SAP S/4HANA – Release for Delivery DEMO

Talk track before the demo:

Meet Daniel, an order fulfillment manager at Velotics, makers of bicycles. Prior to implementing SAP S/4HANA and AATP, Daniel had a really tough job. Velotics uses an online order promising system and therefore orders have always been handled on a first-in-first served basis. This meant that higher priority customers often ended up behind lower priority customers for order delivery and that was affecting satisfaction among Velotics’ most valuable customers.

Unfortunately, changing the order delivery process was very difficult for Velotics: The company operated three factories in silos with separate inventory management systems and production plans. Because of this, it was extremely difficult to prioritize one customer over another or fulfill exceptions for important orders or customers. In fact, moving an order to the front of the line required a big manual effort of counting and rescheduling hundreds, sometimes thousands of items. It could take days and too often resulted in missed orders. And when Velotics inevitably fell short of other orders, then production had to do a rush job, which is expensive and damaged margins with overtime costs and expedited shipping. Plus, David, the head of sales, was never confident if the orders he promised to customers could actually be met on-time. Not only did this make David’s job very stressful, missed orders caused damage to Velotics’ reputation and in some cases, resulted in lost customers.

As Velotics’ business has grown, exceptions have started to become the norm and Daniel’s job is increasingly difficult. On any given day, someone is unhappy with him, whether it be David that must apologize to a customer for a missed order, Kelly in procurement, who has to drop everything to order materials, or Paul in production, which must do a rush order.

Daniel needs a way to organize fulfillment so that Velotics most important customers get priority. The head of sales also wants a way to make Velotics more agile in handling last-minutes changes to fulfillment. And the new process must also ensure the necessary upstream adjustments are calculated automatically and communicated to the entire supply chain.

If he can do this, Daniel will be instrumental in maximizing Velotics’ profit and building a satisfied distributor and customer base as well.

Velotics has just completed the installation of S/4HANA Cloud and AATP and Daniel will first use the Product Allocation functionality to establish fulfillment rules. He can allocate quantities for specific materials at various levels or combinations and in turn reserve these quantities for Velotics’ by customer number (hierarchy of the most important customers), customer group (with shared characteristics like distributor), or geographic region, when demand exceeds supply. The Product Allocation Sequencing allows Daniel to better manage the supply of products which do not follow a fixed pattern of supply.

With only a few clicks, S/4HANA AATP can perform an availability check together with product allocation check so Daniel has a complete picture of available material.

We will also see David, head of sales used the advanced availability to promise functionality to add additional pieces to the existing order of Mountain bikes for Thunder Sports.

Finally, we will watch Daniel will use the Release for Delivery functionality to make a last-minute fulfillment change for their A” customers, which have requested additional quantities of the very popular new Ace Racing Bike.

COMPLETE DEMO TALK TRACK FOR ADVANCED AVAILABLE TO PROMISE DEMO AVAILABLE UPON REQUEST

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