How Process-Oriented Storage Control (POSC) Optimizes Warehouse Efficiency with SAP EWM

Imagine This: A Warehouse that Runs Itself
Picture this: a busy warehouse buzzing with activity, where hundreds of products are arriving every hour. Trucks are pulling up to the dock, and workers are unloading shipments, but there’s no chaos. Every box, every pallet, and every item seem to know exactly where it’s going. There’s no confusion, no delays, just seamless movement from the truck to the storage shelves. How is this possible? It’s all thanks to Process-Oriented Storage Control (POSC), a behind-the-scenes powerhouse in SAP Extended Warehouse Management (EWM).
In this world, inbound deliveries are handled with clockwork precision. Unloading, sorting, quality checks, deconsolidation, and storage all happen in perfect harmony, as if the warehouse is following an invisible script. Want to know how to turn your warehouse into this kind of well-oiled machine? Let’s take a journey through the magic of POSC and discover how you can transform your warehouse into a place where efficiency isn’t just a goal. it’s the norm.
How POSC Works: A Real-World Scenario
Let’s say warehouse receives an inbound delivery containing a mix of four different products: Engine Blocks, Spark Plugs, Oil Filters, and Brake Pads. Each of these products has different storage needs, and POSC ensures they are handled accordingly:
- Unloading: The shipment arrives and is unloaded in the Goods Receipt Zone. Here, every item is still part of a consolidated package.
- Deconsolidation: The shipment is then split into individual Handling Units (HUs). Large items like Engine Blocks are separated from smaller items such as Spark Plugs, Oil filters and Brake Pads. At the Deconsolidation Work Center, each product is assigned a unique HU for easy tracking and storage.
- Put away: Based on predefined rules, Engine Blocks are routed to the Bulk Storage Area, while smaller items like Spark Plugs, Oil Filters and Brake Pads are directed to High-Rack Storage Bins. Each product follows its predetermined storage path. Warehouse associates are guided by the system to place items in the correct storage locations, minimizing confusion and ensuring that every item is safely stored in its designated place.
This seamless flow of activities is where POSC shines. It not only ensures that every item follows the right path through the warehouse but also allows for real-time tracking and error reduction. The result? A warehouse that operates at peak efficiency, with products flowing from receipt to storage like clockwork.
Why Warehouse Needs POSC
If you’re dealing with a variety of products that have different storage requirements, POSC is your answer to streamlined, error-free operations. By breaking down each step of the inbound process unloading, deconsolidation, quality control, and put away—POSC allows you to manage your warehouse with precision.
This isn’t just about improving the process; it’s about transforming how your warehouse works:
- Increased Efficiency: Every product follows a logical, predefined path.
- Error Reduction: Deconsolidation and tracking minimize misplaced items.
- Optimized Storage: Products are directed to the best storage area for their size and handling needs.
Curious about the Configuration?
Take a look at the configuration steps illustrated below to get an overview of the setup required for Process-Oriented Storage Control

Each step in this configuration from defining POSC and Warehouse Process Types to setting up Deconsolidation Attributes, contributes to an efficient, highly structured inbound process. These steps represent the foundational elements for implementing POSC in your warehouse.
Want to dive deeper? For an in-depth guide on POSC setup, including technical configuration, download the full document here.
Author
Rahul Gandi
SAP EWM consultant
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