Issue

Syensqo currently uses SAP functionalities in ECC to cover HSE requirements relating to Safety Datasheets,  Labelling, Dangerous Goods Management, Substance Volume Tracking and Compositions.  These SAP functionalities are covered by SAP Product Compliance with S/4 HANA.

S/4HANA offers the option to implement a 'Classic Version' or a 'New Version' for SAP Product Compliance. A decision is required, which version of S/4HANA Product Compliance (New or Classic) should be implemented considering scope and timelines.  

Recommendation

The recommendation is to implement the S/4HANA for Product Compliance 'Classic Version' (Option 2).

This is partially driven by the following key points:

• S/4HANA Product Compliance 'New Version' (Option 1) is only available for implementation in the S/4HANA 2023 product, however will only attain its full functionality from 2027 onwards. Until then, the new version will have significant functionality gaps as compared to the 'classic version'. 
• Remaining with ECC 'On Premise' would mean a very restrictive longevity and poses a major draw back on integration with other core functions such as Logistics, Transportation Management, Product Master etc.  It should be ruled out on the basis of S/4HANA adoption being the core of ERP Rebuild.  Further, the feasibility to maintain an ECC6 stack for this option would be question.  Hence the continuation with ECC6 (Option 3) is not viable.

It needs to be highlighted that a decision for 'Classic Version' requires a new re-implementation project before the end of support of the 'classic version' is reached in 2036. This would effectively be a greenfield implementation of Product Compliance as the data models are not compatible. 

Background & Context

S/4 HANA for Product Compliance includes the following components (upon full scope availability):

1. Dangerous Goods (DG) Management including:
   1. Regulatory/country specific data management 
   2. DG classification
   3. DG checks
   4. DG data integration for outputs and EDI
2. Product Marketability and Compliance including:
   1. Composition management
   2. Product Master integration
   3. Checks incl. marketability, supplier material
   4. Substance Volume Tracking (SVT)
3. Safety Datasheet SDS and Label Management including:
   1. SDS/label generation for country specific requirements
   2. SDS check integration with logistics processes
   3. Automated and manual SDS shipments

The SAP strategy is focused on the complete renewal of Product Compliance in SAP S/4HANA.  At a high level S/4 HANA for Product Compliance offers two sets of capabilities in Private Cloud.  

1. Classic Version - existing capabilities.
2. New Version - new capabilities.

The database model and code is very different between 'Classic Version' and 'New Version'.  The 'Classic Version' continues to use the Specification Database Workbench, the same as ECC6.0.  The 'New Version' uses a CDS-based data model (SAP Core Data Services) and a new process model.  SAP CDS is an infrastructure for data modelling that enables data models to be defined and consumed on the database server rather than the application server.  A full-on migration/re-implementation is needed to transition between 'Classic Version' and New Version.

Assumptions

It is assumed that:

• S/4HANA Product Compliance 'Classic Version' includes all capabilities required by Syensqo.  SAP currently states that almost all features of SAP Product Safety and SAP Product and REACH Compliance are available.  It is currently unknown, which features are not available in the 'Classic Version' (see 'Contraints').
• Any impacts of this KDD on other ERP Rebuild EHS KDDs will be managed via the subsequent KDDs of the relevant ERP Rebuild EHS components.
• ERP Rebuild does not end up with an unsupported platform following platform license negotiations and that a supported version of S/4 will be the core platform (see related KDD in 'References').
• S/4HANA Product Compliance 'Classic Version' is contained EML in as per SAP 'CAL EML Getting Started Guide v2' for SAP S4HANA Cloud Private Edition 2023 (added to references).  Whilst not specified as 'Classic Version' it is assumed to be compatible.  
• Benefits of implementing 'Classic Version' before 'New Version' outweigh cost implications (Option 2) compared to cost implications of adapting ECC 6.0 for EHS to continue until 'New Version' with full scope is implemented before 2030 (Option 3). TBC SAP

Constraints

1. S/4 SAP EHS does not offer different sets of capabilities in Private Cloud.  S/4 HANA EHS includes the following components:
   • Emissions Management
   • Waste Management
   • Incident Management
   • Industrial Hygiene
   • Occupational Health
2. A decision for 'Classic Version' needs to consider that a reimplementation of Product Compliance will be required before 2036 for a greenfield implementation of 'New Version' for S/4 HANA Product Compliance.
3. SAP have not been able to provide clear guidance on the roadmap and alignment of features for Syensqo purposes at the time of writing.
4. To be confirmed by SAP which features are not included in SAP scope for 'Classic Version'.

Impacts

• A migration or re-implementation project will be required to move to the 'New Version' of Product Compliance after it attains feature parity with the 'Classic' solution (currently planned for 2027), and before it goes out of SAP Support in 2036. Due to the significant data model differences, this will be a considerable project and not a straightforward technical upgrade. 
• All capabilities of business area "Product Compliance" are available in S/4HANA, the exact scope may vary compared to the ECC-based products.  Options are:
  • Licensed "SAP S/4HANA" and "SAP S/4HANA for Product Compliance": choice to either use the so-called "classic functionality" or the "new functionality". 
  • Subscribed to "SAP S/4HANA Cloud, private edition" and "SAP S/4HANA Cloud for product compliance, private edition": choice to either use the "classic functionality" or the "new functionality". 
  • Subscribed to "SAP S/4HANA Cloud, public edition" and "SAP S/4HANA Cloud for product compliance, public edition": the Product Compliance "new functionality" can be used.

Business Rules

Decision for 'Classic Version' is expected to result in limited investment in change of scope in the time between the implementation of the 'Classic Version' and the greenfield implementation of the 'New Version' for Product Compliance.

Options considered

Option 1: New Version

• New process model, SAP Fiori apps.
• New data model, CDS-based.
• New integration into product master, sales, delivery, procurement, transportation.
• No full scope yet, innovation roadmap.
• Available from 2027 with limited scope only with S/4 HANA 2023.  Full scope available with S/4 HANA 2027.

Option 2: Classic Version

• All features of the SAP ERP based product safety and product compliance solutions
• SAP GUI and Web Dynpro transactions
• Specification database, workbench approach
• Full scope, no functional enhancements.
• Available now.
• SAP standard maintenance available 2029 to 2036.
• Requires new project for greenfield implementation of Product Compliance between 2027 and 2036.

Option 3: Continue with ECC 6.0 'On premise'

• Option to continue with SAP ECC 6.0 'on premise', supported until the end of 2027. 
• Post 2027 extended support from SAP is available, which is chargeable.
• Assumes continuation of  As Is on ECC 6.0 'On premise' systems.  
• Requires new project for greenfield implementation of Product Compliance between 2027 and 2030.

Evaluation

An evaluation overview based on the detailed Pros and Cons for each capability in the subsequent table further clarify the reasoning behind the recommendation.

See also

SAP Notes:

• 3015382 - Product Compliance: Strategy and Roadmap Overview
• 2269324 - Compatibility Scope Matrix for SAP S/4 HANA

Further SAP related documentation:

KDDs:

• S/4 HANA 'Private vs Public Cloud'

• KDD001 - Permit to Work

Change log

Workflow history