The considerable flexibility of the mySAP SCM Supply Chain Planning solution allows the user to set up company-specific business processes and planning rules. This enables him to reduce his time to value.
mySAP SCM Supply Chain Planning includes three main scenarios that represent the basic planning needs within the supply chain: Collaborative Demand Planning, Collaborative Supply & Distribution Planning and Sales & Operations Planning.
Collaborative Demand Planning
Using collaborative demand planning, the user can leverage all available information to drive forecasting, promotion planning, and demand planning.
Historical data is consolidated in SAP R/3 and can be imported to an SAP Business Information Warehouse (SAP BW) InfoCube. mySAP SCM Demand Planning uses this information to create forecasts and carry out life-cycle planning. For this, a catalog of methods exists, including:
- Statistical methods, like exponential smoothing or linear regression
- Causal analysis of influencing factors (like price or climate conditions) using multiple linear regression
- Composite forecasting to combine different forecasts into one overall forecast
The various methods can be assigned automatically to different data subsets.
Valuable information from any partner can be added via the Internet. This allows to come to agreement on a shared forecast. Promotion planning is performed to include marketing activities, offering further collaboration possibilities with retailers or distributors.
A demand plan is created using all available information. Freely definable macros enable any kind of calculation on the planning grid. This especially enables any kind of data check and the triggering of alerts for planners.
The user refines the demand plan in one of two ways: by collaborative supply and distribution planning within SAP APO, or by using SAP R/3 to execute the approved plans. SAP BW is used for reporting of, for example, forecast accuracy measurements or market trends.
Collaborative Supply & Distribution Planning
With collaborative supply and distribution planning, partners within the supply chain can concurrently plan procurement, manufacturing, and transportation, while integrating all supply chain partners for collaboration.
Based on the demand plan, Safety Stock Planning is carried out first. It enables the user to assign optimal safety stock and target stock levels to all inventories throughout the supply network. The system bases safety stock calculations on lead times, forecast and supply variability, and customer service levels.
Supply Planning tries to satisfy the demands and safety stock requirements in an optimal way, makes decisions about sourcing, spreads production among resources, explodes the bills of material (BOMs), organizes the procurement of semi-finished goods or raw materials, and creates allocations for customers and channels. The user can choos between three basic approaches:
- The Supply Planning heuristic calculates requirements for the sources of the products while taking quota arrangements, lead times, calendars, and lot-sizing rules into account. The user can execute a capacity check after the infinite requirements planning run is completed. This allows the user to quickly determine how planned orders affect his resources and whether or not his plan is feasible. Capacity leveling can eliminate resource overloads.
- The Supply Planning optimizer generates a feasible supply plan with minimal costs, considering all resources and constraints in the supply network. It uses linear optimization and multi-integer linear programming techniques based on simplex-based algorithms and branch and bound methods.
- Capable-to-Match matches a large set of prioritized customer demands (forecasts or orders) to a set of categorized supplies, taking into account the current production and transportation capabilities in a multistage production environment. Capable-to-Match is based on constraint-based propagation techniques and goal-oriented programming.
Distribution Planning consists of deployment, which considers the available products and satisfies the real demands based on flexible rules, and the transport load builder, which fills transport vehicles in an optimal way.
Deployment uses push and pull logic to recommend transports when the available-to-deploy quantity can adequately cover the demand. If demand exceeds supply, deployment uses fair-share logic to fulfill the open sales orders, safety stock, and forecast requirements in an optimal way.
The transport load builder uses the results of the deployment run to create transport orders for multiple products. It ensures that the transportation vehicles are filled to their maximum capacity (regarding volume, weight, and number of pallets) and that no transportation vehicle is dispatched unless it is filled to at least its minimum capacity.
Sales & Operations Planning
The point of origin in this scenario is the creation of a sales plan in SAP Strategic Enterprise Management (SAP SEM), part of mySAP Business Intelligence (mySAP BI). The sales plan allows the user to create marketing activities in the mySAP Customer Relationship Management (mySAP CRM) Marketing Planner to support the fulfillment of these plans. The results are transferred to SAP APO and can be taken into consideration during collaborative demand, supply, and distribution planning.
By reviewing alerts and key performance indicators, the user can consolidate the sales plan and then re-plan marketing activities accordingly. By using the simulation functions of SAP APO, it is possible to evaluate a variety of scenarios using the available sales and marketing plans.
By using mySAP Supply Chain Management to manage the complex and changing flow of information, and by performing timely collaborative supply chain planning, the user can achieve several benefits. Changes in market requirements can be absorbed by leveraging a partner network and adjusting business processes quickly and easily, affording more flexibility to planners. Supply chain partners gain insight into demand, inventory, and capacity information across the extended supply chain network, delivering increased visibility. Optimal plans and operational schedules based on Collaboration can be created. Supply Chain activities can be synchronized internally and externally with plan- and order-driven, real-time execution of supply chain activities.
mySAP SCM Supply Chain Planning provides multiple devices to help matching supply and demand and managing the entire length of your supply chain. This avoids assembling tools from multiple, specialized software packages. This mySAP solution can improve planning quality, model consumer sales behavior and market dynamics, integrate processes that drive planning, share information, and enable collaborative planning with business partners.
Based on the proven expertise in the SAP R/3 client/server technology and real-world business processes, mySAP SCM Supply Chain Planning addresses the specific planning and information requirements of planners in all industries, reliably and effectively.
With mySAP SCM Supply Chain Planning, Carlsberg, for example, achieved a more than 30% reduction in stock and improved the ability to deliver the correct items at the correct times to the correct customers by 20%.
For other examples of organizations that have benefited from mySAP SCM Supply Chain Planning, registered users can visit the SAP Service Marketplace (http://service.sap.com).
Further information on the robust features and efficiencies of supply chain planning with mySAP Supply Chain Management is available at www.SAP.com/solutions/scm and by logging on to the Service Marketplace at http://service.sap.com.