SAP S/4HANA Supply Chain. Stefan Batzdorf, S/4HANA Pre-Sales Expert September 2016

Transcription

1 SAP S/4HANA Supply Chain Stefan Batzdorf, S/4HANA Pre-Sales Expert September 2016

2 Digital Transformation in Supply Chains SITUATION TODAY Capacity focused production Time-consuming sequential processes Moving full pallets on full trucks to serve large customer segments FUTURE SITUATION Capability focused production Flexible fast-reacting digital business networks Serving a customer segment of ONE with a lot size of ONE 2

3 Some Very Familiar Issues Still Plague Today s Supply Chains SLOW DISCONNECTED OPAQUE 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 respond to real-time issues What is the underlying problem that is making these issues all too common? 3

4 Technology Limitations of the Past DATA MODELING Constant tuning and updating of aggregates, indices and other forms of redundant data structures Complex decision making BATCH PROCESSING Managing transaction volumes, data integrity and system responsiveness to users Complex processes Complexity leaves no time for Supply Chain Executives to focus on the customer SYSTEM INTEGRATION Building and maintaining reporting and interface layers to connect multiple systems and solutions Complex architectures 4

5 How many red do you see? You ll get 2 sec

6 Visualisatie, count the red dots Experience Create 6

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8 Once again..?

9 Experience Create 9

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11 Simplification of the underlying data model MKPF MARD MSTQ MSPR MSTE MSLB MCHB MKOL MSTQH MSLBH MSTEH MSKUH MARCH MSPRH MKOLH MSEG MAT DOC Master MARC Data MSTB MSKU MSSQ MSSA MSKA MSTBH MSSQH MSSAH MSKAH MCHBH MARDH SAP S/4HANA Inventory Management in Inventory Management with aggregates and indices no indices no aggregates no redundancies 11

12 Introduction of Innovation Options Conversion 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 12

13 How These Challenges Manifest in The Real World 7 Car Models 550 Daily Output per model 3,500 BoM materials per model, on 10 levels, 60% common parts >20M Material movement transactions per day Locked tables prevent movements No parallel postings High volume back flush = batch jobs and bulk postings with delay No real-time transparency on stock and on exact material flow: how to identify defective parts No actual costs and intercompany profit transparency Need to split system load into multiple distracted systems 13

14 Throughput (items/sec) Simplifications are the enabler for throughput increase of 10 up to 25 Parallel postings of large material documents Negative stock not allowed No database locks any more large OEM back-flush requirement (example) SAP Business Suite on SAP HANA Parallel Processes Automotive scenario test case Reporting point backflush with transfer posting of 100 items each 60% common parts 14

15 How Does SAP S/4HANA Address Today s Supply Chain Challenges Re-architecting for visibility and agility Responsive user experience design Unifying functionality in core 15

16 SAP S/4HANA Enterprise Management, on-premise edition 1511 Highlights of Key Business Innovations Re-architecting for in-memory platform Universal Journal Material Requirements Planning Inventory Management Material Valuation Accelerated Financial Close > 20 3 < 1 Laggards Best-in-class Target Sales Representative Order Management & Billing Procurement Clerk Material Planner Responsive user experience design Central Finance Available To Promise & Backorder processing Capacity Planning Industry solutions to core Unifying functionality in core This is the current state of planning and may be changed by SAP at any time. 16

17 The Digital Core SAP S/4HANA Next-Generation Business Suite Financials HCM Logistics Logistics General (LO) Sales and Distribution (SD) Logistics Execution (LE) Plant Maintenance (PM) Production Planning & Control (PP) Environment, Health & Safety (EHS) Industry specific Functions (in Core): Product Lifecycle Management (PLM) Materials Management (MM) Quality Management (QM) Customer Service (CS) Project Management (PS) Others like Intrastat (GTS) Discrete Industries Automotive, High Tech, IM&C, A&D, Mill Products, Mining, Chemicals» 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 17

18 SAP S/4HANA 1610 Key Innovations to Faster Adoption advanced Availability to Promise Effective Order Management & Billing Entire S/4HANA Finance scope included in the core Accelerated Material Requirements Planning Efficient Procurement Embedded Software in Product Development Real time Inventory Management & Material Valuation Integrated Extended Warehouse Management Optimized Portfolio and Project Management Integrated Quality Management Industry to Core (DIMP, Oil, Retail) Consistent Fiori UX for SAP S/4HANA Highlights Existing & enhanced innovations New innovations 18

19 Real-Time Inventory Management Integrated Extended Warehouse Management

20 Quantity Real Time Inventory Management Business Challenges» Low throughput prevents real-time inventory» Missing embedded and real-time analytics» Missing comprehensive data model» Process & data redundancies increase effort Business Benefits» Improve on-time delivery» Increase inventory turnover» Reduce cost of inventory» Single source of truth of inventory in one system Capabilities» Real-time processing of inventory postings and visibility of inventory values» Posting of finest granularity like handling unit, lot size 1, sensor data» Decreased stock levels (e.g. reduce buffers) due to increased transparency» Easy to consume data model supporting flexible analytics» Manage the changing demand for smaller lot sizes passing through the logistic operations Weekly Replenishment Quantity Time Safety stock Daily collective goods issues Buffers Reorder point Sub-daily replenishment Time Safety stock Continuous goods issue postings Just-in-time Reorder point 20

21 Simpler Data Model Inventory Management Example Traditional disk-based ERP In-memory ERP Simpler Data Model Aggregates History Document MSTQ MSLB MSTQH MSLBH MKPF MSTE MSKU MSTEH MSKUH MSEG On the fly aggregation MSTB MSKA MSTBH MSKAH Inventory movements MSSQ MSSA MKOL MCHB MSSQH MSSAH MKOLH MCHBH Material Master Master data with Stock aggregates MARC MARD MATDOC Material Document MSPR MSPRH MARDH Master data without Stock aggregates MARCH MARCH MARDH MARC MARD Master data Transactional data 26 aggregate tables 21

22 Unified Functionality in the Core Extended Warehouse Management CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE SAP ERP LE-WM Core Interface CIF SAP EWM SAP S/4HANA SUPPLY CHAIN WITH EMBEDDED EWM SUITE PRODUCTS Extended Warehouse Management 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 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 Basic Warehouse Management One System for all warehousing Basic Warehouse Management Inventory Management Inbound Process Outbound Process Internal Warehouse Movements Physical Inventory Reporting 22

23 Background Job Business process view Integrated Extended Warehouse Management Traditional system Reinvented Business Processes with SAP S/4HANA ECC EWM Stock posting change Inspection Lot QRFC RFC Select stocks based on criteria Create QIE document per HU Create Quality Notification for Material and batch Update QIE Document Autonomous fork lifter / Indoor positioning Smart robots 3D Scan, balance Warehouse Management VAS Picking VAS Storage Consolidation Cross Docking Goods Receiving Shipping Scan 3D Printing & in-house production Check Pending Inspection lots and record inspection results RFC Read QIE Document by External Number RFID Item Level Capture usage decision QRFC Decide Quality Inspection Document Telematics Data Value-Added Services (VAS): assembling products, packing products, labeling, or kitting Stock posting change With traditional system: QRFC 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 Stock Posting Traditional Strategy New Strategy Process excellence 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 QIE: Quality Inspection Engine HU: Handling Unit 23

24 DEMO (Real-Time Inventory Management)

25 Reduction Data Redundancy Direct Read of SAP S/4HANA Master Data Simpler Data Model ERP EWM ERP EWM Purchase Order Replicate Orders Inbound Delivery Expected Goods Receipts Create EWM Inbound Delivery Purchase Order Create EWM Inbound Delivery Inbound Delivery Sales Order Outbound Delivery Outbound Delivery Request EWM Outbound Delivery Order Pick Pack Sales Order Outbound Delivery EWM Outbound Delivery Order Pick Pack ERP EWM ERP EWM Purchase Order Production Order Inbound Delivery Inbound Delivery Notification EWM Inbound Delivery Order Unload Put away Purchase Order Production Order Inbound Delivery EWM Inbound Delivery Order Unload Put away Material Posting Outbound Delivery Posting Change Request Posting Change Material Posting Outbound Delivery Posting Change 25

26 SAP S/4HANA SAP EWM & SAP S/4HANA Outlook SAP EWM embedded in SAP S/4HANA* New deployment option for our customers Small & midsize warehouses; production warehouses WH* Integrated EWM LES (WM) EWM (decentral) On-Premise» 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 Functions This 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 26

27 advanced Availability to Promise Accelerated Material Requirements Planning

28 Material Requirements Planning Business Challenges» Increasing customer service» Low inventory accuracy» Revenue losses due to stock-outs» On-time delivery performance» Missing parts in production 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 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 28

29 Buffering in Manufacturing Production line in case the supplier is unable to deliver the shipments on time Raw Material Supply 1 Operation 1 help to stabilize any fluctuations in production capacities and lead times Coating Loading and Dispatch 2 Operation 2 Operation compensate for variations in the production process such as machine breakdowns Production Proposal Planning Operation Start Date Earliest Start Date Lead Time Earliest End Date End Date crash point impossible to confirm the close delivery time to the customer, as you confirm always the delivery date based on buffer times Production Order Lead Time x Buffer Time Latest Start Date Latest End Date Earliest End Date Latest End Date 29

30 Real-Time Manufacturing Planning with the MRP Run Inventory Sales Orders Purchase Orders Work Orders MRP Run MRP Run MRP Run MRP Run 06:00 AM 08:00 AM 10:00 AM 12:00 AM 02:00 PM Time MRP Run MRP Controller Analyze the current situation based on realtime information and focus on single shortages Transfer Request Purchase Request Production Request 30

31 Material Shortage Value Creation through: Enables immediate detection of material shortages based on realtime 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. 1. Performance Value Real-time data integration Single-query access to data 2. Process Innovation 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. 31

32 DEMO (Accelerated Material Requirements Planning) (Release for Delivery)

33 You Can t Buy Happiness but You Can Buy a Bike A very simple MRP demonstration You are a production controller and you get a sales order to build one bicycle by noon today Infinite Planning In MRP Requirement Date Production Order Bicycle BOM Start Transfer Production Order 2x Wheels Internal Transfer Chain Ring Production Order Frame 8:00am 9:00am 10:00am 11:00am 12:00am Frame 2x Wheels Finite Planning in PP/DS Requirement Date Production Order Bicycle Chain Ring Start Transfer Production Order 1x Wheel Resource Occupied 9:30-10:30 Production Order 1x Wheel In-house Production Bottle Neck Resource Unavailable: 9:30-10:30 Internal Transfer Chain Ring Production Order Frame Internal Transfer 8:00am 9:00am 10:00am 11:00am 12:00am 33

34 Unified Functionality in the Core Production Planning and Detailed Scheduling CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE SAP ERP SAP APO PP/DS ERP + PP/DS Core Interface CIF 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 1. Run planning in SAP S/4HANA (constrained + unconstrained) Costly and complex architecture Latency and error prone Complex for the user Easy and simple for the user Faster and responsive production planning Reduced total cost of ownership 34

35 DEMO (Create Optimal Orders for Shipment)

36 Efficient Procurement

37 Key Innovations in SAP S/4HANA Sourcing and Procurement Instant search Embedded Analytics Native Integration Easily search for a specific term such as a supplier, material, or rate Get a wide array of real time analytics and receive alerts from key performance indicators. Collaborate with suppliers and exchange documents, orders and invoices 37

38 Sourcing and Procurement Business Scenario Isolated displays of documents with no ability to search across all documents Analytics requires a data warehouse with no access to real time supplier insights A separate add-on is used to integrate into the Ariba Network adding complexity to IT systems No easy way to measure and track spend across different suppliers Without SAP S/4HANA With SAP S/4HANA 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? Material Search Search for a material, and drill down to uncover suppliers that are delivering the same material and can provide alternatives Supplier Evaluation Access to real time supplier metrics like procurement spends, delivery dates, etc to determine supplier readiness Supplier Collaboration Native integration with the SAP Ariba Business Network for real-time supplier collaboration Spend Management Advanced dashboards allow easy tracking and benchmarking of spend 38

39 Business process view Efficient Procurement Traditional System Buyer & Supplier Collaboration Reinvented Business Processes with SAP S/4HANA Purchase Order 1 Purchase Order confirmation x Waiting Time Purchase Order Purchase Order confirmation Goods Receipt Goods Receipt 2 CC-Invoice Invoice CC-Invoice 3 Invoice Invoice status update (Payment date) BUYER SUPPLIER Ship Notice Remittance Advice Cycle Time 4 Clearing of open items Payment proposal Remittance Advice Cycle Time Agree on Early payment Clearing of open items Start Date End Date 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 Traditional Strategy New Strategy Process excellence 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 39

40 SAP S/4HANA for Sourcing & Procurement Function Operational Procurement» Leverage Catalog Buying in Self service requisitioning processes» Monitor critical business events, purchasing spend and supplier performance in Procurement Overview Page Functional Capabilities» 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 User Experiences» Create Sourcing Request in SAP Ariba Sourcing out of SAP S/4HANA Technical Capabilities» Structure and merge material groups into the new business entity Purchasing Category 40

41 DEMO (Procurement Overview Page)

42 Roadmaps 2016 SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights reserved. Customer 42

43 Supply Chain Management Integration Roadmap with SAP S/4HANA Supply Chain Planning Integrated Business Planning (IBP) (New Unified Platform) Supply Chain Execution Platform Advanced Planning & Optimization (APO - DP, SNP, PP/DS, GATP) Supply Network Collaboration (SNC) SAP HANA Platform Supply Chain Control Tower Sales & Operations Planning Demand Inventory SAP HANA Platform Supply & Response Extended Warehouse Management Track & Trace Transportation Management SAP HANA Platform 2016 SAP SE or or an SAP affiliate company. All rights reserved. Customer 43

44 Next generation order management with SAP S/4HANA and SAP Hybris as a service Quotation Management SAP Hybris as a service (YaaS) running on SAP HANA Cloud Platform Offer-/Quotation Management with leverage of CPQ engine Bundling of tangible and digital products as well as usage based services Order Orchestration Backend-agnostic Dynamic sourcing across multiple fulfillment systems (SAP/non-SAP) Change-order capability and order exception management Billing & Entitlements Subscription capabilities / pay-per-use Dynamic pricing Rating & charging for high-volume scenarios Real-time visibility on usage and combined revenue streams Support of revenue share models Tight integration of existing Sales & Distribution capabilities in SAP S/4HANA Sourcing & Order Fulfillment Orchestration Sales & Distribution Fulfillment Invoicing 44

45 Networked and Collaborative Commerce with SAP S/4HANA Sourcing & Procurement Business Network enabled Supplier Collaboration Collaborative Planning & Sourcing Optional Ariba P2P Services Management and Procurement Travel & Expense Management Invoice workflow & Management Requirements Processing with Operational Source of Supply Assignment Self-Service Requisitioning Approval Processes Operational Procurement in SAP S/4HANA Enterprise Management Purchase Order Processing Simplified Service Purchasing Complex Services Operational Contract Management and Call Offs Invoice Processing for Financials and Logistics Invoice Verification Analytics Supplier Evaluation 2016 SAP SE or or an SAP affiliate company. All rights reserved. Customer 45

46 Thank You Contact information: Stefan Batzdorf Director, S/4HANA Pre-Sales Expert, MEE Pre-Sales SAP SE Linkedin: