New Responsive Replenishment Functionality and RFID-Enabled Supply Chain Execution Processes to Enable Companies to Build More Adaptive Supply Chains
ATLANTA, Ga. — SAP AG (NYSE: SAP) today announced the launch of its latest version of mySAP™ Supply Chain Management (mySAP SCM). With its latest SCM solution, SAP introduces a new responsive replenishment scenario and RFID-enabled (radio frequency identification) supply chain execution processes, which will help enterprises gain better visibility into real-time customer demand and enable them to build more adaptive supply chains. The announcement was made before 6,000 attendees at the 2004 ASUG Annual Conference & Vendor Fair, being held this week in Atlanta, Georgia.
The new responsive replenishment process will enable companies to respond to real-time customer demand, including promotion-driven demand, coupled with the ability for retailers and consumer goods companies to support a fully automated replenishment process on a daily or sub-daily level. This functionality will allow companies to manage their replenishment processes much more efficiently, resulting in reduced inventory levels, shortened order cycle times and improved customer satisfaction. This will also enable them to meet the increasing replenishment requirements created by a growing global market and help them build customer and demand-driven supply networks that can span both SAP and non-SAP IT environments.
Leveraging the SAP® Auto-ID Infrastructure (SAP AII), a component of the SAP NetWeaver™ application and integration platform, SAP’s newest SCM solution will support RFID-enabled execution scenarios within warehouse and logistics processes. These scenarios will allow companies to meet RFID mandates from government agencies as well as major retailers such as Wal-Mart, METRO and Target.
“Our goal at Procter & Gamble has been to build a demand-driven supply chain that delivers the product at the right time, the right place and for the right price,” said Keith Harrison, global product supply officer, Procter & Gamble. “SAP has been instrumental in our efforts to deliver such a demand-driven supply network. It has been a key partner, helping us to establish a global business backbone at P&G over the last decade.”
The latest release of mySAP SCM will also offer enhancements to SAP® Advanced Planning & Optimization (SAP APO) for cross-industry implementation as well as new and enhanced industry-specific functionality. Benefits will include a fully automatic approach for adaptive forecasting and life-cycle planning within the demand-planning functionality. Customers will also be able to use adaptive forecasting to select optimal methods and parameters for each planning object. In the area of supply network planning, planning of subcontracting relationships has been enhanced to support business requirements for increased outsourcing of production capabilities. SAP APO will also offer companies enhanced transportation planning, vehicle scheduling and production planning and detailed scheduling functionality to support requirements for increased adaptive network planning.
“As Dow Corning continues to deliver on its supply chain strategy, SAP’s newest SCM solution will be a key enabler, driving efficiencies and productivity and revolutionizing the concept of adaptive business transactions,” said Lori Schock, global business process manager, supply chain excellence, Dow Corning and ASUG board member. “The objective is to ensure that the solution is simple, seamless and on-demand for our customers and suppliers. The latest version of mySAP SCM will provide the foundation to help us realize this objective.”
Enhanced industry-specific capabilities
The latest version of mySAP SCM provides customers with a number of new and enhanced industry-specific capabilities.
Project manufacturing for the industrial machinery and components (IM&C) industry is a new scenario for machinery manufacturers. This scenario will allow for customer-specific engineering and project- or order-driven manufacturing. Project manufacturing capabilities will enable companies to reduce their lead times and inventory and helps them to increase throughput and on-time-delivery.
Store-level forecasting and replenishment for the retail industry will enable retailers to avoid stock-out situations and improve inventory levels, which will help companies to lower logistics and labor costs.
The SAP® Inventory Collaboration Hub (SAP ICH) component will offer expanded supplier collaboration functionality. This scenario will provide companies with one unified view on design objects, bids and contracts, forecasts, inventory, procurement documents and shipments. Supplier collaboration capabilities will leverage the SAP NetWeaver platform and offer features such as a planning grid to track daily changes in supply and demand, advanced shipping notice support, a built-in alert monitor and master data maintenance. Supplier collaboration will be a completely Web-based offering, which will enable collaborative processes through a single point of access. Together with mySAP™ Supplier Relationship Management (mySAP SRM), mySAP SCM will deliver a complete supplier collaboration solution. The latest version of mySAP SCM has been certified in supporting the VICS (Voluntary Interindustry Commerce Standards) Association CPFR (Collaborative Planning, Forecasting and Replenishment) initiative by eBusiness Ready.
Value for mid-market customers
The need to become more adaptive is not limited to large corporations. By providing a proven, adaptive and scalable supply chain management solution, SAP also delivers value for mid-market customers. Collaboration in areas such as demand chain, inventory management and responsive replenishment has become critical to the success of midsize companies. In addition, midsize companies also recognize the value of being nimble, working seamlessly in a supply chain network and being able to easily add and change partners in the network. Today, nearly 60 percent of all SAP installations are in companies or divisions with annual revenues of less than 500 million U.S. dollars.
High-tech customer NVIDIA® Corporation, a world leader in graphics semiconductors with 1,800 employees, has been using mySAP SCM to streamline its supply chain management processes. “We chose SAP to help us integrate our supply chain planning, execution and analysis,” said Patrick Crotty, senior manager SAP, NVIDIA. “By implementing SAP APO we have been able to reduce our planning cycle times, increase employee productivity and create more efficient business processes. We will continue to expand the SAP footprint with a goal toward improving supply chain visibility and creating a more adaptive business model.”
The latest version of mySAP SCM, available at the end of June 2004, builds on the solution breadth, SAP NetWeaver™ technology and integrated solution capabilities of the previous release of mySAP SCM. The new release will feature enhanced processes within SAP APO, SAP ICH and SAP® Event Management (SAP EM) as well as a tighter integration with supply chain and manufacturing execution applications residing within mySAP™ ERP.
“Companies are increasingly driven by the need to collaborate with their business partners and customers,” said Claus Heinrich, member of the executive board, SAP. “They also need to be more adaptable, that is, they need the ability to respond to and thrive on unexpected change. With our latest version of mySAP SCM we will offer our customers a solution to build a truly adaptive enterprise and enable them to achieve real-world awareness, thus ensuring long-term competitive advantage.”
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