SAP Updates S/4HANA ERP Suite

SAP Updates S/4HANA ERP Suite | Accounting Technology: 

"SAP has released S/4HANA 1610, the latest enhancement to its ERP business suite. 

The new release offers prediction and pattern recognition capabilities, and machine learning. The aim is to reduce exception management for more routine transactions so users can focus on higher-value tasks. 

 The following supply chain enhancements are included in the new release: 

• Advanced available to promise offers newly enhanced capabilities to manage supply allocations at multiple levels of real-time ATP order confirmation. S/4HANA 1610 also now has back-order processing and interactive rescheduling methodology to help manage tasks based on customer priority. 
• Inventory management to improve inventory visibility and to track slow-moving items, monitor shelf life and provide real-time status updates of items in transit. 
• Material requirement planning , which includes natively deployed embedded production planning and detailed scheduling. 
• Extended warehouse management is embedded to simplify adoption of advanced warehousing capabilities without the need to integrate a separate system. The EWM app can be used in both embedded and stand-alone deployments. 
• Environment, health and safety management uses real-time data intended to support EHS practitioners in managing operational risk, worker safety and compliance, with integrated solutions for incident management, chemical management, operational risk assessments, industrial hygiene/exposure monitoring, regulatory compliance and emissions management. 

“With this third major on-premise release of SAP S/4HANA, companies of all sizes can take advantage of innovations offered across lines of business and industries,” said Wieland Schreiner, executive vice president of SAP S/4HANA in a statement. “Innovations in line of business and industry functionality allow companies to realize productivity gains and dramatically simplify their IT landscapes.”"

Read the full article at Accounting Today

Reorder Point Procedure or PD with Safety Stock?

Have you ever wondered why planners tend to rather use a safety stock with MRP Type 'PD' to buffer variability, as opposed to a reorder procedure? Oftentimes PD is used across the board and no one wants to bother with another MRP type. However, with SAPs standard configuration the safety stock doesn't serve as a planning buffer and the additional inventory ends up being dead stock.

Inventory Management - 3 questions that you should know the answer to... | Supply Chain Action Blog

Inventory Management | Supply Chain Action Blog: "If you can’t answer these 3 questions in less than 10 minutes (and I suspect that you can’t), then your supply chain is not the lever it could be to drive more revenue with better margin and less working capital: 1) What are inventory turns by product category (e.g. finished goods, WIP, raw materials, ABC category, etc.)? How are they trending? Why? 2) What is the inventory coverage? What will projected inventory be at by the start of a promotion or season. Within sourcing, manufacturing or distribution constraints, what options do I have if my demand spikes or tanks? 3) What proportion (and how many) of your customer orders (or margin or revenue) shipped at 99% on-time and in-full? How many at 98%? And so on . . . Do you understand the drivers?"

How uncertainty in Lead time affects the Safety stock?

In a supply chain, calculating the lead time of the raw materials, with a fair degree of accuracy is critical.  In most of cases, the lead time cannot be calculated precisely and there exists a certain level of uncertainty in lead time. This uncertainty has a considerable impact on the safety stock of the raw […]


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