transform supply chain on sap s/4hana

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CUSTOMER Markus Rosemann Head of Digital Logistics, SAP October 17 th , 2017 Transform Supply Chain on SAP S/4HANA Patrick Crampton-Thomas Head of Digital Response and Supply, SAP

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Page 1: Transform Supply Chain on SAP S/4HANA

CUSTOMER

Markus Rosemann

Head of Digital Logistics, SAP

October 17th, 2017

Transform Supply Chain on SAP S/4HANA

Patrick Crampton-Thomas

Head of Digital Response and Supply, SAP

Page 2: Transform Supply Chain on SAP S/4HANA

2INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Why SAP S/4HANA?

The Next Generation, Intelligent ERP

for a Digital World

Immediate

Empowering business users with

insights to act in the moment

Intelligent

Beyond automation,

to predictive suggestion

Integrated

Not only between your departments,

but connected to the world

Page 3: Transform Supply Chain on SAP S/4HANA

3INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA – A complete Suite

MARKETING & COMMERCE

HUMAN RESOURCES MANUFACTURING SUPPLY CHAIN

SALES

FINANCE

SERVICE

SOURCING & PROCUREMENT

ASSET MANAGEMENT

Digital Core Enterprise Management

RESEARCH & DEVELOPMENT

Products

Suite

Products

Suite

INDUSTRIES

• Supplier Collaboration

• Business Network

• Guided End-User Buying

• External Workforce Management

• Core Human Resources And Payroll

• Talent Mgmt.

• Time and Attendance Mgmt.

• Human Capital Analytics

• Asset Operations and Maintenance*

• Environment, Health, and Safety

• Enterprise Portfolio and Project Mgmt.

• Commercial Project Mgmt.

• Compliant Product Lifecycle Mgmt.*

• Service Mgmt. *

• Service Master Data Mgmt.*

• Service Parts Mgmt.*

• Service Agreement Mgmt.*

• Maintenance Mgmt. • Product Development and Project

Control

• Product Engineering

• Financial Planning and Analysis• Accounting and Financial Close• Treasury Mgmt.• Receivables Mgmt.• Invoice Mgmt. and Accounts Payable• Real Estate Management

• Accounting and Closing Operations

• Accounting

• Cost Mgmt. and Profitability

Analysis

• Time Recording• Operational Purchasing

• Collaborative Sourcing and Contract Mgmt.

• Invoice and Payables Mgmt.

• Supplier Management

• Procurement Analytics

• Production Operations

• Quality Mgmt.

• Inventory and Basic Warehouse

Mgmt. *

• Production Planning

• Order and Contract Mgmt.

• Sales Planning and Performance

Mgmt. (ICM)• Subscription Billing and Revenue

Mgmt. (“BRIM”)

SAP Hybris Service Cloud

SAP Hybris Service Engagement Center

SAP Hybris Commerce

SAP Hybris Marketing CloudSAP Hybris Sales Cloud

• Extended Warehouse Mgmt.

• Advanced ATP

*(partially) Compatibility Scope

• Integrated Business Planning

• Global Batch Traceability

• Extended Warehouse Mgmt.

• Transportation Management

• Responsive Manufacturing (ME, MII,

QIM, VE)

• Production Operations (MII, QIM)

• Digital Operations for Manufacturing

(MII)

• Digital Asset Network • Digital Operations for R&D

• Governance, Risk, and Compliance

for Finance

• Financial Services Network

• Constrained production planning

• Planning and Scheduling

160countries

38languages

25industries

Page 4: Transform Supply Chain on SAP S/4HANA

4INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Customers adopt S/4HANA across all Industries

Adoption across ALL Industries

Adoption across ALL Industries

2'600+Active Customer Projects

6’300+Licensed Customer Scenarios

980+Live Customers

as of August 2016

Page 5: Transform Supply Chain on SAP S/4HANA

5INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

User Experience for SAP S/4HANASAP Fiori Design Evolution

Me-area NotificationsWorkspace

Me-Area

Replacing former shell header menu

Shows recent activities now

Notifications

Shown in separate viewport

that opens on clicking repective icon

in shell header

Links

Option to show apps

as links in a tile group

Anchor bar navigation

Replacing group menu

Shell header

Revised, launching notification and

me-are viewports and Co-Pilot window.

Provides navigation menu when app is

launched by clicking on title

Page 6: Transform Supply Chain on SAP S/4HANA

6INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA – Natively built for the Cloud

SAP S/4HANA offers the right solution

Customers benefit from the #1 ERP. Depending on their requirements

either from cloud ERP, on-premise ERP or from hybrid architectures.

SAP S/4HANA Cloud and SAP S/4HANA are powered by in-memory

technology and based on the same code line. Both come with digital

age user experience for productivity at every level of an enterprise.

Considerations for selecting the right S/4HANA solution:

• Scope of business functionality incl. regulatory, industry, and regional

requirements

• Customization options

• IT Infrastructure

• Innovation cycles

• Deployment / upgrade efforts

• Commercial models

On-PremiseCloud

SAP S/4HANA

One Code Line

Page 7: Transform Supply Chain on SAP S/4HANA

7INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Extend the Digital Core with the Next Generation 2-Tier Enterprise

• Rapid time to value and lower

cost to maintain

• Taking real-time insights into

action

• Process consistency

• Easy to change,

simple to extend

• Easily adapt innovationsC

lou

d o

r

On

-Pre

mis

eC

lou

dMove Divisions to the Cloud

Capa

bili

ties

LOBs

Page 8: Transform Supply Chain on SAP S/4HANA

8INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Digital Supply Chain Innovation Pillars

SAP S/4HANA

• Digital Product Innovation

• Digital Manufacturing

• Digital Operations

• Digital Logistics

SAP Integrated

Business Planning

• Digital Business Planning

• Digital Response & Supply

Management

SAP Ariba

• Strategic Sourcing

• Direct Material

Collaboration

SAP Leonardo

• Connected Products

• Connected Assets

• Connected Fleet

Plan

Produce

Deliver

Design

Respond

Operate

SAP HANA Platform & SAP S/4 HANA

Transport Management

Extended Warehouse Management

Track and Trace

Inventory

Demand Response and Supply

Sales & Operations

Enhanced User Experience

Supply Chain Control Tower

SAP HANA Platform

Discover Connect Collaborate

Ariba Network

BUY SELL

MANAGE

CASH

Page 9: Transform Supply Chain on SAP S/4HANA

9INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA 1511 1610 1709 releases (1709 planned 15th Sept 2017)

Innovations for Digital Supply Chains

R&D, Engineering and

Digital ProductsEffective Order Management and

Billing

Integrated Extended Warehouse

Management

Demand Driven

Integrated Quality

Management

Simplified Procurement

Real time Inventory Management

& Material Valuation

Accelerated Material

Requirements Planning

Advanced Availability to Promise

Optimized Portfolio and Project

Management

Embedded Software in

Product Development

Integrated advanced Production

planning and SchedulingTransportation Management

Industry to Core

(DIMP, Oil, Retail)

Manufacturing Operations

Cloud Scope for Manufacturing

Companies

Asset Operations

Page 10: Transform Supply Chain on SAP S/4HANA

10INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Back Order Processing – First released 1610Priority based Back Order Processing and Allocation Management: first released 1610

Supply assignment run (ARUN): added 1709

Win

Gain

Redistribute

Fill

Lose

Confirm

as requested

Shall be fully confirmed

in time

e.g. The most important

customer orders

Improve if

possible

Shall keep the

confirmations and

should gain if possible.

e.g. Orders that cannot

lose the earlier

confirmations

Redistribute

and

Reconfirm

Might gain, Might lose.

e.g. Orders that can

lose confirmations

Delete

confirmation,

if required

Shall not gain anything,

should keep confirmation,

but may also lose.

e.g. Non-priority customer

orders

Delete

confirmation

Shall lose all confirmations

e.g. orders under credit

block

‘ARUN’ supply assignment

Prioritise supply categories with rules

Firm pegging demands to supply

Page 11: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

11CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Demand-driven ReplenishmentComponent of SAP S/4HANA for extended planning

Is a solution capability with the most modern planning philosophy to support highest service levels at lowest possible inventory along all

levels of the bill of material.

▪ Addresses the challenge of having the right quantity

of the right product at the right time at the right

place for product centric organizations.

▪ Customers benefit from improved customer service

with significant lead time and inventory reductions

▪ Positions inventory buffers strategically throughout

supply network, which are dynamically sized, and

replenished on a consumption-based pull model

▪ Based on the Demand Driven MRP (DDMRP) ©

methodology from the Demand Driven Institute

Back

Planning &

Analytics

Demand Driven

Manufacturing

Customer Demand

Key Capabilities

Demand Driven

Page 12: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

12CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Demand-Driven ReplenishmentThe planned End-to-End Process Flow in S4HANA

1

2

3

4

5

Replenishment

Planning

Buffer Level Management(Operational)

Buffer Positioning(Strategic)

Replenishment

Execution

Individualized

DD with buffer

Ad-hoc Prod.

Lead time Var(LT)

Safety stock

Reorder point

t

MaterialStock/

Stock Level

Stock+

Ordered

Proposed

order qty

FIO-NAV-0815 3 13 30

FIO-PST-1501 6 16 15

FIO-MST-3006 55 135 0

FIO-PRD-0807 22 56 0

FIO-NAV-0101 23 23 127

FIO-NAV-0404 44 44 26

FIO-MST-0821 25 25 0

FIO-PRD-0822 88 88 0

Lead Time

Average Daily Usage

Classification

Analytics(incl. Basis for Feedback)

SAP Labs Preview

SUBJECT TO CHANGE

Page 13: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

13CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Demand-Driven Replenishment Solution Overview

Business Applications with User Interaction Configuration & Setup Apps

2 3 4 1 1 25

Fiori Launchpad

Mapping to the End-to-End Process

Review and adopt the

system’s buffer level

proposals

Review the current

planning situation

based on the net flow

position

Review the current

execution situation

based on the on-hand

stock status

Classify products to

identify possible

decoupling points and

to prepare buffer profile

assignment

Maintain MRP type D1

to define buffers on

product plant

combination

Calculate decoupled

lead time and LT

classification to

prepare buffer

calculation

Calculate buffer level

proposals for manual

(and automated)

adoption

SAP Labs Preview

SUBJECT TO CHANGE

Page 14: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

14CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Prepare Buffer PositioningProduct Classification for Demand-Driven Replenishment

SAP Labs Preview

SUBJECT TO CHANGE

Page 15: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

15CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Buffer Proposal DetailsBuffer Levels

SAP Labs Preview

SUBJECT TO CHANGE

Page 16: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

16CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Buffer Proposal DetailsOn-Hand Performance

SAP Labs Preview

SUBJECT TO CHANGE

Page 17: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

17CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

S/4HANA for Variant Configuration

▪ New SAP HANA optimized configuration engine,

with algorithms designed together with Fraunhofer

Institute Kaiserslautern

▪ Seamless integration between S/4HANA and Hybris

▪ One Configuration Model for Configure Price

Quote processes.

▪ Mobile-first, 3D-first User Experience

▪ Integrating Sales, Engineering and

Manufacturing

▪ High performant and efficient Fiori UI, with

simulations

▪ Embedded Analytics for configuration and

classification data

Back

R&D and

Manufacturing

Configuration and

Engineering

Sales Configure,

Price Quote

Key Capabilities

SAP S/4HANA for advanced variant configuration provides an efficient set of enhanced

capabilities to define, develop, sell, manufacture and deliver individualized products

R&D, Engineering and

Digital Products

Page 18: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

18CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Seamless integration: “One Configuration Model”

Configure, Price,

Quote (CPQ)

Variant Configuration

(Product Life Cycle Management)

Digital Configuration Life Cycle

Highlights:

• Integrated configurator as part of the Make-to-Order

scenario incl. e-commerce

• Seamless configuration, model simulation & tracing

• Ensure consistency of sales configurations

• Close the process gaps between engineering and

variant configuration

• Analyze, adapt, and sell configured products

• Execute make-to-order process across

engineering, sales, and manufacturing

• Integration towards Hybris CPQ

Integrated CPQ and S/4HANA covers the entire digital configuration life cycle

Planned Innovations

Manufacturing

ServiceAsset

Management

SalesEngineering

Page 19: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

19CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital Configuration Life Cycle - Personas and their needs in

focus

ASHLEYProduct Manager

JEFFProductConfigurationModeler

JuliaSalesRepresentative

▪ What are our most profitable products and services?

▪ Which options render highest revenues and improve customer satisfaction?

▪ Which options create quality issues and cost to much?

▪ How successful are we with special customer requirements? Customer satisfaction, pricing, profitability, planned delivery dates?

▪ Wide product range X products complexities = complex configuration models

▪ In addition: services, electronics and software-based options

▪ Sync with the needs of Engineering, Product Mgmt., Procurement, Production and Sales.

▪ Flexible process support?

▪ Avoid or quickly fix inconsistencies on sales and production orders

▪ Fulfill customer’s individual needs and requirements + reasonable price and appropriate delivery time = customer will always come back

▪ Render a competent and informed service. Receive automated support and intelligent guidance from sales tools.

▪ Need to create sales orders fast and without errors and inconsistencies at any time.

Page 20: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

20CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA Variant Configuration

SAP S/4HANA for advanced variant configuration provides an efficient set of enhanced

capabilities to define, develop, sell, manufacture, deliver,

and maintain individualized products

Advantages / Value:

• Efficient configuration of sales orders & more

efficient modeling

• Product complexity management focus on data

quality and consistency

• Business transparency for configurable products

• Coordination and collaboration between sales and

engineering

• Simplified, Efficient organization and process

support for engineer-to-order use cases

New

Configuration

Engine

Simulation

Environment

Sales

ConfiguratorClassification

Manufacturing Service Asset ManagementSalesEngineering

Embedded

Analytics

UX Experience

Page 21: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

21CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Advanced Variant Configuration – Highlights 1708/1709

• Integrated configurator

• State-of-the art engine

• Advanced filtering

• Configuration management

• Undo / Redo

• Templates / User roles

• Hybris CPQ integration

Sales Configurator

Embedded Analytics

• Embedded Analytics for sales and

production scenarios

• Segmentation on characteristic and

value level

• Classification

Simulation Environment

• SAP Fiori role-based simulation

environment

• Highly-efficient process-oriented

screen arrangement

• Evaluation also for incomplete

configurations

• Basic trace management

• Parallel evaluation, results, trace

New Configuration Engine

• New state-of-the-art algorithms designed together with

Fraunhofer Institute Kaiserslautern, Germany

• New engine performance optimized for SAP HANA, leveraging

HANA capabilities

• More precise restrictions of values during configuration valuation

• All constraints will be take into account with higher performance

• Supporting negative variant tables

• Engine architecture design prepared for future syntax

enhancements

Page 22: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

22CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA for engineering is a solution capability extending the S/4HANA digital core to bridge the gap between engineering and manufacturing by facilitating

digital collaboration of manufacturing master data, design structures handovers, process planning and intelligent change

management.

.

▪ Bridge the gap between product design and

manufacturing

▪ Hand over an engineering bill of material to a

manufacturing bill of material

▪ Define routings and component allocations and

author work instructions

▪ Manage changes coming from engineering or

manufacturing

▪ Analyze change impact and support change

implementation

▪ 3D visual support for BOM items and animated work

instructions

Key Capabilities Product

Engineering

Manufacturing

engineering

Manufacturing

Plant

R&D, Engineering and

Manufacturing Integration

Page 23: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

23CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

R&D, Engineering and

Manufacturing Integration

Page 24: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

24CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA for production operations is a solution capability extending the S/4HANA digital core to the shop floor to manage shop floor operations such as production

orders and operations with automated monitoring as well as product data collection for root cause analysis as well as tracking,

tracing and genealogy.

▪ Monitor production orders and operations

▪ System-optimized monitoring of all shop floor

operations with automatic issue detection, root

cause analysis and decision support

▪ Manage adjustments to existing production orders

and related master data

▪ Manage the work queue as well as get all

information necessary to streamline operations

▪ Tracking and tracing of individual parts and part-

specific genealogy by shop floor item

Key Capabilities Extended production

operationsManufacturing

/Product

Engineering

Track, Trace,

Genealogy

Agile Manufacturing operations

Page 25: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

25CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Monitor Capacity Utilization

Navigation to

Planning Table or

Scheduling Board

List of

Resources

Utilization

Chart

Page 26: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

26CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Capacity Utilization – Page Overview

Order Types

Chart

Details of a

section

Page 27: Transform Supply Chain on SAP S/4HANA

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

27CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Capacity Utilization – Shift Table

Edit ModeChange

Utilization %

Change

Number of

Capacities

Shift Actions

Change

Shift Time

Page 28: Transform Supply Chain on SAP S/4HANA

© 2017 SAP SE or an SAP affiliate company. All rights reserved. 28Customer

Side panel, operation details

from one operation

Page 29: Transform Supply Chain on SAP S/4HANA

© 2017 SAP SE or an SAP affiliate company. All rights reserved. 29Customer

Improved zoom levels

Page 30: Transform Supply Chain on SAP S/4HANA

30INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA 1511 1610 1709 releases (1709 planned 15th Sept 2017)

Innovations for Digital Supply Chains

R&D, Engineering and

Digital ProductsEffective Order Management and

Billing

Integrated Extended Warehouse

Management

Demand Driven

Integrated Quality

Management

Simplified Procurement

Real time Inventory Management

& Material Valuation

Accelerated Material

Requirements Planning

Advanced Availability to Promise

Optimized Portfolio and Project

Management

Embedded Software in

Product Development

Integrated advanced Production

planning and SchedulingTransportation Management

Industry to Core

(DIMP, Oil, Retail)

Manufacturing Operations

Cloud Scope for Manufacturing

Companies

Asset Operations

Page 31: Transform Supply Chain on SAP S/4HANA

31INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA for transportation management

SAP S/4HANA Supply Chain for Transportation Management provides best-of-breed transportation functionality (based on SAP

Transportation Management) within SAP S/4HANA, including comprehensive process and multimodal coverage as a holistic

Transportation Management Solution

• Shipper industries

• Large and midmarket enterprises

• Domestic and international transportation

• Inbound and outbound freight management

• Simple and complex high-volume

operations covering

• Order management

• Planning

• Freight execution

• Freight costing

• Analytics and reporting

Key Capabilities

Capacity and

Demand PlanningOrder Management

& Freight Planning

Freight Execution

and Monitoring

Freight

Settlement

Tracking and Reporting

Transportation Management

Page 32: Transform Supply Chain on SAP S/4HANA

32INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA Supply Chain for Transportation ManagementEnd-to-end processes for shippers

Tracking & Reporting

Order

Management

Transportation

Execution

Freight Costing &

Settlement

S/4HANA Supply Chain for Transportation Management

Transportation Management embedded in SAP S/4HANA

• Additional deployment option for TM: based on feature scope contained in

SAP TM 9.4 and focused on shippers

• Provide user interface within SAP S/4HANA

• Harmonize concepts for business partner, location and product master data

• Working with real-time embedded analytics

• Provide system and process integration in SAP S/4HANA Enterprise

Management

Transportation

Planning

Analytics &

Reporting

Page 33: Transform Supply Chain on SAP S/4HANA

33INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA Supply Chain for TM – Overview

Analytics and

Collaboration

Order

Management

Transportation

Planning

Transportation

Execution

Freight Costing

and Settlement

Analytics and

Reporting

Page 34: Transform Supply Chain on SAP S/4HANA

34INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA Supply Chain for TM – Order Management

Analytics and

Collaboration

Order

Management

Transportation

Planning

Transportation

Execution

Freight Costing

and Settlement

Analytics and

Reporting

• Integration with

order and delivery

data in SAP

S/4HANA

• Order and booking

management

• Personal work lists

• Schedule

management

Business Benefits• Improve the efficiency of order and process management

• Generate dynamically optimized routing proposals based

on business rules

• Minimize freight costs

• Enhance customer service

Page 35: Transform Supply Chain on SAP S/4HANA

35INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Transportation Demand

• Sales orders

• Purchase orders

• Stock transport orders

• Returns

• Inbound / Outbound deliveries

• Scheduling agreements

Holistic integration and management of all transportation demand

Embedded order data in Transportation Management

Full cross-system order access and life-cycle status visibility

Embedded Order-to-Cash / Procure-to-Pay Processes

Order ManagementIntegrated Transportation Demand

SAP S/4HANA Enterprise Management

Page 36: Transform Supply Chain on SAP S/4HANA

36INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA Supply Chain for TM – Transportation Planning

Analytics and

Collaboration

Order

Management

Transportation

Planning

Transportation

Execution

Freight Costing

and Settlement

Analytics and

Reporting

• Manual and

automated

planning and

dispatching

• Routing, resource,

and

carrier selection

• Order tendering

• Dangerous goods

management

• Planning of parcels

Business Benefits

• Improve resource utilization and carrier selection to

reduce transportation costs

• Handle huge volumes of data thanks to automated

planning processes

• Combine decentralized local business views to identify

synergies

• Achieve on-time delivery

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• All freight demand & resources

• All geographies & modes

• Carrier selection and tendering

• Driver management

• Dangerous goods planning

• Trade regulation checking

• Powerful & flexible planning

strategies

• Extensive rules & constraints

• Automated Load Planning &

Vehicle Space Optimization

• Pallet / Package building

• Map based resource tracking

• Dynamic replanning

Freight planning & tenderingAdvanced Freight Planning & Optimization

Holistic

Advanced

Compliant

Optimal transportation planning

& resource utilization

• Manual, map-based & automated planning

• Transportation proposal, vehicle scheduling & routing optimization

• Rail & Parcel planning, Backhaul planning

• Resource based planning on Gantt Chart

Effective

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• Visibility on usage and availability of your own fleet (trucks, trailers)

• Interactive resource-based planning by drag and drop (at freight unit level) with context determination

• Real-time planning in the cockpit by adjusting plan based on reported events

• Gantt chart and map integrate geographical and time perspective

• Rail planning in Gantt chart

• Schedule based planning in Gantt chart

Freight planning with Gantt Chart Manual planning and interplay with map

Page 39: Transform Supply Chain on SAP S/4HANA

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SAP S/4HANA Supply Chain for TM – Transportation Execution

Analytics and

Collaboration

Order

Management

Transportation

Planning

Transportation

Execution

Freight Costing

and Settlement

Analytics and

Reporting• Extended

warehouse

integration for

execution

• Logistics execution

• Execution

monitoring and

event tracking

• Capacity

monitoring

• Transportation

print documents

• Trade regulation

compliance

(using the SAP

GTS application)

Business Benefits

• Improve cargo handling

• Achieve faster, more dynamic, and

responsive logistics execution

• Reduce shipping costs with a streamlined

process and maximized efficiency

Page 40: Transform Supply Chain on SAP S/4HANA

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Full process, shipment, Event mgmt. & status visibility

Integrated Customs/

Warehouse Process

End-to-End Shipment

TrackingEfficient

Cargo Management

Comprehensive Freight

Document Management

Real-time

Event Management

Freight execution & monitoringEfficient freight execution management & tracking

Page 41: Transform Supply Chain on SAP S/4HANA

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Comprehensive shipment tracking

Freight units, orders, bookings, & containers

End-to-end

(across pre-, main- & on-carriage)

Cross-system & organization

Shipper, carrier & consignee views

Full milestone tracking -

from loading begin to proof-of-delivery

Flexible event notification & handling

Map-based event location visibility

Instruction tracking for SOPs

Alerting and

Notification

Geo Tracking

on Map

International, cross-system shipment & event trackingIntegrated Event Management

Page 42: Transform Supply Chain on SAP S/4HANA

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SAP S/4HANA Supply Chain for TM – Freight Costing and Settlement

Analytics and

Collaboration

Order

Management

Transportation

Planning

Transportation

Execution

Freight Costing

and Settlement

Analytics and

Reporting

• Freight

agreement

management

• Charge and tariff

management

• Integration with

SAP S/4HANA

• Transportation

charge calculation

Business Benefits

• Improve accuracy and transparency with

automatic transportation cost calculation

• Integrate transportation management

and billing

• Increase invoice accuracy

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Accurate, integrated freight costing, settlement & reporting

TM charge management

Master data cockpit

Comprehensive agreement management

Flexible charge & rate management

Advanced freight charge calculation, cost distribution

Freight settlement

Accruals posting

Carrier self-invoicing

Invoice verification & payment

Credit memo processing

Freight cost reporting

Interactive freight cost dashboard

Flexible business warehouse cost reporting

Freight charges & settlement

Freight cost accounting

General ledgerposting

Material valuation

Sales order profitability analysis

Page 44: Transform Supply Chain on SAP S/4HANA

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Cost distribution in SAP S/4HANA Supply Chain for TM

Page 45: Transform Supply Chain on SAP S/4HANA

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SAP S/4HANA Supply Chain for TM – Analytics and Reporting

Analytics and

Collaboration

Order

Management

Transportation

Planning

Transportation

Execution

Freight Costing

and Settlement

Analytics and

Reporting

• Dashboards for the

SAP HANA platform

• Landed cost

analysis

• Flexible reporting

on business

warehouse costsBusiness Benefits

• Support real-time, data-driven decision making

• Gain in-depth business insights

• Reduce data complexity

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SAP TM

SAP Fiori

launchpad

Overview page

Quantities

SAP TM

Freight Order

This is the current state of planning and may be changed by SAP at any time.

Real-time analytics SAP TM based on CDSDrill down to order level details

1

2

3

4

5

Page 47: Transform Supply Chain on SAP S/4HANA

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SAP S/4HANA for extended warehouse management

SAP EWM embedded in SAP S/4HANA as additional deployment option for our customers, small & midsize & production

warehouses to provide customers with flexible deployment options to run all kinds of warehouses within a single SAP solution.

▪ Inventory management optimization (like slotting)

▪ Inbound process optimization (like deconsolidation)

▪ Outbound process optimization (like waves)

▪ Yard management (like transportation unit–handling

and dock appointment scheduling)

▪ Labor management

▪ Value added services

▪ Kitting

▪ Cross-docking

▪ Warehouse billing

Key Capabilities

Embedded Extended Warehouse

Management

Inbound Processing Storage and Operations Outbound Processing

Analytics • Transit warehousing • Labor management • Cross-docking • Compliance

Native technologies • Implementation tools

Page 48: Transform Supply Chain on SAP S/4HANA

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Key innovations delivered with S/4HANA 1709 Release

SCE Platform Integrated load planning

Warehouse Optimization • Pallet algorithm

• Stock Consolidation

Industry related Change deliveries / cancel quantities

Pick Cart Handling

Easy to use

Verticalized

& Integrated

This is the current state of planning and may be changed by SAP at any time.

Page 49: Transform Supply Chain on SAP S/4HANA

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Key innovations delivered with S/4HANA 1709 Release

Enhanced functionality • QM feature parity

• Analytics (using CDS)

• Integration to embedded TM

Simplification Support changes of outbound deliveries which are replicated to EWM

Labor Management Enhancements• Processor Data

• Shift Master Data

• Travel Distance Calculation

• Time & Attendance

• Labor Standards

• Tracking and Monitoring

Embedded

This is the current state of planning and may be changed by SAP at any time.

Page 50: Transform Supply Chain on SAP S/4HANA

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Key innovations delivered with S/4HANA 1709 Release

Connected

Efficient

Transparent

TCI / TCO

• Skip delivery request objects

• “combined picking” with enhanced features

• Reduce Memory consumption of monitor nodes

• Simplify “loading status”

• Enhanced RF loading / picking transactions

This is the current state of planning and may be changed by SAP at any time.

Page 51: Transform Supply Chain on SAP S/4HANA

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SAP S/4HANAProduct philosophy

Key innovations starting with an award-winning user

experience* to enable digital adoption Machine learning: increased automation

through algorithm-driven business

acceleration

Intelligent services

Leveraging emerging

technologies and trends

Blockchain

Smart system with digital assistant

* SAP Fiori 2.0 user experience (UX) design concept won a Red Dot in the Interaction Category

at the Red Dot Award: Design Concept 2015.

Me Area Workspace

Me Area Notification AreaWorkspace

Cloud

Page 52: Transform Supply Chain on SAP S/4HANA

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SAP S/4HANA 1709Release strategy for 2017/2018 and definition of deliveries

FPS01*Feature Package Stack

FPS02*Feature Package Stack

SPS03*Support Package Stack

SAP S/4HANA 1709 SPS00*

2017 2018

Q4 Q1 Q2 Q4Q3

SAP S/4HANA 1809

SPS00*New release

Maintenance Line

2019

Q4 Q1 Q2 Q3 Q4

* This is the current state of planning and may be changed by SAP at any time without notice.

New release

Page 53: Transform Supply Chain on SAP S/4HANA

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SAP Digital Supply Chain Innovation Pillars

SAP S/4HANA

• Digital Product Innovation

• Digital Manufacturing

• Digital Operations

• Digital Logistics

SAP Integrated

Business Planning

• Digital Business Planning

• Digital Response & Supply

Management

SAP Ariba

• Strategic Sourcing

• Direct Material

Collaboration

SAP Leonardo

• Connected Products

• Connected Assets

• Connected Fleet

Plan

Produce

Deliver

Design

Respond

Operate

SAP HANA Platform & SAP S/4 HANA

Transport Management

Extended Warehouse Management

Track and Trace

Inventory

Demand Response and Supply

Sales & Operations

Enhanced User Experience

Supply Chain Control Tower

SAP HANA Platform

Discover Connect Collaborate

Ariba Network

BUY SELL

MANAGE

CASH

Page 54: Transform Supply Chain on SAP S/4HANA

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HOW CAN I LEARN MORE?WWW.SAP.COM/S4HANA

Page 55: Transform Supply Chain on SAP S/4HANA

Thank you.

Contact information:

Patrick Crampton-Thomas

[email protected]

Head of Digital Response and Supply Management

Markus Rosemann

[email protected]

Head of Digital Logistics