Professional Documents
Culture Documents
Contents
SCM Overview
APO Overview
APO Overview
production capacity.
Demand Supply
Functional Planning
Distribution Production Material
Demand
Requirements Planning & Requirements
Planning
Planning Scheduling Planning
Customer
Execution
Warehousing Transportation Manufacturing Procurement
Service
SCM Impact on Business Goals
Increased customer service
Revenue rates
Reduced lost sales / stock-outs
Increased market share
Improved inbound logistics
efficiencies
Gross Profit Margin Improved manufacturing
efficiencies
Lower cost of goods sold
Reduced supply chain costs:
Transportation costs
Operating Expenses Material costs
Warehouse costs
Production costs
Labor costs Reduced RM, WIP and FG
Handling/expediting costs inventory investment
Reduced supply chain and cash-
Working Capital to-cash cycle times
Reduced obsolete inventory
Improved production plan Postponement strategies
adherence
Fixed Asset Utilization Increased Return on Assets
Employed
Optimized equipment utilization,
less downtime Economic Value Add (EVA)
Return on Assets exceeds Cost
of Capital
Shareholder Value Enterprise Market Value exceeds
Book Value
Lower overall cost structure Strong, predictable Cash Flows
Adaptive, responsive supply
Competitive Advantage chain
Strong collaborative
partnerships
Supply Chain Planning Benefits
Supply Chain Impacts Typical Benefits
PLAN
BUY
Supply Chain Planning Space
A range of solutions exist to assist companies effectively plan, manage, and execute their
supply chains in collaboration with other trading partners
Core SCP Process Aligned SCP Process
Agents
B-Web
Marketplace
XML
Network
CNO
EDI
Chain
CIF
APS
Enterprise
ERP
Technologies
Optimization Integration Collaboration Synchronization
SCM Objective
Contents
SCM Overview
APO Overview
SAP SCOPE
Initiative SAP APO 2.0
Collaborative
MRP II for Planning Planning mySAP SCM SAP SCM 4.0
SAP R/3 MM/PP ASCN Vision announced SAP APO 4.0
Transportation Mgmt Collaborative Scenarios SAP is Market Leader in Q2 SAP ICH 4.0
Warehouse Mgmt SAP APO available Strategic Partnership with SAP EM 4.0
Strategic partnership with in mySAP.com Bios Group SAP NetWeaver
ILOG Integration
APO
APO
SCM 5.0
4.1
EM Lieferant
SCM 5.0
4.0
SCM 5.0 Coordination
SCM 5.0
4.0
EM
Event Management (EM)
Performance Management
Coordination - EM
SCM 5.0 Collaboration
SCM 5.0
4.0
(SMI)
Collaboration - ICH
SAP-APO Overview
Global Demand Supply Production Detailed
Available- Planning Network Planning Scheduling
to- Promise Planning
BW
SC Cockpit
Transportation
Planning
Infocubes Solvers
liveCache
APO
Connectivity Layer
Private
ERP CRM SCM Exchange
Portal
SAP-APO Planning and
Capabilities
Supplier Material Production Inventory Demand
Planning Planning Planning Planning Customer
Monthly Supply Network Planning (SNP) Will my inventory cover demand next month?
Daily
Detailed Scheduling (DS) Which is the optimal sequence for my
production lines?
Concurrent Planning
Key Components
Tightly integrated with R/3 - Logistic Execution System (LES) for execution,
Exception Management
Linear Programming /
Mixed Integer Linear
Programming
Distribution Production
Flow Algorithms Planning Planning &
Deployment Scheduling
Genetic Algorithms,
Constraint-based Programming
Branch & Bound Algorithm
Demand
Exponential Smoothing Planning
Heuristic Methods
Holt Winters
Multiple Linear Regression
SAP R/3 and APO Integration
Master Data Integration
Execution (SAP R/3) Planning (APO)
Plant
Location
Vendor
Bill of Material
APO Overview
Calculation Speed
Memory Resident Architecture.~ 300 times faster than a typical MRPII/DRP system
Creates Capability for continuous process where replanning can be executed every time a change occurs
Sales &
Operations S&OP
Planning
: Fully coverage : No coverage DP : Demand Planning PP/DS : Production Planning and Detailed Scheduling
: Partly coverage : Not applicable SNP : Supply Network Planning GATP : Global Available-to-Promise
SAP R/3 Vs SAP-APO
SAP R/3 SAP APO
Initiatives Capabilities
4.6C DP SNP PP/DS GATP
Capacity
Planning
Rough cut capacity planning
Transportation
& Fleet
Management Integrated transportation planning
/ route optimization
: Fully coverage : No coverage DP : Demand Planning PP/DS : Production Planning and Detailed Scheduling
: Partly coverage : Not applicable SNP : Supply Network Planning TP/VS : Transportation Planning and Vehicle Scheduling
Thank You