• Task creation and inventory overview in real time

SAP LGM complements SAP EWM and SAP TM – it does not replace them. SAP EWM remains the system for highly automated distribution centers, SAP TM controls complex transport networks, and SAP LGM closes the gap between them. Ultimately, it's about finding the right solution for the right location.

Typical application scenarios for SAP LGM:

• Production-related warehouses with standard processes
• Regional distribution or spare parts warehouses
• 3PL locations with clearly defined processes
• Decentralized connected plants

Körber uses structured assessments to determine the right solution for each location. Hybrid architectures are a common model here: SAP EWM in the central warehouse, SAP LGM in satellites, SAP TM for transport planning.

• Highly automated DC: SAP EWM ensures maximum process integration
• Global transport planning: SAP TM enables strategic management
• Medium-complexity regional warehouses: SAP LGM makes the company fast and cloud-ready
• 3-PL cooperation: Separate but integrated with SAP LGM (satellite)

SAP LGM is the link in the SAP portfolio – it finally makes hybrid architectures economical and cleanly scalable.

SAP LGM – driver of composable logistics

The roadmap clearly shows that SAP LGM will grow. With the planned GA release in 2026, topics such as freight settlement, batch handling, mobile inbound execution, and further automation steps will be added. The idea behind it is important: composable logistics.

In the future, companies will build their supply chains in a modular way – SAP LGM is the entry point. With each new function and integration, the value grows in the network, not in the individual system.

Three questions to determine whether SAP LGM is right for you:

1. Do you have multiple warehouse locations, but only a few with automation?
2. Is an SAP EWM or SAP TM project too big for you economically?
3. Do you want cloud integration, standardization, and short project times?

If you answered "yes" to one or more of these questions, we should talk.

Körber Perspective – From Strategy to Implementation

Körber is one of the first partners to actively include SAP LGM in its consulting and implementation portfolio. Our approach: not the most complex system, but the right system for each location.

Using a clear assessment framework, we evaluate processes, IT maturity, and business value – and use this to derive the appropriate SAP solution architecture. This creates decision-making certainty through transparency and makes hybrid architectures plannable. 

At the same time, Körber develops its own best practices and add-ons on the BTP that further accelerate the introduction and operation of SAP LGM – especially for industries such as pharmaceuticals, mechanical engineering, and consumer goods. We understand processes not only on the screen, but also on the ground.

Conclusion: From paper warehouse to predictive warehouse

SAP LGM is not a replacement for existing solutions—it is the logical addition to the SAP portfolio. It brings digitalization to places where it was previously hardly economically feasible: small and medium-sized warehouses, remote locations, and manual processes.

Körber actively supports this development – as a partner, consultant, and enabler. We help companies take the next step without fearing the big leap. Let's work together to see how SAP LGM can advance your supply chain.

In the Körber Design Workshop, we evaluate your locations, processes, and IT landscape—and show you where SAP LGM creates real added value.