the next generation business suite: use cases€¦ · the next generation business suite: use cases...

The next generation business suite: Use Cases

Rudolf Hois

VP SAP S/4HANA

SAP SE

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SAP S/4HANA –The Use Cases

@BeSchulze


Overview SAP S/4HANA Use Cases

Market to the Segment of One Accelerated Material

Requirements Planning

Advanced Sales Order

Fulfillment

Real-Time Inventory

Management

Soft Financial Close Anytime

Increase Financial Business

Performance

Collaborative Work PatternsPlatform for All Industries

Learn about SAP’s biggest innovation since R/3

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ExampleAccelerated Material Requirements Planning


» Clear visibility across the material flow

increases user acceptance and

efficiency

» Proactive decision making in response

to changing demand

» Flexible tailoring of available

capacities and receipts to meet

required quantities

» Real time inventory monitoring and

automating the creation of

procurement proposals

» Prioritized view on material flow issues

» Real-time alerting based on current

stock requirements situation

» System-generated solution proposals

» MRP can run as frequently as required

(up to 10x faster)

» Demand information is propagated

faster through the supply chain

» Increasing customer service

» Low inventory accuracy

» Revenue losses due to stock-outs

» Poor on-time delivery performance

» Missing parts in production

Innovation: Material Requirement Planning

Business Challenges Business Benefits Capabilities


compensate for variations in the production

process such as machine breakdowns

help to stabilize any fluctuations in production

capacities and lead times

Planning Operation

Buffering in Manufacturing

Operation 1

Operation 2

Operation 3

2

1

Production Order

Earliest

Start Date

Latest

End DateLatest

Start Date

3 4

Raw Material Supply

Coating

x Buffer Time

Loading and Dispatch

Production line

Production Proposal

Start Date End Date

1 2 3 4 1 2 3 4

Lead Time

Lead Time

Earliest

End Date

in case the supplier is unable to

deliver the shipments on time

crash point

impossible to confirm the

close delivery time to the

customer, as you confirm

always the delivery date

based on buffer times

Latest

End Date

1 2 3 4

Earliest

End Date


Real-Time Manufacturing Planning with the MRP Run

Sales Orders Work OrdersInventory

Purchase Request Production RequestTransfer Request

MRP Run

8 Hours

06:00 AM 02:00 PM08:00 AM 10:00 AM 12:00 AM

MRP RunMRP Run MRP Run MRP Run

Purchase Orders

Analyze the current

situation based on real-

time information and

focus on single

shortagesMRP Controller


Performance improvement through code push down in MRP

App-Server DB-ServerDispatcher

Read planning file entries

For every planning file entry

Read planned orders

EbanRead purchase requisitions

Read purchase orders

Read production orders

Read sales orders

Read stock transfer demand

Read planning file entries

For all planning file entries with the same low-level code

Plaf

Mdbs

Caufv

Vbbe

Mdup

ReadE

ban

Read

Plaf

Read

Ekpo

Afpo Vbbe Ekko

Merge + Split

MRP planning logic

Plauf

Eban

Update planned orders

Update purchase requisitions

Plan

set 1

Plan

set 2

Plan

set 3

Merge + Split

Insert

PlafInsert

Eban

Insert

Resb

ABAP post-processing (e.g.

determine release strategy)

App-Server HANADispatcher


System analyzes the material flow of all materials in real time

and identifies:

» Disruptions in the material flow

» The impact of these issues

» Solution proposals for decision support

» The remaining time-to-action

» Role based KPI driven entry

» Running on any device

» Adoptable and personalizable

Performance improvement with SAP S/4HANA

» Scenario dependent up to 10 times faster

» Data Storage reduction by 5 times

» New mode supports procurement and in-house

production, delivery schedules and configurable

materials

» Classic mode for subcontracting, capacity planning

and discontinuation

Accelerated Material Requirements Planning

Step1: Read

Step2: Algorithm (Netting, Lotsizing,..)

Step3: BOM Explosion/Configuration

In-house production, subcontracting

Step4: Write

MRP RUN MRP Analysis


On the fly simulation and decision support

Simulation

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


Value achieved 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


ExampleReal-Time Inventory Management


» Improve on-time delivery

» Increase inventory turnover

» Reduce cost of inventory (e.g. stock

level, cost, place)

» Single source of truth of inventory in

one system

» Attract end user by real-time accuracy

» Real-time processing of inventory

postings and visibility of inventory

values

» Posting of finest granularity like

handling unit, lot size 1, sensor data

» Decreased stock levels (e.g. reduce

buffers) due to increased transparency

» Easy to consume data model

supporting flexible analytics

» Manage the changing demand for

smaller lot sizes passing through the

logistic operations

» Low throughput prevents real-time

inventory

» Missing embedded and real-time

analytics

» Missing comprehensive data model

» Process & data redundancies increase

effort

Innovation: Real Time Inventory Management



8 Hours

06:00 AM 02:00 PM

Physical and real stock

Theoretical value: e.g. based on

Production Planning via MRP Run

Production hazards: e.g. Quality issues

Classical Inventory tracking

t

#

Calculated stock

Goods movements posting on predetermined times

Stock Overview in Inventory Management Application

08:00 AM 10:00 AM 12:00 AM


8 Hours

06:00 AM 02:00 PM





Security

Classical Inventory tracking

t

#

Calculated stock

Goods movements posting on predetermined times

Safety Stock

Physical stock needed


08:00 AM 10:00 AM 12:00 AM


8 Hours

06:00 AM 02:00 PM



Real-Time Inventory Management

t

#

Real stock

Frequent real-time goods movements posting

Stock Transfer

Security



08:00 AM 10:00 AM 12:00 AM



Innovations: Inventory Management SimplificationAggregates eliminated

MSLB

MSKU

MSKA

MKOL

MCHB

MSTQ

MSTE

MSTB

MSSQ

MSSA

MSPR

Aggregates

Document

MKPF MSEG

Inventory movements

Business Suite

MARC MARD

Master data without

Stock aggregates

On the fly

aggregation

Material

Document

MATDOC

Material Master

MARC MARD

Master data with Stock aggregates

History

MSLBH

MSKUH

MARDH

MARCH

MSKAH

MKOLH

MCHBH

MSTQH

MSTEH

MSTBH

MSSQH

MSSAH

MSPRH

MARCH MARDH26 aggregate tables

Transactional Data

Master data


The Need for a new Inventory Data Model

» Build in SAP HANA Database and the new data model

uses the advantage of in-memory columnar storage

» Separation of the MKPF information and MSEG

information in different tables becomes obsolete.

» Single table (MATDOC) with almost all required attributes

and views represents the data for all business

perspective

» Elimination and reorganization of the IMG table structure

» Existing fields MBLNR and MJAHR of the table MKPF

are not key fields any more

Content of the aggregate tables calculated from

» the inventory data in MKPF and MSEG

» the IMG tables e.g. Stock type

Two aggregate tables are used as logical locking arguments to

block a parallel creation of material document creation

» One lock for quantity posting (for goods issue)

» Second lock for value posting (materials with moving

average price)

ECC6 SAP S/4HANA


Material Document: Data Model / Columns

MATDOC comprises 289 columns

» 32 columns from MKPF (Material Document header table)

» 204 columns from MSEG (Material Document item table)

» 53 additional columns for fast Calculations / Analytics

– Warehouse stock grouping fields

e.g. stock categories (special stock, unrestricted, …)

– Additional units and key figures

e.g. stock quantities stored with sign for fast on-the-fly aggregation

– Two sets of stock identifying fields (source and target)

Transfer postings

– Periods and time information

e.g. year-month combination for comparison of stock time series

– Data footprint: 25% .. 38% of total table size



» Improve on-time delivery performance by enhancing

shipping performance

» Improve sales productivity by providing a streamlined

and predefined process for order management

» Reduce revenue loss due to stock-outs by preventing

them in the first place with greater visibility


Advanced Sales Order Fulfillment


» Fulfill an order on time and in the

desired quantity using different kind of

checks for different business scenarios

» Increase productivity

» Increase service level

» Increase inventory turnover

» Focus to value creating activities

» Fast automated process chain:

1. MRP run

2. Backorder processing

3. Delivery due list

4. Triggering warehouse

processes

» Exception based order monitoring

» Limited service level agreement

» No precise stock visibility for end users

» Long order to delivery processing time

» Limited frequency of process

automation run

» Inefficient ways to manage order

backlogs

Market to the Segment of One (Web shop, EDI)



Sales and DistributionEliminate DB aggregates, Simplify/Harmonize processes

Previous Data Model in ERP Simplified Data Model

EliminateDB aggregates

Simplify and Harmonizeprocesses

SD Documents

Header

(incl. Status)Items

(incl. Status)Doc Flow

(simplified)

Header Items Doc Flow

Status

Header Status

Items

IndicesLIS Tables

(Rebates)LIS Tables

(Credit Mgmt)

LIS Tables

(others)

Business

Data Business

Data

Refers toRefers to

Contract

Data

Contract

Data

SD Documents

Data indices & aggregates

Data indices & aggregates

Document and

Aggregate

Tables

Aggregates

and Indices

eliminated


SAP S/4HANA Enterprise Management – Key Innovations

Sales and Distribution

User Interaction

Introduction of new User

interface based on exception

based working model

Data Model Simplification

For major objects like Sales

Order, Delivery and Billing

Key benefits: Faster access to business process information –

New visualization techniques and analytical capabilities

Higher stability and flexibility of the rebate settlement process

Insert/Update operations on Index table can be dropped

Document Flow

New implementation for

increased performance and

transparency

Rebate Processing

Newly designed access to

Billing documents

$ - $


Sales Order Fulfillment Monitor

Sales Order

Management

Logistics

Execution

Invoice

Processing

• The Order-2-Cash process is highly automated but whenever

the process falls behind, the Internal Sales Representative

needs to know that something is going wrong in order to take

appropriate action

• ECC (ERP) offered many specific reports to identify Sales

Orders with specific issues but not an overall overview about all

issues


SAP S/4HANA Enterprise Management – Key Innovations

Sales and Distribution

• Provide internal sales

representative a single source

of holistic transparency on

sales order fulfillment issues on

desktop and tablet, driven by

exceptions.

• Enables effective clarification of

issues offering comprehensive

decision support, collaboration,

and appropriate actions.

• Exception driven workiing

model, ‚no touch order‘

2. Process Innovation

Real-time data integration

• Single-query access to

data

1. Performance Value

Value Creation through:Sales Order Fulfillment Cockpit


There is a lot of expert knowledge

necessary to find the necessary

information and how to solve the specific

issues.

Situation in ERP (ECC)?

Many specific reports are used to

identify Sales Orders with issues but

not an overall overview on all issues


Multiple transactions to manage OneIssue!

Batch Jobs, Issue resolution based on

outdated data

Multiple User

Experiences

Complex to consume and complex to use

New: Before:

One App to manage multiple issues

Real-time Analysis, complexity hidden

from users

Pro-active resolution

One User Experience

Easy to consume and easy to use



» Reduced memory footprint (simplified Doc Flow, no indices,

less aggregates)

» Increased performance of HANA queries and ATP code

pushdown (one select resp. easier join for header/items incl.

status and business data)


Where to go for more information

Joint the Community

SAP S/4HANA, cloud edition trial

Detailed SAP S/4HANA road map:

SAP Service MarketplaceTop Questions and Answers How to get there …

S/4HANA Cookbook

SAP S/4HANA, on-premise edition

trial

Discover SAP S/4HANA Co-Innovation @ SAP S/4HANA

http://discover.sap.com/S4HANA

http://discover.sap.com/S4HANA

https://www.sap.com/cmp/dg/crm-s4hana/index.html

https://www.sap.com/cmp/dg/crm-s4hana/index.html

http://scn.sap.com/community/s4hana/

http://scn.sap.com/community/s4hana/

http://go.sap.com/cmp/oth/crm-s4hana/s4hana-on-premise.html

http://go.sap.com/cmp/oth/crm-s4hana/s4hana-on-premise.html

http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html

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