Backorder Processing with SAP R/3 vs. SAP APO Global Available-to-PromisePatti KimlerProduct ManagerPTU ApplicationsSAP Labs, LLC

SAP AG 2005, *

What Well Cover What is Backorder Processing and what should it do?SAP APOs Backorder ProcessingR/3s Backorder ProcessingLets look at them both now SAP APO vs. R/3The gaps Where R/3 falls shortWhats new in Global Available-to-Promise and coming up soonKey takeaways

SAP AG 2005, *

What Well Cover What is Backorder Processing and what should it do?SAP APOs Backorder ProcessingR/3s Backorder ProcessingLets look at them both now SAP APO vs. R/3The gaps Where R/3 falls shortWhats new in Global Available-to-Promise and coming up soonKey takeaways

SAP AG 2005, *

Backorder Processing (BOP) the BasicsWhen is an order a backorder?When a schedule line doesnt have a confirmed quantityWhat should a backorder processing solution do?Simulate resultsLend visibility to the situationRun in a reasonable amount of timeAllow selection of orders based on business requirementsAllocate product in a prioritized wayAllow results to be sorted in a meaningful wayNote that both solutions R/3 and SAP APO can satisfy all these items, to some extent

SAP AG 2005, *

What Well Cover What is Backorder Processing and what should it do?SAP APOs Backorder ProcessingR/3s Backorder ProcessingLets look at them both now SAP APO vs. R/3The gaps Where R/3 falls shortWhats new in Global Available-to-Promise and coming up soonKey takeaways

SAP AG 2005, *

PrerequisitesATP check for orders in question must be set to take place in APOR/3, mySAP ERP, or SAP CRM as an order management systemWhat does that mean?!Typically, in the setup of Global Available-to-Promise (gATP), you specify (once) in the SAP APO Core Interface (CIF) that you want your ATP customizing settings transferred from R/3 (or mySAP ERP) to SAP APOThen, in another integration model of the CIF, you must have selected the ATP check switch for the materials you have specified in that integration model

SAP AG 2005, *

Core Interface Settings Integration Models

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mySAP ERP and mySAP Business SuiteRevolutionEvolution

SAP AG 2005, *

SellMakeMoveServicemySAP ERPPLMSCMCRMTPVSEWMSPPRRmySAP Business Suite Strategy- Product Innovation Value Based Initiatives < Time to Market > Product Quality $ > Life Cycle Product $ > Collaboration ROI < 20% Development $ < 21% Scrap & Rework < 7% Manufacturing $ < 20% Warranty Strategy- SRM, Global Visibility Value Based Initiatives < Supplier Consolidation < Material Consolidation < Maverick Spending > Collaboration ROI < 5-15% Material Cost > Productivity 20-30%

Strategy- Operational Excellence Value Based Initiatives < Inventory > Customer Service > Global Resource Mgmt. > Operational Efficiency ROI < 10-30% Inventory > Rev.-Customer Service < Planning Cycles- Days Strategy- Customer Intimacy Value Based Initiatives > Revenue > Market Share > Profitability > Customer Satisfaction ROI > 2-3% Market share- AMR > Margins-5%>25%- Bain > Selling Efficiency-$10>1 > Customer Satisfaction

SAP AG 2005, *

Where SAP APO Fits in SAP SCMSAP Advanced Planning and Optimization (SAP APO 4.1)SAP Inventory Collaboration Hub (SAP ICH 4.1)SAP Event Management (SAP EM 4.1)SAP NetWeaver (Web AS, BW, ) (SAP NetWeaver 04)

SAP AG 2005, *

Evolution of SAP SCM Functionality SAP SCOPEInitiativeMRP II for PlanningSAP R/3 MM/PPTransportation Mgmt.Warehouse Mgmt.Partnership with ILOG20001997199819992002200120032004

SAP AG 2005, *

Global ATP The Technical Perspective

SAP AG 2005, *

Key CapabilitiesMultiple Operating ModesBatchInteractiveSimulativeFilterSorterSupport for Product Allocations

SAP AG 2005, *

Batch Backorder Processing2 modes:Direct update of batch backorder processingBOP runs and immediately updates the results to the database without an intermediate stepBatch backorder processing with postprocessingBOP runs, saves the results to a buffer, and protects the assigned quantities with temporary quantity assignmentsThe results can be updated or rejected. If rejected, the temporary quantity assignments are deleted

SAP AG 2005, *

Interactive Backorder ProcessingSimilar to batch backorder processing with postprocessing, except for the addition of a pre-configured worklistIt can be accessed directly from the menu structure within SAP APO, or used as a postprocessing function of Batch backorder processingFilters and sorts are available to both operating modes

SAP AG 2005, *

Interactive Backorder Processing With a Worklist

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Interactive Backorder Processing Without a Worklist

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Simulative Backorder Processing No temporary quantity assignments are written to liveCacheNo orders are updated in R/3The results can be viewed in a log but cannot be updated interactivelyThe results can be saved in the buffer or deleted

SAP AG 2005, *

FilterPlus a Userexit!

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SorterPlus a Userexit!

SAP AG 2005, *

Product Allocations and Backorder ProcessingAs of SAP SCM release 4.1 (currently in Phase II Ramp-Up), product allocations may be checked as part of backorder processingIn prior releases, product allocations are neither checked nor updatedAlso as part of release 4.1, if product allocations are checked by BOP, a new icon will display on the results screen telling you that this occurred

SAP AG 2005, *

What Well Cover What is Backorder Processing and what should it do?SAP APOs Backorder ProcessingR/3s Backorder ProcessingLets look at them both now SAP APO vs. R/3The gaps Where R/3 falls shortWhats new in Global Available-to-Promise and coming up soonKey takeaways

SAP AG 2005, *

PrerequisitesATP check must be set to occur in R/3What does that mean?!Youre using R/3 and not APO for ATP checks

SAP AG 2005, *

The Selection ScreenSelectionSort

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The Results

SAP AG 2005, *

What Well Cover What is Backorder Processing and what should it do?SAP APOs Backorder ProcessingR/3s Backorder ProcessingLets look at them both now SAP APO vs. R/3The gaps Where R/3 falls shortWhats new in Global Available-to-Promise and coming up soonKey takeaways

SAP AG 2005, *

ComparisonAPORedistribution flag

Redistribution for each basic methodFilter has 28 fields plus userexitSorter has 25 fields plus userexit Able to confirm new results with old prior to database commitR/3 and mySAP ERPNo redistribution flag releases all orders assigned quantities, then rechecks them if they didnt have a check before

No redistribution

Fixed filter with