S/4HANA Product Logistics Functionality Jose Marquez, S/4 HANA Product Expert R EGIONAL I MPLEMENTATION G ROUP June, 2016 Disclaimers 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 license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any 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. © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 2 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Purchase Order Processing Service Purchasing Purchase Order Collaboration Procurement Analytics Invoice collaboration Basic Warehouse Management Basic Shipping Customer Care / RIG Customer 4 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 5 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) Customer Care / RIG Customer 6 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 7 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Claims, Returns, and Refund Management Sales Monitoring and Analytics Customer Care / RIG Customer 14 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 15 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Make sure to solve the biggest issues first …and make sure to use notes and collaboration for superior results Customer Care / RIG Customer 16 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 17 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 18 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Basic Production Planning Lean Manufacturing Customer Care / RIG Customer 20 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 21 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Purchase Request Production Request Customer Care / RIG Customer 22 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. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 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 . Customer Care / RIG Customer 23 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 24 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 25 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 27 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 28 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 © 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer Care / RIG Customer 29 Questions & Answers © 2016 SAP SE or an SAP affiliate company. All rights reserved. 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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. Customer Care / RIG Customer 32