How SAP S/4HANA is transforming Advanced Order Promising/ATP?

SAP S/4HANA is one of the most deployed post-modern ERPs. Whilst the ERP of the 20th century concentrated on the digitization of business processes, the post-modern ERP focuses on the digital transformation of the business process. In this blog, I will talk about how SAP S/4HANA transforms Advanced Order Promising/ATP.

What functionality does SAP S/4HANA provide for Advanced Order Promising/ATP?

  • Provide order commitment dates and quantities during online order creation or change and in batch mode
  • Make promises on orders, maintaining visibility of real-time inventory to help ensure fulfillment
  • Improve customer satisfaction with real-time inventory information for advanced available-to-promise (ATP) order commitment dates with SAP S/4HANA.
  • Commit to orders quickly and accurately by automatically checking for material availability and product allocations
  • Boost delivery performance with embedded logic for automatically matching supply of ordered items with demand

What are the benefits of using S/4HANA to manage commodity procurement?

  •  Improve customer satisfaction by using embedded logic to automatically match supply with demand
  • Improve on-time delivery performance by replenishing inventories frequently based on the latest information about stock levels and demand forecasts
  • Reduce inventory carrying costby using real-time information on inventory availability and projected availability to provide accurate order commitment dates
  • Reduce days in inventory by leveraging real-time information regarding inventory availability to shorten replenishment cycles and to respond to demand on a frequent basis

What are the functional changes in the commodity procurement functionality in SAP S/4HANA compared to SAP ECC?

  • No impact on business processes

What are the innovations which S/4HANA has brought in for commodity procurement functionality?

  • Removal of database table VBBS, which contains preaggregated sales requirements
  • Daily aggregation of requested (OMENG) and confirmed (VMENG) quantities no longer needed, thanks to the new ATP functionality running in SAP HANA, making this table obsolete
  • Redirection of the old SAP ERP coding for ATP check to use database table VBBE
  • SAP Fiori–based user experience across all process steps
  • Roles with new, dedicated SAP Fiori apps:
    • Internal Sales Representative
    • Order Fulfillment Manager
    • Order Fulfillment Specialist

Recently, Kaar Tech helped a high tech manufacturer to migrate from SAP ECC to SAP S/4HANA. If you would like to understand why they moved from SAP ECC to SAP S/4HANA, then I suggest reading this whitepaper. It explains the business benefits and technical benefits accrued as a result of the SAP S/4HANA migration.


Alphonse Raj David

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