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Intelligent ERP Update: SAP S/4HANA Cloud 1902 for Manufacturing and Supply Chain

This blog provides an overview of innovations in SAP S/4HANA Cloud 1902 for Manufacturing and Supply Chain. In addition, you can check out my video which guides you through the three top innovations for Manufacturing and Supply Chain.

The SAP S/4HANA Cloud 1902 Show&Tell – Manufacturing and Supply Chain webinar will provide a closer look into the 1902 innovations.

Inventory Management

Inventory KPI Analysis

First let me highlight the brand new analytical app for inventory management called Inventory KPI Analysis. With this app, you can ensure inventory accuracy by checking inventory values as time series for comparable periods. This app enables an inventory analyst to identify potential outliers that could affect the fixed capital situation. For this purpose, the app offers 5 inventory KPI filters that display potential outliers in a frequency distribution chart for changes regarding stock, consumption, inventory aging, inventory turnover, and range of coverage. Further drill-down functionality enables you to get deep insights for instance on material level.

Fig. 1: New SAP Fiori app ‘Inventory KPI Analysis’

Fig. 2: Identify potential outliers using the frequency distribution chart of the Inventory KPI Filters

 

Production Planning

Capacity Planning

The new SAP Fiori app Schedule Production enables the production planner to carry out the detailed planning. With this app, you can filter orders based on your area of responsibility. In addition, you can select the source of supply and the work centers to dispatch the orders on the dates selected. The app highlights the capacity durations that can accommodate the capacity required for the work center to complete the operation. You can control the scheduling direction with either finite or infinite scheduling of the orders. Moreover, you can execute the mass dispatch or deallocation of order operations as well as re-schedule already scheduled operations. This app allows you to flexibly switch production versions in case the work center capacity is insufficient to dispatch the order. The benefits are obvious: You can perform feasible production planning by considering the finite capacity for handover to production.

Fig. 3: New SAP Fiori app ‘Schedule Production’

Fig. 4: SAP Fiori app ‘Schedule Production’ –  The Sourcing view allows you to flexibly switch production versions

For a closer look at the scenario review the new scope item Production Capacity Leveling (‏3LQ‏) and recap the scope item Production Capacity Planning and Evaluation (‏31L‏) which is available since the 1808 release.

 

Warehouse Management

Quality Management integration in Warehousing

As you remember, with the past release, we have delivered warehouse management as an integral part of SAP S/4HANA Cloud which enables you to manage stock on storage bin level.

For a deep insight into SAP S/4HANA Cloud – Warehouse Management register for the Expert Need to Know (N2K) Webinar SAP S/4HANA Cloud – Warehouse Management.

Now with the 1902 release, we integrate quality management in warehousing. By performing quality inspections during goods receipt, you can inspect the products which have been delivered from production or external suppliers before the putaway in the warehouse takes place. You can also record usage decisions for partial lots, when, for example, only some of the stock items in the inspection lot are of good quality. The new scope item Quality Management in WM (3M0) visualizes the scenario with a process flow chart. The following screenshots show the integration between Quality Management and Warehouse Management on the basis of selected Apps:

Fig. 5: Integration of QM inspection into the app ‘Warehouse Management Monitor’

Fig. 6: Integration of WM Inspection into the app ‘Record Usage Decision’

Fig. 7: Integration of warehouse and bin number in QM record usage decision

In the innovation discovery you will find further important innovations in 1902 Warehouse Management, for instance the enabling of cycle counting and the enhancement of the storage type settings which allows you to configure a general storage. A general storage could be useful for instance in case of temporary usage. You need to create storage types for your warehouse. Find this configuration step here.

Fig. 8: The Configuration for Storage Types supports now a General Storage in Warehouse Management

 

Transportation Management

Order-Based Transportation Consolidation

In my past blog I also draw your attention to the new Order-Based Transportation Consolidation in SAP S/4HANA Cloud. This approach enables transportation planning and execution in SAP S/4HANA Cloud in connection with a decentral transportation management system (TMS). Now we take the next step:

With the SAP S/4HANA Cloud 1902 release, the transportation manager can view transportation charge details and manually calculate charges. In the Charges details, you can see the transportation charges based on the relevant freight agreement between you, the purchasing organization, and the carrier. In the Cost Distribution details, you can see the freight cost broken down at the level of each delivery item based on gross weight that is a part of the freight order.

Fig. 9: SAP Fiori app ‘Freight Orders’ with the new ‘Charges’ and ‘Cost Distribution’ tabs

Fig. 10: New SAP Fiori app ‘Manage Freight Agreements’

 

Kanban

Set Kanban Container Status

Replenishment using Kanban is possible with in-house production, external procurement, or stock transfer. A series of new replenishment strategies are available for each of these three options with release 1902. In the blog Kanban Enhancements in SAP S/4HANA Cloud, you’ll learn about the new Kanban Replenishment Strategies without MRP for SAP S/4HANA Cloud 1902, including in-house production, external procurement, and stock transfer.

In my 1902 blog I want to highlight the new SAP Fiori app Set Kanban Container Status. With this app, you can select or scan Kanban containers to trigger Kanban status changes. Typically, a container status is changed from “Full” to “Empty” when the material in the container has been consumed and thus the replenishment process needs to be triggered. Later, the container status will be set to “Full” again, the container quantity will be increased, and inventory will be moved to or received at the production supply area to be available for consumption in production processes afterwards.

Fig. 11: New SAP Fiori app ‘Set Kanban Container Status’

Fig. 12: KANBAN card which can be enhanced by the customer

 

Increase SAP S/4HANA Cloud User Adoption

SAP Enable Now

Another hot topic that I would like to draw your attention to is the new SAP Enable Now framework, our harmonized onboarding and continuous enablement concept which is embedded directly in SAP S/4HANA Cloud. The framework provides standard enablement content which is constantly updated and comprises context-sensitive help, guided tours and tutorials directly within SAP S/4HANA Cloud. In addition, you can customize or produce your own enablement content and upload to SAP S/4HANA Cloud. For more information on efficient End-User enablement with SAP Enable Now, check out the following links:

 

For more information on SAP S/4HANA Cloud, check out the following links:

 

Follow us via @SAP and #S4HANA, or myself via @GerhardWelker and LinkedIn.

 

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