SAP S/4HANA Supply Chain The future-proof cloud platform for companies
SAP S/4HANA is the latest ERP generation from SAP and the successor to the previous, decades-old SAP core product SAP ERP R/3. SAP S/4HANA is not a further development or release of the existing SAP Business Suite, but an entirely new product with its own powerful database: SAP HANA. The new SAP HANA in-memory database technology enables the use of large volumes of data (big data). The SAP S/4HANA ERP solution is therefore able to map both transactions and analyses in real time in one system, accelerate processes and significantly reduce storage requirements at the same time.
The software architecture of SAP S/4HANA is already fully in line with the vision of Industry 4.0, the Internet of Things (IoT) and Big Data. SAP S/4HANA is therefore the trailblazer for digital transformation. The solution is available both on-premise and as a cloud solution. The SAP S/4HANA Supply Chain module forms the logistical core of the new SAP S/4 Business Suite. In addition to a completely revised materials management system (former SAP MM and IM modules), the warehouse management module SAP Extended Warehouse Management (SAP EWM) is now available in SAP S/4HANA.
It is also the successor to the "old" R/3 SAP Warehouse Management (WM module) and the Logistics Execution modules LE and LE-TRA, which will only be supported by SAP until 2027. Companies that want to position themselves for the future are migrating to the SAP S/4HANA platform and taking the opportunity to further automate and digitalize processes. Engaging in planning and implementation at an early stage gives companies that are still using SAP ERP ECC faster access to the many SAP S/4HANA benefits.
FAQs
SAP S/4HANA is the latest real-time ERP solution and successor to SAP's previous core product, SAP ERP R/3. The SAP Business Suite is already in its 4th generation, is available as a cloud solution, among other things, and is based on the in-memory database technology SAP HANA, which is already included in the name.
SAP HANA (High Performance Analytic Appliance) is a revolutionary database with in-memory database technology. It enables SAP customers to accelerate processes, use big data and significantly reduce their own storage requirements.
In addition to Embedded EWM, the new functions in S/4HANA for logistics include
- production planning
- inventory management
- production and detailed planning (PP/DS) and
- the newly programmed availability check (Advanced Available to Promise).
The new SAP S/4HANA data model reduces the storage requirements in the database many times over. By simplifying the system landscape and standardizing processes, HANA technology enables significant performance benefits.
SAP S/4HANA also enables parallel postings. This in turn leads to a higher throughput for financial and logistics processes and means shorter throughput times overall - with lower storage requirements at the same time. Previously, it was necessary to wait for the previous posting to be completed, as SAP and other IT systems were blocked for this short transaction period.
Migration from R/3 to the new S/4HANA
On-premises or cloud solutions as license models
The migration from SAP WM to S/4HANA can be carried out in different ways.
Those who follow the greenfield approach have their ERP system completely rebuilt, while a brownfield approach is based on the existing ERP system.
If the costs of operating and maintaining the old system seem too high, the greenfield approach allows you to start from scratch and replace your complex system with one that is "lean" from the outset. Old "braids" can be cut off.
When switching to the brownfield approach, existing data and settings are converted first, which is usually more cost-effective. New processes are established and used in the converted landscape.
SAP S/4HANA can be used in various license models. In the long term, the various cloud solution options are likely to prevail:
- On-premise: In the classic installation variant, SAP S/4HANA is operated entirely on site in the company or in a data center. The data center can either be operated by the company itself or by a service provider.
- Cloud solution: The use of SAP S/4HANA via public cloud and/or private cloud. In principle, all of these are cloud solutions or are provided as Software-as-a-Service (SaaS).
High performance and bulk bookings in logistics centers
Even if many trucks drive/arrive at the same time or many shipping units or returns have to be processed, bookings in the SAP system are possible in parallel and as mass data without system blockages.
Mobile devices of delivery or service vehicles synchronize directly with the ERP system
The booking of outgoing goods, invoicing of customers and restocking and route planning for the next tours can be automated.
Optimize stock levels
Stock levels can be classified using ABC/XYZ analyses and evaluated according to turnover time. Stock levels can be kept constant as issues and receipts are displayed in real time. The use of artificial intelligence also ensures an even more intelligent arrangement of stock items.
Ability to provide information for customer inquiries about delivery dates
Better use of production data for dispatchers thanks to cockpit displays, customizable user interfaces, graphical displays and charts. Dialogs and evaluations can be distributed to different screens (control center).
Decision support and alarm messages
Alerts for material flow bottlenecks and material requirements planning ensure faster response times. The system makes suggestions for eliminating bottlenecks and offers simulations for better stock forecasts.
Real-time analysis options
The basis for analyses of material requirement levels, sales figures or results are up-to-date S/4HANA data sets every second and no longer outdated information from the previous day (e.g. from intermediate tables or aggregates). Changes can be displayed in real time.
Migration options for the S/4HANA supply chain component
SAP has built several "bridges" for users of the "old" SAP R/3 component Warehouse Management (SAP WM) in order to make the migration to SAP S/4HANA as smooth as possible:
- Transitionally, the old SAP WM can be used within the S/4HANA ERP core. This means that SAP SE will keep SAP WM running for the time being and will continue to support this transition scenario (SAP Stock Room Management) until 2027 according to current information.
- Alternatively, SAP customers who have already decided to implement S/4HANA ERP today can complete the full ERP migration from R/3 to S/4. In the process, they can transfer their SAP WM functionalities, including all individual enhancements, to an embedded EWM. Embedded EWM is well suited for manual warehouses.
- Another option is to migrate the SAP WM module to a decentralized SAP EWM system: This can take place separately from the ERP migration project to S4/HANA in terms of time and technology. The advantages of a decentralized SAP EWM system include its very high performance and unrestricted suitability for warehouses with medium, high and very high levels of automation (including material flow control).
Migration options for SAP Digital Manufacturing
SAP also enables users of the "old" SAP R/3 components PP and PP-PI (in conjunction with BDE/MES systems) to make the transition to the new SAP Digital Manufacturing technology. The SAP ME and SAP DM solution components are fully compatible with the SAP S/4 platform and are available in various operating scenarios (especially cloud).
Time is running out!
SAP R/3 ERP support ends on December 31, 2027 (including all logistics modules such as WM, LE-TRA, XSI, SD as well as production modules such as PP, PP/PI etc.). The introduction of the new SAP S4/HANA platform therefore marks the start of the necessary switch to SAP S/4 for all companies that are still using "old" SAP R/3 modules.
IGZ advises you on your individual migration path and provides you with helpful tools, e.g. for test automation (e.g. Automated Rapid Validation), to enable and guarantee a secure migration. Migration cockpits are also part of the IGZ service portfolio.
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