Issue

Currently Syensqo has multiple SAP systems (WPX, WP1 and PF1) and a single material can be represented in different systems with a different Material Master number. 

Recommendation

Syensqo's all materials (finished, semi-finished and raw materials) will be represented by a unique material master number which will be assigned from a new number range. For ease of search, the newly created material number will have the reference to the old material numbers.

Background & Context

Currently Syensqo has multiple SAP systems (WPX, WP1 and PF1) and a single material can be represented in different systems with a different Material Master number. 

Assumptions

N/A

Constraints

N/A

Impacts

Legacy Data – Master data

All dependent master data ex: BOM's etc.. will be updated with the new material numbers. 

Legacy Data – Transactions

Any historical data that is migrated to the new S/4 system will be updated with the new material numbers

Any catalogs (internal / 3rd party hosted on Ariba network) will be updated with the new material numbers

Legacy Data – Interfaces

Mappings to the customer / vendor material numbers will be updated with the new material numbers

Stock Valuation 

There might be an impact on the stock valuation when there is de-duplication of materials with different valuations

Downstream systems

Any downstream system using the material master numbers will be updated with the new material numbers or by creating a mapping table with the old and new material numbers

Change Management

Training material will describe how the users can search and find the material using the old material number

Communication

Communication will be sent to customers / vendors / 3rd party system owners using material master number 

Business Rules

Material master number will be internally assigned by the system with no intelligence

Options considered

Option 1 – Do not change the legacy material numbers 

Materials from the legacy systems are copied into the new S/4 system without de-duplication. 

Advantages:

• No impact on legacy data
• No impact on vendors and customers as material numbers don’t change

Disadvantages:

• Significant duplication of material masters
• No global view of material data
• Sub optimal supply chain planning
• Incorrect inventory levels
• Incorrect reporting

Option 2 – Create all valid Material Masters with new number ranges

As a part of this option, the material masters are de-duplicated, and one material master is created per valid material. The material numbers are automatically assigned by the system and are sequential with no intelligence.  

• Clean set of de-duplicated material masters
• Optimal supply chain planning
• Correct inventory level across the globe
• Correct reporting

Disadvantages:

• Additional one-time effort for de-duplication 
• Additional one-time effort by the downstream system to adopt the new material master numbers or to incorporate a mapping table between old and new numbers

Evaluation

Based on the evaluation of the options, it is recommended that Syensqo should choose option 2 and align the material master numbering to a single standard in the new system and also align the master and transactional data brought across to the new standard to ensure accurate reporting and information in the new system. It should also work with customers and vendors to have them also use the new single material master numbers.

For simplicity the numbering scheme should be a sequential number range with no intelligence, potentially with differing number ranges split by material type. 

Factor	Option 1 - Do not change the legacy material numbers	Option 2 - Create all valid Material Masters with new number ranges
Alignment with project charter - Standardization and Simplification
Operational Efficiency
Reporting
Change Impact
Integration Impact
Unified global standard view and approach	No standard	New and globally used standard
Clear consistent approach and messaging	No changes to any material numbers	All Material Numbers change
Effort to change Legacy master and transaction data	No changes to legacy data as numbers dont change	Significant effort to change to legacy data
Unified global standard view and approach	No standard	New and globally used standard
Removal of Duplicates	Duplicates copied over	Duplicates removed

Next Steps

• Work with the business to identify true real-world materials with multiple numbers across the system
• Work with data team to determine the amount of effort required to realign any legacy master and transaction data to this new standard

The business benefits of aligning material numbers

Historically Syensqo has let plants maintain their own Material Master data across three different systems. This means that while Syensqo may use the same real-world physical materials across the world, a single materials may have been created under different material master numbers in each system which has made it hard to get a global view of the usage and availability of the same material.

The need to align as part of the new ERP Rebuild system

Implementing S4 HANA as a single entity means that the same real-world materials which had different numbers in the old systems now have to be aligned to the same number in the new system.

See also

Change log

Workflow history