SAP Supply Chain Planning


Supply Chain Management: SAP Supply Chain Planning

The art of orchestrating supply chain planning can be intricate. Unforeseen changes in supply, demand, and market changes are a test in agility. The ability to synchronize planning for sustainable growth is the key to building a resilient supply chain.

Supply Chain Planning Defined

Supply chain planning (SCP) is a forward-looking process. It is coordinating assets to optimize the delivery of goods, services, and information from suppliers to consumers. Organizations can leverage solutions to help navigate the complexities of planning and orchestrating supply chain operations flawlessly. SAP Integrated Business Planning (IBP) is powered by SAP S/4HANA memory and is a cloud-based planning software for supply chain management. IBP is a process for aligning a company’s business goals across operational functional areas.

Supply Chain Management: SAP Supply Chain Planning

The art of orchestrating supply chain planning can be intricate. Unforeseen changes in supply, demand, and market changes are a test in agility. The ability to synchronize planning for sustainable growth is the key to building a resilient supply chain.

Supply Chain Planning Defined

Supply chain planning (SCP) is a forward-looking process. It is coordinating assets to optimize the delivery of goods, services, and information from suppliers to consumers. Organizations can leverage solutions to help navigate the complexities of planning and orchestrating supply chain operations flawlessly. SAP Integrated Business Planning (IBP) is powered by SAP S/4HANA memory and is a cloud-based planning software for supply chain management. IBP is a process for aligning a company’s business goals across operational functional areas.

Key integration elements are:

  • Supply and demand
  • Finance and Operations
  • Functions and business processes
  • Strategy outcomes
  • Non-financial measures
  • Cash flow, costs, and revenues.

A structured process that comes from an IBP approach enables companies to make better informed and fact-based decisions. It provides planning, what-if scenario capabilities, and real-time demand commitments, considering constraints. Increased visibility enables companies to incorporate insights from supply chain projections, financial projects, and strategic plans. There are unmatched benefits of IBP for SAP Supply Chain Planning, like optimization of logistics, improved cross-functional collaboration, planning agility, risk mitigation, and improved forecast accuracy.

SAP Supply Chain Planning yields several benefits:

  • Decreased costs
  • Increased profits
  • Reduction in delays
  • Improved efficiency
  • Increase in output
  • Better cooperation.

Vendor partners that can offer software solutions or operational intelligence include – SAP, Reveal or Gib.

Key Considerations for SAPinsiders are:

  • Video Q&A with Eric Jones from GIB on Connecting the Dots Between Supply Chain Planning and Execution. Learn how to tame many supply chain complexities with end-to-end -supply chain solutions by watching this video. The discussion gives a perspective on why supply chain planning tools are an imperative in today’s highly complex supply chains.
  • Demand Planning Alerts Increase the Accuracy of your Forecasts. David Ducray explains that demand planners are often faced with converting large amounts of data into an accurate forecast. Review different ways to spot trends and errors in data by using alerts to help you create a more accurate forecast. Allow planners the ability to manage by exception.
  • Meeting Demand with a Constrained Supply Using Product Allocation in SAP APO Global ATP. Alok Jaiswal reviews the process flow of how product allocation can be used in SAP Advanced Planning and Optimization (SAP APO). This utilizes global available-to-promise (ATP) to meet customer requirements by managing the supply of scarce products.

1296 results

  1. Supply Network Planning: Aggregated Planning Eliminates Aggravated Planners

    Published: 01/October/2004

    Reading time: 16 mins

    Creating planning processes is extremely complicated. Planners must accommodate an almost endless list of demands and they run the risk of being overwhelmed by minutia. SAP Advanced Planning and Optimization (APO) offers the technology to consolidate large volumes of data so that planners can have more control as they approach the task. Key Concept Hierarchies...…

  2. Cloud supply chain planning

    Cloud Can Address Supply Chain Planning Challenges

    Published: 15/July/2022

    Reading time: 2 mins

    Supply chain planning capabilities have evolved from being a portfolio of tools and technologies used to run and plan supply chain operations to a set of capabilities that can be leveraged to build business agility in resiliency in today’s complex business environment. Cloud provides additional capabilities to supply chain planning technologies to align better with…

  3. Use Shelf-Life Planning to Lower Stockouts For Inventory With Expiration Dates

    Published: 11/March/2011

    Reading time: 14 mins

    Most inventories used in the supply network planning run have expiration dates. You can use information relative to inventory expiration dates and future demand needs to reduce future stock-outs via additional replenishment orders. Although shelf-life propagation and associated alerts are fully described in SAP’s standard documentation, you can also incorporate shelf-life information into your standard...…

  4. Manage a Distribution Plan in a Supply Chain Model in SAP APO When Demand Exceeds Supply

    Published: 24/May/2017

    Reading time: 9 mins

    Learn the process flow and understand the various strategies you can use to deploy supply elements (receipts) in SAP Advanced Planning and Optimization (SAP APO) when the total demand is greater than the available supply. Key Concept Deployment determines which distribution requirements can be met by the supply (receipt elements). Deployment strategies to be used...…

  5. 7 Customizing Tips to Make a Good Interactive Planning Table Great!

    Published: 15/December/2004

    Reading time: 14 mins

    The standard interactive planning table that ships with the Supply Network Planning (SNP) module in APO works just fine out of the box, but there’s plenty of room for improvement. Fortunately, you can customize it in a number of ways that not only make it look terrific but also add value and functionality for planners....…

  6. Supply Chain Planning Trends and SAP Integrated Business Planning

    Published: 17/March/2023

    Reading time: 3 mins

    Effective planning is critical for the success of supply chain management. Businesses can improve customer satisfaction, reduce costs, and gain a competitive advantage in the marketplace by shaping demand, optimizing inventory levels, supply, production schedules, logistics operations, and risk management strategies. Planning increases supply chain resiliency as allows organizations to manage disruptions. Disruptions in the…

  7. Block chain Technology

    Blockchain for Supply Chain Transparency

    Published: 27/March/2023

    Reading time: 3 mins

    In today’s business landscape, companies are increasingly adopting enterprise blockchain to enhance security and transparency. The potential of blockchain to offer faster, more efficient, and cost-effective solutions is more than any other technology. The technology can disrupt traditional supply chain models by changing supply chains operations by introducing new efficiencies and opportunities for businesses across a…

  8. Efficient Production Planning Using SKU Groups with the SNP Optimizer

    Published: 01/May/2014

    Reading time: 31 mins

    SCMFind out how to overcome the limitations of Supply Network Planning’s aggregate and block planning capabilities. Key Concept Aggregate planning is a feature in Supply Network Planning (SNP) whereby net requirements calculation from medium to long term can be executed at a product group level using aggregate objects such as SKU groups, location groups, resource...…

  9. Supply Chain Optimization

    Supply Chain Optimization With Planning in the Cloud

    Published: 03/June/2022

    Reading time: 4 mins

    The article discusses the critical role of cloud-based analytics in supply chain optimization across industries. Mastering SAP Premium Access Membership Required You must be a Mastering SAP Premium Access member to access this content.Join NowAlready a member? Log in here

  10. APO’s Capable-to-Match Functionality Eases Multi-Site Supply Planning

    Published: 15/November/2004

    Reading time: 8 mins

    The Supply Network Planning (SNP) module in SAP Advanced Planning and Optimization (APO) technology allows organizations to plan for sourcing, production, distribution, and purchasing. Use the SNP Capable-to-Match (CTM) planning tool to maintain inventory levels across the supply chain and to eliminate procurement shortfalls. Key Concept The Capable-to-Match (CTM) planning algorithm in SNP supports rule-...…