SAP SCM - Benefits

Using Supply Chain Management in SAP, an organization can achieve the following benefits in a distributed environment −

  • Reduce accounts receivable collections with better visibility into the AR process, aging, and extension of credit and consequently, help to reduce the day’s sales outstanding.

  • Effectively manage forecasting and handling sudden changes in demand and supply process.

  • Effectively use Net Fixed assets NFA like plants and equipment.

  • To meet customer demands, you can smartly plan and manage Supply Chain Management process in an organization.

  • Proper inventory optimization, order fulfillment, and shipping of the goods.

  • Distribution of the key information to all the stakeholders spread across the network.

  • Improve communication and collaboration between different business lines to manage demand and supply process in an organization.

  • Improve production efficiency and reduction in production quality issues and hence reduce cost of goods sold.

  • To reduce transportation duties and taxes, and increase rebates and incentives. It also helps to reduce transportation errors.