SAP S4 HANA Logistics Process and their Key factors

What is SAP S4 HANA Logistics?

SAP S/4 HANA Logistics (also known as Enterprise Management), is the delta changes from ECC to the S4 HANA platform. It is the integration of certain business processes which earlier were taken care of separately in the ERP system. These are Material Management (MM), Sales & Distribution (SD), Production Planning (PP) and Supply Chain Management (SCM). SAP S4HANA Enterprise Management is more fast & simple as compared to traditional ways of logistics applications in ERP systems as it gives one solution to many problems of production & supply chain.

For every business which possesses the Material Management System, SAP S4 HANA Logistics aka SAP S/4HANA Enterprise Management plays a vital role. This means that it improves its efficiency and performance. It makes a significant impact on these processes by making them more user-friendly and introducing transparency into the whole system.

An important fact is, that another important functional module SAP S4 HANA Finance works in close integration with SAP S4 HANA Logistics. From the time, when ECC was in place (which still is), Logistics modules MM and SD have a close connection in terms of integration with the Finance module (FICO). SAP FI -MM integration and SAP FI-SD integration are highly important parts of the SAP implementation process in any organization.

Read: FI-MM & FI-SD Integration Interview Questions

Key factors of SAP HANA Logistics

Inventory Management in SAP

SAP S/4HANA Enterprise Management helps in simplifying the data model, which in turn results in increased throughput and flexible analytics even at the most complicated level.

Procurement in SAP

SAP S/4 HANA Enterprise Management increases the efficiency of the whole Procurement process significantly, starting from the procurement of material until the payment. Not just this, but it also helps in improving New Analytical Apps and Spends KPIs, Ariba Network Integration for PO Order and IV.

Material Requirements Planning

Introduction of SAP S/4HANA Enterprise Management results in fast MRP run, new working model for MRP controllers based on decision support.

Sales Order Management & Billing

S/4 HANA Enterprise Management simplifies the management of the Sales Oder and Billing Processes. You can perform an end-to-end order-to-cash process and can take relevant action from any exceptions. Even you can take information on the exceptions to resolve the troubleshooting and lower TCO due to data model simplification.

The latest versions of business processes such as SFIN Revenue Accounting, FSCM Credit Management, GTS Foreign Trade, and new analytical capabilities are comfortably supported by SAP S/4 HANA Enterprise Management.

Read Related: Simplifications in SAP S4 HANA

Conclusion

Like the other functional module, SAP S4 HANA Simple Finance, this module too, carries high importance in the implementation of the application in any business model. With its high-end updated features, it makes the business run smoother and more efficiently. Starting from procurement, and production till the final delivery of the product every process generate productivity with S4HANA Logistics.

Pradeep