Take a Closer Look into SAP S/4HANA to See the Benefits It Offers

Challenges

Benefits of SAP S/4HANA

• Supplies needed and strategic sourcing decisions cannot be accurately estimated with Excel sheets or related experience.

• Since SAP S/4HANA operates in integration with inventory management and planning modules, strategic purchasing can be automatically made based upon reliable data and POs can be instantly prepared depending on data-driven stock and prediction models.

• Inventory and supply chain cannot be thoroughly seen and managed without transparency.

• Supply chain becomes more visible and management is facilitated thanks to cloud-based SAP Ariba (Software as a Service – Saas).

• As a common mistake, procurement is considered simply as buying materials for the lowest price, whereas quality and supplier reliability should also be considered.

• A system that optimally combines suppliers and partners enables a business to improve its strategic vision and to minimize risks in the supply chain. SAP Ariba offers a transparent platform for cooperation with suppliers, offers only relevant content, and operates in connection with the whole system.

• Rather than being a risk, procurement creates competitive edge, enables innovation, and increases business strength when it is supported by a strong supply base and close collaboration with suppliers.

Challenges

Benefits of SAP S/4HANA

• Equipment and staff capacities are not considered while planning production

• With SAP S/4HANA, you can see both manufacturing availability and capacity in an integrated way.

• Inaccurate manufacturing planning leads to long manufacturing cycles and increased manufacturing costs.

• The MRP Live function offers real-time analysis of needs and receipts, thus notices shortages immediately.

• If there is not enough material for manufacturing, flexibility falls and sudden changes in demand cannot be managed efficiently. Since manufacturing is not planned accurately, sales and operations are also affected (bullwhip effect).

• PP/DS function considerably improves operational production thanks to the live data that enables stronger and informed decisions as well as precise planning. This means manufacturing processes are implemented with minimum delay or setup time, and more priority orders can be handled according to the urgency

• On the other hand, keeping inventory levels high causes unnecessary investment of capital in materials or shortages when delivery is delayed.

• When material flow becomes more visible, user acceptance and efficiency improve.

• A variety of supply scenarios can be simulated.

• PP/DS enables integrated visibility of capacity and MRPs.

• Customer demands are taken into consideration while planning requirements via the Demand Driven MRP (DDMRP) function.

Challenges

Benefits of SAP S/4HANA

• When financial data do not come from a single source, financial results may not always be reliable.

• Financial Accounting (FI) and Controlling (CO) functions that used to be handled separately are consolidated within the Universal Journal.

• Progress in monthly, quarterly or yearly closings may be hard to manage due to inefficient closing procedures.

• Thanks to embedded analytics, Embedded BW, and group reporting functions, “soft close” or Continuous Closing is available.

• For group companies or holdings, financial landscapes without integration require a lot of manual effort and may not provide perfectly consolidated figures.

• With SAP S/4HANA Finance for group reporting, entity and group closing processes are managed via a single system, thus consolidation problems are avoided.

• Consolidated financial statements cannot be linked to the related operational transactions when there are no audit trails.

• As the single source of truth, SAP Financial Closing cockpit brings standardization and automation to the repetitive tasks in the closing, while also ensuring traceability.

• With SAP S/4HANA, operational and analytical systems are no longer separate functions. This means users can have real-time access to operational data, avoiding any deviations or delays in analysis. This function improves user efficiency.

• SAP Predictive Analytics software uses machine learning and forecasting algorithms for predictions. Decision makers benefit from these predictions in all areas such as human resource management, maintenance, sales, or supply chain planning.