You face enormous pressure to reduce costs while increasing innovation and improving customer service and responsiveness. SAP Supply Chain Management (SAP SCM) enables collaboration, planning, execution, and coordination of the entire supply network, empowering you to adapt your supply chain processes to an ever-changing competitive environment.
SAP SCM is part of the SAP Business Suite, which gives organizations the unique ability to perform their essential business processes with modular software that is designed to work with other SAP and non-SAP software. Organizations and departments in all sectors can deploy SAP Business Suite software to address specific business challenges on their own timelines and without costly upgrades.
SAP SCM can help transform a linear, sequential supply chain into a responsive supply network – in which communities of customer-centric, demand-driven companies share knowledge, intelligently adapt to changing market conditions, and proactively respond to shorter, less predictable life cycles. SAP SCM provides broad functionality for enabling responsive supply networks and integrates seamlessly with both SAP and non-SAP software. The application:
* Delivers planning and execution functions that are integrated by design.
* Supports best practices and provides preconfigured software for enabling collaborative business, accelerating implementation, and reducing costs.
* Is recognized by key industry analysts as the market-leading SCM application.
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Supply Chain Planning and Collaboration
Supply Chain Planning and Collaboration
SAP SCM includes features and functions to support collaborative supply chain planning processes, including strategic, tactical, and operational planning as well as service parts planning.
Strategic, Tactical, and Operational Planning
With SAP SCM, you can optimize a full range of planning activities, including:
* Demand planning and forecasting – Forecast and plan anticipated demand for products or product characteristics. Use state-of-the-art forecasting algorithms for product life-cycle planning and trade promotion planning.
* Safety stock planning – Assign optimal safety stock and target stock levels in all inventories in the supply network. Meet your desired customer service levels while maintaining a minimum amount of safety stock.
* Supply network planning – Integrate purchasing, manufacturing, distribution, and transportation plans into an overall supply picture – so you can simulate and implement comprehensive tactical planning and sourcing decisions based on a single, globally consistent model. This can involve heuristics and capacity planning, optimization, and multilevel supply and demand matching.
* Distribution planning – Determine the best short-term strategy to allocate available supply to meet demand and to replenish stocking locations. To achieve this, planners can determine which demands can be fulfilled by existing supply elements.
* Supply network collaboration – Work with partners across your supply network. Using collaboration features that improve visibility into supply and demand, you and your partners can reduce inventory buffers, increase the velocity of raw materials and finished goods through the pipeline, improve customer service, and increase revenues.
Service Parts Planning
With SAP SCM, you can also handle service parts planning activities, including:
* Parts demand planning – Improve the accuracy of forecasts through better modeling of demand quantities, events, and their respective deviations. You can select sophisticated forecast models and optimize model parameters to improve forecasting for slow-moving parts or for parts with irregular demand patterns. Through aggregated forecast-parameter profile maintenance, you can make data maintenance more efficient.
* Parts inventory planning – Reduce inventory levels and achieve retail service levels by providing more precise demand modeling. You can distribute inventory optimally within the multi-echelon supply chain to ensure high service levels while keeping inventory levels at a minimum.
* Parts supply planning – Reduce inventory in the supply chain by improving supplier alignment, increasing automation, and developing accurate supply plans. You can also reduce operational cost through efficient purchasing practices.
* Parts distribution planning – Set up stock transfers for parts within a service parts network to reduce stock-out situations and operational costs.
* Parts monitoring – Work with suppliers and customers to exchange information and handle alerts collaboratively. Read More......
SAP SCM includes features and functions to support collaborative supply chain planning processes, including strategic, tactical, and operational planning as well as service parts planning.
Strategic, Tactical, and Operational Planning
With SAP SCM, you can optimize a full range of planning activities, including:
* Demand planning and forecasting – Forecast and plan anticipated demand for products or product characteristics. Use state-of-the-art forecasting algorithms for product life-cycle planning and trade promotion planning.
* Safety stock planning – Assign optimal safety stock and target stock levels in all inventories in the supply network. Meet your desired customer service levels while maintaining a minimum amount of safety stock.
* Supply network planning – Integrate purchasing, manufacturing, distribution, and transportation plans into an overall supply picture – so you can simulate and implement comprehensive tactical planning and sourcing decisions based on a single, globally consistent model. This can involve heuristics and capacity planning, optimization, and multilevel supply and demand matching.
* Distribution planning – Determine the best short-term strategy to allocate available supply to meet demand and to replenish stocking locations. To achieve this, planners can determine which demands can be fulfilled by existing supply elements.
* Supply network collaboration – Work with partners across your supply network. Using collaboration features that improve visibility into supply and demand, you and your partners can reduce inventory buffers, increase the velocity of raw materials and finished goods through the pipeline, improve customer service, and increase revenues.
Service Parts Planning
With SAP SCM, you can also handle service parts planning activities, including:
* Parts demand planning – Improve the accuracy of forecasts through better modeling of demand quantities, events, and their respective deviations. You can select sophisticated forecast models and optimize model parameters to improve forecasting for slow-moving parts or for parts with irregular demand patterns. Through aggregated forecast-parameter profile maintenance, you can make data maintenance more efficient.
* Parts inventory planning – Reduce inventory levels and achieve retail service levels by providing more precise demand modeling. You can distribute inventory optimally within the multi-echelon supply chain to ensure high service levels while keeping inventory levels at a minimum.
* Parts supply planning – Reduce inventory in the supply chain by improving supplier alignment, increasing automation, and developing accurate supply plans. You can also reduce operational cost through efficient purchasing practices.
* Parts distribution planning – Set up stock transfers for parts within a service parts network to reduce stock-out situations and operational costs.
* Parts monitoring – Work with suppliers and customers to exchange information and handle alerts collaboratively. Read More......
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Araveinth
Features & Functions of SAP Supply Chain Management
SAP SCM delivers a complete set of features and functions for building adaptive supply chain networks.
The application enables:
* Supply chain planning and collaboration – With SAP SCM, you can model your existing supply chain; set goals; and forecast, optimize, and schedule time, materials, and other resources. Supply chain planning functionality enables you to maximize return on assets and ensure a profitable match of supply and demand.
* Supply chain execution – SAP SCM enables you to carry out supply chain planning and generate high efficiency at the lowest possible cost. You can sense and respond to demand through an adaptive supply chain network in which distribution, transportation, and logistics are integrated into real-time planning processes.
* Supply chain visibility design and analytics – SAP SCM gives you networkwide visibility across your extended supply chain to perform strategic as well as day-to-day planning. The application also enables collaboration and analytics, so you can monitor and analyze the performance of your extended supply chain using predefined key performance indicators (KPIs). Read More......
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Araveinth
Business Benefits of SAP Supply Chain Management
SAP SCM can help you transform a traditional linear supply chain into an adaptive network with the following benefits:
* Faster response to changes in supply and demand – With increased visibility into the supply chain and adaptive supply chain networks, you can be more responsive. You can sense and respond quickly to changes and quickly capitalize on new opportunities.
* Increased customer satisfaction – By offering a common information framework that supports communication and collaboration, SAP SCM enables you to better adapt to and meet customer demands.
* Compliance with regulatory requirements – You can track and monitor compliance in areas such as environment, health, and safety.
* Improved cash flow – Information transparency and real-time business intelligence can lead to shorter cash-to-cash cycle times. Reduced inventory levels and increased inventory turns across the network can lower overall costs.
* Higher margins – With SAP SCM, you can lower operational expenses with more timely planning for procurement, manufacturing, and transportation. Better order, product, and execution tracking can lead to improvements in performance and quality – and lower costs. You can also improve margins through better coordination with business partners.
* Greater synchronization with business priorities – Tight connections with trading partners keep your supply chain aligned with current business strategies and priorities, improving your organization's overall performance and achievement of goals. Read More......
* Faster response to changes in supply and demand – With increased visibility into the supply chain and adaptive supply chain networks, you can be more responsive. You can sense and respond quickly to changes and quickly capitalize on new opportunities.
* Increased customer satisfaction – By offering a common information framework that supports communication and collaboration, SAP SCM enables you to better adapt to and meet customer demands.
* Compliance with regulatory requirements – You can track and monitor compliance in areas such as environment, health, and safety.
* Improved cash flow – Information transparency and real-time business intelligence can lead to shorter cash-to-cash cycle times. Reduced inventory levels and increased inventory turns across the network can lower overall costs.
* Higher margins – With SAP SCM, you can lower operational expenses with more timely planning for procurement, manufacturing, and transportation. Better order, product, and execution tracking can lead to improvements in performance and quality – and lower costs. You can also improve margins through better coordination with business partners.
* Greater synchronization with business priorities – Tight connections with trading partners keep your supply chain aligned with current business strategies and priorities, improving your organization's overall performance and achievement of goals. Read More......
Posted by
Araveinth
Supply Chain Visibility Design and Analytics
SAP SCM supports supply chain visibility design and analytics with features and functions that enable supply chain design and analytics processes, including:
* Strategic supply chain design – With visibility across the entire supply chain network, planners and key decision makers can perform strategic and tactical business planning. They can test scenarios to determine how the supply chain network can address changes in the market, the business, or customer demand.
* Supply chain analytics – SAP SCM enables you to define, select, and monitor KPIs to get an integrated, comprehensive view of performance across the supply chain. You can also use predefined KPIs based on the supply chain operations reference (SCOR) model to monitor sourcing, planning, production, distribution, and returns processes. Read More......
* Strategic supply chain design – With visibility across the entire supply chain network, planners and key decision makers can perform strategic and tactical business planning. They can test scenarios to determine how the supply chain network can address changes in the market, the business, or customer demand.
* Supply chain analytics – SAP SCM enables you to define, select, and monitor KPIs to get an integrated, comprehensive view of performance across the supply chain. You can also use predefined KPIs based on the supply chain operations reference (SCOR) model to monitor sourcing, planning, production, distribution, and returns processes. Read More......
Posted by
Araveinth
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