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SAP Supply Chain

Management
The Best Solution for Supply
Chain Managers in the
Manufacturing Field
Tasks to perform include: Planning,
design, execution, and implementation
of the supply chain
Components if the supply chain include:
Inventory
Raw Materials
Manufacturing and Order Fulfillment
Transportation and Logistics
Inventory
Number of items left in inventory The number of items that are left
outstanding per week, per month, per year.
Dates of fabrication The dates each item has been produced and introduced
into inventory.
FIFO, LIFO The Companys inventory policy can be either First in First Out or
Last in First Out, depending on the type of inventory.
Average inventory count each year The time and average count of inventory
each year according to the physical count realized periodically.
Sales Figures How each product sells based on the type of product, line, and
how often they sell.
Chain of production How much (in $) material is in raw materials, work in
progress, and finished goods.
Inventory Obsolescence The average time it takes inventory to become
obsolete, depending on the type of product.
Cost of Goods Manufactured Total costs of producing a product, including
material costs, labor costs, and factory overhead.
Inventory Turnover The days it takes to sell each line of products in inventory.
Inventory Lines The product lines the company has based on sales and
outstanding inventory.
New Productions How often the company launch new products.
Revision dates How often each product in revised or replaced.
Stolen or damaged items How often and the percentage of items in inventory
are damaged or stolen.
Raw Materials
Pricing of materials How much materials costs and how those costs
fluctuate throughout the year.
Costs of shipping How much it costs for materials to be delivered from
the suppliers to the company.
Supplier contracts Which suppliers the company does business with,
how long the contracts are due, and the specifications to meet the legal
requirements of those contracts.
Timing The time raw materials arrive, how long they stay as raw
materials, and how long it takes for them to be converted into finished
goods.
Promotions promotions on pricing of materials and new potential
suppliers based on costs.
Order fulfillment
Retailers Which retailers the company contracts with and how often they
request new orders.
Wholesaling - Percentage of sales the company relies on wholesaling.
Transportation
Warehouse and retailer locations Location of each warehouse
and retailer by state, city, zip code.
Type of transportation Types of transportation services the
company utilizes for delivery and companies that offer these
services.
Costs Cost and fees of transportation services depending on
type of transportation and destination points.
Timing The time required for goods to reach the destination
points.
Insurance Type of insurance needed to ensure the safety of
goods being transported.
Packaging Costs and materials used for packaging as well as
the type of identification and barcodes.
Supply Chain Management

The SAP SCM application is a part of the SAP Business


Suite. It functions with a technology platform called SAP
NetWeaver, which enables a company to reduce costs in IT
while joining technologies into a single platform. This
platform helps companies to process information and data
in an organizational leveling order to monitor processes and
generate coordination in the supply chain.
Supply Chain Management
Oracle SCM is an open integrated solution that ensures
companies efficiency by predicting demand fluctuation,
organizing and planning operations on the supply chain, and
providing industry-specific solutions. Some of the solutions
that this program offers are: Advanced procurement,
logistics and transportation management, order fulfillment,
manufacturing operations management, product life-cycle
management, supply chain planning, and optimization.
Oracle SAP
Less features Multiple benefits
Reduced More services in
information on package
products More technical
Certain services support
not provided More information
Less customized provided on
products
The SAP SCM suite provides the best optimal
solution for problems with the management of the
supply chain. The different information needs and
technological advances in the area of inventory,
logistics, distribution, and manufacturing make the
job of a supply chain manager very difficult and
there are always different concerns that arise as
well as possibilities to enhance operations and
make the supply chain more efficient. The SAP
software provided is the best solution to all these
problems and it entails more tools and technology
to make all these possibilities come true.

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