It is typical for Pharmaceutical Companies to Batch Manage and Shelf Life manage their materials and products. During Material Requirements Planning or Master Production Scheduling (both Standard and Long-Term Planning), the SAP S/4 HANA version (and all previous versions too) of ERP Application, does not discount the net available batch quantities that are expiring out into the future (and instead considers them as available depending on the Inventory Stock categories configured for the Checking Rule for MRP/MPS). This is a HUGE gap. There now exists a "Creative" solution (without any source code modification) with the following features to overcome the subject gap in S.4 HANA Classic MRP/MPS: The system dynamically takes into consideration the Expiration Date (or any Batch Date that you desire as key date) of balance quantity of batches in Inventory after consumption/netting off. The system calculates the quantity of a batch that will expire on the expiration date, or that will need to be discounted based on Key date of batch (e.g. Use By/Last Ship Date). The system reduces the 'Net Available Material Inventory' per requirement date, by the net quantity of the batch that whose expiration/key date is less than the requirement date of the requirement. Batch Numbers of the expiring/discounted batches and their respective quantities discounted will be visible in the MRP List and Stock Requirements List. An ability is provided whereby the entire functionality can be turned ON/OFF per "Plant-Material Type-Division" combination. The subject functionality scope includes the following Transactions: MD01 - Total Planning (Online) MRP MD02 - Single Item, Multi Level MRP MD03 - Single Item, Single Level MRP MD04 - Stock/Requirements List MD05 - Individual Display of MRP List MD06 - Collective Display of MRP List MD07 - Collective Stock/Requirements List MD41 - Single Item Multi Level MPS MD42 - Single Item Single Level MPS MD43 - Single Item Interactive MPS MDBT - Total Planning (Background Run) MRP MDBS - Total Planning (Background Run) MPS Long term Planning related Txns - MS00, MS01, MS02, MS03, MS04, MS05, MS06, MS07 Should anyone be interested in this functionality and wished to know more, kindly send us an e-mail and we can chat. Regards, Vijay Pisipaty IT Sapiens, Inc. e-mail: vijay.pisipaty@itsapiens.com

1. SAP S/4 HANA Shelf Life Expiration Date
(SLED) Pl i i Cl i MRP/MPS(SLED) Planning in Classic MRP/MPS
&
M t i l Ob lMaterial Obsolescence
Solution BriefSolution Brief

2. Index
Synopsis11
SLED Planning in Classic MRP/MPS
Requirements
22
IT Sapiens’ Solution Features33
Solution Merits55
Solution Demo44
Solution Merits55
Our Value Proposition66
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Questions ?77
p
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3. Synopsis11
 Classic MRP/MPS Functionality in all SAP ERP versions(including S/4 HANA):
 MRP considers inventory stock categories at a material level, based on the
configuration of the MRP related availability checking ruleconfiguration of the MRP related availability checking rule
 For a material, per stock category (unrestricted, blocked, quality,
returns) MRP considers the cumulative inventory of batches,
irrespective of the expiration date of respective batchesirrespective of the expiration date of respective batches
 It is expected that when batches expire out into the future, the system
should recognize the batch expiration date and decrement the
availability of the stock such that a planned order/pur.reqn could be
suggested for internal/external procurement vis-a-vis a requirement/issue.
This is a GAP in SAP.
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4. Batch Expiration Date Mgmt in MRP/MPS Requirements22
 Industry Requirements for Batch SLED Planning in Classic MRP/MPS:
 For Regular Stock items, Customer Stock items, Subcontractor Stock
Items, Vendor Consignment Stock Items, Project Stock itemsItems, Vendor Consignment Stock Items, Project Stock items
 If a material is batch managed and shelf life managed, MRP should
 during planning, dynamically take into consideration the
expiration date of balance batches in inventory after consumptionexpiration date of balance batches in inventory after consumption
 Calculate the inventory quantity of a batch (for all batches in
general) that will expire on the expiration date
 reduce the ‘net available material inventory’ per requirement
date, by the inventory of batches whose expiration date is less
than the requirement date of the requirement.
 The batch numbers of the expired batches and their quantities
should be displayed in the batch line (MRP Element) on the MRP
Results/Evaluation Screen and in Stock/Requirements ListsResults/Evaluation Screen and in Stock/Requirements Lists
 Material Obsolescence Reports should be based on Net Expiring Qty.
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5. IT Sapiens’ Solution Features33
 Solution Excerpts:
 For Regular Stock, Customer Stock, Subcontractor Stock, Vendor
Consignment Stock and Project Stock materials, the Solution
 dynamically takes into consideration the expiration date of
balance batches in inventory after consumption
 Calculates the inventory quantity of a batch that will expire on they q y p
expiration date
 Reduces the ‘net available material inventory’ per requirement
date by the inventory of batches whose expiration date is lessdate, by the inventory of batches whose expiration date is less
than the requirement date of the requirement
 Expiring Batch numbers and their quantities are displayed in the batch
line (MRP Element) on the MRP Results/Evaluation Screen and the
Stock/Requirements List Screen
 Stock/Reqts List shows expiring batches even for Materials planned by
APO/SCM or external systems, e.g. Manugistics, Logility, etc
 Functionality includes Materials planned by “Re-order Point Planning’ too
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6. IT Sapiens’ Solution Features33
 Solution Excerpts:
 Functionality works with and without MRP Areas too
 Note: MRP Areas are mandatory for Storage Location level planning in
S/4 HANA
 Ability to run On-Demand MRP/MPS Runs “WITH Shelf Life Expiration
Date Planning (SLED)” and “WITHOUT Shelf Life Expiration Date PlanningDate Planning (SLED) and WITHOUT Shelf Life Expiration Date Planning
(SLED)”
 Functionality can be activated by Plant and in combination with any other
d li itdelimiters
 e.g. Plant, Material Type, Division
 e.g. Plant, Material Type, Material Group
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7. IT Sapiens’ Solution Features33
 Solution Excerpts:
 Scope of SAP S/4 HANA Transactions that the Solution works with is:
 MD01 – Total planning (Online) (MRP)
 MD02 – Single Item, Multi-level (MRP)
 MD03 – Single-Item, Single-Level (MRP)
 MD04 & MD07 – Stock/Requirements List
 MD05 & MD06– Individual and Collective Display of MRP List
 MD41 – Single Item Multi-level MPS
 MD42 – Single Item Single Level (MPS)
 MD43 – Single Item Interactive (MPS)
 MD50 – Single Item –Sales Order – (MRP)
 MDBT – Total planning (Background) (MRP)
 MDBS – Total planning (Background) (MPS)
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8. Solution Demo – Material Batch Stock44
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9. Solution Demo –Stock/Requirements List44
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10. Solution Demo – MRP Run44
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11. Solution Demo – MRP Run Results44
Regular Stock “Net Qty” of
Expiring Batches shown
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12. Solution Demo – MRP Evaluation List44
Regular Stock Expiring
Batches shownRegular Stock “Net Qty” of
Expiring Batches shown
Customer Stock segment
Expiring Batch shown
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13. Solution Demo – Stock/Requirements List44
Ability to run MRP:y
• with SLED Plng. OR
• without SLED Plng.
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14. Solution Demo – Material Obsolescence Report44
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15. Solution Demo – Material Obsolescence Report44
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16. Solution Merits55
 “Batch Expiration Date Mgmt in Classic MRP/MPS” Merits:
 Real time net requirements planning taking into consideration Batch
expiration date / last ship date / next inspection date or any other date fromp p p y
the 6 additional Batch dates
 Classic SAP MRP/MPS configuration and master data leveraged
 Scalable to factor any ‘Batch characteristic’ driven Batch Inventory Scalable to factor any Batch characteristic driven Batch Inventory
consideration, e.g. Potency, Batch Statuses, Batch Usage decision,
Quality score, etc.
R li MRP ti i Pl d O d P h R Reliance on MRP suggestions viz. Planned Orders, Purchase Reqn,
instead of Custom “Point-in-time” reports
 Real time visibility of ‘Discounted Batch Inventory’ in MRP Lists,
Stock/Requirements List. Accurate Material Obsolescence Projections.
 Functionality can be activated/de-activated per Plant or any other
combinations of delimiters
 Functionality works with and without MRP Areas too
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17. Our Value Proposition66
 Reduced TCO, Highest First Pass Yield and Highest Quality from:
 Strong expertise in providing end-to-end Supply Chain Solutions
 Strong Expertise implementing SAP, enriching Business processes and
alleviating GAPs in SAP, for Life Sciences, Consumer Products, Food and
Beverage, Chemical and High-Tech Industry segments
 Experienced in Implementing cGMP compliant SAP Solutions for Regulated
Environments
 Very experienced consulting resource base with 15+ years experience and
deep cross-functional expertise
 Rich Knowledge base of custom solutions to address GAPs in most SAP
applications
 Ability to demonstrate end-state on Day 1 using in-house SAP Systems rich with:
 Pre-configured Solutions
 demo-able SAP Functionality
 Demo-able IT Sapiens custom solutions
 Framework to develop strawman solutions
 Our “Say-To Do” Ratio is 1:1
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18. Questions ?77
 For more information…kindly contact
Vijay Pisipaty
Director-ERP Solutions & Consulting
IT Sapiens, Inc.
e-mail: vijay.pisipaty@itsapiens.com
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