8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 110

SAP Solution Brief

SAP Supply Chain Management

SAP Enterprise Inventory and Service-Level Optimization

Meet Inventory and Service-Level

Goals with Prescribed Activities

from SAPreg Software

BenetsSolutionObjectives Quick Facts

copy 2

0 1 3 S A P A G o r a n S A P a f l i a t e c o

m p a n y A

l l r i g h t s r e s e r v e d

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 210

2 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Objectives

Manage complex supply chains andmeet service commitmentsBy tightening control of corporate inventories you can reduce costs and

improve supply chain performance but you must maintain sucient inventory

to satisfy customer service requirements To strike the right balance you

need enterprise tools that deliver the insight that can help you make smart

decisions and increase supply chain proftability

The SAPreg Enterprise Inventory and Service-

Level Optimization application prescribes activ-

ity that helps you balance protable service

with best inventory levels by providing insight

into the inventory drivers in your multistage

supply chain You can more eectively plan

and manage inventory levels at every stocking

location throughout your global supply chain

The software helps you analyze crucial inputs

and signals model the impact of decisions onglobal inventories and balance inventory levels

By better understanding demand patterns

and supply uncertainties you can determine

the appropriate service levels by item customer

and location

You can use the application with data from

your existing SAP software or you can use it

on a stand-alone basis Whether you optimize

inventory planning for nished products inter-

mediates raw materials or your full supply

chain the application helps you dynamicallylink inventory investment with your customer

service goals

Manage complex supply chains and meet

service commitments

Benets Quick FactsSolution

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 310

3 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Optimize service-level targets basedon proftabilityBeyond ABC segmentation SAP Enterprise

Inventory and Service-Level Optimization can

establish service-level targets that reect the

protability of an item location or customer

You can prioritize inventory investments for the

most protable stock-keeping units (SKUs) and

customers In this way the application helps

you meet global service-level targets whilesimultaneously minimizing inventory cost and

maximizing revenue

This software also oers powerful intuitive ana-

lytics features that help you pinpoint the multi-

ple drivers that aect both inventory costs and

service levels By modeling all relevant drivers

of inventory requirements and lost revenues

ndash such as sales volume demand volatility lead

times and capacity constraints ndash the software

helps you set optimal inventory levels by itemand location The information produced by this

application can help you increase customer

service levels reduce inventory and increase

forecast accuracy so you can maintain precise

inventory levels

Strike the right balance between

customer satisfaction and protabilitySAP software can help

Optimize service-level targets based on

proftability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Solution BenetsObjectives Quick Facts

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 410

4 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Gain insight into customer demandA sales forecast is not a guess By the time

the sales forecast is received by the supply

chain group it is a rm formal requirement

think of your forecast as supply chain march-

ing orders to make a specic product available

for sale in a set quantity place and time period

Knowing the characteristics of that salesforecast compared with actual supply chain

conditions can greatly improve your ability

to meet customer demand For that purpose

SAP Enterprise Inventory and Service-Level

Optimization provides sophisticated demand

intelligence tools By calculating forecast char-

acteristics at a granular level ndash such as item

location and customer ndash the application sup-

ports more accurate rightsizing than traditional

approaches This feature helps you meet

demand while eliminating excess inventory

The SAP software can detect and compensate

for biased forecasting where orders are above

or below logical estimates It also works with

sporadic intermittent and seasonal demand

The application supports multiple-lag forecasts

With sophisticated supply chains the software

can automatically detect which forecast lag to

use based on lead times within the supply chain

It can accommodate periods of missing data

and uses statistical methods to exclude outliers

such as one-o and erroneous events from

error analysis

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Continued on next page

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 210

2 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Objectives

Manage complex supply chains andmeet service commitmentsBy tightening control of corporate inventories you can reduce costs and

improve supply chain performance but you must maintain sucient inventory

to satisfy customer service requirements To strike the right balance you

need enterprise tools that deliver the insight that can help you make smart

decisions and increase supply chain proftability

The SAPreg Enterprise Inventory and Service-

Level Optimization application prescribes activ-

ity that helps you balance protable service

with best inventory levels by providing insight

into the inventory drivers in your multistage

supply chain You can more eectively plan

and manage inventory levels at every stocking

location throughout your global supply chain

The software helps you analyze crucial inputs

and signals model the impact of decisions onglobal inventories and balance inventory levels

By better understanding demand patterns

and supply uncertainties you can determine

the appropriate service levels by item customer

and location

You can use the application with data from

your existing SAP software or you can use it

on a stand-alone basis Whether you optimize

inventory planning for nished products inter-

mediates raw materials or your full supply

chain the application helps you dynamicallylink inventory investment with your customer

service goals

Manage complex supply chains and meet

service commitments

Benets Quick FactsSolution

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 310

3 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Optimize service-level targets basedon proftabilityBeyond ABC segmentation SAP Enterprise

Inventory and Service-Level Optimization can

establish service-level targets that reect the

protability of an item location or customer

You can prioritize inventory investments for the

most protable stock-keeping units (SKUs) and

customers In this way the application helps

you meet global service-level targets whilesimultaneously minimizing inventory cost and

maximizing revenue

This software also oers powerful intuitive ana-

lytics features that help you pinpoint the multi-

ple drivers that aect both inventory costs and

service levels By modeling all relevant drivers

of inventory requirements and lost revenues

ndash such as sales volume demand volatility lead

times and capacity constraints ndash the software

helps you set optimal inventory levels by itemand location The information produced by this

application can help you increase customer

service levels reduce inventory and increase

forecast accuracy so you can maintain precise

inventory levels

Strike the right balance between

customer satisfaction and protabilitySAP software can help

Optimize service-level targets based on

proftability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Solution BenetsObjectives Quick Facts

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 410

4 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Gain insight into customer demandA sales forecast is not a guess By the time

the sales forecast is received by the supply

chain group it is a rm formal requirement

think of your forecast as supply chain march-

ing orders to make a specic product available

for sale in a set quantity place and time period

Knowing the characteristics of that salesforecast compared with actual supply chain

conditions can greatly improve your ability

to meet customer demand For that purpose

SAP Enterprise Inventory and Service-Level

Optimization provides sophisticated demand

intelligence tools By calculating forecast char-

acteristics at a granular level ndash such as item

location and customer ndash the application sup-

ports more accurate rightsizing than traditional

approaches This feature helps you meet

demand while eliminating excess inventory

The SAP software can detect and compensate

for biased forecasting where orders are above

or below logical estimates It also works with

sporadic intermittent and seasonal demand

The application supports multiple-lag forecasts

With sophisticated supply chains the software

can automatically detect which forecast lag to

use based on lead times within the supply chain

It can accommodate periods of missing data

and uses statistical methods to exclude outliers

such as one-o and erroneous events from

error analysis

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Continued on next page

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 310

3 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Optimize service-level targets basedon proftabilityBeyond ABC segmentation SAP Enterprise

Inventory and Service-Level Optimization can

establish service-level targets that reect the

protability of an item location or customer

You can prioritize inventory investments for the

most protable stock-keeping units (SKUs) and

customers In this way the application helps

you meet global service-level targets whilesimultaneously minimizing inventory cost and

maximizing revenue

This software also oers powerful intuitive ana-

lytics features that help you pinpoint the multi-

ple drivers that aect both inventory costs and

service levels By modeling all relevant drivers

of inventory requirements and lost revenues

ndash such as sales volume demand volatility lead

times and capacity constraints ndash the software

helps you set optimal inventory levels by itemand location The information produced by this

application can help you increase customer

service levels reduce inventory and increase

forecast accuracy so you can maintain precise

inventory levels

Strike the right balance between

customer satisfaction and protabilitySAP software can help

Optimize service-level targets based on

proftability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Solution BenetsObjectives Quick Facts

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 410

4 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Gain insight into customer demandA sales forecast is not a guess By the time

the sales forecast is received by the supply

chain group it is a rm formal requirement

think of your forecast as supply chain march-

ing orders to make a specic product available

for sale in a set quantity place and time period

Knowing the characteristics of that salesforecast compared with actual supply chain

conditions can greatly improve your ability

to meet customer demand For that purpose

SAP Enterprise Inventory and Service-Level

Optimization provides sophisticated demand

intelligence tools By calculating forecast char-

acteristics at a granular level ndash such as item

location and customer ndash the application sup-

ports more accurate rightsizing than traditional

approaches This feature helps you meet

demand while eliminating excess inventory

The SAP software can detect and compensate

for biased forecasting where orders are above

or below logical estimates It also works with

sporadic intermittent and seasonal demand

The application supports multiple-lag forecasts

With sophisticated supply chains the software

can automatically detect which forecast lag to

use based on lead times within the supply chain

It can accommodate periods of missing data

and uses statistical methods to exclude outliers

such as one-o and erroneous events from

error analysis

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Continued on next page

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 410

4 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Gain insight into customer demandA sales forecast is not a guess By the time

the sales forecast is received by the supply

chain group it is a rm formal requirement

think of your forecast as supply chain march-

ing orders to make a specic product available

for sale in a set quantity place and time period

Knowing the characteristics of that salesforecast compared with actual supply chain

conditions can greatly improve your ability

to meet customer demand For that purpose

SAP Enterprise Inventory and Service-Level

Optimization provides sophisticated demand

intelligence tools By calculating forecast char-

acteristics at a granular level ndash such as item

location and customer ndash the application sup-

ports more accurate rightsizing than traditional

approaches This feature helps you meet

demand while eliminating excess inventory

The SAP software can detect and compensate

for biased forecasting where orders are above

or below logical estimates It also works with

sporadic intermittent and seasonal demand

The application supports multiple-lag forecasts

With sophisticated supply chains the software

can automatically detect which forecast lag to

use based on lead times within the supply chain

It can accommodate periods of missing data

and uses statistical methods to exclude outliers

such as one-o and erroneous events from

error analysis

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Continued on next page

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 510

5 9copy 2013 SAP AG or an SAP aliate company All rights reserved

The applicationrsquos sophisticated functionality

helps you characterize forecast errors and cal-

culate safety stock requirements The software

also considers regular operational variances

when setting safety stock levels

Dashboards provide information on forecast

bias error and intermittency so you can detect

and correct root causes Analysts can use dash-

boards to view demand analytics through histo-

grams averages and drill-downs at the specic

SKU level enabling advanced forecast and

sales analysis

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities Increase service without compromising

protability SAP software helps you

optimize service levels and minimize

inventory costs

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 610

6 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Calculate actual lead times and

lead-time variabilityThe SAP software provides intelligence that

helps you calculate supply variability more

accurately and reduce safety stock without

compromising fulllment

To help determine the appropriate safety

stock for your extended supply chain use the

software to calculate mean lead time lead timevariability mean production schedule attain-

ment and variability based on purchase and

production orders Item- and location-level

granularity helps you make better tactical deci-

sions when setting inventory targets The soft-

ware can also take inputs from areas ndash including

yield schedule attainment losses and late

deliveries ndash so you can better calculate buer

stocks and improve service levels

Analytic dashboards help users see where prob-

lems are occurring in the supply chain Dash-

boards clearly compare lead time errors and

deltas to planned lead times They can also iden-tify the cost of schedule attainment problems

and estimate potential savings from specic

process improvements

The software also compares historical produc-

tion orders with actual production data helping

you meet schedules and adhere to plans

Less is more Trim your inventory levels and reduce

working capital requirements with supplier

intelligence from SAP software

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710

7 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Determine optimal safety stock

quantitiesSAP software helps you ensure that the right

products are at the right place at the right time

By using the software to optimize safety stock

quantities you can drive supply planning maxi-

mize customer service levels and minimize

working capital investments

SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply

chain view enabling you to plan for the entire

supply chain at once The software captures

interactions in multi-echelon supply chains

with high volumes and complexities synchro-

nizing inventory deployment throughout your

extended supply chain By leveraging predic-

tive analytics and advanced rened stochastic

algorithms the software can help you enhance

supply chain visibility

The application accurately accounts for multi-

stage dependencies capacity constraints and

supply and demand variability It optimizes theinventory mix between nished goods raw mate-

rials and location You can also analyze a large

number of inuencing factors including batch

sizes minimum production runs lead time

changes and product cost changes

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you

need to satisfy customers

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810

8 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Balance service with inventory levels

and costsSAP Enterprise Inventory and Service-Level

Optimization helps supply chain organizations

enhance operational targets increase produc-

tivity free up working capital and increase

customer satisfaction and loyalty By provid-

ing detailed insight and the power to perform

what-if analysis the software helps you real-

ize key business benets including bull Increased sales ndash by ne-tuning inventory

and service levels so that goods are available

when and where customers demand them

bull Reduced inventory levels and increased

working capital ndash by gaining insights into

the network and supply chain

bull Decreased production and distribution

costs ndash by reducing safety stock and

improving demand planning

bull Reduced out-of-stock situations and

lower inventory costs ndash through enhanced

supplier intelligence

bull Enhanced customer satisfaction ndash by

consistently meeting your promisedservice-level agreements

bull Improved supply chain proftability ndash by

increasing revenue and reducing inventory

costs

bull Improved planner and organizational

productivity ndash by recommending specic

actions to help achieve goals

Balance service with inventory levels and

costs

BeneftsSolutionObjectives Quick Facts

Lower inventory with improved customer

satisfaction You can realize both goals with

software from SAP

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910

9 9

Summary

To manage your multistage supply chainwhile meeting customer service commitments

you need software that delivers supply and

demand insight The SAPreg Enterprise Inventory

and Service-Level Optimization application

gives you insight recommending the specic

actions needed to balance service with inven-

tory levels and costs Plan and manage inventory

with detailed information that helps you under-

stand demand patterns and supply constraints

Objectives

bull Improve supply chain performance

by tightening inventories

bull Enhance customer service without driving

up costs

bull Optimize inventory planning at every stocking

location and item level

bull Balance inventory investment customer

service and protability

Solution

bull Powerful analytics to model inventory driversand set optimal service-level targets

bull Demand intelligence tools to gain insight into

customer requirements

bull Supplier intelligence features to understand

supply variability

bull Holistic supply chain view that simplies

inventory planning

Benefts

bull Reduced inventory and increased workingcapital through supply chain insights

bull Enhanced customer satisfaction by meeting

service-level agreements

bull Improved supply chain protability through

increased revenue and reduced inventory

costs

Learn more

Call SAP today or visit us at

www54sapcomsolutionlobscmsoftware inventory-managementindexhtml

wwwsapcomQuick FactsBenetsSolutionObjectives

CMP27098 (1309)

copy 2013 SAP AG or an SAP aliate company All rights reserved

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 610

6 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Calculate actual lead times and

lead-time variabilityThe SAP software provides intelligence that

helps you calculate supply variability more

accurately and reduce safety stock without

compromising fulllment

To help determine the appropriate safety

stock for your extended supply chain use the

software to calculate mean lead time lead timevariability mean production schedule attain-

ment and variability based on purchase and

production orders Item- and location-level

granularity helps you make better tactical deci-

sions when setting inventory targets The soft-

ware can also take inputs from areas ndash including

yield schedule attainment losses and late

deliveries ndash so you can better calculate buer

stocks and improve service levels

Analytic dashboards help users see where prob-

lems are occurring in the supply chain Dash-

boards clearly compare lead time errors and

deltas to planned lead times They can also iden-tify the cost of schedule attainment problems

and estimate potential savings from specic

process improvements

The software also compares historical produc-

tion orders with actual production data helping

you meet schedules and adhere to plans

Less is more Trim your inventory levels and reduce

working capital requirements with supplier

intelligence from SAP software

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710

7 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Determine optimal safety stock

quantitiesSAP software helps you ensure that the right

products are at the right place at the right time

By using the software to optimize safety stock

quantities you can drive supply planning maxi-

mize customer service levels and minimize

working capital investments

SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply

chain view enabling you to plan for the entire

supply chain at once The software captures

interactions in multi-echelon supply chains

with high volumes and complexities synchro-

nizing inventory deployment throughout your

extended supply chain By leveraging predic-

tive analytics and advanced rened stochastic

algorithms the software can help you enhance

supply chain visibility

The application accurately accounts for multi-

stage dependencies capacity constraints and

supply and demand variability It optimizes theinventory mix between nished goods raw mate-

rials and location You can also analyze a large

number of inuencing factors including batch

sizes minimum production runs lead time

changes and product cost changes

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you

need to satisfy customers

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810

8 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Balance service with inventory levels

and costsSAP Enterprise Inventory and Service-Level

Optimization helps supply chain organizations

enhance operational targets increase produc-

tivity free up working capital and increase

customer satisfaction and loyalty By provid-

ing detailed insight and the power to perform

what-if analysis the software helps you real-

ize key business benets including bull Increased sales ndash by ne-tuning inventory

and service levels so that goods are available

when and where customers demand them

bull Reduced inventory levels and increased

working capital ndash by gaining insights into

the network and supply chain

bull Decreased production and distribution

costs ndash by reducing safety stock and

improving demand planning

bull Reduced out-of-stock situations and

lower inventory costs ndash through enhanced

supplier intelligence

bull Enhanced customer satisfaction ndash by

consistently meeting your promisedservice-level agreements

bull Improved supply chain proftability ndash by

increasing revenue and reducing inventory

costs

bull Improved planner and organizational

productivity ndash by recommending specic

actions to help achieve goals

Balance service with inventory levels and

costs

BeneftsSolutionObjectives Quick Facts

Lower inventory with improved customer

satisfaction You can realize both goals with

software from SAP

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910

9 9

Summary

To manage your multistage supply chainwhile meeting customer service commitments

you need software that delivers supply and

demand insight The SAPreg Enterprise Inventory

and Service-Level Optimization application

gives you insight recommending the specic

actions needed to balance service with inven-

tory levels and costs Plan and manage inventory

with detailed information that helps you under-

stand demand patterns and supply constraints

Objectives

bull Improve supply chain performance

by tightening inventories

bull Enhance customer service without driving

up costs

bull Optimize inventory planning at every stocking

location and item level

bull Balance inventory investment customer

service and protability

Solution

bull Powerful analytics to model inventory driversand set optimal service-level targets

bull Demand intelligence tools to gain insight into

customer requirements

bull Supplier intelligence features to understand

supply variability

bull Holistic supply chain view that simplies

inventory planning

Benefts

bull Reduced inventory and increased workingcapital through supply chain insights

bull Enhanced customer satisfaction by meeting

service-level agreements

bull Improved supply chain protability through

increased revenue and reduced inventory

costs

Learn more

Call SAP today or visit us at

www54sapcomsolutionlobscmsoftware inventory-managementindexhtml

wwwsapcomQuick FactsBenetsSolutionObjectives

CMP27098 (1309)

copy 2013 SAP AG or an SAP aliate company All rights reserved

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710

7 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Determine optimal safety stock

quantitiesSAP software helps you ensure that the right

products are at the right place at the right time

By using the software to optimize safety stock

quantities you can drive supply planning maxi-

mize customer service levels and minimize

working capital investments

SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply

chain view enabling you to plan for the entire

supply chain at once The software captures

interactions in multi-echelon supply chains

with high volumes and complexities synchro-

nizing inventory deployment throughout your

extended supply chain By leveraging predic-

tive analytics and advanced rened stochastic

algorithms the software can help you enhance

supply chain visibility

The application accurately accounts for multi-

stage dependencies capacity constraints and

supply and demand variability It optimizes theinventory mix between nished goods raw mate-

rials and location You can also analyze a large

number of inuencing factors including batch

sizes minimum production runs lead time

changes and product cost changes

BenetsSolutionObjectives Quick Facts

Optimize service-level targets based on

protability

Gain insight into customer demand

Calculate actual lead times and

lead-time variability

Determine optimal safety stock

quantities

Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you

need to satisfy customers

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810

8 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Balance service with inventory levels

and costsSAP Enterprise Inventory and Service-Level

Optimization helps supply chain organizations

enhance operational targets increase produc-

tivity free up working capital and increase

customer satisfaction and loyalty By provid-

ing detailed insight and the power to perform

what-if analysis the software helps you real-

ize key business benets including bull Increased sales ndash by ne-tuning inventory

and service levels so that goods are available

when and where customers demand them

bull Reduced inventory levels and increased

working capital ndash by gaining insights into

the network and supply chain

bull Decreased production and distribution

costs ndash by reducing safety stock and

improving demand planning

bull Reduced out-of-stock situations and

lower inventory costs ndash through enhanced

supplier intelligence

bull Enhanced customer satisfaction ndash by

consistently meeting your promisedservice-level agreements

bull Improved supply chain proftability ndash by

increasing revenue and reducing inventory

costs

bull Improved planner and organizational

productivity ndash by recommending specic

actions to help achieve goals

Balance service with inventory levels and

costs

BeneftsSolutionObjectives Quick Facts

Lower inventory with improved customer

satisfaction You can realize both goals with

software from SAP

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910

9 9

Summary

To manage your multistage supply chainwhile meeting customer service commitments

you need software that delivers supply and

demand insight The SAPreg Enterprise Inventory

and Service-Level Optimization application

gives you insight recommending the specic

actions needed to balance service with inven-

tory levels and costs Plan and manage inventory

with detailed information that helps you under-

stand demand patterns and supply constraints

Objectives

bull Improve supply chain performance

by tightening inventories

bull Enhance customer service without driving

up costs

bull Optimize inventory planning at every stocking

location and item level

bull Balance inventory investment customer

service and protability

Solution

bull Powerful analytics to model inventory driversand set optimal service-level targets

bull Demand intelligence tools to gain insight into

customer requirements

bull Supplier intelligence features to understand

supply variability

bull Holistic supply chain view that simplies

inventory planning

Benefts

bull Reduced inventory and increased workingcapital through supply chain insights

bull Enhanced customer satisfaction by meeting

service-level agreements

bull Improved supply chain protability through

increased revenue and reduced inventory

costs

Learn more

Call SAP today or visit us at

www54sapcomsolutionlobscmsoftware inventory-managementindexhtml

wwwsapcomQuick FactsBenetsSolutionObjectives

CMP27098 (1309)

copy 2013 SAP AG or an SAP aliate company All rights reserved

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810

8 9copy 2013 SAP AG or an SAP aliate company All rights reserved

Balance service with inventory levels

and costsSAP Enterprise Inventory and Service-Level

Optimization helps supply chain organizations

enhance operational targets increase produc-

tivity free up working capital and increase

customer satisfaction and loyalty By provid-

ing detailed insight and the power to perform

what-if analysis the software helps you real-

ize key business benets including bull Increased sales ndash by ne-tuning inventory

and service levels so that goods are available

when and where customers demand them

bull Reduced inventory levels and increased

working capital ndash by gaining insights into

the network and supply chain

bull Decreased production and distribution

costs ndash by reducing safety stock and

improving demand planning

bull Reduced out-of-stock situations and

lower inventory costs ndash through enhanced

supplier intelligence

bull Enhanced customer satisfaction ndash by

consistently meeting your promisedservice-level agreements

bull Improved supply chain proftability ndash by

increasing revenue and reducing inventory

costs

bull Improved planner and organizational

productivity ndash by recommending specic

actions to help achieve goals

Balance service with inventory levels and

costs

BeneftsSolutionObjectives Quick Facts

Lower inventory with improved customer

satisfaction You can realize both goals with

software from SAP

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910

9 9

Summary

To manage your multistage supply chainwhile meeting customer service commitments

you need software that delivers supply and

demand insight The SAPreg Enterprise Inventory

and Service-Level Optimization application

gives you insight recommending the specic

actions needed to balance service with inven-

tory levels and costs Plan and manage inventory

with detailed information that helps you under-

stand demand patterns and supply constraints

Objectives

bull Improve supply chain performance

by tightening inventories

bull Enhance customer service without driving

up costs

bull Optimize inventory planning at every stocking

location and item level

bull Balance inventory investment customer

service and protability

Solution

bull Powerful analytics to model inventory driversand set optimal service-level targets

bull Demand intelligence tools to gain insight into

customer requirements

bull Supplier intelligence features to understand

supply variability

bull Holistic supply chain view that simplies

inventory planning

Benefts

bull Reduced inventory and increased workingcapital through supply chain insights

bull Enhanced customer satisfaction by meeting

service-level agreements

bull Improved supply chain protability through

increased revenue and reduced inventory

costs

Learn more

Call SAP today or visit us at

www54sapcomsolutionlobscmsoftware inventory-managementindexhtml

wwwsapcomQuick FactsBenetsSolutionObjectives

CMP27098 (1309)

copy 2013 SAP AG or an SAP aliate company All rights reserved

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910

9 9

Summary

To manage your multistage supply chainwhile meeting customer service commitments

you need software that delivers supply and

demand insight The SAPreg Enterprise Inventory

and Service-Level Optimization application

gives you insight recommending the specic

actions needed to balance service with inven-

tory levels and costs Plan and manage inventory

with detailed information that helps you under-

stand demand patterns and supply constraints

Objectives

bull Improve supply chain performance

by tightening inventories

bull Enhance customer service without driving

up costs

bull Optimize inventory planning at every stocking

location and item level

bull Balance inventory investment customer

service and protability

Solution

bull Powerful analytics to model inventory driversand set optimal service-level targets

bull Demand intelligence tools to gain insight into

customer requirements

bull Supplier intelligence features to understand

supply variability

bull Holistic supply chain view that simplies

inventory planning

Benefts

bull Reduced inventory and increased workingcapital through supply chain insights

bull Enhanced customer satisfaction by meeting

service-level agreements

bull Improved supply chain protability through

increased revenue and reduced inventory

costs

Learn more

Call SAP today or visit us at

www54sapcomsolutionlobscmsoftware inventory-managementindexhtml

wwwsapcomQuick FactsBenetsSolutionObjectives

CMP27098 (1309)

copy 2013 SAP AG or an SAP aliate company All rights reserved

8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf

httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010

copy 2013 SAP AG or an SAP a liate company All rights reserved

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