sap s/4 hana supply chain management foundation for ... · pdf filebusiness drivers for s/4...

SAP S/4 HANA Supply Chain Management Foundation for Business Innovation

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Customer

Business drivers for S/4 HANA

Real time analytics at the lowest level of

granularity on primary transactional

data, without aggregates

Increased business user productivity

with beautiful, role-based UIs and

availability on multiple devices

Optimized system landscape and

reduced number of systems gives

customer high performance with lower

TCO

Increased system throughput by

eliminating data redundancies and

reduced data footprint


SAP S/4HANA 1610SAP Fiori: The user experience of SAP S/4HANA

Single entry point

Domain specific infos and actions

Enter details and explore in depth

The SAP Fiori launchpad will be the single

entry point to access all apps

Users will quickly get an overview of what needs their

attention with Overview Pages, List Reports and Work

Lists, and trigger quick actions or drill down to the next

level of detail

Key and differentiating use cases will be re-imagined

with the SAP Fiori user experience.

All “classical” transactions will have the SAP Fiori

visual theme.

Native iOS mobile

experience for high-

impact scenarios


Key Innovations in Manufacturing and Supply Chain S/4HANA 1610

Material Requirements Planning

Fast MRP run, and new working model for

MRP controllers based on decision support.

Order Management & Billing

Enable monitoring of end-to-end order-to-cash process & take actions for

any exceptions, information on the exceptions to resolve the issues, lower

TCO due to data model simplification, support for the most recent versions

of business features such as FSCM Credit Management, GTS Foreign

Trade, SFIN Revenue Accounting, new analytical capabilities.

Warehouse Management

New deployment option for bringing SAP Extended

Warehouse Management to ERP, reducing integration

efforts, allowing seamless mater data & UI harmonization.

Inventory Management

Simplified data model resulting in increased

through-put, flexible analytics at the most

granular level.

Available To Promise & Backorder processing

Enhance ERP by advanced ATP capabilities

in APO, new coding to make it better,

innovation benefit as functionality will be

refreshed.

Capacity Planning

New deployment option for bringing PP/DS

on ERP, reducing integration efforts,

allowing seamless master data & UI

harmonization.

Material Valuation

Principle of One, scalable material valuation capabilities, utilizing

Material Ledger, that way customers can use multi-currencies,

valuation methods per different accounting laws like GAAP.

Industry to Core

Discrete industries functionalities such as Just-in-Time & Just-in-

Sequence available for wider cross industry adoption through the

Core

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Customer 7

Business Challenges

» Low throughput prevents real-time inventory

» Missing embedded and real-time analytics

» Missing comprehensive data model

» Process & data redundancies increase effort

Capabilities

» Real-time processing of inventory postings and visibility of inventory

values

» Posting of finest granularity like handling unit, lot size 1, sensor data

» Decreased stock levels (e.g. reduce buffers) due to increased

transparency

» Easy to consume data model supporting flexible analytics

» Manage the changing demand for smaller lot sizes passing through the

logistic operations

Business Benefits

» Improve on-time delivery

» Increase inventory turnover

» Reduce cost of inventory

» Single source of truth of inventory in one system

Real Time Inventory Management

Safety stock

Time

Quantity

Reorder

point

We

ekly

Reple

nis

hm

ent

Buffers

Daily collective

goods issues

Just-in-time

Time

Quantity

Safety stock

Reorder

point

Sub-daily

replenishment Continuous

goods issue postings

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Inventory ManagementExamples for unlimited Data Through put in Goods Movement

Multiple production lines produce same product by

single item tracking and combined postings for

Goods issue raw material

Goods receipt finished product

Goods issue finished product

Goods receipt finished product at

distribution center

1. Parallel Production combined postings

Example Use Case:

2. Ice Truck Scenario

Trucks deliver goods to customer directly. Coming

back to the distribution center the orders and

deliveries are uploaded from offline device.

Combined postings

Creation of sales order and delivery

Picking of goods

Goods issue, invoicing

Truck replenishment

Distribution Center

Distribution Center


Simplifications enable throughput increase of 10x - 25x

0

200

400

600

800

0 20 40 60 80 100

Thro

ughput

(ite

ms/s

ec)

# Parallel Processes

SAP Business Suite on SAP HANA

Negative stock not allowed

No database locks any more

Automotive scenario test case

Reporting point back flush with transfer posting of 100 items each

60% common parts

large OEM back-flush requirement (example)

Parallel postings of large material documents


Real Time Inventory Management

Inventory Turnover Analysis

Key benefits

» Comprehensive stock

overview per material on the

time scale

» Display the most important

inventory key figures

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Customer 11

Business Challenges

» Increasing customer service

» Low inventory accuracy

» Revenue losses due to stock-outs

» On-time delivery performance

Capabilities

» Prioritized view on material flow issues

» Real-time alerting

» System-generated solution proposals

» MRP can run sub-daily and as frequently as required

» Demand information is propagated faster through the supply

chain

Business Benefits

» Clear visibility across the material flow

» Proactive decision making in response to changing demand

» Flexible tailoring of available capacities and receipts to more

granularly meet required quantities

» Real time inventory monitoring and automating the creation of

procurement proposals

Material Requirements Planning

Days Hours


MRP Performance Enabling Faster and More Frequent Runs Example data from a customer PoC

Legend:

MRP Classic on

AnyDB (12-way

parallelization)

MRP Classic on

HANA (12-way

parallelization)

MRP Live on HANA MRP Live on HANA – HANA only

0

10

20

30

40

50

60

Version 1

Runtime in hours

40,2

Version 2 Version 3

55,5

Reference

Da

ta v

olu

me

incre

ase

Version 4 Version 5

4,5

17,5

2,54,3

1,5 3,95,5

44,8

17,5

Scenario 1 Scenario 2

1,0 2,2

Scenario 1 Scenario 2

Materials 1,5 Mio. 1,5 Mio.

Thereof configured materials 117.000 117.000

Inserted purchase requisitions 1,0 Mio. 1,0 Mio.

Inserted planned orders 2,3 Mio. 10,4 Mio.

Inserted dependent

requirements

9,2 Mio 96,0 Mio


Key Capabilities of an Exception-Bases User Interface Design

Decision Support

Simulation


SAP S/4HANA Enterprise Management Available to Promise (ATP) Overview

Available to Promise

Business Benefits

» Improved customer service value and increased on-time

delivery for important sales orders

» Improved Order Promising in near-term horizon based on

short-term changes

» Flexible order confirmation based on business priorities

» Prioritize different requirement/order types/customers

differently

» Perform automatic back-order processing

» Instant change of ATP strategies

Business Challenges

» Difficult to fulfill customer orders on time with

the proper quantity in near term horizon

» Promise accurate and reliable order dates

» Inefficient strategies to fulfill orders from the entire

network - or to substitute products automatically

» Inefficient strategies to sell scarce products in a

fair manner

» Inefficient ways to manage order backlogs


Available to Promise

ERP

Data replication via CIF

APO Code Pushdown to HANA

SAP S/4HANA

…

Product Availability Check

Product Allocation

Rescheduling

Substitutions

Etc.


Product Allocation

Rescheduling

Substitutions

Etc.


Product Allocation

Rescheduling

Substitutions

Etc.

Current functional model With SAP S/4HANA for Supply Chain


S/4 HANA The Foundation for SCM Innovation

S/4

SAP HANA Platform

Warehouse

Management

Track & Trace

Transportation

Management

Supply Chain Execution PlatformIntegrated Business Planning (IBP)

Sales & Operations Planning

SAP HANA Platform

Supply Chain Control Tower

DemandSupply &

ResponseInventory

SAP Asset

Intelligence Network

Advanced Planning and

Project Management

Advanced Production Planning &

Optimization

Supply Network Collaboration

SAP HANA Platform

Portfolio & Project Management

Portfolio & Project

Management

Extended

Warehouse Mgt.

Production Planning

& Scheduling

Advanced ATP &

Order Scheduling ...

Enterprise Management and new S/4 HANA Products

Thank youContact information:

Claus Jensen

Senior Solution Advisor

[email protected]

+971 4365 1996

mailto:[email protected]

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