S/4HANA -Die neue Generation der SAP Business Suite ... · S/4HANA -Die neue Generation der SAP...

S/4HANA - Die neue Generation der SAP Business Suite – Innovative Prozesse in der LogistikJürgen Puhane, S/4HANA Pre-Sales ExpertNovember 2016

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

Digital Transformation in Supply Chains

SITUATION TODAY

FUTURE SITUATION

Capacity focused production

Capability focused production

Moving full pallets on full trucks to serve large customer segments

Serving a customer segmentof ONE with a lot size of ONE

Flexible fast-reactingdigital business networks

Time-consuming sequential processes


Some Very Familiar Issues Still Plague Today’s Supply Chains

OPAQUESLOW DISCONNECTED RIGID

Inability to re-plan and re-run processes during the day

No easy way to quickly share information with suppliers

Low visibility into downstream customer demand

Limited ability to respondto real-time issues

What is the underlying problem that is making these issues all too common?


Technology Limitations of the Past

DATA MODELING

Constant tuning and updating of aggregates, indices and other forms of redundant data structures

Complexity leaves no time

for Supply Chain Executives to focus

on the customer

Complex decision making

Managing transaction volumes, data integrity and system responsiveness to users

Complex processes

Building and maintaining reporting and interfacelayers to connect multiple systems and solutions

Complex architectures

BATCH PROCESSING

SYSTEM INTEGRATION


Simplification of the underlying data model

MSTQH MSTEH

MSTBH MSSQH MSSAH

MSPRHMSLBH MSKUH

MSKAH

MKOLH

MCHBH MARDH

MARCHMSTQ MSTE

MSTB MSSQ MSSA

MSPR MSLB

MSKU MSKA

MKOLMCHBMKPF

MSEG

MARD

MARCMasterData

MAT DOC

SAP Inventory Management with aggregates and indicesSAP S/4HANA in Inventory Management

no indices no aggregates no redundancies


Introduction of Innovation OptionsConversion to Simplified Data Model with SAP S/4HANA CORE

Sales Order Management and Pricing Financials

Materials and Inventory Management – Valuation View Materials and Inventory Management – Quantities View


How Does SAP S/4HANA Address Today’s Supply Chain Challenges

Re-architecting for visibility and agility

Responsive user experience design

Unifying functionalityin core


SAP S/4HANANext-Generation Business Suite

LogisticsProduct Lifecycle Management (PLM)

Logistics Execution (LE)

Materials Management (MM)

Quality Management (QM)

Sales and Distribution (SD)

Financials

HCM

» Major Simplifications in

Inventory Management

Material Requirements Planning

Capacity Planning

Sales and Distribution

Procurement

Finance

» Complemented by capabilities of

SCM

CRM

PLM

SRM

» Supporting digital trends like Internet of Things, Business Networks, etc.

» Localization available for 63 countries and 38 languages

Logistics General (LO)

Plant Maintenance (PM) Customer Service (CS)

Production Planning & Control (PP) Project Management (PS)

Environment, Health & Safety (EHS) Others like Intrastat (GTS)…

Industry specific Functions (in Core):

Discrete Industries – Automotive, High Tech, IM&C, A&D, Mill Products, Mining,Chemicals

Th

e D

igit

al C

ore


SAP S/4HANA 1610Key Innovations to Faster Adoption

Existing & enhanced innovationsNew innovations

Advanced Availability to Promise

Integrated Extended Warehouse Management

Effective Order Management & Billing

EfficientProcurement

Real time Inventory Management & Material Valuation

Integrated Quality Management

Entire S/4HANA Financescope included in the core

Embedded Software in Product Development

Consistent Fiori UX for SAP S/4HANA

Industry to Core (DIMP, Oil, Retail)

Optimized Portfolio and Project Management

Accelerated Material Requirements Planning

Real-time Inventory Management


Business process viewHigh-volume Inventory Backflush

With SAP S/4HANA:

Real-time inventory information, including early error detection. Capturing the lowest level of granularity in inventory stock keeping ,

including where-used information per unit (lot size 1). Drastic decrease of stock levels (safety stock).

With traditional system: Throughput limitations cause queuing of data entry. Limited inventory visibility increases error rate and

supply shortages (e.g., sub-daily deviations). Best practice: Increase safety stock.

Order 1

Order 2

Order 3

BOM 1

BOM 2

BOM 3

Run inventory

updates at night

Real-timedata entry

Business process Production orders are based on BOMs. Production confirmations capture progress w.r.t.

components issued and activities provided. Backflush automates confirmation postings

in high-volume scenarios.

Safety stock

Time

Qua

ntity

Reorderpoint

Wee

kly

Rep

leni

shm

ent

Buffers

Daily collectivegoods issues

Just-in-time

Safety stock

Time

Qua

ntity Reorder

point

Sub-dailyreplenishment Continuous

goods issue postings

Traditional With SAP S/4HANA

Process excellence

Reinvented confirmation strategy with SAP S/4HANATraditional system


Inventory Management & Material ValuationKey Innovation

Technical Innovation

Simplified Data Model (MATDOC = MKPF + MSEG + add. Columns for fast calculations)

No aggregates: On-the-fly aggregation of inventories

Insert only on DB Level, No DB locks anymore.

Insert only on application level- Elimination of standard price (SPREIS) locking (taking rounding differences into account)

One valuation method (Material Ledger) instead of two (MM-IM and ML)

Use Cases enabled

Parallel processingof inventory postings

High volume Backflush (Parallel Production combined postings)

Ice Truck Scenario (Combined postings from offline devices)

Internet of Things Scenarios (real-time goods movements posting)

Segment of one (Smaller lot sizes passing through logistic operations)

Business Processes improved

Valid Inventory Management(inventory turnover, inventory costs)

Accurate Material Requirement Planning

Profitable Procurement processes

Exact Sales Order Fulfillment and Delivery

Valuable Production Execution

Easier implementation of new processes (like Just-In-Time, Kanban)

…addressing the digital business as digital core

Accurate inventory


SAP S/4HANA Enterprise ManagementKey Innovations – Material Valuation

Business Benefits Outlook

» Increased throughput by locking optimization for moving average priced materials

» Introduce new method: periodic price calculation

Capabilities

» Principle of One – one valuation method

» Analytics - analytics performed on primary data

» Clear separation of master data from transactional data

Inventory ManagementMaterial Documents,

Quantities

FinancialsAccounting Document,

Values

Material LedgerMaterial Prices, multi-GAAP,

multi-Currency

DEMO(Real-Time Inventory Management)

https://wpb-download.sapdemocloud.com/democloud/wa/main/~tag/published/trainer/9_4_2_439/trainer.html?show=project!PR_F3EB8923016E0DA7:pres

IntegratedExtended WarehouseManagement


Unified Functionality in the CoreExtended Warehouse Management

Integration steps required between EWM and ERP

1. Configuration of communication between ERP and EWM using qRFC

2. Definition of a warehouse in ERP and EWM

3. Integration of the warehouse with the organizational structure of ERP

4. Initial master data transfer from ERP to EWM

5. Creation and activation of a Core Interface (CIF) integration model for the master data transfer from ERP to EWM

CURRENT FUNCTIONAL MODEL S/4HANA 1610 RELEASE

Extended Warehouse Management• Inventory Management Optimization (e.g. Slotting)• Inbound Process Optimization (e.g. Deconsolidation)• Outbound Process Optimization (e.g. Waves)• Material Flow Control• Yard Management (e.g. TU handling, DAS)• Labor Management• Value Added Services• Kitting• Cross Docking• Warehouse Billing

Basic Warehouse Management• Inventory Management• Inbound Process• Outbound Process• Internal Warehouse Movements• Physical Inventory• Reporting

One System for all warehousing

SAP S/4HANA SUPPLY CHAIN WITH EMBEDDED EWM

Extended Warehouse Management

SUITE

PRODUCTS

Basic Warehouse Management

SAP ERPLE-WM SAP EWM

Core Interface CIF


Traditional system Reinvented Business Processes with SAP S/4HANA

Business process viewIntegrated Extended Warehouse Management

With SAP S/4HANA:

One System: Directusage of master data and Support 40digit material number

Avoid data redundancy: Avoid redundant objects and Direct access to central objects

Simplification and reduction of Data Redundancy

With traditional system:

Complex Processes to align multifaceted supply chain realities and difficult economic conditions

Lack of end-to-end insight and visibility with disparate systems and processes

Analysis based on past performance and no real-time simulation capability

Scan VAS Picking

Consolidation

Goods Receiving Shipping

Cross Docking

VAS

Warehouse Management

3D Printing & in-house production

Telematics Data

RFID Item Level

3D Scan, balance

Smart robots

Autonomous fork lifter /Indoor positioning

Value-Added Services (VAS): assembling products, packing products, labeling, or kitting

Storage

Stock posting change

Inspection Lot

Check Pending Inspection lots and record

inspection results

Capture usage decision

Stock posting change

EWMECC

Select stocks based on criteria

Create QIE document per HU

Create Quality Notification for Material and batch

Update QIE Document

Read QIE Document by External Number

Decide Quality Inspection Document

Stock Posting

QRFC

QRFC

QRFC

RFC

RFC

Bac

kgro

und

Job

QIE: Quality Inspection EngineHU: Handling Unit

TraditionalStrategy

NewStrategy

Process excellence


Re-Imagine Products

© 2014 SAP SE or an SAP affiliate company. All rights reserved.

Company

Solution

Process/Technology Innovation

Benefits

Still is a leading supplier of forklift trucks, platform trucks and tractors plus the latest intra-logistics systems.

Situation: Still is evolving from a pure product to a services company.

• Still cubeXX concept forklift truck

• SAP HANA Cloud Platform

• SAP Extended Warehouse Management (EWM)

• Mobile app for warehouse worker

• Efficient, fast and save logistics processes

• Reduced time effort for material handling

• Also applicable for fleet management optimization

• The on-board IoT connector connects the forklifttruck with cyber physical systems and cloud apps.

• The warehouse worker uses a smart device tomanage tasks between people and machines.

• A 3D picture of the environment is used for orientation and the truck positioning.

• The truck directly receives warehouse tasks fromSAP EWM.


http://www.timeslice-projects.de/wp-content/uploads/110629_CubeInMotion_Bild01.jpg

http://www.timeslice-projects.de/wp-content/uploads/110629_CubeInMotion_Bild01.jpg

References/SAP_Still_Video_Eng_Master_GM_360p.mp4

References/SAP_Still_Video_Eng_Master_GM_360p.mp4

https://www.youtube.com/watch?v=xJ-1psHSTbI

https://www.youtube.com/watch?v=xJ-1psHSTbI


SimplerData Model

Reduction Data RedundancyDirect Read of SAP S/4HANA Master Data

Purchase Order

Replicate OrdersExpected Goods

Receipts

Create EWMInbound Delivery

Purchase Order

Inbound Delivery

ERP EWM

Create EWMInbound Delivery

Inbound Delivery

Sales Order Sales Order

ERP EWM

Outbound Delivery

Outbound DeliveryRequest

EWM Outbound Delivery Order

Pick

Pack

…

Outbound Delivery

EWM Outbound Delivery Order

PickPack

Purchase OrderProduction Order

ERP EWM

Inbound Delivery

Inbound DeliveryNotification

EWM Inbound Delivery Order

Unload

Put away

…

Inbound Delivery

EWM Inbound Delivery Order

UnloadPut away

Purchase OrderProduction Order

Material Posting Material Posting

ERP EWM

Outbound Delivery

Posting Change Request

PostingChange

OutboundDelivery

Posting Change


SAP S/4HANASAP EWM & SAP S/4HANA – Outlook

SAP EWM embedded in SAP S/4HANA*

New deployment option for our customers

Small & midsize warehouses; production warehouses

» De-central EWM (integrated to SAP ERP or SAP S/4HANA) is planned to be a long-term valid deployment option for EWM for good reasons (e.g. regional EWM systems, risk mitigation, specific planned down-times, scale-out for large DCs , multi-ERP connected; different release cycles; proximity to warehouse (MFS); ..)

» De-central EWM and central S/4HANA-EWM are planned to share a common Core of Warehouse Management FunctionsThis common Core is planned to evolve over time with new functions in both EWM options.

» De-central EWM and central SAP S/4HANA-EWM are planned to have different technical integration features with SAP ERP, but identical integration with other SAP systems (e.g. GTS, TM, ..)

» De-central EWM and central SAP S/4HANA-EWM are planned to cover the same business scenarios & processes with only minor exceptions e.g. central EWM can only integrate with local ERP client, no multi ERP client integration will be possible as required in some LSP scenarios

* See Simplification List

WH*

IntegratedEWM

LES (WM)

EWM (decentral) On-Premise

Efficient Procurement


Key Innovations in SAP S/4HANA Sourcing and Procurement

Easily search for a specific term –

such as a supplier, material,

or rate

Instant search

Get a wide array of real time

analytics and receive alerts from key performance

indicators.

Embedded Analytics

Collaborate with suppliers and

exchange documents, orders and

invoices

Native Integration


Without SAP S/4HANA

WithSAP S/4HANA

MaterialSearch

Isolated displays of documents with no

ability to search across all documents

Search for a material, and drill down to

uncover suppliers that are delivering the same

material and can provide alternatives

SupplierEvaluation

Access to real time supplier metrics like procurement spends, delivery dates,…etc to

determine supplier readiness

Analytics requires a data warehouse with noaccess to real time

supplier insights

SupplierCollaboration

A separate add-on is used to integrate into the

Ariba Network adding complexity to IT systems

Native integration with the SAP Ariba Business

Network for real-time supplier collaboration

SpendManagement

No easy way to measure and track spend across

different suppliers

Advanced dashboards allow easy tracking and benchmarking of spend

Sourcing and Procurement Business Scenario

You are a sourcing officer working for a national chain

that just unveiled a new successful promotion.

Promotion generated strong customer demand and now

its suppliers are struggling to keep up. Can you fix it?


Traditional System – Buyer & Supplier Collaboration Reinvented Business Processes with SAP S/4HANA

Business process viewEfficient Procurement

With SAP S/4HANA:

Full transparency of process status per PO & INV line item

Real-time updates of business process information

Increased process efficiency for Buyers and Suppliers

Short cycle times

Opening up business opportunities for the company’s debit / credit accounting

Data integrity of business information across systems

Direct exchange of business information


Loose collaboration between suppliers and buyers

Many manual interfaces

Error-prone processes

Inefficient collaboration due to limited transparency

Long cycle times

Difficult to identify new business opportunities

Remittance Advice

Goods Receipt

Purchase Order Purchase Order confirmation

Ship Notice

Invoice

Clearing ofopen items

CC-Invoice

Invoice statusupdate

(Payment date)

Payment proposalAgree on Earlypayment

Cycle Time Cycle Time

Process excellence

x Waiting Time

End DateStart Date

1Purchase

OrderPurchase Order confirmation

Goods Receipt

InvoiceCC-Invoice

Remittance Advice Clearing ofopen items

2

3

4

BUYER SUPPLIER

TraditionalStrategy

NewStrategy


SAP S/4HANA for Sourcing & Procurement FunctionOperational Procurement

» Leverage Catalog Buying in Self service requisitioning processes

» Monitor critical business events, purchasing spend and supplier performance in Procurement Overview Page

» Increase supplier relationship and performance by using Activity and Task Management

» Leverage Purchasing Category in real-time analytics to monitor the KPIs along business responsibilities

» Visualize planned spend versus actual spend per purchasing category

» New Fiori Apps for Sourcing and Contract Management: Manage Request for Quotation and Supplier Quotation

» Create Sourcing Request in SAP Ariba Sourcing out ofSAP S/4HANA

» Structure and merge material groups into the new business entity Purchasing Category

Functional Capabilities

User Experiences

Technical Capabilities


Purchase Orders

Buyer & Supplier CollaborationProcure to Pay Process

Goods Receipts

Ship Notice

Invoices

Invoice Status Update

Purchase Order

Invoice

Payment

PO confirmation

Request for Quotation / Supplier

Quotation Quote / Award

Digital Handshakes

Request for Quote

CC-Invoice; MM invoices

Payment Proposal

Early Payment

SourcingCollaboration

OrderCollaboration

BUYER SUPPLIER

Remittance Advise

InvoiceCollaboration

DiscountManagement

InvoiceCollaboration

DEMO(Procurement Overview Page)

https://wpb-download.sapdemocloud.com/democloud/wa/main/~tag/published/trainer/9_4_2_439/trainer.html?show=project!PR_96FA23F77112C695:guided#show=project!PR_96FA23F77112C695:guided&hash=2

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Customer 36

Business Challenges

» Increasing customer service

» Low inventory accuracy

» Revenue losses due to stock-outs

» On-time delivery performance

» Missing parts in production

Capabilities

» 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 10 times faster)

» Demand information is propagated faster through the supply chain

Business Benefits

» 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

Material Requirements Planning


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


Step1: Read

Step2: Algorithm (Netting, Lotsizing,..)

Step3: BOM Explosion/ConfigurationIn-house production, subcontracting

Step4: Write

MRP RUN MRP Analysis


compensate for variations in the productionprocess such as machine breakdowns

help to stabilize any fluctuations in productioncapacities and lead times

Planning Operation

Buffering in Manufacturing

Operation 1

Operation 2

Operation 3

2

1

Production Order

EarliestStart Date

LatestEnd Date

LatestStart 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

EarliestEnd Date

in case the supplier is unable todeliver 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

LatestEnd Date

1 2 3 4

EarliestEnd Date


Real-Time Manufacturing Planning with the MRP Run

Sales Orders Work OrdersInventory

Purchase Request Production RequestTransfer Request

MRP Run

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

Time


Material Shortage

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 .

2. Process Innovation

Real-time data integration

• Single-query access to data

1. Performance Value

Value Creation through:

Enables immediate detection of material

shortages based on real-time 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.

DEMO

(Accelerated Material Requirements Planning)

https://wpb-download.sapdemocloud.com/democloud/wa/main/~tag/published/trainer/9_4_2_439/trainer.html?show=project!PR_5B67785FED7DAD80:guided#show=project!PR_5B67785FED7DAD80:guided&hash=2


You Can’t Buy Happiness but You Can Buy a BikeA very simple MRP demonstration

You are a production controller and you get a sales order to

build one bicycle by noon today

Internal TransferChain Ring

Production Order 2x Wheels

Production Order Bicycle

Production Order Frame

Requirement Date

Start Transfer

9:00am 10:00am 11:00am 12:00am8:00am

Internal TransferChain Ring

ProductionOrder

1x Wheel

Production Order Bicycle

Production Order Frame

Start Transfer

Production Order

1x Wheel

Requirement Date

Resource Occupied9:30-10:30

9:00am 10:00am 11:00am8:00am 12:00am

Infinite Planning In MRP

Finite Planning in PP/DS

BOM

Internal Transfer

In-house Production

2x Wheels

Chain Ring

Frame

Bottle NeckResource Unavailable:9:30-10:30


Unified Functionality in the CoreProduction Planning and Detailed Scheduling

ERP + PP/DS

1. Run planning in SAP S/4HANA (constrained + unconstrained)

Costly andcomplex architecture

Latency and error prone

Complex for the user

Easy and simple for the user

Faster and responsiveproduction planning

Reduced totalcost of ownership

CURRENT FUNCTIONAL MODEL 1610 RELEASE

1. Run infinite unconstrained planning in ERP (Frame + Gearbox)

2. Run finite and constrained planning (Wheels)

3. Review results in ERP

4. Review results in APO PP/DS

5. Consolidate and reconcile finite and infinite production plans

SAP ERPSAP APO

PP/DS

Core Interface CIF

DEMO(Create Optimal Orders for Shipment)

IntegratedQuality Management


Traditional system Reinvented Business Processes with SAP S/4HANA

Business process viewIntegrated Quality Management – End to End, Closed Loop Quality Management

Quality master data

Quality inspections

Quality planning

SAP QM

Quality audits

Complaint management

Unified quality data

Quality inspections

Quality notification

Quality audits

complaint management

Issue tracking

Activity management

Third-party collaboration

IoT connectivity

Enterprise performance

Supply chain performance

Root cause analysis

Predictive quality

SAP S/4HANA

With SAP S/4HANA:

Simplified QM processes and SAP Fiori apps

Role-based Dashboards for all quality users

Visual QM with Visual Enterprise and 3D model

Standardized complaint and corrective-and-preventive-action processes and integrated R&D and engineering


Lack of end-to-end insight and visibility with disparate quality systems and processes

Analysis based on past performance instead of proactively based on asset and production performance

No real-time simulation or predictive capabilityProcess excellence

TraditionalStrategy

NewStrategy


SAP S/4HANA 1610Integrated Quality Management

Functional Capabilities

User Experiences

Technical Capabilities

» Support for core QM processes with new roles with SAP Fiori user experience (UX) for:

– Quality technicians, quality engineers, quality planners, quality managers, quality auditors, calibration technicians

» Integrated search functionality in SAP Fiori with further navigation targets

» Easy-to-use user interfaces for recording the results of different types of inspection characteristics

» First scope concerning the simplified inspectionprocess in EWM within SAP S/4HANA

» CDS views for quality inspections and master data


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