SAP Engineer-to-Order (ETO) Project Implementation Guide

1. Introduction
This document provides a strategic framework for implementing an SAP Engineer-to-Order
(ETO) project. It outlines the roles and integration of various SAP modules in managing the
complexities associated with custom product development and manufacturing tailored to
meet specific customer requirements.

2. Key SAP Modules and Their Roles

SAP Order to Cash (OTC)

Customer Order Management: Capture and manage detailed customer requirements and
ensure clear communication across the supply chain and production teams.

Pricing and Contracts: Manage complex pricing structures and customized contract terms
specific to ETO projects.

Invoicing and Revenue Recognition: Implement milestone-based billing and manage cash
flow and compliance with accounting standards.

Customer Relationship Management: Maintain robust relationships with customers, track

satisfaction, and manage service and warranty claims.

SAP Supply Chain Management (SCM)

Demand Planning: Utilize forecasting tools to predict and plan for material and resource
requirements.

Procurement: Ensure timely procurement of quality materials at controlled costs.

Production Planning: Integrate detailed planning tools for efficient resource allocation and
manufacturing process optimization.

Logistics and Distribution: Manage the logistics of final product delivery, including route
planning and transportation management.

SAP Warehouse Management (WM)

Material Storage and Handling: Manage storage and handling of unique materials required
for ETO projects.

Inventory Management: Maintain accurate inventory levels to prevent production delays.

Picking and Packing: Organize the picking and packing processes essential for
manufacturing.

Integration with Manufacturing: Ensure seamless material flow to the production areas.
3. Implementation Strategy
This section provides a phased approach to implementing the SAP ETO project, ensuring
each phase is planned, executed, and reviewed effectively.

Phase 1: Requirements Gathering and Analysis

Collaborate with stakeholders to define specific requirements and challenges.

Phase 2: Solution Design

Design an integrated solution using SAP modules tailored to the ETO project requirements.

Phase 3: Configuration and Customization

Configure the SAP system and perform necessary custom developments.

Phase 4: Testing and Validation

Conduct comprehensive testing to ensure the system functions as intended.

Phase 5: Training and Go-Live Preparation

Provide training to end-users and prepare for go-live.

Phase 6: Go-Live and Post-Go-Live Support

Transition to the new system and provide ongoing support and optimizations.

4. Conclusion
Successful implementation of an SAP ETO project requires meticulous planning, integration,
and execution across various SAP modules. This guide serves as a roadmap for aligning
technical capabilities with strategic goals of delivering customized products efficiently and
effectively.