Logistics with SAP S/4HANA

Deloitte principal/partner Deb Bhattacharjee is a thought leader in supply chain strategy, supply chain planning, and inventory planning and management. He has published papers on supply chain segmentation, inventory management, and transportation.Vishal Khandalkar is a senior technology transformation leader at Deloitte. He has more than 17 years of SAP and supply chain experience in selling and delivering complex supply chain and business transformation projects enabled by SAP S/4HANA. He leverages his deep supply chain expertise in translating complex business challenges into technology-enabled solutions and has a strong delivery track record with proficiency in procurement, inventory management, and manufacturing domains across life sciences, consumer products and automotive sectors. He has led projects across the globe, managing geographically diverse and highly talented teams, and he has served as an advisor to client executives in applying latest SAP innovations in supply chain management.Falguni Thompson is a managing director at Deloitte, where she is a leader in digital transformation within Deloitte's Enterprise Performance offering. Falguni is responsible for selling, delivering, and managing large-scale, global, technology-enabled supply chain transformation projects for Fortune 500 companies.Guillermo Vazquez is a senior technology executive, leading multimillion dollar SAP global programs with Fortune 500 companies. He has extensive experience defining enterprise architecture strategy and solutions, having advised more than twenty C-level executives in the adoption of SAP S/4HANA, SAP HANA, cloud, mobile, and big data solutions. He has been implementing supply chain management solutions such as sales and distribution, purchase management, intercompany processing and transfer pricing, and warehouse management for more than twenty years. Guillermo led the fourth live SAP HANA implementation in the world.

Third edition, updated and revised

... Foreword ... 19

... Preface ... 23

... The Objective of This Book ... 25

... Who Should Read This Book? ... 25

... What Will Be Covered? ... 25

... Acknowledgments ... 27

1 ... SAP S/4HANA for Supply Chain ... 29

1.1 ... Overview ... 30

1.2 ... Architecture ... 36

1.3 ... Solution ... 38

1.4 ... Deployment Options ... 44

1.5 ... Key Innovations ... 46

1.6 ... Summary ... 49

2 ... Planning and Scheduling ... 51

2.1 ... Planning and Scheduling Basics ... 51

2.2 ... Master Data Simplifications ... 53

2.3 ... Simplified Sourcing ... 56

2.4 ... Material Requirements Planning ... 57

2.5 ... Production Planning and Detailed Scheduling ... 74

2.6 ... Reporting and Analytics ... 84

2.7 ... Summary ... 88

3 ... Sourcing and Procurement ... 89

3.1 ... Sourcing and Procurement Basics ... 89

3.2 ... Master Data Simplifications ... 90

3.3 ... Operational Purchasing ... 94

3.4 ... Central Procurement ... 102

3.5 ... Supplier Management ... 112

3.6 ... Invoicing and Payables Management ... 116

3.7 ... Collaborative Sourcing and Contract Management ... 117

3.8 ... APIs for Sourcing and Procurement ... 120

3.9 ... Reporting and Analytics ... 120

3.10 ... Summary ... 127

4 ... Manufacturing ... 129

4.1 ... Manufacturing Basics ... 129

4.2 ... Master Data Simplifications ... 130

4.3 ... Production Execution ... 139

4.4 ... Production Engineering and Operations ... 151

4.5 ... SAP Manufacturing Execution ... 153

4.6 ... SAP Manufacturing Integration and Intelligence ... 154

4.7 ... SAP Plant Connectivity ... 156

4.8 ... SAP Digital Manufacturing Cloud ... 159

4.9 ... Reporting and Analytics ... 163

4.10 ... Summary ... 167

5 ... Quality Management ... 169

5.1 ... Quality Management Basics ... 170

5.2 ... Master Data Simplifications ... 177

5.3 ... Quality Planning ... 177

5.4 ... Quality Inspection ... 179

5.5 ... Quality Improvement ... 190

5.6 ... Reporting and Analytics ... 195

5.7 ... Summary ... 201

6 ... Plant Maintenance and Asset Management ... 203

6.1 ... Plant Maintenance and Asset Management Basics ... 203

6.2 ... Master Data Simplifications ... 204

6.3 ... Maintenance Processing ... 211

6.4 ... Preventive Maintenance ... 225

6.5 ... Predictive Maintenance ... 232

6.6 ... SAP Intelligent Asset Management ... 234

6.7 ... Reporting and Analytics ... 237

6.8 ... Summary ... 240

7 ... Sales Order Management ... 241

7.1 ... Sales Order Management Basics ... 241

7.2 ... Master Data Simplifications ... 242

7.3 ... Sales Contract Management ... 247

7.4 ... Sales Order Management and Processing ... 254

7.5 ... Available to Promise ... 263

7.6 ... Variant Configuration ... 274

7.7 ... Sales Billing ... 278

7.8 ... Output Management ... 288

7.9 ... Delivery and Shipping Processing ... 290

7.10 ... Claims, Returns, and Refunds Management ... 293

7.11 ... International Trade ... 303

7.12 ... Reporting and Analytics ... 305

7.13 ... Summary ... 315

8 ... Transportation Management ... 317

8.1 ... Transportation Management Basics ... 317

8.2 ... Master Data Simplifications ... 318

8.3 ... Transportation Requirements ... 322

8.4 ... Capacity Management ... 325

8.5 ... Transportation Planning ... 329

8.6 ... Carrier Selection and Subcontracting ... 347

8.7 ... Transportation Monitoring and Execution ... 353

8.8 ... Freight Charge Management and Settlement ... 356

8.9 ... Reporting and Analytics ... 362

8.10 ... Summary ... 367

9 ... Inventory Management ... 369

9.1 ... Inventory Management Basics ... 369

9.2 ... Master Data Simplifications ... 370

9.3 ... Material Movements ... 373

9.4 ... Handling Unit Management ... 386

9.5 ... Physical Inventory Management ... 388

9.6 ... Inventory Valuation ... 390

9.7 ... Product Segmentation ... 392

9.8 ... Reporting and Analytics ... 394

9.9 ... Summary ... 399

10 ... Warehouse Management ... 401

10.1 ... Warehouse Management Basics ... 402

10.2 ... Master Data Simplifications ... 408

10.3 ... Inbound Processing ... 412

10.4 ... Outbound Processing ... 420

10.5 ... Internal Warehouse Processing ... 427

10.6 ... Dock Appointment Scheduling ... 433

10.7 ... Transit Warehousing ... 434

10.8 ... Reporting and Analytics ... 436

10.9 ... Summary ... 439

11 ... Reporting and Analytics ... 441

11.1 ... Business Intelligence Maturity ... 441

11.2 ... Tactical Reporting in SAP S/4HANA ... 444

11.3 ... SAP S/4HANA Embedded Analytics ... 449

11.4 ... Summary ... 460

12 ... Logistics Innovations with SAP Business Technology Platform ... 461

12.1 ... Intelligent Technologies in SAP BTP ... 461

12.2 ... Integration with Blockchain ... 463

12.3 ... Intelligent Robotic Process Automation ... 465

12.4 ... Internet of Things and Edge Services ... 466

12.5 ... Conversational AI ... 470

12.6 ... Machine Learning ... 472

12.7 ... Summary ... 473

13 ... Industry ... 475

13.1 ... What Is Industry 4.0? ... 475

13.2 ... Digital Supply Networks ... 477

13.3 ... Consumer and Industrial Products ... 482

13.4 ... Life Sciences ... 487

13.5 ... Oil and Gas ... 491

13.6 ... Technology, Media, and Telecommunications ... 496

13.7 ... Summary ... 501

14 ... SAP S/4HANA and the Cloud ... 503

14.1 ... Cloud Computing with SAP ... 503

14.2 ... SAP Ariba ... 509

14.3 ... SAP Integrated Business Planning ... 518

14.4 ... Summary ... 527

15 ... First Steps to SAP S/4HANA ... 529

15.1 ... Business Transformation Goals ... 529

15.2 ... Defining a Digital Transformation Roadmap ... 533

15.3 ... Selecting an SAP S/4HANA Implementation Approach ... 541

15.4 ... RISE with SAP ... 548

15.5 ... Summary ... 550

... Appendices ... 553

A ... SAP Fiori Applications for Logistics with SAP S/4HANA ... 553

B ... The Authors ... 575

... Index ... 585