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PUBLIC

The Business Value for Supply Chain with SAP S/4HANA, Cloud/ Line-of-Business Applications and SAP Leonardo

Transform Supply Chain with SAP

2PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Hear from Microsoft executives on how

they are using SAP IBP to realize their

Innovation Supply Chain. The solution

helps the company build a demand-

driven supply chain, that understands

and fulfills consumers’ demand at their

request and meets their expectations.

SAP Integrated Business Planning (SAP IBP) live at Microsoft Corporation

https://www.sap.com/assetdetail/2017/10/0a6d2d62-db7c-0010-82c7-eda71af511fa.html


The information outlined below will help you understand the contents of this value proposition white paper. It gives details on the objectives and scope of the paper. Key definitions are also provided.

DELIVERABLE OBJECTIVE

Provides information on the value in moving from an ERP on a

traditional database to SAP S/4HANA, Cloud/ Line-of-Business

(LoB) applications and SAP Leonardo solutions.

.

KEYDEFINITIONS

Within the process and subprocess deep dives, there is detailed

content in table format articulating the following:

Typical Pain Points

Major customer business and IT challenges.

Current State with ERP on Traditional Database

ERP capabilities that are available on a traditional database.

SAP S/4HANA Capabilities

Capabilities shipped with the latest release of SAP S/4HANA,

including apps that are optimized for SAP Leonardo, such as an

app for contract consumption.

Cloud/ LoB and SAP Leonardo Solution Capabilities

Solutions that can be integrated with SAP S/4HANA and provide

business value ‒ for example, the SAP Integrated Business

Planning solution or SAP Connected Goods software. These

solutions are not embedded in SAP S/4HANA but these can be

integrated.

With the value proposition section, all quantified

benefits are conservative, estimated improvement

ranges tied to the top value drivers. They are based on

early adopters or new developments and enhancements

of SAP S/4HANA, Cloud/ LoB applications and SAP

Leonardo solutions that can drive value. Keep in mind

that these benefits should be used as a guide. We

recommend working together to assess your current

maturity and the value of moving to SAP S/4HANA,

Cloud/ LoB applications and SAP Leonardo solutions to

develop a personalized business case.

*Detailed road map available on SAP.com

(customer login required)

This document 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 is provided without a warranty of

any kind, either express or implied, included but not

limited to, the implied warranties of merchantability,

fitness for a particular purpose, or non-infringement.

Last Update

SAP S/4HANA 1709 release. All Leonardo capabilities are highlighted in bold.

Business Benefits

Key value drivers that are impacted by the adoption of

SAP S/4HANA, Cloud/ LoB applications and SAP

Leonardo solutions.

White Paper Background and Key Definitions

PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

2018: Planned Innovations*

New functionalities planned for the 2018 release of

SAP S/4HANA, Cloud/ LoB applications and SAP

Leonardo solutions.

http://www.sap.com/roadmaps


Agenda

Supply Chain Overview

Digital Priorities

End-to-End Business Scenarios

Process Deep Dive

Customer References

Appendix

Value Proposition Summary

5

8

11

21

22

23

25


TRANSFORM SUPPLY CHAIN WITH SAP

Supply Chain in a Digital Economy

Digitization of the economy is continuing to accelerate the pace of innovation, shortening the product lifecycle and increasing the

demand volatility. At the same time supply chains are becoming global and increasingly complex. To be in a position to create and

capture opportunities, companies must develop an environment in which they can manage information and processes simultaneously

across the extended supply chain. This evolution of supply chains is more connected, intelligent, responsive, and predictive. It enables

companies to drive customer-centric processes and deliver personalized products uniquely built and delivered for the “segment of one.”

These demanding customers have to be serviced across a business network of global partners that are increasingly challenged by

resource scarcity. This transformation will continue to impact the business processes and systems that are required to remain

competitive. It will change how we design, plan, make, ship, and operate our products and assets.

SAP S/4HANA Supply Chain, cloud applications such as SAP Ariba solutions and SAP Integrated Business Planning, and SAP Leonardo

support a digital supply chain strategy with a digital value network that acts as an enabler for business transformation. The digital value

network starts with a digital core that interconnects all aspects of the value network in real time to drive business outcomes. The digital

core not only connects every aspect of internal operations but also enables real-time workforce engagement, supplier collaboration,

outcome-based omnichannel consumer experience, and other market dynamics with Internet of Things (IoT) and Big Data scenarios.

Warehousing and Transportation on

One Platform

Demand Driven Material Requirement Planning

(DDMRP)

Live InventoryManagement

Predictive Forecasting and Demand Sensing

Short-term demand

prediction with demand

sensing algorithms .

Remote capture and

analysis of sensor data from connected devices and

feeding to demand

management process.

Live inventory management

enabling unlimited

simultaneous material movements and allowing for

true transparency on

inventory and material flows.

Decreased stock buffers due

to better transparency and insights.

Single warehousing

platform for all warehousing

operations, including optimization, automation,

and labor management.

Single transportation

platform with basic and

advanced shipping functionality and real-time

embedded analytics.

Dynamic planning of

replenishments with DDMRP

which is fully integrated into existing MRP concept.

Replenishment only for real

demand and introduction of buffers at strategically

important points.

Prestige Brands

Prestige Brands Implemented the SAP® Integrated

Business Planning Solution to support account

planning

“ With SAP Integrated Business Planning, our

sales VP can do annual sales quota planning in a

few hours compared to days. All sales team

members can collaborate and achieve

consensus sales forecast numbers centrally and

provide visibility to the management team

instantaneously. Bizbrain Technologies

delivered this project, from concept to going

live, in 12 weeks. This is a very fast ROI. ”

Matt Flood, Vice-President and CIO, Prestige

Brands Holdings Inc.

Gulftainer

Gulftainer Implemented SAP S/4HANA to meet its

current and future requirements

“ At Gulftainer, we are committed to providing the

highest standards of operational efficiency. SAP

S/4HANA will enable a more efficient, cost-

effective movement of international business

through our terminals, providing the actionable

data necessary to increase productivity and

reduce costs. ”

Ramesh Shivakumaran, Group Director Business

Services, Gulftainer Company Limited

Overview | E to E | Process Deep Dive | Digital Priorities | Value Proposition Summary | Customer References | Appendix


SAP SUPPLY CHAIN VALUE PROPOSITION SUMMARY

SAP solutions enable companies to substantially enhance, simplify, and visualize the entire supply chain process.

Reduced Days in Inventory with Live Inventory Management and Demand Driven MRP (DDMRP)

Live inventory management through a redesigned data model

enables unlimited simultaneous material movements and allows

for true transparency on inventory and material flows. It also

provides improved material planning with faster, more frequent

Material Requirement Planning (MRP) runs – multiple times a

day, with planning and rapid replanning in minutes instead of

hours to minimize inventory. It is now possible to replenish only

for real demand and introduce buffers at strategically important

points (Demand Driven Material Requirement Planning -

DDMRP).

Reduction in Revenue Loss Due to Fulfillment Issues with Advanced Available to Promise (AATP)

The solution enables intelligent, real-time product availability

check for sales, planned and production orders. It includes

scalable Available to Promise (ATP) for managing large

transaction volumes and flexible allocation management

capabilities. It provides back-order processing with intuitive

priority classification and interactive exception handling.

Reduce Overall Supply Chain Planning Cost with What-If and Scenario Planning

S/4HANA digital core in conjunction with SAP Integrated

Business Planning for sales and operations enables integrated,

continuous and iterative supply chain planning. It includes what-

if and scenario planning to react to market demand through the

best service at lowest cost. Manufacturing costs and premium

freight expenses are reduced with detailed constrained planning

and scheduling, enabling agility and efficient use of capacity.

Improved Supply Chain Planning FTE Productivity with SAP Integrated Business Planning and SAP Fiori

Supply chain planning productivity is enhanced through easy-to-

use Microsoft Excel and analytics-based planning interfaces in

conjunction with SAP Integrated Business Planning (IBP). This

helps production and material planners execute critical daily

tasks with embedded decision support analytics and SAP Fiori

role-based user interface applications.

Reduced TCO Through Landscape Simplification with Embedded Solutions in SAP S/4HANA

Faster business outcomes are achieved with reduced

operational cost, thanks to simplified system landscapes.

Redesigned data structure and embedded solutions in SAP

S/4HANA result in fewer systems and interfaces. For example -

SAP Extended Warehouse Management

(SAP EWM) and SAP Transportation Management (SAP TM)

applications embedded in the SAP S/4HANA core.




SAP’s Digital Business Framework for Supply Chain

SAP Ariba Solutions for Direct Spend

• SAP Ariba Supply Chain Collaboration

• SAP Ariba Strategic Sourcing Suite

• SAP Ariba Supply Chain Mobile App

Ariba Network (integrating the entire buying process for the organization)

SUPPLIER COLLABORATION

SAP Integrated Business Planning (IBP)

• IBP for Response and Supply

ASSETS AND SUPPLY CHAIN

SAP Leonardo

• SAP Vehicle Insights

• SAP Asset Intelligence Network

• SAP Global Track and Trace

• SAP Predictive Maintenance

SAP Integrated Business Planning (IBP)

• IBP for Response and Supply

• IBP for S&OP (Sales and Operations Planning)

• IBP for Inventory

• Supply Chain Control Tower

CUSTOMER EXPERIENCE

• SAP Hybris Cloud for Sales

SAP Integrated Business Planning

(IBP)

• IBP for Demand

SAP Leonardo

• SAP Connected Goods

SAP solutions enable organizations to drive business value across their end-to-end digital value chain.

WORKFORCE ENGAGEMENT

• SAP Fieldglass solutions

• SAP SuccessFactors solutions


S/4HANA DIGITAL CORE

• Extended Warehouse Management

• Transportation Management

• Extended Production Scheduling and Delivery Planning

• Advanced Inventory Management


End-to-End Business Scenarios

‘Plan to Position’ is an end-to-end supply chain planning scenario which relates to

production, procurement and positioning the product in the supply chain in anticipation

of demand.

The scenario starts with setting business objectives and includes the tactical and

operational decisions to set the demand plan, capacities and inventory targets.

‘Order to Delivery’ is an end-to-end supply chain planning and execution scenario which

relates to efficient order fulfillment and delivery.

The scenario starts with capturing a sales order and includes order confirmation,

material requirement planning , production, procurement and ends with material

dispatch.

Some organizations measure value by the impact to their end to end processes. Outlined below are the primary end-to-end processes that are

important to a supply chain organization.


1. PLAN TO POSITION

2. ORDER TO DELIVERY


Traditional Planning

Reimagine Plan to Position

TOP VALUE DRIVERS


The New World With SAP

SupplyPlanning

Demand Planning & Sensing

Demand Planning

Integrated Business Planning

Response & Supply Planning

Scenario Planning & collaboration

Sales & Operations Planning

Alignment between sales plan

and capacity plan excluding

inventory targets

Limited financial alignment with

business plan

Classical statistical forecasting

and consensus demand planning

process based on historical data,

often leading to unsatisfactory

accuracy

Propagation of supply requirements

through company’s network with

limited consideration of business

priorities and no connection to

fulfillment planning

Holistic alignment to business

plan including financials and

inventory target setting,

supported by internal

collaboration

Finite planning based on optimization

or business priority rules,

coordinated electronically with

trading partners, with full pegging

visibility and generation of allocation

plans to govern order promising

Full visibility to demand and

supply across the extended

network, to simulate changes

to plan, with root cause

analysis to understand and

resolve issues

Demand plans consider demand

signals from orders, shelf, and

web with intelligent adjustments

to eliminate bias and determine

optimum forecast parameters

Use of emails, phone calls, and

spreadsheets to resolve issues

when there is a supply

disruption or a demand change

to determine how to respond

ManualAdjustment

Reduce Supply Chain Planning Cost Increase Forecast Accuracy Reduce Revenue Loss due to Fulfillment Issues


Traditional Planning

Improve Customer Service Reduce Inventory Carrying Cost Reduce Logistics Cost

Reimagine Order to Delivery

TOP VALUE DRIVERS


The New World With SAP

PurchaseRequisitioning/ Production

Live MRP

Scheduled MRP

Online Order Confirmation

PurchaseRequisitioning / Production

Sales order confirmation

Delivery commitments

based on outdated data,

resulting in cancelled or

delayed orders

No ability to re-run MRP

during the day. Material

shortages not known

instantly, delaying

production

Up-to-date inventory

information resulting in

realistic fulfillment

commitments. Rule-

based product allocations

MRP runs possible

multiple times a day.

Material shortages

identified instantly

Inventory Management

Inventory Management

Outbound Delivery, Transport Planning

& Dispatch

Outbound Delivery, Transport Planning

& Dispatch

In-Transit tracking

In-Transit tracking

Minimized safety stock

with just-in-time material

availability

Single warehousing

platform for all

warehousing operations

No way of knowing if a

reliable supplier nearby

could have delivered the

missing part in time

Delayed material

postings due to high

volume of production

transactions. Inability to

respond to production

issues on time

Automated decision

recommendations and

integrations in to Ariba

network quickly locates

the best supplier

Minimized safety stock

with just-in-time material

availability

Sales Order Capture

Sales order Capture

Increased safety buffers

to make up for the lack of

inventory invisibility,

locking up capital

Interface needed

between ERP and

extended warehouse

management application

No ‘out of the box’ event

tracking capabilities

Analytics and reporting

done in a separate

business warehousing

system with no real time

data update

Transportation process

taking place in disparate

systems with inefficient

business partner

collaboration

Limited optimization

possibilities

Insights in to

transportation

execution, tracking

goods and assets in

transit (SAP Global track

and Trace)

Analyze vehicle and

sensor data in real time,

optimizing logistics and

improving service ( SAP

Vehicle Insights)

Single platform for

transportation

management with real-

time embedded analytics

Capacity management,

planning, collaboration

execution, charge

management and

settlement in one system


SUPPLY CHAIN MANAGEMENT (SCM) CAPABILITIES

Outlined below are the primary capabilities for SCM where value can be achieved through SAP S/4HANA,

Cloud/ LoB applications and SAP Leonardo solutions.

Digital Business Planning

• Demand Management and Insights

• Sales, Inventory and Operations Planning

• Response and Supply Management

Digital Logistics and Order Fulfillment

• Warehouse Management

• Transportation Management

• Logistics Network




TYPICAL PAIN POINTS



Cloud/ LoB and SAP Leonardo Solution

Capabilities

2018 Planned Innovations

BusinessBenefits

• Inability to include

real-time, changing

demands in the planning run leads

to outdated and

inaccurate planning

• Basic demand planning

features exist with

limited ability to sense or predict short-term

demand based on

growing number of demand signals

• Provides a real-time

order management

platform for omnichannel demand

management

• Changes in demand are visible without waiting

for lengthy batch

processes. Orders are prioritized and tightly

integrated with supply

and fulfillment

• Short-term demand

prediction with demand

sensing algorithms and forecasts for medium to

long-term demand with

advanced statistical forecasting methods

(SAP Integrated Business

Planning)

• Product lifecycle

management tools for

generating statistical forecasts on new products


Planning)

• Remote capture and

analysis of sensor data

from connected devices,feeding to demand

management process (SAP

Connected Goods)

• Enhanced demand

management

process including product lifecycle

management and

product segmentation

capabilities

(SAP Integrated Business Planning)

• Operational master

data and order data integration with

transactional system

(SAP Integrated Business Planning)

• Increased forecast

accuracy

• Reduced demand planning and

forecasting cost

• Difficult to drive

Sales and

Operations Planning (S&OP)

process with

executional ERP system, which

causes planning to

be done in a slow, manual process

with inconsistent

information across functional areas

• Collaboration around a

sales and operations

plan needs separate integration; difficult to

analyze different

scenarios of future demand and supply

and hard to come up

with actionable plan

• Provides an integrated

SAP HANA platform to

support demand-driven business planning

processes, including

real-time analytics across demand, supply,

and finance

• Rapid and collaborative S&OP, including “what if” and scenario planning of different potential business plans, to allow business stakeholders and functional leaders to agree on and execute desired path forward (SAP Integrated Business Planning)

• Workflow and

approval process as

part of the sales and operations process

(SAP Integrated

Business Planning)

• Reduced overall

supply chain

planning cost

• Reduced sales and

operations

planning cycle time

(continued next page)

Digital Business Planning Deep Dive





TYPICAL PAIN POINTS




capabilities

2018 PlannedInnovations

BusinessBenefits

• Long batch run

processes lead to

inefficient planning

• Manual resolution

on material

bottlenecks, heavy use of side by side

tools to simulate

• Inability to include the real-time

changing demands

in the planning run and analysis leads

to outdated and

inaccurate planning decisions

• Planning runs at predefined times without real-time data

• MRP lists are working with snapshots of the planning situation during the planning run

• Accelerated MRP:

improved effectiveness

of planning, up to 10x faster, enabling more

frequent MRP runs –

multiple times a day

• (Live) MRP: one single

harmonized MRP

process for all materials, both

unconstrained and

those requiring advanced constraint-

based planning

• MRP (cockpit) provides real-time insights into

material availability

• Supply planning beyond MRP in conjunction with S&OP to provide unconstrained or constrained (optimized) supply plans (SAP Integrated Business Planning)

• Rapid and collaborative S&OP, including “what if” and scenario planning (SAP Integrated Business Planning)

• Improved usability with new MRP planning board and (near) real-time integration with SAP Integrated Business Planning

• Reduced overall

supply chain

planning cost

• Improved

manufacturing

function planning efficiency

• Reduced revenue

loss due to stock-outs

• Improved

manufacturing function planning

efficiency

• Inability to support

demand driven

supply chain. Individual and siloed

solutions for

demand generation and supplier

collaboration leads

to inefficient supply chain processes

• Forecast is generated

in a separate system

and there is no direct communication to the

suppliers on the same

• Directly share forecast and

orders generated by SAP

IBP (Integrated Business Planning) with suppliers

via Ariba Supply Chain

Collaboration (SCC) solutions

• Reduce revenue

loss due to

fulfillment issues

• Reduced overall

supply chain

planning cost



TYPICAL PAIN POINTS

Current State with ERP on Traditional

Database



Capabilities


BusinessBenefits

• Too much working

capital in the

supply chain leading to low

inventory turns

and, at times, subpar customer

service levels

• Whiplash effect inwhich forecast

yield supply chain

inefficiencies

• Difficult to predict

individual

consumer demand and

supply the same,

without increasing the stock

• Difficult to

determine

optimal inventory targets across

the supply chain,

so companies are left with having to

estimate these

manually

• Personalized and

dynamic planning of

replenishments withDemand Driven

Material Requirement

Planning (DDMRP), which is fully integrated

into existing MRP

concept

• Replenish only for real

demand and introduce

buffers at strategically important points

(DDMRP)

• Real-time analytics across all data held in

SAP S/4HANA,

covering orders, invoices, inventory, and

costing information

• Determination of optimal

inventory targets across

multiple echelons of raw material, work in process,

and finished goods

inventory, enabling supplychain to operate with less

working capital while

maintaining target service levels


Planning)

• Uncertainty index and

expected service-level

calculation for inventory optimization

(SAP Integrated

Business Planning)

• Demand driven

replenishment: Time

dependent buffer levels, Buffer

monitoring in planning

and execution

• Reduced

days in

inventory

• Increased

inventory accuracy

• Lack of visibility into

the end-to-end supply

chain leads to poor decision support and

slow corrective

actions

• Supply chain

analytics possible

using an online analytical

processing (OLAP)

engine like business warehouse (BW);

the data is not real

time

• Embedded

analytics allow on-

the-fly simulations with real-time

data; user- and

use-case-centric views are also

supported

• Empowersbusiness users

to perform ad hoc analysis

in real time with alerts, KPIs, reporting, and

insights that detect and

notify users of potentialdisruptions (SAP

Integrated Business

Planning)

• Enhanced process

visualization,

automation, and collaboration,

including work flow

and approval process

• Collaborative planning

on the network with

SAP Integrated Business Planning and

the

Ariba® Network

• Improved supply

chain planning FTE

productivity

• Reducedoverall

supply chain

planning cost




TYPICAL PAIN POINTS




Capabilities


BusinessBenefits

• Missing visibility and control of material movements across the network

• Batch-based

processes and

lack of real-time

monitoring result

in poor on-time

delivery

performance

• IT complexity with

the need to

maintain

interfaces

• Data duplication

due to separate

warehousing

systems, adding

to complexity

• Visibility on overall

progress across

system boundaries;

ability to achieve

overview on material

flows messaging

interface between ERP

and extended

warehouse

management

application

• Limited wave

management and

warehouse

optimization

capabilities

• Limited capabilities in

the area of cross

docking, labor

management, quality

management

• No standard UI

capabilities for end to

end user experience

• Single warehousing platform for all warehousing operations, including optimization, automation, and labor management. This is enabled by SAP Extended Warehouse Management (EWM) embedded in the SAP S/4HANA core

• Mapping the entire

warehouse complex in

detail in the system, down

to storage bin level with

real time visibility of labor,

resources and activities,

using warehouse monitor

• One system (master data, customizing, and UX) for reduced data redundancy, lean processes with fewer business documents, and overall simplification

• New and improved FIORI apps available for warehousing clerks

• SAP EWM deployed

as a stand-alone

application for high-

volume and highly

automated

warehouses

• Improved user

experience with new

SAP Fiori apps related to

– task confirming,

inventory counting,

outbound packing and

e-commerce returns

• Advanced QM

Integration

• Additional embedded

analytics for EWM in the

area of labor

management reporting

• Improved integration to

inventory management

related to customer-

owned stock and

separation of storage

location assignments

• Comprehensive

integration of item

unique identification

data and ammunition

management in the area

of defense

• Stock in Transit:

Mitigate production

risks by forecasting

stock in transit delays

• Reduced

total

logistics

cost

• Reduced

warehouse

operating

cost

• Increased

inventory accuracy

• Reduced order

fulfillment lead time

• Reduced TCO

through

landscape

simplification

Digital Logistics & Order Fulfillment Deep Dive





TYPICAL PAIN POINTS




Capabilities


BusinessBenefits

• Lack of accurate up-to-date inventory data, lead times, and procurement timings for the planning leads to an inefficient planning process

• Low inventory

throughput

prevents live

inventory

updates

• Inventory status is

calculated overnight

• Live inventory updates

are not available;

inventory status is

reflected in the system

with time offset

• Inventory throughput may

reach boundaries

depending on business

scenario

• Live inventory

management through

redesigned data model

enables unlimited

simultaneous material

movements and allows for

true transparency on

inventory and material

flows

• Ability to change lot size to

“one,” thus capturing the

lowest level of granularity in

inventory stock keeping

• Decreased stock buffers

due to better transparency

and insights

• Availability of goods receipt

including stock in transit and goods receipt of

blocked stock

• Catch Weight

Management (CWM)

and Direct Store Delivery ( DSD)

functionalities for the

customers

• Enhancements for

predictive analytics in

process monitoring for decision support

• Improvements in

goods receipt process and usability through

posting of goods

receipts without reference

• Process enablement

for further Catch Weight Management

(CWM) scenarios

• Reduced

supply and

inventory

planning cost

• Increasedinventory

accuracy

• Reduced days in

inventory




TYPICAL PAIN POINTS




Capabilities


BusinessBenefits

• Complexity in

valuating

inventories in

multiple

currencies and

for different

valuation

methods (legal/

profit

center/reportin

g purposes)

• Material ledger activation

available along with

functionality of actual

costing. However,

inventory valuation data

exists in multiple

aggregated tables, which

leads to slow processes

(actual costing,

redistribution/

revaluation) and

slow/inefficient reporting

• Material ledger

available as a default

option. All inventory

valuation data exists

in material ledger,

removing

redundancies and

aggregates

• Faster actual costing

due to optimizedcode

based on SAP HANA;

faster reporting as

needed for actual

costing; multiple

currency and multiple

valuationmethods

• Increased

inventory

accuracy

• Increased visibility in actual profitability, allowing for margin optimization

• Limited

inventory

visibility,

increasing error

rate, and supply

shortages

• Inventory analysis is

possible through a

separate analytical

system with data

integration issues and

data latency

• SAP Fiori apps for

inventory managers

and warehouse clerks

• Optimization of inventory and material flows with analytical apps, to include inventory turnover analysis and flow analysis

• Inventory KPI analysis with follow-up actions on slow- moving materials

• New analytical apps for

warehouse clerks and

inventory managers

• Overview page to

support the inventory

analyst in daily

business by presenting

selected and relevant

KPIs and charts at a

glance

• Increased

inventory

accuracy

• Reduced supply

and inventory

planning cost





TYPICAL PAIN POINTS




Capabilities


BusinessBenefits

• Managing

increasingly

complex, multi

modal, global

transportation

needs in a single

platform

• Manual

transportation

process taking

place in

disparate

systems with

inefficient

business partner

collaboration

• Lack of end to

end visibility with

electronic track

and trace

capabilities

• No holistic

optimization of

inbound,

outbound and

intracompany

freight

• Limited optimization

possibilities

- No planning combining

inbound and outbound

movements

- Planning based on

deliveries

- No transportation

capacity planning

• No comprehensive freight

agreement management

and settlement

capabilities with

customers and suppliers

• Limited tendering

capabilities

• No out of the box event

tracking capabilities

• Single platform for

transportation

management with

basic and advanced

shipping functionality

and real-time

embedded analytics.

This is enabled by SAP

Transportation

Management (TM)

embedded in the

SAP S/4HANA core

• Transportation

solution covering end

to end processes -

capacity

management,

planning, collaboration

execution,

transportation charge

management and

settlement in one

system

• Address requirements

of multiple industries

and modes

• Accurate

transportation costing

for improved invoice

accuracy

• The SAP Transportation

Management (SAP TM)

deployed as a stand-

alone application for

complex transportation

requirements

• Insights into

transportation

execution, timely

execution of critical

business processes

and tracking goods and

assets in transit

(SAP Global track and

Trace)

• Collect, map, store,

and analyze vehicle and

sensor data in real

time, optimizing

logistics and improving

services

(SAP Vehicle Insights)

• Advanced driver

planning

• Integration to

global track and

trace

• Estimated Time

of Arrival (ETA)

calculation

based on actual

data

• Collaboration

through logistics

business

network

• Migration tools

for SAP TM to

SAP S/4HANA

for TM

• Reduced total

logistics cost

• Reduced

transportation

management costs

• Increased inventory

accuracy

• Reduced order

fulfillment lead time

• Reduced TCO

through landscape

simplification





TYPICAL PAIN POINTS




Capabilities


BusinessBenefits

• Logistics processes done in disparate systems without comprehensive integration into core business processes

• IT complexity with

the need to build

multiple interfaces

• Analytics and

reporting done in a

separate business

warehousing system

with no real time data

update

• Lack of visibility and

automation in yard

management

processes leading to

inefficiencies

• Limited transparency

in multi tiered global

supply chain

network, with

multiple business

partners

• Embedded Logistics

Execution –

Warehouse Management (LE-

WM) and Logistics

Execution –Transportation

management (LE-

TRA) components only offer limited

functionality with

need to setup multiple Interfaces

with business suite

applications

• Reporting based on

Business Warehousing (BW)

content using

Business Intelligence (BI) reporting tools

with time lag from

transaction system

• Visibility into the location

and condition of goods

and assets along the supply chain

• Process transparency and collaboration with

the partners to identify

and address issues with in-transit tracking

• Valuable insights to make focused decisions to

lower costs and optimize

inventory levels

• Enable collaboration with

logistics partners to improve

throughput, reduce wait times, and increase

efficiencies (SAP Global Track

and Trace)

• Full visibility into the lifecycle

of serialized products and tracking products across

multiple systems (SAP Global

Track and Trace)

• Efficient management of yard

activities such as managing stock, locations and vehicles

(SAP Yard Logistics)

• Collect, map, store, and

analyze vehicle and sensor

data in real time, optimizing logistics and improving

services ( SAP Vehicle

Insights)

• Unplanned

returns process

triggered from SAP Extended

Warehouse

Management (EWM)

• Analytics for

delivery performance

• Intuitive forward

navigation in order to achieve

routine and

exceptional task

• Improve on-time

delivery

performance

• Reduce days in

inventory

• Improve customer satisfaction

• Reduce total

logistics cost

• Reduce operations

cost (Services)





TYPICAL PAINPOINTS




Capabilities


BusinessBenefits

• Inability to

promise

accurate and reliable order

dates leads to

customer dissatisfaction

and revenue

loss

• Inefficient

strategies or

manual processes to

manage orders

and allocations lead to revenue

loss and

fulfillment issues

• Inability to

select alternative

sources

intelligently impacts

profitability

targets

• Global ATP checks in a

different planning

system

• Low-volume back-

order processing

supported

• Mass product availability

check for sales, planned

and production orders. Advanced ATP check

and performance

improvements for releasing large

production orders

• Multichannel allocation management using

demand characteristics

to allocate and reserve short supply. Real-time

order confirmation

considering allocation constraints

• Back-order processing

with intuitive selection and ranking of demand

to establish order

priorities. Rescheduling order confirmations

interactively to manage

variability through out the day

• Improved user

productivity with SAP Fiori apps including:

back-order processing

setup and result monitor and last-minute changes

before release for

delivery

• Response planning

capability for midterm

allocation planning and short-term order

confirmation in order to

automate allocation procedures , take effective

corrective action and

respond rapidly (SAP Integrated Business

Planning)

• Display and analyze

confirmation situation

of requirements and product allocation

availability situation

• Trigger an alternate backorder processing

run automatically when

an exception occurs

• Alternative-based

confirmation:

automatically determine the best

possible plant to fulfill a

requirement

• Reduction in

revenue loss due

to fulfillmentissues

• Reduction in

cancellations of back-ordered

items



Local Manufacturing

Networked Economy Changing Society


Customer Experience

21

The new economy is the networked economy. Organizations are

seeking cross department and cross industry business network

collaboration. Also, visibility down multiple levels of a supply

chain is needed for sustainable and socially responsible

networks.

An increasing percentage of the world’s population now lives in

cities and urban areas. This increases the pressure on infrastructures

such as electricity, water, and power grids and thus the need to

optimize space and logistics. Also, as manufacturing becomes more

automated, the role of employees and the skills required are also

evolving.SAP Integrated Business Planning and SAP Ariba solutions

provide collaboration across supply chain, logistics, assets, and

manufacturing. IoT solutions from SAP leverage data from smart

assets to drive data and business processes. Also, improved

collaboration in design results in improved compliance and

sustainable products.

IoT solutions from SAP help build smart cities and optimize the rural

areas to support the ever-growing population with the ever-decreasing

natural resources. SAP Leonardo capabilities help data scientists

analyze vast amounts of data and provide innovative solutions in this

time of changing work environments and populations.

Digital Priorities in Supply ChainMajor shifts in the economy are accelerating the transformation to a Digital Supply Chain. These evolved supply chains are more connected, intelligent,

responsive, and predictive. Below are few digital priorities that will help companies to capture the opportunities and remain competitive.

Customer expectations are changing and individualized products

are becoming commonplace. It’s not about selling the product

but caring about the customer from the beginning through the

entire lifecycle. Ability to deliver the same day, or even the same

hour to different types of locations is the key to a great customer

experience.

Companies are moving “closer to home” and reducing outsourced

manufacturing with the preference of local manufacturing. To make

manufacturing processes more efficient and affordable there is an

increase in automation and robotics on the production floor. Also,

the assets and products are becoming more connected and smarter.

SAP S/4HANA supports agile manufacturing with ‘lot size of one’

and 3D Printing customization capabilities, which reduces

inventory carrying costs. SAP solutions provide better visibility into

the performance of the shop floor equipment to increase uptime

and utilization.

SAP Connected Goods software captures information from smart

products using IoT sensors. SAP S/4HANA supports the new

consumption-based business models, leading to increased

revenue for the organization.



• Run Simple (master complexity): adapt to market

opportunities and develop newchannels

• Integrate planning and execution across strategic,

tactical, and operational time horizons

SAP’s Value Proposition for Supply Chain

Business Benefits

Risk Management

Employee Engagement

STRATEGYENABLEMENT

RISK MANAGEMENT

BUSINESS BENEFITS*

EMPLOYEE ENGAGEMENT

• Plan risk as part of a structured,

collaborative, integrated business

planning process

• Accelerate planning and response cycle times, moving from

monthly, to weekly, to daily decision processes

• Adopt short-term demand sensing and supply

replanning to respond to variability

• 12–15% reduction in days of inventory

• 10–15% reduction in revenue

loss due to stock-outs

• 10–15% reduction in total logistics cost

5–10% reduction in supply chain planning

cost

Reduction in order fulfillment lead time

• Enhances supply chain planning productivity

through easy-to-use Microsoft Excel and

analytics-based planning interface

• Helps production and material planners execute

critical daily tasks with embedded decision

support analytics and the role-based SAP Fiori

user experience

• Increases throughput

*Benefits are based on early adopters of SAP or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA, Cloud/ LoB

applicationsand SAP Leonardo solutions. As each enterprise is at a different level of maturity, our recommendation is to work with you to determine the value

proposition for your enterprise.

StrategyEnablement



Customers are Achieving Value from SAP

PRESTIGE BRANDS HOLDINGS Inc.

• Decreased time for report generation from 2 days to minutes

• Reduced time for sales quota planning from 4 weeks to 3 hours

• Achieved greater acceptance, trust, and compliance across all

organizational units

Prestige Brands focuses on product innovation in the over-the-

counter healthcare and household products, It implemented

SAP Integrated Business Planning Solution to support account

planning. The centralized tool provided what-if scenario analysis

to evaluate different plans with visibility into immediate impact

on customer service and working capital investments

LOHIYA GROUP

• 100% Visibility of inventory across all locations

• 70% Less time spent on decision making

• 60% Faster transaction processing time

Lohiya Group offers a range of products for consumption for the

domestic and commercial sectors throughout India. It

implemented SAP S/4HANA to automate freight determination

based on customer region from point of delivery, as well as to

track orders and pricing. The company also expects to eliminate

the need for reconciliation between warehouse and accounts,

thanks to fully integrated inventory and accounting transactions.

Company

Prestige Brands Holdings Inc.

Industry

Consumer Products

SAP Solution

SAP Integrated Business Planning

CustomerWeb Site

www.prestigebrands.com

Click here for Prestige Brands Holding Inc. source reference

Click here for Lohiya Group source reference

Company

Lohiya Group

Industry

Consumer Products

SAP Solution

SAP S/4HANA

CustomerWeb Site

www.lohiyagroup.in


http://www.prestigebrands.com/

https://crpa4c19efc4.hana.ondemand.com/cat/ci/cip/#/assets/details/SAP229379

https://dam.sap.com/mac/download/a.htm?c=46&k=RikS90CDfrRvm5kmF5vZ555D40m7SgD57iJSNk7Ol1mD0RD571

https://dam.sap.com/mac/download/a.htm?c=46&k=7l0RW5115P1lNkxfS5m4Sm7mhNv5iARfR5bi1D1YNRSvjRfkNu

http://www.lohiyagroup.in/


FARMA-TEK

• 3-day Order fulfillment, down from 8 days

• 40% Reduction of capital tied up in stock

• 40% Reduction in waste due to FEFO (First Expired-First Out)

methodology

Farma-Tek, a pharmaceutical company based in

Istabnul, aspires to introduce new products to

healthcare professionals. SAP S/4HANA runs all of the

company’s business processes on a single platform.

Real-time insight suppots Farma-Tek in predicting the

flow of materials to produce the right products at the

right time. It also assists the company in regulatory

compliance tracking – an imperative in this industry

GULFTAINER COMPANY LIMITED

• Improved operational efficiency

• Agile solution to support enterprise mobility and on-the-go business

• Scalable foundation to support future growth

Gulftainer is a privately owned, independent port management and 3PL logistics company based in United Arab Emirates (UAE). SAP S/4HANA is expected to enable a more efficient, cost-effective movement of international business through their terminals, providing the actionable data necessary to increase productivity and reduce costs

Click here for Farma-tek source reference

Company

Farma-tek

Industry

Pharmaceutical

SAP Solution

SAP S/4HANA

CustomerWeb Site

www.farma-tek.com

Click here for Gulftainer source reference

Company

Gulftainer

Industry

Travel and transportation

SAP Solution

SAP S/4HANA

CustomerWeb site

www.gulftainer.com


Customers are Achieving Value from SAP

https://dam.sap.com/mac/download/a.htm?c=46&k=mFfSCiiCSi77mD4N1kvcFN51U57C5dmFkl0i5klam7RCaFFmSe

http://www.farma-tek.com/?lang=en

https://dam.sap.com/mac/download/a.htm?c=46&k=5SmmADDf14l7iSXFNRkERvv0sD0S0tvf1DERRkRWmFFfXSmC73

http://www.gulftainer.com/


Customer Engagement Methodology

No matter which path applies to your enterprise, SAP has a structured four-

phase approach to ensure success – executive alignment, value discovery,

validation and executive readiness, and value delivery.

For more details, please see the brochure:

Driving Value in a Digital Economy

SAP Value Assurance Service Packages

Take advantage of SAP Value Assurance service packages for SAP

S/4HANA to quickly and safely harness the power of next-generation

software and in-memory processing.

For all value assurance packages and for the successful and seamless

transition to SAP S/4HANA, please visit the link:

Transition to SAP S/4HANA.

SAP S/4HANA Road Map

With a three-year detailed road map, SAP gives customers the transparency

to accelerate their transition to an SAP S/4HANA landscape.

SAP S/4HANA Road Map.

Start Today with a Trial SAP S/4HANA Trials

Key Assets for Next Steps on SAP S/4HANAwww.sap.com/s4next

Innovate with SAP Leonardo

SAP Leonardo is SAP’s digital innovation system that makes it easy to

innovate with new technologies, integrate them into your business, and

scale seamlessly as your company grows.Get started today with SAP Leonardo

Explore SAP Leonardo capabilities

Learn more about SAP Leonardo capabilities – and see how customers in a

variety of industries are using the system to realize the promise of new

technologies, such as the IoT and Big Data analytics.

For more details, please see the e-book:

Leonardo customer stories

Get an Expert Take on Digital Transformation

What are the benefits of blockchain, machine learning, and other

transformational technologies – and how are they impacting business?Get answers from experts and analysts in this e-book

Your Path to Digital TransformationEvery enterprise is unique, with different starting points and end points. Whether you are starting as a net-new implementation or undergoing a digital transformation in

an existing SAP landscape, SAP can help. We have been working with enterprises of all sizes and ¡n all industries. Based on the depth of this experience, SAP has a

robust portfolio of services


Assess Your Supply Chain Digital Maturity

Want to understand your Supply Chain digital maturity?Click here to participate and see how you compare to peers in real time.

Lay the Foundation for an In-depth Digital Transformation Engagement

Get clear guidance on SAP S/4HANA centric product map through a free self-service for customers and partners.www.sap.com/TransformationNavigator

http://go.sap.com/documents/2016/05/f2d18a54-717c-0010-82c7-eda71af511fa.html

http://go.sap.com/services/transition-to-s4hana.html

https://support.sap.com/content/dam/website/roadmaps/en_us/cross-topics/SAP S_4HANA, on-premise edition Road Map.pdf

https://go.sap.com/cmp/oth/crm-s4hana/index.html

http://www.sap.com/s4next

https://www.sap.com/products/leonardo.html

https://www.sap.com/products/leonardo.html#pdf-asset=3ce08515-d07c-0010-82c7-eda71af511fa&pdf-page=1

https://www.sap.com/dmc/exp/2017_05_path-to-digital-innovation/index.html?utm_source=sapcom&utm_medium=banner&utm_campaign=ebook-dig-trans&utm_content=leonardo-landing

https://valuemanagement.sap.com/vlm/?ID=689&isNewUI=1&SurveyLanguage=English#/

http://www.sap.com/TransformationNavigator

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