One of the essential modules of SAP ERP, SAP Supply Chain Management, is in charge of Demand Planning, Business Forecasting, and Production Planning. It aids a business in managing a dynamic supply chain process. Suppliers, customers, manufacturers, business partners, and retailers can connect through SAP SCM to manage the supply chain process more effectively and efficiently.
Additionally, an organization may connect its operations and enforce contract compliance for supply-side and supplier-side needs while leveraging supply chain procedures in a distributed environment, thanks to SAP’s SCM tools. Supply chain networking, supply chain planning, coordination, and supply chain execution are all fully covered by this comprehensive program.
It interacts with other SAP execution apps and planning applications connected to Advanced Planning and Optimization APO. Read the blog to learn about the major supply chain major highlights in SAP S/4HANA 2021.
Review Availability Check Result
Let me first draw attention to the new explanation screen for SAP S/4HANA’s availability check findings. The Review Availability Check Result has been enhanced regarding how the Intermediate Results are shown. The popover gives a general description of the procedure and directs the user to a detailed explanation of product allocation and supply protection.
Advanced Available-to-Promise (aATP)
It is necessary to have systems in place for internal sales representatives, order fulfillment managers, and order fulfillment specialists to create, carry out, and keep an eye on availability checks and optimize supply distribution. This is especially crucial when there are few materials available to check requirements. The advanced Available-to-Promise (aATP) capabilities can be used to confirm the date and volume by which a need can be satisfied.
Product Substitution in Sales Orders Requirements
Use Alternative-Based Confirmation (ABC) to replace any products that don’t meet the sales order requirements. For this reason, Advanced Available-to-Promise (aATP) Other-Based Confirmation (ABC) has been improved, enabling you to substitute alternative items for the desired products in sales orders and alternative supplying plants.
During order confirmation, products may be changed owing to a variety of reasons, including:
- Stock not being available
- The item is no longer under warranty.
- There are lots of substitute products in stock.
You can configure product substitutes to increase delivery rates and lower out-of-stock situations. When a product is in short supply, a different product is utilized in place of the one that is first requested. Sometimes the quantity of the substitute product differs from the quantity of the ordered product. For instance, one brick can be replaced with two lengths of 20 cm and 10 cm. Two bricks measuring 30cm each can be used instead of three bricks measuring 20cm each.
With this tool, you can switch out a spot with another one, such as a plant or a storage area. Additionally, you have the option to not allow any plants or storage facilities to be utilized as replacement plants or storage facilities.
In the following 5 apps, master data for Location Substitution (Plant and Storage Location) can be defined and managed:
- Manage Substitutions
- Manage substitution groups
- Manage Substitution Settings
- Manage Exclusions.
- Manage Substitution Motives
Locations are the primary app where the substitute master data is managed and defined. The app provides both tabular and graphical representations of the substitution chain.
With supply protection, protected quantities for defined groups based on particular traits can be established. Although this was not intended, a single requirement can appear in several protection categories. When there are numerous matches, the protection is lowered by the confirmed quantity multiplied by the number of matches, but the amount of the confirmed demand reduces the real stock.
Time Buckets with Flexibility in Supply Protection
An Order Fulfillment Manager can set protected quantities for defined groups based on specific attributes using Supply Protection. It is possible to define time buckets with varying lengths using the ” Flexible ” period type.” In general, weeks with a special campaign or during the high season might make sense to have shorter time buckets. It would make sense to have time buckets that are longer lasting after these particular weeks or days. The number of time buckets can be decreased using flexible time buckets, which also enables more focused security.
Consider a scenario in which a sales order matches numerous supply protection objects. The Condition Handling framework will send out an alert in such a situation. The user assigned to it will receive notifications for all supply protection objects involved in the multiple matches situation. To make changes to supply protection objects, the user can now reassign them with backorder processing, if necessary.
Inventory Management in SAP S/4HANA
1. Handle Physical Inventory Count
Whether performing a cycle count or a yearly inventory, entering and updating physical inventory count findings is a crucial stage in the process. The following functionalities are available in a new SAP Fiori app that is compatible with desktops and supports a beneficial user experience on mobile devices like tablets and phones:
- To process customer-specific barcodes, barcodes are scanned using the device’s camera or an external scanner.
- Draught setting
- Individuals can specify counting variance.
- Supported data source extensibility
2. Post-Successive Modification
You can do a subsequent correction posting of components from the subcontracting purchase document using the new SAP Fiori app Post Subsequent Adjustment (F5476). This is the case if a subcontractor has used more or fewer components than you had anticipated and posted.
This software focuses on the unique process step of the post-goods-receipt adjustment posting for the subcontracting purchase order.
Types of supported movement include:
- 546 (Goods Issue for By-Product)
- 545 (Goods Receipt for By-Product)
- 544 (Goods Receipt Subcontracting Stock)
- 543 (Goods Issue Subcontracting Stock)
3. Serial Number Handling in Inventory Management
With this improvement, you can track materials right from the start of the internal logistics process, automate the creation of serial numbers to streamline tracking, maintain an accurate inventory of serialized materials, and ensure that serial numbers are correctly maintained during internal goods movements.
4. Effectively Manage reservations
A warehouse clerk can manually make and maintain reservations for goods movements for a warehouse using the new SAP Fiori app Manage Manual Reservations. The app determines predefined rules for processing reservations based on the initial user’s input and adds pertinent default values. You can use various filters to search for reservations, and the results will show general information and specifics about each reservation item. The issuance of items, receipts, and transfer postings can all be planned.
5. GR Process Split Valuation
The Goods Receipt SAP Fiori apps
- Post-Goods Receipt for Production Order
- Post-Goods Receipt for Purchase Document
- Post Good Receipt without Reference
- Post Goods Receipt for Inbound Delivery
Support is currently offered for the split mentioned above valuations. End users can choose a valuation type based on configuration settings, or the apps can display the assigned valuation type for the split valued material.
In the current economic climate, businesses should integrate with customers and suppliers to reduce expenses and increase revenues by putting their products at the ideal time, location, and cost. One of the most important aspects of gaining a competitive edge is the efficient management of the supply chain, which primarily consists of suppliers, manufacturers, wholesalers, retailers, and customers.
The SAP Supply Chain Management (SAP SCM) system was created to meet international requirements. You can ensure coordination between all vendors, distributors, and business partners with the help of this service. And, when you choose VIZIO, you can save company running costs and enhance client interactions via SAP Solutions.
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