SAP Supply Chain Management allows organizations to perform effective planning and execution of logistics within supply network and to perform workflow management.
You can see the key steps in managing Supply network in an organization. Each step consists of defined set of activities and hence helping customers, suppliers, and retailers connect with each other to provide an effective supply-chain-management solution.
SAP SCM consists of the following components −
SC Collaboration − This is used to help in making collaborative forecasts and agreements.
SC Planning − This is used to generate the operational plans as per current and relevant data in the system.
SC coordination − This component in Supply Chain is used to coordinate the exchange of data and information between different business units.
SC Execution − This is used to ensure that you execute the supply chain plans in the best possible manner to get the desired result.
As per functionality, you can divide SCM/APO into three parts −
Forecasting − To perform demand planning and forecasting, you can link to Customer Relationship Management CRM to get data related to customer campaigns, etc.
Supply Network Planning (SNP) − To view organization as a network of locations and to check stock projections and stock keeping criteria. Calculations in SNP drive dependent requirements down to supplying locations production and receiving stores.
Production Planning and Detailed Scheduling − This is to check the dependent requirements from locations within the supply network, passed down from SNP.
This is linked with Material Requirement Planning (MRP) in Production Planning, which determines the inbound material required to complete a production order.