roi for r/3 - slide 1 ©1999 i2 technologies, inc. roi for r/3 integration template

ROI for R/3 - Slide 1©1999 i2 Technologies, Inc.

ROI for R/3Integration Template

ROI for R/3Integration Template


Agenda Overview

ROI for R/3 ROI for R/3 Components Supply Chain Management (SCM) Processes and

Solution Architecture Demand Planning Processes Supply Planning Processes Demand Fulfillment Processes


Executive Overview

Customers need a flexible integration solution to insulate their Constituents from the complexity and number of SAP R/3 instances deployed

Every instance of SAP R/3 implemented becomes an unique entity

i2 has developed a FLEXIBLE solution for handling this heterogeneity even between instances of the same version of SAP R/3 as well different versions

ROI for R/3 supports 3.0F+ (includes 3.0S) and makes no modifications to SAP delivered code


Background Information The Supply Chain Management (SCM) template

describes the elements of a successful manufacturing and distribution system.

Rhythm Optimized Integration (ROI) for R/3 is a set of software components which enable integration of i2 planning software with SAP R/3.

The ROI for R/3 Common Integration Template provides a methodology for implementing ROI.


SAP R/3 Integration

Implementing solutions integrated with SAP R/3 since 1996

Every implementation(instance) of SAP R/3 is unique, any productized integration must comprehend

Implementation experiences have led us to identify key factors for success and evolve our integration solution

ROI for R/3 is the result


Common i2 / SAP Customers• Abbott LaboratoriesAbbott Laboratories• ACME MetalsACME Metals• Altos Hornos Mexico(AHMSA) SA de C.V.Altos Hornos Mexico(AHMSA) SA de C.V.• AMPAMP• Apple ComputersApple Computers• Arima Computer CorporationArima Computer Corporation• Large producer of wafer fabrication systemsLarge producer of wafer fabrication systems• AST ResearchAST Research• Baker Hughes INTEQBaker Hughes INTEQ• Barnes and NobelBarnes and Nobel• BHP SteelBHP Steel• Black & DeckerBlack & Decker• Borden, Inc.Borden, Inc.• BoseBose• Bridgestone Australia Ltd.Bridgestone Australia Ltd.• Bristol-Myers Squibb CompanyBristol-Myers Squibb Company• British American TobaccoBritish American Tobacco• British SteelBritish Steel• CaterpillarCaterpillar• Coca-Cola Company (Japan)Coca-Cola Company (Japan)• Compaq Computer CorporationCompaq Computer Corporation• Consumers Packaging Inc.Consumers Packaging Inc.• Corning Consumer Products CompanyCorning Consumer Products Company• Cyrix CorporationCyrix Corporation• Dan River, Inc.Dan River, Inc.• Deluxe Video Services (formerly Rank)Deluxe Video Services (formerly Rank)• DobbsDobbs• Dupont Materials & LogisticsDupont Materials & Logistics• Digital Equipment CorporationDigital Equipment Corporation• Dixie Group Dixie Group • Domtar Papers Domtar Papers • Duni Duni • EricssonEricsson• EWK MetalsEWK Metals• Flender GussFlender Guss• Fletcher Challenge CanadaFletcher Challenge Canada

• Pechiney RhenaluPechiney Rhenalu• PF LabsPF Labs• Philip Morris Companies, Inc.Philip Morris Companies, Inc.• PhilipsPhilips• Philips Consumer ElectronicsPhilips Consumer Electronics• Pilgrim’s PridePilgrim’s Pride• Polimeri EuropaPolimeri Europa• PrimetechPrimetech• ProtonProton• Raychem CorporationRaychem Corporation• RenaultRenault• Rhone PoulencRhone Poulenc• Samsung SemiconductorSamsung Semiconductor• Samsung ElectronicsSamsung Electronics• SanitariumSanitarium• Sara Lee CasualwearSara Lee Casualwear• Siemens SemiconductorSiemens Semiconductor• Siemens Nixdorf Informations Systeme AG (SNI)Siemens Nixdorf Informations Systeme AG (SNI)• Steelcase, Inc.Steelcase, Inc.• Sun Microsystems (SME)Sun Microsystems (SME)• Tech DataTech Data• Texas Instruments SemiconductorTexas Instruments Semiconductor• Texas MicrosystemsTexas Microsystems• Thomson MultimediaThomson Multimedia• Thompson Consumer ElectronicsThompson Consumer Electronics• Timken BearingsTimken Bearings• Timken SteelTimken Steel• Trus-Joist MacMillanTrus-Joist MacMillan• VF CorporationVF Corporation• VacuumschmelzeVacuumschmelze• VAW Aluminum AGVAW Aluminum AG• Visteon Automotive SystemsVisteon Automotive Systems• Leading apparel manufacturerLeading apparel manufacturer• Warner-Lambert Company CanadaWarner-Lambert Company Canada• Whirlpool CorporationWhirlpool Corporation

• Fletcher Challenge SteelFletcher Challenge Steel• Fujitsu Ltd. MicroelectronicsFujitsu Ltd. Microelectronics• Galvak (Hylsamex S.A. de C.V.)Galvak (Hylsamex S.A. de C.V.)• GambroGambro• General Electric AppliancesGeneral Electric Appliances• General Motors CorporationGeneral Motors Corporation• H.J. Heinz Company of Canada H.J. Heinz Company of Canada • Hewlett-Packard CompanyHewlett-Packard Company• Holland HitchHolland Hitch• Home DepotHome Depot• IBMIBM• IMSA (Industrias Monterrey, S.A. de C.V.)IMSA (Industrias Monterrey, S.A. de C.V.)• Integrated Device Technology (IDT)Integrated Device Technology (IDT)• Inventec Inventec • Johnson & Johnson MedicalJohnson & Johnson Medical• Kimball InternationalKimball International• KlabinKlabin• International producer of plastic toysInternational producer of plastic toys• Lennox IndustriesLennox Industries• Lincoln ElectricLincoln Electric• LiptonLipton• L’OrealL’Oreal• Lucent TechnologiesLucent Technologies• Mannesmann S.A.Mannesmann S.A.• Maxtor CorporationMaxtor Corporation• Motorola Cellular SubscriberMotorola Cellular Subscriber• Motorola SemiconductorMotorola Semiconductor

• Newport News ShipbuildingNewport News Shipbuilding • Neusiedler PaperNeusiedler Paper• Major sports apparel firmMajor sports apparel firm• NokiaNokia• Novartis AGNovartis AG• Occidental Chemical Corporation• Panasonic Logistics


What is RHYTHM Optimized Integration for R/3? Integration solution for customers linking RHYTHM

and SAP R/3

i2’s commitment to productized integration withSAP R/3

i2 is taking on the role of solution provider in SAP R/3 integration with RHYTHM

Dedicated - Development, Consulting, Partners

RhythmLink™ with pre-built Templates and objects that are specific to SAP R/3 R/3


Components of RHYTHM Optimized Integration(ROI) for R/3:

SAP R/3 data extraction (R/3 -> RHYTHM) ROI-Dynamic SAP Adapter(DSA) - Pull data from SAP R/3 ROI-Active Data Publisher(ADP) - Push of data from SAP R/3

Planning data results upload (R/3 <- RHYTHM) ROI-UPLOAD

Uploads data from i2 into R/3 Business Objects (ex. create purchase order)

Order promising interface with R/3 SD ROI-Demand Fulfillment (DF)

Synchronous RFC calls from SAP R/3 to i2 Demand Fulfillment engine for optimal order promise dates and product sourcing.

Allocated Available to Promise (AATP)


SAP R/3 data extraction (R/3 -> RHYTHM)

Extract based on RFC Any data necessary is accessible from ROI

including Customer specific table (X* , Y*) Select on any Data Dictionary Table/Data element Logical Database / function modules

Turns SAP R/3 into a Data server exposing entire data dictionary

Integration at App server not DB server Eliminate need for writing ABAP/4 to extract data Event Driven Net-Change Supports Message Bus Architecture


I. ROI “Download” Components

RhythmLinkRhythmLink

ActiveActiveData WarehouseData Warehouse

(Operational Data Store)(Operational Data Store)

““Push” Push” of Changed of Changed

Master and Transaction DataMaster and Transaction Data(ROI Active Data Publisher)(ROI Active Data Publisher)

““Pull”Pull”

of any R/3 dataof any R/3 data

(ROI Dynamic SAP Adapter)(ROI Dynamic SAP Adapter)


ROI-Dynamic SAP Adapter

Extraction based on RFC Any data necessary is accessible from ROI

including Customer specific table (X* , Y*) Select on any Data Dictionary Table/Data element Function Modules

Turns SAP R/3 into a Data server exposing entire SAP Metadata (Data Dictionary)

Integration at Application server not DB server Eliminate need for writing specific ABAP/4 to extract

data


SAP Dynamic Adapter Architecture

SAP R/3SAP R/3 RhythmLinkRhythmLink

Table NameTable NameFieldsFields

SelectionSelectionvia RFCvia RFC

ResultsResults(metadata and data)(metadata and data)

fromfromSelectionSelection

Mapping &Mapping &TransformationTransformation ActiveActive

Data WarehouseData Warehouse


ROI for R/3 - Active Data Publisher

SAP R/3SAP R/3

ROI for R/3ROI for R/3

ADWADW SCPSCP DPDPFPFP

RHYTHMRHYTHM

RFCRFCChangeChangedocumentdocument

R/3R/3TransactioTransactio

nn


Event Driven Net Change: Real Time integration with SAP R/3 OLTP As R/3 users commit changes in SAP R/3, event is triggered

to send relevant changes to i2 “Push” data out of R/3 to minimize system load issues

associated with full data extract Configurable Master data

Material master, Customer master, Vendor master BOM, Routings, Work Centers

+ many others

Transactional data Sales orders, Deliveries Purchase requisitions, Purchase orders Stock movements

+ many others


II. ROI-UPLOAD Planning data results upload Uploads result of i2 planning to SAP R/3 as R/3 Business Objects Leverages Existing SAP R/3 Interfaces

RFCs (Remote Function Calls) BAPIs (Business Application Programming Interfaces) Function Modules

Some of R/3 business objects implemented (transactional data): Purchase Requisitions (Stock Transport Requisitions) Purchase Orders (Stock Transport Orders) Schedule Agreements Planned Orders Production/Process Orders Independent Requirements Sales Orders


Advantages of ROI for R/3

Designed specifically for i2’s RHYTHM Suite

Developed based on i2’s experience of working with over 100 of SAP’s largest customers

Very quick performance for very high volume customers with large amounts of data

Customizable

Add own filters

Works within framework of ABAP/4 Technology

Designed for optimal performance and reliability

Very quick to install/implement

Works with RhythmLink data mapping and filters

i2 documentation and trained consultants


i2 RHYTHM Global SCM View

RHYTHMRHYTHMDemand Demand Management (DM)Management (DM)

RHYTHMRHYTHMSupply Chain PlannerSupply Chain PlannerTMTM

DemandPlanning

DemandDemandFulfillmentFulfillment

Master PlanningMaster Planning

RHYTHMRHYTHMFactory Planner Factory Planner TMTM

Plant 1Plant 1 Plant 2Plant 2 Plant 4Plant 4Plant 3Plant 3

RHYTHMRHYTHMDemandDemandFulfillment™Fulfillment™


SAP R/3 Logistics

SalesHistory SOP

SalesOrder

Delivery MPS/MRP

Inventory

Purchasing Shop Floorexecution

DemandManagement


Integrating SCM with SAP R/3 - Overview

SD Sales ordersales history

delivery processing

delivery history MMinventory

SAP Procurement

SAP Manufacturing

ExecutionPlanning

DemandPlanning

DemandFulfillment

Master/Distribution

Planning

FactoryPlanning

FactoryPlanning


Integrating SCM with SAP R/3 - Details

sales ordersales history

delivery processing

delivery history

Inventory Management

Planned Orders/Purchase orders/Schedule agree/

Stock Transport Orders

Planned/production

orders

ExecutionPlanning

DemandPlanning

DemandFulfillment

Master/Distribution

Planning

FactoryPlanning

FactoryPlanning

Customers Suppliers

SD- Sales & Distribution MM- Materials Management

PP- ProductionPlanning

SAP R/3

Make Buy/ MoveRequest/Promise

i2 RHYTHM


Integrating SCM with SAP R/3 - Collaboration

sales ordersales history

delivery processing

delivery history

Inventory Management

Planned Orders/Purchase orders/Schedule agree/

Stock Transport Orders

Planned/production

orders

ExecutionPlanning

DemandPlanning

DemandFulfillment

Master/Distribution

Planning

FactoryPlanning

FactoryPlanning

Customers Suppliers

SD- Sales & Distribution MM- Materials Management

PP- ProductionPlanning

Firewall

Procurement CollaborationDemand Collaboration

To DP

Firewall

SAP R/3

Make Buy/ MoveRequest/Promise


About RhythmLink

Rhythmlink is a tool that facilitates the sourcing, movement and manipulation of data required by i2 Rhythm planning applications.

It accomplishes this by: - Providing the necessary middleware mappings to databases, legacy data sources and application specific data formats (e.g. ERP systems) - Advanced data transformation and manipulation capabilities.


About Rhythm Common Data Model

Leverages Supply Chain Data by providing a common data definition between planning engines and external systems (ERP, Legacy apps, databases)

Interface specific data requirements shielded via “Adapters”

Eliminates maintenance of multiple data and event maps Promotes sharing of information across the supply chain


Sample Common DataModel Schema

(Bill Of Materials)


About RHYTHM Active Data Warehouse

RHYTHM ADW provides: Staging area for common data Persistence for memory

resident systems Reporting and analysis of plans Data cleansing

Speeds up time to implement Improved quality of planning due to data quality Improved analysis and reporting capability

LegacyLegacyLegacyLegacyRHYTHMRHYTHMRHYTHMRHYTHM

SAPSAPSAPSAP

OracleOracleOracleOracleLegacyLegacyLegacyLegacy

BaanBaanBaanBaanJDEJDEJDEJDE

LegacyLegacyLegacyLegacy


Integrating Demand Management


SCM Demand Planning Process

Demand Planning is the process of compiling demand history data and developing demand forecasts and sales plans

R/3 integration focus: Extract R/3 Configuration and Master Data to form basis

of Demand Planning hierarchy (geographic and product) Extract Sales and Delivery History from R/3 Optional – Upload final demand plan data to R/3 (PP-

Sales and Operations Planning or PP-Demand Management)


Integrating Master/Factory Planning



Proposed Business Process and Workflow Extract Data from R/3 Run simulation/finalize plan RHYTHM in SCP/FP Planning cycle is driven by business requirements not

technology limitations Upload Plan to SAP R/3



Planning data results upload (RHYTHM -> R/3) Planned Orders Production/Process Orders Purchase Requisitions Purchase Orders Stock Transport Orders / Stock Transport Requirements Schedule Agreement - Schedule Lines

Support for Quota Arrangement / Source Lists


Integrating Demand Fulfillment


Integrating Demand Fulfillment (AATP)

Provide SAP R/3 with real time Customer segmentation Intelligent Allocation Management Support for multiple Promising Policies Support for multiple Fulfillment Strategies High Availability (HA) Solution

Guaranteed Messaging 24 x 7 operations


Selected Customers: DF-R/3 Implementations

Polimeri IDT Nokia IBM PSG Philips Semiconductor Samsung Compaq


What is ROI-Demand Fulfillment?

i2 supported transport of ABAP/4 code and configuration tables.

Applied to standard User Exits in SAP R/3 Inquiry/Request calls to DF-HA via sRFC. Interfaces with DF via High-Availability architecture

which features fault tolerance, guaranteed delivery, load balancing and catch-up.

Enhances standard R/3 functionality with Demand Fulfillment functionality


ROI-DF Architecture

SAP R/3

• ROI-DF Configuration leverages standard R/3 ATP check.

• Call from SAP R/3 for order or inquiry provides optimized promise dates from Demand Fulfillment.

HA ArchitectureREQUEST

PROMISE

DF Order Promising Engine


Major Benefits of Demand Fulfillment

Promise against Material and Capacity reliable promise dates enable feasible order execution

Improved ATP accuracy increase in customer service granularity of ATP information is more detailed than typical

forecast data Significant improvements in delivery performance to

Promise and Request


Other Benefits of Demand Fulfillment

Intelligent planning and supply allocation Planning / Promising based on Priorities (Allocated ATP) Multiple modes of market access-Channel Allocations

allow differentiated customer service levels Downbinning and Generic (multi-product) ATP Significant reduction in planning cycle times Intelligent automated promising based on business rules Fast & Global


ROI-DF Solution R/3 Global ATP ATP at plant

Multi-plant sourcing-automatic plant splitcreates new line items

Single source promising with no plantsplit

Allocated Available-to-Promise First come, first serve ATP w/o priority

Availability on supply and capacity ATP on supply only (stock & orders)

Robust Promising policies Limited ATP checking

ASAP in Ratio promising (BOMs, Kits) No equivalent

Optimized single plant sourcing forDelivery Group (i.e. complete delivery)

Delivery Group source plant determinedby master data default

Multi-plant sourcing for Delivery Groupswith delivery due list processing

Delivery Group sourced from single plantto prevent Delivery Due List errors

Speed of memory resident technology ATP through database and disk i/o

Advantages of ROI-DF Solution


ROI-DF: Promises not limited to plant availability. DF model can support queries into residual supply and

capacity throughout the entire supply chain.

SAP R/3

REQUEST:

Global Supply Chain

Plant 2 ... Plant XPlant 1

1/10 Availability 30 125 0 40

PROMISE: Based on Supply Chain Availability

Demand Fulfillment


ROI-DF: Auto Multi-plant Sourcing Multi-plant sourcing function automatically creates additional line items in

R/3 Sales Order when optimal plant sourcing is from more than one plant. Control by ROI-DF Configuration and Master Data. DF factors: Cost, Filtering and Sorting, Bucketed Allocations and Delivery Lanes.

SAP R/3

REQUEST: Part A 150 EA 1/10Policy = ALL

Global Supply Chain

Plant 2 ... Plant XPlant 1

1/10 Availability 30 125 0 40

PROMISE: Part A 40 EA 1/10 Plant XPart A 110 EA 1/10 Plant 2

Line Item for 150 EASplit into 2 lines for40 EA and 110 EA


ROI-DF: AATP AATP = Allocated Available to Promise

AATP is ATP allocated in a “Seller” hierarchy (sales channels by geography or product lines) that can be used to quote/promise/reschedule orders.

Allows sales organizations to manage forecasts and allocations to facilitate improved customer service through better order promising

AATP is generated by applying allocation policies to the supply typically generated by planning end item forecasts

Used in conjunction with a planning system to match supply to demand (e.g. “supply-demand matching”)

AATP provides a mechanism to reserve supply ATP may be computed/consumed from 3 dimensions

time seller hierarchy product hierarchy

Organization (e.g. channels)from Seller Hierarchy model

TimeProducts

1

2

3


ROI-DF: Capable-to-Promise Leverages Bill of Material checking functions in DF. DF BOM models capacity consumption as an additional

component. Requests for products check component (material and

capacity) availability in DF to optimize commit dates. Capacity consumption in the BOM can be offset to

consume capacity for different operations in the supply chain.


ROI-DF: Promising Policies Large Base of Supported Promising Policies in ROI-DF:

ALL ALL_ITEMS_ONE_ORIGIN ALL_ONE_PRODUCT ALL_ON_TIME ALL_ON_TIME_ONE_PRODUCT ASAP ASAP_IN_RATIO ASAP_IN_RATIO_ALL_ITEMS_ONE_ORIGIN ASAP_ONE_PRODUCT ON_TIME ON_TIME_IN_RATIO_ALL_ITEMS_ONE_ORIGIN


ROI-DF: ASAP in Ratio ASAP in Ratio allows Kits, Sales Bills and Simple Configure-to-Order to be

accurately scheduled based on allocated availability in the supply chain. Example for Kitchen Table Set (1 Table, 4 Chairs)

Kitchen Set

Date 1/15 1/16 1/17 1/18 1/19

Requested Qty 1000

Committed Qty 700 300

Table

Date 1/15 1/16 1/17 1/18 1/19

Availability 1000 1500 800 800 500


Chairs

Date 1/15 1/16 1/17 1/18 1/19

Availability 0 2800 0 1200 0



ROI-DF: Delivery Groups

ROI-DF allows several sales order line items to be designated to be received on the same date using ROI-DF delivery groups. ROI-DF can be used to source the best single plant for all items in

a given delivery group. Settings determined dynamically from policy, configuration and master

data. ROI-DF can be used to source the best set of plants for all items in

a given delivery group. Does not cause Delivery Due List processing errors.

Source plant determined based on DF model of: Time-phased Allocated Availability Cost by plant Filtering settings Delivery Lanes


ROI-DF: Speed of Complex AATP/CTP

DF is capable of modeling complex solutions such as allocated capable-to-promise.

Sub-second response time based on memory resident technology in message bus and HA-DF architecture.

Secondary HA-DFPrimary HA-DF

SAP R/3

HADB

Orders

Message Bus

Gateway Gateway

Inquiries


ROI-DF Product Flexibility

Multiple DF engines within one R/3 environment. Configurable by: Logon User R/3 application Server Material specific single ATP engine One Global engine

“Look and feel” of R/3 configuration. In most cases R/3 configuration tables are extended for ease of configuration of product functionality.

Important configuration settings based on flexible search strategies. Users can set logic to drive DF ATP or standard R/3 ATP checking

as appropriate. DF-ATP allows delivery scheduling using Demand Fulfillment

delivery network functionallity or in R/3 using delivery scheduling.


Easy to Implement

Additional configuration options for ROI-DF integration requires minimal time to implement.

The product is designed to cooperate with a customer’s existing R/3 configuration.

Thorough Installation and Configuration instruction guide. Field-level help on configuration settings. ROI-DF objects are delivered via R/3 transport and correction

system. Calls to ROI-DF core code are applied to standard R/3 user

exits by client R/3 support team.


Supply Chain Management Processes

i2 Technologies offers a process model which depicts supply chain management best practices

Demand Planning Forecast Netting Long Term Master Planning Master Planning Order Planning Allocation Planning Order Promising Order Creation


SCM Demand Planning Process

Demand Planning is the process of compiling demand history data and developing demand forecasts and sales plans

R/3 integration focus: Extract R/3 Configuration and Master Data to form basis

of Demand Planning hierarchy (geographic and product) Extract Sales and Delivery History from R/3 Sales

Information System (SIS) Optional – Upload final demand plan data to R/3 (PP-

Sales and Operations Planning or PP-Demand Management)


Order Planning

Solution Architecture - Demand Planning

Order Promising

MasterPlanning

AllocationPlanning

RCP DP

DemandPlanning

Engines:•Demand Planner(DP)•Rhythm Collaborative Planner (RCP)

Customers

ForecastNetting

R/3R/3SISSIS

R/3R/3SDSD

HistoryHistory

ForecastForecast

ForecastForecast SupplyAllocation


Solution Architecture – Forecast Netting

Forecast Netting:• Performs forecast aggregation. • Performs forecast netting against customer orders• Performs conversion of bucketed data into more granular buckets

DF

Demand Plan

Netted Forecast

Backlogorder information

Engine:Demand Fulfillment (DF)

R/3R/3SDSD

Sales OrdersSales OrdersSchedule LinesSchedule LinesQuotation LinesQuotation Lines


SCM Supply Planning Process

Supply Planning includes Long Term Master Planning, Master Planning and Allocation Planning

The objective of supply planners is to develop an optimized plan for production and distribution

R/3 integration focus: Extract master data from R/3 Extract sales demand data from R/3 Extract purchasing and production order status data Extract inventory status data Import updating planning data into R/3


Solution Architecture – Long Term Master Planning

Engines:• Supply Chain Planner(SCP)• Factory Planner(FP)

Optional Engines:• Rhythm Collaborative Planning – Procurement (RCP-PC)• Global Transportation Manager(GTM)

R/3R/3COCO

Optional Integration:Optional Integration:Planned Work OrdersPlanned Work Orders

FPFP SCP

Long TermMaster Planning


Solution Architecture – Master Planning

SCPRCPPC

FPFP

RTM

MasterPlanning

TransportSuppliers

Suppliers

Netted forecast

Supply Commits to forecast demand

Engines:• Supply Chain Planner(SCP)• Factory Planner(FP)

Optional Engines:• Rhythm Collaborative Planning – Procurement (RCP-PC)• Rhythm Transportation Manager(RTM)

Response Buffer Supply Plan toDemand Fulfillment

Supply reservation for order backlog

R/3R/3MM/PPMM/PP

• Purchase PlansPurchase Plans• Planned Work OrdersPlanned Work Orders(Production Orders(Production Ordersor Planned Orders)or Planned Orders)•Approved ShipmentsApproved Shipments(Stock Transport Orders)(Stock Transport Orders)

R/3R/3SDSD •Sales Orders

•Schedule Lines•Quote Lines


Solution Architecture – Allocation Planning

Allocation Engine (SCP):• Allocation of supply in the seller hierarchy• Uses specific rules (Customer Ranks, Fair Share etc..)

CustomersSCP RCPSupply Commit

Memory copy to Order Promising Engine

Engines:•Supply Chain Planner(SCP)Optional Engine:•Rhythm Collaborative Planner (RCP)

Supply Allocation


SCM Demand Fulfillment Process

Demand Fulfillment is the process of making accurate promised shipment dates to customers

R/3 integration focus: Extract master data from R/3 Extract sales demand data from R/3 Extract purchasing and production order status data Import updating planning data into R/3


Solution Architecture - Order Promising

Order Promising

Demand Fulfillment Engine (DF):• Provides immediate and reliable promises to orders based on

•Material availability in response buffers & capacity availabiltiy•Evaluation of multiple sources & transportation modes•Different Promising Policies (ASAP, ON TIME, MARRIED LINES)

• Respects supply allocations• Provides a promised date & quantity, sourced facility, manufactured date, shipment date, customer receipt date for each order• Optional ROI component ROI-DF enables use of DF for R/3 ATP functionality

Promises

Copy ofallocationengine

Sales Order / Schedule Lines / Quote LinesDF

R/3R/3SDSD


Solution Architecture - Order Planning

Response Buffer Supply Plan Supply Reservation For Order Backlog

The order planning processes are the near-term planning activities performed by the following engines:Supply Chain Planner (SCP):

• Utilized to create an optimized supply chain plan for the planning domainFactory Planner (FP):

• Each production plant has one or more Factory Planner engines which support detailed production and material requirements planning

Updated Promises

Promises for the New Orders

Order Planning

FPFP SCPR/3R/3MM/PPMM/PP

• Purchase PlansPurchase Plans• Planned Work OrdersPlanned Work Orders•Approved ShipmentsApproved Shipments/ Stock Transport Orders/ Stock Transport Orders


Conclusion

R/3R/3systemsystem

ROIROI i2 Technologies Softwarei2 Technologies SoftwareandandActive Data WarehouseActive Data Warehouse

The i2 Technologies SCM templates are a combination of best supply chain management practices

SCM industry-specific templates simplify implementation

ROI for R/3 enables i2 software to enhance R/3 “back office” functionality

roi for r/3 - slide 1 ©1999 i2 technologies, inc. roi for r/3 integration template

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