SAP HANA for Semiconductor Industry
Driving Efficiency in Semiconductor Manufacturing with SAP HANA
In the semiconductor industry, characterized by rapid changes and fierce competition, companies continually seek innovative solutions to streamline operations, boost efficiency, and maintain a competitive edge. Managing complex supply chains and production processes presents a significant challenge for semiconductor companies. SAP HANA plays a crucial role in addressing these challenges by offering real-time visibility into inventory levels, production schedules, and supplier relationships, thereby enabling companies to optimize procurement processes, reduce inventory costs, and ensure timely product delivery to customers.
Let’s delve into how SAP HANA ERP benefits the Semiconductor Industry:
Order to Cash
The entire flow, from Order Management to procurement based on Sales Orders, Credit Management, order fulfillment, shipping, AR Customer Invoicing, and Incoming Payment, is streamlined with SAP HANA. MIS Reports aid in running the business in a controlled manner. Customer Item Code stored as BP Catalog Number item-wise facilitates faster processing and tracking. Sales BOM solution is utilized for scenarios where accessories are procured as separate item codes but delivered to customers as a single item. Backorder reports offer a detailed view of achieving faster order processing in the Semiconductor Industry.
Procure to Pay
Purchase is initiated based on customer orders, generating SO and PO directly through the procurement wizard function. Goods receipt against Purchase Orders is allocated batch-wise in the store’s inventory. Accounts then create payable invoices, followed by outgoing payments. Vendor item codes are maintained by BP Catalog number. Purchase analysis, pricelist management, approval for price changes, and price change reports provide desired control, minimizing errors.
Sales Order (SO)
SO creation follows PO generation or confirmation of a quotation by the customer. Utilizing DMS, a softcopy of the PO is attached. Payment terms and delivery dates are auto-fetched from customer master data, with committed/credit limit management restricting further PO orders by salesmen.
Sales Quote
SAP HANA generates sales quotations for the Semiconductor industry, automatically populating ‘Ship to’ and ‘Bill to’ fields from Business Partner Master Data. Contact persons, accounting details, and payment terms are also auto-populated. The soft copy is directly emailed to Semiconductor Industry customers from SAP HANA Software.
MRP
Material Requirements Planning (MRP) generates purchase requests or direct POs for preferred suppliers daily, weekly, or monthly based on Sales Orders.
Purchase Request
MRP auto-creates PRs, supplemented by manual department-wise PR creation for office equipment, consumables, etc., against which POs are generated.
Purchase Order
POs are order-wise created using the procurement wizard, with PDFs emailed directly to vendors from SAP HANA. Various engineering data stored in the item master is auto-fetched, reducing errors. Order-wise PO reports provide detailed records and control.
GRPO
Goods receipt against PO is posted based on vendor deliveries, with serial numbers allocated to each item quantity, debiting inventory.
Supplier Payment
AP invoices are added against GRPO for outgoing payments.
Production
The sales BOM function is utilized.
Invoice
Accounts Payable/Receivable invoices are created, and payment entries are posted, ensuring proper control through an open document system.
Service
Efficient management of after-sales for each serial item is facilitated in SAP HANA.
These are some ways SAP HANA benefits the Semiconductor Industry, enhancing operational efficiency and overall performance.
To learn more about our SAP services and solutions, visit us at: https://emerging-alliance.net/
