Professional Documents
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Discover Sap SCM
Discover Sap SCM
Bonn Boston
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Contents at a Glance
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Contents
Acknowledgments ......................................................................... 21
Preface .......................................................................................... 23
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Contents
Conclusion ............................................................................ 57
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Contents
Capable to Match............................................................ 84
Capable to Match Configuration...................................... 85
SNP Resources ...................................................................... 88
Common SNP Objects . ......................................................... 89
Capacity Leveling............................................................. 89
Capacity Leveling Profiles................................................ 90
Planning Book................................................................. 90
liveCache and Data Storage............................................. 92
Safety Stock in SNP ............................................................... 92
SNP Subcontracting .............................................................. 93
SNP and Supplier Network Collaboration......................... 93
SNP Product Location Tabs ................................................... 93
SNP Deployment .................................................................. 94
Deployment Heuristic...................................................... 95
Deployment Optimizer.................................................... 95
SNP Release History .............................................................. 96
Case Study ............................................................................ 96
Company......................................................................... 96
Challenge........................................................................ 96
Solution ......................................................................... 97
Value Achieved................................................................ 97
Conclusion ............................................................................ 97
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Contents
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Contents
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Contents
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Contents
Company....................................................................... 179
Challenge...................................................................... 180
Solution ....................................................................... 180
Value Achieved.............................................................. 180
Conclusion .......................................................................... 180
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Contents
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Contents
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Contents
Company....................................................................... 257
Challenge...................................................................... 257
Solution ....................................................................... 258
Value Achieved.............................................................. 258
Conclusion .......................................................................... 258
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Contents
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Contents
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Contents
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1
SAP SCM Basics
In this chapter, well describe SAP SCM and how its used in todays
economy, the SAP approaches to supply chain management, and how
companies can use and benefit from SAP SCM. A large amount of
functionality has been introduced since the last time many people
looked into SAP SCM, so even if youve seen it before, youll find a
lot of new information. Each chapter has a listing of some of the most
relevant new functionality as well as the enhancements that have
been made to existing functionality.
(CIF) and BAdIs, among others, that connect the system to SAP ERP.
SAP SCM is used to improve and optimize the supply chain by enabling automated decision making, providing improved analytical
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tools to users, and sharing information with internal system customers and external business partners.
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ERP
Duet
Demand
Planning
Demand
Planning
Global
ATP
APO
Supply
Network
Planning
PP/DS
TP/VS
SCM Infrastructure
Event
Manager
All
SCM
Basis
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Optimization
The goal of
optimization is to
ensure the optimal
operation of your
supply chain
In its early years, SAP APO was sold on its ability to perform optimization. This is primarily because it was an industry-wide practice to
market advanced planning software in this way. In fact, SAP APO, or
SAP Advanced Planning & Optimization, had the term directly in its
name.
Optimization has two general meanings. One is more of a business nature, which basically means to produce the best outcomes. The other
has to do with the area of operations research, from where the supply
chain optimization originates. For this book, well define optimization as the use of software tools and processes to ensure the optimal
operation of a supply chain, including the optimal location of inventory within the supply chain and the minimizing of operating costs
(including manufacturing costs, transportation costs, and distribution
costs).
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Optimization
Optimal
Purchase
Quantity
Lot Size = 50
Time
Figure 1.2 Linear Optimization in Supply Chain
Must Be Moderated by Constraints
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Example
There is a story about an advanced planning vendor that was running the
optimizer engine in the background, but when the engine actually went
down for a few days, no one even noticed. This was because the planning was primarily being performed by heuristics that had been custom
coded with scripts, and the solution was not using the optimizer at all.
Whether the client knew the optimizer was not being used is unknown.
This is more common than reading press releases and industry periodicals
in the area would make you think. While optimization sold a lot of supply
chain software, it wasnt necessarily what the customers went live with,
as evidenced from this example.
Planning Continuum
Optimizer
CTM
Heuristics
Solution Quality
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Description
Focused on
improvement
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Supply Network
Transportation
Lane
Locations
Figure 1.4 Combination of Transportation Lanes and
Locations Is Referred to as the Supply Network
SAP SCM, as with the plant and material master in SAP ERP, stores
a large amount of configuration information in the product master,
location master, and the product location master. We refer to these
masters throughout the book, so its important to know the differ-
Product master,
location master, and
product location
store data in
SAPSCM
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For instance, in SAP SCM, safety stock isnt set at the product or location level but at the product location level, so theres no field for
safety stock control on the location master or on the product master,
but there are safety stock control fields on the product location master. This not only holds true for safety stock but also for many other
attributes that only come into play at the product location master.
Planning areas and planning object structures are important cross application items. They are high-level data groupings that control the
entire supply chain model. They have a central administration that allows the areas and structures to be copied, maintained, and deleted.
Note
Planning areas are the central data structures of Demand Planning (DP)
and Supply Network Planning (SNP). A planning area is a container for
key figures. Planning areas feed an interface object called a planning
book, which is a spreadsheet view with a number of aggregation and
macro capabilities. At the most basic level, key figures are the numerical
values in the spreadsheet.
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Planning Versions
Planning Versions
The planning versions set up the data that are available for use. A
model with the same supply network can have slight alterations in
terms of control fields on, say, the product location master, making
Planning versions
are variations of the
planning models
Planning Book
DP and SNP are two SAP SCM applications that use the planning book
intensively. The planning book is the window into the planning data
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for most planners and other users. Planning books consist of the following areas:
Characteristics
Key figures
Data views
Macros
Forecasting functionality
Promotional functionality
Interactive graphics
Planning books provide views of various levels of aggregation as well
as ad-hoc viewing of planning data. Planning books allow you to combine characteristics and key figures in a flexible way for presentation
to the planners. In fact, the planning book is the main user interface
into SAP, and SAP SNP also uses it, but it uses other views as well.
Creating the planning books is a significant part of the implementation because there are many different combinations of planning books
that can be created. Here are some of the important characteristics of
planning books:
Planners can be
assigned to as many
planning books as
you like
Different planners are responsible for different products and geographies, so the planning book can be customized for each planner
or for groups of planners.
The planning book is provided with the capability to perform complex calculations through its own macro builders. The results of the
macro calculation are displayed through extra rows in the planning
book.
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Conclusion
Tip
SAP SCM comes with some standard macros, but they arent sufficient
to cover all of the implementation needs. Unfortunately, creating macros
in a planning book is nothing like creating calculations and formulas in
Excel. So, because of the substantial learning curve, planners typically
cant create their own macros.
Conclusion
This book is designed to provide an introduction to the entire SAP
SCM suite by providing the broadest possible exposure to SAP SCM
with the lowest possible effort on your part. Areas of detail that are
not covered in the book can be found from the many references included in the Bibliography of other SAP SCM books that go into more
detail on the different topics. For the older applications such as SNP,
DP, and PP/DS, this will be relatively simple. For the newer applications such as SAP EM, SAP SNC, and SAP EWM, this will be a bit more
challenging. Of course, SAP training offers courses in all of these topics.
But lets move on to the next chapter and get a broad overview of all
of the applications offered in SAP SCM.
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Index
3PL, 254
4PL, 254
Active version, 41
Activity Areas, 220
Calendar, 114
APO, 100
143
Assortments, 263
Characteristic, 65, 89
Characteristic-based forecast, 63
Characteristic-dependent planning, 76
(CVCs) , 40, 73
Checkpoint, 231
Ciber, 226
CIF, 111, 148, 183
Collaborative forecasting, 74
BAdI, 309
BAPI, 169
ment, 358
BAPIs, 195
Best-fit functionality, 71
296
Collaboration, 358
377
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Index
293
Disaggregation process , 76
143
Doors, 231
Composite, 72
Event, 163
CTM profile, 85
Customer, 243
Excel, 314
DataSource, 68
Data views, 42
67
217
Demand plan, 80
357
Fixed pegging, 86
Demand selection, 85
Forecasting, 71
Deployment heuristic, 94
Deployment optimizer, 94
329
Forecasting functionality, 42
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Index
InfoProvider, 68
Forecasts, 245
Formula, 116
Interactive graphics, 42
Fulfillment, 168
Builder, 91
Geo-coding, 148
J
JIT, 358
Goods release, 94
GPS, 168, 235
GR/GI, 94
Group code, 175
K
Key figures, 40, 42, 65, 89
Kitting, 224
Labeling, 224
Heuristics, 283
Hierarchical planning, 91
IDoc, 169
Linear optimization , 34
InfoCube, 68, 92
Location master , 39
InfoObjects, 65
over, 145
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Index
Lot-for-lot, 94
Packing, 224
MASSD, 41
Mass maintenance , 41
145
MCA, 213
MRP, 82
Phase, 245
Multi-activity, 114
63
tion, 203
Multi-mixed, 114
Multimixed, 88
Number of periods, 75
67, 68
Planning versions, 41
Portal, 163
Operations research, 34
Poisson, 202
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Index
Realignment, 74
348
Receipt, 246
Recipe, 116
Reorder point, 94
348
307, 348
Requirement, 246
Product master, 39
Promotional functionality, 42
Promotion base, 75
292
Promotion forecasting, 74
PSA, 236
PSM, 204
Routing, 219
S
Safety stock, 287, 313
QIE, 226
Management, 174
vices, 158
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Index
334
processor, 265
agement, 169
SAP_MRP_001, 102
214
Single-mixed resource, 88
SIO, 213
SIT, 358
169
SAP_PMAN_001, 102
SAP_PP_003, 131
147
SAP_PP_005, 102
SNP1, 94
SAP_PP_18, 102
SNP2, 94
SAP_PP_CTM, 131
SNP deployment, 94
SNP optimizer, 82
Specifications, 248
SPO, 213
SAP SPP, 60
Step function, 34
348, 353
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Index
TPVS, 88
Subcontractors, 355
Transportation Management , 48
Supersession, 205
Supplier, 243
ing, 288
TSL, 214
Unconstrained planning, 82
294
Univariate, 72
Supply network , 41
V
Value added services, 223
Variants, 192
253, 354
250
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Index
VMI, 91
Wal-Mart, 264
xApp, 213
Warehousing, 354
Warner Lambert, 264
Wave, 225
WordPress, 324
Worklist, 211
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