Our Solution Focus for
Two-Tier ERP

a Fast, Secure and Flexible SAP Cloud ERP Solution

Global and expanding organizations are increasingly adopting a Two-Tier enterprise resource planning (ERP) strategy to run their global businesses on two or more ERP systems to meet market needs.

SAP’s Two-Tier ERP strategy with SAP S/4HANA Cloud offers headquarter-subsidiary, central services, and supply chain ecosystem deployment models, enabling business and IT to work together to build sustainable, scalable solutions providing all benefits of cloud deployment – agility, standardization, and low total cost of ownership (TCO) – while maximizing existing investments in their ERP systems (in cases where an organization is not ready to transition to the cloud entirely.

Let us discuss the options of Two-Tier ERP support with SAP S/4HANA Cloud Public Edition

Start Simple with SAP S/4HANA Cloud, Public Edition

Identify areas within the company with natural boundaries and processes that fit the SAP S/4HANA Public Cloud.

Examples to start simply with Public Edition include:

Subsidiaries
Minimally integrated lines of business
Newly acquired businesses
Geographical regions.

The above situations represent starting points for the first SAP S/4HANA Cloud, Public Edition implementation and building expertise in running ERP in the Cloud. This approach minimizes the impact on the rest of the organization using the existing ERP environment.

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Expand your Cloud Business Solutions

The initial SAP S/4HANA Cloud system can be expanded, or new SAP S/4HANA Cloud systems can be added to the federated system based on the same criteria used to determine the first system. In addition, central services such as finance and central procurement can be brought into the scope to consolidate cross-company business processes and thus increase the horizontal usage of the cloud. In parallel with the subsequent rollouts, retrofitting of current SAP ERP processes should continue.

Two-Tier ERP Hybrid Scenarios

SAP Two Tier Scenarios

Two-Tier Scenarios

Finance

Group Reporting & Consolidation
Cash & Payments
Financial Operations
Enterprise Risk and Governance
Real Estate Management and Treasury

Analytics

Financial Planning & Analysis
Financial Planning and Consolidate Plan data

Order to Cash

Subsidiaries as local Sales Offices

Sale from Local (Goods & basic Services)
Sale from Central Stock (drop shipment process)
Returns Handling with Credit & Debit Memos support
Sale from HQ Direct procurement from Subsidiary
Service Order Management in Headquarter-Subsidiary Model
Repair Order Integration
Sales and Installation Process
Predictive Maintenance with Service Integration in SAP S/4HANA Cloud

Source to Pay

External & Basic Internal procurement

Procurement directly by subsidiary with process visibility HQ
HQ as an internal supplier to subsidiary via Central Contract
Central Procurement Hub

Processes

Manufacturing Processes

Subsidiary as a production unit and internal supplier to HQ

Procurement Processes

Procurement directly by Subsidiary/affiliates with visibility to HQ/corporate

Sales Processes

Drop Shipment process

Sustainability (Cross Topics)

Product Footprint Management Analytics Dashboard

Design-to-Operate

EPPM

Project-Based Service Procurement
Multi-Project Scenario Supply chain
External integration with transportation planning

Supply Chain

External integration with transportation planning

Manufacturing

Subsidiary as a production unit and internal supplier to HQ
3rd party warehouse management integration
Integration with Manufacturing Execution System (MES)
Enabling the subsidiary to manage assembly for HQ
Predictive MRP with Scheduling Agreement Integration

Master Data

Master data replication
Master Data is administered centrally by Master Data Governance (MDG)
Master Data Replication – Bill of Material and Change Master
Business Partner Replication- Using Cloud Integration middleware

What is part of our Two-tier ERP approach?

Process Scope

Your selection of Two-Tier ERP processes:

Order-to-Cash
Design-to-Operate
Source-to Pay
Record-to-Report
Analytics
Master Data Management

Including - based on the 22.08 release:

Forms
Real-time Analytics Dashboard
Standard Best Practice Business Roles
Localization support for 48+ countries
Language support 29+ languages

SAP Activate Accelerators

Scheer uses SAP Activate plus:

Scheer’s Industry-Process-Driven SAP Implementation approach
Industry Models for quick scope confirmation
Workshops for rapid SAP Best Practice Adoption
Pre-defined Project Planning
Working instructions
Data Migration Tooling & Support
Test Procedures for Quality and Acceptance
Solution Management Cockpit

Solution Details

SAP S/4HANA Cloud, Public Edition*1
SAP Business Technology Platform *1 for Authorization, Access, Extensibility, and Integrations
3 Tier: Production, Quality and Development System
Configured Best Practice End-to-End Solutions
Yearly major updates are scheduled for Feb and August
24/7 Product Support by SAP

*1) Subscription-based Licenses program for three years

License & Services

SAP Subscription-based License costs
Minimum of 25 Full Equivalent User - Base version
1 FUE can be assigned to:
- 0,5 Developer Access
- 1 Advanced User
- 5 Core Users
- 30 Self Service Users
Availability of starter system, plus a minimum of 4 months to Go Live
Implementation services start from 200K