User Experience Insights
Configuration & Business Case of SAP S/4HANA Advanced ATP (AATP) with Business Process Scheduling (BPS) and Alternative-Based Confirmation (ABC)
In today’s fast-paced and highly competitive business world, efficient and effective management of business processes has become more critical than ever before. The modern supply chain is a complex network of interrelated business processes, from sales to procurement and production to warehousing. As companies strive to meet customer demand while keeping costs low, there is a growing need for advanced technologies that can optimize these processes and improve overall efficiency.
In this blog, we will explore how SAP S/4HANA Advanced ATP (AATP) with Business Process Scheduling (BPS) and Alternative Based Confirmation(ABC) can help businesses to achieve their supply chain goals by improving their increased scheduling precision and optimizing resource utilization.
Let’s understand a few basic points –
What is AATP in S/4HANA ?
Advanced ATP is a process in S/4HANA that allows businesses to check product availability in real time. While running, this process takes into account various factors such as existing inventory, planned production, and incoming shipments to determine whether a particular product can be delivered to a customer at a specific time. By providing accurate and timely information about product availability, businesses can improve customer satisfaction and reduce the risk of backorders.
What is called BPS & ABC in S/4HANA?
Business process scheduling (BPS) is a method that allows businesses to schedule and manage their processes more efficiently. By using BPS, businesses can optimize their schedules to ensure that they are using their all available resources in the most efficient way possible. This can help to improve overall productivity.
Finally, Alternative based confirmation (ABC) is a feature that is often used in conjunction with advanced ATP and BPS. It allows businesses to get an alternative option when the desired product is not available. This can help to improve customer loyalty & retention, by providing timely delivery of products, which can have a positive impact on the bottom line.
Now let’s see a business case of how they work together S/4HANA.
Let’s assume we have two plants in the USA ( 1710 and US20 respectively) and another plant in Germany (1010) and stocks are available only in US20 and 1010 for 100 quantities each.
Business Case 1: Customer places an order on the US plant (1710) for 100 quantities. The system initially checks stock in the same plant. If it does not have any stock, the system will go nearest other locations in the US that have stock. In this case, the plant, US20, has sufficient stock to provide. With BPS & ABC in place, the system will automatically search for the nearest location to get material and provide a new confirmation date & time as per the selected plant’s settings. In this case, the system will pick 100 stocks from the US20 plant and confirm the order.
Business Case 2: Customer places order of 200 quantity in same 1710 plant. Now as per the above case, the system gets confirmation of a partial 100 quantity from the US20 plant. For the next 100 quantities, the system will go to Germany (1010) plant where stock is available for customers. With the combined capabilities of BPS and ABC, the system generates new schedule line dates and times for both selections of stock. Even while proposing a newly confirmed schedule line from the German plant, the system will honor the respective plant’s activity timing (shipping, loading, issuing time, etc) and the holiday calendar of that plant’s country too.
Let’s have a quick check on the configuration part of it :
Configuring Schema: The main objective of BPS is to enhance precision while scheduling and provide flexibility. It helps to decouple business documents from concrete scheduling. Initially, you need to configure the scheduling schema as per your business needs.
This schema will have a set of activities that will be part of your business scheduling process and as per the business need you can make custom activities and add them to the schema. Now you have a provision to maintain activity duration in 3 ways calendar, duration, and time zone.
Configure Activity Attributes: By using the app “Configure Activity Attribute”, the system can define and create each and every activity more precisely at a granular level. Businesses can set up granularity levels either in days or in seconds. In case of maintaining in days, BPS uses a factory calendar and in case of maintaining the same in seconds, BPS uses working time.
With the Manage Characteristic Combinations app, Duration and scheduling can be modified as per need, and accordingly based on a certain set of characteristic combinations, the system will run the schedule.
In conclusion, S/4HANA advanced ATP with BPS and ABC can provide businesses powerful methodologies to optimize their operations and improve customer satisfaction. By accurately predicting product availability and schedules, businesses can reduce costs, improve productivity, and provide customers with a better experience. With the right systems in place, businesses can thrive in today’s competitive marketplace.
For more information on SAP S/4HANA Cloud, check out the following links:
- SAP S/4HANA Cloud release info here
- SAP S/4HANA Cloud 2302 Early Release Series Webinars here
- Latest SAP S/4HANA Cloud Release Blogs here
- Product videos on our SAP S/4HANA Cloud and SAP S/4HANA YouTube playlist
- Inside SAP S/4HANA Podcast here
- Best practices for SAP S/4HANA Cloud here
- SAP S/4HANA Cloud Community: here
- Feature Scope Description here
- What’s New here
- Help Portal Product Page here
Please Check out my latest Blogs on SAP S/4HANA :
- E2E journey of Make to Stock (MTS) Logistics in SAP S/4HANA Cloud , public edition
- Capabilities of Solution Order Management in S/4HANA Cloud , public edition 2302 release