Implementing a New Supply Chain Planning Solution Within SAP S/4 HANA Transformation Program

According to the latest news from SAP, support for ERP Central Component (ECC) and Advanced Planner and Optimization (APO) will end in 2025. Extended support might still be possible but most probably at significant additional costs. Many companies have at least started to analyze the different impacts of an ECC to S/4 HANA migration to define a fitting approach, program and roadmap.

 

Based on lessons learnt from the past Tenthpin recommends doing that holistically by looking at the entire IT-system landscape considering solutions for Supply Chain Management (SCM), Customer Relationship Management (CRM), Business Intelligence (BI), Manufacturing Execution System (MES), Laboratory Information Management System (LIMS) and others.

For Life Sciences companies, this coincides with significant changes in the Industry itself driven by new Technologies (Digital, 3D Printing, Augmented and Virtual Reality, Body Sensors and Deep Learning / Artificial Intelligence) and Big Data. Consequences are lower market entry barriers and therefore new competitors. Innovation and the ability to react fast will be key success factors for the future. Consequently, in the future, processes and their realization in IT-systems have to be much more standardized. The key message is: Transformation through Simplification.

Looking at Supply Chain Planning the importance has significantly increased over the last decades and companies see it as a strategic enabler today. Key topics for companies are proactive SCM through central Supply Chain Visibility in real-time, extended collaboration with business partners like third-party manufacturers / suppliers, 3PLs, carriers or wholesalers, Demand Management including Predictive Analytics up to AI and seamless integration of logistics and financial planning.

Most of the existing IT-solutions for Supply Chain Planning cannot properly cover these future requirements. Therefore, Tenthpin recommends replacing them with one state-of-the-art planning solution to be implemented globally and seamlessly connected with the other systems. Considering the high complexity behind this must be embedded into a holistic future supply chain strategy to remain successful in the market. Since all these topics are still relatively new, no one knows “the Holy Grail” yet.

Therefore, Tenthpin is convinced of a smart and iterative approach to allow companies to go through a learning process stepwise. Transformation must take place in all areas of a company (Organization, Processes and IT-solutions) to be successful. This big challenge can only be mastered via an evolutionary process.

How can Tenthpin Management Consultants help you?

Tenthpin Management Consultants is the expert for entire Supply Chain and Supply Chain Planning in Life Science. With our broad Industry experience and various projects in that area we develop and realize best-in-class strategies for companies in that area:

  • We understand Supply Chain and Supply Chain Planning holistically
  • We understand the future Life Science Trends and their impacts on Supply Chain Planning
  • We know how to setup Supply Chain Planning Projects and how to embed them into overall SAP Transformation Strategies and Programs successfully
  • Our Consultants have between 10 and 25 years of Consulting and SAP experience
  • Our Consultants are all Life Sciences experts
  • We deliver Supply Chain Planning Projects successfully on time and under budget

Contact our industry experts at Tenthpin Management Consultants if you would like to learn more.

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About the Author

Martin Ebinger

Partner – Germany

Martin is our expert in Supply Chain Planning with  over 15+ years of experience