Overview : SAP LGM Integration with S/4Hana Cloud Private Edition
SAP Logistics Management (SAP LGM) is a comprehensive solution within the SAP ecosystem designed to orchestrate and optimize end-to-end logistics operations across the supply chain. It encompasses a broad set of functional capabilities — including warehouse management, transportation and carrier network, thus enabling organizations to manage the full flow of goods from inbound procurement through to outbound customer delivery.
It helps enterprises reduce operational costs, improve delivery accuracy, and respond swiftly to supply chain disruptions — making it a critical pillar for organizations pursuing digital transformation of their logistics and supply chain functions
Technically, SAP Logistics Management is a native cloud SaaS logistics solution on SAP Business Technology Platform (SAP BTP).
SAP LGM was introduced in early 2026 with integration with SAP S/4HANA Cloud Private Edition, and further the Integration with SAP S/4HANA Cloud Public Edition has now been released. This ensures that the both the customers for our Public and Private Cloud can use the capabilities of SAP LGM for their logistics operations
Introduction
SAP Logistics Management can now talk to SAP S/4HANA Cloud Private Edition without any middleware in between. In the direct integration scenario, the two systems exchange SOAP messages and OData calls through the Cloud Connector alone, so you do not need an SAP Integration Suite tenant, integration flows, or iFlow monitoring for this connection.
This two-part blog series walks through the complete setup from end to end, in the order you would actually do it. Part 1 (this blog) covers the architecture, the prerequisites, preparing the S/4HANA system and exposing the inbound web services in SOA Manager. Part 2 covers the outbound web services, the Cloud Connector and the configuration in SAP Logistics Management.
It is written for Administrators, integration consultants and logistics functional consultants who are implementing SAP Logistics Management alongside an existing S/4HANA Cloud Private Edition system.
Direct integration architecture
Direct integration connects SAP Logistics Management to S/4HANA Cloud Private Edition using SOAP-based web services through the Cloud Connector, with no middleware. It applies when SAP BTP can reach your S/4HANA system over a direct network connection, and this series covers that scenario only.
How the messages flow
The two directions take different paths, which is worth understanding before you start configuring.
- S/4HANA to SAP Logistics Management: S/4HANA calls the SOAP endpoint of your SAP Logistics Management tenant over HTTPS. This carries warehouse requests such as outbound deliveries and stock transfer shipment advices.
- SAP Logistics Management to S/4HANA: SAP Logistics Management calls back through a BTP destination and the Cloud Connector. This carries confirmations (shipping advice, stock transfer receipt) over SOAP and master data replication over OData.
Before you start
Prerequisites checklist
- Your SAP BTP user has the Subaccount Administrator role collection in the SAP Logistics Management subaccount.
- SAP Cloud Identity Services is set up and you have administrator authorization.
- A business system exists in the S/4HANA system.
- You have a Cloud Connector installed & Configured
Step 1: Prepare SAP S/4HANA Cloud Private Edition
Five preparation tasks come before any web service configuration: enable the OData services, define the warehouse, build the authorization role, create the technical user and activate the AIF content.
1.1 Define the warehouse
Define a SAP Logistics Management warehouse in SAP S/4HANA Cloud Private Edition by using below SAP Help Link
1.2 Enable the OData services
SAP Logistics Management replicates business partners, products and purchase orders through OData, and posts changes back the same way. Both V2 and V4 services are involved.
Version | Services | Transaction |
OData V2 | API_MATERIAL_DOCUMENT_SRV, API_MATERIAL_STOCK_SRV, API_BUSINESS_PARTNER, API_BATCH_SRV | /IWFND/MAINT_SERVICE |
OData V4 | API_PURCHASEORDER_2, API_PRODUCT, CDI_CDS | /IWFND/V4_ADMIN |
Enable the OData V2 Services: V2 services:
For the V4 service groups:
1.3 Create the PFCG role
One role carries the authorizations for all three interface types. In transaction PFCG, create a role (for example ZLGM_ROLE) and add the services on the Menu tab as authorization defaults.
The four SOAP external services to enter are:
- WAREHOUSESHIPPINGADVICE_IN/WAREHOUSE_SHIPPING_ADVICE_IN
- WAREHOUSESHIPPINGADVICECANCELR/WAREHOUSE_SHIPPING_ADVICE_CANC
- WAREHOUSESTOCKTRANSFERRECEIPT1/WAREHOUSE_STOCK_TRANSFER_RECEI
- WAREHOUSESTOCKTRANSFERRECEIPTA/WAREHOUSE_STOCK_TRANSFER_RECEI
1.4 Create the technical user
This user is what the Cloud Connector destination and SAP Logistics Management use to log on to S/4HANA. (ZLGM_T_USER)
1.5 Enable AIF
- Open transaction /AIF/CONTENT_EXTRACT.
- Enter the development scenario ID SAP_AIF_0118.
- Choose Execute.
Step 2: Expose the inbound web services in S/4HANA
SAP Logistics Management confirms its warehouse activities by calling four SOAP services in S/4HANA. Each one needs its own service binding in SOA Manager, and each binding gives you an access URL that you enter later in SAP Logistics Management.
The service definitions are in package LE_IDW_SOA_SERVICES (transaction SE80, under Enterprise Services > Service Definitions):
Open transaction SE80. Choose the package LE_IDW_SOA_SERVICES. Configure each service separately. Start with one service definition and repeat the process for each remaining service definition.
Service definition | Purpose |
WarehouseShippingAdvice_In | Warehouse shipping advice |
WarehouseShippingAdviceCancelR | Cancellation request for a warehouse shipping advice |
WarehouseStockTransferReceiptA | Warehouse stock transfer receipt advice |
WarehouseStockTransferReceipt1 | Cancellation of a warehouse stock transfer receipt advice |
Repeat this procedure for each of the four definitions:
What’s next
S/4HANA is now ready to exchange warehouse messages with SAP Logistics Management: the warehouse is defined, the OData services and the four inbound web services are exposed, and the technical user, authorization role and AIF content are in place.
In Part 2, we complete the integration: configuring the six outbound web services in SOA Manager, setting up the Cloud Connector and finishing the configuration in SAP Logistics Management, followed by a checklist to validate the setup end to end.
References
- Technical Integration with SAP S/4HANA Cloud Private Edition: Direct Integration in the Integration Guide for SAP Logistics Management, SAP Help Portal.
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