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KeywordsSAP SCM (APO) Short Overview, SAP SCM, SAP APO, SAP DP, SAP SNP, SAP PPDS, SAP CIF,

Demand Planning, Supply Network Planning, Production Planning and Detailed Scheduling, Procurement

Planning, Core InterfaceSummary

Short overview of SAP Supply Chain Management Solution (formerly SAP Advanced Planner and

Optimizer). You want to know what is SAP APO or what is SAP SCM? You are at the right place!

Table of Contents

_ 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

SAP SCM (APO) Short Overview - Presentation Transcript

SAP SCM - APO Short Overview

Supply Chain Management

Advanced Planner and Optimizer

@

- The Supply Chain Management process in SAP

Demand Planning SCM DP

Supply Network Planning SCM SNP

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Production Planning and Detailed Scheduling SCM

PPDS

Procurement Planning SCM PPDS or R3 MRP

The Core Interface CIF

Comments on other modules

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:

9 a higher service level = less shortages = less

customers disappointed = more sales

9 a lower stock level = less cash needed to run

the operations

9 lower operational costs = less emergency

shipments, for instance

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The Supply Chain Management process in SAP .

The process starts by forecasting the future sales

(Demand Planning). Then the optimal product

quantities to distribute in the companys network are

determined (Supply and Network 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 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.

Demand Planning

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.

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This is estimated via the process presented in

the following slide, performed periodically

(monthly, weekly... depending on the company

and type of product).

Demand Planning

Monitor

forecast

accuracy

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I Upload last

penod

Clean sales

history of

exceptional

events

Release

forecast to

Distribution

Planning

Launch

statistical

forecast

Add

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promotions

Adjust the

forecasts

Supply Network Planning .

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

theselocaflons.

Production Planning and Detailed Scheduling

The Production Planning and Detailed

Scheduling process is performed on each

factory.

Its objective is to determine the optimal

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quantities to produce in order to fulfill the

demand, limit overstocks as well as products

setup time (time lost when switching from a

product to the next).

Production Planning and Detailed Scheduling

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

perpenod.

This is calculated for the Finished Products, anc

then for the intermediary SemiFinished

Products.

Production Planning and Detailed Scheduling - PPDS TC: %a

Then by performing a , the

different production orders are scheduled

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Procurement Planning or

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 PPDS

module for critical components to be planned in

detail, or in SAP R3 using the Materials

Requirements Planning (MRP) functionality.

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The Core Interface .

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.

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

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- 'ransport Planning/Vehicle Scheduling

PVS: to realize the detailed transport plan of

he products