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    Supply Chain Planning With SAP

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    Prakash Mandavia
    1. The document discusses supply chain planning using SAP. It describes the supply chain process and pain points like unreliable demand information and excess inventory. 2. It outlines the business and application solutions provided by SAP to address these issues, including demand and supply planning, strategic sourcing, and collaboration tools. 3. Key components of SAP's supply chain planning solution are described in more detail, such as demand planning, supply network planning, distribution planning, and safety stock planning. Forecasting models and the collaborative planning capabilities are also summarized.

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    Supply Chain Planning With SAP

    Uploaded by

    Prakash Mandavia
    306 views46 pages
    1. The document discusses supply chain planning using SAP. It describes the supply chain process and pain points like unreliable demand information and excess inventory. 2. It outlines the business and application solutions provided by SAP to address these issues, including demand and supply planning, strategic sourcing, and collaboration tools. 3. Key components of SAP's supply chain planning solution are described in more detail, such as demand planning, supply network planning, distribution planning, and safety stock planning. Forecasting models and the collaborative planning capabilities are also summarized.

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    1. The document discusses supply chain planning using SAP. It describes the supply chain process and pain points like unreliable demand information and excess inventory. 2. It outlines the business and application solutions provided by SAP to address these issues, including demand and supply planning, strategic sourcing, and collaboration tools. 3. Key components of SAP's supply chain planning solution are described in more detail, such as demand planning, supply network planning, distribution planning, and safety stock planning. Forecasting models and the collaborative planning capabilities are also summarized.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    306 views46 pages

    Supply Chain Planning With SAP

    Uploaded by

    Prakash Mandavia
    1. The document discusses supply chain planning using SAP. It describes the supply chain process and pain points like unreliable demand information and excess inventory. 2. It outlines the business and application solutions provided by SAP to address these issues, including demand and supply planning, strategic sourcing, and collaboration tools. 3. Key components of SAP's supply chain planning solution are described in more detail, such as demand planning, supply network planning, distribution planning, and safety stock planning. Forecasting models and the collaborative planning capabilities are also summarized.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 46
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    The document discusses supply chain planning using SAP software. It covers supply chain processes and issues, business solutions, and the application solution components in SAP for planning, collaboration, and integration.

    Some of the main pain points discussed are imperfect supplier information, long lead times, unreliable demand information, excess inventory, high costs, and lack of integration between business processes.

    Business solutions discussed include forecasting, procurement, make-to-stock, assemble-to-order, CPFR, VMI, strategic sourcing, and collaboration approaches like c-sourcing and c-procurement.

    1

    Supply Chain Planning with SAP


    2nd Sep, 2005

    Contents
    Supply Chain Process & Pain points Business Solution for Supply Chain Application Solution for Supply Chain Demand & Supply Planning R/3 Vs APO Planning

    Supply Chain Process & Pain points

    Process
    Producer Retailer Wholesaler Supplier

    Service Provider Imperfect supplier information, no global sourcing Long lead times in the entire supply chain

    Consumer

    Pains

    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

    Issues
    Source Make Store/Fulfill Store Store/Sell

    Supplier

    Manufacturer

    Manufacturer DC

    Retailer DC

    Retailer

    High Material Costs

    Poor Supplier Communication

    Low Forecast Accuracy

    Limited Inventory Visibility

    Limited Visibility on Promotions

    High Out-Of-Stock Ratio

    No Reliable Production

    Long Lead Times

    Low Inventory Turns

    High Transportation Costs

    Low Customer Service

    Key Performance Indicators


    Producer Retailer Wholesaler Supplier

    Service Provider

    Consumer

    Key
    Supply Chain Performance Indicators

    Producer
    Product Availability Supply Chain Costs Fill Rates

    Retailer
    Out-of-stock ratio Inventory Turns Reducing Errors Supply Chain Costs Cash to Cash Cycle

    Manufacturing Reliability
    Cycle Time

    Business Solution

    Business Solution
    Source Make Store/Fulfill Store Store/Sell

    Supplier

    Manufacturer

    Manufacturer DC

    Retailer DC

    Retailer

    $
    Demand Signal Demand Signal

    Demand Signal

    Demand Signal

    Strategic Sourcing
    C-Sourcing Procurement C-Procurement

    Forecasting VMI VMI CPFR Make to Stock Assemble to Order Fulfillment

    Promotion

    Direct Store Delivery

    Application Solution

    Application Solution (SAP)


    Source Make Store/Fulfill Store Store/Sell

    Supplier

    Manufacturer

    Manufacturer DC

    Retailer DC

    Retailer

    $
    Supply Chain Integration

    Demand Planning
    Supply Chain Integration Collaboration Services Strategic Sourcing Manufacturing Materials Management Warehouse Management Supply Planning Production Planning Distribution Planning Order Promising & Delivery Fulfillment Coordination Transportation Management

    Collaboration Services

    Supply Chain Event Management Supply Chain Performance Management

    Evolution

    Planning & Execution

    Planning & Execution

    Demand & Supply Planning

    Process Flow

    Planning Horizons
    Planning horizon
    Demand Planning (DP)

    Supply Network Planning (SNP)

    Production Planning (PP) Detailed Scheduling (DS)

    Deployment

    Transport Load Builder (TLB)

    Capabilities
    Demand Planning & Forecasting Statistical Forecasting Causal Forecasting Composite Forecasting Lifecycle Planning Promotion Planning Data Handling Collaborative Demand Planning Macro Calculation Planning with Bills of Materials Characteristics-Based Forecasting Transfer of Consensus Demand Plan Safety Stock Planning Basic Safety Stock Planning Supply Network Planning Heuristic Distribution Planning Distribution Planning Responsive Replenishment Supply Network Collaboration Responsive Demand Planning Responsive Replenishment Purchase Order Process Contract Manufacturing Purchasing Release Process Supplier Managed Inventory Supplier Confirmations Supply Chain Analyst Notes Dynamic Replenishment Supply Network Inventory Kanban Process

    Advanced Safety Stock Planning Capacity Leveling Optimization Multilevel Supply & Demand Matching Subcontracting Scheduling Agreement Aggregated Supply Network Planning

    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

    DP Data Views

    DP Forecast Results

    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

    Forecasting Models

    Forecasting Models -Univariate

    Forecasting Models - Casual

    Macros in DP

    Macros in DP

    Promotion Planning

    Supply Planning Network


    3 DCs

    Dummy DC
    1 4

    Pack Center

    Supply Warehouse

    Supply Warehouse

    Factory

    Base Factory (FWIP)

    OEM Vendor

    Factory

    Supply Network Planning

    Supply Network Planning

    SNP Method 1 -Heuristics

    SNP Method 2 -CTM

    SNP Method 3 -Optimizer

    Deployment & TLB

    Safety Stock Planning

    Collaborative Planning with mySAP SCM

    CPFR with mySAP SCM


    Supplier
    publish / receive / collaborate on sales & order forecasts

    Enterprise
    APO DP
    (Demand Planning)

    Customer
    publish / receive / collaborate on sales & order forecasts

    publish replenishment plans & inventory

    APO SNP
    (Supply Network Planning)

    receive customer inventory data

    APO PP/DS
    (Production Planning & Detailed Scheduling)

    collaborate on transportation requests

    APO TP/VS
    (Transportation Planning & Vehicle Scheduling)

    Receive PO for automatic PO creation

    SAP R/3

    Send PO for automatic PO creation

    R/3 Vs APO Planning

    R/3 Vs APO Planning

    R/3 Vs APO Planning

    R/3 Vs APO Planning

    R/3 Vs APO Planning

    R/3 & APO Demand Planning

    R/3 & APO Supply Planning

    Thank You

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