SAP S/4HANASimple LogisticsApril 2015

Holger Herrmann

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Internal

Disclaimer

This presentation outlines our general product direction and should not be relied on in making a purchasedecision. This presentation is not subject to your license agreement or any other agreement with SAP. SAPhas no obligation to pursue any course of business outlined in this presentation or to develop or release anyfunctionality mentioned in this presentation. This presentation and SAP's strategy and possible futuredevelopments are subject to change and may be changed by SAP at any time for any reason without notice.This document is provided without a warranty of any kind, either express or implied, including but not limitedto, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAPassumes no responsibility for errors or omissions in this document, except if such damages were caused bySAP intentionally or grossly negligent.

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3Internal

Why go for Simple Logistics?

Real time analytics at the lowest levelof granularity on primary transactionaldata, without aggregates

Increased business user productivitywith beautiful, role-based UIs andavailability on multiple devices

Optimized system landscape andreduced number of systems givescustomer high performance withlower TCO

Increased system throughput byeliminating data redundancies andreduced data footprint

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4Internal

What is SAP S/4HANA Simple Logistics?LoBs touched by the solution

SustainabilitySupply Chain Sourcing & ProcurementSales

Asset Management ServiceManufacturing R&D and Engineering

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5Internal

SAP S/4HANA Roadmap

DISCLAIMER: This map represents SAP’s current plan, but subject to change without any prior notification. Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines

Continuous innovations withoutdisruption in 2016 and beyond

Yearly innovation cycle

Quarterly innovation cycle

SAP S/4HANAManaged Cloud Edition

SAP S/4HANAPublic Cloud Edition

SAP S/4HANAOn-Premise Edition

SAP S/4HANAOn-Premise Edition

(next shipment)

TodayPlanned Innovations

Enablement of new architecture

Support of Professional Servicesincl. Sell-from-Stock, Plan-to-Procure, Procure to Payscenarios

Leverage new architectureacross broad scope

Support first logistic-centricscenarios, based on BAiO scope

Enable full scope for completelogistics scenarios (e.g.,production, warehousing, PLM)

Support logistic-centricscenarios, based on ERP scope

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6Internal

Inventory Management:Aggregates eliminated

MSTQ MSTE MSTB

MSSQ MSSA

MSKU MKOLMSKA MSPR

MSLB

MCHB MSTQH MSTEH MSTBH

MSSQH MSSAH

MSKUH MKOLHMSKAH MSPRH

MSLBH

MCHBH

MARCH MARDH

MATDOC

MARC MARD

Classic Suite S/4HANA

Aggregates History

MARC MARD

Masterdata

Simplify!

Transactionaldata

Inve

ntor

yta

bles

Mat

eria

lm

aste

r

on-the-flyaggregation

Document

26agggregate

tables

1document

table

+ redirect

MKPF/MSEG

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7Internal

Material Valuation

SIMPLE DATA MODEL» 4 tables remaining, no redundancies

» Clear separation of master data from transactional data

» Reduction of memory footprint

THROUGHPUT INCREASE» INSERT only on database level

» No locks for standard price valuation

Bus

ines

sS

uite

MATDOC ACDOCAMaterialPrices

Material

S/4

HA

NA

MARD

MARC

MBEW

OBEW

QBEW

OBEW

MSTQH

MSTEH

MSTBH

MSSQH

MSSAH

MSPRH

MSLBH

MSKUH

MSKAH

MKOLH

MCHBH

MARDH

MARCH

MSTQ

MSTE

MSTB

MSSQ

MSSA

MSPR

MSLB

MSKU

MSKA

MKOL

MCHB

MKPF

MSEG

MBEWH

OBEWH

QBEWH

OBEWH MLHD

MLPP

MLIT

MLCR

Document

MLPPF MLCRF

CKMLPP CKMLCR

Totals

CKMI1

Index

GLPCA

ZZFISLA

FAGLFLEXA

GLFUNCA

COFIS

BKPF

BSEG

COBK

COEPANEK

ANEP

GLPCT

ZZFISLT

FAGLFLEXT

GLFUNCT

COSP

COSS

COFIT

BSIMBSID

BSAD

BSIK

BSAK

BSIT

BSAT

BSIS

BSAS

Document

Totals Totals

Totals

Indices

Documents

BKPF

SIMPLE PROCESSES» Only one valuation method (Material Ledger)

instead of 2 (IM + ML)

Logistics(Quantities)

Logistics(Valuation via „MBEW)

Material Ledger(multi GAAP, multi currency) Accounting

Master Data Logistics(Quantities)

Material Ledger(multi GAAP, multi currency) Accounting

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8Internal

Principle of code push down in MRP Live

App-Server DB-ServerDispatcher

Read planning file entries

For every planning file entryRead 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

ReadEban

ReadPlaf

ReadEkpo

Afpo Vbbe EkkoMerge + Split

MRP planning logic

Plauf

Eban

Update planned orders

Update purchase requisitions

Planset 1

Planset 2

Planset 3

Merge + SplitInsertPlaf

InsertEban

InsertResb

ABAP post-processing (e.g.determine release strategy)

App-Server HANADispatcher

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9Internal

Material Requirements Planningoptimized by HANA

MRP RunPerformance improvement:

Scenario dependent up to 10 times fasterData Storage reduction by 5 timesNew mode supports procurement and in-houseproduction, delivery schedules and configurablematerialsClassic mode for subcontracting, capacityplanning and discontinuation

MRP Analysis

System analyzes the material flow of all materials inreal time and identifies:

Disruptions in the material flowThe impact of these issuesSolution proposals for decision supportThe remaining time-to-actionRole based KPI driven entryRunning on any deviceAdoptable and personalizable

Step1: Read

Step2: Algorithm(Netting, Lotsizing,..)

Step3: BOM Explosion/ConfigurationIn-house production, subcontracting

Step4: Write

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10Internal

Comprehensive Plan to Produce in ONE System

SalesOrderEntry

MRP Run +Constrained

PlanningInteractivePlanning

Release toProduction

ProductionExecution

Monitorand

Control

Planned Improvements» UI Harmonization

» CIF Simplification

» Master DataHarmonization

» Analytics

APO-PP/DS HANA Platformincl. Live cache

ERP HANA Platformincl. Live cache

CIF

HANA Platform incl. Live cache

PP/DS

ERP

Current functional model Planned

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11Internal

Sales Order Fulfillment Cockpit

• Provide internal salesrepresentative a singlesource of holistictransparency on salesorder fulfillment issues ondesktop and tablet, drivenby exceptions.

• Enables the clarification ofissues effectively andefficiently, by decisionsupport, collaboration, andappropriate actions.

• Exception based workiingmodel, ‚no touch order‘

2. Process Innovation

Real-time dataintegration

• Single-query access todata

1. Performance Value

Value Creation through:

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12Internal

ATP – Available to Promiseoptimized by HANA

ERP :Simple product availability check andvery simple product allocation checkManual material determination andsemi-manual plant substitution (one-on-one)Material-/plant-based backorderprocessing for sales ordersSimple transportation and shipmentscheduling based on days (and hours)

S4HANA:Very fast product availability check andUsecase-driven product allocation checkIntelligent and fully automated selection ofbest confirmation based on current ATP-situation and taking into account existingmaster data like:

Alternative plantsSubstitutable materials

Backorder processing with intuitiverequirement classification and simpleselection criteria.Automatic exception handling.Simple ERP-based transportation andshipment scheduling

Additionally:Easy to use and device independent ATPexplanation and simulation AppInteractive backorder processingUnified and simplified data-model.No distributed data.

Simplicity

PerformanceFunctionalDepth

ERP

APO

S4HANA

APO:Very fast product availability check andsophisticated product allocation checkAutomatic and condition basedproduct and/or location substitutionSophisticated and highly genericbackorder processingSophisticated transportation & shipmentscheduling on seconds

ATP

(sta

tus

quo)

Combine the best of both worlds

Adva

nced

ATP

(pla

nned

)

Combine the best of both worlds

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Internal

Purchasing Processes

» Application tailored to the users’ needs

» SAP Fiori Launchpad that provides real time andrelevant KPIs for procurement issues

» Multi-device solution: available on desktop, tabletand smartphone

Key Features and Benefits

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14Internal

SAP S/4HANA Roadmap

DISCLAIMER: This map represents SAP’s current plan, but subject to change without any prior notification. Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines

Continuous innovations withoutdisruption in 2016 and beyond

Yearly innovation cycle

Quarterly innovation cycle

SAP S/4HANAManaged Cloud Edition

SAP S/4HANAPublic Cloud Edition

SAP S/4HANAOn-Premise Edition

SAP S/4HANAOn-Premise Edition

(next shipment)

TodayPlanned Innovations

Enablement of new architecture

Support of Professional Servicesincl. Sell-from-Stock, Plan-to-Procure, Procure to Payscenarios

Leverage new architectureacross broad scope

Support first logistic-centricscenarios, based on BAiO scope

Enable full scope for completelogistics scenarios (e.g.,production, warehousing, PLM)

Support logistic-centricscenarios, based on ERP scope

Disclaimer: This roadmap represents SAP’s current plan, but subject to change without any prior notification.Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15Internal

SAP S/4HANA Simple Logistics – Key Innovations

This is the current state of planning and may be changed by SAP at any time.

MaterialRequirements Planning

Fast MRP run, and newworking model for MRPcontrollers based on decisionsupport.

InventoryManagement

Simplified data modelresulting in increased through-put, flexible analytics at themost granular level.

MaterialValuation

Principle of One, scalablematerial valuation capabilities,utilizing Material Ledger, thatway customers can use multi-currencies, valuation methodsper different accounting lawslike GAAP.

Available To Promise &Backorder processing

Enhance ERP by advancedATP capabilities in APO, newcoding to make it better,innovation benefit asfunctionality will be refreshed.

CapacityPlanning

New deployment optionfor bringing PP/DS onERP, reducing integrationefforts, allowingseamless master data &UI harmonization.

Order Management & BillingEnable monitoring of end-to-end order-to-cash process &take actions for any exceptions, information on theexceptions to resolve the issues, lower TCO due to datamodel simplification, support for the most recent versionsof business features such as FSCM Credit Management,GTS Foreign Trade, SFIN Revenue Accounting, newanalytical capabilities.

ProcurementIncreased efficiency in theProcure-to-Pay processes, newAnalytical Apps & Spend KPI’s,Ariba Network Integration forPO Order and IV.

SAP S/4HANASimple LogisticsApril 2015

Holger Herrmann