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Transform
Consumer Products
with SAP S/4HANA®
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*This is a subset of the complete industry portfolio shown later in the “SAP S/4HANA Software Portfolio for Consumer Products” section.
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SAP S/4HANA for Use in Supply Chain for Material Requirement Planning (MRP)
Traditional Enterprise Resource Planning (ERP)
MRP runs in batch multiple hours overnight. MRP
controller reviews in the morning upcoming bottleneck MRP run Collective display
situations. With every change, planning results become of MRP list
immediately outdated. Upcoming shortages of Production orders | Planned
materials need to be resolved individually in a time- orders | Purchase orders |
consuming process on outdated information with heavy MRP controller Purchase requisitions
use of nonintegrated, side-by-side tools to calculate and
simulate. Stock and requirement Side-by-side tools
situation
SAP S/4HANA
A real-time MRP run triggered anytime during the day MRP
delivers the MRP controller timely, up-to date planning SAP Fiori®
results enhanced with superior insights. Graphical launchpad
simulations of inventory situations help to identify
supply at risk. From here, the MRP controller can MRP Monitor production orders
immediately start to resolve issues. controller Manage internal requirements
Manage purchase orders
Monitor inventory
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SAP S/4HANA
Through the sales order cockpit, the sales manager Issues and
can directly access the respective documents to exceptions handling
resolve issues quickly. The cockpit provides the sales through a sales order
person a single point of entry to easily identify order fulfillment cockpit
issues and exceptions. One single point
of entry for sales Resolved
manager Delivered
Billed
More than smarter and faster – reimagining work
Improved Increased
user productivity end-to-end order management
transparency
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SAP Fiori app for load building and efficient • Reduced supply and inventory
order and transport execution planning cost
Lack of accurate, up-to-date inventory data, Inventory status is calculated overnight. Live inventory management through • Increased inventory accuracy
lead times, and procurement timings for the redesigned data model, enabling unlimited • Reduced safety stock inventory
planning lead to an inefficient planning Live inventory updates are not available; simultaneous material movement and • Increased on-time delivery
process. inventory status is reflected in the system allowing for true transparency on inventory performance
with time offset. and material flows
• Improved customer satisfaction
Low inventory throughput prevents live
• Ability for personalized consumer
inventory updates. Inventory throughput may reach boundaries
depending on business scenario. offering (segment of “one”)
Planning systems disregard capacity and Production planning capabilities (MRP and Advanced and embedded production
material constraints. constrained planning) are available planning and detailed scheduling capabilities
in ERP and advanced planning systems in SAP S/4HANA® with harmonized master • Reduced revenue loss due to
Disparate planning and transactional [advance planning and optimization (APO) and data and SAP Fiori user experience (UX) stock-outs
systems lead to data integration latency and third party]. • Increased production plan
errors. adherence
Streamlined data and processes with and
embedded analytics and decision support for
faster MRP-based planning and execution • Reduced total cost of ownership
processes, resulting in more accurate (TCO) through landscape
information and reduced latency planning simplification
Data replication between different systems Replication of business partner, material SAP Extended Warehouse Management
values, purchase, process, and production embedded in SAP S/4HANA core for
order data are transferred to a decentralized reduction of interface complexity and
extended warehouse management system. improved change management of deliveries
* Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA plus LoB and cloud capabilities. As each enterprise is
at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
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* Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA plus LoB and cloud capabilities. As each enterprise is
at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
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SUSTAINABLE PRODUCT PROCUREMENT AGILE MANUFACTURING REAL-TIME SUPPLY CHAIN SALES AND MARKETING
INNOVATION • SAP Manufacturing Execution • SAP Hybris® Sales Cloud
• SAP Manufacturing Integration and • SAP Integrated Business Planning • SAP Hybris Service Cloud
• SAP® Engineering Control Intelligence • SAP Extended Warehouse • SAP Hybris Marketing
Center • Supplier collaboration • Sequenced manufacturing Management Cloud
• SAP Product Lifecycle Costing • Business network • Digital asset network • SAP Transportation Management • SAP Hybris Commerce
• SAP Innovation Management • Guided end-user buying • SAP Product Stewardship Network • SAP Hybris Billing, charging
Suite • SAP 3D Visual Enterprise • External workforce management • SAP Trade Promotion Management
• SAP Enterprise Portfolio and • Constrained-based production • SAP Extended Warehouse • SAP Hybris Billing, invoicing
Project Management planning Management • SAP Hybris Billing, customer financials
Products • SAP Environment, Health, and • Production scheduling • SAP S/4HANA® for advanced • Sales planning and performance
Safety Management • Asset operations and maintenance* ATP management
• Product development and • Operational purchasing • Production operations • Inventory and basic warehouse • Order and contract
project control* • Invoice and payables • Maintenance management management*
Customize applications
• Procurement analytics
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Instant collaboration Connect shop floor to top floor Insights beyond Outcome-based consumer
SAP Manufacturing Execution,
company boundaries experience
SAP® Supply Network Collaboration SAP Manufacturing Integration SAP Integrated Business Planning SAP Demand Signal Management
and Intelligence
Promote
Innovate Source Manufacture Supply
and sell
Finance
Allow for visibility into the state of the business at any time
Enterprise Management
Digital core
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SAP S/4HANA gives consumer products companies a proven framework to adopt industry best practices while attaining operational excellence across all areas of the
value chain with a focus on supply chain and sales.
IT benefits
Empowered Employees* Empowered and total IT benefits and TCO*
employees cost of
• Actionable insights on unified, real-time ownership • Reduced data footprint
data and processes − with built-in system • Merged online analytical and transaction processing
suggestions for decision support (OLAP and OLTP)
• Role-driven, user-centric processes and • Elimination of many desktop clients
self-service business intelligence for user empowerment • Lower testing costs
• Increased productivity with a new role-based way of working • Simplified landscapes
with responsive, intuitive SAP Fiori® UX on all devices • Native integration
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA plus LoB and
cloud capabilities. As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
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dōTERRA Hershey’s
Founded in 2008, the essential oils company needed to scale its systems to keep The Hershey Company leverages SAP S/4HANA to support its business’s
up with booming growth, serving three million customers today across the globe digital transformation to run live. Hershey’s is on a journey to providing an
in a direct-selling approach. uninterrupted flow of information to employees across the company.
dōTERRA went live with SAP S/4HANA, which has standardized their core SAP S/4HANA is seen as the enabler of a live business environment, with
operational processes on a technology platform that will support the company’s deeper analysis and greater insights for better business decisions.
strategic growth and diversification into new markets, products, and channels.
the adaptable SAP solution will scale even as dōTERRA adds millions of new
wellness advocates, expands its offerings, and adds new revenue streams. “Enterprise connectivity is going to be the single most important thing to be
able to win in the marketplace. And we want to win."
J.P. Bilbrey, CEO, The Hershey Company
“We chose SAP S/4HANA for our transformation journey because we believe in
the power of the entire SAP HANA software suite."
Todd Thompson, CIO, dōTERRA
Company Company
dōTERRA The Hershey Company
Industry Industry
Consumer products Consumer products
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