The network inside a supply chain is critical to an organization’s success. Network performance directly correlates to the quality of planning that is put into it. If your organization uses outdated or ineffective supply network planning systems, there is a fast way to acquire best practices processes and IT solutions around those planning processes. Today let’s dive into SAP’s pre-packaged offering for:
SAP Supply Network Planning rapid-deployment solution
Key take away: A short profile on how to facilitate the creation of a supply plan including different planning dimensions, business values attached to it and further information on this rapid-deployment solution.
Starting from a demand plan, you can use SAP Supply Network Planning application to determine a permissible supply plan for fulfilling the estimated sales volumes. This mid-term supply plan solution covers procurement, distribution, and production planning dimensions across the entire supply chain, simplifying your plan efforts by integrating various products, suppliers, distribution centers.
While the SAP Supply Network Planning rapid-deployment solution has packaged content within its fixed-priced, fixed-scope, fixed-schedule approach, is well beyond a plug-and-play solution. You can select between (and set) your infinite or finite planning methods, also known as SNP heuristics and SNP optimizer. You can set your RDS up so that you receive alerts that both bring your attention to issues and provide you with guidance – in an exception-based planning approach – to help you solve occurring planning issues, faster. Imagine, getting SAP expert advice on screen when your planning parameters fall short.
This RDS contains pre-configuration for different components. For example, the new planner’s homepage in the SAP Advanced Planning & Optimization (SAP APO) component provides an overview of planning key areas, like work centers and materials, and grants access to all your supply plans.
Overall, the SAP Supply Network Planning rapid-deployment solution covers five phases, shown in the following graphic.
SAP Supply Network Planning rapid-deployment solution – process flow covered
Deploying this rapid-deployment solution helps you to increase the visibility in the global supply chain, including inventory levels, demands, and supplies. It effectively reduces operations cost by proposing a calculated plan and using exception-based manual planning.
Shortening order fulfillment times naturally translate to improved customer service – a real asset in today’s highly competitive markets.
Once you choose the optimization planning method in this RDS, you can quickly benefit from optimized sourcing and capacity utilization (respecting relevant restrictions). Optimization also helps you to maximize profit through prioritizing profitable products in production and distribution.
If this supply network planning solution sounds good, wait. The deployment time on a solution covering this many elements of your supply chain is worth mentioning. This implementation service contained in this rapid-deployment solution enables you to deploy a robust planning tool in as little as 14 weeks.
What value can you expect for your business?*:
Here are examples that, depending on your business, could equal a huge sum of money.
You may profit from an increase in production plan adherence by an average of 13 %, if your make- to- order manufacturing process is integrated with SAP ERP and involves a global supply and demand match, taking into account the production and transportation capabilities across the entire supply chain. When your distribution planning is being triggered by an approved demand plan, you may lower your inventory obsolescence cost by on average 10 %.
Are these figures unique to certain types of customers? No. This is the core asset of SAP SNP functionality: Creating a feasible supply plan to fulfill the demand driven estimated sales volume, considering all procurement, distribution and production activities along the supply chain.
There’s more. You can expect an average 9 % lower inventory carrying cost, where safety stock violation events trigger workflow messages directly to the responsible person: For example, you can use the planner’s homepage as a single point of access to personal work area, including alerts with 3 alert types to quickly resolve stock level violations.
** Note on Methodology: Performance metrics represent a comparison of results from companies that have high adoption of process-related best practices vs. companies that do not. Source: multiple SAP Manufacturing and Supply Chain Planning Benchmarking Survey (35+/ 250+/340+/340+/250+ companies across 20 industries)
Find further information on this solution:
- In SAP Solution Explorer: http://rapid.sap.com/se
Supply Chain Management -> Solutions -> Demand Driven Supply Chain -> Manufacturing and Supply Planning -> SAP Supply Network Planning rapid-deployment solution
- In SAP Service Marketplace: http://service.sap.com/rds-snp (requires dedicated authorization)
As you know, planning and scheduling are tightly connected. Part 5 of this series will deal with SAP Advanced Production Scheduling rapid-deployment solution, providing a detailed planning approach for production execution.
Missed the other parts of the blog series? Find them here:
- Supporting demand driven supply chain with SAP Rapid Deployment Solutions for Supply Chain (Part 1)
- Demand Signal Management – Sense and Respond in Real-Time in Your Supply Chain (Part 2)
- Leverage sophisticated demand plans with SAP Demand Planning rapid-deployment solution (Part 3)
- Advanced Production Scheduling – Getting More From Supply Chain Planning, Fast (Part 5)
- Improve Your Customer Service with SAP Global ATP Check rapid-deployment solution (Part 6)
- RDS forDemand Driven Supply Chains – Your Way to a Rapid Implementation Start (Part 7)