SAP AG 1998 Sapphire Yokohama April 98, APO 1

SAP’s Supply Chain Deliverables

Velrajan Shanmugiah

Sören AppenzellerSAP Japan

Advanced Planner & Optimizer

SAP AG 1998 Sapphire Yokohama April 98, APO 2

APO - the new Supply Chain Solution

Manufacturing DistributionSupplier

INFORMATION FLOW

Retail Outlet Consumer

Supply Chain Optimization

CASH FLOW

TransferTransfer TransferTransfer TransferTransfer TransferTransfer

To enable real time collaborative decision support, advanced planning and optimization based on many constraints.

Complete global solution for the Supply Chain Management

Fully integrated into R/3 Open for any data source and

3rd party product via BAPIs

Real-time decision support Powerful and highly intuitive

graphical frontend High performance through SAP’s

new LiveCache technology

SAP AG 1998 Sapphire Yokohama April 98, APO 3

Empowered by the Business Framework Consistent stable enterprise model Openness through Business APIs (BAPIs) Separate shipment Separate release cycle Separate maintenance

R/2

externalsources

APO APO Advanced Planner Advanced Planner

and Optimizerand Optimizer

BusinessBusinessInformationInformationWarehouseWarehouse

R/3

R/2R/3

R/2R/3

legacysystems

SAP AG 1998 Sapphire Yokohama April 98, APO 4

Data Objects

Supply ChainCockpit

Methods

DemandPlanning

AdvancedPlanning &Scheduling

GlobalATP

liveCache

APO Architecture

APO

SAP AG 1998 Sapphire Yokohama April 98, APO 5

Supply Chain Cockpit Configurable, internet-enabled user interface

to navigate through the supply chain Drill down to document level by automatic

access to OLTP systems Customized views, filters

Supply Chain Engineer Graphic-driven maintenance of extended

supply chain model (plants, distribution centers, constraints, ...)

Supply Chain Alert Monitor Forecasts, plans and schedules Actual status of system Key performance figures Exceptions and problems

APO

BIW

SNP

Demand Planning

PP/DS

SAP AG 1998 Sapphire Yokohama April 98, APO 6

Demand Planning Consensus Forecasting Promotional Planning Life Cycle Management Multi-Model Approach

Exponential Smoothing, Holt Winters, …

Pick the Best Composite Forecasting

Multi-Tier Forecasting Causal Analysis (e.g. MLR) What-If Analysis / Online Simulation Forecast Accuracy Reporting

Forecast simulation

Price

Quantity

-10%

Sales

Profit

SAP AG 1998 Sapphire Yokohama April 98, APO 7

Advanced Planning and Scheduling Supply Network Planning

Production, warehouse, transportation and supplier constraints

Deployment Intelligent allocation of inventory, truck

load building, warehouse handling Production planning

Generation of executable production plans, across multiple plants

Detailed Scheduling Graphical representation Simulative planning & scheduling Industry- and task-specific algorithms

and heuristics

10

30

20

10 20

SAP AG 1998 Sapphire Yokohama April 98, APO 8

Global ATP

Very high performance Global ATP-Server Multi-level ATP-check

by simulating and loading order by checking against aggregated

uncommitted capacity calculated from current plan

additional check against allocations Rule-based ATP strategy

plant substitution product substitution

Customer Order End Item

Change of Location

Alternative Component

BO

M E

xplo

sion 1

23

4

Rules

SAP AG 1998 Sapphire Yokohama April 98, APO 9

APO: Global Roll-Out

Establishing Pilot Program and Supply Chain Customer Advisory Council

Establishing Solution Center Asia, and Europe, Latin America and the U.S.

Shipment to pilot customers

First customer shipment

General availability

Nov. ‘97- April ‘98

July ‘98

Sept. ‘98

April ‘98 - Sept. ‘98

End ‘98

SAP AG 1998 Sapphire Yokohama April 98, APO 10

Screencams

APO

Supply Chain CockpitModeling the Supply Network Plan

Navigating and customizing the Cockpit

Drilling down to applications level

The Supply Network Plan, drilling down to Detailed Scheduling

The Alert Monitor - key performance figures and the BIW

The Alert Monitor - accessing PP/PS via drill down

Demand Planning Multi Linear Regression

Advanced Planning and SchedulingProcess Scheduling

Detailed Scheduling

Distribution Resource Planning

Global Available to PromiseRulebased ATP