update on sap supply chain planning scm7 pack1and2

3913 - Update on SAP Supply Chain PlanningEric Simonson & Mike Lipton

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Real Experience. Real Advantage.

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2

Learning Points

APO features in SCM 7.0 Enhancement Pack 1 APO features in SCM 7.0 Enhancement Pack 2Enterprise Inventory Optimization by SmartOps UpdateSupply Chain Response Management by ICON-SCM Update


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APO for AFS Industries* Aggregated Planning

SAP Enhancement Package 1 for SAP APO 7.0 Overview

Enhancements in APO DP, SNP• Improved Chart Engine• Forecast Consumption•Transport Load Builder

Clear-to-Build* Enable an integrated APO SNC scenario to consider supplier confirmation for planning

Fear of Poor CustomerServiceInability to sense and respond to real time demand signals.Lack of

Visibility beyond the four wallsAnticipating the next supply chain disruption is not possible due to lack of visibility.

Globalization & OutsourcingHave resulted in stretched supply chains and increased risk. Timely analysis, response, and resolution of supply chain issues is impossible due to lack of control.

gATP Enhancements* Sub-Items* Inconsistencies with Descriptive Characteristics* Correction report for Sales. * MATP & Remaining Qtys..* BOPIN Enhancements* Performance Enhancements

Direct Shipment* Enable supply chain planning with direct shipping to end customers from vendors and factories


[SAP Enhancement Package 1 for SAP APO 7.0 Direct Shipment Planning / Third Party Order Planning

©

Objective of the new developmentsThe off-shore vendor and off-shore own manufacturing model has grown significantly over the last years led by the fashion, hi-tech, and consumer products industries. Companies increasingly save on transportation and own distribution center handling costs by direct shipping to end customers from vendors and factories. Support of mid-term supply chain planning for third party orders considering forecasting capabilities and finite capacities at the supplier.

VENDOR / FACTORYCUSTOMER- Value Added Services*

and Customization - High visibility - High Collaboration

- Better Service- More efficient transportation

BRAND OWNER- Low costs of co-ordination- Low costs of DC space

Deliver direct to Customer DC or Customer Store

Sales Order Purchase Order

Prerequisite: Business Function SCM_APO_DRS_PLAN & LOG_MM_OM_2 (ECC EhP5) need to be switched on.


[SAP Enhancement Package 1 for SAP APO 7.0 Direct Shipment Planning / Third Party Order Planning

Sales Order Processing with Direct Ship Check

Normal Sales Process*

TP-Purchase Requisitions (unblocked)

Notes:TP = Third Party

Only Single Sourcing for DS Orders supported Vendor location has to be modelled in APODirect Ship Check can be based on Product Group, Customer, Order Size,…

Supply Chain PlanningForecast consumptionCTM planning run

Third Party Order Processing using SAP ERP

Supply Chain Planning using SAP APO CTM

Creation of TP-Purchase Requisitions (blocked)

DS Order Normal SO

Comparison Report TP-Purchase Reqs vs. CTM planned orders

Release of TP-PReq to ERP

Manual Adjustments

Creation of Purchase Order

(*) The normal sales orders are treated in the same way as in previous ERP / SCM releases: They can be transferred to APO and be delivered from a DC


[ SAP Enhancement Package 1 for SAP APO 7.0 Aggregated Planning (AFS)

Prerequisite: Business Function SCM_APO_HIER_AGG_PLAN needs to be switched on

Objective of the new developmentsWith SAP APO 5.0, the concept of aggregated planning has been introduced to SAP APO. Currently, the aggregated planning does not consider the AFS distribution profile and works only correctly if infinite capacity is assumed.With SCM 7.0 EhP1, accurate aggregated planning in SAP APO includes the consideration of the AFS distribution profile, automatic aggregation in CTM and a new dis-aggregation report

Functional EnhancementsTransfer of AFS distribution profile to SAP APO via CIFRelease of Forecasts from DP to SNP / Forecast Consumption

Consideration of AFS distribution profileForecast consumption on aggregated level

CTM EnhancementsAutomatic aggregationConsistent disaggregation

SNP Interactive PlanningOrder changes on aggregated level can be disaggregated according to AFS distribution profile, quotations or demands in the bucket. Pegging information is shown at detailed order level and will be retained.


[ SAP Enhancement Package 1 for SAP APO 7.0Transfer of AFS Distribution Profile to SAP APO

Transfer of AFS distribution profile to SAP APO via CIFAFS size split is transferred to SAP APO hierarchy master data as time-dependent quotaarrangements


[ SAP Enhancement Package 1 for SAP APO 7.0 - CTM

CTM EnhancementsAutomaticAggregation in CTM run (“enhanced aggregated planning“)New Disaggregation report to disaggregate the CTM planning results from header product level to detailed SKU levelThe linkage information (pegging) between detailed and aggregated levels is temporarily saved and a consistent disaggregation is done.


[ SAP Enhancement Package 1 for SAP APO 7.0SNP Interactive Planning

Order changes on aggregated level can be disaggregated according to time-dependent quotations, AFS distribution profile or demands

Pegging information is visibly shown at detailed order level and will be retained


[ SAP Enhancement Package 1 for SAP APO 7.0DP / SNP Chart Engine

Objective of the new developmentsImprove usability of the chart engineEase of chart engine customizing

Functional EnhancementsInteraction between chart and grid: marking of cells in the grid highlight the according points in the chart, and vice versaDisplay of the chart:

– Dynamically setting of start and end period of the chart– Definition of shown periods in the chart independently from the grid– Scalability of the Y-axis ( value axis): set of minimum and maximum value– Show or hide chart legend– The chart can be shown in full screen mode– Inverting of key figure values

Printing of the chartCentral maintenance and transport from chart customizing: report /SAPAPO/MSDP_CHART_CUSTOM to copy and delete chart engine customizing

Prerequisite: Business Function SCM_APO_DP_SNP_CTM needs to be switched on


[ SAP Enhancement Package 1 for SAP APO 7.0 DP /SNP Chart Engine

General Chart Customizing in Design Mode of the Planning Book

Switch Graphic Settings to performgeneral chart customizing


[SAP Enhancement Package 1 for SAP APO 7.0DP Continuous Improvements

Bucket-oriented forecast consumptionThe principle of the bucket-oriented consumption modes is that forecast is only consumed within the specified bucket and forecasts of other periods are unconcerned.

Application Log for Demand Planning (transaction: /sapapo/sdpapplog) to access the standard application logs for:

DP in the backgroundPromotion managementProportional factor calculation.



[SAP Enhancement Package 1 for SAP APO 7.0 -CTM Continuous Improvements

Objective of the new developmentsAvoidance of excess supply caused by lot sizes and lot splitsBetter understanding of CTM results

Functional EnhancementsMerge Orders to avoid excess supply In case Lot Sizing is used in CTM planning excess supply might get generated in upstream operations due to lot splits in downstream operations which is caused e.g. by capacity constraints.

Explanation Tool Prior to today the CTM explanation tool gave insufficient and partly misleading information. With SCM 7.0 EhP1 new explanations are introduced to get a better understanding which issues have caused the capacity, lateness, or partial \ non fulfillment of orders.If the supply element is outside the “threshold for notification” setting in the Explanation Profile, will receive “Order was scheduled with earliness of x hours” message.



[ SAP Enhancement Package 1 for SAP APO 7.0 -CTM Continuous Improvements


[ SAP Enhancement Package 1 for SAP APO 7.0 TLB Continuous Improvements

Objective of the new developmentsBetter usability of TLB

Functional EnhancementsSelection Profile for TLB and TLB run for selected products onlyUsing this feature of product selection only the selected products will be locked, and more than one planner can work on the same transportation lane.



[SAP Enhancement Package 1 for SAP APO 7.0 - GATPObjective of the new developments

Continuous Improvements to gATP basic functions.

Functional EnhancementsSub-Items

– Avoid sub-item creation when the requested product was not changed and the confirmation is in one location.

Inconsistencies with Descriptive Characteristics– Correction report for Sales Orders and Deliveries, SDRQCR21, now will check and correct

inconsistencies with descriptive characteristics. Multilevel available-to-promise (MATP) & Remaining Qtys.

– When creating the remaining requirement on component level of a MATP the checking horizon is used for correlating the results to header level .

Backorder Processing (BOPIN) Enhancements– General enhancements done in the interactive BOP transaction to allow for better navigation such as

search functionality by availability date, Paging buttons enabledPerformance Enhancements

– Reading/Writing to the Planning Area in DP enhanced. Memory consumption down which could lead to a 20-25% improvement.

Multi-item single delivery location (MISL) Enhancements– Validities on Products, Exclusive Rules for Product determination

Prerequisite: Business Function SCM_APO_ATP_1 needs to be switched on


[ Collaborative Supply Planning

Enhanced integration between SAP APO and SAP SNC to support multi-tier and multi product planning and collaboration business scenarios

Supplier submitted ‘Planned Receipts’ in SAP SNC can be used in SAP APO Capable-To-Match (CTM) planning runs to provide a more realistic plan considering near real-time information provided directly by the business partner

Integration is industry independent and suitable for all industries with constraint based planning scenarios


[ Supplier Planning Collaboration - Process Overview


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The 2 Tier Collaboration ProcessCollaboration first happens between OEM and CM for finished products: OEM shares finished product forecast with CM.Collaboration then happens for critical components (and not all components!) between OEM and Component Suppliers: to determine if sufficient component supply is available. Component Suppliers respond back with a supply commit.Collaboration finally happens between OEM and CM for finished products: OEM shares clear to build with CM. CM produces and ships finished products accordingly.

Supplier Planning CollaborationTwo Tier Collaboration


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22

Learning Points



[ Legal Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and/or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, and shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of this document. This limitation shall not apply in cases of intent or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.


[ SAP APO Enhancements in Enhancement Package 2 for SAP APO 7.0

UsabilityImproved usability for Interactive Backorder Processing and Alert MonitorNew Planner’s Home Page as entry point for supply chain plannersRe-designed user interface adopting latest SAP UI technology

SimulationEnhanced flexibility in managing supply chain scenarios and production plansImproved version management


Functional EnhancementsImproved handling of outliers, events & causal effects in Demand PlanningClassification and forecast optimizationEnable availability check during planning runsEnhanced capabilities for process industries in PP/DS Consistency checks for Service Parts Planning



[ APO UI Re-Design

Solution Enhancements

Start on a roadmap to re-design the most relevant interactive screens in SAP APO based on latest UI technology and user experience researchIn EhP2 focus is on re-designing interactive Backorder Processing, Alert Monitoring and introducing a Planner’s Home Page

Key Benefits

Improved usability and user efficiencyBased on latest SAP UI technologyHomogeneous end user experience between APO applications

Enhanced built-in personalization features

SCM 7.0 EhP2 delivers the first step of a new SAP APO user experience


[ APO UI Re-Design – Technology Information

Use of new interactive planning screens requires NetWeaver Business Client 3.5 (NWBC 3.5), either as front-end client or as HTML clientNWBC follows the role paradigm. Planner’s Home Page requires defined user roles e.g. for navigationNew user interfaces are based on SAP NetWeaver WebDynpro UI Technology

Greatly improved personalization functionality in NetWeaver WebDynpro screens allows the user to customize content, structure as well as the overall layout of the screens

SCM 7.0 EhP2 delivers the first step of a new SAP APO user experience


Key Benefits


[ Planner’s Home Page and Alert Worklist


Personalized UI building blocks (Add/Remove/Resize/Move)Better alert overview via user defined Alert Queries – re-designed Alert MonitorEasy check of KPIs for Location Products, Resources, Characteristic Value CombinationsLink favorite reports, notes, and launch favorite selections and applications

Key Benefits

Single APO entry point for plannersImproved user efficiencyQuick access to both APO internal and external information Improved usability accessing Alerts via Planner’s Home Page

Based on latest SAP UI technology

New UI experience for APO users using the Planner’s Home Page


[ Planner’s Home Page and Alert Worklist

One-Click navigation from Planner’s Home Page to alert details or interactive planning transactions


[ Planner’s Home Page – Content Blocks

Content Blocks

Personalization


[ Enhanced Interactive Backorder Processing


Flexible selection of requirements worklist for interactive backorder processingMulti-item backorder processing and true availability checks (including rules-based ATP) for requirementsPrecise and user-driven definition of requirements priorities through flexible sequence definition

Key Benefits

Higher efficiency in re-assigning order confirmations

Display of relevant items in new requirements worklist can be personalizedBetter control of re-assignment results

Improve flexible and efficient handling of backorders


[ Version-Dependent Master Data


New version-dependent fields in Location, Location Product, PPM, Transportation Lane Master DataExtended mass maintenance (MASSD) for the objects mentioned aboveEditable PP/DS Product Data Structure (PDS)Restricted editing capabalities for SNP PDS

Key Benefits

More flexible changes to version-dependent master dataImproved simulation capabilities for Planners in SNP,CTM, and PP/DSPDS is directly editable in APO for SNP (header level) & PP/DS (complete)

Better Simulation Capabilities via Extending the Version Specific MD


[ New Version-Dependent Master Data Fields


[ PDS Edit Matrix

PP/DS SNP CTM

Copy via Version Copy YES YES YES

Copy via CURTO_EDIT YES YES NO

Changes in Active Model (000), Active Version (000) YES* YES** NO

Changes in Active Model (000), Inactive Version YES YES** NO

Changes in Inactive Model, Inactive Version YES NO NO

Inactive Status for the PDS YES NO NO

PDS Type Feature

* No structural changes allowed, only fields that are editable in PDS_MAINT are changeable

** No structural changes allowed, only header fields from PDS_MAINT changeable


[ Partial Version Copy


Enabling copy only parts of the supply chain including master and transactional data based on the defined selectionFiltering (restricting) the supply chain copy based on objects (e.g. production resource, SNP selection profile,...)Easy selection of master data for copyingSame capabilities between VERCOP & MVM

Key Benefits

Improved runtimeLess liveCache memory usage More options to restrict the scope of copy of the supply chain

Allows copying / resulting view of just a certain portion of the supply chain model

Better Simulation Capabilities via Improved Version Copy


[ Demand Planning – Events and Outliers


Separate outlier detection and forecastingEvent type definition for one-time and recurring eventsAutomatic detection of events in history and consideration in forecastVisualization and manual labeling in interactive planning

Key Benefits

Easier correction of history and inclusion of promotions and events in the future due to automation and usability improvements

Improved statistical forecast quality for volatile products e.g. products with frequent promotions

Detect and manage outliers and events with irregular occurance


[ Demand Planning – Forecasting Improvements


Use of seasonality pattern from a higher aggregation levelCombined causal analysis with time series (univariate) forecastingAutomatic causal factor selectionPrice changes handled as a key causal factor

Key Benefits

More accurate forecasting results due to more sophisticated forecasting methodsEnhanced forecast quality for seasonal products and products with strong causal correlation

Improve forecast accuracy by better modeling external impacts


[ Demand Planning – ABC / XYZ Classification and Forecast Optimization


Segmentation of demand planning data based on value (ABC class) and volatility (XYZ class)Define own classes and thresholds for segmentationForecast profile assignment based on classOptimal forecast model selection based on univariate and causal models

Key Benefits

Improved forecasting process using segmentationMore accurate new product forecast due to special consideration for new products as an own classAutomate a more sophisticated forecasting process without high level of skill and intervention needed by the user

Improve quality and automation of forecast parameter determination


[ Invisible Orders Concept for CTM / SNP Optimizer Run


Invisible Order concept allows to keep prior supply elements visible to gATP checks during the planning runsPrior supply elements will be deleted at the end of the planning run before saving the newly created supply elements

Key Benefits

Reliable gATP check results during CTM / SNP Optimizer run Easy setup – one flag in CTM / Optimizer profile

gATP check during SNP Optimizer or CTM run provides better results


[ CTM Supply Consumption


Consume fixed supplies on lower priority path before creating new supply on path with higher priorityConsume components for production on lower priority path before creating new supply on pathwith higher priority

Key Benefits

Better usage of existing inventory and suppliesPeformance will be improved – currently 2 CTM runs are required for achieving the same result Easier CTM profile setup (one instead of two)

Consume existing inventory from entire network before creating new supplies

Explanation:Stock of 100 PC from secondary path (Plant 2) is used-up to fulfill the forecast of 100 PC in the distribution center instead of creating a new supply along the primary path in Plant 1

Distribution Center

Plant 1 Plant 2

Plant 3

Primary Path Secondary Path

Stock = 100

Forecast = 100

Stock = 0


[ APO PP/DS – Functional Enhancements forProcess Industries


Duration/rate change of an activity on the Detailed Scheduling Planning Board without changing the production quantity considering minimum and maximum limitsNew scheduling heuristic to close gaps by stretching the duration of activitiesContinuous and simultaneous fill/drain of containers/tanks

Key Benefits

Support production planning capabilities for process industries Easy change of throughput to avoid projected overflow of tanks or react to short term increase of customer demandBetter insight into planned tank fill levels

Enhanced detailed scheduling capabilities for process industries


[ APO PP/DS – Multi Resource Scheduling Heuristic


A new scheduling heuristic is delivered which enables flexible finite scheduling across alternative modes and alternative sources of supply

Key Benefits

Better compliance to due dates and minimization of set-up timeSupport finite production planning scenarios with all alternative resourcesThe modeling of alternative resources is not only restricted to modes and can also be done by alternative sources of supply

Enhanced detailed scheduling capabilities for multi-resource scenarios

Res. 3 PDS 2 / Mode A

PDS 1 / Mode ARes. 1Res. 2 PDS 1 / Mode B

With Switch periodsand Max. periods

654321

Orders


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44

Learning Points



[ Growing the Business while Satisfying Consumer Demand is Getting Tougher

Linear supply chains have evolving into complex global supply networks

Serving more consumersin more markets

Rising costs and shrinking margins

Growing product and network complexity leading to supply and

demand volatility and risk

Global sourcing and increased risk has lead to increased buffer stocks of inventories and associated costs

Capacity Constraints/Variability

Increasing asset utilization pressures and capacity shortages

Packaging Suppliers

Manufacturers

Retailers

OutsourcedManufacturers Distribution

Centers

Customers

Customers

Customers

CustomersRaw Material Suppliers

Retailers

Distributors


[ Safety Stock \ Inventory Planning Options

Enterprise Inventory Optimization can set safety stock levels (and min/max levels) for raw, intermediate, and finished products at all levels throughout the Supply Chain. This holistic view provides the optimal inventory positioning for the entire Multi-echelon network while talking into account demand variability, supply uncertainty, and production attainment.

Single product, single location

Integrated with SNP planning run

Based on manually entered values from master data (fixed quantities or days supply)

Can be static quantity, or time dependent

SAP SCM or ERP solution

Time-dependent values can accommodate seasonality and promotions

Based on forecast and delivery variability and desired service levels

Considers one location at a time

SAP SCM solution

Balance inventory and service levels

Considers entire network at all levels simultaneously (manufacturing, distribution, supply) to minimize total inventory cost

Supports risk-pooling (reduction in variability of demand at component level by aggregating all end-item demands)

SAP Enterprise Inventory Optimization by SmartOps

Basic SafetyStock Planning

Advanced SafetyStock Planning

Multi-echelonInventory

Optimization

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[ Intelligence Modules leverage existing transactional data to calculate up-to-date planning parameters

Transactional DataForecast errorIdentifying and adjusting for:– Bias– Intermittency– Seasonality– Outliers and missing data

Forecast historySales history

Order dateShip dateReceipt date

Planned productionActual production

Planning Parameters

Lead time mean– In-transit

– Order processing / goods receipt

Lead time variability

Schedule attainment mean

Schedule attainment variability

Demand Intelligence Module

Supply Intelligence Module

Production Intelligence Module

Intelligence Module


[ How Inventory Optimization Complements SAP

Multi-echelonSafety Stock

InventorySegmentation

Service LevelOptimization

VMICustomer DC Central

DC MFG Suppliers

InventoryPolicies

Inventory Optimization

Advanced demand, supply &production variability analysis

Optimal, time-phased inventorypolicies for multi-tier network

Inventory segmentation

SAP SCM & SAP ERP

BasicA,B,C

Segmentation

OptimalService

Level forEvery

Product,Location

Combination

… more layered, multi-tiersupply chains

… more frequentproduct launches

… increasing customerservice expectations


[

Optimize inventory levels to "fix the mix”

Analyze and implement planning parameters that meet longer term service objectives

Improve Customer Service Levels

Improvement Area Benefit Enabler Benefits

5-10% increase in order fill rates and on time delivery

30-50% reduction in out of stocks and order lead time variability

Reduced Inventory and Working Capital

Reduced Production & Distribution Costs

Improve Planner Productivity

Reduce expediting and firefighting

Effectively handle large numbers of low volume SKUs

20-30% reduction in time used in expediting

10-20% reduction time spent on manual inventory planning processes

Transition from push to pull strategies

Reduce over production, excessive storage facilities, and expediting

10-20% reduction in PPE and depreciation due to excess storage facilities

Manage inventory by SKU, location, and planning period

Manage dynamic, integrated demand, supply, production, and inventory analytics and exceptions

15-30% reduction in inventory and working capital

20-40% reduction in inventory carrying and obsolescence costs

EIO Yields Significant Results


[ SAP EIO is the lowest cost, easiest to maintain, and least risk inventory optimization solution to integrate with SAP

Inventory optimization has the potential to create significant and quick benefits through reductions in inventory and increased sales

Integrating inventory optimization to SAP at an enterprise level in a cost effective way has many challenges, which can put not only the value of inventory optimization solutions at risk, but also put the entire business at risk

SAP EIO pre-built integration assets reduce the cost and risk of implementation of implementing inventory optimization

Pre-built assets reduce the implementation effort, making SAP EIO the lowest cost to implement

By leveraging existing master data and proven automated process, SAP EIO is the easiest to maintain

Up-to-date accurate inventory targets over time, produces sustainable results with the least risk to the business


[ SAP EIO Pre-built Integration Assets Reduce the Cost and Risk of Implementation

Lowest CostFaster to implementFewer project resources

Intelligence Modules

Topology Converter

Multi-Stage Inventory

Planning & Optimization

SAP Connector

Source Systems Data Gateway Loader & Validation

Data Gateway

Data Store

APS ERP Extract

Transfer Load

OutputsOutputs

Outputs

Standard SAP Enhancements

Easiest to MaintainLeverages existing dataSustainable automated process

Least RiskProven enterprise integrationAccurate inventory targets over time

Inpu

ts

BusinessObjectsUniverse &

Reports

DW


[ SAP Connector reduces the time and effort to link EIO with ERP and APO

SAP Connector is a library of commonly used and custom BAPIs

Extracts input data from SAP master data tables, including:

Item-material listLocation-plant listSourcingBill-of-materialForecastSalesPurchase ordersPlanned productionActual production

Feeds inventory targets to SAP MM or APO tablesCo-developed by SAP and SmartOps, and updated with SAP upgradesReduces interface development time and effort


[ What’s Coming - New integration functionality provides enhanced connectivity with ECC

Business ObjectivesFacilitate integration to SAP data sourcesMaintain and manage SmartOps data in appropriate system

• SAP when part of material data• SmartOps when system information

New FunctionalityCustomization of ECC to support SmartOps-specific data through an ABAP Add-On

Item-Location (EIO 1)Item-Location-Customer (EIO 2)

Reconfiguration of existing Material BAPI to leverage standardization and improve performanceConfiguration of BAPIs to take advantage of SmartOps data now in SAP

BAPIs for transaction data needed to analytical modules (PIM, SIM)Ability to persist supply chain information and settings across data loads

Integration/Infrastructure


[ BusinessObjects Universe & Reports rapidly deploy supply chain dashboards and ad hoc reporting

Leverage SAP BusinessObjectsEnterprise (BOE) modules

Data universe defined for BOE modulesSupports analytics & reporting needs for essential common workflows

Monitoring of Supply Chain performanceExecutive dashboardsAd hoc reporting

Pre-defined dashboards, include:Demand AnalyticsTarget PerformanceScenario Comparison


[Demand Analytics Dashboard – Review Forecast Error, Bias and Intermittency


[ Inventory Target Performance Dashboard – Demand, Supply, and Inventory at a glance


[ Scenario Comparison Dashboard – Review any Supply Chain Scenario


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58

Learning Points



[ Growing Need for Response Management

Powerful Customers / Distribution Partners

Big Box Retailers: Fulfillment penalties

Fast order turnaround requirements

Long lead times

Offshore Suppliers

Contract Manufacturers / Visibility Challenges

Internal and external capacity constraints

Internal Financial Goals

New Product Introductions

Strategic Priorities

Channelwants to increase /

pull in forecast?

Supplier says delivery will

be late

Supply is short – how to allocate?

Can I chase

supply?

How to protect commits for key

accounts?

Key customer orders exceed

forecast

InternalView


[What is Response Management?

A solution that can quickly answer and respond to changes in the supply chain

• Operationally, against the actual demand/supply situation

• In simulation, against hypothetical situations

Answering critical SCM questions \ what-if in minutes…

How can I fulfill an unexpected customer order or demand?How best to adjust to my disrupted supply?What orders are impacted by my inventory shortage?How much excess inventory will I have if I make this part substitution?What orders from next quarter can I build and ship this quarter?How much capacity do I have, can I add demand or increase capacity?


[SAP Supply Chain Response Management at a glance“Respond to change in during economic uncertainty”

Key Capabilities OfferedOrder-based, operational replanning to adjust for changes to demand and supply

What-If simulation and analysis to resolve real and hypothetical challenges

Responsive planning and what-if analysis to ensure highly efficient demand-supply matching

CharacteristicsFastFinite materials and capacityMulti-tierIntelligent, synchronized supply planningFlexibleTransparent / Explainable


[ SAP Supply Chain Response Management Key Elements

Supply Planning

1. Demand Priority ManagementNets and prepares demand for prioritizationApplies flexible priority rules to demand

2. Supply PlanningMatches supply and demandEfficiently plans deliveries and planned ordersFully pegs through all tiers of supply network

3. What-If Analysis / Transparent & Flexible ReportingOutputs are insightful end-to-end pegging and planning reports

Demand Priority Management

Demand &Supply Plan

Forecasts & Orders

End to End Pegging

What-If Analysis / Transparent & Flexible Reporting

High Speed Solution Engine


[ How does SCRM compare with other planning tools?

SCRM APO/Supply

Network Planning

APO/Capable to

Match

APO/global

Available to Promise

APO/Demand Planning

ERP

Performs Supply Planning

Order-level Order-level Infinite

Performs Demand Rescheduling

Order-level

Performs Allocations Planning

manual

Supports Batch Order Promising

Supports Real-time Order Promising


[ Use Cases

Use Case Description Timeframe

Complement Components

Master Scheduling Derive feasible, balanced multi-site demand/supply plan

APO DP, ERP,(SNC)

Simulation What-if analysis for changes to master or transactional data

APO DP, ERP,(SNC)

Shadow Planning Offline analysis of potential changes to demand/supply across outsourced network

ERP, SNC

Allocations Planning Deriving Allocation levels for enforcement during order promising

APO DP, ERP, APO gATP

Response Management Re-planning to match demand and supply to make short-term supply changes and/or reschedule demand

APO DP, ERP, (SNC)

Build Determination Generate build triggers to internal and/or external manufacturing

ERP

Mid

S h o r t


[ SAP Supply Chain Response Management How Response Management Complements SAP

SAP APO (Advanced Planning)

• Provides demand plan and forecast• Runs tactical supply plans

• Global ATP for real-time order execution

SAP Supply Network Collaboration

• Extends supply requirements to suppliers• Provides VMI requirements and demand

SAP ERP• Provides current orders and demand data for

prioritization• Provides current supply data

• Receives updates & changes from SCRM

SAP Supply Chain Response Mgmt

• Operational re-planning and simulation• Demand prioritization and feasible supply

analysis


[

66

Return on Investment

If applicable, highlight any aspect of your presentation that can contribute to a significant ROI. Omit slide from presentation if necessary.


[

67

Key Learnings

Understand recent changes to SCM-APO for EnhancemnetPackage 1 & 2

Review upcoming improvements to Enterprise Inventory Optimization by SmartOps including Analytics & Integration

Short overeview and update on new version for Supply Chain Response Management by ICON


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update on sap supply chain planning scm7 pack1and2

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