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Sap scm (apo) overview

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SAP SCM (APO) Overview - Original document published on www.expertplug.com …

SAP SCM (APO) Overview - Original document published on www.expertplug.com
Overview of SCM DP, SNP and PPDS processes in SAP.

You can find many more SAP training material on www.ExpertPlug.com.

As an SAP Expert, you can also market your SAP skills and make extra cash by publishing SAP documents on www.ExpertPlug.com.

ExpertPlug is an SAP marketplace for training material and an online community of experts. We offer a simple way for the global SAP workforce, consulting companies and industry to market their skills and find quality information.

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  • 1. SAP SCM (APO) Short OverviewSupply Chain ManagementAdvanced Planner and OptimizerMatthieu Lepelley – SAP SCM Senior Consultantwww.ExpertPlug.com 1
  • 2. 1 Agenda• 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 2
  • 3. 2 The Supply Chain Management process in SAPThe objective of the Supply Chain Managementprocess is to ensure that the company has the desiredproducts available for its customers at the right timeand place, at a minimal cost for the company.An efficient Supply Chain will enable the company tohave:  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 3
  • 4. 2 The Supply Chain Management process in SAPThe process starts by forecasting the future sales(Demand Planning). Then the optimal productquantities to distribute in the company’s network aredetermined (Supply and Network Planning). From thisdistribution plan is deduced an ideal production plan(Production Planning and Detailed Scheduling).Finally, this production plan is used to source therequired components (Procurement Planning).These steps are performed in different modules of theSAP SCM solution (formerly SAP APO – AdvancedPlanning and Optimizer), described briefly in thefollowing slides. 4
  • 5. 3 Demand Planning – SCM DPThe Demand Planning process is performed inthe SCM DP module.Its objective is to determine which products areneeded for which customer or location, in whichquantity and on which date.This is estimated via the process presented inthe following slide, performed periodically(monthly, weekly… depending on the companyand type of product). 5
  • 6. 3 Demand Planning – SCM DP Upload new products data Monitor Upload last forecast period accuracy sales Release Clean sales forecast to history of Distribution exceptional Planning events Launch Add statistical promotions forecast Adjust the forecasts 6
  • 7. 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. 7
  • 8. 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). 8
  • 9. 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 product per period. This is calculated for the Finished Products, and then for the intermediary Semi-Finished Products. 9
  • 10. 5 Production Planning and Detailed Scheduling - PPDS Then by performing a Detailed Scheduling, the different production orders are scheduled optimally within a period. 10
  • 11. 6 Procurement Planning – SCM PPDS or R3 MRPThe last step of the Supply Chain ManagementProcess is the Procurement Planning.The objective of this step is to determine thecomponents to supply in order to be able torealize the Production Plan.This process can be performed in the SCM PPDSmodule for critical components to be planned indetail, or in SAP R3 using the MaterialsRequirements Planning (MRP) functionality. 11
  • 12. 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. 12
  • 13. 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:• Global Available to Promise – GATP: to determine the availability of components or products• Transport Planning/Vehicle Scheduling – TPVS: to realize the detailed transport plan of the products•… 13
  • 14. 9 More on ExpertPlug.com• You can find many more SAP training material on www.ExpertPlug.com• As an SAP Expert, you can also market your SAP skills and make extra cash by publishing SAP documents on www.ExpertPlug.com• ExpertPlug is an SAP marketplace for training material and an online community of experts. We offer a simple way for the global SAP workforce, consulting companies and industry to market their skills and find quality information 14

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