_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
© SAP 2007-2008 / 0

SAP Supplier Network Planning (SNP):
Features, Functions, Best Practices,
and Infrastructure

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Claudio Gonzalez
SAP America

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

What to Expect from This Workshop

_________________________________

Introduction to Supply Network Planning (SNP)

_________________________________

Learn about the various features in SNP
Understand how and when to use these features

_________________________________

„
„

How SNP fits into the planning process
„
„

Where does it fit into your overall planning process?
Integration with other SAP modules

What to consider when implementing SNP
„
„

Project team consideration
Change management aspects

At the end, you should have a good overview of:
„
„

SNP as a module in SAP APO
What to consider, watch out for, and dig further into

© SAP 2007-2008 / 2

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

What We'll
We’ll Cover ...

_________________________________
_________________________________
_________________________________

Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 3
Planning Horizon
Planning Horizon
Demand Planning (DP)

Planning horizon goes from
wide to narrow
SAP APO SNP is used for:
„

„
Production Planning (PP)
„

Deployment (SNP)

TLB – Transport Load Builder (SNP)
© SAP 2007-2008 / 4

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________

Supply Network Planning (SNP)

Detailed Production Scheduling (DS)

_________________________________

Mid- to long-term planning
to create a feasible supply
plan
Short-term planning to
deploy product to
warehouses
Build trucks

How wide and how narrow
varies from industry to
industry, for instance:
„
„
„

SNP: 3 months to 18
months
Deployment: 10 days to
30 days
TLB: 5 days to 15 days

SNP Planning Functionality
Mid- to Long-Term Planning Methods

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________

„

SNP Heuristic

_________________________________

„

Capable-to-Match (CTM)

_________________________________

„

SNP Optimizer

_________________________________

Deployment (Short-Term Replenishment Planning)
„

Deployment Heuristic

„

Deployment Optimizer

„

Deployment Prioritization

Transportation Load Builder (TLB)
„

Grouping of deployment stock transfers to a Stock Transfer
Order (STO)

© SAP 2007-2008 / 5

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Defining the Planning Horizon in SNP
Starting point for planning with SNP is defined with the
SNP Production Horizon
„
„

Defined in calendar days, weeks, or months
Calculation starts on the:
„
„

„

System date
Planning start date of the Planning Book

_________________________________
_________________________________

Defined globally by planning version or by product and
location

SNP Production Horizon: 25 calendar days
Not planned by SNP

_________________________________
_________________________________

SNP Stock Transfer Horizon can also be used to
define the starting point for planning
Example:
„

_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Planned by SNP
Planning horizon

25 Calendar
© SAP 2007-2008
/ 6 days

Defining the Planning Horizon in SNP
(cont.)

_________________________________
_________________________________

SNP Horizons

_________________________________

„

SNP Prod Horizon – No planned orders created

„

SNP Stk Trans Horizon – No PurReq created

_________________________________

„

Extended SNP Prod Horizon – only manual planned orders
in this horizon, must be in complement with SNP Prod
Horizon, not standalone

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 7

SNP Planning Sequence and Flow

_________________________________

Set up master data and
supply chain model

Build loads for
non-assigned
transport orders

_________________________________
_________________________________
_________________________________

Release demand
plan

_________________________________

TLB run

Perform SNP Heuristic,
Optimization, or CTM run

Deployment
run

Check plan/
solve problems

_________________________________
_________________________________

Release constraintbased SNP
plan to DP
© SAP 2007-2008 / 8

_________________________________
_________________________________

Finalize SNP plan
and release to PP/DS

_________________________________

Interactive Planning with SNP
Planning Book

_________________________________
Time
Buckets

SNP Planning
Book Screen

_________________________________
_________________________________

Shows data selected
Planning Book
Executable
Functions (by
Location,
Network, MultiLevel)

The selection profile
shows selection
IDs used by the
current planner

Key figures

This section of the screen can display different data
(Alerts, Product View) depending on selection made

_________________________________

SNP plans in buckets, not to individual orders by dates
and times
Data can be stored in Order liveCache or Times Series

Buckets can be defined as daily, weekly, or monthly
Time bucket profiles are used to define the buckets and
planning horizon
Different buckets can be used over the planning horizon
Example for a 12-month planning horizon:
„
„
„

Week 1 to 4 – daily
Week 5 to 30 – weekly
Rest – monthly

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Demand and supply is grouped together to one number per
bucket
„

_________________________________
_________________________________

Planning in Buckets with SNP

„

_________________________________
_________________________________

Data
section

© SAP 2007-2008 / 9

„

_________________________________
_________________________________

The Data Views
area is where the
planner selects
Planning Books
and Data Views
You can use
macros to perform
complex
calculations
quickly and easily

_________________________________

_________________________________

Detailed orders per bucket can be displayed

© SAP 2007-2008 / 10

Key Figure Definitions
SNP Key Figures

© SAP 2007-2008 / 11

_________________________________
Source

_________________________________

Forecast

This will come from Demand Planning after DP release to SNP

Sales Order

This will come from SAP ERP into SAP APO via CIF. Sales orders will
consume the forecast.

_________________________________

Distribution Demand
(Planned)

Stock transfers that are generated during the SNP planning process and
updated in every planning phase. The distribution demand shows the
supplying location’s view of these stock transfers (the view from the receiving
location is provided by the distribution receipts). This will be populated after
Distributed Resource Planning (DRP) run for non-subcontracting materials.

_________________________________

Distribution Demand
(Subcontracting)

Same as Distribution Demand (Planned) for subcontracting materials

Distribution Demand
(Confirmed)

Same as Distribution Demand (Planned), but as a stock transfer to the
receiving plant. These are also called Deployment Requisitions. Distribution
Demand Planned is populated by the deployment process based on
inventory Available-to-Deploy (ATD). Distribution Demand Confirmed will
consume the Distribution Demand Planned.

Distribution Demand (TLB)

Stock Transport Order (created during TLB run). Distribution Demand TLB
will consume Distribution Demand Confirmed.

Distribution Receipt
(Planned)

Stock transfers that are generated during the SNP planning process, and
updated in every planning phase. The distribution receipt shows the receiving
location’s view of these stock transfers (the view from the supplying location
is provided by the distribution demand). This will be created as above, but on
receipts side.

Distribution Receipt
(Subcontracting)

Same as Distribution Receipt (Planned) for subcontracting materials
(receiving side)

Distribution Receipt
(Confirmed)

Same as Distribution Receipt (Planned), but as a stock transfer to the plant
(receiving side)

Distribution Receipt (TLB)

Same as Distribution Receipt (Planned), but as STO plant (receiving side)

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Key Figure Definitions (cont.)
SNP Key Figures

© SAP 2007-2008 / 12

_________________________________
Source

In Transit

Inbound Deliveries or Advanced Shipment Notifications for POs
or STOs from SAP ERP

Production (Planned)

Production Planned at manufacturing plant

Production
(Subcontracting)

Same as Production (Planned) but for subcontracting material

Production
(Confirmed)

Same as Production (Planned) but for confirmed production

Stock On-Hand

Current or Projected unrestricted inventory available at a location

Supply Shortage

Difference between Demand and Supply calculated by a macro

Reorder Point

Threshold value for the available stock below which procurement
proposals should be created (from Product Master)

Safety Days of Supply

Target value for the days’ supply of a location product (from
Product Master)

Safety Stock Level

Represents a stock level that should be reached through
planning in order to smooth out production and cover sporadic
requirements

Days’ Supply

The system calculates the days’ supply as follows: Stock is
divided by daily demand (macro calculation)

ATD Receipts

Available-to-Deploy (macro calculation) for receipts (what you
can deploy as receipts)

ATD Issues

Available-to-Deploy (macro calculation) for issues (what you
deploy as issue)

Macros in SNP

„

Macros are assigned to Planning Books and Data Views
Can be executed automatically or on demand by the user

„

Unlike in DP, SNP has many standard macros provided by SAP
Standard macros might be sufficient most of the time

Custom macros are like “user-defined” formulas
„
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________

Can choose from SAP-provided standard macros or build
custom macros in SAP APO
„

_________________________________

_________________________________

Macros function similarly to formulas in spreadsheets, but are
more advanced and provide greater flexibility
„

_________________________________

Provide planners with the ability to model user-specific planning
scenarios based on individual business tasks
Can create context- and user-specific planning views

Can trigger alerts in the Alert Monitor or Data View to inform the
planner of specific business situations

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 13

Building Macros in SNP

_________________________________
_________________________________

Different
elements
available
for
building
macros

Assignments
that
determine
how and
when the
macros are
executed

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

All macros assigned to a
Book and
© Planning
SAP 2007-2008
/ 14Data View

Work area for
creating/changing macros

Calling Macros in SNP Interactive
Planning
Directly executed
macros are only
executed by
the user in the
Planning Book

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Default macros
are executed
automatically
whenever data is
entered in the
Planning Book
Start macros
are executed
automatically
when the data is
loaded into the
Planning
Book / 15
© SAP
2007-2008

What We'll
We’ll Cover ...

_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________

Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 16
Master Data Objects Needed for
SNP
Locations
„

Production plants, DCs, vendors, customers, etc.

Transportation lanes
„

Relationship (connection) between locations

Products
„

By location (product location – a unique object in SAP APO)

Resources
„

Production, handling, storage, transportation

SNP Production Process Models (PPMs)/Product
Data Structure (PDS)
„

Based on production version with Bill of Material (BOM),
routing, or master recipe from SAP ERP system

© SAP 2007-2008 / 17

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Core Interface (CIF) for Master Data
Transfer
SAP ERP

Initial Data
Transfer

SAP ERP Master Data

_________________________________

SAP APO
SAP APO Master
Data

Plant

Location

Customer

Product

Resource
Work Center
Production
Process Model
or
Production
Data Structure

Routing/Recipe
Bill of Material/Prod Version

Core Interface (CIF) for Master Data
Transfer (cont.)

_________________________________
_________________________________
_________________________________

_________________________________
_________________________________

Transfer of master data
SAP ERP is the execution system for master data, and it
retains ownership of all master data
CIF always transfers SAP APO-relevant master data from
SAP ERP to SAP APO
„

_________________________________

Incremental
Data Transfer

© SAP 2007-2008 / 18

„

_________________________________
_________________________________

Material Master

„

_________________________________
_________________________________

Vendor

„

_________________________________

Core interface performs initial data transfer as well as subsequent
data changes
Subsequent data changes can be scheduled to run in real time
or periodically

It is recommended to schedule master data change transfer
periodically during off hours for performance and system
integrity reasons
„ It is possible to set the definitions of SAP APO-relevant
master data in SAP ERP or via CIF user exits. New “SAP
APO” fields often have to be set up in SAP ERP
because they do not currently exist there.
© SAP 2007-2008 / 19
„

Most Common Locations in SAP APO
for SNP
SAP APO Location/Location Type

SAP ERP Master Data

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________

Customer

1010

Customer

_________________________________

Vendor

1011

Vendor

_________________________________

1007

MRP Area

_________________________________

CIF

MRP Area
Plant

1001

Production Plant

1002

Distribution Center

© SAP 2007-2008 / 20

Node Type

5000

PL

6000

DC

_________________________________
_________________________________

DRP Customizing in SAP ERP
Plant

_________________________________

SAP ERP IMG:
Production>DRP>Basic Settings>
Maintain Assignment of Node
Type-plant

_________________________________
_________________________________

Data in Locations
Locations contain
data that is:
„
„

CIF’d over from SAP ERP

„

Data maintained directly
in SAP APO
„

„
„
„

„

Time zone

„

ERP vendor number for
plant

Address

„

„

Production
Warehouse
Shipping
Receiving

Resources
„

General data:
„

Planning calendars for:
„

Maintained directly in
SAP APO

Data that is CIF’d from
SAP ERP
„

_________________________________

Handling
Storage

Category groups for:
„
„
„

Stock
Available-to-Deploy receipts
Available-to-Deploy issues

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 21

Planning Calendar/Time Stream in
SAP APO
Time stream (planning calendar) defines available
days/time (i.e., working time) using:
„
„
„
„

Time zone
Factory calendar
Time horizon
Calendar type
„
„

„

Factory calendar (with gaps)
Period calendar (without gaps)

Period type
„
„

Weekly
Monthly

Two types of time streams exist in SAP APO:
Standard SAP APO time stream
„ CTM time stream (without gaps is suggested)
© SAP 2007-2008 / 22
„

Time Stream ID
General data
„
„

Horizon
Time zone

Calendar type
„

Factory Calendar
(with Gaps)

„

Period Calendar
(Without Gaps)

Period type
„
„

Weekly
Monthly

Period definition
© SAP 2007-2008 / 23

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_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Factory Calendars in SAP APO
Factory calendars in SAP APO are the same as in SAP ERP
„
„

Define workdays of a week and holidays
Can be synchronized with SAP ERP via Transfer Global Settings

Transfer Global Settings
„

Global master data settings available for transfer from connected
SAP ERP source system:

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

„

Units of currency

„

Units of measure

_________________________________

„

Fiscal year variants
Factory calendars

_________________________________

„

„

_________________________________

Various available options for transfer:
„

Update tables

„

Rebuild tables
Tcode: RSA1

„

_________________________________
_________________________________

© SAP 2007-2008 / 24

Time Zones
Set of rules that defines the offset of the user’s local time from
Coordinated Universal Time (UTC)
„

UTC replaces the term Greenwich Mean Time (GMT)

The local time of a particular location or user depends on their
position on the globe
The offset of a location from UTC is influenced by:
„

Geography (position on the globe)

„

Political factors (time zones are assigned for a country, region, or even a
postal code)
Daylight Saving Time (DST), if applicable

„

Time zones are important master data that help derive realistic
lead times for procurement proposals during planning runs
Can be set by the user in his or her user profile settings
SU3) / 25
©(txn.
SAP 2007-2008

Transportation Lanes
The Transportation Lane defines:
„
„
„

Which location is the source of a product to a target location
Relationship between two locations
The transport lead time
„

„
„

The means of transportation (truck, train, plane, etc.)
The capacities of each means of transport in a lane,
including:
„
„
„

„

Needs to be in sync with routes in SAP ERP

Volume
Weight
Number of pallets

Products that can be transported from the source to the
target location (defined for each lane)
„

Product assignments can be maintained via Special
Procurement Key in SAP ERP

© SAP 2007-2008 / 26

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Transportation Lanes (cont.)

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Prioritization Factor

_________________________________
© SAP 2007-2008 / 27

Product/Material Master

_________________________________

The Material Master in SAP ERP correlates with the Product
Master in SAP APO
Product Master in SAP APO is created by:
„
„
„

Transferring Material Master from SAP ERP to SAP APO via the CIF
Creating directly in SAP APO
Importing from a non-SAP system

Certain data is transferred from SAP ERP to SAP APO
„
„
„
„

_________________________________
_________________________________
_________________________________
_________________________________

Basic data
Units of measure
MRP data
Classification data

_________________________________
_________________________________

Other data is maintained directly in SAP APO
„

_________________________________

Special settings that don’t exist in SAP ERP for: (unless new fields are
created)

CTM
„
Optimizer
„
Deployment
© SAP 2007-2008 / 28
„

Product/Material Master Basic Data

_________________________________
_________________________________

_________________________________

Values relevant to SAP APO will pass through the CIF
SAP ERP
SAP APO

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

SAP ERP
© SAP 2007-2008 / 29

_________________________________

Product/Material Master Planning
Parameters

_________________________________

Values relevant to SAP APO will pass through the CIF

_________________________________

SAP ERP
SAP APO

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 30

Resources

_________________________________

Resources are created to represent the capacities and working
times of production lines, equipment, and labor
Production resources can be transferred from SAP ERP to
SAP APO
SAP ERP

SAP APO

Plant

1000

Work Center

F1Y1

_________________________________
_________________________________
_________________________________
_________________________________

Resource

_________________________________
Two Multi Mixed

Capacities

Location

Resource Name

Cat
P

1000

P

1000

_________________________________
_________________________________
_________________________________

Cap Category

001

Machine

WF1Y1_1000_001

Cap Category

002

Labor

WF1Y1_1000_002

_________________________________

© SAP 2007-2008 / 31

Resource Types in SAP APO

_________________________________
_________________________________

Capacity Definitions in Time

Available Capacity/Activity

Time Continuous

Single

Single Activity
Resource

Time Continuous
and Time Intervals

_________________________________
Time Intervals

_________________________________

Single Mixed
Resource
Bucket Resource

Multi

Multi Activity
Resource

Multi Mixed
Resource

PP/DS

PP/DS & SNP

_________________________________
_________________________________
_________________________________
_________________________________

SNP

_________________________________
_________________________________

© SAP 2007-2008 / 32

System of Origin for Resources

_________________________________

Production resources are typically CIF’d from SAP
ERP to SAP APO
„

Capacity information is maintained in SAP APO, not in
SAP ERP
„

Needed in SAP ERP and SAP APO for link between routing/recipe
in SAP ERP and PPM/PDS in SAP APO

Handling, storage, and transportation resources are
created and maintained in SAP APO only
Mixed resources can be used in both SNP and PP/DS,
and are recommended to use as much as possible
„

Very difficult to change resource type later if PP/DS is used

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 33

SNP PPMs

_________________________________
_________________________________

PPM has detailed information required for producing a product
„
„
„

Resources
Components
Plan and PPM
Time

_________________________________
_________________________________

PPM is a combination of routing and BOM from SAP ERP in one
object in SAP APO
Finished
O
The plan puts together:
product
„
„

Costs
Routing
„
„

„

_________________________________
_________________________________

Co-products

Operations
Activities

I

I

O

O

I

I

I

Bill of Material (BOM)
„
„

Input products (I)
Output products (O)

PPMs are assigned to the plan:
„
„

Location-dependent (PPM ID)
Minimum/maximum lot sizes for the finished product
Validity periods

_________________________________
_________________________________
_________________________________
_________________________________

„
© SAP 2007-2008 / 34

Converting a PP/DS Product Process
Model to an SNP Product Process Model
Production versions (including routing and BOM) are transferred
as PP/DS PPM from SAP ERP to SAP APO
„

SAP APO allows you to generate SNP Production Process Models
(PPMs) based on existing PP/DS PPMs

Conversion options for generation of SNP PPMs are:
„
„

SNP PPM generation with lot size margin
SNP PPM generation without lot size margin

Conversion process needs to be repeated for subsequent
changes that were made to routings/BOMs and/or PP/DS PPM
SNP PPM can be created directly in SAP APO without reference
to a PP/DS PPM
„
„

Transaction to maintain PPMs
User exit to create PPMs programmatically (BEST option)

© SAP 2007-2008 / 35

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Product Data Structure
„
„
„

„
„
„
„

_________________________________

A structure generated in SAP APO from a production
version or Bill of Material in SAP ERP … similar to the PPM
Contains information about the production resource and the
component assignment for the production of a product
You can use PDS as a source of supply for in-house
production in PP/DS, SNP, Capable-to-Match (CTM), and
Demand Planning (DP) areas
SNP PDS can be transferred separate from PP/DS PDS
Cannot be maintained in SAP APO
Can select to use on the Product Master – PP/DS Tab
Alternate object to PPM going forward (SAP SCM 4.1 and
above)
„
„

Restrictions exist which might require use of PPMs
See also SAP Notes 705018, 709884, and 744445

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 36

SNP Product Process Model or PDS
Functionalities supported by
PDS, but not by PPM:
„

Engineering Change
Management (ECM) for PP/DS

„

Subcontracting in SNP is fully
integrated with SAP ERP

„

Direct transfer of SNP-PDS from
SAP ERP (no conversion step)
Use of object dependencies
in SAP APO
Order-BOM and WBS-BOM
Rapid planning matrix

„
„
„

Functionalities supported by
PPM, but not by PDS:
„
„
„
„

Maintenance in SAP APO
Push-production
Container resources
Net flag for component scrap

„

Step function for the standard
value of the duration

„

Overrule the synchronization
setting of the resource on
activity level

„

Restriction of the validity
requirements of an order on
activity level

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 37

What We'll
We’ll Cover ...

_________________________________
_________________________________
_________________________________

Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 38

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Planning Methods in SNP
SNP Heuristic
„
„
„

Heuristics run creates an Infinite Supply Plan
Sourcing can be done via quota arrangements
Capacity leveling as second step for finite plan

Capable-to-Match (CTM) profile and rules-driven
„
„
„

Sourcing based on priorities or quota arrangements
Finite capacity planning possible
SNP and PP/DS modes possible

SNP Optimizer
„
„
„

Cost/penalty-driven
Finite capacity planning possible
Full constraint-based planning possible

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 39

Heuristics Definition
What does the word Heuristic mean?
„

“Heuristic” comes from the Greek word “Heuriskein,” which
means “to find or discover”
„

„

It was originally used to describe the art of invention

In SAP SCM, it means to find a sufficiently good solution in
an acceptable period of time

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

In other words …
„

SNP Heuristics will allow the plan of materials either
through production or procurement on an infinite manner

_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 40

Heuristics Scenario — Sourcing

_________________________________
_________________________________

How is sourcing determined? Priorities and quotas

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 41

SNP Heuristic and Capacity Leveling

_________________________________
_________________________________

Repair-based planning process consisting of two steps:
„
„

_________________________________

Heuristics
Capacity leveling

_________________________________

Heuristic: Infinite planning
„

Performs requirements planning
„
„

„
„
„

_________________________________

Location by location
Product by product

Plans/creates infinite supply plan to satisfy demand requirements in the
supply chain network
Capable of handling quota arrangement functionality for source
determination
Explodes the BOM and generates supplies in the network

Capacity leveling is done in a separate step
„
„
„

Address capacity over and under load
Can be executed interactively or in background job
Alternative Resource option as of SAP APO 5.0

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 42

Heuristic Options

_________________________________

Heuristics can be run either interactively or in the background.
The following three options are available interactively through
the planning book:
1) Location Heuristics – Plans only selected location product
2) Network Heuristics – Plans the selected product for all
locations
3) Multi-level Heuristics – Plans the selected product with all
components at all locations
„

Note: Multi-level Heuristics is not available to run in the background,
but there is an option to take components into account in the
planning run

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 43

Heuristics Scenario — Infinite

_________________________________
_________________________________

Plans receipts based on unconstraint capacity

_________________________________

Capacity
140
120

SNP

Unit

03/0
5/07

03/1
2/07

03/1
9/07

Available
Capacity

Hrs.

120

120

120

Overloading
Alerts

117

_________________________________

100
80

_________________________________

60

_________________________________

40

_________________________________

20

_________________________________

83

Capacity
Consump
tion
Capacity
Level

Hrs.

%

100

83

140

117

100

83

83

0
3/5/2007

© SAP 2007-2008 / 44

_________________________________

3/12/2007

3/19/2007

_________________________________

Capacity Leveling
„
„
„
„

_________________________________

Backward and Forward leveling is supported
Backward: Looks in the past for available capacity
Forward: Looks in the future for available capacity
Backward/Forward: Looks for capacity in both directions
Capacity

140

Overloading
Alerts

100

Backward

Forward

83

83

80

0
3/5/2007

3/12/2007

3/19/2007

Capacity Leveling in SNP

_________________________________
_________________________________

Alternative resource option in SAP APO 5.0

„
„
„
„

Check box to activate the option
Procurement Priority on the PPM/PDS is used to determine the order in
which the alternates are selected
All Relevant Resources = Select ALL existing resources in SAP APO
Resource = Specific resource(s) as defined by user
Selection Profile = Resources as defined in the profile
Source Determination Level: Use only if Resource Hierarchy exists
(AGG)
„
„
„

_________________________________

_________________________________

20

„

_________________________________

_________________________________

40

„

_________________________________

_________________________________

60

© SAP 2007-2008 / 45

_________________________________

_________________________________

117

120

_________________________________

Only Header Level: All subresources are replaced by header resources
Only Sublevel: All header resources replaced by subresources
All Levels: Resource set remains unchanged

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 46

CTM General Concept

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 47

Source: SAP

CTM Planning Process and
Components

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 48

Source: SAP

CTM Regenerative Planning

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 49

Source: SAP

Demand and Supply Aggregation

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 50

Source: SAP

Demand Prioritization

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 51

Source: SAP

CTM 5.1 Enhancements
Supply Distribution after or before a CTM planning run transfers
surplus receipts and stocks available to other location in the
supply chain model
To ensure a feasible transfer, lot sizes as well as transportation
and handling resources are now considered during the supply
distribution
„
„

New supply distribution is incorporated into CTM planning run
One level push of surplus supply happens according to the outbound
quota

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 52

SNP Optimizer Overview
„

Just like Heuristics, Optimizer is a quantity-based,
cross-location planning engine

„

Unlike Heuristics, the Optimizer takes cost-based
constraints to arrive to a most feasible and
cost-effective solution

„

Optimization is based on linear and mixed integer
linear programming

„

The Optimizer does not use quotas, but can create
them
„

Note: As of SAP APO 5.1 – inbound quotas
are supported

© SAP 2007-2008 / 53

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

SNP Optimizer

_________________________________

„

The Optimizer uses linear programming methods for
planning, such that it simultaneously considers all relevant
factors, making the entire chain as a single problem

„

The objective of the Optimizer is to find the optimal solution
to an equation (target function) in which all the cost and
penalty factors are considered simultaneously
Since the Optimizer assesses alternatives
this way, it can determine the best
feasible plan on the lowest cost
SNP Optimizer run modes:

„

„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

One time period (bucket)

„
„

Running the Optimizer from the Interactive
Planning Desktop
Running the Optimizer in the background

– Likely
© SAP 2007-2008 / 54

way to run it in a live environment

Demand at a location

_________________________________
_________________________________
_________________________________
_________________________________

Dependent demand at a
location
Processing flow

Optimizer Scenario — Sourcing
How is sourcing determined? Least feasible cost.

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 55

Linear vs. Discrete
The use of fixed and minimum lot sizes and time-dependent
costs (cost functions) will require a discrete run
Discrete runs have the potential to significantly increase the run
time to arrive at an optimal solution

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 56

Optimizer Profile — General
Constraints

_________________________________
_________________________________

Activates the
constraints during
optimization
Activates maximum
lot size
Activates safety stock
constraint, absolute vs.
relative option

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Activates shelf-life
constraint

_________________________________

© SAP 2007-2008 / 57

Optimizer Profile — Automatic Cost
Generation

_________________________________
_________________________________
_________________________________

Activates
parameters
Determines
transactional
priority
Activates
product
priority

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 58

Automatic Cost Generation
Costs are generated based on determined
business goals
Costs used during generation will override
maintained costs
Not all costs are generated
Geared towards less complex models
SNP Cost Profile not taken into consideration

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 59

SNP Optimizer 5.1 — Quota
Arrangements (New)

_________________________________

SNP Optimization respects time-dependent inbound quota
arrangements on procurements from source locations, external
suppliers, and in-house production
Deviation from quotas are penalized and visualized with the Objective
function
It is possible to define inbound quotas for products or product groups

„

„
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Product Group

Penalty for deviation below target quantity
Penalty for deviation above target quantity

Time-dependency

Optimizer Profile
General Constraints Tab:

_________________________________
_________________________________

© SAP 2007-2008 / 60

Profit Driven Supply Network
Optimization — Penalty Groups

_________________________________

„

Consider penalty groups to prioritize customers or customer segments
within SNP optimization

„

Use the grouping as input for layered SNP Optimization to sequentially
plan customer segments according to their importance

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 61

SNP Planning Methods Comparison
Function
Safety Stock
Min/Max lot-size
Rounding value
Transportation Duration
Selection of Means of Transport
(Dates vs. Costs)
Stock Transfer Horizon
Production Duration
Production Resource
Transport Resource
Handling Resource
Storage Resource
Quota Arrangements
Procurement Priority of
Transportation Lane

SNP
Heuristic
Yes
Yes
Yes
Yes
Yes

CTM
Yes
Yes
Yes
Yes
Yes

SNP
Optimizer
Yes
Yes1
Yes1, 7
Yes
Yes

Yes
Yes
No4
No5
No5
No5
Yes
Yes

Yes3
Yes
Yes
No5
No5
No5
Yes
Yes

Yes2
Yes
Yes
Yes
Yes
Yes
No6
No8

1

With discrete optimization only but not with linear

5

Capacity loads are calculated but no finite planning

2

Setting in Optimizer profile

6

3

Setting in control setting

SNP Optimizer can be used to create quota
arrangements – YES in SAP SCM 5.1

4

Not in SNP Heuristic, but can be done with
capacity leveling step

7

Either from product master or transportation lane

8

Transportation cost is used to select means of transport

© SAP 2007-2008 / 62

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

SNP Planning Methods Comparison
(cont.)

_________________________________
_________________________________

Complexity and Degree of Difficulty

HEURISTICS

CTM

OPTIMIZER

_________________________________
_________________________________

FUNCTIONAL COVERAGE
QUALITY OF PLAN OBTAINED
DIFFICULTY OF PARAMETERIZATION/CONFIGURATION
MAINTENANCE
INTERACTION ON PART OF USER
INTERPRETATION OF RESULTS

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

PERFORMANCE
VIABILITY OF PARAMETER DEFINITION

_________________________________

© SAP 2007-2008 / 63

What We'll
We’ll Cover ...

_________________________________
_________________________________
_________________________________

Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 64
Deployment Definition
Deployment determines which distribution center and
VMI customers’ demand can be covered by
current receipts
If quantities are not sufficient, or if they exceed the
demand, deployment can make adjustments to the
stock transfers made by the SNP run
Orders created by this tool are called Deployment
Stock Transfers

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

„

Deployment is only used to confirm stock transfers (actual route
planning, transport service selection, and delivery generation are
handled by TP/VS)

© SAP 2007-2008 / 65

_________________________________

Available-to-Deploy Calculation

1000
900
400

05.01.2007
06.01.2007
07.01.2007

_________________________________

Requirements:
100 (DC1)
500 (DC2)
800 (DC1+2)

Demand

Today

ATD Quantity:
Supply

Date:

_________________________________

_________________________________

Detailed requirements per DC:
DC1
DC2

200
600

_________________________________

Deployment Results
05.01.2007
06.01.2007
07.01.2007
07.01.2007
„
„

„

_________________________________

Plant to DC1
Plant to DC2
Plant to DC1
Plant to DC2

100
500
100
300

Available-to-Deploy (ATD) quantity defines the quantity that is available in the
delivering plant for distribution
Defined by ATR (receipt) and ATI (issue) category groups in customizing, and
assigned to Location master or Product master at the location level
(SAP SCM 5.0)
Receipts (Available-to-Receipts) can be stock on-hand, production orders,
purchase orders, etc.
Issues (Available-to-Issues) can be STOs, sales orders, deployment orders, etc.

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

„
© SAP 2007-2008 / 66

Deployment Methods in SNP

_________________________________

Deployment Heuristic
„
„

_________________________________

Calculates a replenishment plan for each product at a
delivery location
Rules-based

_________________________________
_________________________________
_________________________________

Deployment Optimizer
„

Calculates a replenishment plan for a product in all
locations within the network

„

Cost-based

_________________________________
_________________________________
_________________________________

Deployment Prioritization

_________________________________

„

Extra step after deployment run

„

Determines importance of deployment order

_________________________________

© SAP 2007-2008 / 67

Deployment Heuristic

_________________________________

Deployment adjusts the stock transfers for short-term changes
on both the supply and demand side (distribution detailed planning)

The Deployment Heuristic uses
predefined rules for:

DC1

„

Fair share in a shortage situation

„

Push deployment in a surplus
situation

Hierarchical view of supply network
Plant

© SAP 2007-2008 / 68

DC2

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

„

Calculates replenishment plan for a
product in a delivery location

_________________________________

„

Started for one product; product by
product

_________________________________

Bases for Deployment Heuristic are
the stock transfer requisitions
(planned) created by an SNP
planning run

_________________________________
_________________________________

Deployment Heuristic vs. Optimizer
Heuristic
„
„
„
„

Heuristic

Started for one source location
and multiple target locations
Product by product
Rules-based
Easier to use and deploy
Focuses on network
„

„
„
„
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Optimizer
„

_________________________________

Optimizer

Multiple source and
target locations

All products and all locations
Coverage maximization
Cost-based optimization
Can consider constraints like
transportation and storage capacity

_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 69

SNP Planning and Deployment Run
Sequence
Heuristic
„

SNP Heuristic (or SNP Optimizer)
„

„

Creates distribution demand (planned)

Deployment Heuristic
„
„

Distribution demand (planned) is the basis for deployment
Creates distribution demand (confirmed)

Optimizer
„

Deployment Optimizer
„
„

„

Deletes all distribution demand
Creates distribution demand (confirmed) from scratch

SNP Optimizer (or SNP Heuristic)
„
„

Distribution demand (confirmed) are firmed for SNP run
Creates distribution demand (planned)

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 70

Deployment Prioritization
Prioritization of deployment stock transfers: Introduction

_________________________________
_________________________________

„

Deployment priority further optimizes the deployment process

_________________________________

„

Deployment prioritization considers deployment orders from Deployment
Heuristic or Optimizer as input

_________________________________

„

Prioritization sets a priority number for all deployment stock transfers
Prioritize can be displayed during Truck Load Building (TLB)

_________________________________

„

Prioritization function groups the deployment stock transfers
into three categories:
„
„
„

Cat. 1 – stock transfers for fulfilling shortages
Cat. 2 – stock transfers for fulfilling safety stock level
Cat. 3 – stock transfers for fulfilling planned replenishments above
safety stock levels

© SAP 2007-2008 / 71

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Deployment Prioritization (cont.)
Deployment prioritization assigns a priority number to all
deployment stock transfers by category
The assigned shipment priority number indicates the relative
urgency of the deployment stock transfer
Category

Priority Range

Priority Description

Cat. 1: Stock transfers for 0
fulfilling shortages

Highest priority of all
i.e., 0

Cat. 2: Stock transfers for 1-10
fulfilling safety stock level

Represents the percent of safety
stock level left if not fulfilled
i.e., 1 = 10%
6 = 60%

Cat. 3: Stock transfers for 11-99
fulfilling planned
replenishments above
safety stock levels

Factor above safety stock after
deployment stock transfer received
i.e., 14 = 1.4 X of safety stock
20 = 2.0 X of safety stock

© SAP 2007-2008 / 72

What We'll
We’ll Cover ...

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________

Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 73
Transport Load Builder (TLB)
The TLB’s main purpose is to create multi-product transport
orders (STOs) based on the results of a deployment run
„

For a transportation lane and means of transport

„

For a specified time period

Loads are grouped according to:
„

Products (transportation planner)
Time (pull in horizon)

„

Transportation zones (target and means)

„

Ensures that minimum and maximum
requirements are met for:
„
„
„

Volume
Weight
Number of pallets

© SAP 2007-2008 / 74

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Transport Load Builder (TLB) (cont.)
„

„
„
„

_________________________________

TLB changes the stock transfer
orders (confirmed) from the
deployment run into TLB orders
Stock transfer orders are grouped
together until maximum capacity is achieved
If minimum capacity is not achieved, it has to be
processed manually
There is no tracking of resource usage, product-specific
constraints, or special transport requirements
„

Some basic modeling of constraints is possible by means of
transport

If the planned transport orders do not meet the minimum or
maximum requirements, an alert is generated
„ Only for stock transfer and does not include deliveries for
sales orders
© SAP 2007-2008 / 75
„

TLB Profile
„
„
„
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________

The TLB Profile minimum and maximum values are defined
TLB uses lot size profile when building loads
Load Method: Options on how to load the means of transport (Product
by Product, Equal Loading)
Pull-in Horizon: Number of days from today’s date during which the TLB
can take into account existing deployment stock transfers to create TLB
shipments

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 76

Source: SAP

Load Building
„

Transport loads generated by the tool can be seen in the Interactive
Planning tool by day

„

If minimum capacity was not met within the pull-in horizon, TLB stock
transfers for later deliveries can be moved manually

„

Drag and Drop functionality for unconverted deployment stock transfers
is available

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 77

Transport Load Builder (TLB) —
Interactive

_________________________________
TLB Planning
Screen

Lane and means of
transport selection

Order
Numbers

Deployment
requirements to
be loaded are
displayed here

Truck load section

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Deployment Requirements section

_________________________________
_________________________________
_________________________________
Truck load details (for order
selected above)

© SAP 2007-2008 / 78

Stages of a Stock Transfer in SNP

_________________________________
_________________________________

Stock Transfer Requisition

SNP planning run

_________________________________
_________________________________

Deployment Order Confirmed

Deployment run

_________________________________
_________________________________

TLB Order

_________________________________

TLB run

_________________________________
Stock Transfer Order

Transfer to SAP ERP

_________________________________
_________________________________

© SAP 2007-2008 / 79

Stock Transfer Requisition After
SNP Planning Run

_________________________________

When a Stock Transfer Requisition is created at the receiving location, it creates a distribution
demand at the sending location

_________________________________
_________________________________
_________________________________

Distribution Demand
(Planned) after SNP
Heuristic, CTM, or
SNP Optimizer run

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 80

Deployment Order Confirmed After
Deployment
The Deployment Order Confirmed is displayed as Distribution Demand (Confirmed). Note
that the Stock Transfer Requisitions disappear from Distribution Demand (Planned) line.

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 81

TLB Order Confirmed After TLB Run
The TLB Order/STO is displayed as Distribution Demand (TLB-Confirmed). Note that
the Stock Transfer Requisitions disappear from Distribution Demand (Confirmed) line.

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 82

What We'll
We’ll Cover ...

_________________________________
_________________________________
_________________________________

Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 83

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Alert Monitor in SNP

_________________________________

Alert Monitor provides users with visibility of exception cases in
the Supply Network Plan
You can define, by user:

„

„
„

Which type of alerts to show and their thresholds using Overall Profiles
What data is displayed in Alert Monitor using Display Hierarchies

Exceptions are calculated using macros
SAP provides standard macros and the ability to build your own macros
to create customized alerts

„

Alerts are generated for user-defined planning situations
involving Location products and Resources
The Alert Monitor is organized by profiles per application area:
SDP alert profile – monitoring DP and SNP alerts
TLB alert profile – monitoring TLB and Deployment alerts
VMI alert profile – monitoring VMI alerts

„
„
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 84

Alert Monitor Setup Pointers

_________________________________

Only an Overall Profile
can be assigned to the
Alert Monitor

_________________________________
_________________________________
_________________________________

Be aware of the checked
boxes. They will generate
alerts even if no
threshold is set.

Only the SDP Alert Profile can be
assigned to a Planning Book.
Multiples can be created, but
only one is current on the
Overall Profile.

Issue

_________________________________
_________________________________
_________________________________

The Selection Profile
assignment determines
the products that the
alerts will be
generated against

_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 85

Alert Monitor

_________________________________
_________________________________

Alert Monitor (Transaction /SAPAPO/AMON1)

Interactive Alert Display (transaction
/SAPAPO/SDP94)

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Clicking on an item in the
Alert Monitor will take
you to the Planning Book
with details for that item
© SAP 2007-2008 / 86

_________________________________
_________________________________

What We’ll Cover ...

_________________________________
_________________________________
_________________________________

Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 87
Special Planning Topics

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________

Safety Stock Planning in SNP
Vendor Managed Inventory (VMI)
Subcontracting with SNP
Product Interchangeability
Aggregate Planning with SNP

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 88

SAP APO Safety Stock Planning

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Safety Stock to cope up with uncertainties

Planning
Planning
Realization
Realization

Demand uncertainties (forecast quantity)
Supply uncertainties (replenishment time)
Methods to protect against uncertainty
Overestimate customer demand
„
Underestimate production output quantity
„
Overestimate procurement lead times
„
Build up/ 89
safety stock
© SAP 2007-2008
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Objectives of Safety Stock Planning

_________________________________

Business goal:
„

_________________________________

To ensure (high) service level of product at the lowest cost despite
fluctuations in the various levels of the supply chain

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Uncertainty of supply

Uncertainty of demand

Problem:
„
„

At which locations within the supply chain do you want to have safety
stock?
How much safety stock do you want to hold at a particular location?

_________________________________
_________________________________

© SAP 2007-2008 / 90

Methods for Safety Stock Planning
How to determine safety stock for each product
location?
„

By choosing a safety stock method for a product and
location

What safety stock level?
„

„

„

_________________________________
_________________________________
_________________________________
_________________________________

Basic (standard) safety stock methods
Advanced (extended) safety stock methods

Safety stock planning is embedded into Supply
Network Planning
„

_________________________________

_________________________________

Depending on chosen safety stock method
„

_________________________________

SNP Heuristic and Optimizer
Can be used in CTM and PP/DS applications

_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 91

Safety Stock Fields on Product
Master in SAP APO

_________________________________
_________________________________
_________________________________
_________________________________
SB – Requires fixed safety stock quantity
SZ – Requires safety stock days

Safety Stock Method
(set via CIF or
maintained in SAP APO)

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Fixed safety stock qty (CIFed from
SAP ERP for basic methods)
© SAP 2007-2008 / 92

Values for advanced safety stock methods
- Service level and
- Demand and procurement error

_________________________________

Safety Stock Fields on Product
Master in SAP APO (cont.)

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Safety Days’ Supply (CIF’d from SAP ERP Safety Days) for basic methods
© SAP 2007-2008 / 93

Advanced Safety Stock Planning
Key inputs
„
„
„

Desired service level
Mode of replenishment
Uncertainties
„
„

Deviation between forecasted and realized demand
Deviation between planned and actual replenishment time

Prerequisites
„

Regular demand as opposed to sporadic demand
„

„

Can be used with sporadic demand with SAP SCM 5.0

Backorder scenario (as opposed to lost sales case)

Considerations
„

Location product master data
„
„

„
„

Safety horizon
Target stock level

Selection of “appropriate” safety stock method
Adjustments in Interactive Planning after safety stock run

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 94

Desired Service Level for Safety
Stock
Interpretation of service level
„

Alpha (shortfall event-oriented)
„
„

„

Expected number of periods with complete delivery fulfillment/total number
of periods
Percentage of how often product is delivered on time

Beta (shortfall quantity-oriented)
„
„

Expected quantity delivered in time/expected total demand
Percentage of how much of ordered quantity is delivered

Choosing a service level depends on:
„

Customer satisfaction
„
„

„

Alpha – complete delivery necessary
Beta – partial delivery possible

Costs for late deliveries
„
„

Alpha – backlog-independent (fix) costs of late delivery are significant
Beta – backlog-dependent (variable) costs of late delivery
are significant

© SAP 2007-2008 / 95

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Example of Advanced Safety Stock
Planning Run

_________________________________
_________________________________

SNP Planning Area + Version

_________________________________
_________________________________
_________________________________

Key figure to calculate safety stock
Key figure for Demand Forecast
(transferred from Demand Planning)

_________________________________
_________________________________
_________________________________

Start and end date
for calculation of
forecast error

_________________________________
_________________________________

© SAP 2007-2008 / 96

Result of Advanced Safety Stock
Planning Run

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Safety stock

_________________________________

© SAP 2007-2008 / 97

Special Planning Topics
Safety Stock Planning in SNP
Vendor Managed Inventory (VMI)
Subcontracting with SNP
Product Interchangeability
Aggregate Planning with SNP

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 98

What Is Vendor Managed Inventory
(VMI)?

_________________________________

Business goal:
„

To include key customers in Supply Chain Planning

Benefits overview:
„
„
„
„

Capability for the manufacturer to perform the
replenishment planning tasks for their business partners
Enable better decision support for vendors, along with more
knowledge and control over the logistical process
Increase visibility to actual customer demand as well as
customer inventory levels
Allow manufacturers to make better decisions on how to
deploy goods across various customers, which leads to:
Increased customer service level
Lower transportation costs
Reduced inventory levels
Lower sales costs

„
„
„
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 99

VMI: Component/Process Overview
Customer/Retailer

My Company
SAP APO

SAP ERP

ERP

Generate
Demand
Forecast

Transfer of
Consumption and
Inventory Data

2.
3.
4.

Supply and
Distribution
Planning
Build Efficient
Truck Loads

1.

Transfer of
Customer Forecast

Automated Sales
Order Creation

Automated
P.O. Creation

Pick, Pack, Ship
Goods Issue

Advanced Shipping
Notification

Invoice

Post
Goods Receipt
Post
Invoice Receipt

5.
6.
7.

8.
9.
10.

© SAP 2007-2008 / 100

Receive consumption and
inventory data from
customer
Create demand forecast
Run SNP
Build efficient truck load
(TLB) to replenish stock
Sales order is created
automatically
Purchase order is created
in the customer system
Issue product and send
Advanced Shipping
Notification (ASN) to
customer
Receive product at
customer
Send invoice to customer
Customer receives invoice
and initiates payment

VMI Replenishment Strategies
Min/max replenishment
„
„
„

The inventory is maintained within a fixed band
New sales order is generated as soon as the inventory
reaches the lowest level of the band
Sales order quantity will replenish the inventory to the
maximum of the band

Forecast-based replenishment
The inventory is calculated to maintain forecast coverage for
the specified number of days
„ Sales order is generated as soon as the inventory drops
below the calculated amount
„ Sales order quantity will replenish inventory back to the
amount that covers forecasts for a specified number of days
„ The strategy has the benefit of being able to account for
seasonal spikes in the demand
© SAP 2007-2008 / 101
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Collaboration with SNC
(Formerly ICH)

Plans/Orders

Inventory
Alerts

_________________________________
Customer

My Company
Inventory

Demand
Release Update

_________________________________

Customer
Collaboration

Supplier
Collaboration
Supplier

_________________________________

SAP Supply
Network
Collaboration
(SNC) formerly ICH

POs
Change POs
Confirmations

In-Transits

_________________________________

PO Number

_________________________________

Sales

_________________________________

Forecasts
Forecast Revision
Promotions

ASNs
GR Update

_________________________________

PO Ackn.

_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 102

Special Planning Topics
Safety Stock Planning in SNP
Vendor Managed Inventory (VMI)
Subcontracting with SNP
Product Interchangeability
Aggregate Planning with SNP

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 103

Subcontracting — Business Value
„

Lets companies create a feasible procurement plan
for subcontract manufacturers, taking into account
all materials and capacity constraints
„
„

Planning of subcontractor production lines
Planning which bill of material will be used for each
subcontract build

Lets companies consider preferred subcontractor
production lines by priority or cost
„ Lets planners perform manual adjustments and
create subcontract purchase requisitions manually
to incorporate any new information into the
planning results
„ Features seamless integration with SAP ERP 6.0
as of Enhancement Package 3
© SAP 2007-2008 / 104
„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Subcontracting with SNP

_________________________________

Business scenario
„

Your company provides components to the supplier

„

Supplier assembles the components and returns the
finished product

SAP solution with SNP
„

Supplier is set up as a location in SAP APO

„

In-house planned order is created at the supplier location to
plan assembly of the components

„

Subcontracting order is created for the stock transfer from:
„
„

_________________________________

Your plant to supplier for components
Supplier to your plant for assembled end product

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 105

Subcontracting with SNP (cont.)

_________________________________

Key considerations:
„

Functionality addressed by SNP Heuristics and Optimizer
„

„
„

„

Can be CIF’d from SAP ERP

Transportation lanes needed between supplier location and
your plant location
„
„

„

Followed by manual changes in Interactive Planning

Separate Planning Book/Data View for subcontracting in
Interactive Planning
SNP PPM or PDS is needed for relationship of components
to the end product
„

_________________________________

Lanes are created via CIF
Special subcontracting indicator

Relationship is maintained automatically between:

Planned order at supplier location and stock transfer requisitions
to/from supplier location in SAP APO, and
„
Purchase
requisition (subcontracting order) in SAP ERP
© SAP 2007-2008
/ 106
„

SNP Subcontracting Process

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________

Components

_________________________________
_________________________________

Finished Good
Plant
Subcontractor

In a subcontracting scenario, the plant provides the subcontracting
components to the supplier. The supplier assembles the components
and returns the finished product.
To support this process in SAP APO, in-house-production orders for the
source location (supplier’s site) and related subcontracting orders for
the stock transfer from supplier to plant, are being created.

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Subcontract information record allows several production versions to be
defined per subcontract vendor/material relationship, ensuring efficient
utilization of existing capacities.
© SAP 2007-2008 / 107

_________________________________

SNP Subcontracting — Process
Detail
SAP
APO

_________________________________

SAP
ERP

SNP-Run

_________________________________
_________________________________
_________________________________

Demand

_________________________________
SNP Purchase
Requisition 1

Purchase
Requisition 1

SNP Purchase
Requisition 2

Purchase
Requisition 2
SNP-Planned
Order (PPM_1)
SNP-Planned
Order (PPM_2)

Plant

Subcontractor

Transportation lane: subcontracting

PPM_1
PPM_2
PPM_3

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 108

SNP Subcontracting — Process
Detail (cont.)
1.

2.

The SNP run (Heuristic, Capable-to-Match, or Optimization) determines
the subcontractor as the source of supply and generates a
subcontracting purchase requisition to transfer the finished product from
the source location (subcontractor) to the destination location (plant)
The SNP run determines the source(s) of supply (PDS/PPMs) at the
subcontractor and creates the subcontracting in-house-production
order(s) in the source location (subcontractor).
„

3.

The subcontracting purchase requisition can also be created manually in
SNP with the ability to assign/change the subcontractor and the source of
supply

A purchase requisition, which takes the subcontracting components
(materials provided to the subcontractor) from subcontracting in-houseproduction order(s), is generated in the SAP ERP system

Prerequisite to consider multiple production
versions in an SNP Subcontracting Process:
SAP ERP 6.0 Enhancement Package 3

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 109

Special Planning Topics
Safety Stock Planning in SNP
Vendor Managed Inventory (VMI)
Subcontracting with SNP
Product Interchangeability
Aggregate Planning with SNP

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 110

Product Interchangeability

_________________________________
_________________________________

Business scenario
„
„

Consider full interchangeability and discontinuation of product in the
supply chain
Consider constraint of limited validity and availability of materials and
components in the supply chain
Enables full interchangeability and discontinuation at any product
location level
„
„

„

„

_________________________________

Transfer demands for a product that is to be discontinued onto a successor
product
Use existing stock of a current product to fulfill demand for the successor
product

Can be done at any product level
„

„

_________________________________
_________________________________
_________________________________

End product or components of BOM

Works with SNP Heuristics and the SNP Optimizer
Integrated with DP
„

_________________________________
_________________________________

SAP solution with SNP
„

_________________________________

_________________________________

Creation of like or phase-in/-out profiles
Product split and realignment

„
© SAP 2007-2008 / 111

Product Interchangeability (cont.)

_________________________________
_________________________________

Benefits:
„

Systematic and automated changeover from one product to another
„

Optimizing product availability

„

Minimizing material stocks and scrap

„

Securing consistent data models

„

Enabling continuous process flows

_________________________________
_________________________________
_________________________________

Types of product interchangeability:
„
„

A product is replaced by another one

_________________________________

Supersession
„

„

_________________________________

Discontinuation
„

_________________________________

A chain of products that can replace each other

Form Fit Function (FFF)
„

_________________________________

Grouping of interchangeable parts, which are identical in respect to
all of their technically-relevant properties

„
Related to
© SAP 2007-2008 / 112

manufacturer part number functionality

Supersession/Discontinuation

_________________________________
_________________________________

Discontinuation
„
„

_________________________________

Product is replaced by another
Simple case of supersession

A

_________________________________

B

_________________________________

Supersession
„
„

„

_________________________________

Chain of products that can replace each other
Constant process of replacement

_________________________________

A

B

C

_________________________________

A

B

A

_________________________________

A

B

C

D

Forward and backward relationships

Forward interchangeability
Full/backward interchangeability
© SAP 2007-2008 / 113

A

B

C

D

_________________________________
_________________________________

Supersession/Discontinuation Inputs

_________________________________

Scope of supersession
„
„
„

_________________________________

Location(s)
Products
Successor product

_________________________________

Direction of interchangeability
A
„ Forward, or
„ Fully interchangeable
A
Substitution valid from
„

_________________________________

B
B

_________________________________
_________________________________

<date>

_________________________________

Use up of stock
„
„
„

_________________________________

No
Yes
Restricted until <date>
„

_________________________________

_________________________________

Use up date – date until the currently valid product can be used

© SAP 2007-2008 / 114

Maintaining Interchangeability
Group

_________________________________
_________________________________

Location(s)

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Product to be
substituted

Successor
Product

Direct of Interchangeability
- Forward
- Full

Indicates the use up of stock
- Yes
- No
- Restricted by Use Up Date

_________________________________
_________________________________

© SAP 2007-2008 / 115

Special Planning Topics
Safety Stock Planning in SNP
Vendor Managed Inventory (VMI)
Subcontracting with SNP
Product Interchangeability
Aggregate Planning with SNP

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 116

Aggregated Planning with SNP
Business scenario
„

Planning at an aggregate level for products and locations

SAP solution with SNP
„
„

Ability to aggregate products and locations as well as resources and
PPMs/PDS
Works with SNP Heuristics and the SNP Optimizer
„

„

CTM is supported with SAP SCM 5.0

Separate planning area and Planning Book/Data View
„
„

Area 9ASNP05 (same as advanced safety stock planning)
Book 9ASNPAGGR/view SNPAGGR(1) and SNPAGGR(2)

Benefits of planning at aggregated level:
„
„

Performance improvements by calculation on aggregate levels
Larger supply chain models can be planned
„
„

Performance improvements
Simplified planning process by making planning decisions at an aggregated
level

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 117

Aggregated Planning with SNP
(cont.)
Prerequisites for setting up aggregated planning
„

Create hierarchy structures and assign them to the SNP
AGG planning area
„

„

Define the aggregated planning objects
„

„

SAP provides some standard hierarchy structures for locations,
products, resources, PPMs/PDS
Location aggregates, product aggregates, PPM/PDS aggregates,
resource aggregates

Define the relations between aggregated objects and
detailed objects
„

Location-product hierarchies, PPM/PDS hierarchies, resource
hierarchies

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 118

Aggregated Planning Process Steps
Process steps for standard scenario (product location)
1.

Aggregated Safety Stock Planning (optional step)
„
„

2.

Single-Level Supply and Demand Mapping (optional step)
„

3.

Standard and extended safety stock methods are available
See also SAP Note 858794
Prevents the system from assigning receipts to the wrong demands
during aggregated planning, due to detailed information no longer
being available at aggregated level

Aggregate demand, receipts, and stock to product group
level (automatically)
„

Delete all planned replenishment elements on detailed item level
that are part of the aggregate before performing an aggregated
planning run

Optional but recommended way for live environment
– Defined in configuration (Basic Settings Æ Maintain Global
SNP Settings)
© SAP 2007-2008 / 119

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Aggregated Planning Process Steps
(cont.)
Process steps for standard scenario (product location)
(cont.)
4.

SNP planning run at Aggregated Level (Product Group
level)
„
„

5.

SNP Heuristics and Optimizer and CTM with restrictions
Results – aggregated planned production, planned external
procurement, or stock transfers

Disaggregate planning data to detailed item level
„

Aggregated values copied to:

„

Aggregated Distribution Receipt or Aggregated Distribution Demand
(Planned) key figures, and
Aggregated Production (Planned) or Aggregated Dependent Demand
key figures

Detail view of the aggregated key figures you display lists orders that
the system created for the sub products

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 120

Aggregated Planning Process Steps
(cont.)
Process steps for standard scenario (product location)
(cont.)
6.

Check and adjust plan at product group level or detailed
level
„

Example – execute capacity leveling at product group level and not
item level

„

Aggregate and disaggregate data interactively before and after
changes were made
Can be used for Aggregation only without disaggregation

„

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 121

Aggregated Planning with SNP —
Planning Book
Separate
Key
Figures

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Planning
Book

_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 122

What We'll
We’ll Cover ...

_________________________________
_________________________________
_________________________________

Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 123
Integration of SNP with DP, PP/DS,
and SAP ERP
Integration of SNP with DP
Integration of SNP with PP/DS
Integration of SNP/SAP APO with SAP ERP

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 124

Integration of SNP with DP
Demand Planning

_________________________________
Supply Network Planning

Release
Forecasts
to SNP

Planned
Independent
Requirements

_________________________________
_________________________________
_________________________________
_________________________________

SNP Planning
Run

Macros/Alerts

_________________________________

Release
Feasible Sales Qty

Production Plan
to DP

_________________________________
_________________________________
_________________________________

Integration can go both ways
From DP to SNP
„
From/ 125
SNP to DP
© SAP 2007-2008
„

_________________________________

Release Demand Plan from DP to SNP

_________________________________
_________________________________

Demand Plan is transferred as Planned Independent
Requirements (PIRs) to SNP
„
„
„

_________________________________

Demand plan/forecast is stored in buckets/times series data in DP
PIRs are stored as orders in SNP
Flexibility to have different/many PIRs per location product
„

_________________________________
_________________________________

Order category FA or FC

_________________________________

Demand Plan is released to a product location
„

„

_________________________________

Ability to break up forecast during release via:
„

Location splits

„

Product splits

_________________________________

Ensure product location master data exits in SNP for all Characteristics
Value Combinations (CVCs) in DP
Don't
„

DP has CVCs for product and location independent of SNP

„

SNP needs to have corresponding product master maintained

Forget

_________________________________
_________________________________

© SAP 2007-2008 / 126

Release Demand Plan from DP to SNP
(cont.)
Offers flexibility to account for different time buckets in
DP and SNP

_________________________________
_________________________________
_________________________________

„

Monthly, weekly, or daily split

_________________________________

„

Can vary over the planning horizon

_________________________________

„
„
„

„

Daily for short-term horizon
Weekly for mid-term horizon
Monthly for long-term horizon

_________________________________
_________________________________

User exit available for custom logic

Forecast created in DP can be transferred online or in
the background to SNP
„

Typically done in background in a live environment

_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 127

DP

Integration of DP with SNP

_________________________________

Forecast in Demand Planning – Stored in Time Buckets
Forecast

_________________________________
_________________________________

Release Forecast
to SNP

_________________________________

Planned Ind Req

_________________________________

Distribution
Centers

_________________________________

SNP

_________________________________
_________________________________

Manufacturing
Plants

_________________________________
_________________________________
Suppliers
Purchase Order
© SAP 2007-2008
/ 128
STO

Planned Order

DC

Planned Independent Req

Release of Forecast from DP to SNP

_________________________________
_________________________________

Provides the
source of forecast
data in Demand
Planning
Offers ability to
transfer forecast
data to any planning
version in SNP
Specifies mapping
of forecasts to
order category

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Selection of
products and
locations for which
forecast will be
transferred to SNP

_________________________________
_________________________________

© SAP 2007-2008 / 129

Integration of SNP with DP, PP/DS,
and SAP ERP
Integration of SNP with DP
Integration of SNP with PP/DS
Integration of SNP/SAP APO with SAP ERP

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 130

Conversion of SNP Orders to PP/DS
Orders
PP/DS is a detailed planning and scheduling tool ideal for shortterm planning
„
„

Detailed planning of manufacturing steps
Scheduling/sequencing of individual orders

SNP is a bucketed planning tool ideal for mid- to long-term
planning
„

Supply planning across the network to:
„
„

Determine best sourcing option
Create a constraint-based production plan in buckets

SAP offers seamless integration for converting orders from SNP
to PP/DS through:
„

SNP production horizon and PP/DS horizon
„

„

SNP production horizon separates PP/DS planning period from SNP
planning period, or they could overlap

Conversion of SNP planned orders to PP/DS planned orders
„

SAP standard Heuristics are available to convert SNP orders to PP/DS
orders inside the SNP horizon

© SAP 2007-2008 / 131

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Planning Process with Unique
Planning Horizon
Time Fence

_________________________________
_________________________________

PP/DS Horizon
equals
SNP Production Horizon

_________________________________

Conversion

_________________________________
_________________________________
Time

Today

_________________________________
_________________________________

PP/DS schedules existing orders

SNP creates orders

„

SNP Production Horizon starts after the PP/DS horizon

_________________________________

„

SNP and PP/DS planning areas are unique, SNP orders for
all products can be converted to PP/DS orders

_________________________________

„

SNP is used for mid- to long-term planning while PP/DS is
used for short-term planning

_________________________________

© SAP 2007-2008 / 132

Planning Process with Common
Planning Horizon
Product A Time Fence

SNP Production Horizon

_________________________________
_________________________________

PP/DS Horizon

_________________________________

Conversion

_________________________________
Time
Today
SNP creates orders

_________________________________
_________________________________
_________________________________

PP/DS schedules existing orders

„

SNP Production Horizon starts within the PP/DS horizon

_________________________________

„

SNP and PP/DS planning areas overlap, seamless
integration of SNP planning into PP/DS planning

_________________________________

„

Useful when SNP has control over certain products and
their critical components

_________________________________

© SAP 2007-2008 / 133

Integration of SNP with DP, PP/DS,
and SAP ERP
Integration of SNP with DP
Integration of SNP with PP/DS
Integration of SNP/SAP APO with SAP ERP

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 134

Core Interface (CIF) to Integrate
SAP ERP and SAP APO
„

The Core Interface (CIF) is responsible for data exchange
between SAP APO and SAP ERP

„

The CIF is a real-time interface that can link an SAP APO
system with multiple SAP ERP systems

„

The CIF can perform initial transfer as well as subsequent
data changes

„

The CIF can transfer both master data (1 way) and
transaction data (both ways)

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

© SAP 2007-2008 / 135

Core Interface for Transaction Data
Transfer
SAP ERP
SAP ERP Transaction Data

Initial Data
Transfer

SAP APO

_________________________________

SAP APO Transaction
Data

_________________________________

(Orders with Category)

Purchase Orders

Purchase Orders (BF)

Purchase Requisitions

Purchase Requisitions (AG)

Sales Orders

Sales Orders (BM)

Planned Orders

Planned Orders (AI)

Planned Independent Reqs

Forecast (FA)

Reservations

Product Reservations (AM)

Stocks

_________________________________

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Stocks (CC)

_________________________________
© SAP 2007-2008 / 136

Real-Time
Incremental
Data Transfer

Customizing in SNP for Transfer of
Data to SAP ERP
Options available for
transfer of SNP orders
Options for transferring
orders generated from
deployment process

Options for
transferring orders
generated from the
TLB run

„

The above transaction indicates various options available for
transfer of data from SNP to SAP ERP (tcode /SAPAPO/SDP110)

„

Periodic transfer is preferred when large volumes of orders are
generated, typically after a planning or TLB run
„

But might be driven by process needs, too (user to review orders
to SAP ERP, especially for TLB orders)

before
© SAP 2007-2008
/ 137sending

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Monitoring/Error Handling of CIF

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Standard features/tools provided in SAP ERP to
monitor the interfaces between SAP APO and
SAP ERP
„

Similar to any other Remote Function Call (RFC) and
Application Link Enabling (ALE) monitoring transactions

Additional tools provided in SAP APO
„

„

„

Provided to manage and process delays in the interface
Offers link to application log to perform error analysis

Delta report to compare and reconcile data between
SAP APO and SAP ERP
„

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Supply Chain Management (SCM) Queue Manager
transaction
„

_________________________________

Using the reconcile function, transaction data can be brought back in
sync between the two systems after any disruptions in the interface

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© SAP 2007-2008 / 138

Tools in SAP APO to Monitor CIF
Interface
Queues by order
types that are held up
in the interface

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Indicates data held
up due to an error

Application Log

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„

SCM Queue Manager is a tool provided in SAP APO to
monitor and resolve queues in the core interface between
SAP APO and SAP ERP

„

Provides access to the application log for detailed
error analysis

„

Transaction /n/SAPAPO/cq in SAP APO

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© SAP 2007-2008 / 139

CIF Delta Report for Transaction
Data
„

SAP-provided transaction to
compare and reconcile
transaction data between
SAP APO and SAP ERP

„

Ability to select specific
transaction data for selection
of products and locations

„

Ability to execute in real time
or in the background

„

Can be accessed in SAP APO
using tcode /n/SAPAPO/ccr

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Option to resend stocks
from SAP ERP to SAP
APO
Result of running the
Delta report for stocks
© SAP 2007-2008 / 140

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CIF User Exits/BAdIs
SAP provides a number of user exits to customize
data transfer between SAP ERP and SAP APO

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_________________________________

„

Available for master data and transaction data

_________________________________

„

Suitable user exit can be in SAP ERP or SAP APO

_________________________________

Available CIF user exits/BAdIs in SAP ERP
„

Approximately 31 user exits and 8 BAdIs

„

Examples:
„

CIFMAT01

Enhancement for Transferring Customer-Specific
Matl Fields

„

CIFLOC01

„

CIFCID3

Enhancement for Transferring Customer-Specific
Loc. Fields
User Exits for Deltareport3

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© SAP 2007-2008 / 141

CIF User Exits/BAdIs (cont.)
Available CIF user exits/BAdIs in SAP APO
„

Approximately 56 user exits and 7 BAdIs

„

Examples:
„
„
„

SAP APOCF008
SAP APOCF010
SAP APOCF011

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Inbound Processing: Resources
Inbound Processing: Sales Order
Inbound Processing: Stock

Should plan on utilizing some of these CIF user exits
or BAdIs
„

_________________________________

Using half a dozen to a dozen of them is not uncommon

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© SAP 2007-2008 / 142

What We'll
We’ll Cover ...

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Overview of SNP and how it fits in SAP SCM
Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
© SAP 2007-2008 / 143

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Resources
Presentations
„

“Production Master Data Overview and Strategy by BSG
Manufacturing Industries,” SAP AG

_________________________________
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_________________________________

„

Dr. Dirk Meier-Barthold, “Supply Chain Safety Stock
Planning,” SAP AG

„

Gunter Fertig, “Multi-Level Supply and Demand Matching
(CTM),” SAP AG

„

SAPPHIRE 2006 Supplier Collaboration with SAP SNC by
BearingPoint

_________________________________

„

CTM Workshop 11/2007 – Balaji Rao Gaddam

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© SAP 2007-2008 / 144

Resources (cont.)
On your conference CD:
„

73 additional slides discussing key implementation
considerations and challenges

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_________________________________

„

Supply Chain Engineer (SCE) Primer
How to Configure Capacity Variants/Intervals in SNP

„

Solution Brief of the SNP Extended Horizon Capability

„

Details on Calendar use in SNP and PP/DS

_________________________________

„

_________________________________

„

List of Parameter IDs (PIDs) to use in APO for more efficient
system performance
Copy of SCM Maintenance Jobs to Schedule and Execute

„

Help on Notes Management

„

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© SAP 2007-2008 / 145

7 Key Points to Take Home
SNP is a mid- to long-term planning tool and is used to
create feasible supply plans (Rough Cut Planning)
Know your business requirements and why you’re
implementing SAP APO SNP to:
„
„

Select the most appropriate planning methods and
special planning features
Realize the kind of benefits desired at the beginning of
the project

SNP has 3 planning solvers to select from depending
on the business requirements:
„
„
„

Heuristics/Capacity Leveling – 2 steps
Capable to Match (CTM) finite plan
Optimizer

© SAP 2007-2008 / 146

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7 Key Points to Take Home (cont.)
The SNP Optimizer and CTM in SAP APO 5.0 now
have an explanation tool that lets the user see
planning messages to better explain planning
situations
„

This was not available previously

Tightly integrate the Business into the project by:
„

Having business users as full-time team members on
the project

„

Educating the business community about SAP APO SNP
functionality and new processes throughout all project
phases, not just at the end right before go-live

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© SAP 2007-2008 / 147

7 Key Points to Take Home (cont.)
Don’t underestimate the effort required to set up and
monitor the CIF for interfacing SAP APO with SAP
ERP
„

There will be ABAP development for the CIF user exits

Master data objects are very important to executing a
good plan in SNP. Most master data is transferred via
CIF from SAP ERP.

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_________________________________

„

Mixed resources can be used in SNP and PP/DS

_________________________________

„

New production planning object, SNP PDS, can be
transferred directly from SAP ERP to SAP APO without a
separate program

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© SAP 2007-2008 / 148

Your Turn!

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How to contact me:
Claudio Gonzalez
claudio.gonzalez@sap.com
© SAP 2007-2008 / 149

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