Automated Replenishment in S/4 HANA

Automated inventory replenishment refers to the process of automatically replenishing inventory levels when they fall below a predetermined threshold. 

SAP S/4 HANA offers several automated inventory replenishment methods to ensure that inventory levels are always maintained at optimal levels, reducing the risk of stockouts, and overstocking.

Some of the key features of Automated Replenishment in SAP S/4 HANA are:

• Reorder point planning: With this method, a reorder point is set for each item, and when inventory levels fall below the reorder point, a replenishment order is automatically created.
  
  
• Forecast-based planning: This method uses historical sales data and demand forecasts to determine when to replenish inventory. The system uses statistical algorithms to predict demand and automatically creates replenishment orders.
  
  
• Material requirements planning (MRP): This method uses information from sales orders, production orders, and inventory levels to determine when to replenish inventory. The system generates planned orders and purchase requisitions to ensure that the right materials are available at the right time.
  
  
• Consignment inventory: With this method, the supplier maintains ownership of the inventory until it is sold. The supplier monitors inventory levels and automatically replenishes inventory as needed.
  
  
• Vendor-managed inventory (VMI): With VMI, the supplier is responsible for monitoring inventory levels and replenishing inventory as needed. The supplier has access to real-time inventory data and can automatically create replenishment orders.

What benefits does Automated Replenishment in SAP S/4 HANA provide to the organisation?

• Reduced inventory costs: Automated inventory replenishment helps to ensure that inventory levels are maintained at optimal levels, reducing the risk of overstocking and stockouts. This can lead to significant cost savings by reducing carrying costs and minimising lost sales.
  
  
• Improved inventory accuracy: Automated inventory replenishment ensures that inventory levels are always up-to-date and accurate. This helps to reduce errors and improve inventory management processes.
  
  
• Faster order fulfilment: By automatically replenishing inventory levels, organisations can fulfil orders faster, improving customer satisfaction and reducing the risk of lost sales.
  
  
• Better planning: Automated inventory replenishment provides organisations with real-time inventory data that can be used to improve forecasting and planning. This helps organisations to make informed decisions about inventory levels and orders.

With the help of FusionGraph it's easy to discover and understand new functionality like this and add it to your business case for S/4HANA migration. 

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