In my last post, we discussed some of the technical features of S/4 HANA. You can read the post with the link below:
In this post, we will discuss about the innovations from SAP ERP to S/4 HANA around Enterprise Management.
To start with, I would recommend to go through the simplification list. The simplification list covers all the simplifications made across different areas and the actions to be taken for transitioning from SAP ERP to S/4 HANA. You can get a copy with the below link.
Core processes in SAP ERP have largely remained unchanged but certain innovations have been made within the core processes to support the new age requirements to support companies with digital transformation, IoT, etc.
You can read the post by Sven Denecken to know in which processes innovations have been made. The link to the blog is below:
The below posts by Rudolf Hois will give an insight into Innovations made in 1610 and 1709 versions.
Innovations have been made in S/4 HANA across different processes. Some of them are as below:
Sales Orders Management becomes much easier with apps available for exception handling in fulfilling the orders. The principle is to have the process automated seamlessly while the customer service teams focus only on the exceptions.
ATP is part of the core as it is used as a function in both Order to Cash and also Plan to Produce. With this, the availability check function remains the same in both the processes and much faster, is carried out for all items simultaneously and in real time. With the ‘Release for Delivery’ app, it is easier to prioritizing sales orders and changing confirmations. Below link
Inventory Management has real time stock visibility and with processes like backflush, there is no need to process the stock postings with batch jobs but rather in real time which eliminates discrepancies in stock reporting. This also means accurate inventory valuation.
MRP is live, which means much faster and multiple MRP runs are possible with S/4 HANA allowing for smaller lot size planning allowing to respond to demand much faster. There can be real time alerts possible to prioritize critical exceptions.
In Purchasing, the source assignment has been simplified, real time purchasing and inventory information so as to allow faster and accurate decision making.
All these changes are an outcome of the simplified data model which could be made possible with HANA. This results in eliminating redundancies and reduction in data footprint, translates into ‘Principle of One’, eliminating unnecessary locks on the tables making the application faster and an accurate output.
The S/4 HANA Cookbook has lots of useful details about S/4 HANA. You can read more with the link below:
The below post by Gregory COJA has useful resources which can help further.