SAP SCM (APO) Short Overview

Supply Chain Management Advanced Planner and Optimizer Matthieu Lepelley – SAP SCM Senior Consultant


SCM PPDS • Procurement Planning – SCM PPDS or R3 MRP • The Core Interface – CIF • Comments on other modules 2 .1 Agenda • The Supply Chain Management process in SAP • Demand Planning – SCM DP • Supply Network Planning – SCM SNP • Production Planning and Detailed Scheduling .

at a minimal cost for the company. for instance 3 .2 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. An efficient Supply Chain will enable the company to have:  a higher service level = less shortages = less customers disappointed = more sales  a lower stock level = less cash needed to run the operations  lower operational costs = less emergency shipments.

this production plan is used to source the required components (Procurement Planning). Finally. These steps are performed in different modules of the SAP SCM solution (formerly SAP APO – Advanced Planning and Optimizer). 4 . From this distribution plan is deduced an ideal production plan (Production Planning and Detailed Scheduling). described briefly in the following slides. Then the optimal product quantities to distribute in the company’s network are determined (Supply and Network Planning).2 The Supply Chain Management process in SAP The process starts by forecasting the future sales (Demand Planning).

This is estimated via the process presented in the following slide. performed periodically (monthly. in which quantity and on which date. 5 . Its objective is to determine which products are needed for which customer or location.3 Demand Planning – SCM DP The Demand Planning process is performed in the SCM DP module. weekly… depending on the company and type of product).

3 Demand Planning – SCM DP Monitor forecast accuracy Upload new products data Upload last period sales Release forecast to Distribution Planning Clean sales history of exceptional events Add promotions Adjust the forecasts Launch statistical forecast 6 .

4 Supply Network Planning . warehouses) to reach the target stock level and fulfill the demand at each of these locations. Its objective is to plan the stock transfers needed between the different locations (factories. 7 .SNP The Supply Network Planning Process is performed in the SNP module.

PPDS The Production Planning and Detailed Scheduling process is performed on each factory.5 Production Planning and Detailed Scheduling . 8 . limit overstocks as well as products set-up time (time lost when switching from a product to the next). Its objective is to determine the optimal quantities to produce in order to fulfill the demand.

the target stock level on the factory.…) the Production Planning determines how much is to be produced for all each product per period. 9 .5 Production Planning and Detailed Scheduling .PPDS By considering the demand on the factory (Sales orders. and then for the intermediary Semi-Finished Products. and the production constraints (lot sizes. or stock transfers to warehouses). forecast. This is calculated for the Finished Products.

5 Production Planning and Detailed Scheduling . the different production orders are scheduled optimally within a period. 10 .PPDS Then by performing a Detailed Scheduling.

This process can be performed in the SCM PPDS module for critical components to be planned in detail.6 Procurement Planning – SCM PPDS or R3 MRP 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. or in SAP R3 using the Materials Requirements Planning (MRP) functionality. 11 .

… The Core Interface (CIF) is the standard interface between these two environments.CIF SAP SCM and SAP R3 are two different systems. transfer orders. Some SAP R3 data is sent regularly to SAP SCM for the Supply Chain Management process: product master data. 12 . sales orders.7 The Core Interface . which need to be integrated.… Some SAP SCM data is also sent to SAP R3 to perform the related execution processes: production orders.

8 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 • Transport Planning/Vehicle Scheduling – TPVS: to realize the detailed transport plan of the products •… 13 .

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