Intelligent Supply Chain with SAP solutions - Driving business value with new innovations from SAP S/4HANA, intelligent suite applications, and ...
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Intelligent Supply Chain with SAP solutions Driving business value with new innovations from SAP S/4HANA, intelligent suite applications, and SAP Leonardo technologies PUBLIC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 1
New innovations enabled by SAP S/4HANA Supply Chain solution
Intelligent enterprises across all industries are focused on business outcomes and innovation by leveraging an intelligent suite of applications, intelligent
technologies, and digital platforms. Discover how SAP S/4HANA and other supply chain solutions from SAP can help your business turn digital innovation into a
competitive advantage.
Prediction of stock-in-transit arrival Single platform for warehouse management
Ability for warehouse managers to predict the arrival date of a Reduced TCO by landscape simplification through native warehouse
shipment and manage delivery delays. Prebuilt set of KPIs supports management with SAP S/4HANA; a single warehousing platform for all
robust analytics for the business scenarios. Early and efficient visibility warehousing operations, including optimization, automation, and labor
for stock transport orders that leads to reliable processes for planning management
and scheduling of goods in transit
Real-time inventory Single platform for transportation management
Live inventory management that enables unlimited simultaneous Reduced TCO by landscape simplification through native Transportation
material movements and true transparency on inventory and material Management with SAP S/4HANA; a single platform for transportation
flows. Decreased stock buffers due to better transparency and insights management with basic and advanced shipping functionality and real-
time embedded analytics
Advanced ATP Live MRP
Intelligent, real-time product availability check for sales, planned, and Improved material planning with faster, more frequent material
production orders. Includes scalable available-to-promise (ATP) for requirements planning (MRP) runs – multiple times a day, with planning
managing large transaction volumes and flexible allocation and rapid replanning in minutes instead of hours to minimize inventory.
management capabilities. Provides back-order processing with One single harmonized MRP process for all materials, both
intuitive priority classification and interactive exception handling unconstrained and those requiring advanced constraint-based planning
Demand-Driven MRP (DDMRP) What-if and scenario planning*
Dynamic planning of replenishments with demand-driven MRP What-if and scenario planning to react to market demand through the
(DDMRP) that is fully integrated into existing MRP concept. best service at lowest cost. SAP S/4HANA in conjunction with the SAP
Replenishment only for real demand and introduction of buffers at Integrated Business Planning application for sales and operations
strategically important points enables integrated, continuous, and iterative supply chain planning
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC * Capability in italics is supported by an additional product 2Enabling digital business planning
Demand management and Sales, inventory, and Response and Value
insights operations planning supply management proposition
• Real-time order management platform for • Integrated SAP HANA business data platform to support • Accelerated MRP with improved effectiveness of
SAP S/4HANA
omnichannel demand management demand-driven business planning processes, including planning, enabling more frequent MRP runs – multiple
• Reduce supply chain
real-time analytics across demand, supply, and finance times a day
• Visibility into changes in demand without waiting for process areas
planning cost
lengthy batch processes; prioritization and tight • One harmonized MRP process for all materials, both
integration of orders with supply and fulfillment unconstrained and those requiring advanced • Improve demand forecast
constraint-based planning
• Embedded analytics that allow on-the-fly simulations
with real-time data; support for user- and use-case- • Replenishment only for real demand and introduction accuracy
centric views of buffers at strategically important points (demand-
driven MRP) • Reduce days In inventory
• Reduce inventory carrying
cost
• Short-term demand prediction with demand sensing • Rapid and collaborative Sales & Operations Planning, • Priority-based finite supply planning, including • Reduce revenue loss due to
solutions and technologies
Additional intelligent suite
algorithms and with advanced statistical forecasting including “what if” and scenario planning of potential allocations planning and gating factor analysis with
methods with the SAP Integrated Business Planning business plans to execute desired path forward with SAP Integrated Business Planning stock-outs
application SAP Integrated Business Planning
• Direct sharing of forecast and orders generated by
• Remote capture and analysis of sensor data from • Manage multi-echelon inventory optimization integrated SAP Integrated Business Planning with suppliers
connected devices, feeding to the demand into sales, inventory, and operations planning with SAP using SAP Ariba Supply Chain solutions
management process with SAP Connected Goods Integrated Business Planning
software
• Ad hoc analysis in real time with alerts, KPIs,
reporting, and insights that detect and notify users of
potential disruptions with SAP Integrated Business
Planning
• Leverage external data to gain deeper market
visibility, improve forecast accuracy and respond to
demand changes faster with SAP Demand Signal
Management
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3Enabling digital logistics and order fulfillment
Warehouse Transportation Logistics Value
management management network proposition
• Reduced TCO by landscape simplification through • Reduced TCO by landscape simplification through • Visibility into the location and condition of goods and
native warehouse management with SAP S/4HANA native transportation management with SAP assets along the supply chain
• Reduce warehouse
S/4HANA
• Mapping of entire warehouse complex in the system, • Mass product availability check for sales, planned and management cost
down to storage bin level, with real-time visibility of • Transportation solution covering end-to-end production orders; advanced available-to-promise
labor, resources, and activities using a warehouse processes, such as capacity management, planning, (ATP) check for releasing large production orders • Improve average space
SAP S/4HANA
monitor collaboration execution, transportation charge
• Use-case-driven product allocation check; SAP Fiori
• Live inventory management through a redesigned
management, and settlement, in one system
app provides overview for analyzing and understanding
utilization rate
data model that enables unlimited simultaneous • Tendering and subcontracting from the SAP the product allocation situation
material movements and allows for true Transportation Management application through SAP • Reduce transportation
Logistics Business Network • Alternative-based confirmations (ABC) for
transparency on inventory and material flows determination of best plant to confirm a newly created spend
• Address requirements of multiple industries and sales order requirement, taking into account the
• Ability to change lot size to “one,” thus capturing the
modes availability situation of multiple plants
lowest level of granularity in inventory stock keeping • Improve on-time delivery
• Improved mixed-pallet building, enhanced GANTT • Back-order processing with intuitive selection and
• Catch weight management (CWM) and direct store chart and scenario builder for planning performance
ranking of demand to establish order priorities; SAP
delivery (DSD) functionalities are available for the
Fiori apps for back-order processing setup, result
customers monitoring, and changes before release for delivery • Reduce revenue loss due to
recall or compliance issues
solutions and technologies
Additional intelligent suite
• Deployment of the SAP Extended Warehouse • Deployment of SAP Transportation Management • Collaboration with logistics partners to improve
Management (SAP EWM) application as a stand- as a stand-alone application for complex throughput, reduce wait times, and increase
alone solution for high-volume and highly automated transportation requirements efficiencies with SAP Global Track and Trace
warehouses
• Insights into transportation, timely execution of • Full visibility into the lifecycle of serialized products
critical business processes, and tracking goods and tracking of products across multiple systems
and assets in transit with the SAP Global Track and with SAP Global Track and Trace
Trace solution
• Efficient management of yard activities such as
managing stock, locations, and vehicles with the
SAP Yard Logistics application
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4Assess your intelligent supply chain maturity
What’s your performance on supply chain KPIs? What do customers say?
Key Performance Indicators Your Performance Average* Top 25%* Atomy Co. Ltd.
“When you sell online, customers expect delivery at Internet
Revenue loss due to stock-outs (%) ? 0.49 0.04 speed, so having the right amount of products available at the
right time is crucial. With our enhanced inventory management,
Days in inventory ? 64.7 28.7 we can achieve that – and simultaneously save money.”
Chang Woo Kim, Finance Director, Atomy Co. Ltd
On-time delivery performance (in %) ? 89.9 97
• 30% increase in import and export efficiency
Cost of goods/services sold (% revenue) ? 60.7 47.8
• 2nd in direct sales in Korea – and growing
Click here for more information
* Based on our benchmarking program and customer case studies
Leaders are adopting supply chain next practices to improve performance:
▪ The organization runs a demand-sensing process to create and adjust short-term forecasts on a daily basis
▪ The organization collaborates on business decisions and share insights across business networks (suppliers, Sensirion
contract manufacturers, and so on)
“With the support of the SAP Digital Business Services organization,
▪ The organization runs a regular multistage inventory optimization process to achieve highest service at lowest we used agile methodologies to implement SAP S/4HANA as our
working capital investment intelligent ERP to enable complete planning and execution process.”
▪ The organization has a fully digitalized warehouse with connected devices and goods to support all warehouse Thomas Klein, SAP Project Lead, Sensirion Holding AG
operations with ease
• Stronger control of all warehouse processes with one
software
Next-generation benchmarking
• Inventory optimization through shorter planning cycles
Take this assessment to set the baseline and understand the value potential of an intelligent supply chain. Click here for more information
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5Follow us www.sap.com/contactsap © 2019 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See www.sap.com/copyright for additional trademark information and notices.
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