End-to-end configuration with a central and standardized database

Any customer can have a car in any color they want, as long as it's black - this bon mot from car pioneer Henry Ford has fallen out of time. Nowadays, a variant manufacturer, regardless of whether it produces e-bikes, lights, injection molding or pressing machines, furniture or containers, must align its product and model range with the ideas of B2C and B2B customers in order to survive on the market in the future. This increases the complexity of products and the number of possible variants in the B2B sector too.

End-to-end variant configuration

Even with the standard version (Configure to Order, CTO) of a product, there may be thousands of variants to choose from, depending on the customer's specifications. Often a customer has very specific requirements for a product, such as a pressing machine. In this case, a customized solution must be configured and manufactured according to the Engineer-to-Order (ETO) or Configure-to-Order-plus (CTO+) concept - keyword batch size 1. As a rule, the configuration is only limited where a variant is not feasible for technical or sales reasons.

The key to success for a variant manufacturer, regardless of industry and size, lies in setting up a digital end-to-end configuration based on a standardized, centrally managed data model. True to the principle of "model once - configure and use anywhere", such a company can only survive on the market in the future if all IT systems involved in the configuration process work exclusively with this data model.

Other important components for efficient end-to-end configuration are simple pricing integrated into the central data model, including the maintenance of prices and condition records as well as cost calculation. Transparent, legally compliant contract management integrated into SAP is also becoming increasingly important, as rental, maintenance, subscription and subscription models increasingly need to be mapped as part of variant configuration.

Pent-up demand in the SAP environment

Although configuration is one of the core ERP processes and almost all areas of the company - sales, purchasing, product development, production, logistics, shipping and finance - work with configuration data, there is a need to catch up in this area, particularly in the SAP environment. The situation is often as follows: One and the same product is configured in parallel in several solutions - in SAP S/4 Hana with the new "Advanced Variant Configuration" (AVC) or still in SAP ERP with the classic SAP Variant Configurator (LO-VC) as well as in third-party tools, in in-house developments and even in Microsoft Excel.

Each individual tool uses its own data models and configuration logic. This results in data islands that cause media disruptions in the configuration process. This requires manual and very error-prone copying of data back and forth and is detrimental to data quality. Consistent and transparent processes become impossible. Configuration and quotation preparation thus become a time-consuming feat of strength, often accompanied by inefficient pricing and calculation.

Management consulting is essential

The path to digital end-to-end configuration according to the "model once - configure and use anywhere" principle, which also includes the automation of upstream processes such as the processing of tenders, is fraught with many challenges. As it affects almost every business area, comprehensive consultation with management and top management is essential in order to create the necessary understanding for end-to-end configuration and the associated integration.

The unconditional support of the executive board and management is crucial to the success of such a project. This allows those responsible to develop a holistic strategy and a roadmap for its implementation that takes into account technology, processes and organization as well as the IT landscape and employees. If you want to get the maximum benefit from a digital end-to-end configuration, you need to be aware that this undertaking is not just an IT project, but also a business project. Smart change management that involves all affected business areas from the outset is therefore also required.

A company wishing to tackle such a project should therefore bring on board a partner who has experience as well as process, technology and methodological expertise and can provide expert advice on all questions relating to end-to-end configuration in the SAP environment, but also on change processes as a "trusted advisor".

Sooner or later, variant manufacturers who are still working with LO-VC will have no choice but to switch to AVC. A smooth and efficient transition requires a clear vision, comprehensive planning, a clearly structured approach based on best practices and open, transparent communication. A partner like Networker Solutions, who has the necessary know-how, can provide support here.

Goodbye data islands

The be-all and end-all for the realization of a digital end-to-end configuration is the development of a uniform data model that is adapted to the requirements of the respective company and is managed centrally. A single source of truth for the data relevant to a configuration is what enables a genuine end-to-end configuration based on the "model once - configure and use anywhere" principle.

This data model, which is maintained centrally in the AVC or LO-VC, can be used in the SAP CPQ (Configure, Price, Quote) cloud solution, for example. As the CPQ solution is integrated into the SAP Sales Cloud software, the sales department can quickly create even complex quotation configurations. This is an advantage that should not be underestimated, as it significantly shortens the lead-to-quote process.

The central data model is also made available to the B2B customer's purchasing department in order to configure products in a web store based on SAP Commerce Cloud, integrated in SAP CPQ - including pricing and availability checks. In addition, the data model stored in the AVC or LO-VC can also be made available via (cloud-based) interfaces for the development and design process in CAD software as well as for configuration in non-SAP CPQ software and/or a non-SAP configurator.

Data management and clear nomenclature

In addition to the creation, implementation and maintenance of the standardized data model, a holistic data management concept with clearly defined responsibilities and processes is one of the factors critical to success. This ensures that the data used in the end-to-end
configuration are correct, complete and up-to-date at all times. This means that technically feasible quotations can be prepared promptly and without errors in accordance with customer requirements.

If there is a solution package that automatically checks and displays the quality of the data that the users involved in the configuration maintain decentrally in real time, this is a major advantage.

Data quality is also enhanced by a clear nomenclature with binding rules and standards for naming and naming conventions for objects, object types and products. Uniform terminology ensures that everyone involved in the configuration speaks the same language. Even within the SAP world (AVC/LO-VC), it is not uncommon for individual departments (sales, purchasing, design, shipping) to work with different configuration logics.

Extending SAP standard practice in a user-friendly way

An important prerequisite for end-to-end configuration in the SAP environment is a standardized data model that is centrally managed and maintained in the tried-and-tested configuration tools AVC or LO-VC. Equally important are convenient and practical configuration processes for the various user groups. Although SAP configurators offer a wealth of functions, they do not always meet these requirements, for example when it comes to maintaining variant tables and 3D visualization.

Maintenance of variant tables

Although variant tables are an important tool for deriving and checking values within object dependencies, users in design, sales or purchasing generally do not have the specialist knowledge required to manage and maintain the tables. In LO-VC, for example, the required functions are distributed across two different SAP transactions, SM30 and PMEVC (Product Modeling Environment for Variant Configuration). The tables are maintained on user interfaces that are not up to date. AVC also still needs to be optimized here, even though it already offers better options and functions and a modern SAP Fiori interface for maintaining variant tables.

To enable users without specialist knowledge to maintain variant tables quickly and efficiently, it is advisable to use an add-on such as the native cloud solution Smart Variant Table Maintenance (SVTM) from Networker Solutions. With a modern, easy-to-use interface, the application offers the option of filtering, copying and pasting tables or checking them for consistency. The solution is based on the SAP Business Technology Platform (SAP BTP) and seamlessly extends the SAP standard. At the same time, SVTM closes various gaps in the SAP standard, including the upload of table content and the mass maintenance of variant tables.

Visualization

When configuring complex B2B products, it is important to support the interaction between different user groups with an appealing visualization - for example, between the sales department and the purchasing department at the customer or retailer. The simpler the configuration process is designed, the easier and clearer the communication between the sales department and the customer will be. This is best done at the click of a mouse, without technical hurdles, graphically in 3D, based on the configuration models, rules and logics stored in AVC, LO-VC and SAP CPQ. This is where the 3D engine from Networker Solutions subsidiary Trilux Digital Solutions comes into play.

It can be seamlessly integrated into the SAP configuration tools (AVC, LO-VC, CPQ). The solution includes a component for 3D visualization and another for interactive 3D configuration. The 3D visualization enables a dynamic, plastic real-time display of products as they are configured. The result is displayed as a 3D model, which can then be transferred to an SAP quotation or order document. Interactive 3D configuration goes a decisive step further.

Regardless of the end device, it guides the user through all configuration steps directly on the object and in 3D. In this way, a user can configure complex products quickly and easily without specialist knowledge. Since the system configuration of machines and systems and their placement in an existing factory environment is usually very complex, a graphical 3D configuration can fully exploit its strengths here. It makes it much easier to relate and visualize the complex models in a system configuration. This reduces the complexity of the configuration process and increases performance.

Optimize upstream processes

If you want to implement a highly efficient end-to-end configuration, you are well advised to automate, simplify and accelerate upstream processes that are often still manual with the help of modern AI technology. This minimizes the error rate during data collection and transfer and relieves employees of time-consuming routine tasks.

AI in tenders

The sales department usually prepares its offer on the basis of a classic tender. This is normally received by e-mail as a PDF file or, as is usual in the construction industry, as a file in a GAEB format. In some cases, scanned documents are also used. Such a document is usually very extensive. 500 to 800 pages are not uncommon. Viewing and processing the large number of incoming tenders manually is time-consuming and error-prone.

With an AI solution, the check is much better. It automatically identifies relevant items, creates an error-free suggestion list of configurable or discrete products sorted according to their degree of compliance with the requirements, extracts features found in the text and highlights them in color. This saves valuable working time for important sales tasks and ensures a high return on investment (ROI). If the AI-generated product suggestions can be enriched with additional information such as product master data, prices or the current stock, this benefits the product configuration later on. An AI application usually also records large order quantities without errors. The AI also automatically checks the incoming orders for suitable configurable material and carries out a preliminary evaluation with characteristics. This benefit cannot be overestimated, as the complexity of the configuration increases with the number of possible product variants.

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