SAP SCM (APO) Short Overview Supply Chain Management Advanced Planner and Optimizer Matthieu Lepelley – SAP SCM Senior Consultant www.ExpertPlug.com
1 Agenda •
The Supply Chain Management process in SAP
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Demand Planning – SCM DP
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Supply Network Planning – SCM SNP
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Production Planning and Detailed Scheduling - SCM PPDS
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Procurement Planning – SCM PPDS or R3 MRP
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The Core Interface – CIF
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Comments on other modules
2 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: a higher service level = less shortages = less customers disappointed = more sales a lower stock level = less cash needed to run the operations lower operational costs = less emergency shipments, for instance
2 The Supply Chain Management process in SAP The process starts by forecasting the future sales (Demand Planning). Planning ). Then the optimal product quantities to distribute in the company’s network are determined (Supply (Supply and Network Planning). 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 ( Procurement Planning). 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.
3 Demand Planning
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SCM DP
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. date. This is estimated via the process presented in the following slide, performed periodically (monthly, weekly… depending on the company and type of product).
3 Demand Planning
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SCM DP
Monitor forecast accuracy
Upload new products data
Release forecast to Distribution Planning
Upload last period sales
Clean sales history of exceptional events
Launch statistical forecast
Add promotions Adjust the forecasts
4 Supply Network Planning - SNP 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 these locations.
5 Production Planning and Detailed Scheduling - PPDS 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).
5 Production Planning and Detailed Scheduling - PPDS 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 produc per period. This is calculated for the Finished Products, an then for the intermediary Semi-Finished Products.
5 Production Planning and Detailed Scheduling - PPDS Then by performing a Detailed Scheduling, Scheduling, the different production orders are scheduled optimally within a period.
6 Procurement Planning
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SCM PPDS or R3 MRP
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 PPD module for critical components to be planned in detail, or in SAP R3 using the Materials Requirements Planning (MRP) functionality.
7 The Core Interface - CIF 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.
8 Comments on other modules Some other modules are part of SAP SCM process, and can be implemented depending on the requirements of the company: •
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Global Available to Promise – GATP GATP:: to determine the availability of components or products Transport Planning/Vehicle Scheduling – TPVS:: to realize the detailed transport plan of TPVS the products …
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