S/4HANA -Die neue Generation der SAP Business Suite ... · S/4HANA -Die neue Generation der SAP...
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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
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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?
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Customer
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
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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
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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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Customer
How Does SAP S/4HANA Address Today’s Supply Chain Challenges
Re-architecting for visibility and agility
Responsive user experience design
Unifying functionalityin core
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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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Customer
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Customer
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
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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
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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)
IntegratedExtended WarehouseManagement
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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
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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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Customer
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.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Customer
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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
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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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Customer
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Customer
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?
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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
With traditional system:
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
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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
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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)
Accelerated Material Requirements Planning
© 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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Customer
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/ConfigurationIn-house production, subcontracting
Step4: Write
MRP RUN MRP Analysis
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Customer
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Customer
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 40Customer
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)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 48Customer
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 49Customer
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 62Customer
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
With traditional system:
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 63Customer
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 64Customer
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