Logistics - SAP Supply Chain Management

Business Scenario
Supply Chain Management with mySAP.com
Powerful, User-Friendly and Tailored to
the Needs of Your Extended Enterprise
SAP – The Information Technology You Need
to Optimize Your Supply Chain
In today’s competitive, global economy, you need to
ensure efficiency, flexibility and transparency not only
within your own organization, but from one end of
your supply chain to the other.
SAP already provides solutions that can be tailored to
the internal processes of your company. Now, SAP
offers a comprehensive suite of modules that enable
you to model, monitor and pro-actively manage your
extended enterprise. They guarantee easier, more pre-
cise decision-making, cost-effective sourcing, better
demand planning, more efficient distribution and
delivery, and last but not least, better customer service.
Executive Summary
Supply Chain Management –
planning, optimization and execution
mySAP.com – the Internet gateway
to your business world
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Business Scenario Business Scenario
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Supply Chain Management with mySAP.com takes
your information technology environment beyond
your own enterprise to the extended enterprise, and
beyond planning to optimization and execution. It
offers an environment that is integrated, comprehensive
and flexible – today and tomorrow.
SAP does not just offer software, but solutions and
services for many business challenges, including
supply chain management. It is enabling business
community collaboration. Moreover, SAP is now
making the most of the Internet age. With the new,
significantly enhanced offering known as mySAP.com,
it is Web-enabling its software and providing browser-
based workplace portals tailored to the role and needs
of each individual user. Furthermore, it is creating an
Internet marketplace portal for the business-driven
exchange of information and delivery of services.
mySAP.com is a comprehensive answer to business
needs in the Internet age.
Supply Chain Management delivers:
Planning –
the ability to anticipate future developments
and respond to changing situations quickly
and easily.
Optimization –
the ability to plan or carry out supply chain
activities with optimum efficiency.
Execution –
the ability to automate the supply chain
and execute optimized plans within pre-
defined constraints.
Performance Measurement –
the ability to define key performance
indicators and benchmark against them.
Integration and Openness –
the ability to guarantee the free flow of
data throughout your extended enterprise
for greater productivity and transparency.
Better Business Insight –
the ability to better understand overall
business issues, complexities, and interactions
and make better decisions for the extended
enterprise as a whole.
SAP’s Supply Chain Management solution is
designed to synchronize all parts and partici-
pants in your extended enterprise by means
of new functions, processes and interfaces.
It combines R/3, the world’s leading enter-
prise resource planning system, with the
following components:
– The SAP Advanced Planner and Optimizer
(SAP APO), consisting of a number of inte-
grated modules using a constraint-based
planning and optimization philosophy.
These are:
• Supply Chain Cockpit – model, monitor
and manage your supply chain with a
specially designed graphical user inter-
face. The Supply Chain Cockpit provides
users with a bird´s eye view of all activi-
ties and applications.
• Demand Planning – identify and analyse
patterns and fluctuations in demand,
and create accurate, dynamic demand
forecasts.
• Supply Network Planning & Deployment
– match purchasing, production and
transportation processes to demand, and
balance and optimize your entire supply
network.
• Production Planning & Detailed Sched-
uling – optimize the use of resources and
create accurate plant-by-plant produc-
tion schedules in order to shorten pro-
duction life-cycles and respond rapidly
to changes in market demands.
• Global Available-to-Promise – match
supply to demand on a truly world-wide
scale, and give your customers reliable
delivery commitments by means of both
real-time checks and sophisticated simu-
lation methods.
Executive Summary
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Business Scenario Business Scenario
– The SAP Business Information Warehouse
(SAP BW), a pre-configured data ware-
house ideal for SAP environments, pro-
vides access to both internal and external
information from multiple sources, as well
as providing sophisticated reporting and
analysis tools.
– Field Sales is designed to make direct cus-
tomer contact more efficient. Field Sales
can be used as a stand-alone solution or
integrated tightly into an R/3 environment
to provide all the information needed for
direct interaction with the customers in the
field.
– SAP Business-to-Business Procurement,
allowing worldwide access to products and
services. This is the first Internet-based
procurement solution to close the loop
between vendor and purchaser. This com-
ponent handles the entire requisition-to-
payment cycle via one easy-to-use entry
screen.
– The SAP Logistics Execution System
(SAP LES), offering advanced warehouse
management and transportation manage-
ment functionality. It enables companies to
improve customer service and to gain a
more coherent view of their logistics
operations.
Achieving Competitiveness
throughout the Extended Enterprise
Modeling your Supply Chain Access to Information on Your Supply Chain
Slice-of-life scenarios
An organization’s supply chain is often so complex
that it is difficult to envisage, and even more difficult
to manage. Clearly, the ability to model and view the
extended enterprise from end to end is the first crucial
step to its effective control and optimization.
Now imagine an easy-to-understand
graphical model...
... of your entire supply chain network. The SAP APO
Supply Chain Cockpit can be configured quickly and
easily to depict your production plants, distribution
centers, suppliers and customers, and the transpor-
tation links between them. You can navigate your way
through that network model, looking at it from various
perspectives and drilling down to further levels of
detail. Using the Supply Chain Alert Monitor, you can
check the accuracy and suitability of forecasts, plans
and schedules against the current situation. It will also
draw your attention to exceptions, bottlenecks or
unusual events – automatically. You can switch
seamlessly to planning and execution applications to
resolve any problems.
To manage your supply chain, you need instant access
to a variety of facts and figures, from internal and ex-
ternal sources. You need to know what your own com-
pany has done in the past and what it’s doing now
– and you need to know what your suppliers, service
agents and customers are doing.
Now imagine a ready-to-go data
warehouse...
... that provides you with pre-configured information
models and reports geared to the individual needs of
the many different knowledge workers within your
company. The SAP Business Information Warehouse
(SAP BW) enables you to look at information drawn
from diverse systems and sources, from operational
applications to content providers. And you can explore
that information at varying levels of detail and from
many different perspectives, to track down problems
and spot opportunities. What’s more, you can switch
to functions that enable you to act instantly on the
insight you have gained.
How SAP can help you address the key
supply chain management challenges
SAP’s Supply Chain Management solu-
tion gives you comprehensive support
throughout your extended enterprise.
The scenarios given on the following
pages show you how you can achieve
an entirely new level of integration, effi-
ciency, and transparency, both within
your company and from one end of
your supply chain to the other.
The Supply Chain Cockpit
For A User-Friendly Customizable Model of
Your Network of Plants, Suppliers and Customers
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Business Scenario Business Scenario
The SAP Business Information Warehouse –
A Powerful, Ready-to-Go
Data Warehouse
Accurately Forecasting Demand
Supply Network Planning & Deployment
and Global Available-to-Promise
for the Smooth Flow of Materials
and Confident Delivery Commitments
The Demand Planning Module -
for Accurate Forecasts and
Automatic Alerts
Intense competition, changing customer expectations
and highly volatile market developments are making
demand planning increasingly difficult – yet increa-
singly important.
Now imagine having real-time demand
data...
..collated from historical sales development, from your
customers and your supply chain partners, including
POS data. The SAP APO Demand Planning module
adjusts figures dynamically and alerts you automa-
tically to sudden shifts in demand patterns. Multidi-
mensional data models and analysis functions allow
you to view and scrutinize the information available in
many different ways. And you can combine this
module with the powerful analysis features of the SAP
BW. You can even simulate the impact of new market-
ing strategies on demand.
Keeping your supply chain in sync with demand
requires effective coordination of all plants, storage
facilities and transportation agents using a single,
global view of your extended enterprise.
Now imagine you can check the avail-
ability of your resources on a global
scale...
...using a multi-level, rule-based strategy to match
supply and demand. With the SAP APO Supply Net-
work Planning & Deployment and Global Available-to-
Promise modules you can perform bills-of-material
and production plant capacity checks both in real-time
and simulation mode – and give firm delivery commit-
ments to your customer. You can also define the capa-
city of the various parts of your supply chain network
using constraints. This enables you to plan sourcing,
production activities and materials flow with absolute
accuracy, using one consistent model. You can also
rebalance and optimize your distribution network on
the fly, ensuring everyone knows just when and how
inventory should be transported and delivered.
Slice-of-life scenarios
Matching Demand to Supply
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Business Scenario Business Scenario
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Accurate forecasts of demand are only one part of the
equation, the other half is the ability to deliver on that
demand. You need to plan production schedules in a
way that makes the most of available capacity, and to
modify those schedules as new requirements arise.
Now imagine generating reliable
schedules that can be adjusted
dynamically...
...ensuring the smooth flow of materials and resources
on a plant-by-plant basis. The SAP APO Production
Planning and Detailed Scheduling module is an easy-
to-use interactive graphical planning tool. You can
make multi-plant and single-plant production plans,
simultaneously check the availability of materials
and production plants, and simulate the impact of
various strategies and events on schedules. The result
is reliable, fully realistic production plans that enable
you to deliver on demand – and take account of new
needs and changed circumstances.
Nowadays, the internal cost of many procurement
processes often dwarfs the price tag of the product
being purchased. What is needed is a rapid, cost-
effective and easy way of letting employees buy the
items they need.
Now imagine buying what you need
quickly and simply over the Web...
...without having to go through piles of paper and
chase after signatures. SAP Business-to-Business
Procurement integrates both the buying and selling
processes, letting you self-serve from your desk. You
can view products and even services from approved
suppliers, select the item you need in accordance with
individually defined constraints, and order it imme-
diately. A purchase order is generated automatically,
and a corresponding customer order created in the
supplier’s IT system. It saves time and expense, and
eradicates paperwork while maintaining visibility and
control across the procurement chain.
Slice-of-life scenarios
Cutting the Cost of Day-to-Day Procurement Planning Production with Pinpoint Accuracy
Production Planning
and Detailed Scheduling for Perfect Timing
SAP Business-to-Business
Procurement for More Speed
and Greater Convenience
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Streamlining production processes is simply not enough.
You also have to ensure the finished product is deliv-
ered on time and at low cost, with the packaging and
documentation your customer requires.
Now imagine a comprehensive solution
to your logistics tasks...
...that combines warehouse management with trans-
portation management. The SAP Logistics Execution
System (SAP LES) enables you to manage and monitor
everyone from the forklift truck operator to the ware-
house supervisor and the transportation planner. A
system that makes use of state-of-the-art technologies
such as radio frequency devices, and puts you in full
control of both inbound and outbound activities. It not
only supports effective storage, including a variety of
put-away and retrieval strategies, but also enables you
to plan and execute transportation. You can combine
various modes of transportation, choose the appro-
priate form of packaging, automatically generate
shipping documentation and even calculate costs and
trigger billing based on multiple criteria, all within one
system – one linked seamlessly to your production
planning and your financial accounting applications.
Today, more than ever before, businesses need to mo-
nitor and measure the performance of their processes –
because competition has never been stronger, and mar-
kets never more volatile.
Now imagine assessing performance at
the click of a mouse...
...using balanced scorecards tailored to your particular
needs, giving you instant access to a wide variety of
key performance indicators on all aspects of your
extended enterprise. With the SAP APO Supply Chain
Cockpit, you can explore your supply chain with an
array of meaningful dials and displays. You can drill
down to greater detail or examine processes, produc-
tion plants or even individual people from various
perspectives. For more detailed analysis, the SAP
Business Information Warehouse gives you a wide
choice of pre-configured reports, information models
and key performance indicators – with real-time,
accurate facts and figures on your supply chain.
Slice-of-life scenarios
Efficient, Reliable Logistics Processes
Measuring the Performance of
Every Link in Your Supply Chain
TheSAP Logistics Execution System
for Synchronization of Warehouseand
Transportation Processes -
Inbound and Outbound
The Supply Chain Cockpit
for a Bird’s Eye View and the
SAP Business Information Warehouse
for Analysis and Reporting
In today’s global business environment, you need the
functionality of your company’s IT system 24 hours a
day, right around the globe. You can’t afford to put off
a prospect until you’ve checked the facts back at the
office – you want to log onto enterprise-class capa-
bilities right away, there and then.
Now imagine answering all your
prospect’s questions on the spot...
...with nothing more than your notebook computer.
With the Field Sales component, you can tell him just
what is available when, and just what it will cost. And
you can configure the product to his individual pre-
ferences, and give him a firm price, and a firm delivery
date – because you can log onto your company’s IT
system anywhere, at any time. Once the deal is agreed,
you can enter the order online, triggering all down-
stream processes automatically, from order entry, to
the production schedule, to invoicing.
The Power of Enterprise-Class
Capabilities Any Place, Any Time
Making Direct Customer Contact
More Efficient with Field Sales
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Now, mySAP.com allows you to link the strength
of the enterprise backbone with a host of new SAP
products and technologies. mySAP.com is a com-
prehensive software and service offering for the
Internet economy. As part of mySAP.com, SAP‘s
Supply Chain Management Solution is ideal for
handling the comprehensive demands of global
inter-linked companies – while at the same time
becoming a member of the Internet community.
Together, they offer you the following:
- New functionality for your extended enterprise with
tight integration between execution and decision-
making
- The ability to provide better customer service
- Transparency across the supply chain
- Unparalleled speed, responsiveness and perfor-
mance
- The ability to continuously optimize all processes
- Lower costs along the whole supply chain
- Lower total cost of ownership
Why not take a look at the following?
SAP Advanced Planner & Optimizer, a general
overview of features and benefits
www.sap.com/apo/
SAP Business Information Warehouse Solution
Map, a comprehensive overview of SAP’s
ready-to-go data warehouse and its capabilities
www.sap.com/bw/
SAP Business-to-Business Procurement, a general
overview of features and benefits
www.sap.com/bbp/
SAP Logistics Execution System, a general
overview of features and benefits
www.sap.com/les/
Simply contact your local SAP office
or check out our Web site.
The Benefits
You’d like to know more ?
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1999 SAP AG • Published by:
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All other products are trademarks
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