S/4HANA Product Logistics Functionality
Jose Marquez, S/4 HANA Product Expert
R EGIONAL
I MPLEMENTATION
G ROUP
June, 2016
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The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. Except for your obligation to protect confidential information, this presentation is not subject to your
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course of business outlined in this presentation or any related document, or to develop or release any functionality
mentioned therein.
This presentation, or any related document and SAP's strategy and possible future developments, products and or
platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason
without notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any
material, code or functionality. This presentation is provided 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 noninfringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP assumes
no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or
gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
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Agenda
 SAP S/4HANA
Business Improvements & Innovations
in Materials Management and Operations
Procure to Pay
Order to Cash
Plan to Product
 Transition for Customers
Cross-Logistics
SAP S/4HANA Sourcing and Procurement
Business Process View
Operational
Procurement
Self Service
Requisitioning
Requirement
Processing
Invoice and
Payables
Management
Invoice Processing
Accounts Payable
Sourcing and
Contract
Management
Source Assignment
Operational Contract
Management
Supplier
Information and
Master Data
Classification and
Segmentation
Supplier Evaluation
Inventory and
Warehouse
Management
Goods Issues
Goods Receipts
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Purchase Order
Processing
Service Purchasing
Purchase Order
Collaboration
Procurement
Analytics
Invoice collaboration
Basic Warehouse
Management
Basic Shipping
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Procure to Pay
enabled by S/4 HANA
New Business Practices
Enabling Solutions
1. Streamlined Contract Management
2. Streamlined Self-Service Procurement
3. Streamlined Supplier Evaluation
4. Streamlined Workflow in Procurement
5. Streamlined Category Management
6. Real-time Inventory Management
7. Embedded Real-time Procurement Analytics
8. Embedded Search & Procurement facts sheets
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Streamlined Contract Management
Business Process View
Classic
Selection
screen to
provide
search
criteria
S/4
Do all tasks (search, filter, renew contract in one screen
Review list
of contracts
Leave list of contracts and
start contract change for
each contract
With Traditional System:
•
With SAP S/4HANA:
•
Only One-time search for contract documents is
possible. When changing search parameter, user has
to go back from contract list to search screen every
time
•
No action can be done directly in the contract list
•
Approval information is missing
•
Notes are missing
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Traditional
Process Excellence
With SAP S/4HANA
•
All activities can be executed in one screen
•
Change search parameters
•
Dynamic search helps propose
possible values already while typing
•
Contract target value or target quantity
update
Additional information provided (approval details,
notes, business card for supplier)
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Real time inventory management
Inventory turnover
Key benefits
»
Real time stock analysis in
graphical way
»
Overview of the entire
inventory turnover situation
for the selected scope of
materials and / or plants and
the selected time range
»
Dive into the details of the
inventory analysis
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Agenda
 SAP S/4HANA
Business Improvements & Innovations
in Materials Management and Operations
Procure to Pay
Order to Cash
Plan to Product
 Transition for Customers
Cross-Logistics
Release 1511 OP
SAP S/4HANA Sales
Business Process View | S/4 HANA Changes
Order and
Contract
Management
Sales Master Data
Management
Sales Contract
Management
Sales Order
Management and
Processing
Billing and Invoicing
Inventory and
Basic
Warehouse
Management
Goods Issue
Goods Receipt
Basic Warehouse
Management
Basic Shipping
Receivables
Processing
Accounts Receivable
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Claims, Returns, and
Refund Management
Sales Monitoring and
Analytics
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Order to Cash
New Business Practices enabled by S/4 HANA
New Business Practices
Enabling Solutions
1. Streamlined Selling
2. Streamlined Order Fulfillment
3. Flexible Rebate Processing
4. Embedded Real-time Sales
Analytics
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Order to Cash with S/4HANA: What you see…
From Insight to Action in a few clicks
Use Realtime Alerts
instead checking
yesterdays’ reports
Check impacts and
Act on any issue
within seconds
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Make sure to solve
the biggest issues
first
…and make sure to
use notes and
collaboration for
superior results
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Embedded Real-time Sales Analytics
Business process view
Traditional system
SAP Business Suite
software
With SAP S/4HANA
Extractors
Business
intelligence
BI tool
SAP S/4HANA
Customer
content
O2C
content
O2C performance KPI
analysis and process view app
With traditional system:
With SAP S/4HANA:
 Does not provide prebuilt content for O2C to track the
performance of sales processes
 Extraction and analysis of process performance with
BI tools
 Daily and weekly updates (extraction)
 Provides prebuilt content to monitor and analyze O2C
process performance
 Instant real-time analysis possible
 Allows comparison between sales organizations and
communicating issues with stakeholders
 Provides the process manager a current view of the sales
order processing performance and quality
 Filter sales orders with issues, and take insight into process
execution
Traditional
With SAP S/4HANA
Process excellence
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Value archived by SAP S/4HANA
»
Offers the possibility to run actions directly in real time
and track the solution progress on the same screen.
»
»
Combines analytical insights with operational actions.
Visualizes KPIs, including thresholds and alerts in real
time
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Agenda
 SAP S/4HANA
Business Improvements & Innovations
in Materials Management and Operations
Procure to Pay
Order to Cash
Plan to Product
Cross-Logistics
 Transition for Customers
Release 1511 OP
SAP S/4HANA Accelerated Plan to Product
Business Process View | S/4 HANA Changes
Core Distribution
Requirements
Planning
Material
Requirements
Planning
Basic External
Processing
Repetitive
Manufacturing
Production
Engineering
and Planning
Basic Order
Promising
Manufacturing BOM
Management
Production
Operations and
Execution
Production
Processing
Process and Routing
Management
Basic Subcontracting
Inventory and
Basic
Warehouse
Management
Goods Issue
Goods Receipt
Basic Warehouse
Management
Basic Shipping
Product
Development
and Project
Control
Project Financials
Control
Project Logistics
Control
Product Development
for Discrete Industries
Product Design for
Process Industries
Maintenance
Management
Maintenance
Planning and
Scheduling
Maintenance
Execution
Quality
Management
and
Compliance
Corporate Quality
Quality Planning and
Control
Quality Operations
Inspection Planning
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Basic Production
Planning
Lean Manufacturing
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Plan to Product
New Business Practices enabled by SAP S/4 HANA
New Business Practices
Planned in the future
1. Streamlined Supply Chain
1. Embedded Finite Production
Planning and Execution
Enabling Solutions
Scheduling
2. Real-time Inventory Management 2. Streamlined Quality Management
3. Real-time Asset Operations &
Maintenance
4. Streamlined EH&S in Asset
Management
3. Streamlined Manufacturing
Engineering & Orchestration
4. Streamlined Product Lifecycle
Management
5. Streamlined Enterprise Portfolio &
Project Management
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Real-Time Manufacturing Planning with the MRP Run
Inventory
Sales Orders
MRP Run
06:00 AM
Purchase Orders
Work Orders
MRP Run
MRP Run
MRP Run
MRP Run
08:00 AM
10:00 AM
12:00 AM
02:00 PM
MRP Controller
Analyze the current
situation based on realtime information and
focus on single
shortages
Time
Transfer Request
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Purchase Request
Production Request
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Material Shortage
Value Creation through:
Enables immediate
detection of material
shortages based on realtime data.
Considers multiple shortage
definitions (=rules that
define how shortages are
determined)
Shows all supplies and
demands in chronological
order and determines
available stock for each day.
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1. Performance Value
 Real-time data
integration
• Single-query access to
data
2. Process Innovation
 Fast and precise ATP
confirmation towards
customers.
 Decrease stock and
increase service level.
 Reduce Stock, increase
service level, event based
reaction to unexpected
changes.
 New User Experience.
 Fast multiple ATP checks
and fast rescheduling .
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On the fly simulation and decision support
»
Real time data from all areas of material
management including procurement lead times,
inventory stock availability, lot sizes, manufacturing
scheduling and sales orders across multiple sites
»
Suggestion of potential solutions for the shortage
through “Solution Cards” with all information needed
to resolve the material shortage (e.g. Reschedule
Purchase Order, Increase Purchase Order, stock
transfers).
»
Real Time Simulation computes the future inventory
situation in detail. The optimization algorithms make
use of the simulation to find the ideal replenishment
strategies
»
Daily work tasks focused on exceptions and on the
most urgent problems with the highest financial
implication
Simulation
Decision
Support
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Value archived by SAP S/4HANA
»
Reduce customer service & support cost by making
proactive decisions in response to changing demand
»
Increase annual procurement savings by providing clear
visibility across the supply chain
»
Improve on-time delivery performance by tailoring available
capacities and receipts to meet required quantities
»
Reduce revenue loss due to stock-outs by monitoring
inventory and automating the creation of procurement
proposals
»
Improve inventory accuracy by considering all inventory
data, lead times, and procurement timing in calculations
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Agenda
 SAP S/4HANA
Business Improvements & Innovations
in Materials Management and Operations
Procure to Pay
Plan to Product
Order to Cash
 Transition for Customers
Cross-Logistics
Cross Logistics
S/4 HANA Simplifications
Changed Capabilities
Obsolete Capabilities
S/4 HANA provides this capability in an enhanced or modified way
S/4 HANA does not provide this capability
1.
Variant Configuration
10. Product Catalog
1.
2.
Business Partner Approach
11. MDM 3.0 integration SRM Product
3.
Simplified Product Master Tab
Key Mapping
Master
12. BAPIs
4.
5.
Material Number Field length
Extension
Simplification of Parameter
Effectivity
13. Job Scheduling
14. MRP in Material Master
15. Logistics Information System
6.
New Output Management
Foreign Trade fields in Material
Master
7.
MRP fields in Material Master
8.
Material Type SERV
9.
Product Catalog functionality for
integration with IAC
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Transition to S/4 HANA – Business Impact
Simplification Items and business process impact
The impact on business processes differs from customer to customer and from the simplification category.
Functionality which is not available in S/4 (without successor) will be critical for those customer using this (overall rarely used) functionality, and not
ready to adopt replacement solutions / wait for their availability (example: Customer Interaction Center).
For the following items, the customer has to adapt his Business Process:
• Business Partner Approach (Customer/Vendor integration) mandatory in S/4
• Traditional Foreign Trade functionality in SD/MM replaced by Global Trade Server
• The FI-AR-CR Credit Management is replaced by SAP Credit Management (FIN-FSCM-CR).
• Material Ledger Obligatory for Material Valuation
• Classic Cash Management is replaced by the new SAP Cash Management
• Classic Asset Accounting is replaced by New Asset Accounting
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Further Information
sap.com/s4hana
SCN Community
SAP S/4HANA Trials
SAP S/4HANA Cookbook
help.sap.com/s4hana_op_1511
S/4HANA OpenSAP Courses
SAP S/4 Trainings
SAP S/4HANA Migration
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Questions & Answers
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Thank you
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affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time
for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forwardlooking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
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