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Intelligent Order Promising

SAP S/4HANA advanced ATP


November, 2022

PUBLIC
In this session…

Business challenges for Order Promising

SAP’s Solution strategy for Intelligent Order Promising

Overview and highlights of SAP S/4HANA advanced ATP

Positioning of SAP S/4HANA advanced ATP

Roadmap

Customer benefits and success stories

Where to find more information

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


Business Challenges in
Order Promising

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3


Challenging market dynamics in Order Promising
New dimension of business and IT solutions

Order promising is NOT only product availability


Need to integrate order promising with other supply chain
Real Time Order Confirmation constraints like transportation, production, procurement in real time

Almost all customers placing order in e-commerce


website or via call-center, need real time order
confirmation dates

Order confirmation based on business


priority and profitability
Limited supply should be allocated to priority customer
orders considering profitability
Keeping your promises
69% of customers are less likely to shop with a retailer in Inventory management across global
the future if an item they purchased is not delivered network and product lines
within two days of the date promised.
Ensure fulfillment of orders from alternative locations or
substitutable products during supply shortage

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


Solution strategy for
Intelligent Order Promising
The Intelligent Order Promising – S/4HANA advanced ATP

As an integral part of the order fulfillment process, SAP


S/4HANA advanced Available-To-Promise provides accurate
Business
Priorities
Profitability
and reliable order promise dates considering the relevant
supplies across the network and critical supply chain
constraints, in real-time, while protecting companies
business priorities and profitability goals.
Demand

Sales
Orders

aATP
Confirmations

STOs

Supply

Warehouse Stock in Production


Stock Orders
Transit

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6


SAP S/4HANA advanced ATP Solution Strategy

Simple Fast Flexible Intelligent Integrated


 Intuitive and  Built natively in SAP  Available in all four  State of the art next  Integral part of End-to-
user friendly interfaces S/4HANA deployment options: generation End business
 Easy set-up and  Uses the master and  Public Cloud order promising processes
functions  Integration to Planning,
maintenance transaction data of  Private Cloud
SAP S/4HANA  Advanced capabilities Manufacturing,
 On Premise to cater to all Procurement,
 Uses latest HANA
 HEC industries Logistics*
technologies

Simplified User Experience Flexibility, Agility & Efficient, Intelligent


& Automation Innovation and Integrated

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *Planned 7
The Integrated Order Promising

Accurate Order Promising considering Consideration of actual production


real time sales, inventory and network constraints while providing confirmation
constraints dates in Make-To-Order scenario*

Order
Promising

Consideration of Demand and Supply Consideration of Transportation Scheduling


Planning constraints during order constraints to provide feasible delivery date
confirmations commitments*

* Future Functionalities
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
SAP S/4HANA advanced ATP
Solution overview
= Cloud
APO Succession with S/4HANA and IBP
= On Premise

or

Production Planning/
Finance Sales Supply Chain Demand Planning Supply Chain Control Tower
Detailed Scheduling
(DP)
Human Sourcing & (PP/DS)
Manufacturing Sales & Operations Planning
Resources Procurement
Global Supply Network
Available-to-Promise Planning Response
Marketing Service … Demand Inventory
(gATP) (SNP) & Supply

SAP S/4HANA SAP APO SAP IBP


Execution Promise to Market
Planning
SAP S/4 HANA SAP IBP
Closer to execution, Orchestrating the Strategic, Tactical and Operational
network to find the right fulfillment Planning

Plant-Centric Planning Network-Centric Planning


Unified Manufacturing Processes –  Detailed Scheduling  Response & Supply Innovative & Re-architected
Plan to Produce in ONE System  Production Execution  Deployment Planning Supply Chain Planning Processes
 Order Promising  Allocation Planning

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10


The SAP ATP Evolution

SAP SCM APO

SAP S/4HANA Supply Chain


gATP
Simplicity Suite

CIF
Products advanced ATP

ATPATP Digital Core ATP


Basic
Functional Depth Performance
ERP ATP APO gATP S/4HANA aATP
SAP ECC

Business Suite

 S/4HANA advanced ATP is developed natively in S/4HANA Enterprise


 No technical migrations available from APO gATP to S/4HANA aATP . Licenses can be converted using standard
conversion policy
 In S/4HANA On Premise, ATP in digital core is same as the SAP ECC ATP
 In S/4HANA Cloud, ATP in digital core has only Product Availability Check (PAC) and Backorder Processing (BOP)
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11
SAP S/4HANA aATP Functional Overview#

Automotive / Mill & Mining / CP / LS /


Fashion / Retail /
Hi-Tech IM&C Chemicals
Wholesale

Industry Focus*
Supply Assignment / Supersession / Supply Creation Batch ATP
Supply Protection Multi-level ATP based Confirmation

Cross-Industry
Alternative-Based ATP Analytics Interactive ATP Integrated ATP
Confirmations (ABC)

Foundation
Product Availability Backorder Product Allocations
ATP Scheduling
Check (PAC) Processing (BOP) (PAL)

* There is no industry switch


© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12
# Some functionalities are in roadmap
Product Availability Check (PAC)
Online ATP check

Business Needs Business Benefits


 Customer Service Manager needs to confirm the delivery dates  Promise what and when you can deliver accurately
and quantities for online-received sales orders based on the in real time
current and future stock information  Avoid over-confirmation and penalties
 Understand the confirmation results  Increase customer service level
 Fast response time during online check

Solution Highlights
Sales
 Time phased mass enabled check (parallelization) Orders
 Supply : Current and Future Supply elements
PAC Order
 Demand : Sales Orders (SO) & Stock Transport Orders (STO) Confirmations
 Checks on Plants, DCs, Sub-Locations and Batch Level
 Supports Product Allocations (PAL), Supply Protection (SuP) and STOs

Alternative Based Confirmations (ABC)


 ‘Review Availability Check Results’ display availability situation of all line
items of the sales order
 oData APIs for Product Availability
Warehouse Production Stock in
Stock Orders Transit

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13


Backorder Processing (BOP)
Offline mass confirmation / rescheduling of orders

Business Needs Business Benefits


 Orders received via EDI need to be confirmed en-masse  Manage business priorities and protect customer
considering stock availability, business priorities, urgency, interest
profitability, etc  Manage multi-channel order fulfillment process
 During mass processing of orders lower priority orders  Significantly faster than traditional rescheduling
shouldn’t get better confirmation results than higher priority
ones

Win Confirm as Requested


Solution Highlights
 BOP Set Up - Requirement segmentation and classification Win, Gain, Improve if Possible
Gain
Redistribute, Fill and Lose
 Easy to use ‘select option tool’ for configuring BOP segments
 Customizable filter and sorter for BOP segments Redistribute Might Gain, Might Lose
 Simulation capabilities for BOP segments and BOP Run
 Fiori based BOP Results Monitor
Fill Delete, if Required
 Automated exception handling with BOP fallback variants
 Supports Product Allocations (PAL), Alternative-Based Confirmations
(ABC), Supply Assignment Run (ARun), and Supply Protection (SuP) Lose Delete All Confirmations

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14


Product Allocations (PAL)
Protect your business priorities

Business Needs Business Benefits


 Prevent single customer from buying the entire available  Manage shortage situations by maintaining sales
quantity and other requests not being satisfied constraints
 Confirm orders against future notional production capacity  Commit based on capacity during stock unavailability
 Consider transportation and other delivery constraints while  Improve customer service levels by confirming orders
confirming orders based on delivery constraints

Availability
Constraints
Solution Highlights
 Simple and flexible Product Allocation set-up
 Both Sales and Capacity constraint based Product Allocations
Sales Capacity
 Hierarchical / Sequential allocations (logical ‘OR’) Constraints
Constraints
 Simultaneous multiple Allocation checks (logical ‘AND’) PAC
 Excel download and upload for mass maintenance
Sales
 Monitor and analyze Product Allocation situation Orders
 Support Variant Configuration characteristics and custom characteristics
 oDATA APIs for importing / exporting allocation quantities from external Order
PAL PAL Confirmations
systems STOs
 BAdI for customer enhancements to influence Product Allocation check

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15


ATP Scheduling
Determine accurate delivery dates

Business Needs Business Benefits


 Consider transport time, loading time, pick pack time,  Commit to customers exactly when the orders can be
transportation planning time to confirm orders after the stock is delivered
available in the delivery location  Flexible scheduling options

Solution Highlights
 Determine the earliest confirmed date on which the requirement can be
fulfilled, the system performs backward and forward scheduling, starting
from the delivery date originally requested by the customer.
 Scheduling considers the durations for picking and packing, loading and
transportation that you have maintained in customizing as well as the
lead time for transportation planning

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16


Alternative-Based Confirmations (ABC)
Visibility across network, look for substitutes

Business Needs Business Benefits


 In case of stock unavailability, fulfill orders from the inventory in  Improve order fill rate by intelligently selecting
alternative plants and/or from stocks of substitutable materials alternative locations and substitutable products.
 Choose the best possible substitution based on the current  Reduce inventory carrying costs
situation than a fixed sequence of alternatives  Reduce Backorders

Alternative Confirmation
Control and based on
Solution Highlights Substitution best
 Easy to configure alternative control and substitution strategy Strategy alternative
 Support of both product and location (plant/ storage location) substitution
 Feature rich substitution master data

Read

Rate
 Decision to trigger ABC during Sales Order creation or change
 Dynamic selection of alternative: best fit (vs first fit)
 Supports Product Allocations (PAL) and Supply Protection (SuP)
 Alternative Determination rules: Max-Earlier Confirmation, List of all
ATP results
Full Confirmation, On-Time Confirmation possible / Check of alternatives
 Partial confirmations from multiple plants with subitems allowed
substitutions
 Tie-Breaker logic for equally placed alternatives
 Only available for sales orders
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17
ATP Analytics
Product Allocation Overview

Business Needs Business Benefits


 Analyze and monitor Product Allocation data to understand the  Better understanding and monitoring of overall and
product allocation situation detailed Product Allocation situation
 After Supply Assignment Run, analyze the Supply and Demand
situation to take necessary actions.

Solution Highlights
 In the Product Allocations Overview App.
– Drill down and analyze the product allocation situation for product
allocation objects, characteristic value combinations in different
periods.
– Drill down into order items and identify all consumed product
allocation quantities and the order in which the quantities have been
consumed

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18


Interactive ATP
Release for Delivery App

Business Needs Business Benefits


 Need to make last minute manual changes to confirmation  Intuitive and fast reassignment of stocks
quantities of orders in case of escalations from customers.  Impact analysis while confirmation changes
 Avoid over-confirmation situation during manual changes.
 Easy to find and manipulate orders that the Order Fulfillment
Manager is responsible for.

Solution Highlights
 FIORI based interactive changes to sales order confirmations
before releasing the orders to delivery
 Impact simulation of current ATP situation
 Direct navigation to Sales Order
 Display of Batch and Allocation restrictions. ( Order with Product
Allocations cannot be modified to avoid over confirmation
situation)
 Visual representation of the stock situation of a material/plant
 Worklist refresh before releasing changes to accommodate
background changes

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19


Supply Protection (SuP)
Reserve supplies to protect key customers

Business Needs Business Benefits


 During supply shortage situation certain customers or regions  Protect interests of key customers / sales group
need minimum guarantee of supply.  Avoid escalations during stock-out situation
 Orders from higher priority customers or channels should have  Optimize profitability by providing better fulfillment
better fulfillment than lower priority orders. to more lucrative orders

Solution Highlights
 Protect quantities of a material in a specific plant against other
competing demands.
 Core (horizontal) protection where complete groups are protected
against each other
 Prioritized (vertical) protection where the protection is prioritized, and
every group is only protected against the demand of a lower priority.
 Combination of core and prioritized protection
 Available only with Product Availability Check (PAC)
 Protection can be defined based on characteristics assigned via
‘manage characteristics catalog.’
 Enhanced usability and explanations.
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20
Supply-creation Based Confirmation (SBC)
Confirm MTO/ATO orders considering manufacturing constraints
Business Needs Business Benefits
 Customer Service Manager needs to confirm the delivery dates  Manage shortage situations by leveraging
and quantities for online-received sales orders for make-to- production capacity
order items based on the component and available capacity  Immediate confirmation results for make-to-order
 After Checking existing stock, Customer Service Manager products
wishes to schedule a production run and provide confirmation  Leverage finished goods inventory, production
date to customer capacity, and component availability to achieve
maximum Service levels

Solution Highlights
 Immediate interaction between Sales and Production
 Considers Resource capacity and component availability MTO
simultaneously Sales
Order
 During the aATP check, PP/DS is called at finished product level for Orders
PAC SBC Confirmations
multilevel demand and supply matching, supply planning, detailed
scheduling and supply element creation* Component
 APO-MATP-like functionality with product availability check Stock
(PAC) only at component level **
 During sales order entry or change, an advanced Available-To- Replenishment
Orders
Promise (aATP) check can call a source for a Bill of Material (BOM)
and routing explosion **
Resource SAP S/4HANA
Capacity
PP/DS
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
* Planned 2022 S/4 HANA Release 21
** Planned 2023 S/4 HANA Release
Business Process Scheduling (BPS)
Configuring Transportation and shipment scheduling during order promising
Business Needs Business Benefits
 Currently in S/4HANA existing SD Scheduling is not state of the  Increased scheduling precision will allow higher
art (manual limited master data process) customer satisfaction
 Advanced scheduling configuration of complex logistical  Minimize time to customer
processes  The same intelligent transportation scheduling
 Decoupling of business documents from a concrete scheduling results across multiple logistical processes
application

Solution Highlights
 One central scheduling solution for many scheduling relevant Sales Order Logistics
business documents Promising Transportation and
Sales and
Available to Promise Warehouse
 Enablement of a fully flexible delegation of the determination of Distribution
Management
durations and dates to multiple scheduling providers
 All logistically relevant dates can be calculated based on the most S/4HANA SD
Sales Order ATP Check SAP SD
Creation (basic) Scheduling
accurate durations and calendars for the involved activities and
entities
New
 Customizing to flexible invoke sources via standard APIs (enabling SAP S/4HANA aATP
Advanced Business OVD-based
ATP Check Process scheduling
of customer and partner extensibility) Scheduling

 Providing of intelligent transportation scheduling capabilities that


Transportatio Transportatio
reach and even transcend former ERP-APO capabilities SAP S/4HANA TM n Scheduling n Route

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC


* TM integration is planned in future roadmap 22
Supply Assignment (ARun)
Fix confirmation till final delivery

Business Needs Business Benefits


 Sort the demand (as well as the supplies) based on business  Improve delivery performance for important customers
rules to assign the right stock to the most important demand  Improve customer service levels by ensuring right stock
especially in supply shortage situations to right demand in a supply shortage situation
 Ensure hard commitments for demands and assign the  Take informed decisions by analyzing supply and
relevant supply to the appropriate orders from the point of order demand situation for assigned orders
promising to final delivery.
 Need to monitor the supply demand situation and modify the
assigned stocks easily.

Backorder Processing
Supply
Solution Highlights Assignment
 Perform Supply Assignment Run for relevant materials in Backorder
PAC
Processing (BOP) using all core functionalities of BOP Configuration, Sales
BOP Run and BOP monitor. Orders / Confirmation
Stock
 Flexibility to consider future supplies within a specified horizon, rules to Transport
sort supplies, and option to retain or delete previous assignments. Orders PAL
 Proportional Distribution for Fair-Share distribution of stocks
 Insight to Action tool to evaluate the assignment situation and to enable
the user to take manual actions like create/change existing assignments,
Supply Outbound
create outbound deliveries ABC*
Assignment Insight to Action Deliveries
 In Supply Assignment Overview Apps do flexible and detailed analysis Available to Promise
of supply and demand situation for different dimensions and KPIs, in both
graphical and tabular formats
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *only for Sales Orders 23
SAP S/4HANA advanced ATP – Screenshots

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 24


SAP S/4HANA
aATP Positioning
SAP Digital Supply Chain Delivers End-to-End Acceleration
Creating the responsive design-to-operate process and customer-centric
supply chain that are the backbone of a resilient business
Design
• Instill the voice of your customer to continuously refine product requirements
• Collaboratively develop innovative, sustainable, and compliant products
• Close the loop in performance and operational analysis to improve products and customer satisfaction

Plan
• Apply downstream market lead indicators to deliver superior predictive demand modeling
Order Promising

• Use self-learning and process intelligence to deliver touchless planning and align decisions
• Extend supply chain visibility to respond to exceptions in real-time

Manufacture
• Provide a holistic view of processes and production to improve efficiency and profitability
• Continuously refine end-to-end execution to improve throughput, responsiveness, and quality
• Move from linear to modular and hybrid production process

Deliver
• Enable digital logistics and fulfillment to improve speed, accuracy, and cost
• Capitalize on logistics rates, capacity and proximity to improve service and sustainability
• Use new services and fulfillment models to improve both costs and top-line growth

Operate
• Deliver closed-loop asset and service management to improve uptime and SLAs and reduce costs
• Offer equipment as outcome-based services to transform business models and increase re-use
• Provide collaborative processes that connect suppliers, operators, and partners to accelerate service

Network
• Enable better collaboration between shippers and carriers for improved process efficiency
• Improve collaboration between manufactures and operators for Asset Management

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 26


= Cloud
APO Succession with S/4HANA and IBP
= On Premise

or

Production Planning/
Finance Sales Supply Chain Demand Planning Supply Chain Control Tower
Detailed Scheduling
(DP)
Human Sourcing & (PP/DS)
Manufacturing Sales & Operations Planning
Resources Procurement
Global Supply Network
Available-to-Promise Planning Response
Marketing Service … Demand Inventory
(gATP) (SNP) & Supply

SAP S/4HANA SAP APO SAP IBP


Execution Promise to Market
Planning
SAP S/4 HANA SAP IBP
Closer to execution, Orchestrating the Strategic, Tactical and Operational
network to find the right fulfillment Planning

Plant-Centric Planning Network-Centric Planning


Unified Manufacturing Processes –  Detailed Scheduling  Response & Supply Innovative & Re-architected
Plan to Produce in ONE System  Production Execution  Deployment Planning Supply Chain Planning Processes
 Order Promising  Allocation Planning

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27


SAP Digital Supply Chain Solutions for Plan
Connect strategic and operational planning with real-time visibility and execution

Integrated Business Planning

SAP Integrated Business Planning (IBP) SAP S/4HANA


Supply Chain Control Tower Production Planning and Detailed Scheduling (ePPDS)
Demand
Inventory Advanced Available to Promise (aATP)
Sales & Operation Planning MRP
Demand Driven Replenishment Service Parts Planning(eSPP)
Response and Supply

Be more responsive and reduce the time of planning cycles and connect across departmental silos for
a unified view of real-time supply and demand that helps balance inventory and service levels
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28
S/4HANA (basic) ATP and SAP S/4HANA advanced ATP

advanced Available to Promise (aATP) Faster, Simpler and


 Mass enabled fast availability check** More Intelligent Order
 Backorder processing with intuitive requirement classification** Commitment
 Use-case-driven product allocation check
 FIORI App for Release for Delivery
SAP S/4HANA Supply Chain
 Intelligent and automated selection of best confirmation considering alternative
plants and substitutable materials
Suite  Review Availability Check Results
 Supply Assignment to ensure guaranteed delivery
 Supply Protection for key customers during short-supply
Products advanced ATP  Supply creation-Based Confirmation (integration with Production)
 Advanced transportation scheduling (integration with SAP TM)*

Digital Core Basic ATP


Available to Promise (ATP)
 Product availability check
 Basic allocation check
 Manual material determination
Enterprise Management  Semi-manual plant substitution
 Material-/plant-based Backorder processing for sales orders (rescheduling)
 Simple transportation and shipment scheduling based on days (and hours)

basic availability check

* Roadmap items
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 29
** available with basic ATP in S/4HANA Public Cloud
Product Allocations Planning in IBP R&S
Product Allocations Management and Enforcement in S/4HANA aATP
Use the product allocations planning as a bridge between the planning and order fulfillment side
processes. Ensure the right amount of supply is being allocated to the right channel partners.

Import Product Allocations


from IBP –R&S through APIs

• Plan product allocations (overall supply will be


constrained in relation to the overall demand) • Display and manage Product Allocation Data
• Maintain/adjust product allocations • Product Allocation check during sales order
creation/change and BOP
• Re-adjust product allocations (monitor customer
consumption levels and react to deviations against • Monitor Product Allocation Consumption
forecasts)
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 30
Intelligent Order
Promising –
Roadmap
Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. Except for your obligation to
protect confidential information, this presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no
obligation to pursue any course of business outlined in this presentation or any related document, or to develop or release any functionality mentioned therein.

This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject
to change and may be changed by SAP at any time for any reason without notice. The information in this presentation is not a commitment, promise or legal obligation
to deliver any material, code or functionality. This presentation is provided without a warranty of any kind, either express or implied, including but not limited to, the
implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated
into a contract. SAP assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross
negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making
purchasing decisions.

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 32


SAP S/4HANA aATP Functional Overview#

Automotive / Mill & Mining / CP / LS /


Fashion / Retail /
Hi-Tech IM&C Chemicals
Wholesale

Industry Focus*
Supply Assignment / Supersession / Supply Creation Batch ATP
Supply Protection Multi-level ATP based Confirmation

Cross-Industry
Alternative-Based ATP Analytics Interactive ATP Integrated ATP
Confirmations (ABC)

Foundation
Product Availability Backorder Product Allocations ATP Scheduling
Check (PAC) Processing (BOP) (PAL)

* There is no industry switch


© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 33
# Some functionalities are in roadmap
Labs Preview
(Subject to change without warning)

S/4HANA advanced ATP: Key Functionality Roadmap

2016 2019 2022 2023 2025


Supply creation Based Confirmation (ATP integration with Manufacturing)

Supply Assignment Supply Protection Segmentation N:M

Business Process Scheduling (ATP integration with TM)

ABC – Product Substitution KITs/SETs

ABC – (Storage-)Location Substitution 3rd party/TPOP Consolidation/MISL

ATP Analytics

Interactive ATP (RfDy , RACR) Interactive Mass Processing of Orders (eBOPI)

Product Allocations (PAL) Usability Enhancements

Backorder Processing (BOP) Netchange Filter / Fair Share

Product Availability Check (PAC) Fine grained Scope of Check

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 34


Labs Preview
(Subject to change without warning)

S/4HANA advanced ATP: Current State and Roadmap* Available: As of 2021 OP Release
Planned: within 8 Quarters
Future: 8 to 16 Quarters
Vision : Beyond 16 Quarters

Available Planned Future Vision


 Mass enabled product availability check in daily bucket.  PAC Check in sub-daily / custom time bucket / cut-off times
Availability

 Checks on Plant, Sub-Location and Batch Level. 


Product

Flexible confirmation customization (e.g. zero confirmation after certain time)


Check
(PAC)

 Confirmation Distribution to manage intermittent availability of  Further customizable Scope of Check (ATP categories)
supply  Bow-Wave / Quarantine / Maturation processes
 oData APIs for Product Availability Check  Parameter dependent safety stock

 Fair Share Distribution


 BOP Set Up - Requirement segmentation and classification  Net Change Filter (EDQA)
Back Order
Processing

 Filter and Sorter for BOP segments  ABC in BOP (selection and check of subitems only)
(BOP)

 BOP Results Monitor


 Automated exception handling with BOP fallback variants  Flexible monitoring via custom
 Select Option Tool for BOP segments aggregations
 Simulation for BOP segments  Configurable confirmation strategy
Product Allocations

 Product Allocation Set Up


 Product Allocation Checks during PAC and BOP
  Usability improvements
Excel upload/download for mass maintenance
 Performance enhancements
(PAL)

 PAL Sequence (Logical ‘OR’)


  PAL in RfDy
Simultaneous multiple PAL checks (Logical ‘AND’)
 Capacity based Allocations
Foundation  oData APIs for Product Allocation
Functionalities  Quick Edit for maintaining Product Allocation data
 Support of Variant Configuration characteristics  Support and integrate with new / future scenarios and processes

 Field catalogue to manage influencing characteristics  oData API for simulative ATP check
Topics
Cross

 Granular Authorization for characteristics catalogue (PAC & PAL & SUP)
 STO Support for PAC, BOP and PAL  oData API for ATP with quantity reservation all BMs
 Support of Scheduling Agreements with
 Support of Scheduling Agreements w/o call off and ABC
call off

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 35


*Functionalities would follow Quarterly release cycle of SAP. For more recent updates, please refer www.sap.com/roadmaps
Labs Preview
(Subject to change without warning)

S/4HANA advanced ATP: Current State and Roadmap* Available: As of 2021 OP Release
Planned: within 8 Quarters
Future: 8 to 16 Quarters
Vision : Beyond 16 Quarters

Available Planned Future Vision

 ABC set-up and control. (since 2021 also OVD-based)


Confirmations (ABC)

 Additional standard and customizable.  Consolidation of locations


Alternative Based

 Product-, plant- and storage location- substitution during order determinations to define best alternative  Selection of best alternative for multiple order line
creation, change and Back Order Processing items (aka: MISL)
 Inline plant substitution without subitems.  3rd party direct shipment
 Support Product Allocations.  Characteristics substitution for configurable
 New substitution master data for product-, plant- and storage materials
location- substitution  Means of transport substitution
 Simultaneous product-, plant- and storage location substitution

 Release for Delivery App  Change of confirmations in RACR  Interactive Mass Processing of Orders (eBOPI)
Intera
ctive
ATP

 Review Availability Check Results (RACR)  PAL in RfDy


 Manual selection of alternatives

 Further explanations in RACR  Availability Overview


Analytics

 Product Allocation Overview and Monitor  ATP Results Overview and Monitoring
 ABC and basic-method intermediate result explanation in RACR

Cross Industry  Supply Protection Set-up and maintenance  IBP-integration


 Consideration of horizontal and vertical supply protection during
Miscellaneous

Functionalities  Consideration of transportation constraints during ATP check


ATP check  Transportation Shipment Scheduling using SAP TM & OVD for calendar and durations
 Usability enhancements for Supply Protection  ATP integration with other S/4HANA modules (Service Order, Material Reservation)
 Cross-S/4HANA ATP / central S/4HANA aATP
 Machine learning capabilities
 onHold: Qualtrix integration (Starting with ABC)

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*Functionalities would follow Quarterly release cycle of SAP. For more recent updates, please refer www.sap.com/roadmaps
Labs Preview
(Subject to change without warning)

S/4HANA advanced ATP: Current State and Roadmap* Available: As of 2021 OP Release
Planned: within 8 Quarters
Future: 8 to 16 Quarters
Vision : Beyond 16 Quarters

Available Planned Future Vision


 ATP Support of N:M Segmentation
 Supply Assignment Run  Granular control of Supply Assignment during BOP run
Wholesale


Fashion /

Insight to Action to manage assignments


Retail /

 Supply Assignment Analytics


 Proportional distribution during supply assignment
 ATP support of Segmentation**

 Supply creation Based Confirmation  Supply-creation based confirmation from multiple


 Capacity based Allocations (simple scenarios) (ATP integration sources (complex scenarios)
Mill / IM&C

 Considerations of Variant Configuration characteristics in Product 


with embedded PP/DS to enable Multi-level ATP (production and procurement)
Allocations Capable-to-Promise)  Characteristic Substitution based ATP

 Product substitution for KITs and



Automotive /

Product Substitution master data for extended Service Parts SETs (logical AND)
Planning
Hi Tech

Industry
Specific
 Distributed Order Management
Functionalities
Life Sciences

 Consideration of batches during ATP check


CP / Retail /

 Consideration of Batch Characteristics [Shelf


Life]
 Consideration of Stocks in Transit warehouses /
vehicles

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 37


*Functionalities would follow Quarterly release cycle of SAP. For more recent updates, please refer www.sap.com/roadmaps
Intelligent Order
Promising – Value
Proposition and
Customer Stories
S/4HANA advanced ATP – Value Proposition

38% Improve Customer Service Level


Allocation Management
Decide Intelligently
‘Organizations where intelligent Commit with Confidence Explanation and Analytics
commitments can be made to Real-time, Accurate
accurately schedule delivery
Manage shortages Select Dynamically
dates in real time, have on Segmentation and Priority based Best fit Substitutions
average 38% fewer orders Support Multi-Channel Order Promising
Order Fulfillment Process
back-ordered’

24%
‘In supply shortage situations,
organizations using product
allocations based commitment
incur average 24% lower
Expedited Transportation
Spend’
Note on Methodology: Performance metrics represent a comparison of results from companies that have high adoption of process-related best practices vs. companies that do not.
Source: SAP Supply Chain Planning Benchmarking Survey, covering more than 370 companies across 20 industries.
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 39
Customer Adoption Highlights

 700+ customers licensed in On Premise, Essential


Edition, Extended Edition, Private Cloud Edition
and HEC

 250+ customers using aATP productively

 Customers from all industry segments – Hi Tech,


Consumer Products, Life Sciences, Retail,
Wholesale, Fashion, Chemicals, Automotive, Mill
Products and Mining , Industrial Machinery and
Components, et al

 Customer Segment: Large, Mid and Small

 Customer Region: All geographies

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 40


A large Computer Hardware and Accessories Manufacturer uses S/4HANA
advanced ATP to promise orders according to set business rules and
priorities.
IBP
Demand

S/4HANA aATP S/4HANA aATP S/4HANA aATP

Demand Planning
Online ATP Check
Forecasts Product Allocations considering Product Backorder processing
APO DP Management Allocations considering business priorities

Demand Planning

Solution Highlights
 Transition from APO gATP to S/4HANA advanced ATP
 Forecasts from APO DP and IBP Demand are imported to S/4HANA and subsequently used as Allocations in S/4HANA
 Product Allocations are based on standard and custom fields, and uses both forward and backward consumptions
 Master data and transactional data coming from external system via EDIs
 Sales Order created in S/4HANA undergoes online ATP checks.
 Nightly BOP run considering all orders in system sorted by requested delivery date using different BOP segments
 Subsequent BOP runs are triggered on need basis
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 41
A leading Medical Equipment Devices Manufacturer uses an integrated
scenario of SAP IBP and S/4HANA advanced ATP to effectively allocate
Supplies to Sales Orders improving profitability and service levels.

IBP S&OP IBP R&S S/4HANA aATP S/4HANA aATP

Unconstrained Allocations Product Product Allocations Product Online ATP Check considering
Demand Planning Forecasts Planning Allocation Management Allocation Product Allocations
Proposals

Solution Highlights
 Statistical and Consensus Forecasting using IBP – Sales &Operation Planning
 Supply Planning using IBP- Response and Supply
 Constrained Forecast Run using IBP- Response and Supply restricting regional distribution of stocks
 Product Allocation Proposals are imported to S/4HANA aATP using oData APIs
 Product Allocation Management in S/4HANA aATP ( changes are minimal)
 Sales Orders undergo Product Allocations (PAL) and Product Availability(PAC) checks during sales order creation and change
 Nightly batch job to reschedule the orders using Backorder Processing
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 42
Intelligent Order
Promising –
Additional
Information
Find more information on Intelligent Order Promising

Discover SAP S/4HANA Help Portal Discover S/4HANA Discover SAP HANA Cloud Platform

SAP S/4HANA Roadmap SAP Customer/Partner Community for ATP*

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*Reach out to presenter to join community
Thank you.
Follow us

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No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
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These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
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Additional Slides

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SAP S/4HANA advanced ATP

Intelligent Order Promising


Accurate, Flexible and Integrated
 Mass enabled fast availability check
 Backorder processing with intuitive requirement classification
 Use-case-driven product allocation check
 Automated selection of best confirmation considering alternative plants and substitutable materials
 Review Availability Check Results
 Supply Assignment to ensure guaranteed delivery
 Supply Protection for key customers during short-supply
 Advanced transportation scheduling (integration with SAP TM)*
 Capable to Promise functionalities (integration with Production)*

S/4HANA advanced Available to Promise

Product Allocation and Supply Product Availability Check Alternative Based


Protection and Back Order Processing Confirmation Order Scheduling

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC End to End Order Promising 49
Fulfillment & Available to Promise
Deliver to Customer Promises
Deliver to Customer Promises
Accurate and Intelligent Order Promising in Real Time
BUSINESS AT A GLANCE

Inventory across
regional Distribution
Centers

Synchronized
Component Manufacturing and Distribution Production,
Suppliers Assembly Plant Centers Distribution & Sales

KEY PRODUCTS & CUSTOMERS

Retail Stores

Mass Produced Specialized E-Commerce


Standard bikes Sports Bikes Accessories

KEY PAIN POINTS

Responsiveness Profitability and


Volatile Demand | Reliable Delivery Promises | Global Supply Network Global inventory
management
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 51
Deliver to Customer Promises
Challenges with current practices

Keep your promise with Advanced Available to Promise

Demand and Allocation and Supply Inventory Sales Order


Supply Planning Protection Management Management Management
Key Challenges
• Low forecast accuracy
1 2 3 4 and non-consideration
of real time supply
Demand and Supply Planner
Low forecast accuracy and
Order Fulfillment Manager Order Fulfillment Manager
Master Data Specialist
Sales Manager
• Orders do not get
Non-profitable and unfair Inaccurate order promise dates.
uneven demand and supply
allocation of stocks Supply shortage in one Lack of visibility of inventory prioritized according to
matching
location, whereas excess
inventory in another plant.
across supply network
strategic importance
• Unable to track in real
Supply Chain Performance Event Management
Management
Delivery Creation
and Transportation Execution
Back Order Processing time order fulfillment
details.

8 7 6 5
• No ability to match real
time demand and
supply
Supply Chain Performance Supply Chain Logistics Order Fulfillment Manager
Order Fulfillment Manager
Analyst Manager Supply Chain Logistics Manager
Rescheduling of orders
Unable to track the fulfillment Unable to track in real Difficult to adjust order
without priority and business
KPIs and take necessary actions time order fulfillment confirmations resulting in ineffective
goal consideration.
to improve customer satisfaction details transportation management

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 52


Deliver to Customer Promises
How best practices and next practices deliver differentiating value

Keep your promise with Advanced Available to Promise

Integrated Business Allocation and Supply Inventory Sales Order


Planning Protection Management Management Management
Differentiating Capabilities
• High forecast accuracy
1 2 3 4 and consideration of real
time supply
Demand and Supply Planner Order Fulfillment Manager Order Fulfillment Manager
Master Data Specialist
Sales Manager
• Order prioritization
Achieve optimal demand and Effective management of Product  Get accurate and feasible order promise date
supply balancing Allocation and Supply Protection Create fulfillment network with considering all ATP constraints. Understand according to strategic
alternative sourcing locations
and supersessions
the results to take effective actions.
importance
• Ensure optimal stock
Supply Chain Performance Logistics Business Network
Management, SAP Analytics Cloud Global Track and Trace
Transportation Management Back Order Processing allocation during supply
shortage

8 7 6 5
• Real time tracking of
order fulfillment details
Order Fulfillment Manager
for higher visibility and
Supply Chain Performance Analyst Supply Chain  Order Fulfillment Manager
Logistics Manager Supply Chain Logistics Manage  Backorder processing considering
decision making.
Get end-to-end supply chain
visibility to enable performance Capture, process and store goods  Last minute manipulation of orders business priorities, profitability goals
management. tracking information to get real-time before delivery creation and effective and other constraints
transparency based on IoT data. transportation management

*Benefits are based on results IBM, Aberdeen & Gartner Case Studies & Benchmarks from SAP Value Engineering

5-50% Reduction in Order Fulfillment Time* 2-15% Reduction in Days of Inventory* 5-30% Improvement of On-Time Delivery Performance*
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 53
Capability enabled by SAP Industry Cloud SAP S/4HANA Additional SAP Solutions
 Solution Areas / Personas
SAP S/4HANA Advanced Available to Promise
Advanced available to promise commits to orders accurately to

Advanced Available to Promise Sales &


Marketing
meet business rules in real time and enhance customer satisfaction.
Order promising involves providing commitment dates to orders,
reflecting material availability, and enforcing allocations.​
Keeping the Promise! Rosie,
Internal Sales Representative

Why? Wow & How ? So What?


Customer Questions Incremental Capabilities Shareholder Value Map
SAP S/4HANA Advanced Available to Promise Value Creation
• Do we have enough stock today? Required Business Capabilities
Traditional SAP S/4HANA
• Prioritize all customer orders based
First come on &
Product Allocation
• Are there other, more urgent, strategic and financial criteria e.g.,
first serve
priority /
Prioritization Top Line Bottom Line Green Line Strategic
Customer-requested
customer orders? urgency / profitability
order quantities

• Availability
Estimate check
bottom-line impact of this particular Reduce order
• Could we allocate a certain quantity Order commitment fulfillment lead
Highest priority Reduce days in Strategic

order
dates time
customer first inventory reasons

Real-Time Product
to each customer? • Commit to this order (or not) based on your
Availability Check
Back Order
• Do we have the ability to fulfil orders capacity
Processing Realizing Value through KPIs
• Product Allocations
Subcontract if possible / necessary
with alternate materials or plant Alternative Based
Reduce days in inventory Reduce order fulfillment lead
Confirmations time
substitutes? Last minute release
for delivery
High Business Impact High Business Impact
• How can we ensure last minute
account delivery?
Capability Summary Video “When you work in a customized product business like
we do, we don't know what we’re making five days from
now … this is why we implemented aATP” - Stephen
Katsirubas, CIO, Hunter Douglas

Reduced order fulfillment lead time from 8 days to 3 days


– FARMATEC
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