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S/4HANA Materials Management and Operations Public

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S/4HANA Materials Management and Operations

Public

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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.

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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

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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

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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

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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)

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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)

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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)

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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)

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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)

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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)

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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

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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)

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Engineering & Construction, Aerospace & Defense & Mill

Bill of Service

Equipment Tools Management

Grouping , Pegging & Distribution

MRO Maintenance, Repair & Overhaul

Mill Products Digital Core

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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

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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

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The day of a life of a Material Planner

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Thank youContact information:

John Oxenby

Solution Advisor

SAP Sweden

+46 733 58 77 88

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© 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.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate

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.