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.