Respond Rapidly to Changing Supply and Demand with Intelligent Order Fulfillment
 

Like this? Share it with your network

Share

Respond Rapidly to Changing Supply and Demand with Intelligent Order Fulfillment

on

  • 506 views

In today’s supply chain, companies need to respond quickly to ever-changing demand, often across a distributed supply network with limited visibility and long latency. In order to gain competitive ...

In today’s supply chain, companies need to respond quickly to ever-changing demand, often across a distributed supply network with limited visibility and long latency. In order to gain competitive advantage in this environment, you need a highly responsive and demand-driven planning process. That means visibility into critical inventory levels at your trading partners. It means the ability to replan quickly and to understand how changes in demand or supply – real or hypothetical – affect your ability to fulfill orders. And it means being able to rapidly execute a revised plan with confidence – maximizing new revenue opportunities while delivering on existing commitments. The benefits of transforming your planning process apply no matter where your company is in the supply chain.

SAP Supply Chain Response Management enables you to constantly update your plan using the latest demand and supply information and to gain market share, reduce inventory, and improve customer satisfaction.

Statistics

Views

Total Views
506
Views on SlideShare
506
Embed Views
0

Actions

Likes
0
Downloads
7
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Respond Rapidly to Changing Supply and Demand with Intelligent Order Fulfillment Presentation Transcript

  • 1. SAP Solution BriefSAP Supply Chain Management Objectives Solution Benefits Quick FactsSAP Supply Chain Response Managementby icon-scm Respond Rapidly to Changing Supply and Demand with Intelligent Order Fulfillment
  • 2. Objectives Solution Benefits Quick Facts The need for a demand-driven planning processThe need for a demand-driven Want to replan with agility in order to meet your order commitments, seizeplanning process new revenue opportunities, and adapt to volatile supply? Take a look at the SAP® Supply Chain Response Management application by icon-scm. You can rapidly perform what-if analysis and adjust your plans to accommodate changes to demand and supply. In today’s supply chain, companies need to being able to rapidly execute a revised plan respond quickly to ever-changing demand, with confidence – maximizing new revenue often across a distributed supply network opportunities while delivering on existing com- with limited visibility and long latency. In mitments. The benefits of transforming your order to gain competitive advantage in this planning process apply no matter where your environment, you need a highly responsive company is in the supply chain. and demand-driven planning process. That means visibility into critical inventory levels at SAP Supply Chain Response Management your trading partners. It means the ability to enables you to constantly update your plan replan quickly and to understand how changes using the latest demand and supply informa- in demand or supply – real or hypothetical – tion and to gain market share, reduce inven- affect your ability to fulfill orders. And it means tory, and improve customer satisfaction. 2
  • 3. Objectives Solution Benefits Quick Facts Shrink your response timeShrink your response time SAP Supply Chain Response Management can be delayed. Order-based algorithms take supports demand-driven planning to syn- into account your finite materials and capaci-Take control of demand volatility chronize demand commitments with supply ties, consider alternative sources, and make plans across your supply network. It enables best use of substitute parts. The applicationIntelligently plan resources using high-speed replanning so you can rebalance also helps you plan new-product introductionsSAP ERP and SAP SCM data supply and demand based on the latest infor- and engineering changes, helping you use up mation from suppliers and customers. materials that may go obsolete. SAP SupplyClose the loop with updates Chain Response Management uses proprie-to core software systems The application goes beyond material resource tary smart-allocation logic to maximize ship- planning. Besides identifying and resolving ments within a given supply situation whilePlan accurately using material and capacity shortages, it identifies respecting order priorities.a detailed analysis which orders you can commit to and whichCommit with confidenceBuild demand by demonstratingthat you can deliver Meet order commitments and use available stocks and capacities efficiently, which leads to improved service, lower inventory, and fewer write-offs. 3
  • 4. Objectives Solution Benefits Quick Facts Take control of demand volatilityShrink your response time Companies like yours face a constant stream The application analyzes each demand with of demand changes including forecast respect to previous commitments. UsingTake control of demand volatility changes, order changes (such as quantity up priority rules, you can maximize the plan’s or down, date in or out, and product change), responsiveness to new demands while alsoIntelligently plan resources using new orders, canceled orders, and more. In providing a stable schedule that protectsSAP ERP and SAP SCM data order to satisfy maximum demand while existing order and forecast commitments. protecting your committed orders, you needClose the loop with updates flexible yet consistent control over demandto core software systems prioritization decisions. SAP Supply Chain Response Management provides this function-Plan accurately using ality using powerful rules-based demand prior-a detailed analysis itization to analyze and reanalyze your orders and forecasts, parsing them into order catego-Commit with confidence ries based on priority rules that you specify.Build demand by demonstratingthat you can deliver Unless you specify rules-based exceptions, all previous commitments are respected. 4
  • 5. Objectives Solution Benefits Quick Facts Intelligently plan resources using SAP ERP and SAP SCM dataShrink your response time SAP Supply Chain Response Management enables responsive decision making based onTake control of demand volatility all relevant demand and supply data within and external to your organization. To achieveIntelligently plan resources using this, the application can use internal dataSAP ERP and SAP SCM data from the SAP ERP application as well as the SAP Advanced Planning & Optimization (SAPClose the loop with updates APO) component of the SAP Supply Chainto core software systems Management (SAP SCM) application. Exter- nal data from suppliers and contract manu-Plan accurately using facturers can be imported through the SAPa detailed analysis Supply Network Collaboration (SAP SNC) application. To make fast, accurate decisions,Commit with confidence Among other benefits, this approach enables use data from downstreamBuild demand by demonstrating you to make the most of the resources that partners as well as from upstreamthat you can deliver feed your supply chain. The application uses advanced nonblocking allocation logic to contract manufacturers and meet priorities without reserving supply material suppliers. unnecessarily. 5
  • 6. Objectives Solution Benefits Quick Facts Close the loop with updates to core software systemsShrink your response time There’s no point having the perfect plan in After computing a new plan, SAP Supply theory only. You need to make it happen by Chain Response Management returns supplyTake control of demand volatility capturing inputs from, and feeding critical proposals and changes to sales orders to SAP data back to, your core enterprise resource ERP, and the constrained demand plan can beIntelligently plan resources using planning and supply chain management returned to SAP APO. Unconstrained forecastSAP ERP and SAP SCM data solutions. With its standard interfaces, SAP requirements can be sent back to suppliers Supply Chain Response Management can using SAP SNC, and commitments from sup-Close the loop with updates transfer information to a wide range of SAP pliers can be imported back into SAP Supplyto core software systems and non-SAP software. Chain Response Management.Plan accurately using SAP Supply Chain Response Management is Bidirectional integration with core systemsa detailed analysis bidirectionally integrated with other SAP soft- and trading partners enables all parties to ware. Master data and transaction data can operate on rapid planning and executionCommit with confidence be uploaded from SAP ERP on a full-update cycles that ensure responsiveness and com- or changed-only basis. Demand planning data petitive advantage.Build demand by demonstrating can be loaded from SAP APO, and other plan-that you can deliver ning data can be obtained from trading part- ners using SAP SNC. 6
  • 7. Objectives Solution Benefits Quick Facts Plan accurately using a detailed analysisShrink your response time SAP Supply Chain Response Management includes flexible and powerful reporting thatTake control of demand volatility offers full transparency into planning results. The application provides a full and flexibleIntelligently plan resources using analysis of the quality of a given plan, looking atSAP ERP and SAP SCM data factors such as orders filled and short, as well as inventory position, revenue, and margin.Close the loop with updates You can use visually rich user interfaces toto core software systems quickly and completely understand the peg- ging results, either top down (all supply peggedPlan accurately using to a given order) or bottom up (all ordersa detailed analysis consuming some or all of a given supply).Commit with confidenceBuild demand by demonstratingthat you can deliver With full visibility into planning results, you can identify trade-offs and opportunities and you can understand allocation decisions. 7
  • 8. Objectives Solution Benefits Quick Facts Commit with confidenceShrink your response time SAP Supply Chain Response Management there. Plans that are under development can offers powerful analytical functionality that be kept private until you are ready to shareTake control of demand volatility allows you to develop multiple, parallel them with third-party suppliers and trading “what-if” scenarios. By altering inputs such partners as well as with in-house teams.Intelligently plan resources using as demand forecast, supplier availability, andSAP ERP and SAP SCM data customer service targets, you can simulate In addition to enabling you to develop multi- and compare different plans to ensure that ple scenarios, the software allows you toClose the loop with updates your organization can commit with confi- compare them against key performance indi-to core software systems dence, whatever the circumstances. cators to determine which plan best meets your business objectives – whether to reducePlan accurately using The solution provides a central repository for inventory, improve customer service levels, ora detailed analysis supply chain plans covering various contin- drive revenue. You can then quickly replace gencies, so planners can take any existing parts or all of your baseline plan with the newCommit with confidence plan as a starting point and develop it from updated scenario.Build demand by demonstratingthat you can deliver Validate alternative strategies before potential supply chain disruptions become a reality. 8
  • 9. Objectives Solution Benefits Quick Facts Build demand by demonstrating that you can deliverShrink your response time You can work collaboratively with trading partners to evaluate planning decisions andTake control of demand volatility execute on opportunities to build demand. For example, you can test promotional oppor-Intelligently plan resources using tunities with your partners by creating aSAP ERP and SAP SCM data hypothetical bill of materials to determine the feasibility of building and shipping a productClose the loop with updates in a certain time frame. Or you can use theto core software systems application to determine if you can leverage your excess supply to offer additional prod-Plan accurately using ucts to the market. As a supplier, you can wina detailed analysis more business with customers by demon- strating the feasibility of meeting a custom-Commit with confidence er’s hypothetical upside requests faster than competing suppliers.Build demand by demonstratingthat you can deliver Drive revenues by exploiting new opportunities with confidence. 9
  • 10. Objectives Solution Benefits Quick Facts Gain measurable, substantive business benefitsGain measurable, substantive SAP Supply Chain Response Management •• Increase service levels and delivery per-business benefits can help you make real improvements in the formance with precise, systematic control effectiveness and efficiency of your supply over customer commitments and order chain. These improvements let you: fulfillment •• Improve your delivery performance to •• Identify untapped demand and increase establish and maintain customer loyalty inventory turns using powerful analytics •• Capture revenue and market share through and rapid supply chain scenario execution rapid, creative responses to demand upside that tests demand opportunities against opportunities existing inventory •• Fulfill more demand from the same •• Reduce material safety stocks while main- supply using proprietary allocation logic taining the same customer service levels that makes the most of your existing by employing more frequent and accurate supply and capacity while protecting your planning cycles order priorities •• Improve the visibility of contingency •• Reduce excess and obsolete inventory plans, both in-house and outside organiza- stocks by modifying your plans when fore- tional boundaries casts do not materialize 10
  • 11. www.sap.com Objectives Solution Benefits Quick Facts Summary Solution The SAP® Supply Chain Response Manage- •• Demand-driven planning to let you update ment application by icon-scm enables you your plan quickly to incorporate up-to-the-minute changes in •• Configurable, rules-based prioritization demand and supply while making the most algorithms of your available supply. •• Scenario management, comparison, and application of preferred plan to baseline Objectives •• What-if analysis for evaluating alternate •• Capture revenues and competitive approaches to changes in supply and advantage demand •• Boost supply chain efficiency while improv- ing service levels Benefits •• Achieve visibility across a globalized, highly •• Fulfill more demand from the same supply distributed supply chain •• Increase service levels and delivery •• Quickly evaluate real or hypothetical performance changes to demand and supply •• Reduce excess and obsolete inventory •• Identify and execute on new demand- stocks shaping opportunities •• Identify untapped demand and increase inventory turns •• Reduce material safety stocks while main- taining service levels Learn more Call your SAP representative today, or visit us online at www.sap.com/lines-of-business /scm/collaborative-response-management. CMP10863 (12/08)Copyright/Trademark | Privacy | Impressum 11 ©2012 SAP AG. All rights reserved.