Discover SAP
Discover SAP
®®SCM
SAP SCM Basics
SAP SCM Basics
1
1
...
...
31
31
SAP SCM Applications
SAP SCM Applications
2
2
...
...
45
45
SAP Demand Planning (DP)
SAP Demand Planning (DP)
3
3
...
...
59
59
Supply Network Planning (SNP)
Supply Network Planning (SNP)
4
4
...
...
79
79
Production Planning and Detailed Scheduling
Production Planning and Detailed Scheduling
5
5
(PP/DS)
(PP/DS)
...
...
99
99
Global Available to Promise (GATP)
Global Available to Promise (GATP)
6
6
...
...
121
121
SAP Transportation Management (TM)
SAP Transportation Management (TM)
7
7
...
...
139
139
SAP Event Management (EM)
SAP Event Management (EM)
8
8
...
...
161
161
Core Interface (CIF)
Core Interface (CIF)
9
9
...
...
183
183
SAP Service Parts Planning (SPP)
SAP Service Parts Planning (SPP)
10
10
...
...
201
201
SAP Extended Warehouse Management (EWM)
SAP Extended Warehouse Management (EWM)
11
11
...
...
217
217
SAP Supplier Network Collaboration (SNC)
SAP Supplier Network Collaboration (SNC)
12
12
...
...
239
239
SAP Forecasting and Replenishment (F&R)
SAP Forecasting and Replenishment (F&R)
13
13
...
...
261
261
SAP SCM’s Direction as of Release 7.0
SAP SCM’s Direction as of Release 7.0
14
14
...
...
277
277
Getting More from SAP SCM
Getting More from SAP SCM
15
15
...
...
299
299
SAP SCM and ROI
SAP SCM and ROI
16
16
...
...
327
327
Conclusion
Conclusion
17
17
...
...
345
345
A
A
Glossary
Glossary
...
...
365
365
B
B
Bibliography
Bibliography
...
...
373
373
Acknowledgments Acknowledgments ... ... 2121 Preface Preface ... ... 2323
SAP SCM Basics
SAP SCM Basics
1
1
...
...
31
31
What is SAP SCM? What is SAP SCM? ... ... 3131 SAPSAP SCM OriSCM Origins ...gins ... ... 3232 SAP
SAP’s Approa’s Approach to Supply Chain Management ...ch to Supply Chain Management ... ... 3333 Optimization
Optimization ... ... 3434 Linear Versus Discrete Optimization ...
Linear Versus Discrete Optimization ... ... 3434 Reduced Focus
Reduced Focus on Optimization ...on Optimization ... ... 3535 Which Co
Which Companies mpanies Are Are Right fRight for SAP or SAP SCM? SCM? ... 37... 37 Cross Application
Cross Application Components ...Components ... ... 3838 Product Location Master
Product Location Master ... ... 3838 Planning Areas
Planning Areas and Planning Object and Planning Object Structures Structures ... 40... 40 Planning
Planning Object Object Structure Structure ... 40... 40 Planning
Planning VersionVersions s ... ... 4141 Planning Versions
Planning Versions and Mass and Mass Maintenance Maintenance ... . 4141 Planning
Planning Book Book ... . 4141 Conclusion Conclusion ... ... 4343
SAP SCM Applications
SAP SCM Applications
2
2
...
...
45
45
SAP SCM Applications SAP SCM Applications ... . 4848 SAPSAP SCM Conguration SCM Conguration Folders Folders ... ... 4949 SAP SCM as a Visionary Application
SAP SCM as a Visionary Application ... ... 5050 SAP SCM Application Interactions
SAP SCM Application Interactions ... ... 5151 Common
Common Application Application Interactions Interactions ... . 5252 SAP ERP to SAP
SAP ERP to SAP SCM SCM ... ... 5454 Implementation Key Drivers
Conclusion ... 57
SAP Demand Planning (DP)
3
... 59
Demand Planning as SAP SCM’s Most Popular Application .... 60
Two Halves of Demand Planning ... 61
Basic Functionality and Concepts of SAP DP ... 62
Interactive Demand Planning ... 64
Data Warehouse Workbench ... 64
InfoObjects... 65
InfoCubes ... 69
Forecasting ... 71
Forecasting Methods ... 72
Characteristic Value Combinations ... 73
Realignment ... 73
Promotion Forecasting ... 74
Releasing the Plan ... 75
Plan Release and liveCache ... 75
Plan Destination ... 76
SAP DP Release History ... 76
Case Study ... 77 Company ... 77 Challenge ... 77 Solution ... 77 Value Achieved ... 77 Conclusion ... 78
Supply Network Planning (SNP)
4
... 79
Basic Functionality and Concepts of SNP ... 81
Methods of Running SNP ... 81
Capable to Match ... 84
Capable to Match Conguration ... 85
SNP Resources ... 88
Common SNP Objects ... 89
Capacity Leveling ... 89
Capacity Leveling Proles ... 90
Planning Book ... 90
liveCache and Data Storage ... 92
Safety Stock in SNP ... 92
SNP Subcontracting ... 93
SNP and Supplier Network Collaboration ... 93
SNP Product Location Tabs ... 93
SNP Deployment ... 94 Deployment Heuristic ... 95 Deployment Optimizer ... 95 SNP Release History ... 96 Case Study ... 96 Company ... 96 Challenge ... 96 Solution ... 97 Value Achieved ... 97 Conclusion ... 97
Production Planning and Detailed Scheduling
5
(PP/DS) ... 99
Basic Functionality and Concepts of PP/DS ... 100
Methods of Running PP/DS ... 101
Capacity Leveling Versus Capacity Constraining... 103
Settings for PP/DS in the Product Location Master ... 103
Manufacturing Strategies ... 104
Pegging ... 105
Production Process Models and Production
Data Structures ... 110
Production Process Models (PPMs) ... 111
Production Data Structures (PDSs) ... 112
Constraining PDS and PPM ... 113
Resources ... 114
Process Industry Planning ... 115
PP/DS Release History ... 116 Case Study ... 117 Company ... 117 Challenge ... 117 Solution ... 117 Value Achieved ... 118 Conclusion ... 118
Global Available to Promise (GATP)
6
... 121
GATP and CTM ... 122
Availability Checking ... 124
Available to Promise ... 125
Basic Functionality and Concepts of GATP ... 126
Different Levels of ATP Checks ... 127
Multilevel ATP Check (M-ATP)... 127
Availability Checking for Kits (or BOM) ... 128
Rules-Based Availability Checking ... 128
What Attaining ATP Prociency Can Mean ... 129
Capable to Promise ... 129
ATP Tree Structure ... 132
Third-Party Order Processing ... 132
Third-Party Order Processing at Amazon.com ... 133
Scope of Checking ... 134
The GATP Time Horizon ... 134
Integration ... 136
GATP Release History ... 136
Case Study ... 137 Company ... 137 Challenge ... 137 Solution ... 137 Value Achieved ... 137 Conclusion ... 138
SAP Transportation Management (TM)
7
... 139
Basic Functionality and Concepts of SAP TM ... 141
High-Level Processes ... 141
Specic Processes ... 141
Shipment Creation ... 142
Carrier Tendering and Selection ... 143
Carrier Selection ... 143
Contract Management ... 143
Vehicle Scheduling ... 144
Carrier Cost Estimation ... 145
Transportation Load Builder ... 146
Important SAP TM Structures ... 146
Transportation Lanes... 147 Location Geo-coding ... 148 Transportation Modes ... 151 Transportation Zones ... 152 Transportation Groups ... 152 SAP TM Resources ... 153 Vehicle Resources ... 154
Transportation Versus Vehicle Resources ... 155
Freight Units ... 156
Integration to SAP Event Management ... 156
Case Study ... 158 Company ... 158 Challenge ... 158 Solution ... 158 Value Achieved ... 158 Conclusion ... 159
SAP Event Management (EM)
8
... 161
Basic Functionality and Concepts of SAP EM ... 162
The Event ... 163
How Event Management Is New for SAP SCM ... 164
SAP EM Processes Visibility ... 166
Procurement ... 167
Manufacturing ... 167
Transportation ... 167
Asset Management ... 168
SAP EM Specic Areas ... 168
Major Components of SAP EM ... 169
Event Handlers ... 169
Event Handler Questions to Ask ... 171
Event Handler Types ... 173
Reacting to Events ... 173
Event Notications ... 174
Event Messages ... 175
Service Matching ... 176
Action Initiation ... 176
Analytics: SAP NetWeaver BW and Trend Analysis ... 176
Web Interface and Access ... 177
Integration ... 178
Web Communication Layer ... 178
SAP EM Release History ... 179
Company ... 179
Challenge ... 180
Solution ... 180
Value Achieved ... 180
Conclusion ... 180
Core Interface (CIF)
9
... 183
The Technology Behind CIF ... 184
Basic Functionality and Concepts of CIF ... 185
Master Data ... 186
Master Data Volume and Sequence ... 187
Master Data Sequence ... 188
Transactional Data ... 189
Integration Models ... 190
CIF Variants ... 192
Models in SAP SCM ... 193
Models and Versions ... 193
CIF Tools ... 194
CIF Versus BAPIs and Custom Integration Code ... 195
Queues ... 195
Error Management ... 196
CIF Error Management Components ... 196
Errors in Error ... 197
Complete Integration ... 198
Real-Time CIF? ... 199
Conclusion ... 200
SAP Service Parts Planning (SPP)
10
... 201
Basic Functionality and Concept of SAP SPP ... 202
Unique Features of Service Parts Planning ... 202
The Bill of Distribution (BOD) ... 207
Service Level Planning ... 208
Surplus and Obsolescence Planning ... 208
Differential Planning ... 209
Kit to Stock ... 209
The Logic Creation of the BOD ... 209
BOD in the Interface... 211
Planning for External Locations ... 211
VCL and the IBA ... 211
SAP SPP Release History ... 212
SAP SPP First Releases in SAP SCM 5.0 ... 212
SAP SPP as of 5.1 SAP SCM 2007 ... 213
SAP SPP as of SAP SCM 7.0 ... 214
Conclusion ... 215
SAP Extended Warehouse Management (EWM)
11
... 217
Differences Between SAP EWM and Warehouse Management in SAP ERP ... 218
Warehouse Organization ... 219 Supported Processes ... 221 Slotting... 222 Rearrangement ... 223 VAS ... 223 Kitting ... 224 Waves ... 225 Handling Units ... 226
Quality Inspection Engine (QIE) ... 226
Storage Control ... 227
SAP EWM and RFID ... 227
RFID and ASN ... 228
RFID and Serialization ... 228
Yard Management ... 230
Cross Docking ... 233
Labor Management ... 233
Process Types ... 234
Integration to SAP Event Management (EM) ... 235
SAP EWM Release History ... 236
SAP EWM Server Setup ... 236
Conclusion ... 237
SAP Supplier Network Collaboration (SNC)
12
... 239
SAP Supplier Network Collaboration? ... 239
Setting the Stage for Effective Collaboration ... 241
Basic Functionality and Concepts of SAP SNC ... 243
SAP SNC Collaboration Types... 243
Different Collaboration Methods and Objects ... 245
Demand Collaboration ... 246
Replenishment Collaboration ... 246
Release Collaboration ... 247
Purchase Order Collaboration ... 247
Work Order Collaboration ... 247
Attachments ... 248
Supply Network Inventory ... 249
Delivery Collaboration ... 249
Invoice Collaboration ... 249
Supplier Managed Inventory (SMI) ... 250
Conrmations ... 251
Third-Party Logistics Providers ... 253
SAP NetWeaver PI Integration Scenarios ... 254
Visibility Prole ... 255
SAP SNC Web Browser ... 255
SAP SNC Release History ... 256
Company ... 257
Challenge ... 257
Solution ... 258
Value Achieved ... 258
Conclusion ... 258
SAP Forecasting and Replenishment (F&R)
13
... 261
Basic Functionality and Concepts of SAP F&R ... 263
SAP F&R Processor ... 264
Collaborative Planning, Forecasting, and Replenishment (CPFR) ... 264
Forecasting ... 265
Order Proposals ... 269
Substitution ... 271
Service-Level Planning ... 272
SAP F&R Reporting ... 273
Order Optimization ... 274
SAP F&R Release History ... 275
Conclusion ... 276
SAP SCM’s Direction as of Release 7.0
14
... 277
High-Level Direction ... 278
New Approaches and Tools ... 278
A Major New User Interface ...278
Planning Service Manager ... 283
Planning Service Manager Proles ... 284
Service-Level Planning ... 285
Concepts of Service-Level Planning and Finished Goods ... 286
Service-Level Planning in SAP ERP ... 287
Service-Level Planning in SAP SCM ... 288
Service-Level Planning as an Evolved Approach ... 289
Cross-Enterprise Capabilities ... 290
Cross-Enterprise Monitoring ... 290
Collaboration ... 292
Addition of the Warehouse and Retail Store ... 296
Conclusion ... 298
Getting More from SAP SCM
15
... 299
Where to Look for Improvement ... 300
Recovering Failed SAP SCM Implementations ... 300
The Recovery Analysis Team ... 301
Accountability of Partners ... 302
Improving or Enhancing Successful SAP SCM Implementations ... 305
Areas of Functionality Worthy of Analysis ... 306
Subcontracting in SAP SCM ... 306
Prioritizing Demand for the SNP Optimizer ... 309
Repair Functionality in Service Parts Planning (SPP) ... 309
Backward Consumption Enhancement for GATP ... 311
Improving Safety Stock Management ... 313
Safety Stock Functionality Offered by Supply Network Planning (SNP) ... 314
Production Planning/Detailed Scheduling (PP/DS) Implementation Tips ... 316
Real Constraints for Real Planning... 318
Don’t Rely Too Heavily on the Planning Book for SAP SCM Success ... 319
Provide Ample Non-consulting SMEs or Super Users .... 320
Improving Usage Efciency with Model
Maintenance Methods ... 322
Conclusion ... 324
SAP SCM and ROI
16
... 327
Return on Investment (ROI) ... 328
Benets ... 328 Improvements in Sales ... 329 Costs ... 331 Inventory Management ... 333 Labor Costs... 333 Transportation Costs ... 334
Key Financial Ratios ... 335
ROI Estimation Recommendations ... 336
ROI Estimation: Managing the Process ... 337
Getting the Right Input ... 337
Selecting the Right People ... 338
Allowing Enough Time ... 339
Don’t Overemphasize Finance ... 340
Assign a Data Expert to the Team ... 340
Consider a Range or Sensitivity Analysis ... 341
Make the Assumptions Transparent ... 341
The Calculations ... 342
How to Set Up and Run the Value Presentation Meeting ... 342
ROI Presentations in Different Countries ... 343
Conclusion ... 343
Conclusion
17
... 345
Real-Life Supply Chain Modeling ... 346
Missed Opportunities ... 349
Looking at SAP Transportation Management More Broadly ...349
SAP TM Functionality Covers Both Shipper Owned and Outsourced Transportation... 349
SPP and the Industry Need for Service Parts Planning ... 350
SAP SCM and Larger Supply Chain Trends ... 352
Energy Issues ... 352
Increased Rapidity of Inventory Turnover ... 354
Increased Supply Chain Monitoring ... 354
Collaborative Planning Trends ... 355
Collaborative Aspects of SAP SCM Applications Besides SAP SNC ... 357 Manufacturing Signals ... 358 Conclusion ... 360
Appendices ... 363
A Glossary ... 365 B Bibliography ... 373 Index ... 377SAP SCM Basics
In this chapter, we’ll describe SAP SCM and how it’s used in today’s economy, the SAP approaches to supply chain management, and how companies can use and benet from SAP SCM. A large amount of functionality has been introduced since the last time many people looked into SAP SCM, so even if you’ve seen it before, you’ll nd a lot of new information. Each chapter has a listing of some of the most relevant new functionality as well as the enhancements that have been made to existing functionality.
What Is SAP SCM?
SAP SCM is an umbrella term for a set of applications that provide advanced planning capabilities. This set of applications is fed by stan-dard SAP integration technologies, which include the Core Interface (CIF) and BAdIs, among others, that connect the system to SAP ERP. SAP SCM is used to improve and optimize the supply chain by en-abling automated decision making, providing improved analytical
SAP SCM includes applications that provide advanced planning
tools to users, and sharing information with internal system custom-ers and external business partncustom-ers.
SAP SCM Origins
SAP SCM was introduced as SAP Advanced Planning & Optimization (SAP APO) at the height of the advanced planning trend back in 1998. This was a period where i2 Technologies was the number one ad-vanced planning vendor, and Manugistics was close on its heels. It’s hard to believe because SAP SCM is so dominant in the advanced planning space today, but at that time SAP wasn’t seen as a factor and wasn’t even predicted to become one.
It’s important to draw the distinction between supply chain planning and advanced planning. Supply chain planning is covered by the applications and functions of SAP ERP Sales and Distribution (SD), Materials Man-agement (MM), and Production Planning (PP). These applications pro-vide supply chain execution functionality along with some basic planning functionality (safety stock and MRP, basic forecasting, availability check-ing, and production planning among a few others), but none of these applications cover advanced planning. Advanced planning is future based and deals in different scenarios that are presented to planners, who then pick the best alternative. In advanced planning, the plan may be recre-ated several times before it’s rmed and sent to the execution system. True advanced planning systems can’t execute recommendations; they can only make recommendations. So, while SAP had supply chain appli-cations for some time before SAP APO, SAP APO was SAP ’s rst venture into advanced planning.
But SAP needed to create a separate set of applications, rather than in-corporate advanced planning within SAP ERP because planning systems and transaction processing systems work differently. At one point, SAP felt that advanced planning was overly esoteric and would only be de-sired by a small fraction of its customer base. Somewhere along the line though, SAP changed its view and developed its own advanced planning suite. This was probably largely market driven, as we’ll explain later in this chapter.
Note: Supply Chain Planning Versus Advanced Planning
Although dominant in advanced planning today, in 1998, SAP wasn’t yet a strong player in the supply chain management area
SAP’s Approach to Supply Chain Management
SAP has a relatively, standard solution architecture for supply chain management that has grown through time to reect the trends of ad-vanced planning. While SAP SCM began its life as SAP APO and was originally intended to perform advanced planning only, it has since evolved to essentially be a repository for all advanced supply chain functionality not covered in SAP ERP. As an example, while the SAP warehouse management functionality in SAP ERP has essentially been stabilized, the more advanced functionality has and will continue to migrate to the SAP SCM application known as SAP Extended Ware-house Management (SAP EWM). Both applications cover warehous-ing, but their capabilities are different (Figure 1.1).
ERP
APO
Supply Network Collaboration
SCM Infrastructure
Extended Warehouse Management
Transportation Management Duet Demand Planning Supply Network Planning Demand Planning Global ATP Event Manager SCM Basis PP/DS All TP/VS
SAP SCM Solution Map
Figure 1.1
SAP SCM has developed along with the trends in advanced planning
Optimization
In its early years, SAP APO was sold on its ability to perform optimi-zation. This is primarily because it was an industry-wide practice to market advanced planning software in this way. In fact, SAP APO, or SAP Advanced Planning & Optimization, had the term directly in its name.
Optimization
has two general meanings. One is more of a business na-ture, which basically means to produce the best outcomes. The other has to do with the area of operations research, from where the supply chain optimization originates. For this book, we’ll dene optimiza-tion as the use of software tools and processes to ensure the optimal operation of a supply chain, including the optimal location of inven-tory within the supply chain and the minimizing of operating costs (including manufacturing costs, transportation costs, and distribution costs).Linear Versus Discrete Optimization
Optimization works best in situations that are perfectly “linear,” so that inputs can be increased or decreased in a continuous fashion. An example of a linear input is an order quantity. In a perfectly linear op-timization, any order quantity from zero to innity can be placed and fullled. But in reality, supply chains are not perfectly linear prob-lems. For example, the lot size is a discrete value that limits the ex-ibility of the order quantity. One item may be ordered in units of 50, but if 135 units are desired, and the current inventory is less than 35, then 150 must be ordered to meet this demand. SAP SCM has a num-ber of techniques, such as lot size, that alter the problem being solved from perfectly linear to discrete, or what is known as a
step function
. This is very important for making the resulting recommendation re-alistic (Figure 1.2).The goal of optimization is to ensure the “optimal” operation of your supply chain
The step function is one of the most commonly used input functions
Linear vs. Discrete Optimization
Time Q u a n t i t y Optimal Purchase Quantity Actual Purchase Quantity Lot Size = 50Linear Optimization in Supply Chain
Figure 1.2
Must Be Moderated by Constraints
Reduced Focus on Optimization
Although optimization drove development in SAP SCM at one time, it no longer does. The evidence for this is that optimization is an option in three of the older applications (Supply Network Planning [SNP], Production Planning and Detailed Scheduling [PP/DS], and SAP Trans-portation Management [SAP TM], formerly known as TransTrans-portation Planning and Vehicle Scheduling [TP/VS]), but isn’t an option in any of the newer applications (SAP Extended Warehouse Management [SAP EWM], SAP Supply Network Collaboration [SAP SNC], SAP Event Management, SAP Service Parts Planning [SAP SPP], and SAP Forecasting and Replenishment). In addition, the core optimization functionality in SAP SCM has been stabilized for some time. This shift is partly due to the fact that optimization didn’t meet its originally envisioned potential. So, the newer applications in SAP SCM have tended to downplay optimization in favor of other functionality. If optimization didn’t “change the world” of supply chain, the ques-tion naturally becomes “Why not?” There are a number of reasons, but one of the most prominent was the implementation and mainte-nance difculty combined with the lack of company knowledge.
There is a story about an advanced planning vendor that was running the optimizer engine in the background, but when the engine actually went down for a few days, no one even noticed. This was because the plan-ning was primarily being performed by heuristics that had been custom coded with scripts, and the solution was not using the optimizer at all. Whether the client knew the optimizer was not being used is unknown. This is more common than reading press releases and industry periodicals in the area would make you think. While optimization sold a lot of supply chain software, it wasn’t necessarily what the customers went live with, as evidenced from this example.
Example
Implementing and maintaining optimization methods requires much effort and long-term investment. Secondly, optimization requires a great deal of discipline and knowledge on the part of the implement-ing company. Many companies want the benet of advanced plan-ning but are not culturally, nancially, or skills-wise prepared to make the sacrices required to get the outcomes they desire.
More often than not, companies want simple solutions that deliver value quickly. That isn’t how optimization works. And this is partly because the software has historically been designed to be more com-plex than is necessary (Figure 1.3).
Planning Continuum
Heuristics Optimizer Solution Quality E f f o r t a n d C o s t s R e q u i r e d CTMCosts Versus Benets in Planning Solutions for SNP
Which Companies Are Right for SAP SCM?
Some companies are better suited to undertaking an SAP SCM imple-mentation than others, and Table 1.1 shows the typical characteristics that allow a company to be successful with SAP SCM.
Company
Characteristics Description
Current SAP ERP users A few SAP SCM implementations have been performed on accounts without SAP ERP, but, in general, this is a major precondition.
Already have effective planning processes
SAP SCM is very exible and can adjust to most planning processes, but it can’t x a broken process. As with other planning software, the best successes typically come from companies that are already good at planning.
Make planning a priority If the commitment isn’t there in terms of management support and nance, it’s better not to begin an SAP SCM implementation. SAP SCM implementations are complex affairs, so companies must be ready for this complexity. Part of this is content knowledge of planning, but another component is open mindedness to new approaches. This is because there are a number of best practices inherent to the SAP SCM processes.
Focused on improvement
Transaction processing systems such as SAP ERP are a necessity, but a business can still run without a planning system. SAP SCM implementations cause companies to evaluate their priorities. Some applications request the estimation of a cost of a lost sale, so those successful with SAP SCM are effective at asking these questions and getting answers.
Current users of SAP ERP are good
candidates for SAP SCM
One way of looking at whether your company is appropriate for SAP SCM is to determine if it has maximized the planning functionality within SAP ERP. And in some cases, requirements will naturally lead to the consideration of SAP SCM. In Chapter 2, SAP SCM Applica-tions, we’ll cover the specic needs that often drive the decision to implement different applications. However, more generally, SAP SCM is most benecial to companies that are dedicated to improving their planning processes and that already have good planning processes to begin with.
This statement isn’t only true of SAP SCM but of advanced planning tools generally. While we’re not able to nd specic research to back this up, our anecdotal evidence from our experience on projects indi-cates that the better the company is at planning before it implements an advanced planning system, the more the company gets from the implementation. Being effective at planning helps the company know how to design the system and also allows the company to better le-verage what it ends up implementing.
Cross Application Components
As mentioned earlier, this book is broken into a format of one chap-ter per application. However, there are some important concepts and components that cut across the applications, so even though all of the components will be addressed in the same form in individual chap-ters, they may also be covered in other chapters.
Product Location Master
SAP SCM is based upon a supply chain network, which is a combina-tion of locacombina-tions, products, and transportacombina-tion lanes (Figure 1.4).
Supply Network
Transportation
Lane
Locations
Combination of Transportation Lanes and
Figure 1.4
Locations Is Referred to as the Supply Network
SAP SCM, as with the plant and material master in SAP ERP, stores a large amount of conguration information in the
product master
,location master
, and theproduct location master
. We refer to these masters throughout the book, so it’s important to know the differ-ences between them.The
1.
product master
contains the information and attributes that relate to the product across all locations. Data elements such as the product number, the material group, and the gross weight and volume are all attributes of the product master. The product mas-ter is set up once per product.The
2.
location master
deals with the attributes of the location. This includes the location name, address, any calendars associated with the location, and specic settings that apply to a few of the differ-ent applications, such as SNP, TM, SAP Forecasting and Replenish-ment, and SAP SPP.The
3.
product location master
is essentially the product master with added elds and added tabs to hold these elds that modify theProduct master, location master, and product location store data in SAP SCM
For instance, in SAP SCM, safety stock isn’t set at the product or lo-cation level but at the product lolo-cation level, so there’s no eld for safety stock control on the location master or on the product master, but there are safety stock control elds on the product location mas-ter. This not only holds true for safety stock but also for many other attributes that only come into play at the product location master.
Planning Areas and Planning Object Structures
Planning areas and planning object structures are important cross ap-plication items. They are high-level data groupings that control the entire supply chain model. They have a central administration that al-lows the areas and structures to be copied, maintained, and deleted.
Planning areas are the central data structures of Demand Planning (DP) and Supply Network Planning (SNP). A planning area is a container for key gures. Planning areas feed an interface object called a planning book, which is a spreadsheet view with a number of aggregation and macro capabilities. At the most basic level, key gures are the numerical values in the spreadsheet.
Note
Planning Object Structure
Just as a planning area is a container for key gures, a planning object structure (POS) is a container for characteristics. The combination of characteristics is called characteristic value combinations (CVCs). The POS stores every unique combination of CVCs, which is then used to help control disaggregation when data is manipulated at summary levels. In the previous analogy, we stated that key gures are the nu-merical values in the planning book spreadsheet. Characteristics are like the textural column and row headings, with the time characteris-tic on the horizontal axis, and the product characterischaracteris-tics on the verti-cal axis.
Planning areas are containers for key gures
Planning Versions
The planning versions set up the data that are available for use. A model with the same supply network can have slight alterations in terms of control elds on, say, the product location master, making the version create different planning results than a different version of the same model that has the original product location master set-tings. Multiple versions can be kept over time and run to see how the results change. Because only the active version planning results are communicated back to SAP ERP, multiple versions can be run in per-petuity along with a live active version, without ever impacting the active version. If the changes are deemed desirable, then the settings from the inactive version can be migrated over to the active version. However, it’s important to remember that this all takes maintenance effort. It’s one thing to talk about the benets of simulation and say that SAP SCM supports it, but it’s another thing to support simulation modeling with the resources necessary to make it happen.
Planning Versions and Mass Maintenance
Planning versions can be particularly effective when used with the MASSD or the mass maintenance transaction. This allows the person performing the conguration to make wholesale changes in the mas-ter data; however, this transaction should not be used on the active version. Instead, by using the simulation planning version and then mass maintenance to make changes, the changes can be fully tested before mass maintenance to make the tested changes on the active version.
Planning Book
DP and SNP are two SAP SCM applications that use the planning book intensively. The planning book is the window into the planning data
Planning versions are variations of the planning models
for most planners and other users. Planning books consist of the fol-lowing areas: Characteristics
›
Key gures›
Data views›
Macros›
Forecasting functionality›
Promotional functionality›
Interactive graphics›
Planning books provide views of various levels of aggregation as well as ad-hoc viewing of planning data. Planning books allow you to com-bine characteristics and key gures in a exible way for presentation to the planners. In fact, the planning book is the main user interface into SAP, and SAP SNP also uses it, but it uses other views as well. Creating the planning books is a signicant part of the implementa-tion because there are many different combinaimplementa-tions of planning books that can be created. Here are some of the important characteristics of planning books:
›
Different planners are responsible for different products and geog-raphies, so the planning book can be customized for each planner or for groups of planners.As planners become more familiar with the planning book, they
›
can be trained to create planning books for themselves.
The act of creating a planning book doesn’t change or affect the
›
underlying data that the planning book displays.
The planning book is provided with the capability to perform
com-›
plex calculations through its own macro builders. The results of the macro calculation are displayed through extra rows in the planning book.
Planners can be assigned to as many planning books as you like
SAP SCM comes with some standard macros, but they aren’t sufcient to cover all of the implementation needs. Unfortunately, creating macros in a planning book is nothing like creating calculations and formulas in Excel. So, because of the substantial learning curve, planners typically can’t create their own macros.
Tip
Conclusion
This book is designed to provide an introduction to the entire SAP SCM suite by providing the broadest possible exposure to SAP SCM with the lowest possible effort on your part. Areas of detail that are not covered in the book can be found from the many references in-cluded in the Bibliography of other SAP SCM books that go into more detail on the different topics. For the older applications such as SNP, DP, and PP/DS, this will be relatively simple. For the newer applica-tions such as SAP EM, SAP SNC, and SAP EWM, this will be a bit more challenging. Of course, SAP training offers courses in all of these top-ics.
But let’s move on to the next chapter and get a broad overview of all of the applications offered in SAP SCM.
4PL, 254
A
Active model, 193 Active version, 41 Activity Areas, 220
Advanced shipment notication, 228 Advanced shipping notication, 292 Alert Framework, 173 Alert Manager, 291 Alert Monitor, 164 Amazon.com, 133, 294 APO, 100 ASN, 228, 245, 355 Assemble to order, 127 Assemble-to-order, 99, 104 Assortments, 263 ATP, 113, 135, 224 ATP category, 123 ATP requests, 185 ATP tab, 134
ATP tree structure, 127, 132
Automotive returns processing, 168 Availability checking, 124
Availability checking for kits, 128 Available to promise, 125, 294, 312
B
Backorder processing, 132 Backward consumption, 94, 137, 311 BAdI, 309 BAPI, 169 BAPIs, 195 Batch management, 219 Best-t functionality, 71Bill of Material, (BOM), 109 Bucket resource, 88
Bulk storage type, 220
C
Calendar, 114
Calendar mixed resource, 88, 114 Capable to match, 82, 122, 347 Capable to promise, 125, 127 Capacity leveling, 82, 89 Capacity leveling prole, 90 Carrier capacity, 150
Carrier cost estimation, 142, 145 Carrier tendering and selection, 141, 143 Causal, 72, 207 Change pointer, 188 Characteristic, 65, 89 Characteristic-based forecast, 63 Characteristic-dependent planning, 76 Characteristics, 40, 41, 42, 65
Characteristic value combinations (CVCs) , 40, 73 Checking horizon, 134 Checkpoint, 231 Ciber, 226 CIF, 111, 148, 183 CIF variants, 192 Collaboration, 358 Collaborative forecasting, 74 Collaborative manufacturing, 358 Collaborative manufacturing environ-ment, 358
Collaborative Planning, Forecasting, and Replenishment (CPFR), 246, 264, 296
Collaborative Sales and Forecasting, 293
Collaborative transportation planning, 143
Collective processing run, 142 Composite, 72
Congurable product, 127 Consignment indicator, 137 Consignment stock in transit, 137 Contract management, 142, 143 Contract manufacturer, 354 Core Interface (CIF), 48
Create a shipment function, 142 CRM 5.0, 224 Cross docking, 233, 354 Cross-enterprise monitoring, 290 Cross-enterprise system, 294 CTM, 82, 122 CTM prole, 85 Customer, 243
D
DataSource, 68 Data views, 42Data Warehouse Workbench, 61, 66, 67 Date calculation, 175 Date tolerance, 175 Days of Receivables, 335 Delivery collaboration, 246 Delivery window, 144 Demand collaboration, 245, 246 Demand Inuencing Factor, 288 Demand plan, 80 Demand Planning (DP), 47, 60, 329, 357 Demand selection, 85 Deployment heuristic, 94 Deployment optimizer, 94 Design drawing, 248 Deviation of demand, 313 Disaggregation process , 76 Discrete manufacturing, 348 Doors, 231 DP, 40, 41, 42, 43, 100 DRP, 91, 213 DRP Matrix, 211, 279 Dynamic pegging, 86, 123
E
Electronic Data Interchange (EDI), 163, 294, 355 Enhanced method, 315 Equipment initiation, 205 Event, 163 Event code, 175 Event handler, 169, 170 Event manager, 251 Event notication, 169 Excel, 314
Expected event list, 163
Expected Event Overdue Event, 165 Expected event prole, 176
Expected goods receipt, 218 Extended safety stock, 289
Extended Warehouse Management, 217
F
Factory Calendar, 198 Factory collaboration, 358 Fixed bin, 220
Fixed lot size, 94 Fixed pegging, 86 Forecasting, 71
Forecasting and Replenishment, 246, 329
Forecasting with BOM, 72 Forecast quality, 273 Forecasts, 245
Formula, 116
Fourth-party logistics, 355
Fourth-party logistics providers, 355 F&R, 60, 261 Freight unit, 146 Fulllment, 168 Fulllment by Amazon, 294
G
GATP, 113, 121, 147, 224 GATP time horizon, 134 Geo-coding, 148Global Available to Promise (GATP), 48, 121, 293, 308, 311
Global service-level planning, 287 Goods issue, 94 Goods release, 94 GPS, 168, 235 GR/GI, 94 Group code, 175
H
Handling resources, 145Handling units in outbound ship-ments, 168 Heuristic, 82, 347 Heuristics, 283 Hierarchical planning, 91 High rack, 220
I
IDoc, 169Implementation Guide (IMG), 49 InfoCube, 68, 92
InfoObjects, 65
InfoProvider, 68 Installed base, 205
Integrated rule maintenance, 128 Integration model, 194
Interactive demand planning, 64 Interactive graphics, 42
Interactive Scheduling Agreements, 91 Interactive SNP and Transport Load Builder, 91
International sea transportation, 168 Inventory balancing, 203
Inventory Balancing Area, 212 Inventory turnover, 335 Invoice, 246, 292 Invoice collaboration, 246, 293 iPPE, 72, 128
J
JIT, 358K
Key gures, 40, 42, 65, 89 Kitting, 224 Kit to order, 224 Kit to stock, 224L
Labeling, 224 Labor management, 219, 233, 354 Layout-oriented storage control, 227 Leading indicator forecasting, 205 Light assembly, 224Limits on distance, duration, and stop-over, 145
Linear optimization , 34 liveCache, 75, 92, 126, 136 Location master , 39
Lost sales, 273 Lot-for-lot, 94
Lot sizing procedure, 94
M
Machine breakdown, 167 Macros, 42
Make-to-order, 99, 104 Make-to-stock, 99, 104 Malfunction and repair, 167 MASSD, 41
Mass maintenance , 41
Mass Maintenance transaction, 149 Master planning object structure, 89 Materials Management (MM), 32, 361 Maximum storage time at location,
145
MCA, 213 MRP, 82
Multi-activity, 114
Multidimensional data object, 70 Multi-echelon inventory
optimiza-tion, 203 Multilevel ATP, 127 Multi-mixed, 114 Multimixed, 88
N
Negative Binomial, 202 Number of periods, 75O
Opening hours of locations, 145 Operations research, 34
Optimization, 82, 347 Optimizer, 101, 307 Order creation, 219
Order Forecast Monitor, 293 Order proposal, 263
Outbound delivery request, 229 Outsourced manufacturing, 306
Outsource manufacturing partner, 243 Over stock, 273
P
Packing, 224 Packing instructions, 248 Parking space, 231 Part number, 292Party entitled to dispose, 220 PDS, 110, 245
Pegging, 84, 105
Performance- based logistics, 285 Performance indicator, 177
Period consumption strategy, 311 Phase, 245
Picking waves, 225
Planned independent requirements, 63
Planned order, 185
Planned production order, 100 Planning areas, 40, 89
Planning book, 41, 42, 90, 281 Planning models, 41
Planning object structure (POS), 40, 67, 68
Planning proposal, 142
Planning Service Manager, 283, 298 Planning versions, 41 Plant Maintenance (PM), 168, 310 Poisson, 202 Portal, 163 PP/DS, 43, 60, 88, 99, 127 PPM, 111, 191, 245, 307
Process-oriented storage control, 227 Process prole, 283
Process types, 234
Production data structure, 110, 307, 348
Production line, 114
Production line mixed, 114
Production line mixed resource, 88 Production line resource, 88
Production order schedule, 167 Production plan, 100
Production Planning, 119
Production Planning and Detailed Scheduling (PP/DS), 47, 99, 307, 334, 348
Production Planning (PP), 32
Production process model, 110, 111, 307, 348
Production staging area, 236
Product location master, 39, 41, 135, 186, 292, 314 Product master, 39 Product postponement, 223 Promotional functionality, 42 Promotion base, 75 Promotion forecasting, 74 PSA, 236 PSM, 204 Purchase order, 245, 292
Purchase order collaboration, 245 Purchase order processing, 293 Purchasing info record, 148
Pure transportation company, 355
Q
QIE, 226
Quality inspection engine, 226
R
Radio Frequency Identication, 227 Rail car management, 169
Reactions to event, 169 Realignment, 74
Real time deployment, 94 Rearrangement, 219, 354 Receipt, 246
Receipt and requirements list, 255 Recipe, 116
Red Prairie, 226
Refurbishment order, 214 Release collaboration, 245 Remote function call, 164 Reorder point, 94 Repair planning, 310 Replacement type, 206 Replenishment collaboration, 245, 246 Replenishment indicator, 210 Replenishment order, 244, 245
Replenishment order processing, 293 Requirement, 246
Resource, 88, 114
Resource management, 219
Responsive Replenishment Monitor, 292 Return on Assets, 336 Reverse kitting, 225 RF device, 163, 178 RFID, 168, 227, 297 Routing, 219
S
Safety stock, 287, 313Sales and Distribution (SD), 32 Sales and Operations Planning, 91 Sales order processing, 168
SAP Advanced Planning & Optimiza-tion (SAP APO), 32, 49, 60
SAP BusinessObjects Global Trade Ser-vices, 158
SAP BusinessObjects Supply Chain Management, 174
SAP Business Workow, 173 SAP DP, 60, 80
SAP DP Data Mart, 64, 92 SAP Easy Access , 49
SAP Event Management (SAP EM), 48, 97, 161, 235, 240, 334, 348, 355 SAP Extended Warehouse Manage-ment (EWM), 48, 60, 88, 262, 296, 334
SAP Forecasting and Replenishment processor, 265
SAP Forecasting and Replenishment, 48, 261, 288, 358
SAP F&R processor, 264 SAP IS Retail, 262
SAP_MRP_001, 102 SAP NetWeaver BI, 64 SAP NetWeaver BW, 163
SAP NetWeaver Identity Management, 214
SAP NetWeaver PI, 184, 254 SAP NetWeaver Portal, 174
SAP NetWeaver Process Integration, 169 SAP_PMAN_001, 102 SAP_PP_003, 131 SAP_PP_005, 102 SAP_PP_18, 102 SAP_PP_CTM, 131 SAP PRESS, 262 SAP SCM SMEs, 320
SAP Service Parts Planning (SPP), 46, 48, 350, 353
SAP SNC, 43, 165, 212 SAP SNC web browser, 251 SAP SNC Web UI, 248 SAP SPP, 60
SAP Supplier Network Collaboration (SNC), 47, 48, 165, 288, 355
SAP Transportation Management, 348, 353
Scanner, 178, 235
Schedules of vehicle types, 144 Scheduling agreement, 148
Scheduling agreement release, 292 Serial number, 228
Service ll monitor, 212
Service Inventory Optimization, 213 Service level, 273, 315
Service level agreement, 249 Service-level planning, 285 Service matching, 176
Service parts delivery and tool man-agement, 169
Service Parts Optimization, 213 Service Parts Planning, 288, 308, 333 Set rules, 176
Shipment creation, 141
Simulation planning version, 41 Single activity, 114 Single mixed, 114 Single-mixed resource, 88 SIO, 213 SIT, 358 Slotting, 219, 354 SNP, 40, 41, 42, 43, 60, 79, 88, 100, 147 SNP1, 94 SNP2, 94 SNP deployment, 94 SNP optimizer, 82
SNP Product Location tab, 93 Solution Manager, 323
Specications, 248 SPO, 213
SPP, 147, 202
Standard Deviation of Lead Time, 313 Star schema, 68, 70
Step function, 34
Stock replenishment, 229 Stock requirements list, 255 Stock transfer order, 185
Storage bin, 220 Storage control, 227 Storage section, 220 Storage type, 220 Subcontracting, 93, 306 Subcontractor agreement, 307 Subcontract order, 214 Subcontractors, 355 Subcontract reservation, 246 Supersession, 205 One-to-many supersession, 205 One-way supersession, 205 Two-way supersession, 205 Supplier, 243 Supplier collaboration, 243
Supplier delivery performance rat-ing, 288
Supplier managed iventory (SMI), 250 Supplier Network Collaboration, 93 Supplier network inventory collabora-tion, 246
Supply chain engineer, 323
Supply chain monitoring exchange, 294
Supply chain network, 38 Supply chain unit, 220, 311 Supply network , 41
Supply Network Planning (SNP), 45, 47, 79, 307
Supply selection, 85, 122
T
Target service level, 288 Task interleaving, 219 Test program, 248
The Master Data Selection, 85 Third-party logistics provider, 243, 253, 354
Third-party order processing, 132 Time horizon, 135
Time-related supply unit, 214 TPVS, 88
Transportation Booking Agent, 157 Transportation Charge Clerk, 157 Transportation Dispatcher, 157 Transportation lane, 81, 146
Transportation load builder, 142, 146 Transportation Management , 48 Transportation Manager, 157 Transportation mode, 146
Transportation Network Admin, 157 Transportation Planning and Vehicle Scheduling (TP/VS), 48 Transportation resource, 88, 146, 153 Transportation tendering, 168 Transportation unit, 226 Transportation zone, 146 Transport order, 214 TSL, 214
U
Unconstrained planning, 82 Under stock, 273 Univariate, 72Unplanned cross docking, 236 Unserviceable, 204, 206
Usage hour, 205 User interface, 169
V
Value added services, 223 Variants, 192
Vehicle capacity, 144
Vehicle incompatibility, 144 Vehicle resource, 88, 153 Vehicle scheduling, 142, 144 Vendor managed inventory (VMI), 250
