Sap SCM 2

SAP Road Map for Digital Supply Chain
December 2018
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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. 2
About SAP road maps
Companies today are planning their digital journeys – transforming business models, reengineering business
processes, and reimagining work.
SAP road maps highlight innovations that may help you plan and implement your digital journey. They span
products relevant to lines of business in your industry and explain how our innovations may add value to your
business.
In our road maps, you can learn about our innovations along four different timelines:
1. Recent innovations for our products that have been launched in the past weeks or months and can
already be purchased
2. Planned innovations for our products that are intended to be launched in the short term or midterm
3. Solution direction, providing a long-term perspective on high-level development plans for innovations for
our solutions – inspired by your requirements
4. Solution vision, providing a high-level and long-term business perspective on innovations for our solutions

Digital transformation is driving supply chain trends
Challenges in supply chain To transform, businesses must

management: pursue strategic priorities:
 Rising customer expectations and volatile  Manage changing business models across
demand the full customer lifecycle
 Increasing manufacturing complexity to  Balance global and local manufacturing and
serve the “market of one” embrace technologies such as automation,
robotics, machine learning, and 3D printing
 Need to manage and leverage the networked
economy to meet customer demand  Collaborate and share across department,
company, and industry boundaries
 Changing society due to increased
urbanization, growing emerging markets, and  Capture real-time data from across the
changing workforce business network and provide role-based,
predictive, decision-supporting solutions
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© 2018
2018 SAP
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an SAP
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This presentation
This presentation and
and SAP‘s
SAP‘s strategy
strategy and
and possible
possible future
future developments
developments are
are subject
subject to
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change and
and may
may be
be changed
changed by
by SAP
SAP at
at any
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time for
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limited to,
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impliedwarranties
warranties of
ofmerchantability,
merchantability, fitness
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non-infringement 4
4
The Intelligent Enterprise framework

Our digital supply chain solutions help you become an intelligent
enterprise
Digital Business Digital Logistics and Digital Manufacturing Digital Products and
Planning Order Fulfillment and Operations Asset Management
Demand Management and Manufacturing Operations and Project and Portfolio
Warehouse Management
Insights Safety Management
Sales, Inventory, and Operations Manufacturing Execution Compliant Product Lifecycle
Transportation Management
Planning (Industry 4.0) Management
Response and Supply Planning Logistics Networks Manufacturing Networks Asset Management
Explore our digital supply chain solutions on SAP Solution Explorer.

Digital Business Planning
Key recent and planned innovations (1/3)
Recent innovations 2019 – Planned innovations1

Demand Management and Insights Demand Management and Insights
 SAP Demand Signal Management, version for SAP BW/4HANA (on premise,  Improved exception management usability and contextual navigation from
SAP Demand Signal Management) alert monitor (cloud, SAP Integrated Business Planning, Q1/19)
 SAP Demand Signal Management for SAP S/4HANA Cloud, single tenant  Editing of machine learning parameters for DBSCAN (cloud, SAP Integrated
edition (cloud, SAP Demand Signal Management) Business Planning, Q1/19)
 Integration of SAP Leonardo Machine Learning capabilities for matching  New machine learning forecasting algorithm: Naïve algorithms (cloud, SAP
external hierarchies (on premise, SAP Demand Signal Management) Integrated Business Planning, Q1/19)
 Improved usability and efficiency of an app to manage product lifecycle (cloud,  Display and report on results of time series analysis (cloud, SAP Integrated
SAP Integrated Business Planning, Q4/18) Business Planning, Q1/19)
 Further simplification in creation of demand sensing forecasting model with  Incorporation of lag-based snapshots as input for forecast accuracy calculation
support for multiple downstream signals (cloud, SAP Integrated Business (cloud, SAP Integrated Business Planning, Q1/19)
Planning, Q4/18)  Use of flexible curves for managing product lifecycle (cloud, SAP Integrated
 New machine learning forecasting algorithm: Gradient boosting (cloud, SAP Business Planning, Q1/19)
Integrated Business Planning, Q4/18)  Integration with SAP Analytics Cloud (cloud, SAP Integrated Business
Planning, Q1/19)
To view all SAP innovations for your industry or line of business, visit Innovation Discovery and select your industry or line of business in the categories pane on the left. SAP S/4HANA and SAP S/4HANA Cloud innovations
1. This is the current state of planning and may be changed by SAP at any time without notice.


Sales, Inventory, and Operations Planning Sales, Inventory, and Operations Planning
 Shelf-life planning with time series-based supply planning (cloud, SAP  S&OP process management improvements including milestones and Gantt
Integrated Business Planning, Q4/18) chart view (cloud, SAP Integrated Business Planning, Q1/19)
 S&OP process management enhancements for recurring processes and  Manage which change actions for a key figure should populate change history
process calendars (cloud, SAP Integrated Business Planning, Q4/18) records (cloud, SAP Integrated Business Planning, Q1/19)
 Location-products specified as nonstocking node for optimizer (cloud, SAP  Continued enhancements to forecast consumption for non-supply-enabled
Integrated Business Planning, Q4/18) planning areas (cloud, SAP Integrated Business Planning, Q1/19)
 Inventory optimization using maximum capacity constraints (such as for  Manage forecast error calculation with support for multiple lag-based
storage tanks) (cloud, SAP Integrated Business Planning, Q4/18) snapshots (cloud, SAP Integrated Business Planning, Q1/19)
 Fractional week lead times and periods between review (PBR) used in  Allow configuration of multistage inventory optimization and inventory
calculation of backlog and propagated demand (cloud, SAP Integrated components planning operators with different planning horizons (cloud, SAP
Business Planning, Q4/18) Integrated Business Planning, Q1/19)
 Support for inventory optimization when time-varying sourcing ratios create  Web-based planning SAP Fiori app for business users, such as sales
cycles (loops) (cloud, SAP Integrated Business Planning, Q4/18) representatives who need to perform basic planning tasks (cloud, SAP
Integrated Business Planning, Q1/19)
 Smooth recommended safety stock to remove spikes and dips in the presence
of binary sourcing (cloud, SAP Integrated Business Planning, Q4/18)


Response and Supply Planning Response and Supply Planning
 Enhancements to order-based planning for cost maintenance, advanced  Enhancements to order-based planning for safety days of supply (SDoS) to
forecast consumption, and multiple modes of transport to account for different support buffer strategy (cloud, SAP Integrated Business Planning, Q1/19)
lead times (cloud, SAP Integrated Business Planning, Q4/18)  Usability and traceability improvements to support location- and material-
 Enhancements to tactical supply planning for heuristic for shelf-life planning, specific attributes for SAP Fiori apps, and additional demand fulfillment key
and location-products specified as nonstocking node for optimizer (cloud, SAP figures (cloud, SAP Integrated Business Planning, Q1/19)
Integrated Business Planning, Q4/18)  Enhancements to tactical supply planning for combined static and dynamic
 Enablement of cloud integration gateway for SAP Ariba Supply Chain periods of supply in lot-sizing procedures, and forecast consumption for non-
Collaboration for Buyers (cloud, SAP Integrated Business Planning, Q4/18) supply-planning areas (cloud, SAP Integrated Business Planning, Q1/19)
 Demand-side forecast collaboration to enable inclusion of forecasts from  Integration source for order-based planning based on planning area (cloud,
external partners in demand planning process (cloud, SAP Integrated SAP Integrated Business Planning, Q1/19)
Business Planning, Q4/18)  Visibility of stock transport request in SAP S/4HANA (cloud, SAP Integrated
 Enable multienterprise collaborative S&OP process (cloud, SAP Integrated Business Planning, Q1/19)
Business Planning, Q4/18)
 Collaboration foundation allowing interenterprise collaboration for external
business partners to visualize and update data through a Web user interface
(cloud, SAP Integrated Business Planning, Q4/18)

Future direction and vision (1/2)
2019 – Digital supply chain direction1 2020 – Digital supply chain vision1
Future direction Enable smart connected business through business network collaboration
 Forecast automation and inclusion of advanced algorithms  Enable smart connected business through business network collaboration and
 Extended inclusion of external data sources, such as weather and social leveraging Internet of Things (IoT) signals
sentiments in demand sensing  Empower responsive service parts planning by sensing demand from
 Extended decision support in S&OP processes, such as contribution margin connected vehicles using IoT signals
and profitability analysis, approval process, and business workflow  Deliver integration with financial planning solutions from SAP with premapped
 Integration of inventory optimization into demand plans for phase-in and connectors and structural data translations
phase-out  Develop capabilities to enable a demand-driven adaptive enterprise
 Outbound integration of safety stock and other inventory targets  Improve customer service by utilizing inventory strategies that dynamically
 Inventory optimization algorithm enhancements to DDMRP for strategic respond to changes in the supply chain network
inventory positioning and outbound integration of DDMRP recommendations  Support the demand-driven model across tactical (S&OP, analytics),
 Usability enhancements to an SAP Fiori app for the supply chain network to operational (SAP Integrated Business Planning), and executional
enable navigation to SAP Fiori apps for analytics and dashboard, running (SAP S/4HANA) horizons
transactions from network charts, and supporting geomaps
 Integration of DDMRP across SAP Integrated Business Planning and
SAP S/4HANA
 Integration with SAP C/4HANA – SAP Sales Cloud and SAP Marketing Cloud
solutions

Future direction Please see previous slide
 Enhancements to order-based planning, such as quota arrangements, periodic
lot sizes, subcontracting and process orders, characteristics-based and shelf-
life planning, and substitution
 Enhanced parallel and delta planning to support supply and allocation planning
 Allocation on components and aggregate levels in response planning
 Deployment planning and optimization to support push deployment, load
consolidation, transportation, and handling capacities
 Operational supply planning, including DDMRP replenishment
 Analysis and visualization enhancements, including using machine learning
techniques and navigation from alerts to SAP Integrated Business Planning
and SAP S/4HANA
 Advanced sell-side collaboration such as vendor-managed inventory (VMI) and
enhancements to supplier collaboration such as supplier-managed inventory
(SMI)
 Usability and enhancements to foundation and platform for SAP Integrated
Business Planning and the add-in for Microsoft Excel

Digital Logistics and Order Fulfillment

 New SAP Fiori apps for physical inventory counting and packing outbound delivery (SAP
S/4HANA, SAP EWM, 1809)
 Enhancement of SAP Fiori apps to process deliveries and maintain product master (SAP
S/4HANA, SAP EWM, 1809)
 Enhanced quality management (QM) integration with SAP EWM (SAP S/4HANA,
SAP EWM, 1809)
 Synchronous stock posting with inventory management (SAP S/4HANA, SAP EWM, 1809)
 SAP EWM integration with SAP Global Batch Traceability (SAP S/4HANA, SAP EWM, 1809)
 Support IUID functionality for aerospace and defense industry (SAP S/4HANA, SAP
EWM, 1809)
 Global batches with deactivation for dedicated plants (SAP S/4HANA, SAP EWM, 1809)
 TCO and TCI improvements such as monitor nodes and methods, change logs for storage
bins and mass creation of warehouse products (SAP S/4HANA, SAP EWM, 1809)
 Warehouse management in SAP S/4HANA Cloud, including inbound, outbound,
warehouse setup, and internal processes (SAP S/4HANA Cloud, Q4/18)


Transportation Management Transportation Management
 Continuous integration into SAP S/4HANA Enterprise Management (SAP S/4HANA,  Improved mixed pallet building (SAP S/4HANA, SAP Transportation Management,
SAP Transportation Management, 1809) 1809 FP02 and SAP Transportation Management 9.6)
 Package unit (SAP S/4HANA, SAP Transportation Management, 1809)
 Enhancements in Gantt chart (SAP S/4HANA, SAP Transportation Management,
1809)
 Currency reform (SAP S/4HANA, SAP Transportation Management, 1809)
 Enhancements to scenario builder (SAP S/4HANA, SAP Transportation Management,
1809)
 Side-by-side use of SAP S/4HANA Supply Chain for transportation management with
SAP S/4HANA Enterprise Management or SAP ERP (SAP S/4HANA, SAP
Transportation Management, 1809)
 Freight-unit-out or freight-order-in interface for external planning (SAP S/4HANA
Cloud, Q4/18)
 SAP S/4HANA Supply Chain for transportation management (cloud edition) covering
order-based transportation consolidation (SAP S/4HANA Cloud, Q4/18)
1. This is the current state of planning and may be changed by SAP at any time without notice. 2. Released as incubation product and not generally available.


Logistics Network Logistics Network
 Object tracking with EPCIS 1.2 support for aggregation, object, and transaction  External API for business process and object tracking (cloud, SAP Global Track and
events (cloud, SAP Global Track and Trace, Q3/18) Trace, Q4/18)
 SAP Yard Logistics enablement as add-on to SAP S/4HANA (on premise,
SAP Yard Logistics for SAP S/4HANA, Q3/18)
 Display and analyze product-allocation availability situation (SAP S/4HANA 1809,

SAP S/4HANA Cloud, Q3/18)
 Alternative-based confirmations: Initial determination of best plant to confirm a
newly created sales order requirement (SAP S/4HANA 1809, SAP S/4HANA Cloud,
Q4/18)
 Automatic triggering of alternative back-order processing run when a confirmation
strategy is violated (SAP S/4HANA 1809, SAP S/4HANA Cloud, Q3/18)

Future direction End-to-end digital logistics with industry capabilities as well as cloud and network
enablement
 Feature parity of SAP S/4HANA and SAP EWM with LE warehouse Cloud and network enablement
management (LE-WM)
 Holistic network enablement of supply chain execution capabilities, air, rail, and
 Automotive extensions and quality management enhancements
parcel
 New and enhanced scenarios in the area of SAP TM integration
 Delivery of a best-in-class global business network for collaboration and track
 Material flow system enhancements and robotic integration capabilities and trace across global sourcing, logistics, and fulfillment, enabling real-time
 Further warehouse optimization capabilities insights into the global value chain from raw material to end of life
 SAP EWM integration to SAP Global Track and Trace  Blockchain for material provenance and freight documents
 Enhanced analytics for SAP Extended Warehouse Management  Enhancements to SAP Extended Warehouse Management and SAP
 Enhancements to warehouse management in SAP S/4HANA Cloud including Transportation Management in SAP S/4HANA Cloud
areas such as SAP Fiori enhancements, production integration, and mobile
device integration.
Transportation Management
 Enhancement of SAP Transportation Management in SAP S/4HANA Cloud
 Migration tools for SAP TM to SAP S/4HANA Supply Chain for transportation
management

Future direction Industry-specific enhancements
Transportation Management  Industry-specific enhancements, such as e-commerce and direct store delivery
 Cloud collaboration with SAP Logistics Business Network for  SAP EWM automotive extensions and integration into mill products industry
tendering/subcontracting, progress reporting, and settlement with dispute
End-to-end digital logistics
management
 SAP TM integration into supply chain planning and order fulfilment
 Leveraging of machine learning capabilities for areas such as driver
assignment  New and enhanced scenarios in the area of SAP TM and SAP EWM integration
 Continuous integration into SAP S/4HANA Enterprise Management  Functional coverage of logistics execution (LE-TRA) processes in SAP TM
 Blockchain-based ocean shipping in international trade  Simulation of transportation freight and capacity
Logistics Network  Integrated dock appointment scheduling
 SAP Yard Logistics  Logistics network integration to yard logistics
– Industry-specific enhancements for terminals and container shipping lines
 Product substitution in alternative-based confirmation (ABC) in aATP
– Further mobile enablement for SAP Yard Logistics
– Appointment-driven yard requests and rule-based yard tasks  Additional IoT scenarios
 SAP Logistics Business Network  Enhanced analytics for supply chain execution and order fulfilment
– Business network for logistics collaboration with initial focus on SAP TM–based
road transportation: Tendering and subcontracting, shipment progress reporting,
invoicing, dispute management, and settlement

Future direction Please see previous slide
Logistics Network
 Track and trace
– Integration with SAP Transportation Management and SAP Logistics Business
Network
– Object tracking with time-dependent hierarchies and support for inferred events
– Material traceability across n-tiered sourcing networks
– Farm-to-consumer scenarios
– Integration with providers of tracking information and network services
– Monitor inbound material flow to production
– Monitor assemble-to-order process
 Order promising
– Calculate a feasible confirmation by considering multiple product-allocation objects
as alternative sources of supply
– Alternative-based confirmation: Enable partial confirmations in multiple plants
– Support reevaluation of alternatives in back-order processing

SAP Transformation Navigator
Supporting your digital transformation
Move my landscape
SAP Future product map
Transformation
Navigator
Evolve my business
Today New capabilities
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SAP ERP–centric SAP S/4HANA–
product map centric product map
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New digital platform
SAP Transformation Navigator provides you with clear guidance to chart the Intelligent Enterprise:
 Based on your currently used products, this free self-service produces an individualized report highlighting business value, detailing integration to SAP S/4HANA
and other cloud products, and explaining transformation services and license information.
 With the new time-slider feature, you can even identify the best point in time to engage in your journey to becoming an intelligent enterprise.
 Discover the tool and your transformation path at https://support.sap.com/stn.

Learn more
SAP customers and partners
► Call your SAP representative, or visit us online

► Explore our solutions for digital supply chain
► Learn about digital business for supply chain
(Select “Digital Business”)
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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.
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SAP Road Map for Digital Supply Chain

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Challenges in supply chain To transform, businesses must

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Explore our digital supply chain solutions on SAP Solution Explorer.

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Recent innovations 2019 – Planned innovations1

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Recent innovations 2019 – Planned innovations1

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Recent innovations 2019 – Planned innovations1

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Recent innovations 2018 – Planned innovations1

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Recent innovations 2018 – Planned innovations1

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Recent innovations 2018 – Planned innovations1

 Display and analyze product-allocation availability situation (SAP S/4HANA 1809,

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Use a greenfield approach

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

► Call your SAP representative, or visit us online

► Join the supply chain community of practice

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Studio SAP | 51398enUS (18/12)

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

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