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Responding to short term changes in demand…

It can be a real challenge for companies, to respond to customers that often make “last minute changes” to their orders. Companies operating in for example High Tech- or Consumer industries, often have difficulty servicing those customers that tend to: “change order quantities”, “change order dates”, “cancel orders” or “place rush orders”, on short notice and at a regular basis. To stay competitive, the same companies are on the other hand also forced to keep their inventory levels as low as possible.

SAP now offers a fully integrated network planning solution for effectively responding to such short term changes in demand; through its partner solution SCRM. SCRM stands for: “Supply Chain Response Management” and the partner in question is Icon. SCRM is specifically strong in:

  • Matching Demand and Supply, in the short term,
  • Allowing companies to define their own “Demand – Supply matching” priority rules.
  • Allowing planners to make “what if” and scenario comparisons, on the fly.
  • Comprehensive root cause analysis, for identifying (and resolving) material- and or capacity bottlenecks, within the supply chain network.
  • Quick, intuitive and friendly user experience.

Integration with SAP ECC, SAP SCM Demand Planning and SAP SCM SNC “Supply Network Collaboration” is ensured, using a number of (near) real time Idoc & text file interfaces and a “full load” report, for the initial load of master- and transaction data.

As such, the SCRM solution is complementary to the SAP SNP “Supply Network Planning” solution, which is aiming more at “Matching Demand and Supply” for the mid- to long term horizon.

Is your organization already equipped for responding to short term changes in demand ?

For more information on SCRM, please go to the following link:

Michel van Zwol

Principal Consultant SCM
SAP Nederland B.V.

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