S/4HANA

Transform
Wholesale Distribution
with SAP S/4HANA

2016 SAP SE or an SAP affiliate company. All rights reserved. Public 1

AGENDA

SAP S/4HANA: Overview for Wholesale Distribution 3

Order and Contract Management Deep Dive 7

Inventory Management Deep Dive 8

Portfolio of Solutions for Wholesale Distribution from SAP 9

SAP S/4HANA: Value Proposition for Wholesale Distribution 11

Customers Are Achieving Value from SAP S/4HANA 12

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SAP S/4HANA: OVERVIEW FOR WHOLESALE DISTRIBUTION
Transform Your Agencys Digital
Core with SAP S/4HANA
Distributors must reinvent themselves from a warehouse
of products for serving demand to information-centric
companies that utilize new business models to gain
competitive advantage. It will no longer be possible to
survive by simply breaking bulk and having great, legacy
customer relationships. The time to digitally transform
is now.
For years, wholesale distributors have been striving
for operational efficiency, especially in supply chain
management processes. It continues to be vital, but in
todays climate, efficiency needs to be extended to all
business operations. Distributors should closely examine
optimization and simplicity as they relate to delivering
premium, consistent customer service.
Look to change or eliminate fundamental business
processes to dramatically change the way you can do
business. Move from being reactive and slow, to agile,
proactive, and insight driven.
2016 SAP SE or an SAP affiliate company. All rights reserved.
National DCP is an exclusive
cooperative for more than 8,000
Step-change improvements to existing processes based on Dunkin Donuts establishments that
real-time information gives distributors the ability to make recently implemented a number of
the right decisions and drive immediate impact. SAP solutions.
This platform requires an IT architecture that provides This was an unprecedented
both stability and long-term reliability for core enterprise amount of change at one time,
processes, and, at the same time, allows for flexibility in touching every system, every
areas where change is happening on a constant basis. process, and the underlying
The digital core is the foundation for the core processes platform. At the same time, it was
that need to run consistently and flexibly. It provides the fastest way to accelerate our
uninterrupted, real-time transactions and analytics and business progress with the least
the ability to work proactively. amount of risk from a technology
perspective.
SAP S/4HANA was specifically developed to represent Darrell Riekena, CIO, National
the digital core in this bi-modal IT architecture. It provides DCP
wholesale distribution firms with a proven framework to
attain operational excellence, specifically across order
management and inventory management processes.
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SAP S/4HANA: OVERVIEW FOR WHOLESALE DISTRIBUTION

SAP S/4HANA sources of value

The value from SAP S/4HANA comes through simplification of the user experience, architecture, and process.

Simplified user experience: across all devices

SAP S/4HANA empowers front-line users with a user-centric, consumer-grade experience because, for wholesale
distributors, its the front-line employees that add value to customers. SAP is driving simplification and innovation
in how business users work with a role-based, consistent user experience available on any device.

Simplified architecture: no aggregates no redundancies

The simplified data model with SAP S/4HANA provides an advanced digital data architecture that provides, in real
time, a single source of the truth for both transactions and analytics. This enables extensive flexibility to adapt to
changing business models, such as streamlining business processes for more-effective customer service.

Simplified processes: key industry capabilities of SAP S/4HANA

Order and Inventory and

contract management warehouse management
Sales master data management Goods issue

Sales contract management Goods receipt

Subscription contract management Stock transfers

Sales order management and processing Basic warehouse management

Claims, returns, and refund management Basic shipping

Sales monitoring and analytics Inventory turnover and investment

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SAP S/4HANA: OVERVIEW FOR WHOLESALE DISTRIBUTION

EXAMPLE: user experience and process simplification

SAP S/4HANA enables an anywhere, any-device, mobile-first, role-based user experience that simplifies and enhances employee engagement and productivity,
transforming the way sales order management gets done.

SAP S/4HANA for use in sales order fulfillment

Traditional ERP
Sales order issues and exceptions
are typically identified and
resolved by working down multiple
Unconfirmed Credit hold Blocked for Outbound for
transactions and worklists such as quantities delivery delivery monitor
incomplete orders, orders blocked
Internal sales Sales orders resolved,
for delivery or blocked for billing,
representative opens delivered, and billed
and incomplete outbound
many transactions
deliveries a time-consuming
and worklists to
and error-prone process
recognize and solve Incomplete Blocked for Incomplete Change tracking
order issues orders billing outbound

SAP S/4HANA
The sales order fulfillment
cockpit provides the salesperson
a single point of entry to easily
identify order issues and Improved Increased
exceptions. Using the cockpit, User productivity End-to-end order
internal sales representatives can One single point of entry management Issues and exceptions
directly access the respective for internal sales handling through sales
transparency
documents to resolve issues representative order fulfillment cockpit
quickly.

More than smarter and faster . . .

Reimagining work by focusing on issues that slow order processing with quick responses that improve customer satisfaction.
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SAP S/4HANA: OVERVIEW FOR WHOLESALE DISTRIBUTION

EXAMPLE: user experience and process simplification

SAP S/4HANA provides reengineered and simplified real-time inventory management with inventory transparency down to the lowest level of granularity.

SAP S/4HANA for use in supply chain for inventory management

Traditional ERP
Slow inventory-update cycle
leads to outdated information
Limited inventory visibility
Inventory Purchase order Stock Stock history for
increases error rate, supply turnover price history movements posting date
shortages, and stock buffers
Multiple screens and Inventory managers Stock transfers,
transactions needed to analyze search for issues and purchase requisitions,
stock situation bottlenecks that and purchase orders
prevent smooth flow
of materials through Supplier Purchase Transfer posting Material
information documents document list
inventory processes

SAP S/4HANA
An intuitive user experience on any
device providing a single, consolidated
source of truth to analyze inventory
turnover, track material flow, and stock Reduce Increase
transfers and take appropriate actions to Inventory Customer Inventory management
resolve issues this insight has provided with SAP Fiori launchpad
investment satisfaction
through a central application. The One single point of entry Inventory management
redesigned process provides real-time for Inventory Manager apps allow managers
inventory visibility with decreased stock to focus on the most
buffers and improved on-time delivery. important issues and not
get lost in exhausting,
time-consuming analysis.
More than smarter and faster . . .
Reimagining work by focusing on process exceptions and quick responses to keep your processes running smoothly.
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ORDER AND CONTRACT MANAGEMENT DEEP DIVE
Typical challenges
Lack of visibility into the order
management system results in slows
resolution of order fulfillment issues
with risk of delayed delivery
Inefficient strategies or manual
processes to manage orders and
allocations lead to revenue loss and
fulfillment issues
Inability to select alternative sources
intelligently impacts profitability
targets
Inability to promise accurate and reliable
order dates leads to customer
dissatisfaction and revenueloss
Lack of visibility across all inventory
that results in unnecessary stock- out
situations and delivery delays
Complexity of order fulfillment systems
that hampers ability to fulfill orders
from the entirenetwork
Inability to substituteproducts
automatically according to business
rules
*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 and LoB/cloud
capabilities. We recommend working with you to determine the value proposition for your enterprise.
2016 SAP SE or an SAP affiliate company. All rights reserved.
Traditional ERP
Responsible employee has to check multiple
reports to get a holistic view of all process-
related issues
Prior communications and decisions cannot
be tracked in the system
Global available-to- promise (ATP) checks in a
different planningsystem
Low-volumeback- order processing
supported
Basic ATP capabilities for customer
orders and deliveries, including back-
order processing
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SAP S/4HANA enhancements
Prioritized list with key characteristics of
outstanding sales orders for internal sales
Relevant insights, contacts, and collaboration Increased on-time delivery
features for internal sales
Mass product-availability check for sales,
planned, and production orders; advanced
ATP check and performance improvements
for releasing large production orders
Mass product availability check
enabled by the SAP HANA platform
for sales, planned, and production
orders
Advanced ATP check for all items of
an order at once
Back-order processing that provides
business rules to prioritize customers
Benefits*
Increased customer satisfaction
Improved internal sales
productivity with more than double
order throughput due to fewer
clicks and fields to fill to address
issues
Reduction in revenue loss due to
fulfillment issues
Reduction in back-ordered items
cancelled
Increased ability to ship
Increased satisfaction of high-value
customers
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INVENTORY MANAGEMENT DEEP DIVE

Typical challenges Traditional ERP SAP S/4HANA enhancements Benefits*

Less visibility in warehousing and
shippingoperations
Lack of real-time inventory monitoring
results in less-than-optimal on-time
delivery performance
Visibility into overall delivery progress across
system boundaries; overview of shipping
status achieved through a messaging
interfacebetween
warehouse management and transportation
management application
Easy-to-use and intuitive applications for
inventory managers, warehouse clerks, and
shipping specialists to enable complete
visibility into inventory, shortening delivery
times and reducing customer churn
Increased on-time deliveries
Reduced inventory costs
Reduced days in inventory
Increased inventory accuracy

Too much working capital in thesupply
chain, leading to low inventory turns
and, at times, subpar
customer service levels
Difficult to determine optimal inventory
targets across the supply chain, so
companies areleft with having to estimate
thesemanually
Real-time analytics across all dataheld in
SAP S/4HANA, covering orders, invoices,
inventory, and costing information
Reduced supply and inventory
planningcost
Continuous improvement in spend
under e-procurement

Limited inventory visibility, increasing error Inventory analysis is possible using a separate SAP Fiori apps for inventory managers and
rate, and supply shortages analytical system with data integration and warehouse clerks
datalatency issues
Cumbersome, and time-consuming Time-consuming data extraction into Live calculation of key performance indicators
analysis of procurement information business warehouse to perform spend to analyze managed and nonmanaged spend,
analysis contracts, and suppliers
No insight-to-action capabilities Instant insight-to-action capabilities by
navigating to other SAP Fiori apps and
object pages
*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 and LoB/cloud
capabilities. We recommend working with you to determine the value proposition for your enterprise.

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2016 SAP SE or an SAP affiliate company. All rights reserved. Public 8

SAP PORTFOLIO WITH SAP S/4HANA AND SAP LEONARDO

In addition to financial control and engagement management benefits provided by SAP S/4HANA, the digital core also provides native prebuilt integration to allow
firms to leverage the complete portfolio of SAP solutions to comprehensively address their needs demanded by todays digital economy. Processes are designed from
the outset to flow end to end across the cloud based solution extensions, listed in the white bands, and are fully integrated to SAP S/4 HANA Enterprise Management
and are optionally deployed to address business needs. The solution capabilities in the dark blue band, the digital core, are delivered as part of SAP S/4HANA
Enterprise Management. The lighter blue band, also in the digital core, are part of SAP S/4HANA Enterprise Management, but added on as needed.

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2016 SAP SE or an SAP affiliate company. All rights reserved. Public 9

PORTFOLIO OF SOLUTIONS FOR WHOLESALE DISTRIBUTION FROM SAP

An end-to-end solution for wholesale distribution firms

Wholesale distribution firms need to manage end-to-end sales-order management, from generating and managing the demands of their customers, through efficient
and effective order processing to accurate billing. The capabilities delivered with SAP S/4HANA and the prebuilt, native integration with line-of-business (LoB)
solutions help ensure processes run smoothly and efficiently across the end-to-end, total-engagement lifecycle, allowing firms to balance supply and demand and
drive sustainable revenue growth and maintain margins. The process below is illustrative of the end-to-end process of quoting through billing.

Sales order management Supply

Negotiate vendor
Customer Pipeline Manage rebates
insight management Opportunity integrated with rebates
sales order management in Rebate record integrated into
SAP S/4HANA SAP S/4HANA pricing process
Manage accounts Track real-time sales
and opportunities performance
and gain a 360- Print and Billing and
Quote Quote Sales order Logistics
degree customer material revenue
creation approval processing execution
view sourcing recognition

Provide Create quote Analyze Assign the Create Monitor Monitor

multichannel leveraging margins, then right pricing, sales fulfillment of fulfillment of Sales order
ordering customer approve rebates, and orders orders and orders and Replenishment demand input
pricing quotations discounts based on efficiency of efficiency of process for MRP and
history using based on delivery warehouse warehouse advanced
automated vendor schedule and and planning
workflow negotiations transportation transportation

Enterprise Management
Business development
Omnichannel commerce Digital core

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SAP S/4HANA: VALUE PROPOSITION FOR WHOLESALE DISTRIBUTION

SAP S/4HANA provides government agencies a proven framework to adopt industry best practices while attaining operational excellence.

Strategy enablement Business benefits*

Accelerate creation of new business models 10%30% increase in on-time delivery
Enter new markets and industries 25%30% reduction in inventory levels
Accelerate M&A synergy 10%20% increase in customer satisfaction
Run Live (SAP Digital Boardroom) 10%12% reduction in days of inventory
Reorganize on the fly 10%15% reduction in revenue loss due to stock-outs
Achieve greater speed and agility 12% reduction in total logistics cost
Run Simple (master complexity) 3%5% reduction in supply chain planning cost
Manage risk and ensure compliance 50% reduction in order fulfillment issue resolution
Strategy Business
enablement benefits

Empowered employees Empowered IT benefits IT benefits and TCO

employees and TCO
Establish finance as a partner for Reduced data footprint
strategic decisions instead of just Merging of OLAP and OLTP
for collecting numbers Elimination of many desktop clients
Increase productivity and faster Lower testing costs
user adoption through tailored UIs Simplified landscape
enabled by the SAP Fiori user experience Native integration

*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 + LoB/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.

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2016 SAP SE or an SAP affiliate company. All rights reserved. Public 11

CUSTOMERS ARE ACHIEVING VALUE FROM SAP S/4HANA

Inabata & Co. Ltd. ScanSource

To lay a foundations for growth, the group introduced SAP solutions that will Scan Source wrestled with a software landscape that had as many as 10
enable the company to better visualize its global business information. legacy systems. The company replaced these systems with a single SAP ERP
Central Component, then implemented SAP Business Warehouse powered by
SAP HANA.

Overseas subsidiaries account for over 50% of our consolidated results, so We were very impressed with the quality of people SAP brought to us. With
stability is key. By having a single ERP solution in place of disparate, separately such a powerful team, we were able to move quickly.
implemented and managed core systems, we are aiming to standardize our Blake Zemp, CIO, ScanSource Inc.
operations while also allowing our subsidiaries to leverage their respective
strengths. We believe SAP HANA will be a critical tool for realizing this.
Toshiyuki Suganuma, Director and Managing Executive Officer, Inabata & Co. Ltd.

Company Company
Inabata & Co. Ltd. ScanSource Inc.

Industry Industry
Wholesale distribution trading Wholesale distribution
company
SAP solutions
SAP solutions SAP ERP Central Component
SAP Business Suite powered by SAP Business Warehouse powered
SAP HANA by SAP HANA
SAP S/4HANA Enterprise Cloud
Customer Web site
Customer Web site www.scansource.com
www.inabata.co.jp/english
Click here for the source reference
Click here for the source reference

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CUSTOMERS ARE ACHIEVING VALUE FROM SAP S/4HANA

Indeks Bilgisayar
Take a look at how this major Turkish wholesale distributor simplified its data
model and complex subsidiary structure, cut infrastructure costs, and increased
business agility by bringing in SAP S/4HANA. Learn how it achieved higher
productivity and greater user satisfaction with the softwares intuitive interfaces.

For years, we used our own in-house solution to process transactions. But we
needed greater agility and faster reactions. SAP S/4HANA performs excellently
in our daily operations and has significantly boosted productivity and efficiency.
Tayfun Yi it, CIO, Indeks Bilgisayar Sistemleri Muhendislik Sanayi ve Ticaret A.S.

Company
Indeks Bilgisayar Sistemleri
Muhendislik Sanayi ve Ticaret A.S.

Industry
Wholesale distribution

SAP solutions
SAP S/4HANA Enterprise
Management

Customer Web site

www.index.com.tr

Click here for the source reference

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 Studio SAP | 49162enUS (17/09)

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