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Can SAP Simple Logistics increase logistics efficiency?

SAP Simple Logistics uses the data processing ability of S/4HANA to provide simpler, faster and more efficient approaches to logistics and supply chain problems.

Continuing with the vision to make it simple for customers to use SAP systems, SAP's next big offering in the logistics...

and supply chain domain is SAP S/4HANA Simple Logistics. Using the data processing capabilities in S/4HANA, Simple Logistics helps improve efficiency and addresses a number of supply chain issues. These issues range from incomplete inventory information, to unclear visibility of requirements for company resources such as materials or capacities, to challenges faced in improving efficiencies in procurement and sales processing.

Let's look at some of the business benefits of implementing SAP Simple Logistics:

  • Inventory management: Through an internal redesign of database tables, Simple Logistics not only provides comprehensive information on inventory management but also offers information such as data aggregation and intuitive reporting functions that were previously unavailable.
  • Material valuation: Doing away with two traditional valuation methods, inventory management and material ledger, Simple Logistics offers material ledger as the core valuation method to fulfill the business needs of reporting in multiple currencies while also fulfilling legal and accounting reporting requirements.
  • Material requirements planning (MRP): When companies implement SAP advanced planning and optimization (APO), the standard business processes suggest that the materials planner should first run MRP in the SAP ERP system for non-essential materials, while critical materials are planned in the APO component known as production planning and detailed scheduling (PP/DS). Simple Logistics uses the capabilities of PP/DS to suggest realistic and workable production or procurement proposals that materials planners can use immediately.
  • Capacity requirements planning (CRP): In the SAP ERP system, CRP was limited to information about capacity evaluation and capacity leveling, which offered little help to capacity planners who needed to decide how and when to enhance capacity to attend to production bottlenecks. SAP Simple Logistics weaves CRP with PP/DS to provide more granular details, which greatly optimizes production.
  • Sales order fulfillment cockpit:  Apart from comprehensively covering order-to-cash business processes in Simple Logistics, this cockpit also integrates with some of the new tools and functionality available in SAP Simple Finance, such as Revenue Accounting, Financial Supply Chain Management and Foreign Trade.
  • Available-to-promise (ATP): Simple Logistics combines the ATP functionality of SAP ERP and SAP APO to instantly process the information required by a sales team for end-to-end visibility of customers' orders, transportation and delivery schedules.
  • Procurement processes:  Simple Logistics provides complete visibility of various procurement key performance indicators, such as purchase values that run over budget and delivery delays for materials.

Innovations and newer offerings will remain a hallmark of SAP Simple Logistics as SAP rolls out several more products, tools and functionality in the areas of warehousing, production and product lifecycle management. Eventually, SAP Simple Logistics will be available both on-premises and in the cloud.

Next Steps

Managing supply chain risks

Logistics management best practices

Fine tuning procurement processes

This was last published in October 2015

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