KeywordsSAP SCM (APO) Short Overview, SAP SCM, SAP APO, SAP DP, SAP SNP, SAP PPDS,

SAP CIF, Demand Planning, Supply Network Planning, Production Planning and Detailed Scheduling, Procurement Planning, Core InterfaceSummary Short overview of SAP Supply Chain Management Solution (formerly SAP Advanced Planner and Optimizer). You want to know what is SAP APO or what is SAP SCM? You are at the right place! Table of Contents _ The Supply Chain Management process in SAP _ Demand Planning SCM DP _ Supply Network Planning SCM SNP _ Production Planning and Detailed Scheduling - SCM PPDS _ Procurement Planning SCM PPDS or R3 MRP _ The Core Interface CIF _ Comments on other modules

SAP SCM (APO) Short Overview - Presentation Transcript SAP SCM - APO Short Overview

Supply Chain Management Advanced Planner and Optimizer

- The Supply Chain Management process in SAP Demand Planning SCM DP

Supply Network Planning SCM SNP

Production Planning and Detailed Scheduling SCM PPDS

Procurement Planning SCM PPDS or R3 MRP The Core Interface CIF

Comments on other modules

The Supply Chain Management process in SAP

The objective of the Supply Chain Management process is to ensure that the company has the desired products available for its customers at the right time and place, at a minimal cost for the company.

An efficient Supply Chain will enable the company to

have: 9 a higher service level = less shortages = less customers disappointed = more sales 9 a lower stock level = less cash needed to run the operations 9 lower operational costs = less emergency shipments, for instance

The Supply Chain Management process in SAP .

The process starts by forecasting the future sales (Demand Planning). Then the optimal product quantities to distribute in the companys network are determined (Supply and Network Planning). From this distribution plan is deduced an ideal production plan (Production Planning and Detailed Scheduling). Finally, this production plan is used to source the required components (Procurement Planning).

These steps are performed in different modules of the SAP SCM solution (formerly SAP APO Advanced Planning and Optimizer), described briefly in the following slides.

Demand Planning

The Demand Planning process is performed in the SCM DP module.

Its objective is to determine which products are needed for which customer or location, in which quantity and on which date.

This is estimated via the process presented in the following slide, performed periodically (monthly, weekly... depending on the company and type of product).

Demand Planning

Monitor forecast accuracy

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Release forecast to Distribution Planning

Launch statistical forecast

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Adjust the forecasts

Supply Network Planning .

The Supply Network Planning Process is performed in the SNP module.

Its objective is to plan the stock transfers needed between the different locations (factories, warehouses) to reach the target stock level and fulfill the demand at each of theselocaons.

Production Planning and Detailed Scheduling

The Production Planning and Detailed Scheduling process is performed on each factory.

Its objective is to determine the optimal

quantities to produce in order to fulfill the demand, limit overstocks as well as products setup time (time lost when switching from a product to the next).

Production Planning and Detailed Scheduling

By considering the demand on the factory (Sales orders, forecast, or stock transfers to warehouses), the target stock level on the factory, and the production constraints (lot sizes,...) the Production Planning determines how much is to be produced for all each product perpenod.

This is calculated for the Finished Products, anc then for the intermediary SemiFinished Products.

Production Planning and Detailed Scheduling - PPDS TC: %a

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Procurement Planning or

The last step of the Supply Chain Management Process is the Procurement Planning.

The objective of this step is to determine the components to supply in order to be able to realize the Production Plan.

This process can be performed in the SCM PPDS module for critical components to be planned in detail, or in SAP R3 using the Materials Requirements Planning (MRP) functionality.

The Core Interface .

SAP SCM and SAP R3 are two different systems, which need to be integrated.

Some SAP R3 data is sent regularly to SAP SCM for the Supply Chain Management process: product master data, sales orders,... Some SAP SCM data is also sent to SAP R3 to perform the related execution processes: production orders, transfer orders,...

The Core Interface (CIF) is the standard interface between these two environments.

Comments on other modules .

Some other modules are part of SAP SCM process, and can be implemented depending on the requirements of the company:

- Global Available to Promise GATP: to determine the availability of components or products

- 'ransport Planning/Vehicle Scheduling PVS: to realize the detailed transport plan of he products