Product Management update: SAP S/4HANA Cloud 1705 for Manufacturing

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Release of SAP S/4HANA Cloud 1705 for the discrete Industry.

 

With this releases we are focusing on discrete manufacturing companies like component manufacturers utilizing production processes like:

• Maker-to-Order,


• Make-to-stock, or


• Repetitive Manufacturing

Watch this video from Holger Herrmann to get an overview of the SAP S/4HANA Cloud 1705 Update for Manufacturing:



Like the majority of product centric organizations those targeted customers are facing market trends and challenges in the area of:

• Lot size 1 --> End customers are demanding an make to order business environment


• Drastically reduced order fulfillment cycle (customer expecting a significant reduced delivery time)


• From B2B to B2C (e.g. end consumer is ordering soccer shoes through the web, instead buying it at a retail store)


• Demand and service oriented business


• Leveraging of modules and common parts


• Minimized time to customer via local production in distributed networks

Business software solutions have to support those business trends in a very cost effective and innovative way.

 

Modern IT solutions have to fulfill certain key aspects like:

• Modern user interface with the same comfort ability than in private life


• Prompt information fullfillment, end users don’t have the patience to wait, no batch programs, speed


• Need for decision support along the integrated supply chain business processes


• High degree of automation, focus on exception handling


• The Move into the cloud with minimal TCO has to be supported


• Short implementation cycles with minimal TCI

 

Following those Business trends and IT solution requirements SAP is delivering innovative business processes and capabilities within SAP S/4 HANA Cloud 1705 like:

• Complete preconfigured integrated business processes to run core processes like sales, manufacturing, purchasing and finance


• Supporting IOT Business scenarios like
  
  
  
  • 3D printing integrated as production technology
  
  
  • Real time integration to Manufacturing Execution systems (MES systems)
  
  
  • Robotics
  
  
  
  


• Intercompany stock transfers


• Batch management and serial number management


• Integration from an SAP S/4 HANA cloud solution to a decentralized warehouse management solution


• Precise and high speed Available to promise check and innovative backorder processing solutions


• Within the next SAP S/4 HANA Cloud release we will offer the integration to an decentralized Warehouse management solution (like the integration with an MES system)

 

To support the lot size -1- business requirement with the resulting significant increase of business documents ( Sales orders, Inventory posting, production orders…)

SAP S/4 HANA Cloud 1705 contains an inventory management solution for high volume inventory postings to make sure that the physical inventory

always equals the system inventory. That is a prerequisite for the new MRP Run based on HANA with significant run time improvements.

With those important innovations the supply chain will be more actual and the reaction on customer demand is significant faster and more accurate.

All those advanced business processes will be supported with leading edge Fiori applications like the MRP cockpit.