Decentralized Warehouse is setup in following business cases in Kraft World
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High volumes of raw material consumption.
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Extremely complex warehouse processes
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High volume of Sales scenario
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Quick Warehouse configuration required with minimum setup time
In SAP Kraft implementation, decentralized warehouses are established primarily for high-volume sales scenarios. This architecture supports efficient distribution by placing inventory closer to high-demand points, optimizing logistics and delivery speed.
Decentralized warehouse management is set up when a plant has a very high volume of sales/goods-issue transactions that the central ERP system can't process fast enough in real time. By handing warehouse execution to a separate (decentralized) WMS system, the high transaction throughput of sales/dispatch operations is handled locally without bottlenecking the central system. Low volumes, quick minimal setup, or simple processes don't need this extra complexity, which is why those options are wrong.