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Supply Chain Planning with SAP2ndSep, 2005
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Contents
Supply Chain Process & Pain points
Business Solution for Supply Chain
Application Solution for Supply Chain
Demand & Supply Planning
R/3 Vs APO Planning
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Supply Chain Process & Pain points
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Process
Imperfect supplier information, no global sourcing
Long lead times in the entire supply chain
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
Supplier
Producer
Service Provider
Wholesaler
Retailer
Consumer
Pains
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Issues
Source Make Store/Fulfill Store/SellStore
Low Inventory
Turns
Limited
Inventory
Visibility
High
Transportation
Costs
High
Material Costs
Low Customer
Service
High
Out-Of-Stock
Ratio
Long
Lead Times
Low Forecast
Accuracy
Limited
Visibility on
Promotions
Poor
Supplier
Communication
No Reliable
Production
Supplier Manufacturer Manufacturer DC Retailer DC Retailer
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Supplier
Producer
Service Provider
Wholesaler
Retailer
Consumer
Key Performance Indicators
Key
Supply Chain
Performance
Indicators
Product AvailabilitySupply Chain Costs
Fill Rates
Manufacturing Reliability
Cycle Time
Out-of-stock ratio
Inventory Turns
Reducing Errors
Supply Chain Costs
Cash to Cash Cycle
Producer Retailer
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Business Solution
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Business SolutionSource Make Store/Fulfill Store/SellStore
Supplier Manufacturer Manufacturer DC Retailer DC Retailer
Forecasting
FulfillmentProcurement Make to Stock
Promotion
Assemble to Order
CPFR
Direct Store Delivery
VMIStrategic Sourcing
C-Sourcing
C-Procurement
VMI
Demand Signal Demand Signal
Demand Signal
Demand Signal
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Application Solution
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Application Solution (SAP)Source Make Store/Fulfill Store/SellStore
Supplier Manufacturer Manufacturer DC Retailer DC Retailer
Demand Planning
Supply Planning
Distribution PlanningProduction Planning
Transportation Management
Strategic
Sourcing
Manufacturing Order Promising & Delivery
Warehouse
Management
Fulfillment Coordination
Collaboration
Services
SupplyChain
Integration
Colla
boration
Services
SupplyC
hain
Integration
Supply Chain Event Management
Supply Chain Performance Management
Materials
Management
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Evolution
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Planning & Execution
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Planning & Execution
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Demand & Supply Planning
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Process Flow
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Planning Horizons
Supply Network Planning (SNP)
Demand Planning (DP)
Production Planning (PP)
Detailed Scheduling (DS)
Deployment
Planning horizon
Transport Load Builder (TLB)
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Capabilities
Demand Planning & Forecasting
Safety Stock
Planning Supply Network Planning
Distribution
Planning Supply Network Col laboration
Statistical Forecasting
Basic Safety
Stock Planning Heuristic
Distribution
Planning Responsive Demand Planning
Causal Forecasting
Advanced Safety
Stock Planning Capacity Leveling
Responsive
Replenishment Responsive Replenishment
Composite Forecasting Optimization Purchase Order Process
Lifecycle Planning Multilevel Supply & Demand Matching
on rac anu ac ur ng
Purchasing
Promotion Planning Subcontracting Release Process
Data Handling Scheduling Agreement Supplier Managed Inventory
Collaborative Demand Planning Aggregated Supply Network Planning Supplier Confirmations
Macro Calculation Supply Chain Analyst Notes
Planning with Bills of Materials Dynamic Replenishment
Characteristics-Based Forecasting Supply Network Inventory
Transfer of Consensus Demand Plan Kanban Process
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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
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DP Data Views
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DP Forecast Results
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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
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Forecasting Models -Univariate
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Forecasting Models - Casual
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Macros in DP
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Macros in DP
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Promotion Planning
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Supply Planning Network
OEM VendorBase Factory (FWIP)
Pack Center Supply Warehouse
Factory
DCs Dummy DC
Factory
Supply Warehouse
1
2
3
4
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Supply Network Planning
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SNP Method 1 -Heuristics
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SNP Method 2 -CTM
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SNP Method 3 -Optimizer
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Deployment & TLB
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Safety Stock Planning
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Collaborative Planning with mySAP SCM
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CPFR with mySAP SCM
Enterprise
APO DP
(Demand Planning)
APO SNP
(Supply Network Planning)
APO PP/DS
(Production Planning &
Detailed Scheduling)
APO TP/VS
(Transportation Planning &
Vehicle Scheduling)
Supplier Customer
publish / receive /
collaborate on
sales & order
forecasts
publish / receive /
collaborate on
sales & order
forecasts
collaborate on
transportationrequests
publish
replenishmentplans
& inventory
receive
customer inventorydata
SAP R/3Send PO for
automatic PO
creation
Receive PO for
automatic PO
creation
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R/3 Vs APO Planning
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R/3 Vs APO Planning
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R/3 Vs APO Planning
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R/3 Vs APO Planning
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R/3 Vs APO Planning
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R/3 & APO Demand Planning
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R/3 & APO Supply Planning
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Thank You
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