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Hi everyone, I am Sathishkumar from S/4HANA Cloud Product Management Team.

In this blog, let’s understand how Shop Floor Execution Process can operate with 2-tier deployment model by integrating S/4HANA Cloud with 3rd Party Manufacturing Execution system.


In 2-Tier ERP where S/4HANA Cloud runs in subsidiary, the subsidiary can leverage an existing Manufacturing Execution System running at Headquarters for managing and monitoring work-in-process on the shop floor.

Lets understand the benefits of such an integration in 2-Tier context:

A manufacturing execution system (MES) is a control system for managing and monitoring work-in-process on a shop floor. An MES keeps track of all manufacturing information in real time, receiving up-to-the-minute data from robots, machine monitors and employees. It collects, store and share manufacturing data that determines how a product is built. Also collect information required for traceability, manage defects and implement corrective actions to prevent recurrence of failure

Although manufacturing execution systems used to operate as self-contained systems, they are increasingly being integrated with enterprise resource planning (ERP) software suites. The goal of a manufacturing execution system is to improve productivity and reduce cycle-time, the total time to produce an order. By integrating an MES with ERP software, production managers can be proactive about ensuring the delivery of quality products in a timely, cost-effective manner.


I foresee the following benefits from MES integration

  • Immediate business impact through greater shop floor control

  • Seamless collaboration and increased traceability of manufacturing processes

  • Reduces manufacturing cycle time, data entry time, lead time, WIP inventory etc

  • Improves product quality, eliminates lost paper work, empowers plant operations people

  • Real-time collection and communication of all shop floor data with the enterprise system

  • Historical manufacturing data is accessible in real time, supporting comprehensive analysis and continuous improvement activities

As of SAP S/4 HANA Cloud release 1708, SAP has provided pre-packaged integration of SAP S/4HANA Cloud with 3rd party Manufacturing execution system (MES).

Scope Item: 1Y5

Integration of S/4HANA Cloud with Manufacturing Execution System is established by classical technology (BAPIs, IDOCS).

Let us understand the process flow in details

Process Flow

Based on the production planning process (MTS/MTO), Planned order will be converted to Production order or production order will be directly created in S/4 HANA Cloud.  Once the Production order is released it will be sent to external MES system for further processing via IDoc. The external MES will receive the outbound delivery IDOC and respective process like component picking, process the item, confirm the item or scrap/reject the item will take place.

Finally, the confirmation information will be sent back to S/4HANA Cloud from external MES.

S/4HANA Cloud receives the confirmation activities from MES and posts according. The left-over components will be picked and issued against the production order if not issued via MES.


The following IDOC/BAPI will be used to integrate S4 HANA Cloud with 3rd party manufacturing execution system (MES)

S/4HANA Cloud to MES

  • Material Master (IDOC - MATMAS)

  • Work Center (IDOC – LOIWCS03 )

  • Routing (IDOC - LOIPROXX)

MES to S/4HANA Cloud


 In Conclusion:

MES can run on Headquarter, but receives Order data from S/4HANA Cloud and sends back execution data to S/4HANA Cloud.

By using the 2 tier approach business have prepackaged integration at every identified point where the subsidiary interacts with the HQ-MES for Production execution details

To summarize, SAP S/4HANA Cloud integration with 3rd party MES at Headquarters provides agility and flexibility in production execution processes at subsidiary.

Stay tuned to for the next blog in this series.

For more information on SAP S/4HANA Cloud, check out the following links: