Dive Deep into SAP S/4HANA and Discover the Benefits

Challenges

Benefits of SAP S/4HANA

• Forecasting based on Excel sheets and historical experience does not allow for accurate estimation of supply needs and strategic sourcing.

• SAP S/4HANA is tightly integrated with inventory management and planning modules, which can be used to drive strategic purchasing automatically for purchases, issuing POs based on stock levels and forecast models.

• Lack of transparency complicates the development of an understanding of inventory and supply chain.

• Cloud-based SAP Ariba (Software as a Service – SaaS) enables a much greater degree of supply chain visibility and improves ease of use.

• Procurement is often reduced to a tactical exercise of obtaining the lowest cost, not considering trade-offs like lower quality or lower supplier reliability.

• Improve your strategic vision and reduce supply chain risk by forming an optimal mix of suppliers and partners. Collaborate with your suppliers in a demilitarised zone of SAP Ariba, only showing relevant content, while being connected to your whole system in the background.

• With an understanding of supply base and a close collaboration with your suppliers, procurement can be a competitive differentiator, an innovation enabler and source of strength.

Challenges

Benefits of SAP S/4HANA

• Production planning does not consider capacities (equipment and staff).

• SAP S/4HANA enables an integrated view of availability and capacity.

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

• MRP Live analyses requirements and receipts in real time and detects material shortage as they arise.

• Material shortages do not allow flexible handling of short-term changes in customer demand. Classic sales and operations planning causes the bullwhip effect, as planning forecasts are not accurate.

• With PP/DS, operational production planning can be significantly improved, as live data allows for better business decisions and more precise planning. In this way, delays or setup times can be minimised or prioritised orders can be scheduled preferentially.

• Higher inventory levels result in capital commitment or material shortages caused by delivery delays.

• Clear visibility across the material flow increases user acceptance and efficiency.

• The system allows you to simulate different supply scenarios.

• With PP/DS, capacity and MRPs can be viewed in an integrated manner.

• Demand Driven MRP (DDMRP) considers customer demand for the requirements planning.

Challenges

Benefits of SAP S/4HANA

• Lack of a single source of truth in finance results in lower confidence in figures.

• The once-separate components of Financial Accounting (FI) and Controlling (CO) are combined in the Universal Journal.

• Inefficient closing procedures creates difficulties when managing progress in monthly, quarterly, or yearly close.

• Continuous Closing or “soft close” is possible via embedded analytics, Embedded BW, and group.

• No seamless consolidation processes result in difficult group reporting in a disjointed financial  landscape that has too many manual tasks.

• SAP S/4HANA Finance for group reporting addresses consolidation shortcomings by helping you deliver your entity and group close processes on a single system.

• No audit trail linking consolidated financial statements to the underlying operational transactions.

• The SAP Financial Closing cockpit serves as a single source of truth. It standardises and automates repetitive tasks in the closing process and adds traceability.

• SAP S/4HANA removes the separation between operational and analytical systems and allows business users to access operational data in real time without detours or delays for analysis. It increases user efficiency.

• Based on machine learning and forecasting algorithms, SAP Predictive Analytics software can predict the probability of future events. Decision makers are supported by predictive analysis, for example within human resource management, maintenance, sales, or supply chain.