The ultimate solution to manage pricing in an increasingly customised way for businesses, thanks to the power and innovation of SAP S/4 HANA.
Advanced Variant Configuration (AVC) in S/4 HANA allows you to customise design, sales, and production with data integration in key business scenarios: MTO, MTS, CTO (configure to stock), ETO (engineer to stock).
AVC is of particular significance: it is in fact the function of SAP that provides support for the management of complex products, consisting of several variables. For example, the management of a coffee machine, characterised by numerous variables (from colour to model, to dimensions, etc.). Thanks to Classic Variant Configuration LO-VC and, in particular AVC, the possibility of coding a material model code is greatly simplified, with the “configurator” function.
There are two possible ways of managing complex products:
- It is possible to insert the configurator (e.g. in the sales order) and define the different features each time, in order to customise the machine required by the customer. This is a very popular option when it comes to make-to-order management.
- Alternatively, new codes can be defined with reference to the configurator with which the characteristics are fixed (generating new variant codes).
The new version of SAP allows the use of a new tool that simplifies the processes of generation, management and verification of material configurations. It is therefore possible to create the link between configurable and variants in a single statement. This is the main advantage of the new version of AVC: the management of this activity used to be much more technical and complex. Now it is much faster, thanks to a user-friendly screen, especially to define the prices of the features to link to the model.
But the advantages don’t end there. With AVC, you can also:
- Increase FTE productivity in managing orders, by seamlessly integrating variant configuration into the order entry process and simplifying order configuration tasks;
- Grow revenue with better product customisation by allowing customers to configure and verify compatibility and feasibility, and estimate cost and lead times for their customised product;
- Calculate the sales price based on the features chosen for the configurable product;
- Increase customer satisfaction through greater product customisation.
These benefits are accomplished through the new features of AVC:
- Ability to use AVC’s new “Configuration” screen where you can quickly view and edit the determined features;
- Possibility to use this feature also in the quote/offer phase;
- The new configuration engine that exploits SAP HANA functions;
- Improved consistency of the overall product configuration thanks to confirmation functions provided by the new configurator engine.
In addition, SAP S/4 HANA makes it possible for the Classic Variant Configuration solution to coexist with the new Advanced Variant Configuration.
Discover the benefits of advanced features and solutions that S/4 HANA offers companies to innovate their business process with Software Business, SAP Partner Open Ecosystem!