SAP S/4HANA Cloud Supply Chain Highlights

SAP S/4HANA Cloud Supply Chain Highlights

SAP has released further updates to their S/4HANA Cloud Intelligent ERP System. Thankfully, documentation is always kept up to date despite the dynamic release schedule. This allows us to follow the launch of new features and functionalities attentively.

An example of such documentation is the ‘Simplification List’, a document written and updated by SAP to enable organizations looking into the S/4HANA conversion process for legacy systems such as SAP ERP 6.x.
The document is divided into different functional areas and each new feature contains a description, its business impact, and accompanying SAP notes. This information is release-dependent with the last update from May 2021, version 2105.

In addition, SAP also offers the ‘What’s New’ document which highlights all changes that were released, updated, or removed with each new system version. This document will serve as the basis for this blog post. The documentation we mentioned is available via an online tool called What’s New Viewer – SAP S/4HANA Cloud. The tool allows you to filter the available information by Line of Business, Solution Area, or Category and get a quicker overview of the latest system releases.

Why S/4HANA?

First and foremost, moving to S/4HANA should be considered as a once-in-a-lifetime opportunity to welcome digital transformation to your organization with brand-new, innovative tools for managing your day-to-day business activities. Recently, SAP has announced that support for SAP legacy ECC systems will cease after 2025. This means that there is no better time to embark on a true end-to-end business transformation project for your organization.

SAP S/4HANA has seen many releases throughout the years, with the latest version bringing forward the following benefits:

  • Better Decision-Making Support
  • Increased Performance
  • Higher Productivity
  • Simplification
  • Cost-Effectiveness

Supply Chain

Some additions to the new release to S/4HANA in the area of the Supply Chain include the following:

1. Logistic Cross Topics

  • New configuration steps have been added to the FIORI app used for batch management – define worklist folders, assign worklists to users or define quantity proposal procedures in batch determination by using a BAdI;
  • New configuration steps on handling unit management – define packaging material types, define handling unit type, maintain SSCC generation for each warehouse number;
  • New FIORI apps allowing the creation of handling units and planned handling units for documents due to delivery, in different manufacturing environments.

2. Inventory

  • Enhancement of SAP FIORI apps to support serial numbers during Goods Receipt process
  • Possibility of activate batch classification, for each type of movement, for Goods Movements in IM and how it is to be carried out
  • A new feature allows the physical inventory posting to trigger new Business Transaction Events - Created, Changed, Posted, Stock-counted, and Deleted
  • Serial number handling is now available by using a BAdI
  • Usage of account assignment category M (Sales order stock w/o Cost Object) in the Post Goods Receipt app, to Inbound Delivery, or to Purchasing Document

3. Warehousing

  • New configuration steps added for the warehouse master data, goods receipt and goods issue processes, interfaces with other components, and also for cross-processes
  • Innovations for inbound process - staging areas, flexible putaway strategies
  • Innovations for outbound process – a new app to pack stock, own work centers, and flexible stock removal strategies
  • Innovations for storage and operations – ABC analysis of products, flexible stock determination, enhanced replenishment

4. Delivery

  • New BAdIs are provided to be used in Post Goods movements
  • New feature of reference a sales scheduling agreement when creating an outbound delivery
  • New feature for calculating fuel surcharges
  • New configuration steps added in transportation management

What's Next?

As a resume, we can say that this new release brings new and good challenges to the customers and to new S4/HANA implementations. Not only from a Supply Chain point of view but also from Finance, Sales, or even Source and Procurement.

Warehousing can be considered the area with more innovations in this release 2105. With new features available and new configuration steps, this area has been a big bet from SAP and is allowing the users to have a better experience on a daily routine.

If you want to know more about this topic, let us know. Please get in touch with our team.