Bridging Supply Chain Complexity and Customization: An Exploration of SAP Segmentation in S/4HANA

Rohit Singhal

Abstract: As part of its modern enterprise resource planning (ERP) solutions, SAP offers its client a functionality called ?Segmentation? that helps clients manage diverse market demands by logically categorizing materials based on characteristics such as quality, origin, or customer type. For businesses operating in a dynamic environment, segmentation ensures that supply chain processes align with dynamic market requirements. This article explores the fundamentals of the Segmentation functionality in SAP, its integration with various modules, the types of segments, and how businesses can leverage segmentation for more efficient logistics and production planning. With a focus on simplifying the technical aspects, this guide aims to help business users new to SAP but experienced in business processes understand and implement segmentation effectively.

Keywords: enterprise resource planning, SAP, Segmentation, master data, configuration