SAP S/4HANA release improves supply chain performance and productivity

Wieland Schreiner, SAP SE

The new SAP S/4HANA 1610 release harnesses a simplified data model and the SAP Fiori 2.0 user experience to reduce complexity, improve supply chain performance and increase business productivity, improving customer service and increasing profits for organisations across industries.

The 1610 release uses prediction and pattern recognition capabilities and machine learning to reduce exception management for routine transactions, enabling employees to focus on higher-value tasks aided by embedded analytics and real-time insights. The release also improves supply chain performance with real-time insights, increased agility and reduced lead times.

Core supply chain enhancements in the new release include:

  • Advanced available to promise (aATP) enables high-performance, real-time ATP order confirmation and the ability to allocate constrained supply according to customer priority;
  • Inventory management takes advantage of a range of SAP Fiori apps to improve inventory visibility and provide real-time status updates of items in transit;
  • Material requirement planning (MRP) includes embedded production planning and detailed scheduling (PPDS) natively deployed to accelerate MRP processing times from hours to potentially minutes;
  • Extended warehouse management (EWM) is embedded to simplify advanced warehousing capabilities including automation with mechanical handling equipment, task and labour optimisation and the use of mobile devices; and
  • Environment, health and safety (EHS) management uses real-time data to support EHS practitioners in managing operational risk, worker safety and compliance.

“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, SAP S/4HANA, SAP. “Innovations in line of business and industry functionality allow companies to realise productivity gains and dramatically simplify their IT landscapes.”

The new SAP S/4HANA release allows organisations to meet specific industry digital transformation needs. Customers requiring retail functionality such as merchandise management gain the ability to make holistic business decisions based on harmonised master data. Oil and gas industry customers can take advantage of upstream and downstream functions, including hydrocarbon product management, and a real-time inventory planning workbench with enhanced simulation capabilities for supply chain scheduling, providing insight and flexibility to better meet the needs of end customers.