SAP S/4HANa for Product Compliance Data Migration approach: Raw Materials - Bulk vs Packaged

[Paulo_Pinto]

Hello dear community, I need your insights and advice regarding this subject.

My customer is a group of Chemical Companies with several roles along the supply chain. The current scenario regarding purchased materials products is as follows:

1. Some materials/products are purchased in "true" bulk/unpackaged form. 

1.1. Of these, some of these are sold in the exact same "category" in which they were purchased, that is bulk/unpackaged. 

1.2. Of these, some are also sold and/or in different packages (of course these are different SAP materials/products, which are "produced").

1.3. Of these, some are exclusively sold in different smaller packages (again, of course these are different SAP materials/products, which are "produced"). 

1.4. Of these, some are used in the production of other materials (chiefly mixtures, some "articles (plastics) but there is also some production of new substances)

2. Some materials/products are purchased in packaged form, IBC's and other - without a clear "true" bulk/unpackaged material to refer to. This is my main worry.

2.1. Of these, some are also sold and/or in different packages (of course these are different SAP materials/products, which are "produced").

2.2. Of these, some are exclusively sold in different smaller packages (again, of course these are different SAP materials/products, which are "produced"). 

2.3. Of these, some are used in the production of other materials (chiefly mixtures, some "articles (plastics) but there is also some production of new substances)

Now my doubts are related to which is the best - or most advisable - way to migrate the raw material data in order to assure the most seamless go live as possible, especially regarding the materials/products purchased in "packages" without a clear or "true" bulk/unpackaged material.

(I'm trying to be clear about the scenarios, please ask for clarifications if needed).

Thank you in advance!

Paulo Sérgio Pinto

[Mark-Pfister]

Hello @Paulo_Pinto,

I understand that you want to use the new "S/4HANA for product compliance" solution.

As you indicated that you are migrating - please don't mind me asking what functionality of the new solution you want to use.
Please be aware that SDS Authoring, Labeling, and Substance Volume Tracking are not yet possible with the new solution.
However Dangerous Goods processes and product marketability checks are already working.

The good news is, that you can use the classic functionality until 2037 under S/4HANA - as long as you stay on release S/4HANA 2029.

Best

Mark

[Paulo_Pinto]

Hello @Mark-Pfister 

I'm implementing the S/4HANA for product compliance solution, on-prem, version 2023. Customer bought this product, along with EHS (new), and does not want to use the classic solution. 

I started with the Product Marketability and Chemical Compliance functionalities, which include SVT, that I understand is working in this version (?); that will be my next step in my approach, after I migrate/upload the master data needed to run the "pure" PMCC functionalities - as you can imagine this is an interesting challenge.

After this I will be implementing Dangerous Goods Management and only after I'll tackle SDS and Labelling, as my customer is least interested in these functionalities (for now). SDS Management I think it's fully operational, and from what I've been reading, SDS Authoring is also operational, although it might not be as mature as other non-SAP solutions the customer is using (and will require a substancial effort regarding master data). Labeling is operational as from 2023 versions, but it uses a third-party organization (with additional costs, for what I understand). 

Off course I might be misguided; in that case I'll appreciate some guidance towards the real state of affairs regarding SAP S/4HANA for PC.

Thank you for your remarks (they have me thinking about learning the classic solution as well!)

[christoph_bergemann]

Hello

based on this:

"Thank You Christoph for taking your time to answer my question.

The fact, though, is that I am talking about (SAP S/4HANA for) Product Compliance "new", and not (SAP S/4HANA for) EHS, or any of the classic solutions, as the customer is already on S/4HANA (2023), and not ECC.

As such I guess the scenarios I've posted, may be a bit less confusing when it comes to PC, but I admit they need some clarification; I'll address that as soon as I'm able.

Nevertheless, some your insights are already helpful in clearing some my doubts."

So if you would like to use "Product Compliance New": the challenge is different .

The topic is "much more complex" to explain. I try my very best to do it step by step (but i can only list the most important topics to consider):

1. First you must understand the "CCI" ! (e.g. check: https://community.sap.com/t5/product-lifecycle-management-blogs-by-members/new-sap-ehs-management-fo... or https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/sap-quot-ehs-quot-product...)
2. You must understand: what is a "packed material" and "unpacked material" (according SAP definition (PLEASE CHECK ONLINE HELP !)
3. You must understand: at which point in time you need a "CCI"? => if you do a set up of the new Product Compliance you can do it like: if the material is of type "RAW" you assume: it is chemistry and therefore you need a "CCI" (so any RAW material would need a CCI ! (Mandatory !); but you can do it "optional" as well; so that this is a case by case decision)
4. At the end: as part of "purchasing", "Sales / delivery process", "Production process": if somebody would use a material which is "CCI" relevant.. process will stop (if set up is done correct) and somebody need to check some "Fiori App"... (check online help for more detail); based on "request": now somebody need to set up a CCI and maintain/add data (e.g. composition etc.) to get the process "released" (called sometimes: an "assessment" is done).
5. Now: on CCI level: you need to "assign" the material; in doing so: you define the material as "packed" or "bulk" (e.g. needed for Dangerous good perspective); on top: you start with data collection (e.g. composition, density etc. etc. etc.)
6. NOW we have a big "BUT"... you MUST understand the new role concept !!! e.g. a material can be "purchased", "produced", sold/delivered/transported etc. Based on ths "role" concept (and many other information): the maintenance process will start. THIS IS NEW !! (in comparison to the old world).

But at the end: you have the "same" challenge in S/4 HANA as in R/3. Without a "clear" understanding regarding the "material" and the "CCI" you will not have a success (including topics as "Packaging" etc. etc. etc.).

In "Product Compliance" the process (e.g. a material is sold via SAP SD) and the data (on CCI level) are much closer and much more integrated. You maintain only (in principal) the data which is relevant for the specific business case.

But to use Product Compliance (S/4 HANA new version) to steer any process (in SAP) you might have to wait (for details: please check the SAP Roadmap Explorer for the roadmap of this solution) for a future SAP release.

Hope this helps.

C.B.

[christoph_bergemann]

Hello

your topic is a "complex" one with many solution options (if i understand your topic correct)

I try to read between the lines... if we talk about EHS Classic (and not Product Compliance):

your topic is starting with the "issue"... what is the material model to use?

Let us check topic one:

1. Some materials/products are purchased in "true" bulk/unpackaged form. 

If you purchase something you will store it (at least some hours) somethere. To do so: you need to know: is the material packed or not.

So on most cases you define a material like: "SAP Material 20 kg" (stupid example; you can extend this by more info regarding "packaging"; you can use the "Easy Cleaner" SAP standard example as well).

So you would generate one material number "per topic" (e.g. you might buy the same material with "50 kg" or "100 kg" or ... so we would then need three material numbers. In this case: we are talking about the same "REAL_SUB" with (in this case) three materia numbers. In the SAP standard model: you would use material type "RAW". IN doing so: you have at any point in time a clear picture regarding "stock" etc. and you can define easily the properties (on REAL_SUB) as you have only one "seller" of the material (and not many seller for "nearly" the same).

Regarding:

1.1. Of these, some of these are sold in the exact same "category" in which they were purchased, that is bulk/unpackaged. 

Not so clear what you have in mind.. I believe you are talk about a "merchandise" material

Here we have two topics.. on topic is: you "don't care" regarding SDS, label, and whatsoever

In SAP standard model you could use 6 material numbers.. 3 of type (RAW); and 3 of type "FERT" (as you sell something). Using this: you can handle on top DG, SDS, Label, SVT, etc. on your own

Or you "split" and generate one REAL_Sub for all "RAWs" and one REAL_SUB for all "FERTs".. (this approach does have as well pros and cons).

1.2. Of these, some are also sold and/or in different packages (of course these are different SAP materials/products, which are "produced").

I believe explanations above should still fit (ignoring the "production" part).

Regarding:

1.3. Of these, some are exclusively sold in different smaller packages (again, of course these are different SAP materials/products, which are "produced"). 

My understanding here would be: first you produce something; and then you sell something.. but your explanation is not clear.. please make your topic clearer

etc. etc.

So i propose: "Split" your question in "smaller" pieces as not all of your cases are clear to me.

In a nutshell: it depends how you use SAP standard model (RAW, HALB, FERT) + VERP in combination with one or more REAL_SUBs

But your topics are just "normal business"... (but any company use a different solution using SAP ECC/ERP).

C.B.

PS: to do the business using SAP: you need a clear "material model" and  a clear EHS model or you might get a problem

E.g. you can use "RAW", "HALB", "FERT" etc. If you buy something you do not do it (in most of the cases like): give me 100 kg of A but you define in most cases as well the "package" (IBC etc.) to be used.

And the company, from which you buy, should give you a clear insight about the packaging... (and you should store this information).

regarding packaging as such: here you can write "booklets". (what is allowed according to chemical regulations for transport and storage). This is again a reason to store the "packaging" information somethere.

And it is clear: if you produce or sell something: you have the same needs..

Now because of the "BOM" part (production BOM) some complexity might come up (depending how you use the SAP process (e.g. BOMBOS transfer)). A BOM as such is "plant specific". But you would like to sell always the same chemistry even if you produce it in plant A or B or with BOM Variant 1 or 2... so the "material concept", the "BOM" concept and the "EHS" concept must come together.

Higher complexity comes up if you use SAP RM/RD (Recipe Management / with HANA only Recipe Development is available).

Now people mix the "recipe" topic with the "BOM" topic.  This makes it more difficult.

And last but not least: e.g. for REACh (an many other similar regulations): a lot of data (in EHS sector) is linked to the "Brand/Trade Name"... and this you need to manage somehow as well in your "Material/EHS" concept.

In a nutshell: there are many companies out there willing to help you to get the best solution using SAP. Interestingly: there is no common approach. Complexity is increasing if you talk about: Food, Feed, Pharma etc. industry.

Therefore: before you start an SAP project dealing with chemistry: you need a good understading regarding external and internal needs.

Luckily: EHS provides some support here to help in maintaining the data (e.g. option to use "Reference/Inheritance", Using of Rulesets.. so you can facilitate the EHS maintenance

The support in MM part is limited. Here many companies use e.g. Material Classes to store some data or at least to store the data on batch class level.

On top: many companies try to use "Workflow" like approaches to bring EHS and MM together.

Wish you the best

[Paulo_Pinto]

Thank You Christoph for taking your time to answer my question.

The fact, though, is that I am talking about (SAP S/4HANA for) Product Compliance "new", and not (SAP S/4HANA for) EHS, or any of the classic solutions, as the customer is already on S/4HANA (2023), and not ECC.

As such I guess the scenarios I've posted, may be a bit less confusing when it comes to PC, but I admit they need some clarification; I'll address that as soon as I'm able.

Nevertheless, some your insights are already helpful in clearing some my doubts.