SAP S/4HANA Simple Logistics Business Benefits

Enterprise Resource Planning has logistics as a part of it for reasons of recording transactional data and also simultaneously making transactional processes highly efficient. This lets users detect issues with processes followed by the execution of corrective action. This will need an extremely high level of knowledge and thorough expertise- to analyze and assess issues and the probable solutions. This means users might often settle for sub-par solutions as users lack time resources and real-time data to make and act on the right decisions.

This is where Simple Logistics in S/4HANA transforms logistics from a “System of Record” approach to a “Decision Support System” through the use of data in a more intelligent and proactive manner. Innovations brought in through the HANA platform helps make this possible. The integrated scope of Simple Logistics- placed alongside core ERP functions is augmented by capabilities from SRM, PLM, CRM, and SCM. This also comes with the support for concepts of value chain organizations and associated technologies.’

Automation of complex processes is made possible with the enhanced ability to predict and react to customer needs even before they come up- this is a major innovation that is made possible with SAP S/4HANA Simple Logistics. This will in all likelihood trigger acceleration of innovations along with the expansion of product configuration possibilities. Enterprises will be able to profit greatly from the instant and real-time visibility into customer changes along with the added ability to respond to such changes in real-time, as and when they happen. All this will come because of the digitized core that Simple Logistics runs on.

Checkout the Article-SAP HANA, S/4HANA, and S/4HANA Finance in a Nutshell

Empowering users

Users stand to gain from the analysis of real-time data with business decisions being made in real-time. This is done through the signaling of alerts and providing probable solutions to issues at hand as they crop up. For example, production planners dealing with product shortages will need to analyze reports and extract data present within ERP and that is not readily available. They will also have to wait for material updates through batch job processing and wait for the overnight interface from third party warehouses. Simple Logistics consolidates all this activity by eliminating such archaic and time-intensive processes, with the user being freed up to focus on the actual job role at hand.

Transforming the business and user experience

SAP Fiori user interface works on integrating relevant data and information needed for users to excel in their given job roles. This means users need not remember several transactions- with the help of the cockpit which uses tile-based applications. It has a user-friendly interface that is available on all devices. The main objective here is to every user-defined business role has its needs met in terms of relevant information and nothing that is more than necessary in terms of work processes and activities. For example- Sales Order Fulfilment functionality will see to the user being given relevant information and data from all departments such as production, procurement, logistics, and finance in real-time. Such data will allow the target user to detect the most efficient solution from the available set of potential solutions. All this can be done with just a click of a button, with the user being able to see the expected impact of fulfilling pressing and urgent orders through the simulation of proposed solutions simultaneously.

Effective collaboration

“Customer is King” is an old adage that stands true to this day-with enterprises and businesses building their business around the needs of the customer and how best such needs can be met. It makes sound business sense to incorporate customer data and factor in things such as sentiment analysis through the extrapolation of social media data to make accurate predictions about customer behavior. Social media is an invaluable tool to harness customer shares in terms of products, availability, promotions, and so on. SAP JAM can be used to share such customer-oriented information to encourage a deeper connection with customers and collaboration-based facilitation of work processes. Business-critical problems can be solved through such detailed implementations while driving accelerated results in a collaborative manner. Core customers will instantly feel validated and valued if their input is considered in future product designs and service offerings, while simultaneously accelerating the time to market.

Detailed Benefits of Simple Logistics

The Sales Analytics and SMART Sales Fulfilment Cockpit provide users with enhanced visibility and better control over Sales Order Fulfilment. It helps enterprises to monitor Key Performance Indicators and take necessary corrective action well in advance. There is support for issue management along with the processing of unfinished orders in real-time. Un-completed orders can include Sales, Delivery, and Billing transactions. Such a framework enables enterprises to meet client commitments in the desired time and frequency as well.

Accelerated MRP runs are made possible with SAP S/4 Simple Logistics coupled with the ability of interactive simulations which is extra useful in Trading and Retail situations.

The Material Valuation process has been made hassle-free in Simple Logistics along with a proportional acceleration in the process flow. Also made possible is the minimization of locking issues along with the reduction of post-processing time.

A new data-model will mean accelerated inventory closing, real-time high volume backflush, and event-based reactions.

P2P processes will see increased efficiency with fresh analytics apps that aid in measurement and monitoring of procurement KPIs such as Spend and contract management and so on and so forth. This will be coupled with native integration with enterprise-network systems such as Ariba Networks- this will again make sure of smooth integration for the Procurement and PO Order process.

Business houses will benefit greatly from accounting laws such as GAAP. This is because innovation will come in the form of valuation methods, Utilizing Material Ledger and even multi-currencies.

Sales Order processing will benefit greatly from the new HANA based Comprehensive and Advanced ATP (AATP) Algorithm along with optimized back-order processing. Businesses with single instance ERP, not wanting to invest in a full-fledged APO can gain greatly from AATP. This is especially true when enterprises will need to take advantage of richer functionality. Businesses with high-volumes of sales and high frequency of changes in sales orders can once again gain in a big way with optimized and back-order processing.

Checkout the Article-Users Should Know About: SAP S/4HANA Sourcing & Procurement

Conclusion:

SAP S/4HANA is a revolutionary platform that drives enterprises to work proactively and in a collaborative manner with both suppliers and customers. This is done while internally users will be given real-time data needed by them to concentrate on problem-solving and executing corrective actions.

Coming to Simple Logistics- it acts as the catalyst to eliminating blockages and disconnects between extended lines of business and departments and the like. The highly simplified data model will boost throughput while simultaneously, the new user interface will offer simulation and collaboration capabilities. This means users will have the right information at the right time to make the right decisions.

I hope that by now you have had an overview of SAP S/4 HANA Logistics. Before you enroll in ZaranTech’s certification course on SAP S/4 HANA Logistics , do check out the S4 HANA Logistics demo: