Exploring SCM Base Package

February 17, 2026

1
Agenda

01 Overview of SAP SCM Base Package

Highlights of SAP IPD and AVC within SCM Base

02 Package

SAP Order Promising features within SCM Base

03 Package

04 Q&A

2
SAP’s public cloud ERP | Continued Market Momentum
New Customers by Closing Quarter through Q4 2025

+25% Q4 YoY Customer Growth

+27% 2024 to 2025 YoY Annual Customer Growth

Overall market
size grew

14%

Source: S/4HANA public cloud – Pipeline Report (Q1_2022 to Q4_2025), HPI Customer Adoption for 2021, LPR243
Public cloud ERP | Industry Deal Share 61%
of Cloud ERP Deals come
from “SCM” Industries
Share of 2025 public cloud ERP Deals

TOP SCM CLOUD ERP Industries

Consumer Industries 26% Discrete 16%

• Consumer Products • Industrial
• Wholesale Distribution Manufacturing
• Retail • Automotive

• Life Sciences • High Tech

Service Industries 35%
• Healthcare • Aerospace &
• Professional Services
Defense
• Banking
• Travel & Transportation
• Media 2026 Pipeline by Customer Segment
• Insurance
• Telecommunications
Partner-
Energy & Natural Resources 19% Driven
• Sports & Entertainment • Mill Products & Mining 16%
• Chemicals
Enterprise
6%
• Utilities
• Oil & Gas

Public Serv 3%
• Public Sector Corporate
• Educ. & Research 78%

Source: Global Cloud Pipeline Data Analyzer (v2.0), Customer Per Wave Stage Report
 Start Lean and Expand | A Broad Scope Packaged for Modular Consumption
End-to-end business capabilities delivered with public cloud ERP

For Example…
Simple User Experience
Joule | An AI solution that truly understands your business
1 • Start with the most urgent scope
like core finance-led ERP
capabilities.

2 • Extend with financial planning,

deeper manufacturing and supply Customer Spend Financial Supply Chain Human Capital Business
Experience Management Management Management Management Technology
chain processes, and lead and
opportunity management.
2
3 • Or, if you run a service-centric Financial Planning + Steering
business and don’t need
manufacturing, adopt Customer
1 Lead to Cash Application
Project Management or Field Hire
Service Management capabilities
extensions
to Retire
either at the start or over time. Source to Pay
4 • Expand to address HR 4
requirements with integrated hire- Record to Report | Financial Management Payroll
to-retire and payroll processes.
2 Manufacturing | Supply Chain | Asset Management
Integrations

3 Customer Projects | Service Management

AI-enabled
 SAP Business Suite Packages | SAP Cloud ERP user type SKUs
Nested Model Higher level licenses include lower level license capabilities

❹ SCM Premium
❷ FIN Premium
Added Commercial
Added Commercial ❶ FIN Base ❽ Combo base ❸ SCM Base entitlements
entitlements
include:
include: SAP Cloud ERP Accounting capabilities SAP Cloud ERP Supply Chain
including: capabilities:
Combination of FIN Base and SCM base • Environmental
• Project and • General Ledger Accounting Manufacturing Engineering
•
capabilities Health and Safety
Resource • Asset Accounting, Inventory Accounting Production Planning and Scheduling
•
Added Commercial entitlements include: • Product Compliance
Management • Project Accounting • Manufacturing Operations Management
• Digital Access • Sustainability
• Subscription Billing • Sales and Service Accounting • Manufacturing Performance Management
• SAP Integrated Product Development Solutions
• Ariba Catalogs and • Overhead Cost Accounting • Quality Management
• PLM Integration
Fieldglass Supplier • Production Cost Accounting • Transportation Management
Portal • Cash Management • Warehouse Management
• SAP Business • Receivables Management • Advanced Order Promising
Network • Contract Accounting & Invoicing​ ❺ Operational • Logistics Material Identification
• SAP Enterprise • Contract and lease management • Product / Service Lifecycle Mgt
Sales/Service Order processing and invoicing
Service Management • Advanced Payment Management • Product / Service Production Mgt
Purchase Order and Supplier Invoice processing,
• SAP Sales Cloud • Product / Service Design Mgt
Added Commercial Product Availability Check, Project Management (excl PRM),
• SAP Ariba Central • Asset Lifecycle Delivery
entitlements include: Inventory Management and Physical Inventory
Invoice Management • Asset Review and Risk Mgt
• Concur Expense • SAP Document and Reporting • Asset Information Mgt
Professional Compliance, cloud edition​ • Asset Management Strategy and
• Multibank Connectivity ❻ Self-Service Planning
• Market Rates Management
Display-only access, Approval of workflows, Self-service
• Taulia (Receivables and Added Commercial entitlements
Requisitioning; Time Sheet Confirmation
Virtual Cards) Confirmation of executed tasks or worked hours, Inventory include:
• Digital Access Postings, System Configuration activities, System Administrative • Digital Access
• SAP Build Developer User tasks • SAP Integrated Product
Added commercial entitlements include: SAP Build Base User Development

❼ Developer User SAP Cloud ERP ABAP Environment Added commercial entitlements include: SAP Build Developer User • SAP Build Run Time

Capabilities are described in the Services User Description ("SUD") for each user type Entitlements are listed as child SKUs in the order form and have their own
supplement, service description or chapter in the Business Suite SUD
INTERNAL – SAP and Partners Only 6
Cloud ERP Capabilities for Supply Chain Leaders
Mapped to Business Suite Packages
SAP Business AI
SAP Business Data Cloud

SAP Applications

Idea to Market Source to Pay Plan to Fulfill Lead to Cash Acquire to Decommission

SAP Project and SAP Business Network Production Inventory SAP Enterprise Reactive
Resource Management Supplier Portal Planning Management Service Management Maintenance
Project Central Invoice Production Available SAP Sales Proactive
Control Management Operations to Promise Cloud Maintenance
Advanced Variant Invoice Manufacturing Advanced Available SAP Subscription Improvement
Configuration Management Options to Promise Billing Maintenance
Production Supplier Quality Warehouse Order and Contract Operational
Engineering Management Management Management Management Maintenance
SAP Integrated Sourcing and EH&S Transportation Solution Overhead
Product Development Contract Management Environment Management Management Business Maintenance
PLM System Operational EH&S Logistics Cross Service Operations Resource Scheduling
Integration Procurement Workplace Safety Topics and Processes
Product SAP Sustainability Service SAP Asset Performance
Compliance Data Exchange Master Data Management
SAP Responsible Design SAP Sustainability SAP Mobile Execution (Maintenance Assistant)
and Production Footprint Management and Dynamic Forms
SAP Business Network SAP Integrated SAP Field
Commerce Automation Business Planning Service Management

SAP Digital
Manufacturing

SAP Finance Premium SAP Finance and Supply Chain operations SAP Supply Chain Base SAP Supply Chain Premium Add-On

INTERNAL – SAP and Partners Only 7

The impact of a connected, empowered supply chain team

30% 30% 50% 52%

improvement in improvement in decrease in supply reduction in
manufacturing material-demand chain costs transportation-
output for global forecasting accuracy for Malaysian related carbon
healthcare solutions for FUWO, a manufacturer semiconductor producer emissions.
company, of electronic vaporizers Ferrotec. for global automotive
LetsGetChecked. Read the case study Read the case study supplier, Martur
Read the case study Fompak International.
Read the case study
SCM Base Package –
Overview of SAP IPD and
SAP AVC
Sean Laughlin
Global Product Marketing Manager, Design
February 17, 2026

9
Agenda

01 Why SCM Base for Product Centric Companies

02 Highlights of SAP Integrated Product Development

03 Highlights of SAP Advanced Variant Configuration

04 Additional Information

10
Supply Chain Management
Design

WHY SCM Base for

Product Centric Companies

11
Product Data Management / Product Lifecycle Management
From disconnected to integrated product design

discrete
INDUSTRIES
process

12
Industry Differences & Challenges

Discrete Manufacturing Industries Process Industries

Assembly of discrete components into assemblies Mixing ingredients based on recipes

⌖ Engineering focus ⌖ Specification management

⌖ Assembly and Configuration ⌖ Formulation and recipe development
⌖ Bill of Material (BOM) ⌖ Compliance, quality and consistency
⌖ Machining and assembly manufacturing ⌖ Continuous production
13
SAP solutions for Product Lifecycle Management
Strategy driven by customer choice
Authoring tools
(MCAD and ECAD)

External PLM systems

Cloud capabilities for Product Data

Management
Direct CAD integration 3rd party PLM integration
Private Cloud Public Cloud on SAP BTP Private and Public Cloud

1 2 3
SAP Business Suite

Private and Public Cloud

⌖ SAP provides a platform for innovation ⌖ Customers can innovate and design ⌖ When product design data is seamlessly
for customers in both discrete and sustainable products in a collaborative available for use by the supply chain
process industries that is centered environment that is natively integrated processes, organizational efficiency
around customer choice. with SAP Business Suite serving as the increases and time to market and value is
system of execution for the enterprise. accelerated
14
Supply Chain Management
Design

WHAT is Integrated
Product Development

15
 SOLUTION CAPABILITY HIGHLIGHTS
What is SAP Integrated Product Development? FORMULATED PRODUCTS DEVELOPMENT
▪ Specification Management
▪ Recipe Formulation
▪ Recipe Handover

DISCRETE PRODUCT DATA MANAGEMENT

▪ Product Data Integration
▪ Product Structure Management
▪ Product Visualization
▪ Product Handover

CROSS-INDUSTRY CAPABILITIES
▪ Collaboration
▪ Document Management – Q4 2025
▪ Change Management – H1 2026

SAP Integrated Product Development

orchestrates your product development processes for INTEGRATION HIGHLIGHTS
formulated and discrete products ▪ SAP Cloud ERP (public and private)
provides the product master data backbone for your digital ▪ SAP Ariba
transformation ▪ SAP Enterprise Portfolio & Project Management
is built with cloud-native technologies for a digital supply chain ▪ SAP Digital Manufacturing
▪ 3rd Party CAD Software
16
 Discrete Industry

Overview of SAP Integrated Product Development for Discrete Industries

Requirements Model-based Systems Detailed Engineering & CAD

Management Engineering Integration

Change
Management
AI-enabled
Product Lifecycle Collaboration
Management

Handover-to- Ariba, Procurement & Sustainability &

Manufacturing/Operations (S/4HANA) Sourcing Integration Compliance Integration
including Visualizations

17
 Process Industry

Overview of SAP Integrated Product Development for Process Industries

Requirements Specification Recipe

Management Management Formulation

Change
Management
AI-enabled
Product Lifecycle Collaboration
Management

Handover-to-Manufacturing Ariba, Procurement & Sustainability &

(S/4HANA) including Visualizations Sourcing Integration Compliance Integration

18
SAP Integrated Product Development – How it works

Customer receives initial Each capability consumes a Entitlement resets to

entitlement of capacity certain amount of capacity licensed amount of
units * units capacity units each month

Customers may switch Customer may add Provides the flexibility to

among capabilities during additional capacity units consume new capabilities
the subscription period based upon actual as SAP introduces new
consumption functionality

* Minimum entitlement from the SCM Base package

is 450 cus (30 cus x 15 user minimum).
19
SAP Integrated Product Development – Capabilities

Add table with capabilities and the “cost”.

20
Integrated Product Development – Generative AI Scenarios

Integrated Product Development Specification Management

General (GA) GA2512

Conversational Search (SAP Help) & Navigation via Joule

AI Assisted Specifications search

Collaboration Visualization Recipe Formulation

GA2509 GA2509 (POC)

AI-assisted document summarization Gen-AI assisted Recipe Search and formulation

AI Assisted 2D Hotspot Creation

21
Supply Chain Management
Design

WHAT is Advanced
Variant Configuration

22
Make it yours. Individualize... like never before.

Public 23
 Product Configuration Lifecycle – Challenges to meet customer needs

Product Modeler Product Manager

▪ Wide product range with growing product ▪ What are our most profitable products and services?
complexities (services, electronics, software) = ▪ Which options render highest revenues and improve
complex configuration models customer satisfaction?
▪ Coordination of needs across entire supply chain ▪ Which options create quality issues and cost to much?
(engineering, procurement, production, sales,
▪ How successful are we with special customer
service)
requirements? Customer satisfaction, pricing,
▪ Consistent configuration regardless of channel / profitability, planned delivery dates?
point of access.
▪ Rapid response to quickly fix inconsistencies on
Customer
sales and production orders

▪ Fulfillment customer’s individual needs/requirements at a

▪ Manage customer service and provide full reasonable price with appropriate delivery time.
transparency
▪ Delivering competent and informed service with automated
▪ Increase productivity and speed through support and intelligent guidance from sales tools.
Supply Chain automation
▪ Creation of sales orders fast and without errors and
Leaders ▪ Provide agility and resiliency across all supply Sales inconsistencies.
chain functions
Public 24
SAP S/4HANA for Advanced Variant Configuration

Provides an efficient set of enhanced capabilities to

define, develop, sell, manufacture, deliver, and maintain individualized products

Engineering Sales Manufacturing Service Asset Management

Key Highlights:
• Integration to Sales Front-End like Commerce and CPQ
• Simplified processes, e.g. EtO handling

Sales New User • Highly improved user experience through Fiori UI

Configurator Experience
• State-of-the-art algorithms with an award-winning constraint
solver
Simplified Product
Processes Modelling • Easier modelling and less customer enhancements

New
• Real-time embedded configuration data analytics
Configuration Embedded
Engine Analytics

Public 25
SAP S/4HANA for Advanced Variant Configuration – Highlights
New Configuration Engine Process Integration
• State-of-the-art algorithms designed together with • New variant configurator, seamlessly integrated into
Fraunhofer Institute Kaiserslautern, Germany MtS, MtO and EtO processes, supporting single and
multi-level configuration models
• Use of Gecode, an award-winning constraint solver
• Highly improved user experience through Fiori UI,
• Performance optimized for SAP HANA integrated e.g. with Sales, advanced ATP, Production,
• New capabilities, for example, negative variant tables, Procurement and Product Master
more precise handling of decimals, new syntax • Consistent process between front-end (CPQ,
Commerce) and backend (S/4HANA on-premise),
based on one configuration model

Increase quality and consistency for order configuration to accelerate ordering Optimal support of complex products throughout the entire digital configuration
process and improve customer satisfaction lifecycle

Simulation Environment Embedded Analytics

• High usability supported by efficient process- • Real-time embedded analytics enables analysis
oriented screen arrangement of configuration/classification data combined with
configured business objects
• All needed information can be accessed easily via
new trace and inspector • Predefined analytical sales scenario

• Integration of BOMs and routing completes the • Flexible report allows users to select which
view on the product model characteristics to be included

Reduce time-to-market for new products through highly efficient simulation of new Increased business insights and transparency, enabling product and process
product variants and options optimization

Public 26
Key takeaways

SAP S/4HANA for advanced variant configuration

Leverages the latest Provides an efficient set Best supports your entire
technologies to accelerate of enhanced capabilities end-to-end business
configurable product to define, develop, supply, process for
modeling and change sell and manufacture individualized products
process to be ahead for individualized products in an integrated fashion
your customers

Public 27
Supply Chain Management
Design

WHERE to go for
Additional Information

28
Partner Portal
Explore SAP Integrated Product
Want more product
Development
updates? Check out our
latest blog posts:

ERP, including
Supply Chain

Product Lifecycle
Management

Discover the latest updates and information on the capabilities

within SAP Integrated Product Development
Want to learn
more?
Check out our SAP
website

Upcoming
features?
Check out the SAP
Road Map Explorer

Are you on
LinkedIn?
Join our active
community!

30
 Sean Laughlin
Global Product Marketing
Manager, Design

Thank you.

© 2026 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on [Link]/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material.

31
Order Promising
for a Risk-Resilient and Sustainable Supply Chain
in SAP Cloud ERP

Sujeet Acharya
Supply Chain Product Marketing Management (PMM)

INTERNAL – SAP and Partners Only

Agenda

1 Business Challenges in Order Promising

2 Overview of Order Promising in SAP Cloud ERP

3 Value Proposition

4 Resources

33
Agenda

1 Business Challenges in Order Promising

2 Overview of Order Promising in SAP Cloud ERP

3 Value Proposition

4 Resources

34
 Order confirmation in real time.

Promise what you can keep.

Challenging Keep what you promise.

market Order promising is NOT only

dynamics in about product availability.
Order Promising
Confirm based on business priority and
profitability, during supply shortages.

Fulfillment from across global

network and product lines

35
Agenda

1 Business Challenges in Order Promising

2 Overview of Order Promising in SAP Cloud ERP

3 Value Proposition

4 Resources

36
 Supply Chain Business Profitability
Constraints Priorities

Available-To-Promise provides accurate and

reliable order promise dates to customer orders,
considering the relevant supplies across the
network and critical supply chain constraints, in
Demand

Sales Orders
real-time, while protecting companies’ business
Order
priorities and profitability goals.
Confirmations

STOs

Supply

Warehouse Stock in Transit Production

Stock Orders

37
38
 Operational User
SAP Cloud ERP Order Promising (Public Cloud) Functional Overview
Next generation capabilities for companies’ order promising needs SCM Base

ATP Analytics
AI Driven ATP

Product Availability Check

Back Order Processing Interactive ATP

ATP Explanation
Availability Overview

Business Process
Scheduling

Product Allocation Supply Protection Alternative-Based Confirmation

39
 Operational User

Product Availability Check (PAC)

Confirm orders in real time

What the Business Needs:

Sales Orders STOs
➢ Provide committed quantities and delivery dates to customer sales
orders in real time. Demand

➢ Avoid over-confirmations and double-booking.

➢ Understand the reasons for partial or delayed confirmations.

Order
➢ Know how much supplies are available for sales and distribution.
Confirmations

Supply

Product Availability Check provides accurate order

confirmation dates to demand elements like customer orders Warehouse Stock in Production
or stock transport orders, considering current and future supply Stock Transit Orders

elements in real time.

40
 Operational User

Product Availability Check (PAC)

Confirm orders in real time

Real time order confirmation considering present and future

supplies.

‘Review Availability Check Results’ displays availability

situation of all line items of the sales order with delays and partial
confirmation, if any.

Modify delivery schedules according to customer’s wish during

order creation/change.

Checks for storage locations, batches and segmentation

during availability check.

Consideration of delivery groups, quantity distribution and

replenishment lead time.

API provide product availability info to external system.

41
 Operational User

ATP Analytics
Overview of ATP Situation
Display Product Availability, to help you obtain
product availability information relevant to
Available-to-Promise.
▪ The Display Product Availability app checks
availability based on the Product Availability
Check function, which provides information
about the date and quantity for which a
requirement (for example, a sales order item)
can be fulfilled.
▪ Check the available quantities of products by
plant or storage location.
▪ Filter information according to different
availability contexts (i.e, either sales or
delivery), as well as special stock types (e.g,
sales document, customer consignment, or no
special stock)

42
 Operational User

Business Process Scheduling (BPS)

Determine accurate delivery dates

Backward Scheduling

What the Business Needs:

➢ Consider transport time, loading time, pick pack time, transportation Transportation
Planning date
Material
availability date
Loading date
Goods
Issue date
Requested
delivery date

planning time to commit accurate delivery date after the stock is Transport
available at the shipping location.
Load

Label Pick

➢ Flexibility to add custom scheduling activities to the logistical Transport Planning

process.

Rescheduling
Time
Transport planning

Load

➢ Decoupling of business documents from a concrete scheduling Label Pick

Transport
application.

Transportation Material Goods Confirmed

planning date availability date Loading date Issue date delivery date

Forward Scheduling
Business Process Scheduling provides the framework to
calculate the date on which the material should be available in
the delivery plant to meet the final delivery date request of the
customer.

43
 Operational User

Business Process Scheduling (BPS)

Determine accurate delivery dates
Commit to customers exactly when the orders can be
delivered, considering the durations for picking and
packing, loading and transportation, as well as the lead time
for transportation planning.

Determine the earliest confirmed date on which the

requirement can be fulfilled, by backward and forward
scheduling.

Increase scheduling precision by calculating all

logistically relevant date and time for involved activities and
entities.

Enable a fully flexible delegation of the determination of

durations and dates to multiple scheduling providers.

Flexibly consider conditional custom activities in

logistics process while providing order confirmation.

44
 SCM Base

Backorder Processing (BOP)

Offline mass confirmation of orders
Win Fully Confirm as Requested

What the Business Needs:

➢ Confirm orders in a batch job according to order priorities and NOT Retain and Gain, if possible
necessarily based on the usual First-Come-First-Served principle. Gain No deterioration

Quantities
➢ Segment stocks that needs to be confirmed according to business rules
ahead of others. Improve
Retain and Gain, if possible
Might lose

➢ Retain committed confirmation as much as possible.

Re-confirmation once again
Redistribute Might gain, might lose

ATP
Lose, if required
Fill Will not gain

Backorder Processing provides the framework to confirm

orders en masse, grouped by requirement segments and sorted
Delete All
by business priorities, considering all ATP constraints. Lose Confirmations

45
 SCM Base

Backorder Processing (BOP)

Offline mass confirmation of orders

Mass confirmation of orders in batch mode using backorder

processing framework.

Segment requirements based on priorities and business

rules.

Easy to configure requirement segments and BOP run

variants. Customizable filter and sorter for requirement
segments.

Simulation capabilities for Backorder Processing Run.

Automated exception handling with re-run of backorder

processing for failed materials.

Intuitive result monitor to understand the confirmation

situation after BOP run, with highlighted confirmation issues.
Navigation to orders to take corrective action.

Consideration of all ATP methods during Backorder

Processing.

46
 SCM Base

AI Driven ATP
Automated and Guided Setup for Backorder Processing

47
 SCM Base

Product Allocation (PAL)

Ensure fair share allocation during supply shortage
Sales Orders STOs

What the Business Needs:

➢ Prevent few customers from buying the entire available quantity,
leaving other customers high and dry. Sales Sales PAL
Constraints

➢ Allocate quantities to customers, regions, sales orgs, etc in fair

quantity according to optimal demand and supply plan.
Product
Availability Availability
➢ Confirm orders against future production capacity. Constraints Check

➢ Consider transportation and other delivery constraints while

confirming orders.
Capacity
Capacity PAL
Constraints

Product Allocation provides the mechanism to restrict

confirmation quantities for certain orders with specific
characteristics.

Order
48
Confirmations
 SCM Base

Product Allocation (PAL)

Ensure fair share allocation during supply shortage
Simple and flexible set-up to model complex product
allocation scenarios including hierarchical / sequential
allocation checks (logical ‘OR’) and simultaneous multiple
allocation checks (logical ‘AND’).

Use of standard and custom characteristics, including

Variant Configuration characteristics to define Product
Allocations.

Configure sales and capacity allocation simultaneously

to impose sales and logistical constraints during order
promising.

Easy and quick maintenance, including excel download

and upload for mass maintenance.

APIs for importing / exporting allocation quantities

from supply chain planning solutions, like IBP Demand or
Response and Supply.

Possibility of custom enhancements to influence product

allocation check.

49
 SCM Base
Sales Order for
Germany Priority 2 of
Supply Protection (SUP) Quantity 1000
Protect customer interests during stockouts Germany 4500

France 3500 Priority 1

Spain 3000
1500
Priority 1
1000 Priority 2
What the Business Needs: 500
Priority 1
Priority 2 1500
➢ Provide minimum guaranteed quantity of supplies to key customers 1000 Priority 2
Priority 3
or business priorities (e.g. promotional events). 2500
500
Priority 3 Priority 3
1500 1000
➢ Orders from higher priority customers or channels should have
better fulfillment than lower priority orders.
3000
➢ Secure safety stocks for different business units in given time period. Available for the Sales Order
for Germany Priority 2
Germany
Priority 1
1500

Spain
3000
Supply Protection provides the mechanism to reserve
quantities for certain order characteristics during supply
shortages.
France
Total Supplies = 11000
3500

50
 SCM Base

Supply Protection (SUP)

Protect customer interests during stockouts
Protect quantities of a material in a specific plant against
other competing demands.

Independent and flexible set-up to model complex

Supply Protection scenarios, based on standard and
custom characteristics.

Core (horizontal) protection where complete groups are

protected against each other.

Prioritized (vertical) protection where the protection is

prioritized, and every group is only protected against the
demand of a lower priority.

Integral part of Product Availability Check (PAC). Detailed

explanations in Review Availability Check Results.

51
 SCM Base

Alternative-Based Confirmation (ABC)

Intelligent selection of substitutes Sales Orders

When and how Alternative Control and

What the Business Needs: substitutions should be Substitution Strategy
carried out?
➢ In case of stock unavailability, fulfill orders from the inventory from
alternative plants and / or from stocks of substitutable materials.

➢ Choose the best possible alternative based on the current situation, What are the List of all possible and
substitutes? allowed substitutes
instead of a fixed sequence of non-optimal substitutions.

➢ Substitution should be carried out according to the business rules

and priorities.
What is the availability ATP results of all feasible
for each substitute? substitutes

➢ Directly ship from subcontractor to the customer.

Which one is the best

Alternative-Based Confirmation provides the mechanism to alternative?
Alternative selection

provide order confirmations based on the availability of inventory

in alternative locations or products, if the original requested
product is not available at the desired location for fulfillment.
Order
Confirmations
52
 SCM Base

Alternative-Based Confirmation (ABC)

Intelligent selection of substitutes
Easy to configure alternative control and substitution
strategy.

Support of both product and location (plant/ storage

location) substitution.

Flexible modelling of substitution master data.

Decision to trigger ABC during sales order creation or change.

Dynamic selection of alternative: best fit (vs first fit) according

to configurable alternative rules.

Consideration of all ATP constraints during alternative

selection.

Partial confirmations from multiple sources, with tie-breaker

logic for equally placed alternatives.

Supplier and source of supply determination to initiate Third-

Party Order Processing (TPOP)

53
 SCM Base

Interactive ATP
Adjust order confirmations to suit business needs
Release for Delivery App allows interactive change to sales
order confirmations before releasing the orders to delivery. The
App enables :

▪ Impact simulation of current ATP situation

▪ Direct navigation to Sales Order
▪ Display of Batch and Allocation* restrictions.
▪ Visual representation of the stock situation of a
material/plant
▪ Worklist refresh before releasing changes to accommodate
background changes

Review Availability Check Results App allows merging of

several delivery proposals in case of multiple schedule lines to
reduce number of deliveries to customers. The app also allows
to choose suitable alternative out of all possible proposals if
Alternative-Based Confirmation is triggered with several
building rules.

54
 SCM Base

ATP Analytics
Understanding ATP Situation
Product Allocation Overview App helps analyze and monitor
Product Allocation data to understand the product allocation
situation
▪ Drill down and analyze the product allocation situation for
product allocation objects, characteristic value
combinations in different periods.
▪ Drill down into order items and identify all consumed
product allocation quantities and the order in which the
quantities have been consumed.

55
Agenda

1 Business Challenges in Order Promising

2 Overview of Order Promising in SAP Cloud ERP

3 Value Proposition

4 Resources

56
 Operational User

ATP for Operational Use vs SCM Base

Clear Business Priorities,

Simpler Supply Chain Constraints,
Predictable Supply and Demand variability

When can I fulfill

the demand?

Order
Sales Order
Availability Check Confirmations

57
 SCM Base

ATP for Operational Use vs SCM Base

Shifting business priorities,

Volatile supply and demand situation,
Intricate Supply Network with Overlapping Constraints
What are my How much should I How much supplies How much can I What is the best
substitutes? confirm? do I have? confirm? alternative?

Sales Order Alternative Sales PAL Availability Check Capacity PAL Alternative Order
Control Selection
Confirmations

How much Supply Protection

reserved for
others?

58
SAP Cloud ERP Order Promising IT Value Proposition

Fast Simple Flexible Intelligent Integrated

➢ Built natively in ➢ Intuitive and ➢ Available in all ➢ Next generation ➢ Integral part of End-to-
S/4HANA Enterprise. user friendly deployment options – order promising functions End business processes
interfaces On Premise, Public
➢ Uses the master and ➢ Automated exception ➢ Integration to Planning,
Cloud, Private Cloud
transaction data of the ➢ Easy set-up and handling Manufacturing,
S/4HANA Core. maintenance ➢ Configurable and Procurement, Logistics
Flexible Extension
➢ Uses latest HANA ➢ Flexibility in importing
options.
technologies and exporting data from
external systema

59
SAP Cloud ERP Order Promising Business Value Proposition

➢ Commit with ➢ Improve Customer ➢ Manage shortages with ➢ Select Dynamically the ➢ Decide Intelligently
Confidence Service Level by demand segmentation best fit substitutions with understanding the
effective allocation and priority based order ➢ Control flexibly when and order confirmation
➢ Real-time, Accurate and
management confirmations how the substitutions explanation and Analytics
Feasible
➢ Protect Customer should be carried out
Interests during supply
shortages

38% fewer orders back-ordered in organizations where intelligent 24% lower Expedited Transportation Spend incurred by organizations
commitments can be made to accurately schedule delivery dates in real time.* using product allocations based commitment, during supply shortage.*

* Note on Methodology: Performance metrics represent a comparison of results from companies that have high adoption of process-related best practices vs. companies that do not. 60
Source: SAP Supply Chain Planning Benchmarking Survey, covering more than 370 companies across 20 industries.
Agenda

1 Business Challenges in Order Promising

2 Overview of Order Promising in SAP Cloud ERP

3 Value Proposition

4 Resources

61
Find more information on Intelligent Order Promising

aATP in SAP Help

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