SAP S/4 HANA Supply Chain Management Foundation for Business Innovation

Business drivers for S/4 HANA Increased system throughput by eliminating data redundancies and reduced data footprint Real time analytics at the lowest level of granularity on primary transactional data, without aggregates Optimized system landscape and reduced number of systems gives customer high performance with lower TCO Increased business user productivity with beautiful, role-based UIs and availability on multiple devices 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 3

SAP S/4HANA 1610 SAP Fiori: The user experience of SAP S/4HANA Single entry point The SAP Fiori launchpad will be the single entry point to access all apps Domain specific infos and actions Users will quickly get an overview of what needs their attention with Overview Pages, List Reports and Work Lists, and trigger quick actions or drill down to the next level of detail Native ios mobile experience for highimpact scenarios Enter details and explore in depth Key and differentiating use cases will be re-imagined with the SAP Fiori user experience. All classical transactions will have the SAP Fiori visual theme. 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 4

Key Innovations in Manufacturing and Supply Chain S/4HANA 1610 Material Requirements Planning Fast MRP run, and new working model for MRP controllers based on decision support. Material Valuation Principle of One, scalable material valuation capabilities, utilizing Material Ledger, that way customers can use multi-currencies, valuation methods per different accounting laws like GAAP. Inventory Management Simplified data model resulting in increased through-put, flexible analytics at the most granular level. Available To Promise & Backorder processing Enhance ERP by advanced ATP capabilities in APO, new coding to make it better, innovation benefit as functionality will be refreshed. Order Management & Billing Enable monitoring of end-to-end order-to-cash process & take actions for any exceptions, information on the exceptions to resolve the issues, lower TCO due to data model simplification, support for the most recent versions of business features such as FSCM Credit Management, GTS Foreign Trade, SFIN Revenue Accounting, new analytical capabilities. Warehouse Management New deployment option for bringing SAP Extended Warehouse Management to ERP, reducing integration efforts, allowing seamless mater data & UI harmonization. Capacity Planning New deployment option for bringing PP/DS on ERP, reducing integration efforts, allowing seamless master data & UI harmonization. Industry to Core Discrete industries functionalities such as Just-in-Time & Just-in- Sequence available for wider cross industry adoption through the Core 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 6

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 Quantity Weekly Replenishment Safety stock Daily collective goods issues Reorder point Sub-daily replenishment Safety stock Continuous goods issue postings Reorder point Time Time Buffers Just-in-time 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 Business Benefits» Improve on-time delivery» Increase inventory turnover» Reduce cost of inventory» Single source of truth of inventory in one system 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 7

Inventory Management Examples for unlimited Data Through put in Goods Movement Example Use Case: Distribution Center 1. Parallel Production combined postings Multiple production lines produce same product by single item tracking and combined postings for Goods issue raw material Goods receipt finished product Goods issue finished product Goods receipt finished product at distribution center 2. Ice Truck Scenario Distribution Center Trucks deliver goods to customer directly. Coming back to the distribution center the orders and deliveries are uploaded from offline device. Combined postings Creation of sales order and delivery Picking of goods Goods issue, invoicing Truck replenishment 2015 2016 SAP SE or or an SAP affiliate company. All rights reserved. Customer 8

Throughput (items/sec) Simplifications enable throughput increase of 10x - 25x Parallel postings of large material documents 800 600 Negative stock not allowed No database locks any more 400 200 0 large OEM back-flush requirement (example) SAP Business Suite on SAP HANA 0 20 40 60 80 100 # Parallel Processes Automotive scenario test case Reporting point back flush with transfer posting of 100 items each 60% common parts 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 9

Real Time Inventory Management Inventory Turnover Analysis Key benefits» Comprehensive stock overview per material on the time scale» Display the most important inventory key figures 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 10

Material Requirements Planning Business Challenges» Increasing customer service» Low inventory accuracy» Revenue losses due to stock-outs» On-time delivery performance Days Hours Capabilities» Prioritized view on material flow issues» Real-time alerting» System-generated solution proposals» MRP can run sub-daily and as frequently as required» Demand information is propagated faster through the supply chain Business Benefits» Clear visibility across the material flow» Proactive decision making in response to changing demand» Flexible tailoring of available capacities and receipts to more granularly meet required quantities» Real time inventory monitoring and automating the creation of procurement proposals 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 11

Data volume increase MRP Performance Enabling Faster and More Frequent Runs Example data from a customer PoC Runtime in hours 60 50 40 55,5 40,2 Scenario 1 Scenario 2 44,8 Scenario 1 Scenario 2 Materials 1,5 Mio. 1,5 Mio. Thereof configured materials 117.000 117.000 Inserted purchase requisitions 1,0 Mio. 1,0 Mio. 30 20 17,5 17,5 Inserted planned orders 2,3 Mio. 10,4 Mio. Inserted dependent requirements 9,2 Mio 96,0 Mio 10 0 Reference 4,5 Version 1 4,3 5,5 2,5 1,5 1,0 3,9 2,2 Version 2 Version 3 Version 4 Version 5 Legend: MRP Classic on AnyDB (12-way parallelization) MRP Classic on HANA (12-way parallelization) MRP Live on HANA MRP Live on HANA HANA only 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 12

SAP S/4HANA Enterprise Management Available to Promise (ATP) Overview Available to Promise Business Challenges» Difficult to fulfill customer orders on time with the proper quantity in near term horizon» Promise accurate and reliable order dates» Inefficient strategies to fulfill orders from the entire network - or to substitute products automatically» Inefficient strategies to sell scarce products in a fair manner» Inefficient ways to manage order backlogs Business Benefits» Improved customer service value and increased on-time delivery for important sales orders» Improved Order Promising in near-term horizon based on short-term changes» Flexible order confirmation based on business priorities» Prioritize different requirement/order types/customers differently» Perform automatic back-order processing» Instant change of ATP strategies 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 25

Available to Promise Current functional model With SAP S/4HANA for Supply Chain APO Product Availability Check Product Allocation Substitutions Code Pushdown to HANA Rescheduling Etc. SAP S/4HANA ERP Product Availability Check Data replication via CIF Product Availability Check Product Allocation Rescheduling Substitutions Etc. Product Allocation Substitutions Rescheduling Etc. 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 26

S/4 HANA The Foundation for SCM Innovation Advanced Planning and Project Management Integrated Business Planning (IBP) Supply Chain Execution Platform Portfolio & Project Management Advanced Production Planning & Optimization Supply Network Collaboration SAP HANA Platform Supply Chain Control Tower Sales & Operations Planning Demand Inventory SAP HANA Platform Supply & Response Warehouse Management Track & Trace Transportation Management SAP HANA Platform SAP Asset Intelligence Network S/4 Enterprise Management and new S/4 HANA Products Portfolio & Project Management Production Planning & Scheduling Extended Warehouse Mgt. Advanced ATP & Order Scheduling... 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 27

Thank you Contact information: Claus Jensen Senior Solution Advisor claus.jensen@sap.com +971 4365 1996