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Supply Chain Management

SAP Enhancement Package 1 for SAP


APO 7.0 - Overview

Solution Management SCM


Customer Supply Chain Challenges Drive
Strategy
Globalization & Outsourcing
Have resulted in stretched supply chains and increased risk. Timely
analysis, response, and resolution of supply chain issues is
impossible due to lack of control.

Fear of Poor
Lack of Visibility Customer Service
beyond the four walls Inability to sense and
Anticipating the next supply respond to real time
chain disruption is not possible demand signals.
due to lack of visibility.

Rising Costs &


Regulations
Have increased cost and
challenges of compliance and
transportation.

Driving the SCM Solution Direction


SAP Enhancement Package 1 for SAP APO 7.0
Overview
Clear-to-Build Globalization & Outsourcing
* Enable an integrated APO SNC Have resulted in stretched supply chains and increased risk. Timely
scenario to consider supplier analysis, response, and resolution of supply chain issues is
confirmation for planning impossible due to lack of control.

Direct Shipment
Fear of Poor
* Enable supply chain planning with
direct shipping to end customers Customer Service
from vendors and factories Inability to sense and
Enhancements in APO respond to real time
DP, SNP demand signals.
• Improved Chart Engine
Lack of Visibility • Forecast Consumption
beyond the four walls
• Transport Loader Builder gATP enhancements
Anticipating the next supply * Sub-Items
chain disruption is not possible * Inconsistencies with Descriptive
due to lack of visibility. Characteristics
* Correction report for Sales.
* MATP & Remaining Qtys..
* BOPIN enhancements
* Performance Enhancements
APO for AFS
Industries
* Aggregated Planning
Supply Chain Management

SAP Enhancement Package 1 for SAP


APO 7.0 - Overview

Third-Party Order Planning

Aggregated Planning

Continuous Improvements in DP, SNP and CTM

gATP Enhancements

Supplier Planning and Collaboration


SAP Enhancement Package 1 for SAP APO 7.0
Direct Shipment Planning / Third Party Order Planning

 Objective of the new developments


 The off-shore vendor and off-shore own manufacturing model has grown significantly
over the last years led by the fashion, hi-tech, and consumer products industries.
Companies increasingly save on transportation and own distribution center handling
costs by direct shipping to end customers from vendors and factories.
 Support of mid-term supply chain planning for third party orders considering forecasting
capabilities and finite capacities at the supplier.

BRAND OWNER
- Low costs of co-ordination
- Low costs of DC space

Sales Order Purchase Order

CUSTOMER VENDOR / FACTORY


- Better Service - Value Added Services*
- More efficient transportation and Customization
- High visibility
- High Collaboration
Deliver direct to Customer DC or Customer Store

Prerequisite: Business Function SCM_APO_DRS_PLAN needs to be switched on

© SAP 2008 / Page 5


SAP Enhancement Package 1 for SAP APO 7.0
Direct Shipment Planning / Third Party Order Planning
Third Party Order Processing Supply Chain Planning
using SAP ERP using SAP APO CTM

Sales Order Processing


with Direct Ship Check
Normal SO DS Order

Creation of TP-Purchase Supply Chain Planning


Normal Sales Process*  Forecast consumption
Requisitions (blocked)  CTM planning run

Comparison Report
 TP-Purchase Reqs
vs. CTM planned orders

TP-Purchase Release of Manual


Requisitions (unblocked) TP-PReq to ERP Adjustments

Notes:
(*) The normal sales orders are TP = Third Party
treated in the same way as in Creation of  Only Single Sourcing for DS Orders supported
previous ERP / SCM releases:  Vendor location has to be modelled in APO
They can be transferred to APO Purchase Order  Direct Ship Check can be based on Product Group,
and be delivered from a DC Customer, Order Size,…

© SAP 2008 / Page 6


Supply Chain Management

SAP Enhancement Package 1 for SAP


APO 7.0 - Overview

Third-Party Order Planning

Aggregated Planning

Continuous Improvements in DP, SNP and CTM

gATP Enhancements

Supplier Planning and Collaboration


SAP Enhancement Package 1 for SAP APO 7.0
Aggregated Planning (AFS)
 Objective of the new developments
 With SAP APO 5.0, the concept of aggregated planning has been introduced to SAP
APO. Currently, the aggregated planning does not consider the AFS distribution profile
and works only correctly if infinite capacity is assumed.
 With SCM 7.0 EhP1, accurate aggregated planning in SAP APO includes the
consideration of the AFS distribution profile, automatic aggregation in CTM and a new dis-
aggregation report
 Functional Enhancements
 Transfer of AFS distribution profile to SAP APO via CIF
 Release of Forecasts from DP to SNP / Forecast Consumption
 Consideration of AFS distribution profile
 Forecast consumption on aggregated level
 CTM Enhancements
 Automatic aggregation
 Consistent disaggregation
 SNP Interactive Planning
 Order changes on aggregated level can be disaggregated according to AFS
distribution profile, quotations or demands in the bucket.
 Pegging information is shown at detailed order level and will be retained.

Prerequisite: Business Function SCM_APO_HIER_AGG_PLAN needs to be switched on


© SAP 2008 / Page 8
SAP Enhancement Package 1 for SAP APO 7.0
Transfer of AFS Distribution Profile to SAP APO

 Transfer of AFS distribution profile to SAP APO via CIF


 AFS size split is transferred to SAP APO hierarchy master data as time-
dependent quota arrangements

© SAP 2008 / Page 9


SAP Enhancement Package 1 for SAP APO 7.0
CTM

 CTM Enhancements
 Automatic Aggregation in CTM run („enhanced aggregated planning“)
 New Disaggregation report to disaggregate the CTM planning results from header
product level to detailed SKU level
 The linkage information (pegging) between detailed and aggregated levels is temporarily
saved and a consistent disaggregation is done.

© SAP 2008 / Page 10


SAP Enhancement Package 1 for SAP APO 7.0
SNP Interactive Planning

 Order changes on aggregated level can be disaggregated according to time-dependent


quotations, AFS distribution profile or demands

© SAP 2008 / Page 11


SAP Enhancement Package 1 for SAP APO 7.0
SNP Interactive Planning

 Pegging information is visible shown at detailed order level and will be retained

© SAP 2008 / Page 12


Supply Chain Management

SAP Enhancement Package 1 for SAP


APO 7.0 - Overview

Third-Party Order Planning

Aggregated Planning

Continuous Improvements in DP, SNP and CTM

gATP Enhancements

Supplier Planning and Collaboration


SAP Enhancement Package 1 for SAP APO 7.0
DP /SNP Chart Engine

 Objective of the new developments


 Improve usability of the chart engine
 Ease of chart engine customizing
 Functional Enhancements
 Interaction between chart and grid: marking of cells in the grid highlight the according
points in the chart, and vice versa
 Display of the chart:
– Dynamically setting of start and end period of the chart
– Definition of shown periods in the chart independently from the grid
– Scalability of the Y-axis ( value axis): set of minimum and maximum value
– Show or hide chart legend
– The chart can be shown in full screen mode
– Inverting of key figure values
 Printing of the chart
 Central maintenance and transport from chart customizing: report
/SAPAPO/MSDP_CHART_CUSTOM to copy and delete chart engine customizing
Prerequisite: Business Function SCM_APO_DP_SNP_CTM needs to be switched on

© SAP 2008 / Page 14


SAP Enhancement Package 1 for SAP APO 7.0
DP Continuous Improvements
 Bucket-oriented forecast consumption
The principle of the bucket-oriented consumption modes is that forecast is only consumed
within the specified bucket and forecasts of other periods are unconcerned.

 Application Log for Demand Planning (transaction: /sapapo/sdpapplog) to access the standard
application logs for:
 DP in the background
 Promotion management
 Proportional factor calculation.

Prerequisite: Business Function SCM_APO_DP_SNP_CTM needs to be switched on


© SAP 2008 / Page 15
SAP Enhancement Package 1 for SAP APO 7.0
CTM Continuous Improvements

 Objective of the new developments


 Avoidance of excess supply caused by lot sizes and lot splits
 Better understanding of CTM results

 Functional enhancements
 Merge Orders to avoid excess supply
In case Lot Sizing is used in CTM planning excess supply might get generated in
upstream operations due to lot splits in downstream operations which is caused e.g. by
capacity constraints.

 Explanation Tool
As of today the CTM explanation tool gives insufficient and partly misleading information
to the planner. With SCM 7.0 EhP1 new explanations are introduced to get a better
understanding which issues have caused the lateness, non- or partial fulfillment of orders.

Prerequisite: Business Function SCM_APO_DP_SNP_CTM needs to be switched on

© SAP 2008 / Page 16


SAP Enhancement Package 1 for SAP APO 7.0
TLB Continuous Improvements

 Objective of the new developments


 Better usability of TLB
 Functional enhancements
 Selection Profile for TLB and TLB run for selected products only
Using this feature of product selection only the selected products will be locked, and more
than one planner can work on the same transportation lane.

Prerequisite: Business Function SCM_APO_DP_SNP_CTM needs to be switched on

© SAP 2008 / Page 17


Supply Chain Management

SAP Enhancement Package 1 for SAP


APO 7.0 - Overview

Third-Party Order Planning

Aggregated Planning

Continuous Improvements in DP, SNP and CTM

gATP Enhancements

Supplier Planning and Collaboration


SAP Enhancement Package 1 for SAP APO 7.0
gATP

Objective of the new developments


 Continuous Improvements to gATP basic functions.
Functional Enhancements
 Sub-Items
– Avoid sub-item creation when the requested product was not changed and the confirmation
is in one location.
 Inconsistencies with Descriptive Characteristics
– Correction report for Sales Orders and Deliveries, SDRQCR21, now will check and correct
inconsistencies with descriptive characteristics.
 Multilevel available-to-promise (MATP) & Remaining Qtys.
– When creating the remaining requirement on component level of a MATP the checking
horizon is used for correlating the results to header level .
 Backorder Processing (BOPIN) enhancements
– General enhancements done in the interactive BOP transaction to allow for better navigation
such as search functionality by availability date, Paging buttons enabled
 Performance Enhancements
– Reading/Writing to the Planning Area in DP enhanced. Memory consumption down which
could lead to a 20-25% improvement.
 Multi-item single delivery location (MISL) enhancements
– Validities on Products, Exclusive Rules for Product determination

Prerequisite: Business Function SCM_APO_ATP_1 needs to be switched on


© SAP 2008 / Page 19
Supply Chain Management

SAP Enhancement Package 1 for SAP


APO 7.0 - Overview

Third-Party Order Planning

Aggregated Planning

Continuous Improvements in DP, SNP and CTM

gATP Enhancements

Supplier Planning and Collaboration


SAP Enhancement Package 1 for SAP APO 7.0
Supplier Planning Collaboration

 Integration to support multi-tier and multi product planning and


collaboration business scenario
 Could be used for single tier (product) scenario as well
 Developed for Hi Tech, but could be used across industries
 APO SNP planning with SNC Supplier collaboration to consider supplier
confirmation will result in a more realistic plan

Prerequisite: Business Function SCM_APO_DISTR_REC needs to be switched on

© SAP 2008 / Page 21


SAP Enhancement Package 1 for SAP APO 7.0
Supplier Planning Collaboration - Process Overview

Legend:
OEM: Original Equipment Manufacturer
CM: Contract Manufacturer
CS: Component Supplier

Notes:
ERP, APO, and SNC deployed at OEM.
CM and CS use supplier view of SNC.
Supported SNC Business Processes:
 SNC Supplier Managed Inventory
 Dynamic Replenishment (DR) leverages the
Order Forecast Monitor (OFM)

© SAP 2008 / Page 22


SAP SCM

www.sap.com/scm

Thank you for your


interest!

© SAP 2008 / Page 23