SAP SCM - APO - SNC Overview - PPSX

SAP Smart: SCM Overview
Shrikar Keskar and Peter Goggin
Copyright 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Agenda
Introduction
Advanced Planner and Optimiser (APO) Overview
Supply Network Collaboration (SNC)
Supply Chain Management (SCM) 7.0 Highlights
Useful Links
Accenture Offerings
Copyright 2010 Accenture All Rights Reserved.
Introductions
Shrikar Keskar
3 years with Accenture

Clients/Projects:
Unilever Sirius
Virgin Media
Main area of expertise:

Supply Chain Planning (10 years)
SAP SCM
Oracle ASCP / Service Parts Planning
Introductions
Peter Goggin
5 years with Accenture (experienced hire)

Clients/Projects:
Ferrero 2005
Unilever Sirius
Unilever Project Services
Main area of expertise: SAP APO DP (8 years)
APO Overview
What is APO?
Advanced Planner and Optimizer (APO)
APO is part of the SAP Supply Chain Management (SCM) suite
APO is a planning software which is highly integrated with SAP R/3
shared data basis, e.g. no unnecessary double maintenance
on-line synchronisation of transactional data
periodic/on-line synchronisation of master data
Enhanced planning functionality compared to R/3 or other transactional

legacy systems
Supports supply chain management functionality
simultaneous material and capacity planning
optimisation of the supply chain
exception driven planning with alerts
APO Overview
APO
Demand
Planning
Supply
Network
Planning
TP/VS
Global
Availableto- Promise
Production
Planning
Detailed
Scheduling
BW
Infocubes
liveCache
Connectivity Layer
ERP
Core Interface (CIF)
Add-on component to R/3 system

It is used to supply APO with relevant master and transactional data
Returns APO planning results to R/3
Initial and incremental data transfer (automatic switch)
SAP-APO Planning & Capabilities
Supplier
Yearly
Monthly
Material
Planning
Production
Planning
Strategic Planning
Demand Planning (DP)
Supply Network Planning (SNP)
Weekly
Inventory
Planning
Demand
Planning
Customer
In the mid-term, should I invest on

productive plants?
What is the expected impact of
salesforce actions?
Will my inventory cover demand
next month?
Production Planning (PP)
In the following weeks, will I have

capacity in plant to fit demand?
Detailed Scheduling (DS)
Which is the optimal sequence for

my production lines?
Daily
Available To Promise (GATP)

Will I be able to ensure a date of

delivery?
8
Demand Planning
Statistical Forecasting
Selection of advanced statistical tools (Univariable, Multilinear, Composite, etc.)
Collaborative Forecasting and Consensus Planning

Ability to conduct intra and cross-company Demand Planning collaboration via
Internet
Flexible Multi Level Planning

Ability to plan at various levels of data hierarchy (product, region)
Promotion Planning
Planning, managing and evaluation of the impact of promotions on demand
Product Life Cycle

Ability to use phase-in and phase-out profiles and like modeling to manage new
products and obsolescence
Planning by Exception
Use of Alerts to report exceptions
Simulation
Ability to use what-if scenario simulation
Integration with the Planning and Execution systems

Tight integration with other planning capability (Supply Planning, Production
Planning, etc.) and the Execution system (R/3, etc.)
Supply Network Planning
Supply Chain Model

Ability to model the entire supply network and all of its constraints such as resource
capacities, storage limits, transportation capacities, material availability, safety and
target stock levels, etc.
Concurrent Planning
Produces Distribution/Production/Inventory/Procurement plan concurrently
SNP Heuristic
Performs requirements planning (infinite capacity) for the whole, or a subset of the
supply chain.
Capacity leveling capability is used to balance resource loads.
Capable-to-Match (CTM)
Creates a feasible plan, using finite production capacities.
Matches a large set of prioritized customer demands and forecasts to a set of
categorized supplies.
SNP Optimizer
It is a one step generation of an optimized finite capacity plan in which all defined
costs are minimized.
Deployment
Dynamically determine how and when to distribute inventory
Transport Load Builder
Uses the results of the deployment run, groups stock transfers and create
transport orders for multiple products
Planning by Exception
Use of Alerts to report exceptions
10
Production Planning Detailed Scheduling
PPDS is used for short term to-the-minute planning (both for in-house production and
external procurement) in the production plant. It is tightly integrated with the execution
system transfers planning results to R/3.
Concurrent Planning
Constraint Based Capacity Planning
Strong graphical capabilities allow the users to perform interactive scheduling and
optimization using a Gantt Chart (Pegging network assigns receipt elements to
requirements of BOM structure)
Scenario Running
Over multiple production facilities based on constraints in Supply Network Planner

(such as setup times, fixed orders, alternative resources)
Interactive Planning
Detailed capacity planning and material planning simultaneously

Schedule changes and synchronization at multiple levels of the bill of materials
(BOM)
Sequence optimization using genetic algorithm or constraint propagation
Dynamic or Fixed Pegging
What-if Scenarios can be used to simulate actual conditions and consider the
effects of various constraints.
11
Global Available To Promise
Provides an on-line search to verify across the network that the requested product
can be provided in the quantity and date requested
Multilevel stock, component and capacity checks in real time and in simulation mode
to ensure that supply and demand can be matched
Key Components
Basic methods Inventory availability check (SNP)
Rules-based ATP Location and/or product substitution (SNP)
Capable To Promise (CTP) Production plan check, and automatic planning in
PPDS to trigger production if necessary & feasible (PPDS)
Product Allocation Allows management of scarce products
12
Transportation Planning and Vehicle Scheduling
Transportation planning and consolidation

Ooptimization and processing of transportation orders
Mid-term and bucket oriented planning
Vehicle scheduling and route determination

Automatic determination of distance and transportation costs
Transportation mode and carrier selection
Multi-pick and multi-drop functionality
Exception management through Alerts
Supports short term and long term decisions
Tightly integrated with R/3 - Logistic Execution System (LES) for execution, and
BW for reporting
13
SAP SNC - Supply Network Collaboration
14
Collaboration Challenges
15
Supply Chain Collaboration

Supply Chain Collaboration inter-company integration on a common business platform is a key theme for
organizations
In the relationship between a company and its top customers & suppliers there can be significant inefficiency
to be targeted with effective supply integration
process cost savings
inventory savings
service level improvements
Improved
transport
Utilization
Buy
Supplier
Make
Transport
Reduced Materials
costs and due to
improved supplier
plant utilization
Aligned Promotion
Planning Process
Plant
Increased Plant
Efficiency (e.g.
changeovers,
overtime, etc.)
Move
Central
Warehouse
Improved
Warehouse
Efficiency
Transport
Reduced
Finished Goods
Inventory
DC
Stales /
Obsoletes
Reduction
Customers
Better
Service
Level
16
SAP SNC Capabilities
17
SAP SNC Supplier Collaboration
Confirmations (Date & Qty Changes by Supplier) on Purchase Orders

ASNs (Ship Notifications) On All Processes (Packaging Capability with Bar Code/Label Printing)
Invoices (Supplier Creates Invoices via the Web), Includes Regular and ERS Invoices (Self-Billing)
Alerts for Exceptions (Includes e-mail notifications)
BW Reporting Content for Alerts and Supplier Performance based on Alerts
18

Purchase Order Process
Communicate POs to Suppliers

Purchase Order Worklist Web screen UI
Suppliers can process confirmations, and rejections
Suppliers can view/download POs into their systems
Release Process
Send out scheduling agreement release (SA release)
updates to the suppliers
Suppliers can view and compare updates
Suppliers create scheduling agreement confirmations
Suppliers create ASNs for updates into our ERP at the
time of delivery
Kanban Process Process
Send out kanban replenishment signals to the supplier
Kanban processing dashboard for suppliers to create
ASNs
19

Dynamic Replenishment
Share and compare your planning data and the suppliers
planning data in one screen
mid- to long-term awareness of deviations for corrective
actions
Supplier-Managed Inventory
Supplier responsible for net replenishment planning and
execution
Gross Demand and stock balance shared with suppliers
Min/Max replenishment logic to create POs and ASNs
Delivery Control Monitor
Supplier responsible for net replenishment planning and
execution
Stock balance and preset signals (reorder points) shared
with suppliers
Min/Max replenishment logic to create POs and ASNs
20
SAP SNC Outsourced Manufacturing
21
SAP SNC Outsourced Manufacturing

Contract Manufacturing Purchasing
Share subcontracting POs with suppliers
Suppliers can view POs and request changes as required
Suppliers can report component usage, ASNs etc.
Work Order Collaboration

Collaborate on and track production at contract
manufacturer
POs sent from our ERP trigger auto creation of Work
Orders
Negotiate and agree delivery quantities and dates
Supply Network Inventory
Visibility of inventory and supply and demand information
across multiple tiers
SNI Monitor
Monitor component inventory situation across the contract
manufacturing chain
22
SAP SNC Customer Collaboration
23
SAP SNC Customer Collaboration

Min/Max VMI
Automated VMI replenishment using min/max replenishment
levels
Short term statistical forecasting
Alerts for exceptional situations
Responsive Replenishment
Advanced VMI functionality
Statistical Forecasting
Replenishment Planning
Transportation Planning
Auto transfer of orders to our ERP and customer
Demand Collaboration
Compare customer transmitted forecast with consumption
based statistical forecast
Final Consensus Forecast
Quick response to demand side changes
24
SAP SNC Responsive Replenishment
25
SAP SNC Integration
26
SAP SNC Implementation Options

Lean Implementation
SAP SNC 7.0
Full Implementation
SAP SCM 7.0 Server
SAP SCM
SAP Extended Warehouse
Management
SAP SNC
SAP Event Management
SAP SCM 7.0 Basis
SAP SCM 7.0 Basis
SAP NetWeaver 7.01
SAP NetWeaver 7.01
Advantages
Less support package implication
Smaller system and hardware

requirements
Separation of SAP SNC & planning

functionalities
Risks
Upgrade to a full SAP SCM server not

possible
Limited functionality (Customer

collaboration not available)
Advantages
Possible to use other SAP SCM

components on the instance
Mandatory for some functionalities (that

is, extended planning features)
Supported upgrade from an existing SAP

Inventory Collaboration Hub/SAP SNC
5.0/4.1 implementation
27
SCM 7.0 (the new APO)
28
APO/ SCM Timelines
29
Release and Maintenance Strategy SAP SCM
30
SCM7.0 - Improvements Overview

SCM 4.1
Support of RFID supply
chain execution processes.
Integration of Project
Manufacturing between SAP
SCM and SAP R/3.
Creation of new module
Forecast & Replenishment
used for Retail Industry.
Improvement on Master
Data management and
integration with SAP R/3.
SCM 5.0
Provide additional
functions to support the
adaptive supply chain
network
Link the service supply
chain with the product
supply chain.
SCM 5.0 delivers
functionality for:
Display planned shipments

on a map ( Integration with
other technologies required)
Service parts
planning & execution
Forecasting &
Replenishment for
retail
SCM 5.1
Developed to address
challenges such as
supply chain
responsiveness and
integration with partner
ecosystems.
Offers enhanced
functionality for supply
network collaboration
(SNC), extended
warehouse management
(EWM), and enhanced
planning.
business benefits
include:
Supply network
collaboration with
kanban and
outsourcing
Closer collaboration
with business
partners to improve
visibility
Extended
transportation
planning and
execution
Maximized
workforce planning
to increase
productivity
SCM 7.0
SCM 7.0 has defined to
be:
Core application of
SAP Business Suite
Based on SAP
Netweaver 7.0
Leverage proven
functionality
Continuous innovation
delivery via
enhancement
packages, selectively
adoptable
Continuous service
enablement
Uniform availability of
industry best practices
31
SCM 7.0 Major Improvements per module

General
SCM 7.0 has defined to be:
SAP ERP 6.0 today,
extended to core
applications of SAP
Business Suite in 2008
DP
New forecast algorithm to
incorporate aggregated
point of sales data in DP
Leverage proven
functionality
Improve forecasting in
Demand Planning
-Include Customer
Forecasts
Continuous innovation
delivery via
enhancement packages,
selectively adoptable
New short term forecasting

approach to calculate the
demand as a function of
past
Continuous service
enablement
New trend dampening

functionality
Uniform availability of
industry best practices
Automatic identification of
structural changes in the
historical data and reinitialization of basic value,
trend value and seasonal
indices
SNP
Improve the performance of

the SNP interactive planning
and planning in the
background
Enhance the usability of the
low level code (LLC)
determination for the SNP
heuristic planning
Provision of Information
regarding Quality and more
detailed information about
failures of LLC calculation.
Navigation to incorrect
Master Data is possible
directly from the Applic. Log
Significant performance
improvements in entering
SNP Interactive Planning
SNP Master Data Monitoring
is integrated to the CCMS
Monitor
PP/DS
Enable CTM to use PP/DS

master data with
characteristics.
Enhance PP/DS product
planning table to simplify cross
plant planning
To model restrictions of the
flow of product through the
plant based on the physical
abilities to connect resources.
Reduces the number of Master
Data permutations in the PPM
& PDS
Allow process oriented
companies to model and plan
for tank restrictions within their
production process.
Ability to develop a feasible
plan while considering capacity
limitations of storage resources
& mixers.
32
Useful Links
SI SAP Home:
https://publishing.accenture.com/NR/exeres/62881E64-E625-4F4A-B856-6B06F7BA54A7,fr
ameless.htm?NRMODE=Published
Community Documents:
https://sites.accenture.com/groups/SAPSupplyChainManagementSCMPlanningandServiceMan
agement/documents.aspx
SAP Service Marketplace for SCM:

https://service.sap.com/SCM
33
Questions
34
Appendix
35
Collaboration in modern Supply Chains
36
SAP SNC Quick views

Quick View can be used as the entry screen to SAP SNC Web Applications
Quick View displays application-specific information for various order documents and the task/user's
action items in the SNC system
Users can navigate from the quick view to a specific Web Application e.g. the PO Work List of ASN
Details Screen
Quick view represents a snapshot of the current business performance status
Quick Views are available for POs, Releases, ASNs, Invoices & Work Orders
37
SAP SNC Demand Forecast Collaboration
38
SAP SNC PO Process
Customer can change or cancel POs and

PO items, and suppliers can reject PO items
Approval process based on rules such as
quantity and date deviations can be done
via web UI
Shipments can combine many PO items into
one shipment, communicated to the
customers ERP in advance of receiving
goods
Includes supplier invoice creation based on
shipments, or ERS handling of invoices, and
payment status updates
39
SAP SNC Contract Manufacturing Purchasing
Customer can change or cancel

Subcontracting POs and items
Approval process based on rules such as
quantity and date deviations can be done
via web UI, includes collaboration on
components used
Customers ERP system gets periodical
updates of components consumption at the
contract manufacturers location
Includes supplier invoice creation based on
shipments, or ERS handling of invoices, and
payment status updates
40

SAP SCM - APO - SNC Overview - PPSX

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SAP Smart: SCM Overview

Shrikar Keskar and Peter Goggin

Copyright 2010 Accenture All Rights Reserved.

3 years with Accenture

Main area of expertise:

Copyright 2010 Accenture All Rights Reserved.

5 years with Accenture (experienced hire)

Main area of expertise: SAP APO DP (8 years)

Copyright 2010 Accenture All Rights Reserved.

Enhanced planning functionality compared to R/3 or other transactional

Copyright 2010 Accenture All Rights Reserved.

Core Interface (CIF)

Add-on component to R/3 system

Copyright 2010 Accenture All Rights Reserved.

SAP-APO Planning & Capabilities

Demand Planning (DP)

Supply Network Planning (SNP)

In the mid-term, should I invest on

Production Planning (PP)

In the following weeks, will I have

Detailed Scheduling (DS)

Which is the optimal sequence for

Available To Promise (GATP)

Will I be able to ensure a date of

Collaborative Forecasting and Consensus Planning

Flexible Multi Level Planning

Product Life Cycle

Integration with the Planning and Execution systems

Copyright 2010 Accenture All Rights Reserved.

Supply Network Planning

Copyright 2010 Accenture All Rights Reserved.

Supply Chain Model

Production Planning Detailed Scheduling

Constraint Based Capacity Planning

Copyright 2010 Accenture All Rights Reserved.

Over multiple production facilities based on constraints in Supply Network Planner

Detailed capacity planning and material planning simultaneously

Global Available To Promise

Copyright 2010 Accenture All Rights Reserved.

Transportation Planning and Vehicle Scheduling

Transportation planning and consolidation

Vehicle scheduling and route determination

Exception management through Alerts

Supports short term and long term decisions

Copyright 2010 Accenture All Rights Reserved.

SAP SNC - Supply Network Collaboration

Copyright 2010 Accenture All Rights Reserved.

Copyright 2010 Accenture All Rights Reserved.

Supply Chain Collaboration

Copyright 2010 Accenture All Rights Reserved.

SAP SNC Capabilities

Copyright 2010 Accenture All Rights Reserved.

SAP SNC Supplier Collaboration

Confirmations (Date & Qty Changes by Supplier) on Purchase Orders

Copyright 2010 Accenture All Rights Reserved.

SAP SNC Supplier Collaboration

Communicate POs to Suppliers

SAP SNC Supplier Collaboration

SAP SNC Outsourced Manufacturing

Copyright 2010 Accenture All Rights Reserved.

SAP SNC Outsourced Manufacturing

Work Order Collaboration

SAP SNC Customer Collaboration