supply chain planning with sap

8/12/2019 Supply Chain Planning With SAP

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Supply Chain Planning with SAP2ndSep, 2005


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Contents

Supply Chain Process & Pain points

Business Solution for Supply Chain

Application Solution for Supply Chain

Demand & Supply Planning

R/3 Vs APO Planning


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Supply Chain Process & Pain points


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Process

Imperfect supplier information, no global sourcing

Long lead times in the entire supply chain

Unreliable demand information, fragmented Information data, bull-whip effect

Business Processes are paper-laden, lack of integration, manual interfaces

Excess safety stock, $1 trillion in inventory across the entire value chain

Supplier

Producer

Service Provider

Wholesaler

Retailer

Consumer

Pains


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Issues

Source Make Store/Fulfill Store/SellStore

Low Inventory

Turns

Limited

Inventory

Visibility

High

Transportation

Costs

High

Material Costs

Low Customer

Service

High

Out-Of-Stock

Ratio

Long

Lead Times

Low Forecast

Accuracy

Limited

Visibility on

Promotions

Poor

Supplier

Communication

No Reliable

Production

Supplier Manufacturer Manufacturer DC Retailer DC Retailer


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Supplier

Producer

Service Provider

Wholesaler

Retailer

Consumer

Key Performance Indicators

Key

Supply Chain

Performance

Indicators

Product AvailabilitySupply Chain Costs

Fill Rates

Manufacturing Reliability

Cycle Time

Out-of-stock ratio

Inventory Turns

Reducing Errors

Supply Chain Costs

Cash to Cash Cycle

Producer Retailer


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Business Solution


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Business SolutionSource Make Store/Fulfill Store/SellStore


Forecasting

FulfillmentProcurement Make to Stock

Promotion

Assemble to Order

CPFR

Direct Store Delivery

VMIStrategic Sourcing

C-Sourcing

C-Procurement

VMI

Demand Signal Demand Signal

Demand Signal

Demand Signal


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Application Solution


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Application Solution (SAP)Source Make Store/Fulfill Store/SellStore


Demand Planning

Supply Planning

Distribution PlanningProduction Planning

Transportation Management

Strategic

Sourcing

Manufacturing Order Promising & Delivery

Warehouse

Management

Fulfillment Coordination

Collaboration

Services

SupplyChain

Integration

Colla

boration

Services

SupplyC

hain

Integration

Supply Chain Event Management

Supply Chain Performance Management

Materials

Management


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Evolution


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Planning & Execution


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Planning & Execution


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Demand & Supply Planning


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Process Flow


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Planning Horizons

Supply Network Planning (SNP)

Demand Planning (DP)

Production Planning (PP)

Detailed Scheduling (DS)

Deployment

Planning horizon

Transport Load Builder (TLB)


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Capabilities

Demand Planning & Forecasting

Safety Stock

Planning Supply Network Planning

Distribution

Planning Supply Network Col laboration

Statistical Forecasting

Basic Safety

Stock Planning Heuristic

Distribution

Planning Responsive Demand Planning

Causal Forecasting

Advanced Safety

Stock Planning Capacity Leveling

Responsive

Replenishment Responsive Replenishment

Composite Forecasting Optimization Purchase Order Process

Lifecycle Planning Multilevel Supply & Demand Matching

on rac anu ac ur ng

Purchasing

Promotion Planning Subcontracting Release Process

Data Handling Scheduling Agreement Supplier Managed Inventory

Collaborative Demand Planning Aggregated Supply Network Planning Supplier Confirmations

Macro Calculation Supply Chain Analyst Notes

Planning with Bills of Materials Dynamic Replenishment

Characteristics-Based Forecasting Supply Network Inventory

Transfer of Consensus Demand Plan Kanban Process


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Key features Demand Planning -Assess the anticipated customer demand

Safety Stock planning - Secures the delivery by balancing the uncertainties in demand

and supply.

Supply Network Planning - Assigns optimal sources of supply in the complete network,

distributes the production over the plants (including subcontractors), selects the

production resources in the plants, explodes the bill of material, and proposes the

procurement

Distribution Planning - Deploys the available inventory over the network and balances

the stock levels especially in situations of excess inventory or shortages. It optimizes

the loading of the transportation vehicles.

Supply Network Collaboration - Covers all planning processes with direct interaction


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DP Data Views


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DP Forecast Results


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Forecasting Models Univariate Forecasting ( Times Series):

Utilizes only historical data and produces a statistical forecast that

incorporates constant, trend and seasonal patterns.

Causal Forecasting:

Based on causal factors as well as past demand e.g advertising, pricing,

weather, economy etc.

The system uses Multiple Linear Regression ( MLR) to calculate the

influence causal factors (independent variables) have on the history.

Composite Forecasting

Uses a combined approach of both Univariate and Causal techniques


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Forecasting Models -Univariate


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Forecasting Models - Casual


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Macros in DP


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Macros in DP


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Promotion Planning


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Supply Planning Network

OEM VendorBase Factory (FWIP)

Pack Center Supply Warehouse

Factory

DCs Dummy DC

Factory

Supply Warehouse

1

2

3

4


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Supply Network Planning


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SNP Method 1 -Heuristics


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SNP Method 2 -CTM


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SNP Method 3 -Optimizer


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Deployment & TLB


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Safety Stock Planning


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Collaborative Planning with mySAP SCM


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CPFR with mySAP SCM

Enterprise

APO DP

(Demand Planning)

APO SNP

(Supply Network Planning)

APO PP/DS

(Production Planning &

Detailed Scheduling)

APO TP/VS

(Transportation Planning &

Vehicle Scheduling)

Supplier Customer

publish / receive /

collaborate on

sales & order

forecasts

publish / receive /

collaborate on

sales & order

forecasts

collaborate on

transportationrequests

publish

replenishmentplans

& inventory

receive

customer inventorydata

SAP R/3Send PO for

automatic PO

creation

Receive PO for

automatic PO

creation


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R/3 Vs APO Planning


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R/3 Vs APO Planning


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R/3 Vs APO Planning


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R/3 Vs APO Planning


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R/3 Vs APO Planning


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R/3 & APO Demand Planning


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R/3 & APO Supply Planning


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Thank You

supply chain planning with sap

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