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models, business processes, and work itself to create integration of processes and
need to run consistently and flexibly. It provides uninterrupted,
entirely new drivers for growth. centralized data that can be
real-time transactions and analytics, the ability to work with Big
accessed more quickly.
Data, and connectivity to supporting processes such as
talent sourcing and networks.
Read the business
transformation study.
The Intelligent ERP
Bringing SAP S/4HANA® and SAP® Leonardo technologies together as a digital core results in a more flexible and
intelligent enterprise. To achieve next-generation business processes, companies need an intelligent ERP solution that
can be continuously enhanced and extended with innovative business services and applications built on emerging
technologies. Many consumer products companies have already begun the journey.
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
The digital economy is disruptive. Consumer products companies need strategic priorities that drive transformation. SAP supports a reimagined set of end-to-end
(E2E) business scenarios to support the strategic priorities of working in a digital environment.
Competing as an ecosystem
Expand the boundaries of consumer products by teaming with nontraditional ecosystem partners to deliver higher value at no or low incremental cost.
E2E scenario: Reimagine operational procurement – Leverage a procurement business network that enables effective buyer-supplier
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
collaboration and compliant and efficient processes by connecting trading partners electronically.
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Traditional scenario
Inventory Outbound delivery,
Sales order Manual sales order Scheduled MRP Purchase requisitioning management transport planning, In-transit
capture confirmation on rigid timelines and production lacking visibility and dispatch tracking
Delivery commitments No ability to rerun No way of knowing if a Increased safety buffers Transportation No preconfigured event-
based on outdated materials resource reliable supplier nearby to make up for the lack of process taking place in tracking capabilities
data, resulting in planning (MRP) during could have delivered the inventory visibility, locking disparate systems with
Analytics and reporting
cancelled or delayed the day; material missing part in time up capital inefficient business
done in a separate
orders shortages not known Delayed material postings Interface needed between partner collaboration
business warehousing
instantly, delaying due to high volume of ERP and extended Limited optimization system with no real-time
production production transactions; warehouse management possibilities data update
inability to respond to applications
production issues on time
Up-to-date inventory MRP runs possible Automated decision Minimized safety stock Single platform for Insights in to transportation
information resulting multiple times a day, recommendations and with just-in-time material transportation management execution and tracking of goods
in realistic fulfillment enabling instant integrations in to Ariba® availability with real-time embedded and assets in transit (SAP Global
commitments; identification of Network to quickly locate Single warehousing analytics Track and Trace solution)
rule-based product material shortages the best supplier platform for all Capacity management, Analyze vehicle and sensor
allocations Minimized safety stock warehousing operations planning, collaboration data in real time, optimizing
with just-in-time material execution, charge logistics and improving service
availability management, and (SAP Vehicle Insights application)
settlement in one system
Top value drivers: Improve customer service Reduce inventory carrying costs Reduce logistics costs
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Traditional scenario
No direct analysis of impact when
Multilevel product hierarchy Inefficient product looking for relevant products
Manual product design (semifinished goods) analysis where change is needed
Integration with SAP S/4HANA Recipe finder and recipe Analysis of impacted New analytical capabilities Rapid reaction to changes and
Cloud software for intelligent analysis apps that offer products that helps with hierarchical, easier decision-making that
product design; collaboration multilevel calculation-based users make decisions calculation-based enables faster innovation
internally and with suppliers to search within the product on product changes searches to understand cycles and renovation projects;
enable faster ingredient hierarchy for different or create new product impact of changes and ability to bring personalized
qualification versions versions react to market demand products to market faster
faster through a smoother handover
to manufacturing
Top value drivers: Increase revenue from new products Increase revenue growth Reduce R&D expense
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Traditional scenario
Complex pay
Manual request Errant order management Inefficient receivables and settle terms
• Significant effort needed • Paper- and e-mail-based approval • Manual and error-prone • Proliferation of different payment terms
to search for items workflow and supplier receiving and matching and low acceptance of discount offers
• No guidance to preferred communication, resulting in slow, processes • Check-based payments with low
suppliers, resulting in lost error-prone processes • Inefficiencies caused by paper visibility, and ad hoc and cumbersome
savings opportunities • Inability to easily consult buying and e-mail invoices, resulting in payments process, leading to
• Manual creation and policies, leading to poor compliance delays or missed discounts reconciliation issues and administrative
updates to catalogs by • Manual PO processing redundancies
e-mail or telephone
• Access to an online marketplace • Simple and streamlined policy-based • Electronic tracking of all purchasing- • Small set of standard payment terms
that provides a consumer-grade approvals from any device related documents for greater for seamless settlement
experience • Relevant purchasing documents that compliance • Electronic payments for complete
• Guided buying that navigates are automatically created and • Automated three-way match for efficient, visibility into related invoices and POs
users through proper buying integrated into the relevant systems error-free processing • Holistic working capital strategy for
channels to leverage preferred • Automated, faster, and consistent • Invoice exception handling through terms extension, static and dynamic
suppliers, negotiated pricing, and supplier connections policy-based approval process discounts, supply chain finance, and
in-context policies payment channels
Top value drivers: Reduce procurement function costs Improve compliance on supplier and Improve cash flow with faster invoice
price policies, taxation, and regulations approvals and payments
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Primary capabilities where value can be achieved through SAP S/4HANA, LoB solutions, and SAP Leonardo
• Project and portfolio • Strategic sourcing and • Manufacturing • Demand-driven business • Marketing management
management supplier management management planning
• Sales management
• Product lifecycle • Operational procurement • Asset management • Logistics and order
• Trade management
management fulfillment
• Commodity management
• Service management
• Commerce management
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Capabilities of
Typical Current state Capabilities of cloud-based LoBs
challenges with ERP SAP S/4HANA and SAP Leonardo Business Benefits
• Inability to collect and select • Collection and basic • Innovation campaigns • Availability of innovation
relevant consumer-focused evaluation of ideas as a throughout the enterprise, management in the cloud for • Increased revenue from new
ideas from across the prestage of portfolio with live expert collaboration shorter time to market products
enterprise management and voting for ideas • Increased likelihood of new
• Discovery of promising products meeting revenue
ideas and handover to a and margin targets
stage-gate-driven portfolio
process
• Inaccurate recipes for R&D, • Integration with the • Accurate recipes for R&D, • Ability to create, view, and • Reduced fines and recalls
plant, and site, leading to a SAP Recipe Management plant, and site by using edit multiple recipes resulting from
breakdown of enterprise application different recipe types (with simultaneously noncompliance
processes (procurement, • Ability to access rules recipe development) • Ability to run some key • Reduced scrap
production, service, and available in the SAP ERP • Apps for recipe developers reports live for margin • Increased gross margins
compliance) application instance for based on the SAP Fiori® control, such as finding
selected markets and user experience (UX) percentage of pure
product categories substance in all recipes
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
• Personalized products that • Analysis of existing products • Real-time, calculation-based • Machine learning capabilities • Faster innovation cycle for
force companies to react for reuse happening on analysis on product data in that enable rapid personalized products
quickly and make get new single levels multilevel product hierarchy assessment of potential supported by analytical
product versions out to market • Lack of tools supporting that supports finding versions against consumer collaborative capabilities and
faster collaboration internally and relevant products for characteristics handover to manufacturing
with suppliers to get new changes or new versions • Collaboration on and
ingredient information tracking of data exchange
with SAP S/4HANA Cloud
for intelligent product design
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Capabilities of
Typical Current State Capabilities of Cloud-Based LoBs
Challenges with ERP SAP S/4HANA and SAP Leonardo Business Benefits
• Manual, repetitive tasks and • One-time search for contract • New SAP Fiori apps to • RFx and sourcing event • Higher sourcing savings from
multiple requests that extend documents, but change of manage and perform mass creation, management, unit-price reduction
cycle times search parameter that updates on sourcing collaboration, and analysis • Improved supplier
requires user to go back from documents compliance
• Difficulty in identifying the contract list to search screen • Supplier collaboration for • Enhanced supply chain
best sources of supply with every time • Management of request for contract creation, signing, planning productivity
data spread across disparate quotation (RFQ) and supplier management, and • More-flexible pricing
sources • No possibility of quick action, quotation, and direct syndications (rebates), enabling more-
such as validity extension, execution of simpler targeted business models
• Lack of robust sourcing out of search result list requests • Supplier and end-user
execution process that collaborative workspaces
reduces realized savings • No visibility into or • Native integration to SAP and workflow
information about contract Ariba Sourcing solution to
• Difficulty in getting data to utilization initiate sourcing events out of • Material master, services,
plan and forecast spend, and SAP S/4HANA and bill of material (BOM)
to manage supply chain • Separate searches by user in integration support for
events proactively purchase information • Ability to simulate source of sourcing and contract
records, contracts, supply assignment to check
• Poor contract management, scheduling agreements, and which sources of supply are • Sourcing award and contract
resulting in negotiated info records to identify valid integration using material
savings leakages and source of supply master data to create POs
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Agile Manufacturing
Capabilities of
Typical Current state Capabilities of cloud-based LoBs
challenges with ERP SAP S/4HANA and SAP Leonardo Business Benefits
• Latency due to disparate • Separate manufacturing • Constraint-based planning • Alignment with demand- • Improved manufacturing
systems and inflexibility to planning processes available using various heuristics and driven planning through planning function efficiency
include real-time, changing in planning and ERP optimizers that generates a integration with the SAP • Reduced revenue loss due to
demands in the planning run, systems precise production plan by Integrated Business fulfilment issues
leading to outdated and bringing production planning Planning solution • Reduced total manufacturing
inaccurate planning and detailed scheduling on costs
SAP S/4HANA • Faster, better informed
decision making
• Immediate action taking
• Reduced revenue loss due to
quality and compliance
issues
• Difficulty getting an end-to-end • Quality management– • Quality management • Faster, more accurate • Reduced total manufacturing
view of quality relevant functions integrated processes supported by quality management aided costs
• Time-consuming and inefficient with supply chain new roles in SAP Fiori UX by machine learning • Ability to drive manufacturing
process for recording quality • Different generic UIs and new SAP Fiori apps capabilities performance according to
inspection results available for recording • User-friendly, but organizational goals with
• Delay in informing customers quality inspections comprehensive, user possibility of intracompany
of nonconforming products interfaces for recording the benchmarking
results of different types of
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
inspection characteristics
• Lack of visibility into production • Manufacturing insights with • Real-time alerts based on • SAP Digital Manufacturing
processes, status, and support from IT department bottlenecks in production, Insights solution, which
performance in enterprise using analytical tools such such as time or component enables better decisions to
systems; inaccurate decision- as delays, and in resources achieve superior
making SAP BusinessObjects™ • Plant performance analytics manufacturing performance
business intelligence • SAP Fiori apps for
solutions production supervisors and
operators to provide live
production visibility
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Capabilities of
Typical Current state Capabilities of cloud-based LoBs
challenges with ERP SAP S/4HANA and SAP Leonardo Business Benefits
• Inefficient planning due to long • Planning runs at predefined • MRP runs multiple times a • Supply planning beyond • Reduced overall supply
batch run processes times without real-time data day; single harmonized MRP in conjunction with chain planning cost
• Manual resolution on material • MRP lists working with process for all materials sales and operations • Reduced revenue loss due to
bottlenecks; heavy use of side- snapshots of the (both unconstrained and planning (S&OP) to provide stock-outs
by-side tools to simulate • planning situation during those requiring advanced unconstrained or • Improved manufacturing
• Inability to include real-time planning run constraint-based planning) constrained (optimized) planning efficiency
changing demands in planning • Real-time insights into supply plans
run; inaccurate planning material availability via MRP • Rapid and collaborative
decisions cockpit S&OP, including “what-if”
and scenario planning
• Logistics processes in • Embedded logistics execution • SAP Extended Warehouse • Collaboration with logistics • Improved on-time delivery
disparate systems without management components with Management application partners to improve performance
comprehensive integration into limited functionality, resulting in integrated with SAP throughput, reduce wait • Reduced days in inventory
core business processes the need to set up multiple S/4HANA, supporting all times, and increase • Improved customer
• Analytics and reporting in a interfaces with business suite levels of warehouse efficiencies satisfaction
separate business applications complexity (SAP Global Track and • Reduced total logistics cost
warehousing system with no • Business warehouse–based • Real-time insights for Trace)
real-time data updates reporting with time lag from focused decisions to lower
transaction system costs and optimize inventory
levels
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Capabilities of
Typical Current state Capabilities of cloud-based LoBs
challenges with ERP SAP S/4HANA and SAP Leonardo Business Benefits
• Inability to promise accurate • Global available-to-promise • Advanced ATP check and • Response planning • Reduced revenue loss due to
and reliable order dates (ATP) checks in a different performance improvements capability for midterm fulfilment issues
• Inefficient processes to planning system for releasing large allocation planning and • Fewer back-ordered items
manage orders and allocations • Support for low-volume production orders short-term order confirmation cancelled
• Inability to select alternative back-order processing • Real-time order confirmation in order to automate
sources that considers allocation allocation procedures and
constraints take rapid, effective
• Intuitive back-order corrective action
processing
• Difficulty in getting all customer • Little consolidation of • Single, consolidated view of • SAP C/4HANA suite, allowing • Increased customer
information in one place, leading customer information, customer information users to get consumer satisfaction
to customer churn and a resulting in inaccurate, through integration with information from all company- • Increased revenue
subsequent loss of revenue outdated customer data SAP Marketing Cloud owned and external sources; to
• Multiple, disparate front-end without integration to other solution execute scoring and profiling;
solutions with incomplete solutions to trigger tailored, cross-
integrations, leading to the channel, real-time marketing
organization not meeting its full activities; and to trigger sales
revenue potential activities and leads based on
customer signals
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
• High data volume and low • Limited ability to offer rebates to • More flexibility with settlement • More-flexible pricing
flexibility in rebate processing, additional customers because management (rebates), allowing for more-
resulting in time-consuming invoice history must be rebuilt • Ability to settle retroactive targeted business models
and error-prone processes in batch runs; rebate process rebates immediately without
that cannot use sources other any manual activities
than customer invoices as • Additional sources for rebate
basis for rebate calculation calculation, allowing improved
business models
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Digital
Platform
Data Cloud
Management Platform
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Sustainable product Manufacturing execution Real-time, integrated supply Digital consumer and customer
Digital supplier collaboration
innovation and insights chain planning engagement
Rapid innovation driven by Instant collaboration Connect shop floor to top floor Insights beyond Outcome-based consumer
real-time insight company boundaries experience
SAP® Cloud Platform SAP Ariba® solutions SAP Manufacturing Execution SAP Integrated Business SAP C/4HANA suite
SAP Supply Network and SAP Manufacturing Planning solution SAP Demand Signal Management
Collaboration application Integration and Intelligence application
applications
Promote
Innovate Source Manufacture Supply
and sell
Finance
Allow for visibility into the state of the business at any time
SAP S/4HANA® | SAP S/4HANA Cloud
Digital core
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
SAP S/4HANA provides consumer products companies a proven framework to adopt industry best practices while attaining operational excellence across the full
value chain.
and TCO
• Role-driven, user-centric processes and • Lower testing costs
self-service business intelligence for user • Simplified landscapes
empowerment • Native integration
• Increased productivity with a new role-based way
of working with responsive, intuitive SAP Fiori UX
on all devices
*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. 15 / 17
Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
• 14 FTE’s saved by streamlining intercompany, cross-company, and third-party • 100% visibility of inventory across all locations
processes • 70% less time spent on decision-making
• US$200,000 saved annually through e-archiving and automated invoice reporting • 60% faster transaction processing time
• $100,000 saved annually through better quality control enabled by an SAP Fiori app
• 2.5% decrease in macrologistics costs
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
• Increased customer satisfaction through immersive online experience • 1 day price-planning cycle time, down from weeks
and content richness • 3 weeks to return to full capacity
• Advanced analytics and reporting thanks to SAP HANA®
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