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1/21 © 2017 SAP SE or an SAP affiliate company. All rights reserved. Transform Supply Chain with SAP S/4HANA® S/4HANA Update 1610

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Page 1: Transform Supply Chain with SAP S/4HANA®

1/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Transform Supply Chainwith SAP S/4HANA®

S/4HANA

Update 1610

Page 2: Transform Supply Chain with SAP S/4HANA®

2/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

White Paper Backgroundand Key Definitions

The information outlined below is helpful to understand the contents

of this value proposition white paper. It gives clear details on the objective

and scope of the paper. Key definitions are also provided for select sections

of the paper for further clarification.

DELIVERABLEOBJECTIVE

Provides information on the value in moving from an ERP on a traditional database to SAPS/4HANA® and cloud and line-of-business (LoB) solutions

KEYDEFINITIONS

Within the process and sub-process deep-dives, there is detailed content in table format articulating the following:

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/4HANACapabilitiesCapabilities shipped with the latest release of SAP S/4HANA

Cloud And LoB Extension EnhancementsAll other solutions that can be integrated with SAP S/4HANA and provide business value. For example, SAP S/4HANA and the SAP Integrated Business Planning solution, or SAP S/4HANA and the SAP Manufacturing Integration and Intelligence (SAP MII) application. These solutions are not embedded in SAP S/4HANA, but integration scenarios exist for these.

2017 – Planned Innovations*New functionalities planned for 2017 release of SAP S/4HANA or new integration possibilities planned with this release.

With the value proposition section, all quantified benefits are conservative, estimated improvement ranges tied to the top value drivers. They arebasedon early adopters or new developments and enhancements of SAP S/4HANA and LoB and cloud enhancements that can drive value. Keep in mind that these should be used as a guide. We recommend working together to assess your current maturity and the value of moving to SAP S/4HANA in order 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 1610 release. All updates made to the deep-dive process sections as compared to the SAP S/4HANA 1511 white paper are italicized

Business BenefitsKey value drivers that are impacted with SAP S/4HANA shipment and cloud and LoB capabilities.

Page 3: Transform Supply Chain with SAP S/4HANA®

3/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Agenda

SAP S/4HANA Supply Chain Overview 4

Business Planning Deep-Dive 8

Response and Supply Management Deep-Dive 10

Logistics Deep-Dive 14

Value Proposition 17

Customer References 18

Page 4: Transform Supply Chain with SAP S/4HANA®

4/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

TRANSFORM YOUR SUPPLY CHAIN WITH SAP S/4HANA

SAP S/4HANA Supply Chain Overview

In today’s dynamic marketplace, companies in the digital economy need comprehensive access to accurate, real-time information about their enterprise – and about their customers, suppliers, and competitors. With the right information, businesses can be agile enough to produce and distribute personalized products with shorter lead times and smallerruns – even down to a lot size of one – and ensure that they can meet customer demand while keeping costs under control and productivity at its highest. Achieving excellence in this environment requires two important capabilities: visibility into operational, customer, and market data, and speed across the extended supply chain to react to changes in demand and supply and gain competitive advantage.

With SAP S/4HANA as the digital core, customers can build a foundation for extended supply chain visibility and speed. SAP S/4HANA Supply Chain and SAP S/4HANA Manufacturing allow companies to gain visibility into real-time market conditions and production efforts, and then react to that information with the speed required to deliver products that customers want with the efficiency they need. Any supply or demand change, such as a promotion that generates higher-than-forecasted demand or disruption in supply due to a late delivery, can be quickly propagated up and down the supply chain to detect imbalances as well as simulate alternate scenarios. SAP S/4HANA can be integrated with the SAP Integrated Business Planning solution, enabling advanced planning and response across strategic, tactical, and operational time horizons.

Vectus Industries

Vectus deployed the SAP S/4HANA Enterprise Management solution and started experiencing total ease in managing business operations.

"SAP S/4HANA Enterprise Management has made our operations more efficient by standardizing controls and reducing risk. Our decisions are better, faster, and information driven, giving us a definite competitive edge. We look forward to expanding our SAP portfolio.“

Manish Sinha, Head of IT, Vectus Industries Limited

Boryung

Boryung Pharmaceutical needed to

compete on a global scale, and it

required a simplified IT architecture

and real-time analysis to drive

critical business management. It

turned to the SAP S/4HANA Finance

solution as a foundation for its

transformation.

“SAP S/4HANA Finance helped Boryung drive business process harmonization while improving our operational efficiency. We are now able to tap into a variety of analytical information previously unavailable to us.”

Jae Hyun Ahn, COO, Boryung Pharmaceutical Co. Ltd.

Managing Basic to Advanced Warehousing Operations on One Platform

Real-time/Live Production Planning and Materials Management

Advanced Order Promising, Scheduling, and Allocation Management

Predictive Forecasting and Demand Sensing

Short-term demand prediction and real-time demand visibility, with analytics across all data covering demand, supply, and finance

Live materials requirement planning (MRP) to provide unconstrained and constrained supply plans. Advanced production planning and detailed scheduling capabilities embedded in SAP S/4HANA

Advanced available to promise (ATP) to manage prioritized demands across multiple channels and to manage allocation constraints

Single warehousing platform for all warehouse operations, both basic and advanced. This is enabled by the SAP Extended Warehouse Management (SAP EWM) application embedded in the SAP S/4HANA core

Page 5: Transform Supply Chain with SAP S/4HANA®

5/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP S/4HANA SUPPLY CHAIN VALUE PROPOSITION SUMMARYSAP S/4HANA enables companies to integrate, embed intelligence,and visualize all supply chain

processes from supplier to customer. Digital supply chain and mission-critical business processes are

supported across the enterprise with one single source of live information.

Reduced Days in Inventory

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 MRP runs – multiple times a day, with planning and rapid replanning in minutes instead of hours to minimize inventory.

Reduction in Revenue Loss Due to Fulfillment Issues

The software enables intelligent, real-time product availability check for sales, planned, and production orders and includes scalable ATP for managing large production and 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

The platform is suited for collaborative sales and operations planning (S&OP) in conjunction with SAP Integrated Business Planning (sales and operations ), including “what if” and scenario planning to maximize the potential of market demand through the best service at lowest cost. Manufacturing costs are reduced with detailed constrained planning and scheduling, enabling agility and efficient use of capacity.

Improved Supply Chain Planning FTE Productivity

Supply chain planning productivity is enhanced through easy-to-use Microsoft Excel and analytics-based planning interfaces in conjunction with SAP Integrated Business Planning. 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

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.

SAP S/4HANA Supply Chain Overview

Page 6: Transform Supply Chain with SAP S/4HANA®

6/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SUPPLY CHAIN MANAGEMENT (SCM) CAPABILITIESOutlined below are the primary capabilities for SCM where value can be achieved through SAP S/4HANA and SAP Cloud and LoBsolutions.

Business Planning

• Demand, supply, and finance alignment*

• Inventory optimization*

• Demand planning and demand sensing*

Logistics

• Basic warehouse management

• Goods receipt and goods issued

• Extended warehousemanagement

• Transportation management*

• Item serialization and product traceability*

Response and Supply Management

• Material requirements planning (MRP)

• Constraint-based production planning

• Production scheduling

• Advanced order promising

• Sense and respond to supply insights*

*Capability outside of ‘SAP S/4HANA shipment’

SAP S/4HANA Supply Chain Overview

Page 7: Transform Supply Chain with SAP S/4HANA®

7/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SCENARIO: SUPPLY CHAIN EXAMPLE

SAP S/4HANA provides reengineered and simplified business processes that can yield significant benefits, transforming the execution from multistep, batch-driven processes with latency in terms of key performance indicators to real-time processes with actionable insights.

Respond with confidence with SAP S/4HANA for advanced ATP

SAP S/4HANA Supply Chain Overview

Order Confirmation

Product Allocations

Multiple Backorder Processing Batch Jobs

Manual Rescheduling

Online Order Confirmation

Rule-based Product Allocations

Single Backorder Processing Run

Release For Delivery App

Delivery commitments based on outdated data resulting in cancelled or

delayed orders

Up-to-date inventory information resulting in

realistic fulfillment commitments

Allocation check in a different system. Low priority orders

fulfilled first, resulting in strategic customer orders

unfulfilled

Rule-based allocation check in one single system;

needs of strategic customers always met

Overnight batch jobs, commitments not aligned

with the business’s profitability

Real-time order confirmations. Advanced segmentation techniques

driving business’s profitability

Difficult to address the last minute rescheduling

by priority customers

Interactive rescheduling to adapt to last-minute changes in

customer orders or supply

Traditional ERP

SAP S/4HANA

Day in the life of a customer service manager:

Handles critical situations smoothly, balancing demand and supply and ensuring profitability

Day in the life of a customer service manager:

Days are typically smooth until demand exceeds supply and critical decisions need to be made

Page 8: Transform Supply Chain with SAP S/4HANA®

8/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

2017 Planned Innovations

BusinessBenefits

Business Planning

• Difficult to drive S&OP

process with

executional ERP system, which causes

planning to be done in a

slow, manual process with inconsistent

information across

functional areas

• Not able to include real-

time, changing demands

in the planning run,leading to outdated and

inaccurate planning

• Collaboration around

a sales and

operations plan needs separate

integration; difficult

to analyze differentscenarios of future

demand and supply

and hard to come upwith actionable plan

• Basic demand

planning features

exist with limitedability to sense or

predict short-term

demand based ongrowing number of

demand signals

• 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 IntegratedBusiness Planning)

• Provides a real-time order management platform for omnichannel demand management

• Changes in demandare visible withoutwaiting for lengthybatch processes. Orders are prioritized and tightly integrated with supply and fulfillment

• Short-term demand

prediction with demand

sensing algorithms andforecasts 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 (SAP Integrated Business Planning)

• 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)

• Workflow and approval process as part of the sales and operations process (SAP Integrated Business Planning)

• Reduced overall supply

chain planning cost

• Reduced sales andoperations planning

cycle time

• Increased forecast

accuracy

• Reduced demandplanning and

forecasting cost

Cloud And LoB Extension Enhancements

(continued next page)

• Provides an integrated SAP HANA® platform to support demand-driven business planning processes, including real-time analytics across demand, supply, and finance

Page 9: Transform Supply Chain with SAP S/4HANA®

9/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

Cloud And LoB Extension Enhancements

2017 Planned Innovations

BusinessBenefits

• Too much working

capital in the

supply chain leading to low

inventory turns

and, at times, subpar customer

service levels

• Difficult to

determine optimal

inventory targets across the supply

chain, so companies

are left with having to estimate these

manually

• Real-time analytics

across all data held in

SAP S/4HANA,covering orders,

invoices, inventory,

and costinginformation

• Determination of

optimal inventory

targets across multiple echelons of

raw material, work in

process, and finishedgoods inventory,

enabling supply chain

to operate with less working capital while

maintaining target

service levels(SAP Integrated

Business Planning)

• Uncertainty index and expected service-level calculation for inventory optimization (SAP Integrated Business Planning)

Business Planning

• Reduced days in

inventory

• Increased inventory accuracy

Page 10: Transform Supply Chain with SAP S/4HANA®

10/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

Cloud And LoB Extension Enhancements

2017 Planned Innovations

BusinessBenefits

Response and Supply Management

• Long batch run

processes lead to

inefficient planning

• 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

(continued next page)

• 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

• SAP Fiori apps forMRP (cockpit) provide real-time insights into material availabilityand offer work flow support to resolve issues; also help planners build vehicle loads before releasing requirements to procurement

• Supply planning

beyond MRP in

conjunction with S&OP to provide

unconstrained or

constrained (optimized) supply

plans

(SAP IntegratedBusiness Planning)

• Rapid and

collaborative S&OP,

including “what if” andscenario planning

(SAP Integrated

Business Planning)

• Improved usability with new MRP planning board and (near) real-time integration with 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 manufacturingfunction planning efficiency

• Reduced revenue loss due

to stock-outs

• Improved manufacturingfunction planning efficiency

*Based on specific customer test case

Page 11: Transform Supply Chain with SAP S/4HANA®

11/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

Cloud And LoB Extension Enhancements

2017 Planned Innovations

BusinessBenefits

• Planning systems

disregard capacity and

material constraints

• Disparate planning and

transactional systems

lead to data integrationlatency and errors

• Inability to integrate demand with manufacturing in an agile way

• Production planning

capabilities (MRP and

constrained planning)available in ERP and

advanced planning

systems (APO –Advanced Planning

and Optimization &

third party)

(continued next page)

• Streamlined data and

processes with

embedded analytics anddecision support enable

faster MRP-based

planning and execution processes, resulting in

more accurate

information and reducedlatency planning

• Advanced production planning and detailed scheduling capabilities in SAP S/4HANA with harmonized master data and user interfaces in SAP Fiori

• Finite capacity planning and detailed scheduling with one single MRP run

• Enhanced user productivity through new SAP Fiori apps, including capacity utilization for resources, result optimization of MRP, and production scheduling board

• Interactive and simulated production planning using SAP Fiori user experience (UX) and improved planning views

• Demand-driven replenishment: stock-level management

• Reduction in revenue

loss due to stock-outs

• Increased productionplan adherence

Response and Supply Management

Page 12: Transform Supply Chain with SAP S/4HANA®

12/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

Cloud And LoB Extension Enhancements

2017 Planned Innovations

BusinessBenefits

• Inability to promise

accurate and reliable

order dates leads to customer

dissatisfaction and

revenueloss

• Inefficientstrategies

or manual processes

to manage orders and allocations lead

to revenue loss and

fulfillment issues

• Inability to select

alternative sources

intelligently impactsprofitabilitytargets

• Global ATPchecks

in a different

planningsystem

• Low-volumeback-

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 allocationprocedures and take

effective correctiveaction

and respond rapidly (SAPIntegrated Business

Planning)

• Enhanced back-order processing with interactive exception handling (fallbacks) and analytics

• SAP Fiori-based simulation tool for product availability check

• Alternative sources of supply, extensibility, and flexibility in product allocation

• Reduction in revenue

loss due to fulfillment

issues

• Reduction in back-

ordered items

cancelled

(continued next page)

Response and Supply Management

Page 13: Transform Supply Chain with SAP S/4HANA®

13/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

Cloud And LoB Extension Enhancements

2017 Planned Innovations

BusinessBenefits

• Lack of visibility into

the end-to-end supply

chain leads to poordecision support and

slow corrective

actions

• Supply chain analytics

possible using an online

analytical processing (OLAP) engine like

business warehouse

(BW); the data is not realtime

• 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 detectand notify users of

potentialdisruptions

(SAP IntegratedBusinessPlanning)

• 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

Response and Supply Management

Page 14: Transform Supply Chain with SAP S/4HANA®

14/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Logistics

(continued next page)

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

Cloud And LoB Extension Enhancements

2017 Planned Innovations

BusinessBenefits

• Lack of accurate up-to-date inventory data, lead times, andprocurementtimingsfor the planning leadsto an inefficientplanning 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

timeoffset

• 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

• Communication of

goods receipt to

Ariba Network

• Multidimensional

analysis for

physical inventory

items and goods

movement

• Availability of the

existing SAP Catch

Weight

Management

application for

current customers

• Reducedsupply and

inventory planning cost

• Increasedinventory

accuracy

• Reduced days in inventory

• 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

• New analytical apps

for warehouse

clerks and inventory

managers

• Increasedinventory

accuracy

• Reduced supply and

inventory planning cost

Page 15: Transform Supply Chain with SAP S/4HANA®

15/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

Cloud And LoB Extension Enhancements

2017 Planned Innovations

BusinessBenefits

• Complexity in valuating

inventories in multiple

currencies and for different

valuation methods (legal/

profit center/reporting

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

• Increasedinventory

accuracy

• Increased visibility in actual profitability,allowing for marginoptimization

(continued next page)

Logistics

Page 16: Transform Supply Chain with SAP S/4HANA®

16/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Logistics

Typical Pain Points Current State With ERP On Traditional Database

SAP S/4HANAEnhancements

Cloud And LoB Extension Enhancements

2017 Planned Innovations

BusinessBenefits

• Missing visibility and control of materialand transport shipments across the network

• Batch-based

processes and lack of

real-time monitoring

result in poor on-time

delivery performance

• Visibility on overall

progress across system

boundaries; ability to

achieve overview on

shipping and

transportation process

status with messaging

interface between ERP

and extended warehouse

management application,

transportation

management application,

and the track and trace

solutions

• The SAP Transportation

Management (SAP TM)

application integrated

with SAP S/4HANA,

supporting distribution

and logistics holistically

• Process execution,

goods, and assets in

transit tracked. Manage

by exception through the

track and trace package

• SAP EWM deployed as a

stand-alone for high-

volume and highly

automated warehouses

• SAP EWM embedded in

SAP S/4HANA: quality

management feature

parity, backflush

postings, analytics using

core data services

• SAP TM embedded in

SAP S/4HANA

• Transportation planning

and optimization, real-

time embedded analytics

• Integration of SAP TM

and SAP EWM embedded

in SAP S/4HANA

• Transportation

management:

collaboration portal

• Integration of global

batch traceability with

SAP EWM

• Cloud-based track-and-

trace service based on IoT

application services

platform

• Reducedtotal

logisticscost

• Increasedinventory

accuracy

• Reduced order fulfillment

lead time

• Reduced TCO through

landscape simplification

• Single warehousing platform for all warehouse operations, both basic and advanced. This is enabled by SAP EWM embedded in the SAP S/4HANA core

• Basic warehouse management to perform basic inbound and outbound processing with internal movements and physical inventory and reporting

• Embedded EWM for advanced warehousing operations, including optimization, automation, and labor management

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

• Simplified apps for shipping specialists: ability to search for outbound deliveries and return deliveries with object pages, including details about header and item data

Page 17: Transform Supply Chain with SAP S/4HANA®

17/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP S/4HANA Supply Chain Value Proposition

Strategy Enablement

Business Benefits

Risk Management

Employee Engagement

STRATEGYENABLEMENT

RISK MANAGEMENT

BUSINESS BENEFITS

EMPLOYEE ENGAGEMENT

• Run Simple (master complexity):adapt to market opportunities and develop new channels

• Integrate planning and executionacross strategic, tactical, and operational time horizons

• Plan risk as part of a structured,collaborative, integrated businessplanning process

• Accelerate planning and response cycle times, movingfrom monthly, to weekly, to daily decision processes

• Adopt short-term demand sensing and supplyreplanning to respond to variability

• 10–12% reduction in days of inventory

• 10–15% reduction in revenue loss due to stock-outs

• 10–12% reduction in total logistics cost

• 3–5% reduction in supply chain planning cost

• Reduction in order fulfillment lead time

• Enhances supply chain planning productivitythrough 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 S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced

SAP S/4HANA and LoB and cloud capabilities. 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.

Page 18: Transform Supply Chain with SAP S/4HANA®

18/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Customers Are Achieving Value from SAP S/4HANA

MANGALAM CEMENT LIMITED (MCL)

Mangalam Cement Limited (MCL) is an India-based cement manufacturing

company. MCL decided to deploy the SAP S/4HANA Enterprise Management

solution at four plants, two captive power plants, 13 windmills, two captive

mines, and 55 distribution centers. The integrated IT platform positions MCL to

drive operational efficiencies and productivity and ultimately gain market share.

• Online stock availability and production orders

• Better visibility of raw material consumption and goods-in-transit

stocks

• Automated credit limit checks, PO processing, job orders, production

orders, and railway freight calculation

Click here for MCL source reference

VECTUS INDUSTRIES

Vectus deployed the SAP S/4HANA Enterprise Management solution and

started experiencing total ease in managing business operations. It has

decreased its days sales outstanding and can deliver accurate, instantaneous

customer invoices. Customers now experience excellent service and on-time

delivery, which will remain unchanged during rapidexpansion.

• 15% reduction in operation costs

• Real-time year-end financial close (down from a few months)

• 50% faster access to and visibility of real-time data

• 60% increase in operational efficiency

Click here for Vectus Industries source reference

Company

Mangalam Cement Limited

Industry

Mill products

SAP Solution

SAP S/4HANA

Enterprise Management

CustomerWeb Site

www.mangalamcement.com

Company

Vectus Industries

Industry

Industrial machinery and

components

SAP Solution

SAP S/4HANA

Enterprise Management

CustomerWeb Site

www.vectus.in

Page 19: Transform Supply Chain with SAP S/4HANA®

19/21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

INDEKS BILGISAYAR SISTEMLERI

Indeks Bilgisayar Sistemleri is a major wholesale distributor in Turkey.It had to be better than the competition while wielding far-reaching business

processes the others only dreamed of.

Indeks deployed SAP S/4HANA to simplify the data model and complex

subsidiary structure, cut infrastructure costs, and increase business agility.

• Timely consolidation of all subsidiary financials

• On-time delivery of products requested by retailers

• Efficient management of mergers and acquisitions

Click here for Indeks source reference

BORYUNG PHARMACEUTICAL

Boryung Pharmaceutical needed to compete on a global scale,and

it required a simplified IT architecture and real-time analysis to drive

critical business management.

It turned to the SAP S/4HANA Finance solution as a foundation for its

transformation. It gained high visibility and control of its business

information in realtime.

• 17% higher on-time deliveryperformance

• 15% fewer days in raw material inventory

• 4.5% higher operating margin for in-house manufacturing goods

Click here for Boryung source reference

Company

Indeks Bilgisayar Sistemleri

Industry

Wholesale distribution

SAP Solution

SAP S/4HANA Finance

CustomerWeb site

www.index.com.tr/eng

Company

Boryung

Pharmaceutical

Industry

Life sciences

SAP Solution

SAP S/4HANA Finance

CustomerWeb Site

www.boryung.co.kr

Customers Are Achieving Value from SAP S/4HANA

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Your Path To SAP S/4HANA

Every enterprise is unique, with different starting points and end points. Whether you are starting as a net-new implementation or undergoing 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 to help you define your road map to SAP S/4HANA.

Customer Engagement Methodology

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

Value Assurance 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

Additional Supply Chain References

SAPinsider SAP S/4HANA Special Report

SAP S/4HANA blogs

What Going Digital Really Means for Your Supply ChainSAP S/4HANA: Influence on LogisticsBuilding a Profitable Supply Chain with SAP S/4HANA

Infographics on SlideShareTransforming Supply Chain Management with SAP S/4HANA Supply ChainRespond with Confidence with SAP S/4HANA Available to Promise

VideosSAP S/4HANA in 2 Minutes: Supply Chain TransformationTransforming Supply Chain Management with SAP S/4HANA

SAP S/4HANA demo videosMaterials Requirements Planning (MRP) – SAP ERP powered by SAP HANAReal-Time Inventory with SAP S/4HANA

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