SAP LGM in Practice – Part 4 of the Series: Integration Effort and Costs

SAP LGM – Integration Effort and Costs: An Overview of SAP BTP, Integration Suite, and Cloud Connector

You know what SAP LGM can do. What usually remains unclear is how much the implementation costs and where the expenses arise. In Part 4 of our series, we take a look behind the scenes: at the technical foundation (SAP BTP), the initial integration effort using SAP Integration Suite and SAP Cloud Connector—and at the cost considerations, including items that are often overlooked in practice.

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Our Authors and Experts

Pascal Contursi

Business Development & Digital Marketing

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Felix Petrich

SAP Consulting

Expert

Last updated on 21.08.2026

Want to go in order? No problem! Start at the beginning of our SAP LGM blog series:

August 21, 2026

SAP LGM – Integration Effort and Costs: SAP BTP, Integration Suite and Cloud Connector at a Glance

SAP LGM must prove itself where budgets are actually decided: in cost estimation. In Part 4 of our practical series, we show just how high the integration costs via SAP BTP, Integration Suite, and Cloud Connector really are—and where costs are most often underestimated: from the Integration Suite to scaling across multiple locations.

This way, status C provides a solid guide for your cost planning—based on real integration scenarios, not on wishful thinking.

July 13, 2026

Mobile processes in SAP LGM

SAP LGM must prove itself where warehouse processes actually take place: on the move, right where the action is. The “SAP Warehouse Logistics” mobile app demonstrates what system-human interaction on the shop floor looks like today—deliberately streamlined, without an RF framework.

In Part 3 of our practical series, we show which processes in SAP LGM are already running on mobile devices—putaway, picking, and stock transfers—what the requirements are, and where the limitations lie: from handling unit (HU) management to inventory counts (as of July 2026).

In this way, Status C provides sound, practical guidance for anyone planning mobile warehouse processes with SAP LGM—based on the actual functional status, not the marketing pitch.

June 25, 2026

SAP LGM or SAP EWM? Which warehouses are suited to the streamlined SAP cloud solution?

The most important question regarding SAP LGM is rarely a simple ‘yes or no’, but rather: Which is more suitable for my site – SAP LGM or a lean SAP EWM? Both approaches can be implemented quickly – but they lead to different paths for the future.

In Part 2 of our practical guide series, we provide guidance for decision-makers: which warehouses SAP LGM is suitable for, how it differs from EWM, and when a streamlined EWM is the more viable choice – including a comparison of functions and a decision matrix.

In this way, status C provides well-founded, practical guidance for anyone looking to choose the right solution for their site between SAP LGM and SAP EWM.

June 4, 2026

SAP LGM in practice: Goods receipt & putaway

SAP LGM is more than just another SAP warehouse management system: this streamlined, cloud-native warehouse management solution deliberately standardises processes such as goods receipt – quick to roll out, intuitive and fully accessible via Fiori, on both desktop and mobile devices.

In Part 1 of our practical series, we demonstrate goods receipt, including putaway, step by step in a live system – using screenshots rather than theory. At the same time, we honestly assess where SAP LGM still has its limitations today.

This provides a well-founded, practical guide for anyone considering SAP LGM as a reliable complement to SAP EWM.

The Technical Foundation: Two Integration Scenarios for SAP LGM

SAP LGM is cloud-native and runs as SaaS on the SAP Business Technology Platform (SAP BTP). This means there is no dedicated on-premises server for the warehouse management system, but it requires a seamless connection to your core SAP S/4HANA system. SAP offers two integration scenarios for this:

Integration via SAP Integration Suite: Ideal for companies with higher requirements regarding security, access control, and data flow tracing. In this scenario, the distribution of incoming and outgoing shipments between SAP LGM and SAP S/4HANA, among other processes, is handled via the SAP Integration Suite.

Direct Integration: Ideal for companies that do not plan to use SAP Integration Suite and prefer a streamlined integration of SAP LGM with SAP S/4HANA. In this scenario, incoming and outgoing shipments are distributed directly from SAP S/4HANA to SAP LGM.

In both scenarios, the SAP Cloud Connector ensures a secure connection to SAP S/4HANA—including for updates from SAP LGM (e.g., goods receipt and goods issue postings).

The integration effort: high at first, then streamlined

The greatest effort is required only once, during the initial setup of the interfaces. Once this integration is in place, an important benefit emerges: Connecting additional warehouses requires significantly less effort—similar to rolling out a lean EWM to additional locations. The scaling effect, therefore, lies in breadth, not depth.

The Cost Perspective: SaaS License vs. EWM Stack

A fair cost comparison doesn't just look at license prices; it takes a holistic view of both worlds:

Important Practical Note: If you do not opt for direct integration, the costs of the SAP Integration Suite (as part of BTP) are often underestimated in initial cost-benefit analyses. These costs should be included in the calculation from the outset—otherwise, the business case may shift unintentionally later on.

The three cost blocks are calculated based on different reference values:

SAP LGM: Monthly document volume, tiered in blocks, with a minimum purchase requirement.
SAP BTP (including SAP Cloud Connector): multiple pricing models available.
SAP Integration Suite: Number of tenants (not required for direct integration)

We’re deliberately not listing flat rates here: SAP license and BTP costs depend on your specific system landscape. You can find the current licensing models directly on the SAP website via the links.

We’d be happy to work with you to calculate what this means for your system landscape—transparently and without sugarcoating the numbers.

For a no-obligation initial consultation

When does SAP LGM pay off?

Whether SAP LGM is a better choice than a (streamlined) EWM depends heavily on the number and type of locations. Rule of thumb: The more small, standardized locations are connected, the more SAP LGM’s broad-scale effect comes into its own. This is especially true if SAP BTP is already in use or is intended for use with other applications. However, there is no blanket break-even point “starting at X locations”—this depends on your specific system landscape and the (potentially existing) BTP costs.

Why Integration Is the Real Lever

The real challenge with SAP LGM lies not in the front end, but in the integration layer: SAP BTP, Cloud Connector and, depending on the integration scenario, SAP Integration Suite must all work together seamlessly to ensure that LGM and S/4HANA exchange data reliably. This is precisely where our expertise lies: As an SAP consultancy specialising in intralogistics, we have implemented the most common integration scenarios – embedded EWM, decentralised EWM and EWM with multiple connected ERP systems. We are familiar with SAP BTP not only from projects but also from our own development work: we operate our own app on the platform. We bring this knowledge to every project, regardless of which approach you choose.

Not sure which integration scenario is right for your system environment?

We're familiar with both approaches from our own projects and will honestly tell you which one is right for you.

For a no-obligation initial consultation.

Frequently Asked Questions About SAP LGM Integration and Costs

What is the technical basis for SAP LGM?

SAP LGM is cloud-native and runs as SaaS on the SAP Business Technology Platform (SAP BTP). It connects to SAP S/4HANA via the SAP Cloud Connector and, depending on the integration scenario, the SAP Integration Suite.

How much effort is required for integration with SAP LGM?

The initial effort is significant because the interfaces between LGM, Cloud Connector, Integration Suite, and SAP S/4HANA must be set up. After that, additional warehouses can be connected with minimal effort.

What costs are often underestimated in SAP LGM?

The costs of the SAP Integration Suite are often included as part of the BTP. They should be factored into the cost-benefit analysis from the outset, unless direct integration is chosen.

At what point does SAP LGM become a better choice than EWM?

There is no one-size-fits-all threshold. Generally speaking, SAP LGM becomes more cost-effective as more small, standardized locations are connected. The specific break-even point depends on the system landscape and BTP costs.