Short Overview regarding Raw material compliance with EHS Classic

[christoph_bergemann]

Introduction

In this blog I will try to describe the challenge for an e.g. chemical company in handling raw materials (describing a chemistry).;  what are the critical aspects to look at (from EHS point of view and partially from MM (Material) point of view.

The Basics

EHS differentiate in objects of type REAL_SUB and REAL_SUB_E; discussion in https://community.sap.com/t5/product-lifecycle-management-q-a/documentation-on-real-sub-e/qaq-p/7361... and / or https://community.sap.com/t5/product-lifecycle-management-q-a/why-real-sub-e/qaq-p/10182231

and/or https://community.sap.com/t5/product-lifecycle-management-q-a/real-sub-e-for-supplier-data/qaq-p/102...

and/or

https://community.sap.com/t5/enterprise-resource-planning-q-a/reach-creation-of-real-sub-e-linking-w...

and many others showed that the difference between REAL_SUB and REAL_SUB_E is may be not understood very well.

E.g. https://community.sap.com/t5/product-lifecycle-management-q-a/ehs-classic-data-model/qaq-p/12101720 is referring to the SAP standard model which is shared in many lectures.

After some research: we can find this SAP help:

https://help.sap.com/docs/SAP_ERP/e3e7c06560a54d14ba7f4c52a86635da/1da3fd53b988e362e10000000a44176d....

and https://help.sap.com/docs/SAP_ERP/e3e7c06560a54d14ba7f4c52a86635da/4a48fb53b9c6161ae10000000a4450e5....

And you will find than this sentence in the SAP online help:

"It is recommended that you use the specification type External Real Substance (REAL_SUB_E) for supplier materials"

But what is now the consequence? How to manage this REAL_SUB_E etc. ?

The SAP help indicate this:  if you are using a material number for a raw material you should link this Material number to a REAL_SUB_E. What but are the additionaly consequences?

Now let us come back to the challenge as such:

To use SAP ERP (whatever version): any logistic process runs with "material numbers". And the above topic is referring to a "material" (iin the sense of material number)

Now let us look on options, how to handle this (assuming you are buying from many suppliers the "same" chemistry (e.g. benzene)).

Framework

At any point in time the supplier can send e.g. a new SDS or other information. So there is a regular need to check the data of the supplier and then to decide: what is the next step (in using the new/changed data).

Several options exists to manage this challenge. Here are the most important options to check:

Case 1: you use a material / EHS model like: any supplier is getting his own material numbers and for any supplier you define a REAL_SUB_E

As a consequence: you need to consider imporant aspects like:

• You need to generate one material number by supplier (e.g. by may be using the name of the material as used by the supplier)
• You need a Safety Data Sheet (SDS) from the supplier of the material
• In most of the cases the information in SDS is not "good" enough to be used in EHS. So you need (what is called) on top a "specification" (or other documens giving more insight regardgin the chemistry); such a specification has many different variants. Many companies use it to describe "general" topics like: does "not contain" aspects or "is registered" (in US, REACH etc:); sometimes you get more data regarding the "Chemistry"
• Then you wil generate one REAL_SUB_E and link the material number to this object
• As a consequence: you need to upload the SDS (to the REAL_SUB_E) and the specfication should get some e.g. "identfier" or you can use the specification header remark field to make a link to a "Supplier". This supplier you can describe by a "Name" or (which is much more better) by using a "Business Partner Number"
• Now by reading the Safety Data Sheet information you can extract the important EHS data and then try to map this to your EHS structure
• Quite interesting is the challenge: how to use now the REAL_SUB_E if these are "starters" for other material numbers (which you spriduce and then sell) and for which you would prepare a REAL_SUB. How you do the job ? ... based on experience: I am sorry there is no "black", "white"

What is the benefit of this data model: per "material number / supplier" you prepare a REAL_SUB_E. On this object only data from one supplier need to be managed. Only the SDS of this supplier need to be uploaded etc.

You can call this: Simple and clear to understand. But if you have many supplier for the same chemistry: you need more time for maintenance (on REAL_SUB_E Level) and the use of these "REAL_SUB_E" objects is much more complex (as you need this REAL_SUB_E to manage data on other objects).

Case 2: You use the same material numbers for any supplier but still one REAL_SUB_E

This is now more complex (from functional point of view): You need now to read "all" relevant SDS (and other information) and try to generate "one common EHS data set" on REAL_SUB_E level; but it reduces the maintenance on EHS side. It reduces as well the number of material numbers to check/look at. But the "negative" effect is: on the same REAL_SUB_E you now handly many SDS from many suppliers (e.g. by using CG36VEN). The positive effect is: you have one common "REAL_SUB_E" which you can consume in other specifications objects easily.

Case 3: you ignore the recommendation of SAP and maintain all data on REAL_SUB level 

In a nutshell: you do not use REAL_SUB_E but REAL_SUB to do the job,

I will not go here to the details: but this model seems to be used as well.

Why is the decision so important?

The reason why you should be careful in the decision is the next part.

The above listed raw materials and REAL_SUB_E's can be used to e.g. produce a new chemistry either as physical mixing or they are reacting to get new chemistry.

Now the critical part is the "Mixing". As part of the mixing you normally generate a new material number which you now sell.

And if you sell: you need a SDS (and much more).

But how can this be achieved?

E.g you can use 3E Expert rules to generate lot of data for the "selling" product. 

But if the suppliers are dramatically deviating in the e.g. "GHS" Statement: how should you calculate GHS Classification / Labeling for the REAL_SUB?

So the challenge is: how to maintain the composition for such cases (on REAL_SUB level of the selling product) to have an full E2E process.

Conclusion

Based on experience: There is no "black" and "white" .. that means: any chemical companies use a slightly different approach to manage the challenge. And the issue comes only up if the "same" chemistry is to be managed.

Some companies are close to the SAP Standard; some far away.  From technical pont of view: no problem. But from functional point of view: the wrong approach can have negative impact on the daily maintenance of specifications.

But if you start an EHS Classic Implementation. This topic is a critical one. It determines heavily how you must later use EHS Classic to get the most profit.

And this is a "on top" Challenge. Even if the company is writing down a "maintenance guideline" and trainings are given etc. there is always a risk of deviation (in daily practise) and these deviations should be reduced (there should be a monitoring to make sure that the company decision: hwo to maintain the data: is checked reguarly).

What will be the future?

With SAP Product Compliance: in principle a similar framework  is available as in EHS Classic. The challenges are the same. The technical solution is different.

So: if you plan to move to SAP Product Compliance (either still useing EHS Classic or not): make sure that you have a good understanding: what is delivered in SAP Product Compliance and what need to to look at and how to use the new data model.

May be check: 

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/9c64fdb784504c5e8f2...

and

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/b96801d99f6745a0996...

to get more insight regarding this.

Material Part

Let us assume you buy the "same" chemistry from three suppliers. Any supplier provide the material in a different size.

Let us use this combination:

Supplier	Material 1 (size of)	Material 2 (size of)	Material 3 (size of)
A	100 kg	1000 kg	200 kg
B	25 kg	75 kg	125 kg
C	10 kg	50 kg	150 kg

How to manage this?

As explained before. you have many options.. But from practical point if view: it is best to prepare 9 different material numbers.

You can link these numbers to the material numbers as used by the supplier.

Why is it pragmatic and correct to use the 9 material numbers: 

Because the "size" of the different material is like that... So if the material is located in some warehouse (this is common practise) you can easily calculate the "stock" of this chemistry.

The "negative" part is: you must activate all the material numbers to be used in the several logistic processes.

This can be a time consuming story. But you reflect the reality ! And this is good if there would be an Audit.

By using the REAL_SUB_E (refer above) you would link the material numbers of supplier A to the REAL_SUB_E which represent the supplier A.

In a nutshell: to be compliant and to stay compliant need effort in using SAP ERP // S/4 HANA.

Material Part 2

SAP deliver a standard set up regarding "material types".

We can list

- HAWA

- ROH

 - HALB

- FERT

It is your decision if you use this proposal or you deviate from it.

Let us assume you accept the model.

Then the above listed potential material numbers will be of type "ROH" as we have a raw material.

Normally "ROH" is a material type to be purchased only.

But sometimes you need to move a raw material from "plant 1" to "plant 2" (because of many reasons).

The plants in focus can be assigned to the same company code and might be located in the same country (but need not to be).

So it could be that you need a "transport" (here physical transport) to move a "ROH" material from location "A" to "B".

To do so: you can use a "stock transfer" but to do so: you must use a "delivery" and potentially a transport (here logistic document) in SAP LE-TRA or SAP TM.

And in the "worst case": plant code 1 belongs to different company code than plan code 2.

And now you have an "intercompany sales process".

And you need a solution (potentially) of this. How you define the solution.. many options

But luckily: chemistry does not change BUT you must e.g (or should have done it) at least prepare some dangerous goods data; depending on "starting country" and "target country" you need to think about Substance Volume tracking.

SO KEEP IN  MIND: If you start a SAP project: IMPORTANT IS THE SO CALLED BLUE PRINT.

I wish you the best

PS: with the new product "SAP Product Compliance": the story will not really change. Whatever you have learned by using EHS Classic: you can do (hopefully) an easy transformation of your business processes to the new environment.