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Supply Chain Management: SAP Supply Chain Planning
The art of orchestrating supply chain planning can be intricate. Unforeseen changes in supply, demand, and market changes are a test in agility. The ability to synchronize planning for sustainable growth is the key to building a resilient supply chain.
Supply Chain Planning Defined
Supply chain planning (SCP) is a forward-looking process. It is coordinating assets to optimize the delivery of goods, services, and information from suppliers to consumers. Organizations can leverage solutions to help navigate the complexities of planning and orchestrating supply chain operations flawlessly. SAP Integrated Business Planning (IBP) is powered by SAP S/4HANA memory and is a cloud-based planning software for supply chain management. IBP is a process for aligning a company’s business goals across operational functional areas.
Supply Chain Management: SAP Supply Chain Planning
The art of orchestrating supply chain planning can be intricate. Unforeseen changes in supply, demand, and market changes are a test in agility. The ability to synchronize planning for sustainable growth is the key to building a resilient supply chain.
Supply Chain Planning Defined
Supply chain planning (SCP) is a forward-looking process. It is coordinating assets to optimize the delivery of goods, services, and information from suppliers to consumers. Organizations can leverage solutions to help navigate the complexities of planning and orchestrating supply chain operations flawlessly. SAP Integrated Business Planning (IBP) is powered by SAP S/4HANA memory and is a cloud-based planning software for supply chain management. IBP is a process for aligning a company’s business goals across operational functional areas.
Key integration elements are:
- Supply and demand
- Finance and Operations
- Functions and business processes
- Strategy outcomes
- Non-financial measures
- Cash flow, costs, and revenues.
A structured process that comes from an IBP approach enables companies to make better informed and fact-based decisions. It provides planning, what-if scenario capabilities, and real-time demand commitments, considering constraints. Increased visibility enables companies to incorporate insights from supply chain projections, financial projects, and strategic plans. There are unmatched benefits of IBP for SAP Supply Chain Planning, like optimization of logistics, improved cross-functional collaboration, planning agility, risk mitigation, and improved forecast accuracy.
SAP Supply Chain Planning yields several benefits:
- Decreased costs
- Increased profits
- Reduction in delays
- Improved efficiency
- Increase in output
- Better cooperation.
Vendor partners that can offer software solutions or operational intelligence include – SAP, Reveal or Gib.
Key Considerations for SAPinsiders are:
- Video Q&A with Eric Jones from GIB on Connecting the Dots Between Supply Chain Planning and Execution. Learn how to tame many supply chain complexities with end-to-end -supply chain solutions by watching this video. The discussion gives a perspective on why supply chain planning tools are an imperative in today’s highly complex supply chains.
- Demand Planning Alerts Increase the Accuracy of your Forecasts. David Ducray explains that demand planners are often faced with converting large amounts of data into an accurate forecast. Review different ways to spot trends and errors in data by using alerts to help you create a more accurate forecast. Allow planners the ability to manage by exception.
- Meeting Demand with a Constrained Supply Using Product Allocation in SAP APO Global ATP. Alok Jaiswal reviews the process flow of how product allocation can be used in SAP Advanced Planning and Optimization (SAP APO). This utilizes global available-to-promise (ATP) to meet customer requirements by managing the supply of scarce products.
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Leveraging Theory of Constraints in Supply Chain Control TowersAug 18, 2021 — Theory of Constraints is widely hailed as one of the most widely leveraged process optimization and continuous improvement method. Proposed by Prof. Goldratt, the crux of this theory is that the pace or the performance of the process is determined by the bottleneck. To improve the end-to-end process, you need to identify the bottleneck and focus on improving the bottleneck. Once you improve the bottleneck sub-process, some other sub-process may become the bottleneck. The focus then shifts on that sub-process. This how you can continuously keep on improving your end-to-end process. This article discusses how this theory can be leveraged for end-to-end supply chain control, synchronization and continuous improvement.
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Data Scientist Ants and the Power of Heuristics in Building Smart Supply ChainsJul 17, 2021 — By Kumar Singh, Research Director, Automation & Analytics, SAPinsider Delivery Drones and Ants- What is the connection ? You probably read the news last year regarding FAA approval of drone deliveries. Now that an easy action item box has been checked ,the next step will be to test the real execution. Drone deliveries, from […]
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Why AI Needs to Play a Critical Role in America’s Supply Chain Innovation CapabilitiesJul 14, 2021 — By Kumar Singh, Research Director, Automation and Analytics, SAPinsider The Tomorrow War In the movie “The Tomorrow War”, people from the future (2051) time travel to 2030 to ask for help. In 2051, our planet is being overrun by invading aliens from outer space and with their numbers dwindling rapidly, humans are bound to lose […]
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