What is New in SAP Global Trade Services, edition for SAP HANA

My name is Linda McKee and I'm the solution manager for SAP's Portfolio of International Trade Management Solutions. The focus for today will be on SAP Global Trade Services Edition for HANA 2023. As with any of our presentations which share roadmap information, there's always this disclaimer.

The roadmap represents current plans and should not be considered a commitment. So just what is SAP's international trade portfolio of solutions?

Our flagship solution is SAP Global Trade Services available in the cloud or on premise. It can support your business strategy with market leading global trade capabilities. It can meet the full scope of functional requirements with processes that drive consistency across the business while having the flexibility to meet country specific needs. In SAP S/4 HANA itself, there's a module called international Trade, and whether cloud or on-premise, there are capabilities to support legal controls required for import export activities. Rasta needs across Europe and product classification to support these processes. With prebuilt integration to GTS for HANA customers also have streamlined access to those broader capabilities that are found in GTS. And when S/4 HANA customers are looking for a simplified screening capability, they can have access to SAP watch list screening, which is a lower cost monthly subscription. When you think about your international trade processes, we really consider three key areas or key business drivers, um, to really be successful, one obviously is always to protect. You really want to manage or mitigate any risks associated with your international trade through providing a strong compliance capability, you also have a need to streamline and assure that your supply chain is as resilient as possible so that you can reduce delays and automate as many of the time consuming processes as possible. And then there's also the opportunity to expand, to really drive improvements in your market position. Take advantage of things like free trade agreements and duty deferrals and exceptions.

We always like to highlight our long history, uh, within SAP with our Global Trade Services solution.

You may have also heard us strongly encouraging you if you're currently on a GTS 11 or even earlier version, uh, to, to really start making that move to the GTS edition for hana. One of the main reasons being that GTS 11 will run out of mainstream maintenance at the end of 2025, so it really is time to start planning for that move. That's not the whole reason to move to GTS edition for hana. I'll share many of the functional improvements we've made, but we really do want you to future proof your GTS solution and get on that going forward platform, which is GTS edition for hana. Here we highlight the changes that you get with the GTS edition for hana.

Since GTS 11, one of the key changes, and we think a real improvement is around the new user interface that is SAP Fiori. We've also delivered enhanced performance improvement. Because this edition is available only on a hana database, we also now provide an option where GTS can be co deployed with S four hana. We do still offer GTS as a standalone implementation, but with some development changes, you do now have the option to Co-Deploy it with your S/4 HANA 2022 or later. We also provide some improved analytics, both embedded within the solution itself as well as through integration with BW four hana, as well as the SAP analytics cloud. In the area area of preference, I touched on the fact that we now provide management of preference data for product identifiers, what was previously IBPP as par part of our standard GTS edition for hana, and we also did a lot of rework in the area of the exchange of long-term supplier declarations.

We also now provide expanded capabilities around support for us partner government agency import filings. Uh, we've rounded off the intra at localization.

we have delivered as mentioned, some additional functional enhancements, and we've also expanded our localization with the customization or localization for Brazil with basic import and export filing. We've also enhanced our integration with SAP Transportation management. Let's look at a couple of those new capabilities. With the new user interface, we've replaced that easy access menu with an SAP Fiore Launchpad, it provides a user with a a very different user experience than the old Easy Access menu and gives users a lot more flexibility in creating, uh, sort of a home screen on the launchpad that really represents those parts of GTS where they focus most of their activities.

With the new Fiori UI, we also have the ability to deliver these embedded analytics. It really helps with day-to-Day work with reporting and with auditing, there's the ability, if the user prefers, they can have just the work list view, but there is now the ability to have this graphical representation of areas that may require some immediate attention. There's also the ability to drill down directly from that graphical view. The new enterprise search capabilities may initially sound like something that, oh, that's nice to have, but we have really seen users take advantage of it. Um, you're able to really restrict the search result, so you can go to a specific area, so you want to look for a specific export declaration. Um, you can go very quickly just by entering a reference number, uh, such as a sales order or an invoice, and it will quickly take, take you to the document. You also see the results of the enterprise search here, where you can click on the number and immediately go into that document, or you can select an option, sort of a little bit hard to see, but with the, for example, in blue where it says change export declaration or create an export declaration so you can very quickly access, uh, additional capabilities directly from these enterprise search results. I wanted to highlight for those of you that may have already been familiar with some of those capabilities that came with the first release of the addition for hana, this is just intended to highlight what's new in the additional innovation. We've continued with our 2023 release this year, As highlighted with our 2023 release, it's now possible to Co-Deploy GTS on top of S/4 hana. We feel it, it really is a step forward in making GTS more cost-effective to run and operate both on premise and in the cloud. So let's look at some of the pros and cons or the differences between the older standalone only version and now the option, and it is an option you're not forced to Co-Deploy, um, but there is an option with co-deployment. But when we look at standalone, what are, what are some of the advantages? Um, SAP GTS can still serve as your central global trade platform or system. Um, all of the upgrades and legal changes can be applied and, and there's very limited dependencies or impact on any of your other systems.

What are some of the cons of the standalone implementation? Um, there's the requirement that here you've got this system availability that must be managed in addition to any other systems you may have, and it may require a larger system landscape that can result in a higher total cost of ownership. When we look at co-deployment, what are some of the advantages of that kind of deployment? Um, it does provide the exact same system availability of your S/4 HANA and your GTS. So you, you require fewer systems to manage and therefore you're, you have a lower total cost of ownership compared to that hub or central system deployment. But we do want to caution, there are some cons associated with GTS Co-deployment. Any of your GTS upgrades may well have an effect on your S/4 HANA system availability. Given that S/4 HANA is often yet that core system that you're running, that's a, a consideration that really needs to be taken very seriously Also, your database size will increase, especially if you're connecting your GTS to multiple feeder systems. Here's a sort of simplified view of those pros and cons or advantages and disadvantages between the classic standalone GTS or now the new co-deployment option.

The 2023 release also provided, uh, greater support for US PGAs or those partner government agencies and your ability to file your import requirements with those agencies. On the product. There's a new section where you can maintain all of the required PGA information. There's a PGA data set that defines the information that's to be sent for a specific agency and program. While we don't deliver all that information, you now have the ability to define what information is required for each of those multiple agencies. Preference is a functional area within GTS where you have seen the most improvements with the addition for hana. The management of preference data for product identifiers, is the functionality that's now standard within GTS. Uh, that's replacing the add-on with GT GTS 11. That was called identity based Preference Processing. So what that really does is provide a, a more UL granular product identification such as a batch, um, that can be used now within your standard preference capabilities. Uh, preference determination is, is available for process and manufacturing orders, and it uses bills of material and actual consumption for your preference qualification. These product identifiers are integrated with both the long-term supplier declarations for suppliers as well as issuing to customers. And the exchange of long-term, long-term supplier declarations or L TSDs can automatically be handled between administrative use units or those organizational structures within GTS Brazil localization has been, uh, requested by customers for some time, so we're excited that we've been able to deliver basic import and export capabilities.

We do want to highlight there is a dependency between that GTS localization as well as an S/4 HANA as the backend system. Um, there's also a difference in the functionality as to whether you, you're using an S/4 HANA public or private edition for S four HANA public edition 2023. Both a basic import and export scenario are supported for S/4HANA private edition 2021 or later. Just basic export is currently available. We also are not currently providing, uh, self filing or that direct communication with Brazil customs. Um, but we do provide, um, integration with your customs broker, um, so that they can support that filing with Brazilian customs. We find the vast majority of customers, because of some of the complexity, especially in Brazil, customs brokers are heavily utilized in Brazil. One of the key reasons for this, uh, dependency between GTS in the backend S/4 HANA is the need to integrate with the, uh, not capabilities that are found within S/4 hana. There's also integration with an external tax calculation engine. Um, anyone familiar with Brazil knows the taxes in Brazil can be highly complicated. So GTS is also providing integration with that external tax calculation engine. This slide then represents the actual roadmap for GTS. Uh, this is probably what most of you attended today's call for. On the left hand side are some of those recent innovations, and most of those I've already touched on, so we'll not repeat that, but we really wanted to focus on what's planned as well as sort of a more forward looking or the future future direction for GTS one of those planned innovations, uh, which is really representing more of a near term horizon, I'd say the next 12 to 18 to 24 months. Um, one of those planned innovations is centralized clearance within the, within the European Union. Centralized clearance is what was previously known as single authorization for simplified procedures or SASP. And in a sort of summarized, uh, definition of what that is, is it allows customs declarations in one single country for your customs transactions in any member state. It also includes the accounting and payment of duties. So we really are anticipating that many customers will take advantage of that capability as it becomes available. There's also a large number of legal changes that we will continue to deliver associated with all of the numerous UCC changes, um, impacting so many European countries, uh, Belgium, Denmark, Switzerland, uh, Spain, uh, WW. But that does require a, a great deal of effort that we will continue to support and deliver. We also anticipate there are some intra stat updates that will be required, and then we're also going to support integration with the new solution and service orders that, um, are available within S/4 hana as we look forward more, again, beyond that 12 to 24 month horizon, um, and, and the future of GTS. Um, we do plan the next release of addition for hana. Uh, it will be in 2025.

We are now on a two year release cycle in that earlier slides showing sort of the history and future of GTS. You will see that we are now on that two year release cycle, um, with the 2023 release this year. One next plan for 2025, then 2027 and so forth. A real focus focus for us is extending our GTS capabilities in the cloud through integration of GTS with services that will develop on the SAP BTP or SAP business technology platform. Our intent is to really optimize the processes in GTS by extending those processes through leveraging technologies on BTP, such as AI for classification. We also intend to expand our origin management capabilities. This is something that's been requested also for some time where we currently have support for that preferential origin. We do plan to deliver support for non-preferential origin as well. On the lower part of this screen. You'll also see, uh, some of the enhancements within that S/4 for international trade capabilities. Uh, we some recent innovations including delivery of, of intra at for Malta. Um, the work done within S/4 for those solution and service order integration with GTS. Um, also embedding some of the international trade capabilities with a focus on the component manufacturer, uh, customers as well as, uh, interest add improvements within the S/4HANA for international trade as well. Um, in the future, we'll al also be expanding some of the watch list screening capabilities, uh, such as that mass master data screening that's not currently available, as well as the auditability of that watch list screening. Um, and those results that you, you don't have today. And then some ongoing intra stat improvements within that, that S/4HANA for international trade as well. of legal changes that we're seeing globally. And again, one of those examples is the unified Customs code or UCC implementation. Uh, within the European Union, virtually every member state is implementing new custom systems and with some of the current delays, the end date for some of those changes is likely to fall beyond the current support window, uh, for GTS 11. So, as touched on earlier, um, with the end of standard maintenance support for GTS 11 at the end of 2025, some of these UCC legal changes will not be, uh, back ported to GTS 11. So again, we continue to urge you to really look, um, at planning if you haven't already started to move to the GTS edition for hana. So you can be assured of receiving, receiving these ongoing legal changes highlighting, uh, the UCC and you can see the timeline there of changes, um, earlier plans were for that to be completed in 2025, but we do continue to see delays. So there is a very high probability that some of those changes will extend beyond that 2025 date. As many of you are aware, uh, GTS is localized for the, the countries you see listed there on the left. Um, some may may think that, uh, that localization means we have to support those legal changes only for import or export processes, but the fact is for many of those countries, it goes well beyond just import and export.

Um, the ex, ex excise management or EMCS, um, is seeing changes in countries that we do support for A MCS such as Germany, Netherlands, and Belgium. And then the transit or NCTS changes that ALS are also coming in Europe, um, requires support aqua across a wide range of countries within Europe. So, um, when we talk about the legal changes, we have to often make changes for each and every one of these countries. So just wanted to highlight that with that localization. We do provide that ongoing legal change and updates As you are looking to make that conversion to GTS addition for hana, we're also often asked what are the differences between the addition for HANA and GTS 11? Earlier in the deck I shared, uh, some of those main major functional changes, whether it's the move to the Fiori UI or some of those preference changes, uh, changes to those long-term supplier declarations or, uh, enhanced support for, uh, the partner government agencies. There were also, uh, changes in terms of things that did not move from GTS 11 into the addition for hana, and that's what we call the simplification list. This slide is, is a somewhat condensed view of that list where, um, we highlight some of those key changes. One of those being that T-Rex, which, um, many customers were using to support the sanction party list screening was not brought forward into GTS edition for hana. Another of those was case management. Um, many were using that to support, uh, some requirements in your classification in GTS 11. Uh, case management was not brought forward. And then there's a number of other, uh, things that, that may not have come forward within GTS edition or that with the introduction of the Fiori UI one single Fre app, um, often replace multiple, say five to seven different old, uh, SAP GUI transactions. So we really do encourage you to leverage the simplification list that is available out on the SAP help portal. The SAP help portal provides, um, a lot of information about the addition for hana, um, from the, the feature scope de description. Some of you may be familiar with that term, um, if you've worked in in S four HANA itself. Um, but it provides links to the administration guide, uh, the conversion guide. Uh, the conversion guide is a great place to start as you begin planning for your conversion from GTS 11 to, uh, GTS edition for hana. Within that conversion guide is also a readiness check, and what that allows you to do is run this readiness check against your current GTS, uh, GTS 11, for example, and start to highlight those areas that are going to require some special, uh, a attention as you begin that conversion to GTS edition. For hana. The simplification list, as I touched on in the previous slide, does provide you area by area. So you can go in and see what are the changes that have occurred in customs, for example, where did we make changes to that functionality. Um, also then you can see that for compliance or for trade preference. So that is a great place to go in and, and start looking for those, uh, changes in the simplification list. The integration guide is going to give you additional information about some of the configuration and settings and changes that you'll make as you integrate GTS with other SAP products such as, uh, transportation management, uh, there's the configuration guide about those configuration settings or what we used to call customization or many still call customization. Um, but that causes some confusion. Sometimes. It's, it's really about making those settings to have the business processes operate, um, the way you want them to for your business. There's also assistance with the product itself, um, for some of the key functions and gives you some of the, an, an overview of some of those that, that functionality within GTS and then the Fiori app library so that you get really important information about each of those Fiori apps. You'll get additional configuration information about those apps and it also allows you to quickly access some of those additional resources. The third bullet here are some of those legal change legal changes, um, I mentioned and highlighted previously. Um, the help portal does provide a link, uh, to those legal changes. Um, and I'll go to the next slide. This is the screen you'll get or access when you use the link available from the SAP help portal. Um, what you can do is go in and see all of the changes that have been made or maybe planned for a specific country in this case. For example, the changes for Belgium. And I am showing just those changes for the GTS component, S-L-L-L-E-G. So those are those legal changes within GTS. As you can see, um, notes are frequently issued and will be issued for some of those changes. Uh, the top one here, for example, a note was issued regarding some EMCS 3.4 changes for Belgium, and that note was, uh, handled or delivered back in 2019. You can also see some of the, the changes that are coming, uh, for Belgium. Again, the bottom one with the introduction of a ES or the automated export system for Belgium. Right now, those planned, uh, changes or planned delivery is in 2024. Um, we initially published this information, uh, back in March of 2023. So this is just to highlight, there is a lot of information available to you. Um, in terms of if you're wondering if we're aware of legal changes that are coming, you can go in, enter the country where you may know of a legal change and just want to know what our plans are for that change or what action we may have already taken.