S/4 HANA – International Trade vs SAP GTS

Hello and welcome to the Kryp session. SAP S/4, HANA International Trade versus SAP , global Trade Services Solution. Comparison for similarities and differences in the espresso tutorial GTS event about Kryp A leading firm in implementing SAP Global Trade Services, digital supply chain solutions, artificial intelligence and integrations in trade and logistics. We are headquartered in San Jose, California. We have talent hubs in Canada, Netherlands, Germany, uk, Ireland, Australia, India and China, around 250 consultants globally. We advise clients on strategy design, process creation, return on investment analysis in the modules of supply chain and global trade. And we successfully implement global and local SAP GTS solutions across different industries.

Crip and our co-founders have authored 10 global trade and logistics books in tutorial SAP press and other print meeting. Overall, we are very focused in a boutique firm in the area of S A P Global Trade Services. We focus on SAP, transportation Management and LBN. We focus on s a p supply chain planning solution like I B P, warehouse Management Solution, EWM and WM. We do have lean teams who support ECC and S/4 Hana a m sfor few of our clients. Again, as a boutique firm, we are focused heavily towards the innovation. We work on artificial intelligence solutions that pertain to supply chain and global trade, uh, problems. We work in integrating different solutions in these areas and which are hard to connect in different ecosystems. Our team heavily focuses on solution developments to the challenges that our clients are bringing in, and we focus on the forward-looking technologies like blockchain as well.

Overall, we are a customer first organization. We want to ensure all of our customers are successful in the areas they hire us to do the work. Little bit about, uh, myself. So I am an expert in all areas of SAP global trade services and related integrations. supply chain and global trade. Also, I'm an author of SAP press book, introducing SAP Global Trade Services Addition for SAP Hana being speaker at various conferences like SAP Sapphire, multiple, SAPinsiders, ICPA conference on various subjects around implementing SAP, global trade services, global trade supply chain and artificial intelligence. How does the newer technology work where in solving the problems of global trade and supply chain. Also, I'm an S A P certified professional in number of different areas, transportation management, extended warehouse management, S/4 HANA sales and activate methodology. Along with that, I'm a certified scrum master, heavily focused on bringing solutions to our customers in an agile form. And in today's session, what are we covering? So at the start of it, we'll look at what are the key outcomes that we need from the session. I'll also give you an overview of SAP Global Trade Services addition for S/4HANA. Along with that, then we move into the overview of the SAP S/4 HANA international trade.

Then we will look at how these two solutions are similar in which respect, which functionalities they are similar. Then once we do that comparison move on, we move on to the differences in these two solutions. And, and then we will look at it, what are the available resources that are available for the consultants, for the business communities, for the business analysts, as well as technical and functional folks in the area of global trade services and international trade. At the end, we look at the key takeaways of this session and open up for any q and a that comes along, key outcomes. So what are we looking at from today's session? So we want to learn more about SAP solution, global trade services, and how does it, uh, meet your current and future trade needs worldwide.

And then we, we will also look at it, what will the solution SAP for HANA international trade do for your organization? And then we look at when to implement one solution or the other and provide you the resources to deep dive in each solution area, whichever one that you choose to implement in your organization. Now here's what the, the tool SAP GTS edition for HANA looks like.

So what are the key areas we cover from left over to the right. So at the top of it or the heart of this S A P G T S solution is compliant. So we are looking at restricted party screening. People call it as a denied party screening or sanctioned party screening as well. So, which is the purpose of this is to ensure proper screening of restricted or denied parties. Uh, and then we are going to block and release the transactions, uh, from the system itself. If they are denied parties, it also encompasses embargo screening. It is also going to encompass, uh, license management solution as well. Then we move into the export management area. So it is going to look at managing the export compliance. So we are going to look at classifying your products as well, that you are going to going to need one from an export control perspective. Once you try to clear your goods out, uh, take your goods out of one country and send it to another, then this solution or that this area has different services. You can take a PDF print, uh, out of it, send it for the custom clearance. You can also self file it right from the tool itself, so you don't have to go anywhere else from your export filing perspective. And on top of it, you can also send the information to your broker so that they could file on your behalf for anything related to an export for a particular country set of country globally. Then from export management, we move into the import management side of it, the global trade, uh, SAP GTS tool, it'll effectively help you manage your import compliance classification of your products for imports.

That's going to be your harmonized tariff code for the US or harmonized code codes for other countries. And then along with that, we will be able to cell file from the GTS environment to different customs authorities Across the, across the globe, there are a number of different countries that are certified, uh, from a filing perspective from the GTS tool that comes out of the box and for those countries, which, uh, does not allow you to directly connect to their environment or SAP GTS is not certified for.

So there is a global broker enablement solution with which you can send all of that information over to your brokers for the import filing perspective. Along with that, SAP gives you an option to build those self-filing connectors, uh, with the countries where it is not supported right now. That's, that's, that's the level of flexibility you get with an SAP GTS through. Then we move from the import management over to the trade, uh, trade preference in this particular area, you can leverage any free date agreement that is available in the world with which you, uh, which your organization is leveraging to reduce the impact of the duties. We can, uh, issue, uh, uh, C LT vds. That's going to be, that's going to go to your, uh, customers. We will be able to send solicitations to your vendors to get information on the particular agreement, whether the goods will qualify for that agreement or not. And then you can also run preference determination within the GTS the environment to see whether based on the inputs that you have received from different vendors or the goods that you are producing in-house as well.

So based on the whole bill of material, what's the, whether this particular finished code or semi-finished codes will, is going to qualify for a certain agreement or not, like USMCA. Then moving on from the trade preference area.

So there are a lot of other areas where SAP GTS supports in the global trade running the global trade, uh, in the organization, like one of that is U S F T Z or China processing trades. We are also looking at bonded warehouse inward and outward processing relief in the EU or supporting the intra set declaration in eu. Then excise movement and control system, uh, E M C S, uh, from an EU perspective, there are other areas where GTS is going to support, uh, support your global trade as well. If those are not available out of the box, you can build it in in the system itself. That's how the flexible SAP has made this GTS system.

Now going from the, and, and this particular tool is SAP's forward-looking tool to meet all the trade compliance regulatory needs of, of the customers, along with providing them a one stop shop to do all of their export filings, to do all of their import uh, filings that have been done and stored in, in, in a particular tool. Again, this is a main tool from an SAP perspective to look at, uh, to leverage all the free trade agreements to remove or reduce, uh, the duties that organizations are paying along with the global tool for managing the, uh, the, the free trade zone or the foreign trade zone bonded warehouse where you can avoid the duties altogether. And with this, let's look at what is there in the SAP S/4 HANA international trade module. So, so again, this module resides in SAP S/4 hana, a bigger solution.

So now it has three different areas or distinct areas where this solution works. And this is also a replacement of former SAP, ECC foreign trade module. Now with that module has been replaced in SS four HANA with an international trade model. Now let's look at on the left hand side. So first start with the classification. So, so this particular module supports all the classification needs of an organization globally. You can have harmonized tariff codes, commodity codes, interest at service code control group, uh, ex, uh, control class or control group, like export control classification number, or the ECN numbers that are required from an export perspective. From classification. Let's move over to the compliance. Now, within that, within this module, we could use this to leverage legal control.

That's license management. You can control all of your, uh, licenses. You can maintain the licenses from the, in the, in, in the S/4 module and then look at the compliance. So you are not shipping any goods which require a license. And then system is asking you to maintain that information and is going to put a block if that information is not yet. Also, it is, uh, it is going to put embargoes if you're trying to ship to countries like Iran or that are on the, the embargo list shared by the UN or the embargo list that is being followed by your organization. Along with that, it also can do a denied party list screening with a watch list, uh, integration with this tool. So there is no inherent capability of doing it in night party list screening in the international trade, but it connects to, uh, a, a cloud, uh, SAP's cloud tool. That's watch list. Uh, and then you can do the screening. Then from the second tenant, we move into the third one in, in this overview. So that's the interest. A, so this solution helps you manage all of your interest declaration for the eu, any associated master data that is required. So this tool is going to support. So looking at it, so there are three key areas, classification, compliance, and interest add. There are available in the intra international, uh, trade solution in SS four. Now, moving on, what are the similarities in two solutions? So one by one. So let's look at the top. So, so we touched on product classification. Again, this is the core competency of international trade modules. You could have harmonized status codes or U S H D S or the harmonized status codes for other countries commodity codes, uh, like US Schedule B or the commodity codes in other countries as well. So these are, they are available in international trade and they are supported by SAP GTS edition for SAP ha. Then we are looking at control class. It's, uh, it's nothing but an E C N export control number or export control classification number for the s So both are supported or the DUNS list. Both are supported in, in both the solution. Then you move on to the license management or the legal control. So any export licenses that you will require or import permitted that you require to bring in the goods in your country or ship out the goods from your country to a destination country. So both solutions are going to support, uh, and provide the co comparable compatible solution to address that. And then you're looking at embargo screening. So if you are trying to ship goods to a country that's on the embargoes, so you're not supposed to do business overarchingly for that particular country. Both solutions supports, uh, supports it and it allows you, uh, the flexibility to make and select those country and maintain it, uh, yourself going forward. Forward. And then we moving into interest side declaration. So the Raad declaration used to be supported by ECCs foreign trade module. Now it is supported in SS a P S four HANA International Trade, and GTS supports that module as well where you can file to the customs authorities, you can get all the data from an EU perspective and send it, uh, for the file. And then we'll be moving on the user interface. So the user interface for SAP S/4 HANA is Fiori, and that has been extended to the international trade as well. From a user perspective. They will be able to access this application on the browser that is supported by their company. That could be edge browser. Then you're looking at Chrome, Firefox and, and the browser supported by, by the company from a security policy perspective. Now, the similar is true for SAP GTS edition for SAP HANA as well. Then from a user standpoint, the UI is going to be Fiori based. So you no longer require a go to access, both the, both the solution and at the bottom of it the platform. So both solutions are built on SAP's newer database, that's the HANA database and the PLA platform, both the, both the systems. So if you look at it from a similarities perspective, again, there are teams that are supported by both the solutions. One is going to be product classification and compliance. That includes legal control, embargo and entrusted declaration. And both solutions are built on SAP's UI that is the Fiori. And both solutions are based on the backend platform. That is as also SAP's, uh, forward-looking solution that that's s for that is the DB and the platform. Now moving on, how these two solutions are different. So let's start with denied party delay screening. So to do the denied party delay screening in international trade, there is no such function where you can utilize and do the denied particular screening. However, SAP has provided a cloud-based solution, that's a watch list screening. You can integrate SAP S/4 HANA international trade and be able to still screen your customers, your vendors and the transactions that are going out there are sales orders, deliveries and purchase orders. And now if you look at the SS A P G T S edition for SS A P hana, the denied party list screening or the restricted party list screening or sanctioned party list screening comes out of the box. And this is where the main difference, the first main difference is that, in both the solutions that one does not support out of the box. You have to get a cloud solution to do the, uh, denied party delay screening. However, uh, the international trade, uh, which is integrating with watchlist screening does not provide you all bells and whistles. So if you want a highly customized algorithm that is going to adapt to your organizational need, you will necessarily need to have SAP GTS for SAP HANA for your denied party list, uh, screening needs because on the ley screening, the the content provider is fixed, the list that could be loaded is fixed on the G T S side of it. You can essentially create your own list. You could select different provider from which you can buy the list from a screening perspective, and that could be the FBI list. That could be anti-money laundering list. That could be the GSA list. All of those could be loaded in the GTS. Now if you look at it on the other areas that we, we have now all the areas like export management where you will be able to get all the documentation out to send it along with the package. When we are clearing the customs or self filing with customs, you want to do a broker filing, send the information to your broker for all the export so that all the freight forwarder so that they could help you clear, uh, when the shipment is going out from a country A to country B or you're looking at now the import management piece of it where you want to, uh, you want to self file it yourself, the imports that are coming in, or you want to leverage your broker, send the information to the broker and have them file it for you. Or you're looking at free trade agreements. So U S M C A EU agreements, you are looking at kafta or other agreements across the board. Now that is also only supported by SAP GTS. So international trade, there is no such function in international trade that can do FDAs for you. Import and export management, cell filing or broker filing. If you have, uh, if you are using le if you're leveraging, uh, some of the key items that's like US F T Z or you're looking at bonded warehouse. So here you are going in deep into the trade needs that most complex organizations have. Or you're looking at special procedures like, hey, you want to leverage China processing trade. You have I P R, you want to use, uh, P U C C, you have O P R, uh, in your landscape and you want to avoid those duties or you want to make sure that you could park these aside and then only pay them if you import goods in that particular country. So all of these items in the global trade that are highly complex, so those are only supported in SAP GTS, none of them are supported in international trade. So the major difference here in both the solutions are going to come in. If you have, uh, the, your global trade needs that are restricted only to compliance and product classification along with intra act, then the international trade solution works well. However, if you start moving beyond that part, if you want to leverage a solution to do the export management for you, if you want to leverage the solution to do the uh, uh, import and export management or leveraging free trade agreements, you want to avoid paying duties and have those solution implemented in a trade solution, then G T s is the tool that is right for you. After we look at the differences. Now let's look at different resources that are available for you online. So I wanted to highlight the most recent book that came out from SAPpress that talks about SAP GTS edition for SAP hana. That is available on website. Then espresso tutorials have lot of content and book books on the GTS 11.0, if you have GTS 10.1, you can go to the uh, espresso tutorial website. This is the link and you can order the book on the compliance or the customs or F T Z or F D A depending upon which area that you want to focus on. Also from Crip, we have lot of content for you that talks about SAP GTS edition for S A P hana, what to expect in this version, how, what is the future of this version and how GTS edition for HANA is different from G TS 11.0 or 10.1 depending upon which version you have. Also, we do have a few white papers on on this topic that specifically talk about giving you in-depth information on SAP S/4HANA international trade and how Sap S/4 HANA international trade is different from GTS. Those white papers are available on our KRYP website and at the, at the bottom of it, there's lot of information that is available on help.sap.com. So I've included two links where you can go in and get the administrative guide, you can get the security guide, you can get, information about the solution in general and then do a little bit more deep dive and get information what you're looking for. So all of those resources available content is out there that you can either buy if those are books or you can access it on the SAP website. Now, moving on from the resources and let's look at what are our key takeaways from this session. So the key takeaway, I think the first one I want to, make it across SAP GTS or SAP Global Trade Services is still the primary global trade management solution from GTS. So this is been around for almost 20 years and s a p continue to make investment in this solution. So this is going to be and is a primary global trade management solution for sap. Now again, SAP GTS is a global true tool that supports all the functions of trade globally. So it helps you self file with the countries where it is certified in case it is not certified. You can send information via brokers and have them, self have them file it on your behalf or you utilize it for F FDAs FTZ bonded warehouse. So it's still a global tool could be utilized across the board in different continents. So some of our customers are using it in North America, Latin America, Europe, Asia pac, then a N Z Re region, and some of our large customers, they are using this tool globally, not only for compliance but for export, import management, freed agreements and duty avoidance and saving programs as well. Then S/4 hana international trade, this is the replacement of former ECC foreign trade module. So if you are using ECCs foreign trade module, this is what the new replacement is and the screens would have changed, some of the tables have changed, but then from a functionality perspective, it still retains a functionality that was available in the foreign trade model. And also SAP international trade has a limited trade management function as we looked at it earlier. It only categorizes in three areas, classification and then compliance and interest that reports. And at the end of it, I wanna let you know there's plenty of documentation available on both the releases on help.sap.com that comes out directly from the source and from a Crip perspective. We have lot of books that are available that gives you an overview of SAP GTS edition for S A P Hana or go deep dive into different areas like, denied party risk screening, export management, import management, free date agreements, and F T Z and bonded.