APO Supply Network Planning

SNP Overview

The Supply Chain: Original Supply to Final Consumption

INFORMATION FLOW

Transfer

Transfer

Transfer

Transfer

Supplier

Manufacturing

Distribution

Retail Outlet

Consumer

CASH FLOW

Supply Chain Optimization

Increase Customer Responsiveness at Least Cost

To be competitive, increase revenues and market share and be profitable

Companies need to . Have the right product at the right place at the right time

Improve replenishment cycle time

Improve Return on Inventory investment Increase utilization of capacity/resources

APO

Stands for Advanced Planning and Optimization

Its intent is to enhance global planning capabilities supported through advanced heuristics and optimization algorithms An Advanced Global Planning Tool Not an Execution System A Tool to control the entire Supply Chain A Package focussed on Constraints (Material, Capacities) A Tool capable to replace some current OLTP Functionality

APO Product Map

Monitor Strategic Tactical

Supply Chain Cockpit

Network Design Supply Network Planning

Demand Production Transportation Distribution Planning & Deployment Planning & Vehicle Scheduling

Planning

Operational
Scheduling

Purchasing WorkBench

Planning & Detailed Scheduling

Collab. Planning

BUY

MAKE

STORE

MOVE

SELL

Transaction Data Transmission

R/3 Initial Transfer Transaction DATA

APO

Transaction DATA

Incremental transfer

The transaction data is transferred from SAP R/3 to APO in the beginning. Subsequently, the Transport and Production orders are transferred from SNP to SAP R/3 after each run, and data such as inventory status is passed regularly from SAP R/3 to APO

APO Application Architecture

OLTP

APO

OLAP Historical Data External Data (e.g. POs Key Perform. Indicators

Demand Planning

Sales Orders Manufacturing Execution updates Inventory Movements

TP/VS Global ATP

Production Planning and detailed Scheduling

Supply Network Planning

Deployment

TLB

APO Platforms

Operating Systems

Windows NT
HP UX IBM AIX Sun Solaris Compaq True64 Unix, Siemens Reliant Unix

APO Platforms

Data Bases Oracle

SQL-Server

Client Concept

Similar to R/3

One APO client to n R/3 clients

Live cache applications on client
SNP PP/DS TP/VS ATP

APO

Cache DB

live

BW Basis for Demand Planning

Not on client Needs to be organized via dedicated infocubes

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What is Supply Network Planning ?

A planning approach to create Tactical Plans and Sourcing Decisions that takes the complete supply network into consideration

Supply Network Planning Deployment Transport Load Builder

Meet Forecast and Actual Demand by:

Optimal use of Manufacturing, Distribution and Transportation Resources Consider all constraints in the supply chain

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SNP Overview
SNP ensures the optimal Use of Manufacturing, Distribution, and Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain SNP plans Production, Procurement and Transportation throughout the entire Supply Network using Optimizing and Heuristic Approaches Configurable Profiles determine on how the System generates Supply and Demand within Short, Mid and Long-term Planning SNP offers three competitive Algorithms: CTM, SNP Optimizer and SNP Heuristics

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SNP Business Applications:

Inventory planning and deployment taking into account logistics and sales variability. High level capacity planning and macro global scheming to aid with capital equipment decision making based on sales runs. Visibility for planning with confidence. System provides cost- trend analysis for control on manufacturing expansion, Out-sourcing, 3rd party supply, etc. Support system for modeling what if scenarios that would impact the bottom line. Stores, DCs and VMI stock leveling with ability to build transport loads with predetermined constraints

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Beyond Traditional DRP

Production Process Model

Manufacturer Plant Manufacurer DC Customer DC Supplier Plant

Supplier WH

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APO Planning Functionality Sequence

Planning Horizon
Demand Planning (DP) Supply Network Planning (SNP) Production Planning (PP)
Detailed Production Scheduling (DPS)

Deployment Transport Load Builder (TLB)

Transportation Planning and Vehicle Scheduling (TPVS)

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SNP Process
Demand Planning Forecast
Supply Network Pl.
Planned Orders Production Planning Detailed Scheduling Recommended TransportOrders

Deployment
Confirmed Transport Orders

Transport Load Builder

Transportation Planning & Vehicle Scheduling

Transport Orders

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Data Objects: Distribution Network

Customer Demands

Distribution Centers

Plants

Suppliers

Transport Order
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Planned Order

Purchase Order

SNP Planning Functionality

Supply Network Planning Strategies

Heuristics Optimization Capable to Match

SNP

PP/DS Deployment

Deployment
Faire share, push rules and deploy to order Optimization

Transport Load Builder

Leveling in transport loading

TLB

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SNP Strategies
SNP Heuristics: repair-based planning Quota arrangements Production capacity check Capacity leveling SNP Optimization: cost-based optimization Selection of best production site Optimization of production, transportation, and inv. costs Mixed Integer Linear Programming Metaheuristics Feasible solutions Calculation of quota arrangements Capable to Match: supply to demand match Matches supply to available demand via production and transportation capacity check
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Deployment

Fair share
Proportional Target fulfillment Deploy to order
Calgary Winnipeg Montreal

Montreal

Push deployment Pull-push deployment

Demand fence Supply fence

SAPCO

Customer

Philadelphia
Chicago

New Orleans

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Transport Load Builder

Plan for loading of transportation vehicles

Maximum range of coverage Minimum/maximum load weight Maximum volume ATP check

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Vendor Managed Inventory

MANUFACTURER APO

RETAILER

Plant

Inventory Inventory Warehouse (EDI 852) Distribution (integrated)

Center

Forecast (integrated)

Forecast (EDI 830)

SNP
R/3, Sales order Legacy
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VMI

Order (EDI 855)

SNP Process Flow

Planning Area Administration APO Master Data Setup Model/Version Creation Supply Chain Model Setup Release of Demand Plan to SNP Planning Method Determination & Profile Settings Transport Load Building Simulation Supply Network Planning Run

Deployment Run Management by Exception Conversion into PP/DS orders

Interactive Planning

Release of SNP Plan to DP

PP/DS Planning

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POWERTASTIC, Co. Scenario

Vendor I Tampa, FL ER_TD_VTA Battery, Motor

Mfg Plant I Raleigh, NC ER_TD_PRA

DC I Los Angeles, CA ER_TD_DLO

Vendor II San Francisco ER_TD_VSF Battery,Chuck

Vendor III Phoenix, AZ ER_TD_VPH Steel

DC II Newark, NJ ER_TD_DNE Mfg Plant II Chicago, IL ER_TD_PCH VMI Customer ER_TD_VHO Houston, TX

Vendor IV Portland, OR ER_TD_VPO Polypropylene

Direct Links Casting Supply Steel Supply Interplant Handle Transport

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Current BOM

Auto Screwdriver
Level I

Handle ER_TD_SHA
Manufactured

Consumer Motor ER_TD_SMQ

Procured

Consumer Battery ER_TD_SBA

Procured

Bits ER_TD_SBI
Manufactured

Chuck ER_TD_SCH
Procured

Level II

Polypropylene ER_TD_RPQ
Procured

Steel ER_TD_RST
Procured

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Manufacturing Layout

Manufacturing Layout Shipping

Assembly

Injection Molding

Casting

Raw Mat Warehouse

*Not that manufacturing plant in Chicago does not have a casting operation, casting requirements are sourced from Raleigh

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THANK YOU

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