innovations in logistics with s4hana enterprise management 1511
TRANSCRIPT
S/4HANA - SAP Business Innovations in Logistics with S/4HANA Enterprise Management
25/03/2016 SAPience.be USERday 2016 1
1. S/4HANA Materials & Operations Management 1511 Intro
2. S/4HANA M&OM : Inventory Management & Material Valuation
3. S/4HANA M&OM : Procurement & Sales Order Management
4. S/4HANA M&OM : MRP , ATP & Backorder Processing
5. S/4HANA M&OM : Master Data Maintenance & Capacity Planning
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Partner
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
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which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3
Source: Shell energy scenarios 2050, 2015
Digital Core
SAP HANA Cloud Platform
SAP’s Digital Business Framework Business leaders need to digitally transform across five key pillars
SAP HANA Platform
Workforce Engagement
How can I better engage my workforce?
Supplier CollaborationBusiness Networks
How can I better increase supplier collaboration?
Assets and the internet of things
How can I better utilize my products and assets?
Customer-experienceOmni channel
How can I deliver an omnichannel experience?
v
Source: Shell energy scenarios 2050, 2015
Digital Core
S/4 HANA M&OM 1511MAJOR SIMPLIFICATIONS AND INNOVATIONS IN LOGISTICS
Re
qu
est
to
S
erv
ice
Co
re
Fin
an
ce
Reliable, scalable & instant Insights into all material value & material flow is at the heart of a modern
ERP system, and provides the basis for all innovations in Sales, Procurement, Manufacturing, Supply
Chain, Finance and Analytics
Inventory management
Material Valuation
Material Requirements Planning
Availability-to-Promise &
Backorder Processing
Procurement
Order Management &
Billing
Capacity Planning
Master data maintenance
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Partner
What are some key overall benefits in S/4 HANA M&OM 1511?
• Live analytics at the lowest level of
granularity on primary transactional
data, without aggregates. Analyze at
any level without exporting data.
• 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 (simpeler
data model)
• Eliminate Batch processing,
improve user satisfaction by
reducing waiting time.
• Explore the impact of business
decisions on outcomes
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Partner
SAP S/4HANA – Simplification List
Master Data
SA
P B
usin
ess S
uit
e
SA
P B
us
ine
ss
Su
ite 4
SA
P H
AN
A =
Dig
ital C
ore
Simplification List
Area
Simplification Item
Simplification Item
Simplification Item
Area
Simplification Item
Simplification Item
Simplification Item
Area
Simplification Item
Sales
Procurement
Logistics
Finance
HCM
Cross Topics
…..
Core HR
Core Finance
Optimized
Order to Cash
Streamlined
Procure to Pay
Accelerated
Plan to Product
Enhanced Request
to Service
Agenda
25/03/2016 SAPience.be USERday 2016 7
1. S/4 HANA Materials & Operations Management 1511 Intro
2. S/4HANA M&OM : Inventory Management & Material Valuation
3. S/4 HANA M&OM : Procurement & Order Management
4. S/4 HANA M&OM : MRP , ATP & Backorder Processing
5. S/4 HANA M&OM : Master Data Maintenance & Capacity Planning
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Partner
Key Innovations and use cases in inventory management and material
valuation
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Partner
Inventory Management: Real use case of operations before S/4 HANAE.g. International Car Manufacturer
7Car Models
550Daily output per model
3,500BoM materials
per model, on 10 levels, 60% common parts
480Trucks per day
>15,000,000Material movements per day
Business Pain
• Locked tables prevent movements
• No parallel postings
• High volume back flush = batch jobs and bulk postings
– with delay
• Multiple tables, inconsistent information
• Auto ID technology > queue
• No real-time transparency on stock and on exact
material flow
• No actual costs and intercompany profit transparency
• Need to split system load into multiple distracted
systems
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Partner
S/4HANA Simplifying the data model :
SIMPLE DATA MODEL THROUGHPUT INCREASE
Busin
ess S
uite
MATDOC ACDOCAMaterial
PricesMaterial
MBEW
OBEW
QBEW
OBEW
MBEWH
OBEWH
QBEWH
OBEWH MLHD
MLPP
MLIT
MLCR
Document
MLPPF MLCRF
CKMLPP CKMLCR
Totals
CKMI1
Index
GLPCA
ZZFISLA
FAGLFLEXA
GLFUNCA
COFIS
BKPF
BSEG
COBK
COEPANEK
ANEP
GLPCT
ZZFISLT
FAGLFLEXT
GLFUNCT
COSP
COSS
COFIT
BSIMBSID
BSAD
BSIK
BSAK
BSIT
BSAT
BSIS
BSAS
MARD
MARC
MSTQH
MSTEH
MSTBH
MSSQH
MSSAH
MSPRH
MSLBH
MSKUH
MSKAH
MKOLH
MCHBH
MARDH
MARCH
MSTQ
MSTEMSTB
MSSQ
MSSA
MSPR
MSLB
MSKU
MSKA
MKOL
MCHB
MKPF
MSEG
Totals tables
Document
Totals
Totals
Indices
Documents
BKPF
PRINCIPLE OF ONE
Inventory Mgmt.(Quantities)
Inventory Mgmt.(Valuation via „MBEW)
Material Ledger(multi GAAP, multi currency)
Accounting
Master Data Inventory Mgmt(Quantities)
Material Ledger(multi GAAP, multi currency)
Accounting
VBAK LIKP VBRK
LIPSVBAP VBRP VBFA
VBUK
VBUP
VAPMAVAKPA
VLPMAVLKPA
VRPMA
VBOX
S066
S067EIKP
EIPO
NAST
Sales and Distribution
VRKPA
Primary
Document tables
Index
tables
Sales and Distribution
Status tablesLIS
tables
Rebate index Output mgmt
Export/import
tables
VBAK LIKB VBRK
LIPSVBAP VBRP VBFA
History tables
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Partner
Material Valuation in S/4HANA
Actual Costing
Optional enablement for selected
valuation areas
To enable inventory valuation at
actual costs AND improved
throughputs, customers can use
actual costing (based on ML) using
a moving average price.
Allows for detailed material flow,
revaluation and actual cost
components (all steps at any time).
Realtime Insights Analyze & Optimize the Inventory
Flow
Use real-time KPI‘s (Inv. turnover)
Predict/ Simulate
Up to 3 currencies and 3 valuation methods Tracking historic rates in material master
Local legal valuation & e.g. hard or trading
currency
Standard Price (S-Price)
Moving average Price (V-Price)
Actual Costing (new)
Transferprices* Legal Costing
Corporate Costing (w/o
intercompany)
Transfer prices (political)
¥$€
Digital Core
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Partner
Inventory Management: Simplifications in the material movements
transactions (MB…)
MB01 MB02
MB03
MB04 MB05
MB0A
MB11 MB1A
MB1B
MB1C MB31
MBNL
MBRL MBSF
MBSL
MBST MBSU
17Transactions
removed
MIGORemains
S/4 HANAECC
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
Inventory Management
Real-time alerts of supply problems
System generated proposals to resolve problems
Improved company-wide real-time visibility of stock
Removal of “locking” constraint allows continuous update of material movement in high volume environments – transaction throughput of goods receipts and issues is radically increased
More timely and detailed inventory postings lead to higher accuracy of the inventory
Move from batch processing to real-time processing
Decreased safety net (e.g. reduce buffers) due to increased transparency
Support smaller lot sizes passing through the logistic operations
Inventory Management
(Stock Valuation)
Simplified valuation method with valuation managed in single table removing multiple aggregates and table locking bottlenecks so parallel postings are possible
Valuation analytics carried out on primary data with clear separation between master data and transaction data
No table joins results in increased evaluation speed allowing greater insight into actual costs in real-time across business entities
S/4HANA Enterprise Management 1511 Inventory Management Key Benefits
Use Cases enabled by S/4 HANA Business Processes improvements
Agenda
25/03/2016 SAPience.be USERday 2016 14
1. S/4 HANA Materials & Operations Management 1511 Intro
2. S/4 HANA M&OM : Inventory Management & Material Valuation
3. S/4 HANA M&OM : Procurement & Sales Order Management
4. S/4 HANA M&OM : MRP , ATP & Backorder Processing
5. S/4 HANA M&OM : Master Data Maintenance & Capacity Planning
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Partner
Demo purchasing analysis
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16
SAP S/4HANA Enterprise ManagementFiori Apps for Procurement
Transactional Analytical
Insight to Action
Visual overview over a complex topic
for monitoring or tracking purposes
Task-based Access
Access to tasks like change, create, or entire
processes with guided navigation
1. All Approvals via Fiori
Inbox (Purchase
Requisition, Purchase
Order, Contract and
Supplier Invoice)
2. Create Purchase
Requisition*
3. My Purchase
Requisitions*
4. Confirm Goods and
Services*
5. Manage Purchase
Requistions
6. Manage Purchase
Orders (incl. Create)
7. Manage Purchase
Contracts*
8. Manage Sources of
Supply
9. Manage Supplier
Invoices (incl. Create)
10.My Purchasing
Document Items
11.Supplier Invoice List
12.Post Goods Receipt for
Purchase Order
13.Evaluate Suppliers*
14.Evaluation Responses*
15.Supplier Evaluation
Response*
1. Purchase Order Value
2. Non-Managed Spend
3. Unused Contracts*
4. Contract Expiry*
5. Off-Contract Spend*
6. Contract Leakage*
7. Purchasing Spend
8. Invoice Price Change
9. Purchase Order
Average Delivery
Time
10.Spend Variance
11.Overdue Purchase
Order Items
12.Purchasing Group
Analysis*
13.Supplier Evaluation
On-time delivery*
14.Supplier Evaluation
Price Variance*
15.Supplier Evaluation
Quantity Variance*
16.Supplier Evaluation*
Object Pages with Contextual
Navigation
Search and Explore
View on essential information
about an object and contextual
navigation between related objects
1. Purchase Requisition
2. Purchase Requisition Item
3. Purchase Order
4. Supplier Invoice
5. Purchasing Info Record
6. Purchase Contract
7. Purchase Contract Item
8. Purchasing Category
9. Supplier
10.Material
* On Premise Only
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17
Three Step Shopping
Key Message
Unique Value of S/4HANA
The S/4HANA requesting process allows employees to search and request goods / services in a cross-catalog search with a consumer-
grade user experience
• Possibility to load internal
and external catalog
content into HANA
• HANA based cross-catalog
search
• Shopping Cart + Purchase
Requisition simplified in
one business object
• Highly integrated
requesting process into the
SAP S/4HANA processes
and existing master data
• One user experience for
the whole process
SAP S/4HANA Enterprise ManagementComprehensive Self-Service Requisitioning
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18
Supplier Management
Increased insight to purchase categories and supplier portfolio
Holistic view across strategic and operational activities allowing instantaneous vendor tracking against real-time KPI updates
Sourcing and Contract Management
All available supply sources immediately visible to facilitate best price from best vendor
Dynamic and flexible searches across contract worklists with capability to navigate directly to Contract and Supplier Factsheets
Insight to Action capabilities to support critical activities such as contract renewal
Advanced analytics to identify discount and pricing opportunities
Improved PO quality reducing downstream issues
Reduced operating costs through real time, self service operational procurement supported by real-time data analysis and mobile support
S/4HANA Enterprise Management 1511 Procurement Key Benefits
Use Cases enabled by S/4 HANA Business Processes improvements
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19
S/4HANA Enterprise Management 1511 Procurement Key Benefits
Use Cases enabled by S/4 HANA Business Processes improvements
Good, Timely Decision Making
Advanced, real-time analytics.
Fiori Apps providing user-friendly interface.
Improved user-satisfaction to reduce/eliminate “off-line” reports
Invoice & Payables Management
Flexible search in Supplier Invoice List with integration to detailed factsheets.
Improved detection of invoice issues with rapid resolution
Seamless integration with Ariba Network
Operational Procurement
All purchasing can be performed in a single system with harmonised User Interface for direct materials, indirect materials
and services.
Procurement Factsheets with links to follow-on activities.
Improved spend compliance
End-to-end collaboration on order fulfilment using the Ariba
Network
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 20
Key Innovations and use cases in Order Management and Billing
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
Contract Management
Streamlining system support when negotiating and approving long-term sales agreements.
Improved monitoring of sales contracts throughout the lifecycle.
Facilitates rapid intervention when a customer is dissatisfied or contracts are up for renewal.
Deeper insights into contract performance .
Data Maintenance Simplified data model to deliver a single, company wide version of
sales master data to maximize consistency.
Use Cases enabled by S/4 HANA Business Processes improvements
Sales Order Management
Improved Sales productivity through seamless order management
from quote to shipment and from billing to booking revenue
Improved customer retention by enhancing the flow of information
on order status and tracking
Improved user interface through Fiori Apps and the Order
Management Cockpit
Accelerated complaints and returns management reduce
operational costs and increase customer satisfaction
S/4HANA Enterprise Management 1511 Sales Order Management Key Benefits
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22
Inventory Management (Shipping)
Increased user efficiency through Order Fulfilment Cockpit to speed process stages and issue identification
Central point to initiate execute and monitor the shipping process
Internal and external collaboration with SAP JAM
Receivables Processing
Automated, specialised functions for a broad variety of billing and
invoicing scenarios, to reduce billing errors, decrease DSO and
improve overall cash flow while lowering administration costs
Analytics and Evaluation Role based KPI driven Fiori Apps
Use Cases enabled by S/4 HANA Business Processes improvements
S/4HANA Enterprise Management 1511 Sales Order Management Key Benefits
Agenda
25/03/2016 SAPience.be USERday 2016 23
1. S/4HANA Materials & Operations Management 1511 Intro
2. S/4HANA M&OM : Inventory Management & Material Valuation
3. S/4HANA M&OM : Procurement & Order Management
4. S/4HANA M&OM : MRP , ATP & Backorder Processing
5. S/4HANA M&OM : Master Data Maintenance & Capacity Planning
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Partner
Key Innovations and use cases in MRP
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Partner
Common issues in MRP in current systems….
Detecting the Most Critical Issues
A material planner is responsible for hundreds of materials
Challenged by dozens of exceptions a day , time is limited
Focus on the most important and urgent issues
Manually intensive analysis of the stock requirements list
Additional information from multiple sources required
Batch-Driven and Multiple ERP Transactions
Resource & data-intensive (long execution times)
Manual changes to Planned Orders, Production Orders, etc.
MRP plan
immediately out-
dated
Poor visibility
Poor Decision
Making
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Partner
MRP in SAP S/4HANA Enterprise Management 1511
Real-time Information
Enterprise-Wide
Visibility
Consumer-Grade User Experience
MRP S/4 HANA
Solution Recommendation Highlighted Issues
Time-Critical
Perspective (Graphs)
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 27Internal
Live Demo on S/4 HANA Enterprise Management 1511 : MRP
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Partner
Business Benefits
» Fulfill an order on time and
in the desired quantity using
different kind of checks for
different business scenarios
» Perform automatic back-
order processing
» Reduce inventory carrying
cost
Business Challenges
» Difficult to fulfill customer orders on
time with the proper quantity
» Inability to 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
SAP S/4HANA Capabilities
» SAP HANA-enabled mass
product availability check for
sales-, planned- and production-orders.
» ATP check for all items of an order at once
» Significant performance
improvements for releasing large
production orders
» Data and process innovations in Backorder
processing and Sales
Product Allocation (planned innovations)
Key Innovations and use cases in ATP
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 31Internal
Availability check : Comprehensive stock level and demand
overview
Enables immediate detection of material shortages based on real-time data.
Considers multiple shortage definitions (=rules that define how shortages are determined)
Shows all supplies and demands in chronological order and determines available stock for each day.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 32Internal
Available to Promise : further integration of APO G-ATP in S/4HANA
ERP
Data replication via CIF
APO Code Pushdown to HANA
SAP S/4HANA
…
Product Availability Check
Product Allocation
Rescheduling
Substitutions
Etc.
Product Availability Check
Product Allocation
Rescheduling
Substitutions
Etc.
Product Availability Check
Product Allocation
Rescheduling
Substitutions
Etc.
Current functional model With SAP S/4HANA Materials
Management & Operations
Agenda
25/03/2016 SAPience.be USERday 2016 33
1. S/4 HANA Materials & Operations Management 1511 Intro
2. S/4 HANA M&OM : Inventory Management & Material Valuation
3. S/4 HANA M&OM : Procurement & Order Management
4. S/4 HANA M&OM : MRP , ATP & Backorder Processing
5. S/4 HANA M&OM : Master Data Maintenance & Capacity Planning
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Partner
Simplification of vendor and customer master data
FD01 FD02 FD03
FD05 FD06 FD00
FK01 FK02 FK03
FK05 FK06 FK08
MAP1 MAP2 MAP3
MK01 MK02 MK03
MK05 MK06 MK12
MK18 MK19 V-03
V-04 V-05 V-06
V-08 V-09 V-11
V+21 V+22 V+23
VAP1 VAP2 VAP3
VD01 VD02 VD03
VD05 VD06 XD01
XD02 XD03 XD05
XD06 XD07 XK01
XK02 XK03 XK05
XK06 XK07
54Transactions
removed
BP
S/4 HANAECC
1Transaction
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Partner
Material field length MATNR CHAR 18
Material field length MATNR CHAR 40
ECC
Material number field extension from 18 to 40 characters
S/4 HANA
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Partner
SAP S/4HANA Enterprise Management : Capacity planning related
Business Benefits
» Fulfill an order on time and in the
desired quantity using different
kind of checks for different business scenarios
Business Challenges
»On-time delivery
performance
»Days in inventory
»Revenue loss due to stock-
outs
»Adapting to changing plant
conditions
SAP S/4HANA Capabilities
» PP/DS side-by-side to SAP S/4HANA
» Integrated Production Planning and
Detailed Scheduling (PP/DS) in SAP
S/4HANA (planned innovations)
» Advance planning and
optimization and production
planning and detailed scheduling
» Live cache-based, finite-capacity
planning as an integral part of
SAP HANA, requiring just one
database to manage
» Advanced analytics
» One materials requirements
planning
» Simplified data integration
» Intuitive maintenance of master
data and integration models
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 37Internal
Comprehensive Plan to Produce in ONE System
Sales Order Entry
MRP Run +Constrained
Planning
Interactive Planning
Release to Production
Production Execution
Monitor and
Control
Planned Improvements
» UI Harmonization
» CIF Simplification
» Master Data
Harmonization
» Analytics
APO-PP/DSHANA Platform
incl. Live cache
ERPHANA Platform
incl. Live cache
CIF
HANA Platform incl. Live cache
PP/DS
ERP
Current functional model Planned
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 38
Production Planning
Much faster MRP runs across all Plants – performance increase up
to 10x with a reduced memory footprint by factor 5 – allowing ad-
hoc planning and scenario planning
Demand information is propagated faster through the supply chain
Increased visibility of product availability (planned and actual)
Improved visibility and prioritized view of material flow issues
Real-time alerts and increased decision support (system generated
proposals) to aid pro-active decision making
Flexible tailoring of available capacities and receipts to meet
required quantities
Constraint based planning, using various heuristics and optimizers
by bringing PP/DS on ERP, reducing integration efforts and
allowing seamless master data & UI harmonization (planned)
Reduced TCO due to inclusion of PPDS functionality in Core ERP
running on HANA database and removal of integration requirement
for master data of material and work center resource
Increased visibility of bottlenecks
Improved ability to respond quickly to new demands
Use Cases enabled by S/4 HANA Business Processes improvements
S/4HANA Enterprise Management 1511 Production Order Management Key
Benefits
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 39
Production Execution
Advanced, real-time analytics allowing fast, ad-hoc queries
Real-time alerts to ensure prompt corrective action
Improved visibility of current supply and demand elements
across all company entities (if all run on one instance)
Capability to plan “on the fly” given changing circumstances to
identify impact on customer and determine best course of action
Use Cases enabled by S/4 HANA Business Processes improvements
S/4HANA Enterprise Management 1511 Production Order Management Key
Benefits
THANK YOU!
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Daniel Karsai
Customer Solution Manager, SAP Belux