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S/4HANA Materials Management and Operations
Public
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Legal Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. 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 document or any related
presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation
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
document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document
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 non-infringement. This document is for informational purposes and
may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except
if such damages were caused by SAP´s willful misconduct 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. 3Public
Discover and respond to
future opportunities and
challenges
Real Time
Predictions
Eliminate batch processing,
data reconciliation
Analyze at any level
without exporting data
SimulationExplore the impact of
business decisions on
outcomes
Built-in data driven
decision support systems
Key Benefits of Technology for SAP S/4HANA
Responsive Improve user satisfaction
by reducing wait time
Drilldowns
Recommend-
ations
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public
Key Business Innovations in SAP S/4HANA Enterprise Management
This is the current state of planning and may be changed by SAP at any time.
Material Requirements
Planning
Inventory
Management
Available To Promise &
Backorder processing
Capacity Planning
Material
Valuation
Industry solutions to
core
Universal
Journal
Central Finance
Re-architecting for
in-memory platform
Responsive user
experience design
Unifying functionality
in core
Sales Representative
Order Management & Billing
Procurement Clerk Material Planner
> 20
3 < 1
Laggards Best-in-class Target
Accelerated
Financial Close
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public
SAP S/4HANA Enterprise Management
SAP S/4HANA
MARKETING
SAP S/4HANA
HUMAN RESOURCESSAP S/4HANA
MANUFACTURINGSAP S/4HANA
SUPPLY CHAIN
SAP S/4HANA
SALES
SAP S/4HANA
FINANCE
SAP S/4HANA
SERVICE
SAP S/4HANA
SOURCING &
PROCUREMENT
SAP S/4HANA
ASSET
MANAGEMENT
SAP S/4HANA
RESEARCH &
DEVELOPMENT
Th
e D
igita
l Core
Th
e D
igital C
ore
Enterprise Management
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public
SAP S/4HANA Manufacturing
SAP S/4HANA Asset Management SAP S/4HANA Enterprise Management scope for 1511 Shipment
End-to-end Business Processes
Key Innovations & Highlights
Leverage non-disruptively ERP Manufacturing capabilities via WebGUI
Monitor “production order” regarding flow and critical issues
Reduce cycle time by optimizing material flow for internal requirements (MRP)
Enterprise-wide visibility across with new stock overview
Manage the subcontracting process from planning to execution and monitoring
Create, track & request maintenance needs by any employee or operator with new UI
Quality management with simplified inspection planning, defect recording, flexible and harmonized
action management, supporting a standardized complaint processes
Monitor Production Orders Manage Component issues & shortages
New search for related documents Simplified selected stock postings
Quality
Operations
Quality
Planning and
Control
Corporate
Quality
Quality
Management
and
Compliance
Maintenance
Execution
Maintenance
Planning and
Scheduling
Maintenance
Basic
External
Processing
Basic
SubcontractingProduction
Processing
Manufacturing
Operations
(click on arrows for more information)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public
SAP S/4HANA Supply Chain: Production PlanningSAP S/4HANA Enterprise Management scope for 1511 Shipment
Manage External & Internal Shortages Simulate supply alternatives
Manage & track change requests4Trigger immediate action
End-to-end Business Processes
Key Innovations & Highlights
Reduce cycle time by optimizing material flow for Internal
requirements (MRP)
Trigger system-generated solution proposals
Gather Real-time stock & material flow insight with pre-built analytical
views
Material Planner can easily simulate supply alternatives
Manage and track change requests for orders
Easy to consume data model supporting flexible analytics
Available to promise: New ATP algorithm based on HANA embedded
in mass component check in production
Core Distribution
Requirements
Planning
Production
Scheduling
Production
Planning
Material
Requirements
Planning
Basic Order
PromisingProduction
Planning
(click on arrows for more information)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public
SAP S/4HANA Supply Chain: Inventory SAP S/4HANA Enterprise Management scope for 1511 Shipment
Optimize individual flow
Post material documents in a simple way4Simplified Material views
Track overall material flow
End-to-end Business Processes
Key Innovations & Highlights
Leverage simplified data model of inventory management for real-
time, high-volume processing
Easy to consume data model supporting flexible analytics
Real-time alerts based on current stock requirements situation
Decrease stock buffers due to better transparency & insights
Improve percentage on-time delivery
Elimination of locking, increased throughput for standard price
utilizing material ledger valuation, streamlining multi currency
usage, and multiple valuation methods.
Post of finest granularity like handling unit, lot size 1, sensor data
Benefit from 40 digit material number extension
Leverage just-in-time scenarios for outbound
Basic
Shipping
Basic
Warehouse
Management
Goods
ReceiptGoods Issue
Inventory and
Basic
Warehouse
Management
(click on arrows for more information)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public
Reduce PO error rate by providing seamless access to related documents
Turn purchase requisitions into purchase orders
Use purchasing approval apps with all info in one single cockpit
Leverage Real-time calculation of Procurement KPIs to analyze managed and
non-managed spend, contracts, and suppliers
Use standard integration to the Ariba Business Network for sending
purchaser orders, confirmations and advanced shipping notification as well as
invoice and the status update of invoices
SAP S/4HANA Sourcing and Procurement:
Operational ProcurementSAP S/4HANA Enterprise Management scope for 1511 Shipment
End-to-end Business Processes
Track the purchase order flow
Approve PO’s on any device Turn requisitions into orders
4 …and leverage your Business Network
Key Innovations & Highlights
Procurement
Analytics
Service
Purchasing
Purchase
Order
Processing
Requirements
Processing
Operational
Procurement
Purchase
Order
Collaboration
Self-Service
Requisitioning
(click on arrows for more information)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public
Use self service requisitioning process to search and request goods in a cross-
catalog search with consumer-grade user experience. Shopping Cart + Purchase
Requisition simplified in one business object
Manage your contracts E2E in one single cockpit
Purchasing category as new business entity for Classification & Segmentation
Use the possibility to load internal and external catalog content into HANA
Integration to Ariba Business Network for sending purchaser orders, confirmations
and advanced shipping notification as well as invoice and the status update of invoices
SAP S/4HANA Sourcing & Procurement:
Contracts & Self Service Requisitioning SAP S/4HANA Enterprise Management scope for 1511 Shipment
End-to-end Business Processes
Manage your Contracts in 1- step Use Self Service Requisitioning
Evaluate your suppliers KPIs4 …and integrate your Business Network
Key Innovations & Highlights
Purchase
Order
Collaboration
Self-Service
Requisitioning
Procurement
Analytics
Service
Purchasing
Purchase
Order
Processing
Requirements
ProcessingOperational
Procurement
Operational
Contract
Management
Source
Assignment
Sourcing and
Contract
Management
Invoice
CollaborationAccounts
Payable
Invoice
Processing
Invoice and
Payables
Management
Supplier
Evaluation
Classification
and
Segmentation
Supplier
Information &
Master Data(click on arrows for more information)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public
Key Innovations & Highlights
Identify bottlenecks and issues with resolution proposals in the Sales Order
Fulfillment Cockpit
Gather Real-time insight on the fly with pre-built analytical views for sales
process performance analysis, 30 SAP Smart Business KPI apps
Reduce customer service & support cost by automating and streamlining
return processes
Leverage simplified data model for order and contract management
SD Rebates replaced by Settlement Management
Leverage quick access to all related documents and forms to streamline
customer interaction and flow
Leverage an optimize delivery via exception driven working model, no touch
order
Sales representative Roles (NWBC) replaced with Fiori roles Internal Sales
Representative, Billing Clerk
SAP S/4HANA SalesSAP S/4HANA Enterprise Management scope for 1511 Shipment
End-to-end Business Processes
Frictionless Order-to-Cash process performance monitoring
- and take action if required
2 56
Billing and
Invoicing
Sales Order
Management
and Processing
Sales
Contract
Management
Sales Master
Data
Management
Order and
Contract
Management
Sales Planning
and Monitoring
Analytics
Claims, Returns,
and Refund
Management
(click on arrows for more information)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public
Discrete Manufacturing
Minimize resource usage, waste and
industrial casualties
Ensure accident free driving with zero
emission operated vehicles
Technology becomes affordable for
everyone; responsiblyEnsure security and mobility for everyone
Drive smart buildings and digitalization
Engineering Constructions &
Operations
IndustrialMachinery &
Components
Automotive
Aerospace & Defense
High Tech
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public
DIMP still provides leading processes for cross industry customers
1527
IS Automotive (IS-A)
47370% are none Automotive customers
Customers are using IS- A
In total
Thereof
from Automotive1
1051
IS Mill Products (IS-MP)
36865% are none Mill Products customers
Customers are using IS- MP
In total
Thereof
from Mill Products1
635
IS Aerospace & Defense (IS-AD)
15
Number far to small because of legal
reasons- usage not submitted to SAP
Customers are using IS- AD
In total
Thereof
from
Aerospace & Defense1
367
IS Engineering, Constructions &
Operations (IS-EC)
84
77% are none EC&O customers
Customers are using IS- EC
In total
Thereof
from Engineering,
Constructions &
Operations1
Lead Industry
customers 25%
Outside
Lead Industry
customers75%
DIMP is the most widely used
industry solution within SAP.
This solution is heavily used by
cross industry customers.
Therefore SAP´s strategy has to
support these End-to-End
Processes via S/4HANA.
1 Early Watch Analysis (EWA) data 2015
Total distribution of DIMP Usage inside and outside of original
DIMP Industries (Auto, A&D, EC&O & Mill)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public
Engineering & Construction, Aerospace & Defense & Mill
Bill of Service
Equipment Tools Management
Grouping , Pegging & Distribution
MRO Maintenance, Repair & Overhaul
Mill Products Digital Core
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public
All Automotive E2E Processes are in SAP S/4HANA 1511 Core
natively
Integrated Product and Process Engineering
Packaging Logistics
Executing Inbound Deliveries
Just in Time
Just in Sequence
Kanban: Enhancements for Automotive
Parts Interchangeabilities / Supersession
Production Backflush for Discrete Industries
Self-Billing (Inbound)
Evaluated Receipt Settlement
Scheduling Agreement Processing
Vehicle Management System
Digital Core
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Public
Key Business Innovations in SAP S/4HANA Enterprise Management
This is the current state of planning and may be changed by SAP at any time.
Material Requirements
Planning
Inventory
Management
Available To Promise &
Backorder processing
Capacity Planning
Material
Valuation
Industry solutions to
core
Universal
Journal
Central Finance
Re-architecting for
in-memory platform
Responsive user
experience design
Unifying functionality
in core
Sales Representative
Order Management & Billing
Procurement Clerk Material Planner
> 20
3 < 1
Laggards Best-in-class Target
Accelerated
Financial Close
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Public
The day of a life of a Material Planner
Thank youContact information:
John Oxenby
Solution Advisor
SAP Sweden
+46 733 58 77 88
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Public
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
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company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
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 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.