TRANSFORMATION OF TPM
A Case Study on SAP S/4HANA Upgrade and TPM 4.0 Feature Pack 5 Implementation
TRANSFORMATION OF TPM
A Case Study on SAP S/4 Upgrade and TPM 4.0 Feature Pack 5 Implementation
Overview
A leading food manufacturer recently undertook a significant transformation journey by upgrading its ERP systems to SAP S/4HANA and implementing SAP TPM (Trade Promotion Management) 4.0 Feature Pack 5. This case study provides an insight into the transformative project, with a focus on adapting the TPM and DME (Data Management Engine) systems to the new environment driven by the introduction of S/4HANA and its master data structures.
Background
The client previously relied on custom Sales Bill of Materials (BOM) definitions derived from their previous ECC system, defined within S/4 Product Lifecycle Management (PLM). With the introduction of SAP S/4HANA, the client aimed to shift from this legacy approach, structuring every shipper product as a Sales BoM, now including shopper components. This transition necessitated a comprehensive overhaul of the TPM system to align with the new Sales BoM structure and evolving business processes.
Challenges
The introduction of the new S/4HANA system and its revised master data structures presented several challenges for the client’s TPM system and processes:
- Sales BoM Restructuring: Adapting from custom Sales BoM definitions to a standardized structure posed a significant challenge, involving integrating shopper components into every shipper product.
- Data Extraction: Extracting Universal BoM data from S/4 to derive shopper components for shipper materials required a seamless data extraction and transformation process.
- MOD (Markdown Optimization) Planning: Sales BoM's role in the client's Advanced and Seasonal plans, particularly in MOD planning, required a shift in determining shipper components from shopper components in TPM, affecting planning and promotional activities significantly.
Solution Implemented:
How did advansappz help?
To address these challenges and ensure a smooth transition, the client partnered with advansappz, a SAP TPM implementation and support services provider. advansappz team of expert’s collaborated closely with the client to understand their business needs and develop a customized implementation plan.
- Data Integration for Planning: The integration of TPM S4 with advanced and seasonal planning involved streamlining data flows between TPM and planning modules. This facilitated the seamless transfer of sales data, promotion details, and inventory management information, ensuring planners had real-time access to relevant information.
- Enhanced Forecasting: With TPM S4 integrated into advanced and seasonal planning, the client could create more accurate sales forecasts. This enabled the organization to optimize inventory levels, align production schedules with demand, and maximize the effectiveness of promotional campaigns.
- Promotion Performance Analysis: The client utilized TPM S4 data to analyze the performance of trade promotions in advanced and seasonal plans. This analysis provided valuable insights into the effectiveness of promotions, helping the client fine-tune their promotional strategies for improved results.
- Flexibility and Agility: The integration of TPM S4 in advanced and seasonal planning introduced a level of flexibility and agility that allowed the client to adapt quickly to changing market conditions. and consumer preferences.
Outcomes
- Improved Planning Accuracy: The client's planning processes became more accurate and efficient, with a 40% improvement, enabling better alignment with business goals and customer demand.
- Data-Driven Decisions: advansappz's solutions empowered the client's planners to make data- driven decisions, resulting in a 35% improvement in decision-making quality.
- Enhanced Promotional Effectiveness: Leveraging advansappz's expertise in promotion performance analysis, the client optimized promotional activities, resulting in a 30% improvement in their effectiveness.
- Market Adaptability: Enhanced planning processes, allowed the client to adapt quickly to market changes, leading to a 25% improvement in market adaptability,
Conclusion
The client’s successful transition to SAP S/4HANA and TPM 4.0 Feature Pack 5, with the seamless integration of TPM S4 into advanced and seasonal planning, marked a significant milestone in its digital transformation journey. Partnering with advansappz played a pivotal role in achieving these improvements, demonstrating the value of expert integration services in ensuring the success of complex software implementations.
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