- SAP Managed Tags
Introduction
Building on my previous blog post, ‘SAP S/4HANA Demand and Supply Segmentation - A Practical Guide for Solution Architects’, I’d like to delve deeper into the solution’s current capabilities and share insights drawn from numerous customer engagements.
Over the past two years as a Business Transformation Consultant, I’ve supported several Life Sciences customers across pre-sales, prototyping, and implementation activities. These experiences have provided valuable lessons that I’m excited to share.
Rather than a step-by-step implementation guide, this post offers practical insights to help with project scoping and planning.
Solution Validation
Customers' interest in Demand and Supply Segmentation remains strong, as its value proposition effectively addresses the key challenges faced by Life Sciences organizations and other regulated industries. However, depending on specific business process requirements and either the current or target SAP S/4HANA release, questions have emerged regarding solution coverage, interfacing, master data harmonization, and change management.
Already in earlier releases, SAP has addressed essential functional gaps in Demand and Supply Segmentation through enhancements in SAP S/4HANA:
- 2021 Release: Focus on Production Planning for Process Industries (PPPI).
- 2022 Release: Expanded capabilities in Embedded Warehouse Management (eEWM), Production Planning and Detailed Scheduling (ePPDS), and Quality Management (QM).
As part of an extended Proof-of-Concept (PoC) and also an actual implementation for two large Life Sciences customers, we successfully validated a comprehensive end-to-end (E2E) logistical process. This included all major business areas such as Supply Chain Planning and Execution, Procurement, Order-to-Cash, Manufacturing, and Quality Management, utilizing SAP S/4HANA 2023 PCE/OP FPS02.
In summary, Demand and Supply Segmentation now supports a wide range of standard business processes, as well as key processes in the following areas (refer to figure below):
- Advanced Available-to-Promise (aATP)
- Quality Management (QM)
- Production Planning for Process Industries (PPPI)
- Embedded Extended Warehouse Management (eEWM)
- Embedded Production Planning and Detailed Scheduling (ePPDS)
Lessons Learned
Demand and Supply Segmentation has demonstrated its ability to address critical challenges for Life Sciences organizations and other regulated industries. While SAP S/4HANA has progressively closed key functional gaps across multiple releases, practical experience from Proof-of-Concepts (PoCs) and large-scale implementations reveals important considerations for ensuring successful adoption. The following lessons learned highlight key insights and recommendations to guide future projects.
EWM and ePPDS including batch classification and shelf-life planning
- Add segmentation-specific characteristic to generic EWM batch class SAP_EWM_LOBM (refer to Master Data for Segmentation | SAP Help Portal)
- Add the same characteristic to batch classes used in relevant material master
- Don’t use identical names for Segmentation characteristic, strategy and batch class. Reason: with the integration to ePPDS, automatically a Segmentation characteristic is created with the name of the strategy (refer to Characteristic-Dependent Planning (CDP) | SAP Help Portal).
- For ePPDS integration, both Routing (ROU) and Bill of Materials (BOM) were initially required for Segmentation relevance. However, SAP Note 3420855 - PPDS: Routing relevancy is mandatory at the structure level to activated segmentation with... has relaxed this requirement. Depending on your scenario, flagging either ROU or BOM may now be sufficient.
Segmentation-dependent MRP data
- In S/4HANA, segmentation-dependent MRP data is no longer available (refer to SAP Note 3296784 - S4TWL - Segmentation Simplification - SAP for Me). In order to allow, for instance, segmentation-dependent lot-size data a custom-table similar to SGT_MRP or EINSGT needs to be created and used during source of supply selection. In ePPDS this could be implemented using the BAdIs /SAPAPO/RRP_PLANNING, /SAPAPO/RRP_SRC_EXIT and /SAPAPO/RRP_LOTSIZE_STD.
Goods Receipt in EWM
During the Goods Receipt (GR) process for Inbound Deliveries (IBDs) in Embedded Warehouse Management (EWM), we observed a segmentation-specific behavior: if stock already exists for a material and batch, the new GR is always posted to the existing batch, and no new batch is created. This behavior can be adjusted using the BAdIs ES_BADI_SGT_DET_VALIDATE or BADI_BATCH_DET, specifically the method MODIFY_BATCH.
Master Data Governance
- Currently, Master Data Governance (MDG) does not support the maintenance of segmentation fields in the material master. To enable this functionality, the screens and services must be enhanced as part of a project-specific enhancement.
Audit Trail
By default, database tables for Demand and Supply Segmentation configuration don't have change history activated. However, table logging can be enabled easily using the Audit Trail Tool (transaction S_AUT01) for the following tables:
- SGT_CATS: Segmentation Structure Fields Table
- SGT_CSGR_L: Segmentation Structures - Short Texts
- SGT_CSGR_T: Segmentation Structures
- SGT_COVS_L: Segmentation Strategies - Short Texts
- SGT_COVS_T: Segmentation Strategies
Interfacing through IDOCs, BAPIs, APIs, etc.
- Certain IDocs, such as MATMAS and BATMAS, already include the Segment field. However, others, like LOIPRO, can be enhanced using the BAdI CO_MES_INT_IDOC.
- Similarly, some APIs, such as API_MATERIAL_DOCUMENT_SRV and API_PROCESS_ORDER_2_SRV, support the segment field natively. In contrast, APIs like CO_MDM_PRD_BULK_REPL_REQ_OUT require enhancements to include this functionality.
- Additionally, the segment structure and strategy can be interfaced through the following APIs:
- API_SEGMENTATIONSTRUCTURE
- API_SEGMENT_SRV
- API_DFLTSEGMTNMAINTENANCE
Migration and post-Go-Live Segmentation activation/deactivation
A frequently discussed topic is whether Segmentation can be activated or deactivated for materials post-Go-Live, particularly when existing inventory or open documents, such as sales orders, purchase orders, or process orders, are involved.
Currently, there is no standard solution for this scenario, except for leveraging the "Enable Blank" approach within the segmentation structure.
However, this situation bears similarities to the process of batch management activation and deactivation for materials. With the tools provided by the Batch Management Team (refer to SAP Note 533276), it is theoretically possible to apply a similar approach to Segmentation activation or deactivation.
Note: This concept remains untested and requires thorough prototyping and validation. Additionally, the Batch Management Tool must be purchased and customized on a project-specific basis.
Future Solution Capabilities
SAP Integrated Business Planning (IBP)
- The introduction of Characteristics-Based Planning (CBP) in SAP IBP (Release 2411) opens exciting possibilities for integrating Demand and Supply Segmentation with advanced planning processes (refer to Setting Up Characteristics-Based Planning | SAP Help Portal).
- This feature is currently available by request, offering early adopters a competitive advantage.
Summary
Demand and Supply Segmentation has proven to be a vital solution for overcoming key challenges faced by Life Sciences and other regulated industries, with SAP continuously enhancing its functionality to meet evolving needs. The insights and lessons gathered from real-world implementations not only highlight the maturity of the solution but also provide valuable guidance for future projects.
Looking ahead, the integration of Segmentation with advanced planning tools like SAP IBP’s Characteristics-Based Planning represents a promising step towards even greater process optimization and strategic flexibility for businesses.
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