Industry Insights

Key Differences Between SAP ECC and SAP S/4HANA in Production Planning

Written by Ali Hamza | 23 May 2025

Overview - Technology and Scope

In today’s fast-paced manufacturing environment, efficient production planning is vital for staying competitive. As businesses transition from SAP ECC to SAP S/4HANA, understanding the differences between the two systems becomes critical. SAP S/4HANA introduces powerful innovations that transform production planning processes, offering greater agility, automation and real-time insights.

This blog highlights the key differences between SAP ECC and SAP S/4HANA in the context of production planning, focusing on critical components such as

  1. MRP Live (Material Requirements Planning)
  2. Embedded PPDS (Production Planning and Detailed Scheduling)
  3. SAP IBP (Integrated Business Planning)
  4. Quota Arrangement
  5. Monitor and Manage Material Coverage
  6. Monitor and Manage Internal and External Requirements
  7. Analyse PIR Quality (Planned Independent Requirements) 

What is SAP ECC?

SAP ECC, launched in 2004, revolutionised ERP with its robust client-server architecture, running on databases like Db2 and Oracle. Built on a row-based relational model, it became the backbone for businesses, deployed on-premise with the trusted ASAP methodology. But with support winding down in 2027, it’s time to ask: Is your business ready for the next leap, or will you be left in the past? The clock is ticking. 

What is SAP S/4HANA?

SAP S/4HANA, unleashed in 2015 as the bold successor to SAP ECC, is a game-changer in the world of ERP. It offers flexible deployment options: cloud, on-premise, or hybrid and delivers lightning-fast processing on the powerful in-memory, column-oriented HANA database. Supported until 2040, with each release backed for seven years, S/4HANA takes business performance to new heights, seamlessly blending analytics and transactions for unparalleled efficiency. The future of business is here; it’s faster, smarter and ready to lead.

Now that we’ve outlined both systems, let’s explore the key differences that set SAP S/4HANA apart from SAP ECC in production planning. 

MRP Live

Limitations of Traditional MRP in SAP ECC

In ECC, the absence of MRP (Material Requirement Planning) Live meant traditional MRP could only struggle through one plant at a time. To safeguard system performance, the process was strategically scheduled for the late hours of the night, where an overnight batch job worked tirelessly to keep operations running smoothly. 

MRP Transformation in SAP S/4HANA

  • S/4HANA revolutionises planning by spanning Materials, Plants, Product Groups, and MRP Controllers, enabling lightning-fast cycles and instant integration of changes.
  • Real-time transparency bridges supply and demand, empowering swift reactions to fluctuations.
  • Key benefits include fewer stock-outs, minimised safety stock and dramatically lower storage costs, preventing inventory from spiraling out of control.

PPDS in ECC vs. S/4HANA

Fragmented Planning in SAP ECC

Planning in ECC was fragmented and reliant on the separate APO/PPDS (Production Planning and Detailed Scheduling) system, requiring constant data transfers via CIF (Core Interface) to stay synchronised. Master data for materials and work centers operated in isolation, slowing decision-making. Even viewing the Production Scheduling Board or monitoring capacity utilisation demanded enabling PPDS/APO and performing additional CIF transfers, creating a complex and inefficient process.

Integrated Advanced Planning in SAP S/4HANA

S/4HANA transforms planning with fully integrated Advanced Planning, eliminating the need for separate systems and CIF transfers. Key improvements include:

  • A streamlined Advanced Planning view in the Material Master to designate materials for PPDS.
  • A simple checkbox in the Work Centre for quick integration.
  • Real-time optimisation of schedules with the Production Scheduling Board.
  • Instant visibility into resource capacity through the Monitor Capacity Utilisation app.

This seamless integration ensures faster reactions, smoother operations, and a supply chain that’s ready for the future.

SAP IBP

SAP ECC’s Limitations

In SAP ECC, long-term capacity planning lacked integration with real-time analytics and scenario modeling. Planners often relied on offline tools like Excel for forecasting, making it challenging to align capacity with demand effectively. 

Enhanced IBP Integration with SAP S/4HANA

In S/4HANA, the integration is more seamless, leveraging real-time analytics, in-memory computing and a simplified data model. IBP is the go-to planning solution, replacing APO and it works best with S/4HANA due to its simplified data model, real-time processing and cloud-native architecture. Migrating to S/4HANA enhances IBP’s effectiveness, making supply chain planning more responsive and data-driven.

Quota Arrangement

Quota Arrangement Handling in SAP ECC

In ECC, Quota Arrangement functionality is available in the MRP view of the Material Master.

MRP View – Material Master – SAP ECC

 Simplified Quota Arrangement in SAP S/4HANA

In S/4HANA, MRP always considers Quota Arrangement, so it is not required in Material Master.

MRP View – Material Master – SAP S/4HANA

Monitor Material Coverage

Material Monitoring Limitations in SAP ECC

SAP ECC relied on manual processes and static reports for material coverage monitoring, limiting visibility into shortages or surpluses. 

Intelligent Material Coverage with SAP S/4HANA

SAP S/4HANA improves material monitoring with real-time tracking tools like:

  • Monitor Material Coverage app to identify shortages proactively.
  • Dynamic alerts and recommendations for swift resolution.
  • Enhanced dashboards for visualising supply-demand alignment. 

Manage Material Coverage

Limited Shortage Handling and Manual Intervention in ECC

This functionality is not available in ECC. The user can only check the material situation in MD04, execute MRP and convert PR to PO in a separate process. 

Intelligent Shortage Resolution with Managed Material Coverage in S/4HANA

In S/4HANA, the Manage Material Coverage transactional application brings an entirely new level of power to material management. Planners can dive deep into material coverage, with insights shaped by the custom settings from the Monitor Material Coverage app. When shortages strike, the system doesn’t just sit idle; it proposes intelligent solutions that offer a range of options for resolving the crisis. And it gets better: you can simulate these solutions, previewing their impact before committing to the best course of action. No more uncertainty, just precision-driven decisions that keep your supply chain running at full throttle. 

Monitor External Requirements

No External Requirements Monitoring in SAP ECC

This functionality is not available in ECC.

Strategic Visibility with Monitor External Requirements in S/4HANA

In S/4HANA, the Monitor External Requirements transactional application transforms how you track uncovered demands. With it, you gain full command over Sales Orders and Stock Transport Orders within your area of responsibility, ensuring no requirement goes unnoticed. You can define shortage criteria and set specific time horizons to zero in on the most critical uncovered external needs, providing a crystal-clear view of potential disruptions. It’s not just monitoring; it’s a strategic advantage that enables you to anticipate challenges and stay ahead of the game. 

Manage External Requirements

Manual Handling of External Requirements in SAP ECC

This functionality is not available in ECC. Users can only check the material situation in MD04, execute MRP and convert PR to PO in separate transactions.

Actionable Insights with Manage External Requirements in S/4HANA

In S/4HANA, the Manage External Requirements transactional application puts you in the driver’s seat, allowing you to conquer uncovered and delayed items for Sales Orders and Stock Transport Orders. You gain unparalleled insight into critical gaps by leveraging the settings from the Monitor External Requirements app. When challenges arise, the system doesn’t just highlight the problem; it proposes robust solutions, offering multiple ways to fix it. You can simulate each option, see the impact before committing and then apply the solution that perfectly resolves the crisis. This is more than just management; it’s a game-changing tool for staying one step ahead of supply chain disruptions. 

Monitor Internal Requirements

No Monitoring for Internal Requirements in SAP ECC

This functionality is not available in ECC. Users can only check the material situation in MD04, execute MRP and convert Planned Orders to Production / Process / Maintenance / Network Orders in separate transactions. 

Flawless Execution with Monitor Internal Requirements in S/4HANA

In S/4HANA, the Monitor Internal Requirements transactional application gives you total command over your internal supply chain. It ensures that every component is available in perfect alignment, in the correct quantity and at the right time so that internal requirements from Production, Process, Maintenance and Network Orders are met without fail. With the power to define shortage criteria, you can instantly pinpoint which receipts and requirements are critical, giving you the insight needed to prevent disruptions before they happen. It’s not just monitoring, it’s your key to flawless execution and keeping operations running smoothly, no matter what.

Manage Internal Requirements

Fragmented Management of Internal Orders in SAP ECC

This functionality is not available in ECC. Users can only check the material situation in MD04, execute MRP and convert Planned Orders to Production / Process / Maintenance / Network Orders in separate transactions.

Comprehensive Control of Internal Requirements in S/4HANA

In S/4HANA, the Manage Internal Requirements transactional application gives you unmatched control over the flow of critical components for in-house production, process, maintenance and network orders. Powered by the custom settings from the Monitor Internal Requirements app, it allows you to track and ensure every component is perfectly aligned with your needs. No more guesswork; every internal requirement is precisely managed, guaranteeing that production runs seamlessly and nothing falls through the cracks. This tool transforms chaos into order, keeping your operations running with flawless precision.

Analyse PIR Quality

Lack of Forecast Accuracy Analysis in SAP ECC

This functionality is not available in ECC. 

Enhanced Forecasting Insights with Analyse PIR Quality in S/4HANA

In S/4HANA, the Analyse PIR (Planned Independent Requirements) Quality analytical application gives you the power to unlock the truth behind your forecasts. It lets you dive deep into how accurately your planned independent requirements for materials matched reality, revealing the gaps between your projections and actual outcomes. You can see exactly how well your demand forecasts for sales orders aligned with the quantities delivered to customers. With the ability to analyse past monthly periods, this tool provides businesses with the art of forecasting, learning from the past and empowering future decisions with unmatched precision.

Analyse PIR Quality – SAP Fiori App

Conclusion

With SAP ECC support ending in 2027, the clock is ticking for organisations still relying on outdated systems. Now is the time to embrace the future and migrate to SAP S/4HANA. This powerhouse platform doesn’t just keep up with the times; it redefines them.

By harnessing cutting-edge technologies like AI, IOT and machine learning, S/4HANA ensures that your business stays ahead of the curve with regular updates. The sleek SAP Fiori interface delivers a modern, mobile-friendly experience. At the same time, real-time data processing, seamless transfers and smooth cloud integration with an API-first approach propel your business into a new era. Yes, migration may be complex, but the speed, intelligence and performance that S/4HANA offers are nothing short of transformative.