SAP’s road map for Supply chain solutions with S/4 HANA and expected benefits of unification

[Mrinal_K_Roy]

As stated in one of the previous blog on ‘ SAP S/4 HANA simple logistics expected to combine features of multiple SCM applications’ in URL http://scn.sap.com/community/s4hana/blog/2015/11/05/hana-journey-and-features-of-scm-products-in-s4-..., it is now quite clear on SAP’s roadmap on Supply chain management (SCM) solutions from SAP’s video in URL https://vimeo.com/146090331 and below image

that SAP will unify the following SCM solutions as a part of S/4 HANA

• APO’s GATP and PPDS (was planned in 1511 release, but postponed till next release)
• APO’s DP and SNP as IBP (Integrated business planning)
• SNC (Supply network collaboration)
• SPP (Service parts planning)
• EWM (Extended warehouse management)

LE/WM will be initially available in S/4 HANA , but will be phased out in due course.

• TM (Transportation management)

Expected benefits

Logically (To be verified later), we can expect the following benefits with embedding of different applications in a single system S/4 HANA

• Core Interface (CIF) & RFC communications are not needed  (and hence simplified landscape with less TCO)

• Data will be consistent  (There is no requirement to transfer master & transaction data between systems / applications)

• Advanced functionality (Presently APO GATP does not have direct integration with TM . Both APO GATP & TM offer the functionality of scheduling of sales order. If both APO GATP and TM are available side by side, then scheduling (and similar other functionalities) can be more advanced).

• Few issues with interfaced systems (As per present set up, SAP does not allow change in an object if the object is distributed to another system to keep the data consistent in that object. As for example, if a delivery (created in ECC) is distributed to EWM, then almost all fields of ECC delivery are greyed out (display mode only) so that the data in that delivery can be changed only by one system) . Rescheduling of delivery in ECC is sometimes needed (for several business reasons like payment through letter of credit, delay in customs document etc) after delivery is distributed from ECC to EWM, but that rescheduling is not possible. Probably, these problems will disappear if the object (delivery) stays in same system.

• Implementation is expected to be much simpler and faster

Unification of several applications is one of the design principles for S/4 HANA as stated in other blog in URLhttp://scn.sap.com/community/s4hana/blog/2015/11/16/principles-features-directions-methodology-and-m... . Note also that Simple logistics has now been renamed as S/4 HANA Logistics.

Road map of S/4 HANA looks very much promising. Journey with S/4 HANA has just started and there are ‘Many miles to go’ for fully unified and complete S/4 HANA solution. It will be very interesting (with good learning) to see how all these applications will be operating in a single system.