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July 31st, 2013 plan4demand
SUPPLY CHAIN LEADERSHIP EXCHANGE PRESENTS:
The web event will begin momentarily with your hosts:
&
Proven SAP Partner
 More than 500 successful SCP engagements
in the past decade
 We’re known for driving measurable results in
tools that are adopted across our client
organizations
 Our experts have a minimum of 10 years
supply chain experience
 Our SAP team is deep in both technology and
supply chain planning expertise; have
managed multiple implementations;
have a functional specialty
“Plan4Demand has consistently put
in extra effort to ensure our Griffin
plant consolidation and demand
planning projects were successful.”
-Scott Strickland, VP Information Systems
Black & Decker
 Honored by Supply & Demand Chain
Executive as a 2013 "Top Female
Supply Chain Executive" and "Pro To
Know."
 As a former CIO at IBM Network
Hardware & Easton Bell Sports, and
COO at ABB Kent Taylor, Sharon
has earned reputation for design
and implementation of time and cost
sensitive enterprise-level projects
across organizations with multiple
worldwide sites.
 As an SAP APO Team Leader at
Plan4Demand, Charlie has been
implementing SAP supply chain
solutions for more than 15 years,
including more than a decade with
SAP, including leading the SCM
Center of Excellence team.
 He has extensive implementation
experience in system configuration,
supply chain processes, solution
architecture and project
management. He is able to develop
solutions across the breadth of SAP’s
supply chain tools and can still dive
deep, “hands-on,” into the system.
Sharon Nelson
CSO, Plan4Demand
Charlie MacMaster
SAP Team Lead, Plan4Demand
 Understand the basics of an Availability Check
 Understand the capabilities of gATP
 Understand the similarities and differences of
SD-ATP & ATP in APO (gATP)
 Understand how SD and gATP work together
 Learn how gATP could be employed in your organization
 Explore the concept of Global Availability vs. Global Visibility
4
1. What is ATP?
2. What is gATP?
3. gATP in the SAP Landscape
 Integrations with ECC
 Integration with other APO Components
 Comparison of ECC ATP & APO gATP
4. Types of ATP Checks
 What Should be Checked?
 ATP Check Hierarchy & Methods
5. Rules-Based gATP
 What it is & How it works
6. What do you need gATP for?
 Checking Sequence Rationale
 gATP Business Processes
7. Global Visibility vs. Availability
8. Key Take-A-Ways
9. Q&A
5
 A Generic Definition:
 Available-to-promise (ATP) is type of availability check
 ATP is a business function that provides a response to
customer order inquiries, based on resource availability
 Execution of an ATP run generates available quantities of
the requested product, and delivery due dates.
 This helps companies support order promising and
fulfillment, aiming to manage demand and match it to
production and procurement plans while maximizing on
Customer Service
 Quantity available to be promised
is determined by netting:
 Stock on Hand
 Planned receipts
 production orders
 purchase orders
 planned orders
 Planned outward movements of stock
 Sales orders
 Deliveries
 Reservations
 A standard ATP check is performed
dynamically for each transaction,
taking into account the relevant stock
and planned goods movements with
or without their replenishment lead
time. Planned independent
requirements are not considered.
1. What is ATP?
2. What is gATP?
3. gATP in the SAP Landscape
4. Types of ATP Checks
5. Rules-Based gATP
6. What do you need gATP for?
7. Global Visibility vs. Availability
8. Key Take-A-Ways
9. Q&A
8
 In general, ECC is plant-centric and it’s ATP checks only look locally, but gATP in APO
allows the check to be done across the supply chain
 gATP is a component of SAP–SCM-APO
 Allows Product or Location Substitution
 Product Availability checks
 User initiates transaction in SD; gATP engine runs in APO
 APO gATP is seamlessly integrated with SAP ECC SD via Core Interface function (CIF)
 gATP utilizes the same LiveCache that is used by DP, SNP, PP/DS.
 Business situation
 Capacity to produce or procure is similar in different locations
 Inventory for products maybe in multiple location
 Complexity of supply chain
 SAP situation
 Level of maturity of ECC
 Knowledge of other APO components
 Understanding of the technology (e.g., LiveCache, CIF)
 Validity of Master Data
 Landscape integration points (with ECC, CRM, APO, etc.)
1. What is ATP?
2. What is gATP?
3. gATP in the SAP Landscape
4. Types of ATP Checks
5. Rules-Based gATP
6. What do you need gATP for?
7. Global Visibility vs. Availability
8. Key Take-A-Ways
9. Q&A
11
SD in ECC
Core Interface (CIF)
Master Data
Transactional Data
Integration of Master Data & Transaction Data between SD & gATP
 The Core Interface allows ECC and APO to function as one integrated system
gATP
in APO
DP SNP
GATP
CRM
PP/DS
SD
1 3
2
4
Requirements
Confirmations
ATP
2
ATP
Allocations
and
Pegging
 SD availability checks occur in ECC
 Quantity available to be promised is determined by
netting:
 Stock on Hand
 Planned receipts
 Planned outward movements of stock
 Standard ATP check is performed dynamically for
each transaction, taking into account the relevant stock
and planned goods movements with or without
replenishment lead time.
 In general, ECC is plant-centric and its ATP checks only
look locally.
 gATP is a component of SAP–SCM-APO
 GATP executes:
 Product Availability checks
 Product or Location Substitution
 User initiates transaction in SD:
gATP engine runs in APO
 APO gATP is seamlessly integrated with SAP ECC SD
via Core Interface function (CIF)
 GATP in APO allows the check to be done across the
supply chain.
SD Available to Promise (ATP) Global Available to Promise (gATP)
1. What is ATP?
2. What is gATP?
3. gATP in the SAP Landscape
4. Types of ATP Checks
5. Rules-Based gATP
6. What do you need gATP for?
7. Global Visibility vs. Availability
8. Key Take-A-Ways
9. Q&A
15
Availability Checking
GATPSD
Availability
Check
Capable to
Promise
Available
to Promise
Level of Detail
of Check
Available to Promise
Check Types
Multi-Level
ATP
Check
ATP for
Kits & BOM
Rules Based
ATP
Check
For Assemble to Order Requires CRM Substitution Focused ATP
 Possible Categories to Consider:
 Inventory On-hand in your facility
 Inventory in other locations
 Incoming receipts
 STO’s
 PO’s
 Production Orders
 Planned Receipts
 Outgoing movements
 SO’s/Deliveries
 Reservations
 Product Availability Check
 Product Allocation
 Checking Against the Forecast
 Third-Party Order Processing
 Availability Check for Kits
 Multilevel ATP Check
 Capable-to-Promise (CTP)
 Combination of the Check Methods
 We’ll focus on a Rules Based Product Availability Check
1. What is ATP?
2. What is gATP?
3. gATP in the SAP Landscape
4. Types of ATP Checks
5. Rules-Based gATP
6. What do you need gATP for?
7. Global Visibility vs. Availability
8. Key Take-A-Ways
9. Q&A
20
Rules Based ATP Capable to Promise
Multi-Level ATP
Availability Check with
BOM or KitGATP
GATP
Production InventoryInventory*
 SCM-APO-ATP uses an iterative, step-by-step availability checking process
driven by the rules you have defined. The results of each step dictates
whether the availability check continues.
 What is a gATP Rule?
 A rule contains information about substitutions of products, locations,
and location-products. Rules use this information to define how a rules-
based availability check is to be performed.
 Rules allow you to tell the system how you want it to look for available
product. You can consider all feasible possibilities that could fulfill your
customer’s requirement.
Possible product
substitution procedures
could include:
 Substitute products
from master data
 Location
determination
procedure
 Substitute locations
from master data
 Location product
substitution
procedure
Check Sequence
1. Is the product available at this
location?
2. If not, is an alternative product
available at this location?
3. If not, is this product available at a
different location?
4. If not, is an alternative product
available at an alternative location?
5. If not, the ATP check fails, and
subsequent action is required.
Checking Sequence Logic - What might be considered in
determining next step?
1. Is the product available at this location?
 Will my customer accept alternate products?
2. If not, is an alternative product available at this location?
 Could I get this product from another location?
3. If not, is this product available at a different location?
 Will my customer accept alternate products that I can get from elsewhere?
4. If not, is an alternative product available at an alternative location?
 Is there any other course to check before the checking options are exhausted.
5. If not, the ATP check fails, and subsequent action is required.
 What actions can I take next to try to satisfy the customer?
1. What is ATP?
2. What is gATP?
3. gATP in the SAP Landscape
4. Types of ATP Checks
5. Rules-Based gATP
6. What do you need gATP for?
7. Global Visibility vs. Availability
8. Key Take-A-Ways
9. Q&A
27
 What materials/products should be checked in ECC SD?
 What materials/products should be checked in APO gATP?
 Do you want to check across regions?
 Will the rules be the same for all products?
 How far out should checks go?
 What goods movement categories should be considered?
 What should not be checked?
1. What is ATP?
2. What is gATP?
3. gATP in the SAP Landscape
4. Types of ATP Checks
5. Rules-Based gATP
6. What do you need gATP for?
7. Global Visibility vs. Availability
8. Key Take-A-Ways
9. Q&A
29
 With GATP, you can execute availability checks across your
entire supply chain. But does that always make sense?
 Ask yourself some questions:
 What products must be made available to any other location
at any time (systematically)?
 How much do I want the system to do?
 What products must have their current supply chain
picture visible across the supply chain?
 If do have visibility, do I really need the system
to check availability everywhere?
 GATP allows you to consider your entire supply chain to make
availability promise decisions.
 GATP is fully integrated with ECC and the rest of APO.
 You must define how you want gATP to work, before you can
employ it.
 GATP allows you to designate within APO, how routine
availability promises should be made, allowing more time for
managing exceptions.
 GATP is a powerful tool and can be effective even with simple
rule sets. In some situations, having visibility across the supply
chain, without the system checking availability, may be
sufficient.
31
 SAP, R/3, mySAP, mySAP.com, SAP NetWeaver®,
Duet®, PartnerEdge, and other SAP products and
services mentioned herein as well as their respective
logos are trademarks or registered trademarks of
SAP AG in Germany and in several other countries
all over the world. All other product and service
names mentioned are the trademarks of their
respective companies. Plan4Demand is neither
owned nor controlled by SAP.
Page 32
If you use SAP to Plan… Think
For Additional Session Information,
a PDF Copy,
or to Schedule a One-on-One…
Contact
Jaime Reints
412.733.5011
jaime.reints@plan4demand.com

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SAP Global Available to Promise (gATP) 101: Global Visibility vs. Global Availability

  • 1. July 31st, 2013 plan4demand SUPPLY CHAIN LEADERSHIP EXCHANGE PRESENTS: The web event will begin momentarily with your hosts: &
  • 2. Proven SAP Partner  More than 500 successful SCP engagements in the past decade  We’re known for driving measurable results in tools that are adopted across our client organizations  Our experts have a minimum of 10 years supply chain experience  Our SAP team is deep in both technology and supply chain planning expertise; have managed multiple implementations; have a functional specialty “Plan4Demand has consistently put in extra effort to ensure our Griffin plant consolidation and demand planning projects were successful.” -Scott Strickland, VP Information Systems Black & Decker
  • 3.  Honored by Supply & Demand Chain Executive as a 2013 "Top Female Supply Chain Executive" and "Pro To Know."  As a former CIO at IBM Network Hardware & Easton Bell Sports, and COO at ABB Kent Taylor, Sharon has earned reputation for design and implementation of time and cost sensitive enterprise-level projects across organizations with multiple worldwide sites.  As an SAP APO Team Leader at Plan4Demand, Charlie has been implementing SAP supply chain solutions for more than 15 years, including more than a decade with SAP, including leading the SCM Center of Excellence team.  He has extensive implementation experience in system configuration, supply chain processes, solution architecture and project management. He is able to develop solutions across the breadth of SAP’s supply chain tools and can still dive deep, “hands-on,” into the system. Sharon Nelson CSO, Plan4Demand Charlie MacMaster SAP Team Lead, Plan4Demand
  • 4.  Understand the basics of an Availability Check  Understand the capabilities of gATP  Understand the similarities and differences of SD-ATP & ATP in APO (gATP)  Understand how SD and gATP work together  Learn how gATP could be employed in your organization  Explore the concept of Global Availability vs. Global Visibility 4
  • 5. 1. What is ATP? 2. What is gATP? 3. gATP in the SAP Landscape  Integrations with ECC  Integration with other APO Components  Comparison of ECC ATP & APO gATP 4. Types of ATP Checks  What Should be Checked?  ATP Check Hierarchy & Methods 5. Rules-Based gATP  What it is & How it works 6. What do you need gATP for?  Checking Sequence Rationale  gATP Business Processes 7. Global Visibility vs. Availability 8. Key Take-A-Ways 9. Q&A 5
  • 6.  A Generic Definition:  Available-to-promise (ATP) is type of availability check  ATP is a business function that provides a response to customer order inquiries, based on resource availability  Execution of an ATP run generates available quantities of the requested product, and delivery due dates.  This helps companies support order promising and fulfillment, aiming to manage demand and match it to production and procurement plans while maximizing on Customer Service
  • 7.  Quantity available to be promised is determined by netting:  Stock on Hand  Planned receipts  production orders  purchase orders  planned orders  Planned outward movements of stock  Sales orders  Deliveries  Reservations  A standard ATP check is performed dynamically for each transaction, taking into account the relevant stock and planned goods movements with or without their replenishment lead time. Planned independent requirements are not considered.
  • 8. 1. What is ATP? 2. What is gATP? 3. gATP in the SAP Landscape 4. Types of ATP Checks 5. Rules-Based gATP 6. What do you need gATP for? 7. Global Visibility vs. Availability 8. Key Take-A-Ways 9. Q&A 8
  • 9.  In general, ECC is plant-centric and it’s ATP checks only look locally, but gATP in APO allows the check to be done across the supply chain  gATP is a component of SAP–SCM-APO  Allows Product or Location Substitution  Product Availability checks  User initiates transaction in SD; gATP engine runs in APO  APO gATP is seamlessly integrated with SAP ECC SD via Core Interface function (CIF)  gATP utilizes the same LiveCache that is used by DP, SNP, PP/DS.
  • 10.  Business situation  Capacity to produce or procure is similar in different locations  Inventory for products maybe in multiple location  Complexity of supply chain  SAP situation  Level of maturity of ECC  Knowledge of other APO components  Understanding of the technology (e.g., LiveCache, CIF)  Validity of Master Data  Landscape integration points (with ECC, CRM, APO, etc.)
  • 11. 1. What is ATP? 2. What is gATP? 3. gATP in the SAP Landscape 4. Types of ATP Checks 5. Rules-Based gATP 6. What do you need gATP for? 7. Global Visibility vs. Availability 8. Key Take-A-Ways 9. Q&A 11
  • 12. SD in ECC Core Interface (CIF) Master Data Transactional Data Integration of Master Data & Transaction Data between SD & gATP  The Core Interface allows ECC and APO to function as one integrated system gATP in APO
  • 14.  SD availability checks occur in ECC  Quantity available to be promised is determined by netting:  Stock on Hand  Planned receipts  Planned outward movements of stock  Standard ATP check is performed dynamically for each transaction, taking into account the relevant stock and planned goods movements with or without replenishment lead time.  In general, ECC is plant-centric and its ATP checks only look locally.  gATP is a component of SAP–SCM-APO  GATP executes:  Product Availability checks  Product or Location Substitution  User initiates transaction in SD: gATP engine runs in APO  APO gATP is seamlessly integrated with SAP ECC SD via Core Interface function (CIF)  GATP in APO allows the check to be done across the supply chain. SD Available to Promise (ATP) Global Available to Promise (gATP)
  • 15. 1. What is ATP? 2. What is gATP? 3. gATP in the SAP Landscape 4. Types of ATP Checks 5. Rules-Based gATP 6. What do you need gATP for? 7. Global Visibility vs. Availability 8. Key Take-A-Ways 9. Q&A 15
  • 17. Available to Promise Check Types Multi-Level ATP Check ATP for Kits & BOM Rules Based ATP Check For Assemble to Order Requires CRM Substitution Focused ATP
  • 18.  Possible Categories to Consider:  Inventory On-hand in your facility  Inventory in other locations  Incoming receipts  STO’s  PO’s  Production Orders  Planned Receipts  Outgoing movements  SO’s/Deliveries  Reservations
  • 19.  Product Availability Check  Product Allocation  Checking Against the Forecast  Third-Party Order Processing  Availability Check for Kits  Multilevel ATP Check  Capable-to-Promise (CTP)  Combination of the Check Methods  We’ll focus on a Rules Based Product Availability Check
  • 20. 1. What is ATP? 2. What is gATP? 3. gATP in the SAP Landscape 4. Types of ATP Checks 5. Rules-Based gATP 6. What do you need gATP for? 7. Global Visibility vs. Availability 8. Key Take-A-Ways 9. Q&A 20
  • 21. Rules Based ATP Capable to Promise Multi-Level ATP Availability Check with BOM or KitGATP GATP Production InventoryInventory*
  • 22.  SCM-APO-ATP uses an iterative, step-by-step availability checking process driven by the rules you have defined. The results of each step dictates whether the availability check continues.  What is a gATP Rule?  A rule contains information about substitutions of products, locations, and location-products. Rules use this information to define how a rules- based availability check is to be performed.  Rules allow you to tell the system how you want it to look for available product. You can consider all feasible possibilities that could fulfill your customer’s requirement.
  • 23. Possible product substitution procedures could include:  Substitute products from master data  Location determination procedure  Substitute locations from master data  Location product substitution procedure
  • 24. Check Sequence 1. Is the product available at this location? 2. If not, is an alternative product available at this location? 3. If not, is this product available at a different location? 4. If not, is an alternative product available at an alternative location? 5. If not, the ATP check fails, and subsequent action is required.
  • 25. Checking Sequence Logic - What might be considered in determining next step? 1. Is the product available at this location?  Will my customer accept alternate products? 2. If not, is an alternative product available at this location?  Could I get this product from another location? 3. If not, is this product available at a different location?  Will my customer accept alternate products that I can get from elsewhere? 4. If not, is an alternative product available at an alternative location?  Is there any other course to check before the checking options are exhausted. 5. If not, the ATP check fails, and subsequent action is required.  What actions can I take next to try to satisfy the customer?
  • 26.
  • 27. 1. What is ATP? 2. What is gATP? 3. gATP in the SAP Landscape 4. Types of ATP Checks 5. Rules-Based gATP 6. What do you need gATP for? 7. Global Visibility vs. Availability 8. Key Take-A-Ways 9. Q&A 27
  • 28.  What materials/products should be checked in ECC SD?  What materials/products should be checked in APO gATP?  Do you want to check across regions?  Will the rules be the same for all products?  How far out should checks go?  What goods movement categories should be considered?  What should not be checked?
  • 29. 1. What is ATP? 2. What is gATP? 3. gATP in the SAP Landscape 4. Types of ATP Checks 5. Rules-Based gATP 6. What do you need gATP for? 7. Global Visibility vs. Availability 8. Key Take-A-Ways 9. Q&A 29
  • 30.  With GATP, you can execute availability checks across your entire supply chain. But does that always make sense?  Ask yourself some questions:  What products must be made available to any other location at any time (systematically)?  How much do I want the system to do?  What products must have their current supply chain picture visible across the supply chain?  If do have visibility, do I really need the system to check availability everywhere?
  • 31.  GATP allows you to consider your entire supply chain to make availability promise decisions.  GATP is fully integrated with ECC and the rest of APO.  You must define how you want gATP to work, before you can employ it.  GATP allows you to designate within APO, how routine availability promises should be made, allowing more time for managing exceptions.  GATP is a powerful tool and can be effective even with simple rule sets. In some situations, having visibility across the supply chain, without the system checking availability, may be sufficient. 31
  • 32.  SAP, R/3, mySAP, mySAP.com, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Plan4Demand is neither owned nor controlled by SAP. Page 32
  • 33. If you use SAP to Plan… Think
  • 34. For Additional Session Information, a PDF Copy, or to Schedule a One-on-One… Contact Jaime Reints 412.733.5011 jaime.reints@plan4demand.com