in SAP LGM
SAP Logistics Management, or LGM for short, is SAP’s latest logistics solution. Modern, powerful—and featuring a key aspect that catches the attention of many logistics managers and production supervisors: production integration. Officially, however, SAP states that full production integration in LGM is not scheduled until Q4 2026. So anyone who wants to seamlessly integrate production and warehouse logistics today will have to wait. Or will they?
Not necessarily.
In practice, it turns out that with the latest enhancements in SAP Logistics Management, a “light” version of production integration can already be implemented today. It’s not a complete replacement for traditional integrations from WM, Stock Room Management, or EWM. But it is a pragmatic way to support certain production scenarios with LGM right now.
The real crux of the matter: Production isn't just about inventory movement
Production and logistics are closely intertwined: components must be made available, removed, picked, and later returned as semi-finished or finished goods.
At smaller or simpler sites, this is often handled today via an IM warehouse. Inventory is picked retroactively or manually, for example using a traditional picking list. The process is familiar and technically manageable. But as soon as mobile processes, control center functions, queues, or greater transparency are required, this approach quickly reaches its limits. This is exactly where LGM comes into play.
Full production integration into SAP LGM won’t officially be available until Q4/2026—but a closer look reveals that practical solutions already exist today for many production-related logistics processes.
The approach: The picking list is converted into an LGM process
The key concept is this: When a goods issue is posted in the production process using the picking list (MB26), a material document is created. Based on the component list in the production order, SAP can make the relevant items available.
In conjunction with SAP Logistics Management, this can be used to automatically generate a delivery. LGM can then use this delivery to trigger subsequent logistics processes.
This means that production staging is no longer treated as a simple inventory movement. It can be handled using functions from LGM:
- mobile picking
- mobile confirmation of withdrawals
- control via the control station
- assignment of picking tasks to queues
- more structured operational processing in the warehouse
This is more than just a cosmetic change. Production can already benefit from LGM functions today, even though the official SAP production integration is not yet available.
The uncomfortable truth: If you wait, you're wasting time
Of course, you can wait for the SAP roadmap. That’s convenient, straightforward, and usually politically safe.
But it’s also slow.
If your company is already struggling today with production supply, manual picking, paper lists, or opaque warehouse processes, a feature scheduled for Q4 2026 won’t help you operationally right now. So the question isn’t so much, “Is the standard integration available yet?” but rather, “Which process gaps can we meaningfully close today?”
This is precisely where the appeal of this light integration lies.
Goods receipt can also be tracked
Production integration does not end with component provision. After manufacturing, semi-finished or finished parts must be received back into inventory.
There is also a practical approach for this via the delivery scenario. For example, the goods receipt can be posted to the production order via MIGO. Alternatively, a milestone confirmation can trigger the goods receipt.
The result: A corresponding delivery is automatically created in LGM. This can be used for putaway and further processed with the respective follow-on documents.
This creates a simple yet end-to-end process framework:
- Component provision via outbound delivery
- Picking and removal using LGM functions
- Goods receipt of semi-finished or finished products via inbound delivery
- Putaway and follow-up processes in LGM
For many companies, this is exactly what is needed to significantly improve initial production-related logistics processes.
A multi-vendor project has also shown that CONSILIO offers and implements solutions that lead to joint success.
However: It is not a fully integrated production system
Let’s be honest: this solution is a “light” version. It’s pragmatic, but not comprehensive.
Most importantly, in the first phase, only order-based picking is possible. Material staging is therefore tied to a specific production order.
This means that functions from traditional production integrations are not initially covered, such as:
• cross-order staging
• order-independent staging
• more complex production supply models
• full integration depth as in WM, Stock Room Management, or EWM scenarios
Anyone who needs such scenarios should not market this approach as a complete replacement. That would be technically inaccurate.
But it would be just as inaccurate to dismiss it outright simply because it does not cover every conceivable production scenario.
An important technical point: Don't forget the Incoterms
To ensure that the technical transmission and processing of shipments function properly, LGM requires the appropriate Incoterms.
This may sound like a minor detail, but it is crucial. Such settings often determine whether a well-designed process runs smoothly from a technical standpoint. Especially with a solution that is not delivered as a traditional standard production integration, organization, labeling, and technical parameters must work together seamlessly.
Who would benefit from this approach?
This approach is particularly interesting for companies that:
- currently handle production in simple warehouse structures close to the production floor
- already work with picking lists or manual stock removal
- want to use more mobile processes in production supply
- are implementing or already using LGM
- do not want to wait for full SAP production integration
- have manageable, order-based production scenarios
It is less suitable for companies with highly complex production supply processes, extensive KANBAN logic, cross-order material provision, or deeply integrated production processes.
Conclusion: not a replacement for the standard—but a good reason not to stand still
Production integration in SAP LGM has not yet been officially completed. However, this does not mean that companies have to sit idle until the fourth quarter of 2026.
With the scenario for goods receipts and shipments, you can set up lean production integration today. This leverages existing SAP mechanisms, connects them with LGM functions, and creates operational value: more mobile processes, better control, greater transparency, and a more modern approach to production logistics.
Is this the final SAP solution? No.
Is it better for many companies than waiting? Very likely.
Because those who wait for the perfect standard in logistics often end up with perfect excuses—but no better processes.
