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SAP SCM (APO) Short Overview - Presentation Transcript

SAP SCM - APO Short Overview

Supply Chain Management
Advanced Planner and Optimizer

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- The Supply Chain Management process in SAP
Demand Planning — SCM DP

Supply Network Planning — SCM SNP

Production Planning and Detailed Scheduling — SCM
PPDS

Procurement Planning — SCM PPDS or R3 MRP
The Core Interface — CIF

Comments on other modules

The Supply Chain Management process in SAP

The objective of the Supply Chain Management
process is to ensure that the company has the desired
products available for its customers at the right time
and place, at a minimal cost for the company.

An efficient Supply Chain will enable the company to

have:
9 a higher service level = less shortages = less
customers disappointed = more sales
9 a lower stock level = less cash needed to run
the operations
9 lower operational costs = less emergency
shipments, for instance

The Supply Chain Management process in SAP .

The process starts by forecasting the future sales
(Demand Planning). Then the optimal product
quantities to distribute in the company’s network are
determined (Supply and Network Planning). From this
distribution plan is deduced an ideal production plan
(Production Planning and Detailed Scheduling).
Finally, this production plan is used to source the
required components (Procurement Planning).

These steps are performed in different modules of the
SAP SCM solution (formerly SAP APO — Advanced
Planning and Optimizer), described briefly in the
following slides.

Demand Planning — «

The Demand Planning process is performed in
the SCM DP module.

Its objective is to determine which products are
needed for which customer or location, in which
quantity and on which date.

This is estimated via the process presented in
the following slide, performed periodically
(monthly, weekly... depending on the company
and type of product).

Demand Planning —

   
  

     
     
 
     

  

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forecast
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Supply Network Planning — .

The Supply Network Planning Process is
performed in the SNP module.

Its objective is to plan the stock transfers
needed between the different locations
(factories, warehouses) to reach the target
stock level and fulfill the demand at each of
theselocaflons.

Production Planning and Detailed Scheduling —

 

The Production Planning and Detailed
Scheduling process is performed on each
factory.

Its objective is to determine the optimal
quantities to produce in order to fulfill the
demand, limit overstocks as well as products
set—up time (time lost when switching from a
product to the next).

Production Planning and Detailed Scheduling —

 

By considering the demand on the factory
(Sales orders, forecast, or stock transfers to
warehouses), the target stock level on the
factory, and the production constraints (lot
sizes,...) the Production Planning determines
how much is to be produced for all each product
perpenod.

This is calculated for the Finished Products, anc
then for the intermediary Semi—Finished
Products.

Production Planning and Detailed Scheduling - PPDS TC: %a

Then by performing a , the
different production orders are scheduled
optimally within a period.

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Procurement Planning — or

The last step of the Supply Chain Management
Process is the Procurement Planning.

The objective of this step is to determine the
components to supply in order to be able to
realize the Production Plan.

This process can be performed in the SCM PPDS
module for critical components to be planned in
detail, or in SAP R3 using the Materials
Requirements Planning (MRP) functionality.

The Core Interface — .

SAP SCM and SAP R3 are two different
systems, which need to be integrated.

Some SAP R3 data is sent regularly to SAP
SCM for the Supply Chain Management
process: product master data, sales orders,...
Some SAP SCM data is also sent to SAP R3 to
perform the related execution processes:
production orders, transfer orders,...

The Core Interface (CIF) is the standard
interface between these two environments.

Comments on other modules .

Some other modules are part of SAP SCM
process, and can be implemented depending
on the requirements of the company:

- Global Available to Promise — GATP: to
determine the availability of components or
products

- 'ransport Planning/Vehicle Scheduling —
PVS: to realize the detailed transport plan of
he products