Demand-Driven Planning – Step 5 - Visible and Collective Execution

The MRP exception monitor provides a detailed view on your whole supply chain, all important materials, important orders, missing parts, MRP exception messages, actual inventory, and important KPIs. In one single transaction, you have all the relevant and important information to act proactively as an MRP planner or buyer. The advanced MD04 also provides you…

by Venkata Ramana Nethi CSCP, CPIM, Business Process Lead – Operations, Schlumberger Overview: An organization’s strategic inventory policy and stocking strategies drive aggregate level inventory management (i.e., ABC/XYZ/LMN, etc. classification) which in turn drives item level inventory management. One of the most effective ways to perform item level inventory management on high volume and low…...…

Demand-driven Material Requirements Planning (DDMRP) is a modern approach to supply chain management that focuses on meeting customer demand efficiently while minimizing inventory costs. Unlike traditional Material Requirements Planning (MRP) systems, which rely on forecasted demand and fixed lead times, DDMRP uses actual customer demand signals to drive replenishment decisions in real time. By continuously…

In a typical supply chain, organizations have field locations or distribution centers that stock inventory to cater to customer demands (sales orders) and the stocks are replenished by the manufacturing locations via stock transport orders. Without an SAP planning strategy, manufacturing locations would have trouble forecasting for sales orders and stock transport orders. Organizations can…

By Amir Ashfaq Hussain, Infosys Technologies, Limited In business scenarios in which virtual plants are created within SAP ERP systems for administrative purposes, managing available-to-promise (ATP) checks and stock transfers presents challenges. SAP provides two options that address plant-to-plant transfer issues in virtual plants. Based on North American or European business scenarios, these lessons learned…...…

Demand-driven replenishment, demand-driven planning, or demand-driven MRP help in efficiently planning and managing supply chains based on customer demand, as opposed to traditional MRP procedures. DDP decouples material flows, makes them less vulnerable to supply chain disruptions, and ensures the availability of relevant products through dynamically managed buffers. In this article, know how decoupling material…

See how to resolve problems related to ownership of materials that affect supply chain processes such as inventory tracking and invoicing. Key Concept Multi-source consignment refers to raw materials purchased from different vendors, but stored or mixed together in a common container, such as beverages or food items. Although it is not a best practice,…...…

Organizations often experience challenges in a make-to-order (MTO) environment when managing “planned customer changes” mapping to standard product structure. This article will teach you how to separate “planned” vs. “un-planned” changes integrating planning, shop floor execution, inventory management and finance/controlling with accurate value on the books. It will explain inventory valuation with a step by…

Discover how the Raw Material Procurement Cockpit can facilitate working with a large number of purchase requisitions and suppliers simultaneously. Learn the prerequisites and step-by-step configuration for the Raw Material Procurement Cockpit. Key Concept The Raw Material Procurement Cockpit is available as a Web Dynpro application that small to medium-sized enterprises (SME) can adopt as…...…