Intelligent ERP Update: SAP S/4HANA Cloud 1811 for Manufacturing and Supply Chain
This blog provides an overview of innovations in SAP S/4HANA Cloud 1811 for Manufacturing and Supply Chain. In addition, you can check out my video which guides you through the two top innovations, warehouse management and transportation in SAP S/4HANA Cloud.
The SAP S/4HANA Cloud 1811 Show&Tell – Manufacturing and Supply Chain webinar will provide a closer look into the 1811 innovations.
First let me highlight our most impressive innovation:
An integral part of SAP S/4HANA Cloud
With SAP S/4HANA Cloud 1811, we deliver a completely new application, warehouse management as an integral part of SAP S/4HANA Cloud.
With 32 new apps and 7 new best practice processes, our new Warehouse Management enables you to
- manage stock on storage bin level for a better visibility and control in your warehouse, with a tight integration to your business processes
- map your physical warehouse structure in the system down to storage bin level
- control and record all movements of goods in the warehouse – from goods receipt to issue
Warehouse Management in SAP S/4HANA Cloud offers
- Inbound processing, internal processes, and outbound processing
- Handling units in warehouse management, batch management
- Data migration, master data maintenance, and output management
Furthermore, we deliver a predefined warehouse structure as a template which you can enhance using a self-service configuration UI.
Technically warehouse management in SAP S/4HANA Cloud is based on our world-class SAP Extended Warehouse Management solution, tailored to cloud usage.
Figure 1 shows the high-level scope of our warehouse management functionality in SAP S/4HANA Cloud. Additionally, it displays the integration capabilities of SAP S/4HANA Cloud in combination with external warehouse management systems (WMS):
- with third-party warehouse management systems, available since 1708
- with SAP Extended Warehouse Management (SAP EWM 9.5), available since 1805
Fig. 1: High Level Scope of SAP S/4HANA Cloud Warehouse Management
When a truck arrives at the warehouse, the driver takes the delivery note to the office. If you want to compare the delivery in the system with the delivery note and change the delivery in case of differences, you can use our new SAP Fiori app ‘Change Inbound Deliveries’. With this app, you can change the delivery quantity, delete delivery items, enter batch information, create or change handling units, and post goods receipt. You can also add items to the delivery based on a purchase order for an open delivery, for example, if some of the goods that have been delivered belong to a different order.
Fig. 2: SAP Fiori app ‘Change Inbound Deliveries’
With our new SAP Fiori app ‘Run Outbound Process’ warehouse clerks can monitor the outbound process based on outbound deliveries. In the overview screen, you have all relevant information about the deliveries that are planned for one day or several days. With this information, you can create tasks to trigger the picking process. You can also post goods issue.
Fig. 3: SAP Fiori app ‘Run Outbound Process’
Output management is an essential part of the new functionality. Warehouse management in SAP S/4HANA Cloud offers predefined print forms for handling unit labels, shipping handling unit labels, pick lists, putaway lists, warehouse task lists, and loading lists.
Fig. 4: Print Form ‘Handling Unit’ label
As mentioned in my video already, the second impressive innovation is:
Transportation in SAP S/4HANA Cloud
Order-Based Transportation Consolidation
This approach enables transportation planning and execution in SAP S/4HANA Cloud in connection with a decentral transportation management system (TMS). For this purpose, we have enhanced SAP S/4HANA Cloud with two new business objects: freight unit and freight order. With order-based transportation planning in SAP S/4HANA Cloud, you can create freight units from sales orders. Freight units are sent via an interface to an external transportation management system where the freight unit planning is executed. This could either be a 3rd party or an SAP transportation management system. SAP S/4HANA Cloud receives the planning results from the decentral transportation management system and creates the freight orders which in turn trigger the delivery creation in SAP S/4HANA Cloud.
The benefits are obvious:
- Early transportation planning based on orders reduces freight costs.
- Late delivery creation leads to fewer delivery changes during logistics execution.
Fig. 5: High-level scope of transportation in SAP S/4HANA Cloud
As a transportation manager, you may need to keep track of freight units on a daily basis to be aware of any issues, such as planning backlogs and delays. With the new SAP Fiori app ‘Freight Units List Report’, you can monitor and check the freight units that were automatically created when you saved your sales orders. The freight units are displayed in a list. Select one to view more detailed information:
Fig. 6: SAP Fiori app ‘Freight Unit’
Freight planning is executed in a decentral TM system as shown in figure 5. The planning results are received in SAP S/4HANA Cloud from the decentral TM system as freight orders:
Fig. 6: SAP Fiori app ‘Freight Orders’
The SAP Fiori app ‘Freight Order List Report’ enables transportation managers to monitor and check the freight orders that have been received from the decentral TM system in an order-based transportation consolidation scenario. From this app, you can directly create the deliveries for a selected freight order.
Fig. 7: SAP Fiori app ‘Freight Order List Report’
Inventory Analysis Overview
Optimizing the inventory situation by monitoring stock aging is now possible with an overview page for inventory analysts. The ‘Inventory Analysis Overview’ page serves as a cockpit for inventory analysts which allows you to track the most relevant KPIs and derive necessary actions. Performing daily tasks quickly and effectively without the need to open many different reports and transactions is supported via direct access to cards on the overview page, such as ‘Stock Value Increase despite Consumption‘.
The Inventory Analysis Overview page supports the inventory analysts to
- ensure forecast and maximum inventory accuracy
- minimize overstocks and avoid scrapping
- ensure a high service level and delivery capability
Fig. 7: SAP Fiori app ‘Inventory Analysis Overview’
Maintain Planned Independent Requirements (PIRs)
The new SAP Fiori app ‘Maintain PIRS’ enables the creation, mass maintenance, and monitoring of planned independent requirements (PIRs) in months or weeks. You can use this information to negotiate rates with your suppliers and, as a result, reduce costs. You use PIRs to procure or produce materials or components prior to receiving sales orders for materials. This information is particularly important if the lead times demanded by your customers are shorter than those to which your suppliers can commit. In addition, you can work with .csv files to process the PIR quantities.
This app supports material and production planners to easily
- detect forecast errors early in the process
- produce or purchase sufficient quantities of material to cover future sales demands on time
Fig. 8: SAP Fiori app ‘Maintain PIRS’
In previous releases, we delivered our analytical Fiori apps for ‘Inspection Lot Analytics’ and ‘Inspection Characteristic Analytics’ as highlighted in my blogs for the SAP S/4HANA Cloud 1805 release and the SAP S/4HANA Cloud 1808 release. With SAP S/4HANA 1811, we continue this journey and add two new analytical apps for ‘Nonconformance Analytics’.
This innovation enables the quality engineer to analyze defects, based on time, master inspection characteristics, inspection characteristics, material and plant, work center and plant, defect category, defect code and defect code group, supplier, and customer. You can visualize time series for defects and drill down to act on a variety of defect-related information.
The SAP Fiori app ‘Nonconformance Detailed Analytics’ allows the quality engineer to combine several analysis steps to an analysis path by adding or removing analysis steps. You can save your most frequently used analysis paths. For instance figure 9 shows the combination of the ‘Defects by Calendar Year and Week’ chart and the ‘Defects by Work Center’ chart, and the ‘Defects by Material’ chart. If the user clicks on a particular column in the first chart, the selected calendar week will be automatically applied as a filter criteria to the second and the third chart. At a glance the app shows the defects by work center and material within the filtered calendar week .
Fig. 9: SAP Fiori app ‘Nonconformance Detailed Analytics’
Advanced Variant Configuration
Last but not least, I would like to share with you a collection of useful links for a deep dive in the area of SAP S/4HANA Cloud Advanced Variant Configuration:
- Listen to Petra Meyer for a development update on the Overview on SAP S/4HANA for advanced variant configuration release 1808 and roadmap with narrator
- Read the blogs by Velin Ivanov, among other things
- What’s new in 1808: SAP S/4HANA for advanced variant configuration and SAP Product Configuration – Cloud 1808/ On-Premise 1809 releases
- Strategy of SAP Advanced Variant Configuration: The Digital Configuration Lifecycle in the Intelligent Enterprise
- Result of a market research study regarding Variant Configuration: Product configuration as a success factor for industrial product manufacturers
- Read also the blogs by Johann Dornbach about
- the new state-of-the-art SAP S/4HANA Advanced Variant Configuration engine: SAP uses Gecode, an award-winning constraint solver, in S/4HANA for advanced variant configuration
- the SAP collaboration with the Fraunhofer Institute for Industrial Mathematics: SAP collaborates with Fraunhofer Institute for Industrial Mathematics (ITWM) on S/4HANA for advanced variant configuration
For more information on SAP S/4HANA Cloud, check out the following links:
- Sven Denecken’s SAP S/4HANA Cloud 1811 Release Blog
- SAP S/4HANA Cloud release info: http://www.sap.com/s4-cloudrelease
- Feature Scope Description here
- Best practices for all the cloud editions here
- What’s New in SAP S/4HANA Cloud 1811 document
- New SAP S/4HANA Cloud Customer Community: here
- Help Portal Product Page here