Our Solution Focus for

Two-Tier ERP

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.

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.

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.

• 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

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

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 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

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

• 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

• 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